Financial Markets and Economy
Good morning, and welcome to the first "10 things you need to know in markets today" of 2017! Here's what you need to know on Tuesday.
Oil Climbs to 18-Month High as Kuwait and Oman Fulfill OPEC Cuts (Bloomberg)
Oil climbed to an 18-month high in New York as output cuts by Kuwait and Oman signaled OPEC and its partners are delivering on their agreement to stabilize the market.
Iran Aims to Attract $100 Billion in Foreign Investment (Bloomberg)
Iran qualified 29 international oil companies to bid in upcoming tenders for crude and natural gas development projects as the Persian Gulf state seeks investment in energy. Bloomberg's Anthony DiPaola has more on "Bloomberg Markets: Middle East."
US President-elect Donald Trump says he won't let North Korea drop a nuclear bomb on America. His now trademark diplomacy-by-tweet followed an announcement by North Korean leader Kim Jong Un that his country was about to test its first intercontinental ballistic missile, which could be equipped with nuclear warheads and within range of the US.
Here are Goldman Sachs' tips for what US stocks to buy, and avoid, in 2017 (Business Insider Australia)
It’s the start of a new year, and after a year of ups and downs for US stocks in 2016 — in that order — investors are now wondering what will happen next.
European Stocks Extend New Year Rally to Enter Bull Market (Bloomberg)
European stocks rose for a third day and were entering a bull market, as data showed China’s factories and services both ended 2016 on relatively robust notes.
Pound Drop Boosts U.K. Manufacturing, Pushes Up Factories’ Costs (Bloomberg)
U.K. manufacturing grew at the fastest pace in 2 1/2 years in December, helped by the pound’s depreciation since the vote to leave the European Union.
Asian Stocks Rise in First Trading Day of 2017 After China Data (Bloomberg)
Asian equities outside Japan rose the most in three weeks as most regional markets started their first trading day of the year. The broader regional gauge halted two years of annual losses in 2016. Japan, New Zealand and Thailand are closed for holidays.
A major economic organisation is sounding the alarm on the global property market (Business Insider)
LONDON — The Organisation for Economic Co-operation and Development is sounding the alarm on global property prices and warning that a big correction could be on its way.
Bitcoin hits milestone of $1,000 as 2017 begins (Market Watch)
As 2017 kicked off, and with the bulk of other financial markets closed, Bitcoin took the stage, hitting a fresh milestone atop $1,000.
A single Bitcoin US:BTCUSD was trading at $1,025 Monday morning, according to pricing data from Coin Market Cap.
Paris Eyes Luring 20,000 Bankers From London Amid Brexit Rupture (Bloomberg)
Paris could lure as many as 20,000 workers from Britain’s finance industry with the exodus potentially starting within weeks as the U.K. begins its withdrawal from the European Union, according to Europlace, the French capital’s lobby group.
Businesses Ramp Up Investment Despite Rising Rates (The Wall Street Journal)
U.S. companies are preparing to invest again after years on the sidelines, and rising interest rates are unlikely to impede them.
Global Stocks Higher After Upbeat Chinese Factory Data (Associated Press)
SEOUL, South Korea — Global stocks were higher Tuesday, with U.S. markets set to ring in 2017 with gains, as upbeat Chinese factory data bolstered investor sentiment.
Economists dispute claim that Brexit could create 400,000 jobs (The Guardian)
Economists have disputed claims from a pro-Brexit campaign group that leaving the customs union and new free trade deals could create 400,000 jobs, arguing it takes no account of the risks to exports.
Crude oil rallies to 18-month high as OPEC output deal kicks in (Market Watch)
Oil prices moved sharply higher on Tuesday on hopes OPEC’s deal to cut production that set in on Sunday will help stabilize the market in 2017.
This city had the biggest increase in house prices in 2016 (Market Watch)
The total value of the U.S. housing stock grew to a $29.6 trillion in 2016, an increase of nearly 6% and $1.6 trillion over the previous year and a new record, according to an analysis by real-estate website Zillow.
Stocks won't remain calm for long (The Black Rock Blog)
Ideally, the holidays should be calm. Thankfully the market is obliging. Equity market volatility, as measured by the VIX Index, recently dipped below 12, close to multiyear lows.
Americans spent this much on rent over the last year… (Market Watch)
Rising rents and a lack of leasing opportunities are sweeping the country, forcing Americans to put more money toward their rent than a down payment for a future home.
Oil prices are rising and the worst of the downturn appears to be over. After two years of spending cuts, 2017 could mark the first time in several years that spending levels across the oil and gas industry increase.
Intrinsic Value Of The S&P 500 (January 2017) (Long/Short Investments, Seeking Alpha)
The US equities market (as represented by the S&P 500) as a whole is probably overvalued by double-digit percentage points, but, without a catalyst, is unlikely to reprice to more justified levels.
Here’s what five venture capitalists are predicting for 2017 (GeekWire)
Who better to ask than a group of venture capitalists, the money managers who are paid big bucks to see around corners and determine what technologies will impact our lives going forward. The new year certainly brings a set of challenges and opportunities, and this much is clear: No one really knows what will happen.
.jpg)
5 maps that explain China's strategy (Mauldin Economics)
The sharp decline in Chinese stock markets on Monday is a reminder of two things. The first is the continued fragility of the Chinese market. The second is that any economic dysfunction has political implications, both in Chinese domestic and foreign policy.
JPM: "Central Banks Have Created Unprecedented Distortions In Government Bond Markets" (Zero Hedge)
As part of his just released 2017 outlook, JPM's Michael Cembalest, chairman of markets and investment strategy, notes that while "political upheavals and unorthodox central bank actions persist" he prdictes "more of the same in 2017: single digit returns on diversified investment portfolios as the global economic expansion bumps along for another year."
Chinese Interbank Lending Freezes; Government Bond Trading Halted After Massive PBOC Liquidity Drain (Zero Hedge)
Earlier today, we were surprised to note that having aggressively drained liquidity from the interbank funding market, on the first trading day of 2017, the PBOC not only fixed the Yuan well lower (sy 6.9498 vs 6.9370 on the last day of 2016, even if this was well stronger than the Offshore Yuan), but the People's Bank of China withdrew even more liquidity.
Companies
The Ugly Unethical Underside of Silicon Valley (Fortune)
Vinod Khosla did not show up at TechCrunch Disrupt to be harangued by some smartass, know-nothing journalist. The venture capitalist came to talk about disruption and revolutions to an audience of 1,000 potential disrupters and revolutionaries, laptop glow illuminating their faces in a San Francisco warehouse.
Intel seeking indirect stake in mapping firm HERE: German cartel office (Reuters)
Chip maker Intel (INTC.O) has sought approval to buy a stake in HERE, a digital mapping firm controlled by Germany's carmakers Daimler DAIGN.DE, BMW (BMWG.DE) and Volkswagen (VOWG_p.DE), a filing to the German cartel office showed.
Indonesia penalizes JPMorgan for 'underweight' call: officials (Reuters)
Indonesia will drop JPMorgan Chase & Co from providing some services to the government after the bank's research arm said investors should reduce their exposure to the country, senior finance ministry officials said on Tuesday.
Technology
Samsung expands its fleet of Family Hub smart fridges (CNet)
A year ago, at CES 2016, Samsung swung for the smart fridge fences with the debut of its Family Hub Refrigerator, a $6,000 four-door fridge with Wi-Fi connectivity, a king-sized touchscreen loaded with apps, and cameras on the inside to help you keep track of your groceries.
Google and Chrysler team up for new Android-powered infotainment system (9To5Google)
You might already know about the Google and Chrysler mashup that’s bringing the Mountain View company’s self-driving tech to the Chrysler Pacifica minivan, but it looks like the two companies are doing more than just that together.
BlackBerry presses on into a new era with keyboard teaser (CNet)
BlackBerry may have stopped making phones, but the BlackBerry name is pressing on. In fact, a new era of outsourced BlackBerry devices may start with a phone named the "Press".
Linksys is the latest company to unveil a WiFi mesh system (Engadget)
Mesh networking has become trendy for folks looking to fill every nook and cranny of their homes with WiFi. So it should be no surprise that the makers of the most iconic router ever is unveiling its own system.
Lenovo's new push into VR starts with this Legion laptop (Engadget)
Lenovo is taking its future in VR very seriously — after all, it just outed a new VR headset that won't completely break the bank. Here's the thing, though: we're going to need a lot of content for these things, and that's where Lenovo's new Legion gaming notebook comes in.
Monitor Your Health On Your Smartphone With Qardiocore App And Strap (Digital Trends)
Who says you have to wear a wire to monitor your heart health? Certainly not Qardio, the San Francisco-based digital health company that announced that its wearable ECG monitor, the QardioCore, is available for pre-order on Tuesday.
India's largest mobile wallet app Paytm gets regulatory nod to operate its own Payments Bank (Mashable Asia)
Paytm announced today it has received regulatory approval from the Reserve Bank of India for launching Paytm Payments Bank, a move that "changes everything" for the company.
Politics
Nixon Tried to Spoil Johnson’s Vietnam Peace Talks in ’68, Notes Show (NY Times)
Richard M. Nixon told an aide that they should find a way to secretly “monkey wrench” peace talks in Vietnam in the waning days of the 1968 campaign for fear that progress toward ending the war would hurt his chances for the presidency, according to newly discovered notes.
House GOP votes to gut independent ethics office (Fox News)
House Republicans on Monday voted to eviscerate the Office of Congressional Ethics, the independent body created in 2008 to investigate allegations of misconduct by lawmakers after several bribery and corruption scandals sent members to prison.
Trump team seeks agency records on border barriers, surveillance (Reuters)
In a wide-ranging request for documents and analysis, President-elect Donald Trump's transition team asked the Department of Homeland Security last month to assess all assets available for border wall and barrier construction.
New date for Trump's press conference: January 11 (CNN Money)
Presidents-elect normally answer questions at a press conference a few days after the election. But Donald Trump has gone almost two months without holding one.
Republicans increasingly split over whether Putin’s Russia poses a grave threat to U.S. (The Wall Street Journal)
Tensions within the Republican Party over how to handle Russia are becoming increasingly public as the Senate prepares for confirmation hearings on President-elect Donald Trump’s nominee for secretary of state and presses ahead with a review of alleged Russian cyberattacks during the 2016 election.
Donald Trump’s Attitude Toward Hacking Raises Concerns Among Cybersecurity Experts (The Huffington Post)
President-elect Donald Trump’s stance on cybersecurity could be a dangerous go-ahead signal for hackers that may threaten America’s safety, business and even the economy, experts warn.
The Democratic Party Line That Could Torch Civil Liberties… and Maybe Help Blow Up the World (The Huffington Post)
Many top Democrats are stoking a political firestorm. We keep hearing that Russia attacked democracy by hacking into Democratic officials’ emails and undermining Hillary Clinton’s campaign.
Health and Biotech
Australia bans non-prescription codeine to fight opioid crisis (New Scientist)
Australia has become the latest country to ban over-the-counter sales of medications containing the opioid painkiller codeine. The new regulation, which will come into effect on 1 February 2018, is hoped to halt the rise in codeine-related deaths, which have more than doubled in Australia since 2000.
Life on the Home Planet
Time-Lapse Video Shows Beijing Swamped by a Tide of Smog (NY Times)
HONG KONG — A time-lapse video of smog rolling into Beijing offers a jarring new perspective of the pollution that has been afflicting the Chinese capital in recent months.
How your brain constructs reality (TED Talks)
Cognitive scientist Donald Hoffman is trying to answer a big question: Do we experience the world as it really is … or as we need it to be? In this ever so slightly mind-blowing talk, he ponders how our minds construct reality for us.
Quake swarm near the California-Mexico border gets scientists' attention (Los Angeles Times)
A swarm of more than 250 small earthquakes have struck since New Year’s Eve near the California-Mexico border, causing unease among residents and attention from scientists.
Scientists discovered 55 lakes in Eastern Antarctica that shouldn't have been there (Business Insider)
Eastern Antarctica is considered to be the coldest place on Earth. So cold, that scientists expected its ice shelves were frozen solid and more stable against climbing global temperatures than Western Antarctica or Greenland.
Turkish military says 18 Islamic State militants killed in clashes in Syria (Reuters)
Turkey's military, backing Syrian rebels in a four-month-old operation against Islamic State militants in northern Syria, said on Tuesday that 18 of the jihadists had been killed and 37 wounded in clashes and artillery fire on Monday.
How big can a tsunami really get? (Science Alert)
With devastating tsunamis hitting Japan and the Indian Ocean in recent history, we're all too aware of the impact these natural disasters can have: but just how bad can they get?
