Financial Markets and Economy
Dollar touches 10-day high before Trump-Abe meeting (Reuters)
The dollar hit its highest level in 10 days against the yen ahead of a meeting of the U.S. and Japanese leaders on Friday, putting it on course for its best week against a basket of major currencies since mid-December.
ECB needs to take rate cuts off the table: Mersch (Reuters)
The European Central Bank needs to take rate cuts off the table, tweaking its guidance to preserve credibility, Executive Board member Yves Mersch said on Friday, a hawkish comment that may signal renewed discord among policymakers.
OPEC Keeps Its Promise About Crude Oil Cuts, IEA Says (Bloomberg)
OPEC achieved the best compliance rate in its history at the outset of an accord to clear the oil glut, a plan that’s being supported by surprising strength in demand, the International Energy Agency said.
Citigroup Says Keep Calm and Carry On Buying Equities (Bloomberg)
Citigroup Inc. is looking to history to show the global equity rally could be far from over.
How the Flash Crash Trader’s $50 Million Fortune Vanished (Bloomberg)
It took Navinder Singh Sarao a long time to accept that he might have been scammed out of $50 million. Stuck in London’s Wandsworth prison, wracked with anxiety and unable to sleep, the realization dawned on the man dubbed the “Flash Crash Trader” as slowly as spring turned to summer outside the barred window of his jail cell.
Brighter Outlook Fails to Shake Gloom Hanging Over European Boardrooms (The Wall Street Journal)
Unemployment in Europe is heading toward a seven-year low, and inflation is finally approaching what central bankers see as healthy. Economic growth across the continent beat the U.S. last year, the first time that has happened since 2008.
The World According to a Free-Range Short Seller With Nothing to Lose (Bloomberg)
The roosters start crowing at 4 a.m. on Alder Lane Farm, about an hour north of San Francisco on the edge of Sonoma wine country.
Once ‘King of Hedge Funds,’ College of Wooster Becomes a Skeptic (Bloomberg)
Hedge funds once seemed crucial to helping the College of Wooster boost the value of its endowment. Not anymore.
“We were the king of hedge funds,” said John Sell, an economics professor who also serves as the investment director at the $263 million endowment in the Ohio town of the same name.
Abby Joseph Cohen, Famous for Bullish Calls, Plans to Retire (Bloomberg)
Goldman Sachs Group Inc.’s Abby Joseph Cohen, who became one of Wall Street’s most prominent strategists with prescient calls on some of the biggest U.S. rallies, is retiring as president of the firm’s Global Market Institute.
The Becalming of Stock Volatility (Bloomberg)
Markets have been eerily calm. It’s now been 40 trading days since the last move of 1 percent in the S&P 500, and that was an up day. Stocks haven’t had a down day of 1 percent in more than 80 trading days — and that was in early October.
A Retired Business Professor Stashed $200 Million With Credit Suisse (Bloomberg)
A former client of Credit Suisse Group AG who pleaded guilty to hiding $200 million from U.S. tax authorities is at the center of a struggle between the Justice Department, which wants to send a stern message by sending tax cheats to prison, and U.S. judges, who have opted for leniency in past cases.
Why Our Biology Works Against Us In Markets (Value Walk)
A strong psychological foundation is the key to successful investing. The human mind is a powerful, complex tool that quickly turns into a double-edged sword to those untrained in its control.
U.S. import prices rising at fastest rate since 2012 (Market Watch)
The cost of imported goods surged in January for the third time in four months and they are climbing at the fastest pace in five years, mostly because of rising oil prices that are nudging U.S. inflation higher.
Breadth For The 9 S&P 500 Sectors (Andrew Thrasher)
Below are the charts showing price (most charts are price only and not dividend adjusted outside of $XLF, which is divided-adjusted) as well as the sector’s respective Advance-Decline Line.
Companies
Reckitt Benckiser to Buy Mead Johnson in $16.6 Billion Deal (Bloomberg)
Reckitt Benckiser Group Plc agreed to buy Mead Johnson Nutrition Co. for $16.6 billion, taking the U.K. consumer-products maker into the baby-formula market and providing a catalyst for growth as its sales momentum slows.
Amazon.com Takes Aim at Victoria’s Secret With Its Own $10 Bras (The Wall Street Journal)
Amazon.com Inc. is moving onto Victoria’s Secret’s turf.
The online retailer plans to start selling its own line of competitively priced women’s intimate apparel on its U.S. website, according to people familiar with the matter, something that could begin in the next several weeks.
Now Under Armour Has a Trump Problem, Too (Bloomberg)
The top executive at Under Armour Inc. is a fan of Donald Trump. His top athletes aren’t. Let the fireworks begin.
Three of the clothing company’s biggest names spoke out against Chief Executive Officer Kevin Plank after he publicly praised the Republican president, declaring on CNBC that Trump is a “real asset for the country.” Plank is a member of the administration’s American Manufacturing Council.
Technology
Trump's constant tweeting is actually a negative for Twitter, top analyst says (CNBC)
Twitter is not seeing a boost in business from the "Trump effect" despite the president's active tweeting, as advertisers steer clear of the platform so their brands don't get targeted, analyst Richard Kramer said on Thursday.
Amazon taps speech synthesis smarts to make Alexa’s voice more expressive (Venture Beat)
Alexa is pretty smart, but no matter what the AI-powered assistant talks about, there’s no getting around its relatively flat and monotone voice.
Here's why tech has taken over our relationships (CNet)
If you had to explain dating in 2017 to a time traveler from the 1950s, what would you say?
This new material can turn sunlight, heat, and movement into electricity – all at once (Science Alert)
Scientists have discovered that a certain type of mineral has the right properties to extract energy from multiple sources at the same time – turning solar, heat, and kinetic energy into electricity.
Google Pixel's Assistant AI upgraded for smart home control (Engadget)
At Google I/O last May, the tech giant announced its own voice-powered hub to rival Amazon's Echo: the Home, which would be powered by their AI helper, Assistant.
Fear of Crackdown on H-1B Program Causes Rift Between Silicon Valley, Indian Tech Firms (The Wall Street Journal)
Silicon Valley technology firms, worried about their ability to bring foreign workers to the U.S. under President Donald Trump, are distancing themselves from Indian outsourcing firms, which are heavy users of the same visa program that U.S. tech firms rely on.
Politics
Trump, Japan's Abe to hold summit amid air of uncertainty (Reuters)
With differences simmering in the background, U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe open two days of talks on Friday looking to build a close relationship for what could be some tense times ahead.
Trump Will Use Abe Visit to Soothe Worried Asia-Pacific Allies (The Wall Street Journal)
President Donald Trump plans to use the White House visit of Japanese Prime Minister Shinzo Abe on Friday to reassure America’s Asia-Pacific allies that his administration values U.S. alliances in the region, despite his earlier comments raising doubts about his support for the relationships.
Trump Vows to Fight as Appeals Court Thwarts Immigration Ban (Bloomberg)
A federal appeals court unanimously refused to reinstate President Donald Trump’s ban on travel from seven Muslim-majority countries, issuing a sharp rebuke in a ruling likely destined for the U.S. Supreme Court.
Senate confirms Rep. Price as health secretary (Reuters)
The U.S. Senate voted on Friday to confirm Representative Tom Price as the top U.S. healthcare official, putting a determined opponent of Obamacare in position to help President Donald Trump dismantle the healthcare law.
White House Probing Leaks After Details of Call Between Donald Trump and Vladimir Putin Released (The Wall Street Journal)
The White House is investigating how the content of several of President Donald Trump’s conversations with foreign leaders ended up being leaked to the media, a senior administration official said Thursday.
Trump’s Oval Office Tweets Force CEOs to Choose Fight or Flight (Bloomberg)
President Donald Trump is injecting himself into the daily business of U.S. companies to an unprecedented extent, spurring investors and executives to weigh their exposure to his wrath when making decisions.
Trump’s refugee and visa ban gets another big defeat in court (Vox)
President Trump’s refugee and visa ban is still on hold — and its future isn’t looking good.
The Ninth Circuit Court of Appeals just rejected an attempt by the Justice Department to reinstate the ban, after District Judge James Robart put a temporary restraining order on it last week.
President Trump's Complicated Relationship with the Truth (Yahoo News)
A look at the president's false claims, from alleging widespread voter fraud to saying the US murder rate being the highest in decades.
Trump changes tack, backs 'one China' policy in call with Xi (Reuters)
U.S. President Donald Trump changed tack and agreed to honor the "one China" policy during a phone call with China's leader Xi Jinping, a major diplomatic boost for Beijing which brooks no criticism of its claim to self-ruled Taiwan.
Life on the Home Planet
Assad rejects safe zones in Syria: Yahoo News interview (Reuters)
President Bashar al-Assad rejected the creation of safe zones for refugees and displaced people in Syria, an idea supported by U.S. President Donald Trump, according to a transcript from an interview with Yahoo News released on Friday.
Russia halted Syrian army, rebel clash in northern Syria: sources (Reuters)
Russia intervened to halt a clash between Syrian government forces and Turkey-backed Syrian rebels in northern Syria, sources on both sides said on Friday, the first confrontation between them as both sides fight Islamic State in the area.
China and Vatican Near Pivotal Deal on Bishops (The Wall Street Journal)
The head of the Roman Catholic Church in Hong Kong signaled that the Vatican and Beijing are nearing an accord over how Chinese bishops are picked, a key step toward “normalizing” bilateral ties marred by six decades of estrangement.
