Financial Markets and Economy
Europeans Aren't Taking Advantage of Low Rates to Manage Debt (Bloomberg)
After years of record-low interest rates, Europeans never had a better opportunity to sort out their debt before the monetary-policy tide turns. The problem is, they haven’t taken it.
Chinese Shares Head for Monthly Advance as Year of Rooster Looms (Bloomberg)
Chinese shares eked out gains amid the lowest turnover in two years as traders looked forward to the start of the nation’s biggest annual holiday. Commodity producers jumped on optimism that a rally in metal prices will continue.
Slowing China Still Added a Full Indonesia Economy in 2016 (Bloomberg)
China's economy may be expanding by its slowest pace since 1990, but its increase in output in 2016 alone was still enough to add an economy the size of Indonesia and bigger than the Netherlands, Turkey, Switzerland and Saudi Arabia.
Iron Ore Extends New Year Ascent as Slump Warnings Intensify (Bloomberg)
Iron ore just won’t back down. Prices are near the highest in more than two years as speculation of sustained Chinese demand for imports outweighs repeated warnings from analysts that the rally is overextended and will unravel.
Trump reportedly has a list of $137 billion in infrastructure projects he wants to build (Business Insider)
President Donald Trump's administration has compiled a list of 50 infrastructure projects, totaling $137.5 billion in investment, that it wants to undertake according to documents obtained by the Kansas City Star and The News Tribune in Tacoma, WA.
How Team Trump Sees Unemployment and Why It Matters (Benchmark, Bloomberg)
Donald Trump has long cast a skeptical eye on the official unemployment rate — and this week, both Treasury Secretary nominee Steven Mnuchin and White House Press Secretary Sean Spicer have clarified what the president might mean when he says the jobless figure isn't real.
Panama Papers Show Global Corruption Got Worse in 2016: Watchdog (Bloomberg)
Revelations of tax-evasion and money-laundering networks on a global scale in the so-called Panama Papers helped make the world appear more corrupt last year, according to graft watchdog Transparency International.
Trump's approach to trade risks tit-for-tat reaction: ECB's Praet (Reuters)
U.S. President Donald Trump's approach to international trade issues suggests an inclination for bilateral deals, which risk a backlash from nations who are left out, European Central Bank chief economist Peter Praet said on Tuesday.
Economists Think the BOJ Has Finished Adding Stimulus Under Kuroda (Bloomberg)
The Bank of Japan has finished adding stimulus to the economy during the term of Governor Haruhiko Kuroda, according to almost all economists surveyed by Bloomberg. None of the 42 see any change coming at the next policy board meeting that ends Jan. 31.
Davos Elite Fret About Inequality Over Vintage Wine and Canapés (NY Times)
You have perhaps noticed that in many countries, history-altering numbers of people have grown enraged at the economic elite and their tendency to hog the spoils of globalization.
Donald Trump Jobs: President's Corporate Tax Reforms May Be Great For M&A But Terrible For Creating Employment Opportunities (Motley Fool)
Based on the details released in his 100-day plan, Donald Trump plans to tackle a variety of issues early in his presidency. Trump and his Republican congressional peers have vowed to quickly repeal the Affordable Care Act, the hallmark piece of legislation enacted during the presidency of Barack Obama.
Dubai Airport Traffic Slows as Oil Slump Hits Emirates (Bloomberg)
Dubai International Airport predicted passenger growth will slow for a second year in 2017, underscoring the challenges facing the aviation industry in the region after years of aggressive expansion.
Productivity (Bloomberg)
The idea is simple: A nation’s productivity is calculated by dividing what it produces by the labor it took to provide those goods and services. What’s confounding economists is why productivity growth has slowed in many countries during the last decade, even as other economic gauges have improved.
A top strategist explains the biggest problem China faces (Business Insider)
Viktor Shvets is Macquarie's head of global equity strategy and Asia-Pacific equity strategy.
Santander Chairman Sees Growth in All of the Bank’s Markets (Bloomberg)
Banco Santander SA Chairman Ana Botin said she expects growth in all of the lenders’ markets in 2017 after Spain’s largest bank reported fourth-quarter profit that beat estimates. The shares jumped.
U.S. Home Sales Drop as Supply Tumbles to 17-Year Low (NY Times)
U.S. home resales fell more than expected in December as the supply of houses on the market dropped to levels last seen in 1999, but the housing market recovery remained intact against the backdrop of a tightening labour market.
Americans Are Flipping Houses Like It’s 2006 (Bloomberg)
A tactic that helped define the height of homebuying madness in the U.S. in the years before the market collapsed is rearing its head again.
Southern California home prices jump and sales fall (Los Angeles Times)
An improving economy and a shortage of homes for sale propelled prices up 6.8% from a year earlier, real estate data firm CoreLogic said Tuesday. December’s median price of $470,000 was up 1.1% from a month earlier.
Japan Exports Up for First Time in 15 Months, U.S. Protectionism Poses Risks (NY Times)
Japan's exports rose for the first time in 15 months in December on strong sales of electronics and car parts, a positive sign for the export-reliant economy even as U.S. protectionism threatens to hurt trade across the region and dent external demand.
Panama suspends Panama Papers investigation (DW Made For Minds)
The country's attorney general has claimed the probe "has been taken away from us," citing a legal challenge. The Supreme Court is expected to rule on whether to reactivate the probe into rampant tax avoidance.
China Approaching the Limits of Currency Management (Financial Sense)
This monetary strain will be exacerbated by activities in the United States including an expected rise in interest rates and an aggressive stance against China by the incoming Trump administration. These factors pose significant challenges to China’s long-term growth targets even as Beijing carefully manages the Yuan’s devaluation.
America’s Coming Water Affordability Crisis (Naked Capitalism)
Yves here. We’ve mentioned off and on of all natural resources, potable water will come under pressure first, with the situation become acute by 2050. That is before you get into the infrastructure-related issues that the post below highlights.
A New Order of the Ages (Financial Sense)
I'm standing in line waiting to place a coffee order. A group of young customers are ahead of me, necks crooked 45 degrees, eyes glued to their phones, index fingers flying through Twitter feeds filled with post-inauguration memes.
Warehouse Space Shortage Eases, New Construction Catches Up With Demand (The Wall Street Journal)
A nationwide shortage of warehouse space that drove a yearslong surge in rents is showing signs of easing, the chief executive of the biggest owner of U.S. industrial real estate said Tuesday.
Industrial commodities prices to surge in 2017 (The World Bank)
Prices for industrial commodities such as energy and metals appear to have bottomed out last year and are forecast to post strong gains in 2017.
The Hot Stock: Freeport-McMoRan Soars 8.4% (Barron's)
Freeport-McMoRan (FCX) soared to the top of the S&P 500 today as metal & mining stocks rallied sharply after President Donald J. Trump signed executive orders meant to increase spending on infrastructure.
Goldman: PBOC Actions Were To Boost Liquidity (Value Walk)
Don’t be deceived by signals coming out of the People’s Bank of China. When the media reported the PBOC had approved a 100 basis point cut in the bank’s Reserve Requirement Ratio (RRR), that was not an easing signal, Goldman Sachs analysis surmises.
Companies
Denver-based Janus Capital profit falls 34 percent as investors withdraw cash (The Denver Post)
Janus Capital Group, the fund company merging with Henderson Group, said fourth-quarter profit fell 34 percent as investors pulled cash amid lackluster performance.
Buffalo Wild Wings authorizes $400M in stock buybacks (New York Post)
Buffalo Wild Wings has a bigger appetite for stock buybacks than expected.
The Minneapolis-based sports restaurant chain announced Tuesday that it authorized an additional $400 million to be used for stock buybacks, bringing the total authorization to $900 million.
Chipotle Goes Back to Playing Games (Fool.com)
Just when you thought that a return to positive comps would spell an end to the giveaways thatChipotle Mexican Grill(NYSE: CMG)sprinkled through 2016, the former fast-casual darling is back with another online game where everybody's a winner.
The Biggest Loser: Verizon Tumbles 4.4% (Barron's)
Verizon Communications (VZ) tumbled to the bottom of the S&P 500 today after its earnings fell short of analyst forecasts.
Gilead Sciences Stock: What Could Go Wrong? (Fool.com)
In the wake of weakening hepatitis C drug revenue and key trial disappointments, Gilead Sciences(NASDAQ: GILD) shares have tumbled over the past year. Is now a good time to buy? Before you decide, it could help to understand what risks remain for the company and its investors.
Lockheed Martin 2017 Guidance Falls Short (The Wall Street Joural)
Lockheed Martin Corp. sought to reassure investors on Tuesday, saying for the first time that its F-35 combat jets, its largest program, would become more profitable despite pressure by President Donald Trump to cut costs.
Technology
Trump Attacks BMW and Mercedes, but Auto Industry Is a Complex Target (Bloomberg)
Hyundai Motor Co. warned of increasing uncertainties with the spread of trade protectionism and intensifying competition, after reporting a 33 percent decline in operating profit due to domestic labor strife and shrinking demand in Brazil and Russia.
Shortly after Donald Trump won the 2016 presidential election, the chief technology officer of Uber rattled off an explosive email meant for a small group of employees that quickly spread like wildfire within the company, Business Insider has learned.
Cisco Pays $3.7 Billion for Software Maker AppDynamics (The Wall Street Journal)
Cisco Systems Inc. is buying software company AppDynamics Inc. for $3.7 billion, plucking the startup from IPO registration at a big premium in an effort to bolster its software offerings to large enterprise customers.
Why It Matters That Human Poker Pros Are Getting Trounced By an AI (Gizmodo)
We’re at the halfway point of the epic 20-day, 150,000-hand “Brains Vs. Artificial Intelligence” Texas Hold’em Poker tournament, and a machine named Libratus is trouncing a quartet of professional human players. Should the machine maintain its substantial lead—currently at $701,242—it will be considered a major milestone in the history of AI. Here’s why.
Politics
Trump administration seeks to muzzle U.S. agency employees (Reuters)
U.S. President Donald Trump's administration has moved since he took office last week to curb the flow of information from several government agencies involved in environmental issues, in actions that may have been designed to discourage dissenting views.
Beyond the bread basket: Rural America has unique challenges (The Conversation)
President Donald Trump has nominated former Georgia Gov. Sonny Perdue to lead the Department of Agriculture.
U.K.’s May Faces Brexit Revolt as Lawmakers Challenge Her Power (Bloomberg)
U.K. Prime Minister Theresa May is battling a rebellion from her own lawmakers which threatens to complicate her talks over leaving the European Union.
House Republicans tackle their first priority under Donald Trump: attacking abortion rights (Salon)
Last month Planned Parenthood released focus group research showing that while Donald Trump’s supporters are often willing to express sexist attitudes, they aren’t particularly keen on attacking reproductive health care access.
Trump Injects High Risk Into Relations With China (NY Times)
For China, President Trump’s scrapping of the American-brokered Pacific trade agreement is a chance to extend Beijing’s economic and political influence. And it is an opportunity to deepen ties with its neighbors in Asia.
California Governor Defiant In Face Of Trump Agenda (Associated Press)
Gov. Jerry Brown forcefully defended California's efforts to curb global warming, protect immigrants and expand health care, vowing in his State of the State address Tuesday to fight the Trump administration if it tries to roll back the state's accomplishments.
Trump administration tells EPA to cut climate page from website: sources (Reuters)
U.S. President Donald Trump's administration has instructed the Environmental Protection Agency to remove the climate change page from its website, two agency employees told Reuters, the latest move by the newly minted leadership to erase ex-President Barack Obama's climate change initiatives.
Figures On Government Spending And Debt (Associated Press)
Figures on government spending and debt in millions of dollars. The government's fiscal year runs Oct. 1 through Sept. 30.
In Bali, Trump’s Planned Six-Star Hotel Risks Angering the Gods (Bloomberg)
Anything taller could anger the Gods the Hindu locals believe inhabit the island. So plans to renovate a decades old hotel overlooking a 16th-century temple and turn it into a bigger six-star resort, complete with a tower and upgraded golf course, are causing some anxiety.
Trump Threatens Federal Intervention in Chicago, Citing ‘Carnage’ (NY Times)
President Trump threatened federal intervention in Chicago on Tuesday night if the city does not do more to address violent crime, resurfacing a criticism he made during the presidential campaign.
Tom Price’s Heated Hearing Is Unlikely to Derail His Nomination (NY Times)
In a heated confirmation hearing that focused on ethical issues, President Trump’s nominee for secretary of health and human services, Representative Tom Price, defended his trading of medical and pharmaceutical stocks on Tuesday, saying, “Everything that I did was ethical, aboveboard, legal and transparent.”
Donald Trump repeats debunked claim that millions of people illegally voted against him (Salon)
President Donald Trump repeated an old, debunked claim during a meeting with congressional leaders Monday, saying that he would have won the popular vote — which he lost by nearly 3 million people — were illegal voters not counted.
Iraq is worried that Donald Trump says he may re-invade to take their oil (Salon)
When President Donald Trump gave a speech before the CIA Memorial Wall in Langley, Virginia, the American intelligence community was not the only group listening. Trump’s off-the-cuff remarks about oil and Iraq reportedly reached Iraqi soldiers and militiamen who are currently fighting ISIS.
The 45th president (The Economist)
MUCH of the time, argues David Runciman, a British academic, politics matters little to most people. Then, suddenly, it matters all too much. Donald Trump’s term as America’s 45th president, which is due to begin with the inauguration on January 20th, stands to be one of those moments.
Life on the Home Planet
Internet only ‘Ghost Restaurants’ are the next big thing (TNW)
It’s late, and you’re craving some food. After the inevitable back and forth with your significant other, you decide on a restaurant called Leafage, a a salad shop near Grand Central in New York City.
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Badlands National Park deletes climate change tweets after its account was ‘compromised’ (The Verge)
The stream of tweets about climate change that appeared on the Badlands National Park’s Twitter account today were deleted because the account had been “compromised,” a US National Parks official tells BuzzFeed News.
