Financial Markets and Economy
Dollar Regains Reflation Mojo as Hedge Fund Bets Get Flushed Out (Bloomberg)
Disheartened by the dollar’s five-week selloff to start the year, hedge funds pared back one of their favorite trades — leveraged bets on the greenback’s gains — to the least in more than four months last week.
Sugar Traders Brace for Wild Ride as Surplus Hangs on Weather (Bloomberg)
While most analysts forecast a return to surplus in the 2017-18 season that starts in October, many are considering “best case scenarios,” Michael Gelchie, a trading director at Sucres et Denrees SA, or Sucden, said at the Dubai Sugar Conference on Sunday.
Texas' Permian Basin: An Oil and Natural Gas Production Machine (Forbes)
The Permian Basin has been a key research area of mine for over a decade. I used to report on the enormous CO2-EOR opportunities that exist in this massive oil and gas play that stretches over 75,000 square miles from west Texas into southeastern New Mexico.
Oil prices slip back; traders await OPEC report (Market Watch)
Crude futures slipped on Monday as investors booked profits ahead of a key data that would indicate the progress of an ongoing multi-country effort to cut back oil production.
European Stocks Join Global Equity Rally as Miners Extend Climb (Bloomberg)
European stocks rose in a broad rally, approaching their highest level since December 2015, as increasing copper prices boosted the shares of basic-resources companies.
America’s Biggest Creditors Dump Treasuries in Warning to Trump (Bloomberg)
In Japan, the largest holder of Treasuries, investors culled their stakes in December by the most in almost four years, the Ministry of Finance’s most recent figures show. What’s striking is the selling has persisted at a time when going abroad has rarely been so attractive.
Oil Falls on Rise in U.S. Drilling (Reuters)
Oil prices fell nearly one percent on Monday in response to growing evidence that U.S. production is rising and as some investors unwound positions ahead of OPEC's first report on compliance with its deal to cut production.
China’s Zombie Province Shows Trouble With Its Bond Market (Bloomberg)
Nowhere are China’s rusted-out industries worse than in Liaoning, a province that’s slumped into outright recession and where officials have admitted to years of inflating fiscal revenue data.
Investor Honeymoon With OPEC Falters as Shale Drilling Booms (Bloomberg)
After unprecedented optimism that the Organization of Petroleum Exporting Countries will manage to ease a global supply glut, money managers reduced their bets on rising West Texas Intermediate prices for the first time in a month.
This company makes food packaging out of bamboo to cut down on trash (CNN)
Universal Biopack makes packaging that it sells to restaurants and manufacturers. But rather than plastic, it uses a mixture of bamboo and cassava, crops that are widely found across the country.
Japan’s Economy Slows Again (The Wall Street Journal)
Feeble spending by Japanese consumers took the shine off a pickup in exports and investment late last year, highlighting the threat to the economic recovery here if international trade weakens under U.S. President Donald Trump.
A row over money could derail Brexit talks before they have begun (The Economist)
These are exhilarating times for the 52% of British voters who last summer opted to leave the European Union. After months of rumours that an anti-Brexit counter-revolution was being plotted by the Europhile establishment (who even won a Supreme Court case forbidding the government from triggering Brexit without Parliament’s permission), it at last looks as if independence beckons.
Santoli: Don’t chase this rally overdue for a setback (CNBC)
When someone says "Don't chase this rally," it's important to get clarity on what's really being said. Some market observers are just spoilsports, or reflexively contrarian without any basis. Other times, it's a euphemistic way to argue that risks are high and the market is in grave danger – so get out now.
Japan’s GDP Highlights the Export Risks That Abe Hopes to Curb (Bloomberg)
The strength in exports that fueled a fourth straight quarter of economic growth in Japan underscores just how important it is for Prime Minister Shinzo Abe to ease trade tensions with the Trump administration.
How to measure North Korea’s economy (The Economist)
FACTS about the North Korean economy are not so much alternative as non-existent. The country has never published a statistical yearbook. If it did, no one would believe it. Nicholas Eberstadt of the American Enterprise Institute, a think-tank, calls analysis of its economy “essentially pre-quantitative”.
5 Dividend Stocks to Put on Your Shopping List (Fool.com)
As an income investor, are you skeptical about finding high-quality dividend stocks at a decent price now that theS&P 500 isheading to record highs? Fret not, for you've come to the right place.
Forget ‘Fake News.’ For Markets, It’s Never Been More Real (Bloomberg)
That’s the conclusion drawn from a paper by the Federal Reserve Bank of San Francisco, which suggests that financial news holds predictive power when it comes to a slew of economic data.
Offshore Wind Moves Into Energy’s Mainstream (NY Times)
When engineers faced resistance from residents in Denmark over plans to build wind turbines on the Nordic country’s flat farmland, they found a better locale: the sea. The offshore wind farm, the world’s first, had just 11 turbines and could power about 3,000 homes.
COT: Record longs in WTI and copper reduced — #SaxoStrats (Saxo Group)
Hedge funds reduced their overall commodity exposure for a second week up until February 7. Record-long positions in WTI crude oil and high-grade copper were reduced primarily through new short selling.
Japan, Inc.: Optimized to 1960, Stumbling in the 21st Century (OfTwoMinds)
When everything's going great, nobody questions the nation's core institutions:they must be doing a great job because everything's going great.
Shareholder democracy is ailing (The Economist)
Democracy is in decline around the world, according to Freedom House, a think-tank. Only 45% of countries are considered free today, and their number is slipping. Liberty is in retreat in the world of business, too.
5 Things We Learned From The Wall Street Journal's Exclusive Report on SpaceX (Fool.com)
It's what you may not have heard, though, that will really shock you: SpaceX never planned to earn much profit from launching rockets in the first place.
Why shocks to large banks cause big GDP swings (Vox)
Modern finance has increasingly been characterised by higher financial concentration. Federal Reserve data show that in 2010 the three largest US institutions – Bank of America, JP Morgan, and Citigroup – held 49% of all banking assets.
Tax Reform: The Good, the Bad, and the Ugly, Part Two (Mauldin Economics)
Taxation is almost never an exciting subject, nor do we want it to be. The best tax system would be silent and unobtrusive. It would raise enough revenue to cover essential government functions and not a penny more. Sadly, our US system is nowhere near the ideal.
Trump May Stumble Into a Currency War (Financial Sense)
Recent reports suggest that President Trump asked National Security Adviser Michael Flynn about whether a strong or weak dollar was in US interests. According to the leaks, Flynn suggested asking an economist.
Three Things Are About To Derail Trump's Fiscal Plan, Goldman Warns (Zero Hedge)
For some still unknown reason, Goldman Sachs, the bank that single-handedly accounts for the bulk of Trump's closest economic and financial advisors, and whose former COO has been reportedly tasked with hatching Trump's "phenomenal" tax plan, has been on a tear in the past month to discredit his proposed political agenda.
Companies
Target calls Apple Pay ‘awesome,’ says it is working on bringing support to its stores (9To5Mac)
One of the most notable Apple Pay holdouts has been Target. Despite promising to support the mobile payment platform, Target has instead opted for its own in-app payment solution and store card.
How Wal-Mart Can Take On Amazon Beyond Free 2-Day Shipping (Fool.com)
The world's largest retailer ditched its Amazon Prime-wannabe, Shipping Pass, which offered free three-day shipping for an annual fee of $49, and is instead offering free two-day shipping on all orders of $35 or more.
Hypocrisy: Slave Labor Company, Nike, Runs Equality Ad During Grammys (iBankCoin)
Everyone can appreciate the sentimentality of equality. God knows those standards are woefully violated in many parts of the world, especially the parts where Nike manufactures their sneakers.
Something in the Airbnb: hosts anxious as New York begins crackdown (The Guardian)
A war of words between Airbnb and New York, its largest market, has escalated with the first fine issued by the city in what is expected to be a crackdown on “hosts”.
Verizon – Undervalued Once Again (Mercenary Investor, Seeking Alpha)
Recently, Verizon's stock (NYSE:VZ) has slumped amidst a series of negative news stories regarding Verizon. These stories do not reflect the long-term potential of the company, and present an attractive entry opportunity.
Ritholtz Wealth CEO on Twitter: 'I'm Losing Confidence by the Quarter' (The Street)
Shares of Twitter (TWTR) were slumping by over 12% in late afternoon trading on Thursday after the social networking company reported a revenue miss for the 2016 fourth quarter and weak guidance.
What’s So Great About Snapchat Anyway? (The Wall Street Journal)
The following sign should appear as you enter the Snapchat app: You must be 25 or younger to ride. Figuring out the interface may pose a risk to people who remember VCRs and Walkmans.
Technology
Amazon Discloses Iranian Business Ties, Warns of Penalties (Bloomberg)
Amazon.com Inc. on Friday disclosed Iranian business ties that may have violated U.S. sanctions, warning that it may be penalized after a regulatory review of the activities.
Australian banks narrow focus of Apple Pay collective bargaining request (Reuters)
Australian banks seeking permission from the country's competition regulator to bargain collectively with Apple Inc (AAPL.O) over its mobile payment system said on Monday they will focus on gaining access to the U.S. tech company's contactless payment function, removing the fees Apple charges as a bone of contention.
Quantum Computers Could Crush Today’s Top Encryption in 15 Years (Singularity Hub)
Quantum computers could bring about a quantum leap in processing power, with countless benefits for fields like data science and AI. But there’s also a dark side: this extra power will make it simple to crack the encryption keeping everything from our emails to our online banking secure.
Politics
In the Face of Weighty Problems, Trump Focuses on Squabbles (NY Times)
The morning after North Korea launched a ballistic missile into the sea, apparently to test President Trump’s resolve in his first days in office, the new commander in chief wanted to make one thing very clear to the world: Mark Cuban, the billionaire Dallas Mavericks owner, was not smart enough to have his job.
Trump Criticized Obama for Golfing. Now He Spends Weekends on the Links. (NY Times)
As a private citizen, Donald J. Trump was repeatedly critical of President Obama’s fondness for relaxing with a round of golf.
Trump just revealed his official inauguration poster and it has a glaring typo (US Uncut)
resident Trump’s official inauguration portrait went up for sale with an obvious typo on it this evening.
Donald Trump Seems To Think Dakota Pipeline Protesters Are ‘Enthusiastic Supporters’ (The Huffington Post)
President Donald Trump complained on Sunday that the media failed to mention the “big crowds” of supporters who lined his motorcade route in West Palm Beach as he returned to Washington.
Hezbollah Leader Says 'Idiot' Trump Makes Him Optimistic (Associated Press)
The leader of Lebanon's militant Hezbollah group says the world will benefit from having an "idiot" in the White House.
Why Trump Can’t Bully China (Project Syndicate)
As US President Donald Trump proceeds to destabilize the post-war global economic order, much of the world is collectively holding its breath. Commentators search for words to describe his assault on conventional norms of leadership and tolerance in a modern liberal democracy.
Turmoil at the National Security Council, From the Top Down (NY Times)
These are chaotic and anxious days inside the National Security Council, the traditional center of management for a president’s dealings with an uncertain world.
John Oliver Hatches a Plan to Reach Trump Where He Watches (NY TImes)
John Oliver kicked off his fourth season on HBO on Sunday night with 25 minutes of predictable outrage that built to five spectacular minutes of brashly original guerrilla warfare.
Putin Has Lessons for Trump in the Art of ‘Great Powerness’ (Bloomberg)
Warning: the Kremlin is trying to split the West by spreading “altered facts,” conducting blackmail and setting up front organizations, the U.S. State Department said — in 1981.
Donald Trump seeks a grand bargain with Vladimir Putin (The Economist)
GEORGE W. BUSH looked into Vladimir Putin’s eyes and thought he saw his soul. He was wrong. Barack Obama attempted to “reset” relations with Russia, but by the end of his term in office Russia had annexed Crimea, stirred up conflict elsewhere in Ukraine and filled the power vacuum that Mr Obama had left in Syria.
The timeline of Trump's ties with Russia lines up with allegations of conspiracy and misconduct (Business Insider)
The timeline of claims made in an unsubstantiated dossier presented by top US intelligence officials to President Donald Trump and senior lawmakers last month has increased scrutiny of events that unfolded in the final months of the Trump campaign.
Life on the Home Planet
Thousands in California Told to Evacuate Amid Fears of Flooding at Lake Oroville (NY Times)
The authorities in Northern California raced to evacuate tens of thousands of people on Sunday night in fear of the possible failure of an emergency spillway at the Oroville Dam.
Here's How Magic Tricks Short-Circuit Your Brain (Popular Mechanics)
We all know magic tricks are just that—tricks. They're not actually magic. Yet we're still astounded by them, and they seem otherworldly. Is it just that we're suspending disbelief, like we would at a Star Wars movie? According to this handy video from Digg, featuring New York magician Jonathan Hsu, magic is about exploiting "the gaps of logic" in people's brains.
Want to Make a Lie Seem True? Say It Again. And Again. And Again (Wired)
YOU ONLY USE 10 percent of your brain. Eating carrots improves your eyesight. Vitamin C cures the common cold. Crime in the United States is at an all-time high.
None of those things are true.
Why disasters repeat themselves: We ignore the lessons of the past at our own expense (Salon)
It is often observed that history is inevitably prone to repeat itself, and perhaps nowhere is this truer than in disasters. People resettle in floodplains, stock market crashes come in cycles, and careless drivers suffer repeated crashes.
KKK Imperial Wizard Frank Ancona Found Dead Near River in Missouri (TIME)
Frank Ancona, the imperial wizard of the Traditionalist Knights of the Ku Klux Klan, was found dead Saturday near Belgrade, Mo.
To boost cinema attendance, China wages war on critics (The Economist)
Chinese cinema-goers are used to the government’s tight grip on the film industry. In deference to the Communist Party’s qualms, filmmakers eschew happy endings for teenage lovers or homosexuals, let alone anything critical of the party itself.
Forget The Myths: Innovation Isn't Created The Way Most People Think (Forbes)
If you search for "innovation" or "entrepreneurship," Google will present you with glowing light bulbs. They obviously represent the "good idea," the typical mental image of innovation.
