Financial Markets and Economy
Understanding the Trump Rally (Bloomberg)
Experts and pundits predicted a stock market crash if Trump were to upset Clinton and win the presidential race, so the market's behavior seemed to confirm expectations. But then a funny thing happened — stocks came roaring back, almost immediately. Markets opened slightly down but quickly regained those losses and finished the day with gains of more than 1 percent as investors digested what Trump’s proposed infrastructure and tax policies would mean for the markets.
U.S. Stocks Slip From Records as Bonds Advance: Markets Wrap (Bloomberg)
U.S. stocks fluctuated near all-time highs after rising in nine of the past 10 days, while Treasuries advanced as investors awaited Federal Reserve meeting minutes for clues on the pace of tightening. The euro extended declines political risk in the region increased.
Higher dollar pressures gold, uncertainty offers support (Reuters)
Gold prices fell on Tuesday as renewed expectations of an increase in U.S. interest rates next month pushed the dollar higher, although political and economic uncertainties in Europe and the United States supported investor sentiment.
Institutional investors pull $469 billion from equities in 2016 – report (Reuters)
Institutional investors pulled $468.8 billion out of equities in 2016, a report by the research firm eVestment showed on Tuesday, notwithstanding a rally late in the year that drove stock markets to record highs.
China's Worst Bond Rout in a Decade Seen Worsening on Rules (Bloomberg)
The prospect of new rules in China on asset management products is sparking speculation that the worst corporate bond rout in a decade is about to get even worse.
Chinese new home prices continued to moderate in January.
According to China’s National Bureau of Statistics (NBS), prices rose by 0.2% in January, continuing the deceleration that began in the final quarter of last year.
Investors Are Charging Into Emerging Market ETFs (Bloomberg)
U.S. President Donald Trump has supported many policies that could harm emerging market economies. But investors are betting that his bark will turn out to be worse than his bite.
Inside the global elite’s bag of financial tricks (Market Watch)
Too much of economic growth and the accompanying bull market in stocks is the result of financial engineering. Increasingly, companies seek to improve earnings or increase their share price by means that are not necessarily directly linked to their actual business.
Mexico's Central Bank To Offer Peso Coverage Contracts (Associated Press)
Mexico's central bank says it will sell $20 billion in peso coverage contracts to cushion the risk of holding the country's currency.
Pot stocks rocket higher on Federal government announcement (Financial Review)
Shares in Australia's fledgling crop of pot stocks rocketed higher on Wednesday, following an announcement by the Federal Government aiming to boost cannabis supply and relax importation laws.
Supply of Affordable Homes Expected To Shrink (NBC News)
A growing number of Americans now find it increasingly difficult to achieve the dream of owning a home. Simply put, they can't afford the price or save enough money for the down payment.
Get Started: Small Business Optimism Surging, Surveys Show (Associated Press)
Small business owners' view of the economy is surging and giving them an incentive to hire.
That's the finding of surveys released last week by two advocacy groups, the National Small Business Association and the National Federation of Independent Business.
Why All Things Are NOT Equal Among REITs (Barron's)
The real possibility of a March interest rate hike continues to weigh on real estate investment trusts across the board. Last week the group lagged the S&P 500 by 1.7 percentage points.
US PMIs Tumble, Catch Down To 'Hard Data' Disappointment As "Post-Election Upturn Loses Momentum" (Zero Hedge)
Despite soaring 'soft' survey data from around the world, US manufacturing and services PMI printed disappointing drops in February – catching down to the 'hard' data declines since Trump's election.
Richard Breslow: "How Much Central Bank Money Has Poured Into The S&P 500?" (Richard Breslow, Zero Hedge)
With the U.S. back from the long weekend, the week can start in earnest. The rest must have done some people good, because the feel of the market is a bit punchy as we start out of the gate.
Companies
McDonald's Finds A Brilliant Way To Hit Starbucks And Millennial Coffee Culture (Right Where It Hurts)One of the secrets in getting away with looking like an idiot is, I find, knowing when you look like an idiot.
SodaStream Issues Recall of Potentially Exploding Bottles (Fortune)
The Consumer Product Safety Commission said Tuesday that thousands of SodaStream's carbonated bottles "can burst under pressure, posing an injury hazard to the user or bystanders." No one has yet been injured, according to the recall notice.
Gilead Goes to the Head of the Line (The Wall Street Journal)
A lack of deal activity at Gilead Sciences Inc. has lately frustrated shareholders. But company executives know a bargain when they see one.
Saudi Aramco Decides on $100B IPO Underwriters (Dow Jones Newswires)
Saudi Arabia's state-owned energy company has told J.P. Morgan, HSBC and Morgan Stanley they will be the lead underwriters for its planned initial public offering, set to be the largest ever, according to people familiar with the matter.
Big Newspapers Are Booming: 'Washington Post' To Add 60 Newsroom Jobs (NPR The Two Way)
After a year of record traffic and digital advertising revenue, the Post newsroom will grow by more than 8 percent, to more than 750 people. The extent of the newsroom expansion was first reported by Politico.
The Biggest Loser: Freeport-McMoRan Drops 5.2% (Barron's)
Freeport-McMoRan (FCX) fell to the bottom of the S&P 500 Tuesday, hurt by a downgrade from Deutsche Bank.
Hong Kong Disneyland reports a 2016 loss as visitor slump worsens (Los Angeles Times)
Two weeks after Walt Disney Co. launched a bailout of struggling Euro Disney, another international Disney resort revealed that its financial woes grew last year.
Technology
Toyota and Shell could build 7 hydrogen refueling stations in California (ArsTechnica)
Toyota and Shell will likely build seven hydrogen refueling stations around California if the state’s Energy Commission approves a proposed $16.4 million in grants.
Toyota just teased a new electric concept car ahead of the Geneva Motor Show (Business Insider)
The Geneva Motor Show is rapidly approaching and Toyota already gave us a glimpse of what it plans to show.
Toyota released a teaser photo of a brand new electric vehicle concept, the i-TRIL concept, on Monday. Toyota said the concept is meant to showcase the automaker's research into "more engaging environmentally-friendly mobility solutions" in a press release.
In Irish tax appeal, Apple accuses European Commission of ‘fundamental errors,’ makes 14 objections (9To5Mac)
The European Courts of Justice has now published Apple’s appeal against a European Commission ruling that it must pay Ireland €13B ($13.7B) in underpaid tax. Apple accuses the EC of ‘fundamental errors’ in its interpretation of the facts and lays out no fewer than 14 different objections.
A look at Tesla Powerwall ownership after 1 year as second generation is coming: 92% savings on utility billWe reported on Nick Pfitzner just over a year ago when he became one of the first people to have a Tesla Powerwall in Australia. After now over a year of ownership, Nick shared his experience just as a lot more people are considering installing home energy storage now that the market expanded with new products, including the upcoming Tesla Powerwall 2.
Chat Bots Are Winning Over Social Media Users (Report) (Adweek)
There are many approaches to social media marketing, but most rely on one-way communication, with brands and businesses blasting out messages, promoted or otherwise, hoping to reach their target audience.
This robot butler follows you around and carries your stuff (TNW)
Piaggio – the company behind the Vespa scooter – created “Gita,” a ball-shaped blue robot whose name means “short journey.” Piaggio says that Gita rolls after its owner on two wheels at speeds up to 22 mph, and carries items up to 40 lbs.
Politics
Trump Team Fosters Fears He'll Adopt Alternative Economic Facts (Bloomberg)
President Donald Trump complains regularly about what he calls “fake news.” What’s got some statisticians worried, though, is the risk of doctored economic data coming from the administration itself.
Pence tries for damage control abroad but allies still wary (CNN)
As Vice President Mike Pence darted from meeting to meeting this weekend in Europe, one phrase was on repeat.
"The President sends greetings," he told European High Representative Federica Mogherini over breakfast in the dining room of the US ambassador to the EU.
People Are Faxing Their Senators Up To 300 Times An Hour (FiveThirtyEight)
On Feb. 1, Alaska Sen. Lisa Murkowski and Maine Sen. Susan Collins gave back-to-back speeches on the Senate floor stating their intention to vote against the confirmation of Betsy DeVos as secretary of education.
Judge Blocks Medicaid Cuts to Planned Parenthood in Texas (NY Times)
A federal judge on Tuesday temporarily blocked Texas from cutting off Medicaid funding to Planned Parenthood, ruling the state had presented no credible evidence to support claims the organization violated medical or ethical standards related to abortion procedures.
Health and Biotech
New patient group focuses on drug prices amid bipartisan concern (USA Today)
A new patient advocacy group launches Wednesday that distinguishes itself by focusing only on drug prices and eschewing money from the pharmaceutical industry at a time when drug makers are pouring millions into a campaign fighting efforts to regulate them.
Life on the Home Planet
SpaceX just flew a rocket back to Cape Canaveral Air Force Station — and the footage is epic (Business Insider)
On Saturday, Feb. 18, SpaceX launched one of its Falcon 9 rockets on a cargo resupply mission to the International Space Station. Lift off took place out of Launch Complex 39A at Kennedy Space Center in Florida — the first time anything has launched from this pad since NASA's Space Shuttle Atlantis in July, 2011.
Satellites expose the biggest hotspots of illegal transshipping (Business Insider)
Satellite watchers have identified thousands of suspected incidents of illegal transshipping, where fishing ships secretly transfer unauthorized product to refrigerated cargo vessels. It is seen as a major factor in the prevalence of illegal fishing, which is thought to account for at least 20% of seafood worldwide.
Lakers, in Shake-Up, Hand Reins to Magic Johnson (NY Times)
In a momentous organizational shake-up, the Los Angeles Lakers fired General Manager Mitch Kupchak on Tuesday and put Magic Johnson, one of the greatest players in N.B.A. history, in charge of the team’s front office as its president for basketball operations.
What Do Teen Influencers Watch on YouTube? (eMarketer)
An October 2016 Influenster survey, which polled US influencers who are heavy users of at least two social networks, found that 93% of respondents ages 14 to 18 watch product reviews on YouTube, compared to 86% of overall influencers.
Dramatic Satellite Images Show the Oroville Dam From Drought to Overflow (Gizmodo)
This past weekend, hundreds of thousands of people were evacuated in anticipation of a potential spillway failure at the Oroville dam. Images from space show what the area in northern California looked like during last year’s drought, and how it appeared after a spate of intense rain, at the height of the recent breach scare.
Life expectancy study shows many likely to live beyond 90 by 2030 (The Telegraph)
Average life expectancy will rise in many countries by 2030, breaking through 90 years in some places, and policymakers need to make more efforts to plan for it, according to a large international study.
