Financial Markets and Economy
Dollar Rally Adds to Uncertainty as Fed Eyes 2017 Rate Hikes (Bloomberg)
The dollar’s appreciation may represent the U.S. economy’s biggest speed bump in 2017, and that could be good or bad, depending on whether President-elect Donald Trump follows through on measures aimed at accelerating growth.
Biggest Economies Face $7.7 Trillion Bond Tab as Bull Run Fades (Bloomberg)
Governments of the world’s leading economies have about $7.7 trillion of debt maturing in 2017, with most facing higher borrowing costs as a three-decade bull market for bonds shows signs of running out of steam.
Holes in China's Currency Wall (Bloomberg)
China's latest great wall against capital outflows is likely to be as effective at stemming overseas real estate purchases as the real thing was at keeping out invaders.
Peak Auto Sales Make 2017 a Waiting Game for Investors (The Wall Street Journal)
In cyclical industries, the best of times for manufacturers tend to be the worst of times for investors.
First China-U.K. Freight Train Departs as Xi Seeks to Lift Trade (Bloomberg)
The first train departed Yiwu in eastern Zhejiang province on Jan. 1 and will cover more than 12,000 kilometers (7,500 miles) in about 18 days before reaching London, China Railway Corp. said in a statement Monday.
China’s Debt Boom Looks Eerily Familiar (The Wall Street Journal)
The International Monetary Fund is still holding out hope China’s government can rein in the country’s dangerous credit boom. But in yet another warning to the world’s No. 2 economy, the world’s last-chance lender says time is running out.
The Trump Rally May Be Over Come Inauguration Day (Bloomberg)
Investors have greeted Donald Trump’s surprise win with the biggest stock market rally for any new U.S. president. Morgan Stanley is cautioning, however, that his coming inauguration may mark an end to these post-election good times.
Puerto Rico’s New Governor Takes Over as Debt Crisis Reaches Climax (Bloomberg)
After a series of record-setting defaults, Puerto Rico is slowly moving toward ending its debt crisis under a new governor who has pledged to work with bondholders and federal overseers to restore the island’s battered financial credibility.
Dollar Advances to 14-Year High as U.S. Data Spur Confidence (Bloomberg)
The greenback climbed, and later pared gains, after a report showed American manufacturing expanded at the fastest pace in two years. Traders will look to Federal Reserve meeting minutes Wednesday and U.S. employment figures Friday to gauge whether the rally can gain steam.
Southeast Asia's Worst-Performing Currency Is in for Another Tough Year (Bloomberg)
Southeast Asia’s worst-performing currency of 2016 is in for another tough year with President Rodrigo Duterte’s spending plans seen boosting imports just as rising U.S. interest rates spur capital outflows.
U.S. manufacturing, construction sectors shine as year ended (Reuters)
U.S. factory activity accelerated to a two-year high in December amid a surge in new orders and rapidly rising raw material prices, indicating that some of the drag on manufacturing from prolonged dollar strength and a slump in oil prices was fading.
The 2017 Bond Strategy That Goldman and BlackRock Back (Bloomberg)
Although the funds — long marketed for their potential to shine in any environment — have failed to deliver consistently over the years, bond managers are convinced they’re about to have something of a moment.
Customers developed a new habit during the recession — it's killing Applebee's and Buffalo Wild Wings (Business Insider)
Casual-dining chains like Buffalo Wild Wings, Applebee's, and Ruby Tuesday are expected to have a difficult 2017.
Which Industries Attract The Most Venture Capital? [Infographic] (Forbes)
Down through the years, U.S. venture capital financing has resulted in some major successes, including the likes of Intel, Google and Twitter. VC investment is heavily concentrated across several industrial sectors, according to a recent report from Martin Prosperity.
Musical chair economy: How to get ready for the economic recession coming in 2017 (The Conversation)
My outlook for 2017 and beyond is that the U.S. economy will likely see another recession.
Yes, the economic picture currently looks wonderful. The Dow and S&P 500 are at record levels. Unemployment is well below 5 percent of the labor force. Inflation is still tame. The U.S. dollar is strong.
17 Quality Dividend Stocks For 2017 (And After)17 Quality Dividend Stocks For 2017 (And After) (Value Walk)
One of the advantages of being a dividend investor is that I invest in businesses that meet a certain qualitative and quantitative criteria. This allows me to focus on quality compounding machines with established track records.
CoreLogic: House Prices up 7.1% Year-over-year in November (Calculated Risk)
Home prices nationwide, including distressed sales, increased year over year by 7.1 percent in November 2016 compared with November 2015 and increased month over month by 1.1 percent in November 2016 compared with October 2016, according to the CoreLogic HPI.
How Goldman Sees The S&P In 2017: First Rise, Then Fall (Zero Hedge)
About 3 months ago, Goldman's year end S&P500 target for 2016, 2017 and 2018 were 2,100; 2,200 and 2,300 respectively. Then, as readers are well aware, everything changed with the Trump election which unleashed a surge in US equities and the dollar, on expectations of reflation and fiscal stimulus.
Stagflation Signs Build As US Manufacturing Surveys Hit 2-Year Highs (Zero Hedge)
Despite the weakness in 'hard' industrial production data, US Manufacturing 'soft' survey data from ISM and Markit surged in November and December. PMI rose to 54.3 final for December – a 21-month high – with employment rising and inventory-building.
AGNC Investment's Q4 2016 Income Statement Projection – Part 1 (Including Current Recommendation) (Scott Kennedy, Seeking Alpha)
This three-part article is a very detailed analyze of AGNC Investment Corp.'s (NASDAQ:AGNC) income statement (technically speaking, the company's "consolidated statement of comprehensive income").
Major credit reporting agencies fined over $20 million for charging $16 a month for ‘free’ credit scores (Market Watch)
The Consumer Financial Protection Bureau (CFPB) on Tuesday fined two of the largest U.S. credit reporting agencies, TransUnion and Equifax and their subsidiaries, for “deceiving consumers” about how useful the credit scores are that they have sold to them.
How Customers Perceive a Price Is as Important as the Price Itself (Harvard Business Review)
Price wars have broken out in consumer industries around the world. Retailers such as ALDI and Walmart have used price to position themselves against traditional competitors in their markets, pinching margins all around.
The Most Depressing Chart In Europe (SA News Team, Seeking Alpha)
The lack of earnings growth from European companies does not appear to be a top-line issue. Both real GDP and sales have recovered to levels now exceeding prior-cycle highs. Earnings, however, are still languishing near prior-cycle lows.
Companies
Tesla misses on deliveries for 2016 (Business Insider)
Tesla reported on Tuesday that it delivered approximately 22,200 cars during the fourth quarter of 2016.
For the year, Tesla shipped 76,230 cars to customers — falling significantly short of the company's full-year forecast of 80-90,000 vehicles.
Why Audi Is Facing Dealer Discontent in China (Bloomberg)
Zhao Chunyu remembers the days, a decade ago, when Chinese consumers were willing to pay as much as 100,000 yuan ($14,400) over list price for an Audi A6L sedan.
Ford scraps plan for $1.6 billion plant in Mexico after Trump criticism (Reuters)
Ford Motor Co (F.N) said Tuesday it will cancel a planned $1.6 billion factory in Mexico and invest $700 million at a Michigan factory, after President-elect Donald Trump had harshly criticized the Mexico investment plan.
Starbucks to Top McDonald’s as Restaurant King, Analyst Says (Bloomberg)
Starbucks Corp. is poised to overtake McDonald’s Corp. as the world’s most valuable restaurant company, and the coffee giant could ultimately have 50,000 locations — more than any current chain.
Skechers: The Comeback Kid? (Stock Hitter, Seeking Alpha)
There is no doubt that 2016 has been a bad year for Skechers (NYSE: SKX). With subpar earnings releases in the last two quarters, investors have severely punished the company.
Technology
Fiat Chrysler unveiled a new minivan concept designed specifically for millennials at the Consumer Electronics Show on Tuesday.
Here’s How Nokia Plans to Invest in Smart Devices (Fortune)
The Finnish phone maker on Tuesday announced a few new devices that it says will help its Withings brand, which Nokia (NOK, -0.21%) acquired in May 2016 for an undisclosed sum, continue to compete in the smart devices market.
This wearable uses tiny needles to analyze glucose levels (Engadget)
There are a lot of things that suck about being diabetic. At the top of the list is having to prick your finger several times a day to check your glucose level. Yes, I'm speaking from experience.
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Mathematical study shows exactly how ride-sharing could cut the number of cars on the road (Mashable Asia)
A new study from researchers at Cornell University and the Massachusetts Institute of Technology found that shared rides — whether through Uber and Lyft or a traditional taxi — could fulfill demand with just 15 percent of the current taxi fleet in New York City.
Telegram Messenger now lets you delete sent messages within 48 hours (Venture Beat)
A series of new features were added to Telegram Messenger today, including the ability to delete or unsend a message within 48 hours of when the message was sent.
Other standout new features include shortened urls for usernames and the ability to follow data usage rates within the app.
Solar Could Beat Coal to Become the Cheapest Power on Earth (Bloomberg)
In 2016, countries from Chile to the United Arab Emirates broke records with deals to generate electricity from sunshine for less than 3 cents a kilowatt-hour, half the average global cost of coal power.
Plume Labs’ Flow is an air quality tracker to avoid pollution (Tech Crunch)
The Flow tracker works both inside and outside and could be particularly useful if you live in a polluted city. It tracks particulate matter (PM2.5), nitrogen dioxide, ozone, volatile organic compounds (VOCs), temperature and humidity. You can clip it to your bag, bike or stroller. It has a tiny leather strap and looks nice.
Politics
Trump and Senate Move Quickly to Repeal Affordable Care Act (NY Times)
Before the new members could even be sworn in, Senate Republicans revealed the parliamentary language that congressional Republicans will use to dismantle Mr. Obama’s signature domestic achievement, the Affordable Care Act, without fear of a filibuster by Democrats in the coming months.
House GOP Drops Bid to Undercut Ethics Board (The Wall Street Journal)
WASHINGTON—House Republicans on Tuesday dropped their effort to curb the independence of a nonpartisan ethics board after a fierce backlash to it eclipsed other news on the first day of the new session of Congress.
Donald Trump announces Jan. 11 news conference, his first since July (Market Watch)
Trump has come under widespread criticism from the media for his unavailability to reporters, especially since his election victory in November. In late November, Trump announced a press conference for Dec. 15 to discuss how he would handle possible conflicts of interest with his business, but postponed it three days before.
Elizabeth Warren blasts GOP for gutting the Office of Congressional Ethics: “Who thinks we have too many rules requiring government to act ethically?”Sen. Elizabeth Warren of Massachusetts, whom progressives hope will take the lead in opposing Donald Trump, took congressional Republicans to task using her Twitter account on Monday night for voting to undermine ethics reforms.
Trump to hold his first official press conference since July (Business Insider)
President-elect Donald Trump said on Twitter Tuesday that he will hold a press conference on January 11.
It would be Trump's first official press conference since July 27, and his first as president-elect. He has done a handful of one-on-one interviews and has taken questions from reporters in more casual settings — including one occasion in Florida last week.
Trump's cabinet picks: here are all of the appointments so far (The Guardian)
The open question of how Donald Trump will govern is being filled in with names of men – and five women, as of early January – floated for inclusion in his cabinet and for cabinet-level posts.
Bill and Hillary Clinton to attend Trump's inauguration (Politico)
Hillary Clinton will be there to watch the man who beat her get sworn in.
Trump’s Trade Rep Pick Gets Some Actual Praise From Progressives (The Huffington Post)
Robert Lighthizer, President-elect Donald Trump’s choice to serve as the next U.S. trade representative, is drawing some positive reviews from progressive critics of current U.S. trade policies.
Health and Biotech
It's official: A brand-new human organ has been classified (Science Alert)
Although we now know about the structure of this new organ, its function is still poorly understood, and studying it could be the key to better understanding and treatment of abdominal and digestive disease.
Does Science Support Ayurveda? (Scientific American)
Ayurveda is an ancient Hindu system of medicine as well as a general philosophy of health and wellness. It includes advice on diet, exercise, sleep, and hygiene, as well as the use of herbal preparations.
An Implant Could Revolutionize The Way We Protect Ourselves From HIV (The Huffington Post)
People at high risk of contracting HIV can significantly lower their chances of getting the virus with a daily pill known as PrEP, or pre-exposure prophylaxis, medicine.
Life on the Home Planet
New evidence suggests there was something very wrong with the Titanic before the iceberg (Science Alert)
More than a century on from its fateful voyage, experts are still discovering more about what happened on board the RMS Titanic – and there's new evidence that a fire below deck could've played a big part in its sinking.
SpaceX Aims To Launch The Falcon 9 Again This Sunday (Popular Science)
SpaceX is ready to resume launching again, a little more than four months following the September 1 explosion that destroyed a Falcon 9 rocket, its payload, and the launch pad it was sitting on.
Climate Change Is Raising Flood Risk in the Northern U.S. (Climate Wire)
Scientists who combined an on-the-ground look at stream gauge data and an above-the-ground view from satellites have determined that as the Earth warms, the threat of flooding is growing in the northern half of the United States.
