Financial Markets and Economy
January Cold Blast to Bring Snow to Europe, Boost Gas Prices (Bloomberg)
Colder-than-normal weather in Europe may this month bring snow to the region’s pistes and increase energy demand and prices.
Prices Are Rising Across the Globe. That's a Good Thing, Right? (Bloomberg)
From goods leaving the factory floor in China’s industrial towns to gasoline at the pump in Europe and America, prices that stayed low for years are finally going up. So that’s a good sign, right?
No One Questioned This Hedge Fund’s Madoff-Like Returns (Bloomberg)
In the years before Mark Nordlicht was arrested for what’s alleged to be one of the biggest investment frauds since Bernie Madoff’s, U.S. authorities had plenty of reasons to suspect something might have been fishy about his hedge fund, Platinum Partners.
German economists call for ECB rate rise after euro zone CPI rise (Reuters)
German economists called on the European Central Bank on Thursday to raise interest rates after euro zone consumer prices grew faster than expected in December.
Global Stocks Steady; Dollar Weakens After Fed Minutes (The Wall Street Journal)
Global stocks were mostly steady Thursday while the dollar continued to pull back from multiyear highs following the release of minutes from the Federal Reserve’s December meeting in which officials expressed uncertainty over President-elect Donald Trump’s policies on the economy.
BARCLAYS: These 13 'black swans' could cause market chaos in 2017 (Business Insider)
2016 was a year of shocks, and with Donald Trump set to be inaugurated as president in less than weeks, and the UK set to begin the formal process of leaving the European Union by the end of March, 2017 could get even more interesting.
China hits back at 'extreme' tariffs from rival economies (The Guardian)
China has criticised “extreme” tariffs on its exports amid concerns in Beijing that Donald Trump will embark on a policy of protectionism as US president.
Sweden's Population Is About to Reach 10 Million (Bloomberg)
Sweden's population is about to cross 10 million.
While that's an arbitrary threshold, the record population growth that made it happen goes a long way to explaining the nation's booming economy.
The days of the European Union are already over (Business Insider)
The European Union’s founders envisioned an “ever-closer union” that gradually eliminated national distinctions. It didn’t happen, and geopolitical expert George Friedman of Geopolitical Futures says the opposite is now taking shape.
U.K. Economy Maintains Solid Growth Momentum as Services Surge (Bloomberg)
Together with reports on manufacturing and construction, Markit said the figures point to U.K. economic growth of 0.5 percent in the fourth quarter, close to the pace recorded in the previous three months.
OPEC Oil Output Slides in December Amid Nigeria Disruptions (Bloomberg)
OPEC’s crude production fell by 310,000 barrels a day in December, as unplanned disruptions in Nigeria reduced the group’s supply before deliberate cuts take effect this month.
Libyan Oil Port Said to Re-Open as OPEC Nation Boosts Output (Bloomberg)
Libya is re-opening its last major oil-export terminal and producing at the highest level in more than two years as the war-torn country benefits from an exemption from OPEC output cuts.
China Can't Quit the Dollar (Bloomberg)
China's leaders are hardly disguising their fears about money leaving the country. They've just imposed new disclosure rules limiting how Chinese — who are allowed to convert up to $50,000 worth of yuan into foreign currency each year — can spend that money overseas.
Dollar Rally Stymied by China, Fed as Gold Climbs: Markets Wrap (Bloomberg)
The dollar faced further headwinds as Chinese efforts to stem capital outflows and the Federal Reserve conspired to halt the strongest rally in the currency in more than a decade. Gold rose.
Bitcoin Hits All-Time High as Currency Controls Drive Fear (Bloomberg)
Bitcoin hit an all-time high Wednesday, according to Bloomberg data, thanks to continued adoption in China and other parts of the world where traditional currencies are tightly controlled.
Following an enormous rout in stocks in 2015, skyrocketing house prices in the nation’s largest cities and a lack of investment options elsewhere, Chinese speculators flocked to commodity futures markets in 2016, trading record volumes during the year.
U.S. Dollar Extends Slide in Asia After Fed Minutes (The Wall Street Journal)
The Chinese yuan surged against the U.S. dollar for the second day running, spurring a broad rise for Asian currencies on Thursday after a dovish set of minutes from the Federal Reserve overnight led traders to temper expectations of higher U.S. interest rates this year.
Yuan Reverses Course, Soars Against Dollar (The Wall Street Journal)
China’s yuan surged to its highest level against the dollar since mid-November in offshore markets, sending investors who had bet against it running for cover and boosting Beijing in its battle to defend the currency.
China stocks end flat, yuan rebound grabs the spotlight (Reuters)
China's main indexes barely changed on Thursday after a three-session winning streak, with investor attention largely diverted by a dramatic rebound in the offshore yuan.
American Drivers Seen Paying $52 Billion More to Fill Up in 2017 (Bloomberg)
Americans may spend $52 billion more to fill their cars this year as OPEC output cuts boost oil prices and state tax hikes take a bigger bite, according to GasBuddy Organization Inc.
China plans to spend $115 billion on railways in 2017: Xinhua (Reuters)
China plans to spend 800 billion yuan ($115.09 billion) on building railways this year, the same budget as last year, to grow its network to 150,000 kilometers, state news agency Xinhua reported on Wednesday.
The economist behind Universal Basic Income: Give all citizens free money to help combat a 'neofascist wave of populism' (Business Insider)
In 2011 Guy Standing, then an economist at the University of Bath, prefaced his new book with a warning.
He described a growing class of "precariat" workers, alienated by a western political agenda which had, since the 1970s, promoted market-led competition above job security.
Inherited Homes to Widen U.K. Divide as Richest Benefit Most (Bloomberg)
A glut of inherited wealth from a decades-long house-price boom is set to worsen inequality in the U.K., according to the Institute for Fiscal Studies.
US gasoline flows may shift as new environmental rules take effect (S&P Global Platts)
It’s essential for a daily fixture of life in the United States — a morning commute for many working Americans — and for transportation of basic goods in the US.
These favourite books of Warren Buffett can help you build true wealth (The Globe And Mail)
Warren Buffett had a pretty good year in 2016. The world’s greatest value investor boosted his personal fortune by about $12-billion (U.S.) and expects 2017 to be even better for his brand of patient, fundamental investing, regardless of what policies Donald Trump ends up pursuing.
FTSE 100 sets new intraday record high as UK services sector sees fastest growth since July 2015 (The Telegraph)
The pain continues for Next. A day after the retailer cut its profit forecast for the financial year, brokers have slashed its rating.
Republicans Likely to Pass “Audit the Fed” (Naked Capitalism)
The Fed appears to be on its way to get some long-overdue payback. In response to the extraordinary, extra-legislative measures taken to rescue financial institutions in the wake of the financial crisis, which former IMF chief economist Simon Johnson called a “quiet coup,” Senator Ron Paul and Representative Alan Grayson sponsored an “Audit the Fed” bill, which was pared back to a Dodd-Frank amendment that provided for a one-time audit of the central bank’s emergency lending programs.
Making America Great Again…With Debt (Financial Sense)
The nation’s debt has grown at a pace that economists and policymakers feel are a disaster waiting to happen. However, Trump stated during the presidential campaign that he will improve the nation’s infrastructure, increase military spending, and upgrade veteran’s benefits, all while cutting taxes.
Doug Kass Explains Why He Is Aggressively Buying Gold (Seabreeze Partners)
The broad consensus is to own stocks and to sell gold.
But, as I have discussed since 2003 in my annual Surprise Lists, the broad consensus of investors is often wrong. Indeed, it is often the case that the very coalescing of popular opinion behind an investment tends to eliminate its profit potential.
More online shopping means more delivery trucks. Are cities ready? (The Conversation)
Two converging trends — the rise of e-commerce and urban population growth — are creating big challenges for cities. Online shoppers are learning to expect the urban freight delivery system to bring them whatever they want, wherever they want it, within one to two hours.
Is The Stock Market Ready To Dump Trump? (Vanity Fair Hive)
The last seven and a half weeks have been a trying time for anyone who thinks the nation’s diplomacy shouldn’t be handled over Twitter. But for the market? It’s been downright delightful, particularly for the people hoping their Dow 20,000 hats are going to be worth something someday.
SoftBank Vision Fund Reaches $100BN As Apple, Oracle and Qualcomm Make Investments (Zero Hedge)
Back in October, Masayoshi Son, Chairman & CEO of SoftBank Group Corp., announced the creation of the SoftBank Vision Fund, a UK-based technology fund, with a $45 billion capital commitment form the Public Investment Fund of the Kingdom of Saudi Arabia.
Chinese Cruise Ship With 2,000 Passengers Stuck At Sea For Two Days Due To Smog (Zero Hedge)
On Wednesday, the Chinese capital issued its highest "red fog alert" for only the second day in history, keeping highways closed in and around the city which is already under a smog alert after weeks of choking winter pollution.
Companies
Disney got a bargain buying Lucasfilm for $4 billion (The Motley Fool)
When Walt Disney paid $4 billion to purchase Marvel in 2009, there was heavy skepticism that the company would get its money back.
Tesla Flips the Switch on the Gigafactory (Bloomberg)
Hidden in the scrubland east of Reno, Nev., where cowboys gamble and wild horses still roam—a diamond-shaped factory of outlandish proportions is emerging from the sweat and promises of Tesla CEO Elon Musk.
Is Emirates Airline Running Out of Sky? (Bloomberg)
In their fifth week of training, women hired as flight attendants at Emirates Airline spend a day in Dubai with Pamela Mizzi. A makeup artist from Malta who spent 12 years in the sky herself, Mizzi greets the students in a windowless instruction space about 20 feet across, lined on three sides by mirrors divided into vanities by bright roundels of light, like an old-timey dressing room.
Sonic Reports Lower Sales, Projects Results to Pick Up in Back End of Year (The Wall Street Journal)
Fast-food chain Sonic Corp.’s sales fell again in the latest quarter, and the company warned the current quarter would be tighter.
Technology
Uber drivers are employees 'eligible for company social security contributions': Swiss agency (Reuters)
Uber drivers are employees for which the company must pay social security contributions, a Swiss insurance agency has ruled, dealing a blow to the U.S. ride-hailing platform that says drivers are freelance contractors.
Google Moves Into Augmented Reality Shopping With BMW and Gap (Bloomberg)
Google is rolling out a real world application for its most ambitious virtual reality effort: letting shoppers see what they might buy without leaving home.
Amazon's Alexa is officially coming to Ford cars (Business Insider)
Ford has teamed up with Amazon to bring Alexa into its cars, the automaker announced at a press dinner at the Consumer Electronics Show in Las Vegas on Wednesday.
Apple Removes New York Times Apps From Its Store in China (NY Times)
Apple, complying with what it said was a request from Chinese authorities, removed news apps created by The New York Times from its app store in China late last month.
An adorable robot that reads bedtime stories and 4 other types of tech you’ll see at CES 2017 (Salon)
The holidays may be over for most people, but the annual gadget carnival of the Consumer Electronics Show in Las Vegas will give some technology-obsessed people a few extra festive days to browse the latest in TVs, self-driving cars, household robots, augmented reality spectacles and more than a few concept thingies and buggy doodads that will either fail in the market or never make it to store shelves in the first place.
Politics
Republicans’ 4-Step Plan to Repeal the Affordable Care Act (NY Times)
Vice President-elect Mike Pence and the top Republicans in Congress made clear on Wednesday, more powerfully and explicitly than ever, that they are dead serious about repealing the Affordable Care Act.
Trump, ‘Lies’ and Honest Journalism (The Wall Street Journal)
“When a politician tells you something in confidence, always ask yourself: ‘Why is this lying bastard lying to me?’ ” As a statement of fierce journalistic independence, this advice from Louis Heren, a veteran correspondent of the Times of London, reflects an admirable if slightly jaundiced view of the reporter’s job.
Trump and Julian Assange, an Unlikely Pair, Unite to Sow Hacking Doubts (NY Times)
Just a year ago, they might have seemed the oddest of couples. But now President-elect Donald J. Trump and Julian Assange, the WikiLeaks founder, have formed a united front against the conclusion of American intelligence agencies that Russian intelligence used hacked emails to interfere in the presidential election.
Enough With the Tweets, China’s State Media Tells Trump (NY Times)
China’s leaders thought they had a solution to the torrent of snark, jibes and condemnation on Twitter: They banned access to it at home. Yet China has become the country that President-elect Donald J. Trump seems to enjoy criticizing the most on his open-all-hours Twitter feed.
State Republicans bent on policing poor folks’ shopping carts see hope in Trump (Think Progress)
State Republicans eager to pile new shopping cart rules onto food stamps recipients think their decade-old quest will finally pay off once Donald Trump is sworn in as president.
Republicans Want to Kill Obamacare Without the Blame (Bloomberg)
Republicans have a problem. They’ve vowed to repeal Obamacare, but they don’t want to take the blame when some of the 20 million people who get health insurance under the Affordable Care Act lose it.
Health and Biotech
A Stomach Grown In A Petri Dish Could Help Scientists Understand Our Guts (Popular Science)
When scientists want to understand how a drug works, they often turn to mice or other small animals to see how it works in them, then try to relate the results in humans. But a mouse is not a human, and its body functions quite differently.
Seriously guys, it's time to stop cleaning your ears with cotton buds (Science Alert)
If you're in the habit of sticking cotton buds (aka Q-Tips) in your ears, snap out of it – that's the latest advice from the American Academy of Otolaryngology, which studies diseases of the ear and throat.
Life on the Home Planet
Climate change: Fresh doubt over global warming 'pause' (BBC News)
A controversial study that found there has been no slowdown in global warming has been supported by new research.
Many researchers had accepted that the rate of global warming had slowed in the first 15 years of this century.
In China, Big Brother isn’t just watching your every move. He may be selling your personal data. (The Washington Post)
Sometimes living in China feels like dystopia has already arrived. As thick clouds of choking smog envelop the Chinese capital this week, more bad news has emerged to make life here feel even more like a grim science fiction movie.
52 Places to Go in 2017 (NY Times)
There are thousands of getaways to explore this year. Here are some ideas to get you started.
The Five Reservations You Need in Vegas (Plus, a Few Backups) (Bloomberg)
Each year, more than 40 million people visit, bringing with them $50 billion to spend at casinos, clubs, and strip joints. But it’s not all sin that rakes it in—in recent years, an increasing portion of that pot is going toward Las Vegas’s now-world-class restaurant scene.
