Financial Markets and Economy
Monday, March 6 was a historic day of sorts. At least for those in financial markets.
It was the day that the current bull market in US stocks began, born out of the depths of despair of the global financial crisis.
Merkel champions free trade for EU (Reuters)
The European Union needs policies that are based on free trade and the bloc must pursue deals with other countries to ensure it does not become isolated, German Chancellor Angela Merkel told the German parliament on Thursday before an EU leaders summit.
European Central Bank Meeting Could Be Turning Point (NY Times)
The European Central Bank will announce the results of its regular monetary policy meeting Thursday at 1:45 p.m. Frankfurt time. Mario Draghi, the president of the bank, will answer questions at a news conference at 2:30 p.m.
ECB to Sit Tight Ahead of High-Risk Elections (Reuters)
The European Central Bank is set to keep monetary policy on hold on Thursday as it casts a nervous eye ahead to high-risk elections in France and the Netherlands during an upsurge in populist sentiment that threatens to derail the recovery.
World Stocks Sink As Cride Slump Sends Energy Shares Lower (Associated Press)
World stock markets fell Thursday after news of a big buildup in U.S. oil stockpiles depressed crude prices and shares of energy companies.
European Central Bank Meeting Could Be Turning Point (NY Times)
The European Central Bank will announce the results of its regular monetary policy meeting Thursday at 1:45 p.m. Frankfurt time. Mario Draghi, the president of the bank, will answer questions at a news conference at 2:30 p.m.
Beijing's Still Years Away From Blue Skies (Bloomberg)
As Chinese Premier Li Keqiang welcomed delegates to Beijing for the annual meeting of the legislature this week, he vowed to "make our skies blue again," raising hopes for residents who started the year under a blanket of smog and have wheezed through periodic bouts of pollution since then.
ECB Inflation Outlook Set to Keep Bar High for Stimulus End (Bloomberg)
The ECB president essentially preempted Thursday’s monetary-policy decision back in December, when he announced that bond purchases will be extended until at least the end of 2017.
Shale Billionaire Hamm Says Industry Binge Can ‘Kill’ Oil Market (Bloomberg)
Harold Hamm, the billionaire shale oilman, said the U.S. industry could "kill" the oil market if it embarks into another spending binge, a rare warning in a business focused on fast growth to compete with OPEC.
China’s Newest Economic Data Don’t Add Up (The Wall Street Journal)
For the second day running, China data have economists scratching their heads.
Draghi Caution on Inflation Signals Stimulus Stays for Now (Bloomberg)
Mario Draghi has left little doubt that he’s not ready to accept euro-area inflation has truly returned, and a closer look at data from the 19-nation region helps explain his hesitation.
OPEC's Houston Huddle Deepens Oil Cuts Dilemma (Bloomberg)
OPEC ministers met with partners and rivals in Houston this week as they try to figure out whether to prolong production cuts. That decision only got harder.
It’s not been a good session for crude oil prices, and that’s putting it mildly.
They’ve copped a shellacking, undermined by the combination of another enormous inventory build in the US, renewed US dollar strength and near record-long positioning among speculative traders.
China Plans Stricter Bank Capital Rules to Contain Risks (Bloomberg)
China’s central bank plans to apply a stricter method for assessing banks’ capital as part of efforts to contain financial-sector risks, people with knowledge of the matter said.
Is the Fed Behind on Tightening? Watch This Inflation Indicator (Bloomberg)
With investors already banking on the Federal Reserve lifting interest rates next week, attention has shifted to whether the central bank has fallen behind in its quest to keep inflation from rising too quickly.
An Economic Perfect Storm Is Causing Oil Prices to Drop to New Lows (NBC News)
A lack of cohesion among OPEC members, oil ministers predicting a fall in prices at a conference last week, the sudden growth of U.S. crude oil stockpiles and production and seasonal maintenance on United States oil refineries that will limit activity have all contributed to the sudden drop, experts say.
Brazil Tumbles Deeper Into Its Worst Depression (NBC News)
Brazil's economy has fallen further into its worst ever recession, contracting by 3.6 percent in 2016 and pressure is mounting on policymakers to stimulate growth.
Bill Gross's Bond Bear Market Looms as 10-Year Yield Nears 2.6% (Bloomberg)
To Bill Gross, the bear is about to roar in the $13.9 trillion Treasuries market.
White House Overly Downbeat About Budgeteers (Associated Press)
President Donald Trump's spokesman went out of his way to cast doubt on Congress' budget experts, perhaps anticipating disappointing results from a coming cost analysis of a Trump-backed plan to "repeal and replace" former President Barack Obama's health care law. Too far out of his way.
Oil plummets more than 5% as crude stockpiles, production climb (Reuters)
Oil prices plunged 5 percent to their lowest levels this year on Wednesday as U.S. crude inventories surged much more than expected to a record high, stoking concerns a global glut could persist even as OPEC tries to prop up prices with output curbs.
Crude Oil Prices Tank, Long Oil Thesis Full Of Holes (Robert Boslego, Seeking Alpha)
The speech by Saudi Energy Minister Khalid Al-Falih yesterday combined with soaring crude imports from Saudi Arabia and record crude oil stocks in the U.S. put a spike in the bullish case for those expecting $60 to $80 oil in 2017, based on "irrational exuberance or wishful thinking."
Gas supply shortages in Australia looming (DW Made For Minds)
Australian energy regulators say they're worried about possible gas supply shortages as of next year, with electricity blackouts likely to haunt the nation. Politicians have warned the problem is home-made.
Manhattan Rents Fall for Every Apartment Size, Even Studios (Bloomberg)
Rents fell last month for Manhattan apartments of all sizes, the first across-the-board price decline in at least four years, as a construction boom brought more buildings to market and allowed some tenants to leave for bigger or newer units.
China’s Consumer Inflation Hits a Low Point (The Wall Street Journal)
Prices in China rose less than expected in February as demand for food eased after the Lunar New Year holiday, the third piece of Chinese data that raised eyebrows this week.
Gold Suffers Worst Run Since October as Slide Below $1,200 Looms (Bloomberg)
Gold’s feeling the strain. Bullion’s being tugged back down toward $1,200 an ounce in the worst losing run since October as positive U.S. economic data reinforce expectations that interest rates will probably be raised several times this year, starting with a hike next week.
America May Be the World's Biggest LNG Supplier in Two Decades (Bloomberg)
By 2035, the U.S. may have surpassed Australia and Qatar to become the world’s biggest supplier of liquefied natural gas, according to the chief executive officers of Canadian energy giant Enbridge Inc. and LNG exporter Tellurian Inc.
Wind Power Blows Through Nuclear, Coal as Costs Drop at Sea (Bloomberg)
Water tends to corrode and short out circuits. So what’s happening in the the renewable energy industry, where developers are putting jumbo-jet sized wind turbines into stormy seas, is at the very least an engineering miracle.
Trump adviser Carl Icahn is betting against the Trump rally (CNN)
Carl Icahn is such a fan of President Trump that on election night he literally left the victory party early to buy stocks that were crashing in the overnight markets.
Confident Collectors Heat Up London Auctions (The Wall Street Journal)
The tepid art market appears to be heating up, spurred by a successful series of winter auctions in London that suggests collectors are starting to feel more confident about art values.
Here's how gold can get to $10,000 (The Daily Reckoning)
I’m very impressed with the recent gold action because it’s holding its own in the face of an impending rate hike. It’s fallen off a bit, but not dramatically. It tells you there are good fundamentals behind it, independent of the threat of a stronger dollar.
Fed Hikes And Stock Market Returns (Charlie Bilellio, Seeking Alpha)
Market participants are expecting the third Fed rate hike since December 2015 at next week's FOMC meeting. This is a move up in expectations from the start of the year, when market participants were saying no hike would occur until June.
Are We Witnessing The Weirdest Moment In Economic History? (Alt-Market.com)
It is an unfortunate reality that most people tend to be oblivious to massive sea changes in geopolitics and economics. You would think that these events would catch the immediate attention of everyone as they happen, but usually it is not until they realize that the microcosm of their personal lives is subject to the consequences of the macrocosm that they wake up and take notice.
Why there's a statue of a fearless girl facing Wall Street's 'Charging Bull' (Los Angeles Times)
Wall Street visitors and tourists will notice a new addition if they're walking down Broadway in New York this week. About 20 feet across from the famous Charging Bull statue — a symbol of Wall Street's strength and might that has loomed over the street since 1989 — a bronze statue of a girl stands facing it, hands on hips, a defiant expression on her face.
One of Bitcoin's Big Funds is Selling Ahead of the ETF Decision (Coin Desk)
While bitcoin prices have edged up sharply ahead of the SEC's upcoming decision on the long-in-the-works Winklevoss Bitcoin ETF, at least one major hedge fund is selling off into the rally.
Are Central Banks Losing Control? (Of Two Minds)
If you want a central banker to choke on his croissant, read him this quote from socio-historian Immanuel Wallerstein: "Countries (have lost the ability) to control what happens to them in the ongoing life of the modern world-system."
Republicans Give Rich Investors a Tax Break in Obamacare Revamp (Bloomberg)
House Republicans have a plan to remake the U.S. health-care system—with a perk for wealthy investors.
Draghi set to defend ECB easy money stance ahead of G20 meeting (Dpa-International)
European Central Bank chief Mario Draghi is set to defend the ECB's ultra-loose monetary policy on Thursday ahead of a key meeting next week of the world's leading finance ministers and central bankers in Germany.
Fed Ripples? Yuan Tumbles To 2017 Lows As Chinese Money Market Liquidity Dries Up (Again) (Zero Hedge)
In what could be the beginning of ripples from The Fed's jawboned 'certainty' of a March rate-hike, Chinese money market liquidity conditions appear to be drying up once again as overnight offshore yuan rates surge 142bps to one-month highs.
Companies
Shell Sells Interest In Canadian Oil Sands For $7.25 Billion (Associated Press)
Royal Dutch Shell has agreed to sell most of its interests in Canadian oil sands in two deals that will net $7.25 billion for the Anglo-Dutch company as it adjusts to a period of lower energy prices.
Radioshack Files For Bankruptcy For Second Time In 2 Years (Associated Press)
Troubled electronics retailer RadioShack has filed for bankruptcy for the second time in just over two years. The Fort Worth, Texas-based retailer filed its petition in bankruptcy court in Delaware on Wednesday.
The heir to the Samsung empire denies all charges against him as the 'trial of the century' begins (Reuters)
The head of South Korea's Samsung Group, Jay Y. Lee, denies all charges against him, his lawyer said on Thursday, at the start of what the special prosecutor said could be the "trial of the century" amid a political scandal that has rocked the country.
Toshiba's Westinghouse brings in bankruptcy lawyers; disclosure deadlines loom (Reuters)
U.S. nuclear firm Westinghouse Electric Co LLC has hired bankruptcy attorneys, in a sign that owner Toshiba Corp (6502.T) is more seriously weighing a Chapter 11 filing as an option to help it rein in a multibillion dollar financial maelstrom.
An activist investor just slammed Buffalo Wild Wings for the 2nd time in 2 weeks — here's the full presentation (Business Insider)
For the second time in two weeks, Buffalo Wild Wings has been publicly slammed by the activist investor Marcato Capital Management.
Emirates Airline Bookings Plunge 35% After Trump Travel Ban (The Wall Street Journal)
Emirates Airline President Tim Clark said Thursday that the original travel ban imposed by U.S. President Donald Trump caused the pace of bookings at the giant Middle East airline to plummet 35%.
Boeing, Lockheed Martin Win in Half-Trillion Dollar Defense Bill (Bloomberg)
Boeing Co. would get the money to build more Super Hornet fighters than the Pentagon requested while Lockheed Martin Corp. would receive a boost for the Joint Strike Fighter as part of a military spending bill worth more than a half-trillion dollars.
Tesla Profits Still Stuck in Traffic (The Wall Street Journal)
What’s another year between friends? Analysts at updated their outlook on Tesla in a report published Wednesday morning. They kept the stock’s overweight rating and price target of $305 a share intact. Profit projections, however, got a bit of a makeover.
Discount Business Class? Thank JetBlue (The Wall Street Journal)
A lie-flat bed on a long flight used to be the ultimate perk, something fliers would pay up for.
Now it’s a discount luxury.
Technology
Some Amazon Echo owners have complained that Alexa — the voice-controlled virtual assistant that sits inside the smart-home device — wasn't responding to them.
Mercedes Is Making the World’s Most Expensive SUV (Bloomberg)
“This car meets the highest demands for luxury and yet still has all the elements that make the G-Class a real off-roader,” said Gunner Guethenke, who heads Mercedes’s SUV business. Customers who buy the marque’s G-Class — the segment is named for Gelaendewagen, the German term for all-terrain vehicles — are looking for something “unique,” he said.
SXSW Interactive 2017: Artificial intelligence, smart cities will be major themes this year (Salon)
When it was founded 31 years ago, South by Southwest was easier to define: It was an annual musical showcase linking up-and-coming recording artists with industry executives in Austin, Texas, a city known for its vibrant music scene, cultural eccentricity and barbecue.
Atomic Hard Drive: IBM Researchers Store Single Bit Of Data On World's Smallest Magnet — One Atom Of Holmium (International Business Times)
There’s only so much data that can be stored on silicon-based integrated circuits (as predicted by the so-called “Moore’s law”). That is why, computer scientists have — especially over the past decade — been experimenting with viable alternatives such as synthetic-DNA based systems and quantum computers.
Burger-flipping robot could spell the end of teen employment (The Next Web)
The AI-driven robot ‘Flippy,’ by Miso Robotics, is marketed as a kitchen assistant, rather than a replacement for professionally-trained teens that ponder the meaning of life — or what their crush looks like naked — while awaiting a kitchen timer’s signal that it’s time to flip the meat.
Most Russians don't know pirating is illegal, says survey (CNet)
Move over Australia, you're not the only notorious pirates around here.
A recent Irdeto survey found that unlike other countries, Russia continues to be one where video piracy remains high, and the Russians simply don't care that it affects the media industry's bottom line.
The 'robot lawyer’ giving free legal advice to refugees (BBC News)
When Joshua Browder developed DoNotPay he called it "the world's first robot lawyer". It's a chatbot – a computer program that carries out conversations through texts or vocal commands – and it uses Facebook Messenger to gather information about a case before spitting out advice and legal documents.
Eric Schmidt: ‘Big data is so powerful, nation states will fight’ over it (Recode)
The message from Alphabet Executive Chairman Eric Schmidt during a keynote highlighting the additions at the annual Google Cloud Next conference was that Google Cloud Platform, the smallest of three leading cloud providers, has matured.
Politics
Former Trump Aide Flynn Says Lobbying May Have Helped Turkey (Associated Press)
President Donald Trump's former national security adviser, Michael Flynn, who was fired from his prominent White House job last month, has registered with the Justice Department as a foreign agent for $530,000 worth of lobbying work before Election Day that may have aided the Turkish government.
Wall Street Spent $2 Billion Trying to Influence the 2016 Election (Fortune)
Banks, trade associations, and other related financial interests spent $2 billion on trying to influence federal elections during the 2015-2016 election cycle, according to Americans for Financial Reform’s Wall Street Money in Washington report, released Wednesday.
NYT columnist calls Trump a pathological liar (CNN)
President Trump claims that former President Obama wiretapped his Manhattan headquarters last year but has shown no evidence. CNN Tonight panel analyzes Trump's rhetoric.
How Trump's Keystone XL Story Fell Apart (Associated Press)
Twice in the last month, President Donald Trump has told a story about how he'd come up with an idea to require the use of U.S.-made steel and pipes while preparing to sign orders to advance the stalled Keystone XL and Dakota Access oil pipelines.
The Entire Senate Wants President Trump to Act on Threats Against Jewish Centers (TIME)
In a show of bipartisan unity, all 100 members of the U.S. Senate signed a letter Tuesday to high-ranking officials in the Trump administration, urging them to address the increasing number of bomb threats against Jewish schools and organizations in recent weeks.
Experts: The GOP Health Care Plan Just Won’t Work (NBC News)
They rarely agree on much, but health care experts on the left, right and center of the political spectrum have found consensus on the House GOP's Obamacare replacement: It won't work.
Trump budget director Mick Mulvaney: Insurance coverage isn’t “the end goal” of health care reform (Salon)
Considering that Mick Mulvaney, the former congressman appointed by President Donald Trump as director of the Office of Management and Budget, has a long history of opposing Medicare, it is perhaps unsurprising that he’s arguing against the notion that a replacement for the Affordable Care Act should be judged on the number of people it insures.
No Wonder the Republicans Hid the Health Bill (NY Times)
Republican House leaders have spent months dodging questions about how they would replace the Affordable Care Act with a better law, and went so far as to hide the draft of their plan from other lawmakers. No wonder.
Since the election of Donald Trump in November, there have been almost 1,000 reported hate crimes targeting Muslims, Arabs, African-Americans, Latinos and other people of color. At this same moment, there have been terrorist threats against Jewish synagogues and community centers as well as the vandalizing of Jewish cemeteries.
Sean Spicer’s alternative Obamacare facts (Think Progress)
The health care bill that House Republicans introduced this week, which President Trump has been endorsed, would cause millions of people to lose their health coverage.
The GOP Still Hasn't Figured Out Health Care (CC)
After years of trying to repeal and replace the Affordable Care Act, Congressional Republicans roll out a contentious health care bill of their own.
Trump wants to “zero out” EPA programs (Climate Central)
The Trump administration wants to “zero out” many climate-related programs and grants that help state and local governments enforce environmental laws, according to a memo sent this week to state governments by the National Association of Clean Air Agencies.
Whitewater, Benghazi — now Obamagate? Echoes of fake GOP scandals from the past (Salon)
You have to feel a little bit sorry for Sean Spicer. Being the spokesman for an unbalanced man with a bad temper and an early morning Twitter habit is a tough job.
China grants Trump 38 trademarks, reopening debate about conflicts of interest (The Washington Post)
China has granted preliminary approval for at least 38 Trump trademarks for businesses ranging from hotels and spas to animal training and weather forecasting, reopening a debate about the potential for conflicts of interest under his presidency.
?The Truth About the GOP Health-Care Plan (The Nation)
?Pesident Trump’s effort to repeal the Affordable Care Act has stalled. Despite the GOP’s big promises to “repeal and replace” Barack Obama’s signature legislation within weeks of taking office, Republicans have already blown their first deadline.
Doctors, hospitals and insurers oppose Republican health plan (The Washington Post)
Major associations representing physicians, hospitals, insurers and seniors all leveled sharp attacks against the House GOP’s plan to rewrite the Affordable Care Act on Wednesday, as some Republicans publicly questioned whether the measure can clear the House of Representatives.
Life on the Home Planet
The 5 Biases Pushing Women Out of STEM (Harvard Business Review)
By now, we’ve all heard about the low numbers of American women in science, technology, engineering, and math (STEM). Some argue it’s a pipeline issue – that if we can interest more young girls in STEM subjects, the issue will resolve itself over time.
How to Keep Your Team Focused and Productive During Uncertain Times (Harvard Business Review)
Uncertainty is uncomfortable for everyone. Whether it’s political turmoil or a reorganization at your company, employees who are concerned about their future are likely to be distracted and unproductive.
Dry Conditions Spark Wildfires, Parch Wheat Across Central U.S. (Bloomberg)
Spring warmth and dry conditions came early to the central U.S. leaving emerging crops thirsty for rain and touching off fires across the region.
The Science Has Spoken: Pluto Will Never Be A Planet Again (Forbes)
Practically everyone alive today grew up learning some way of remembering the nine planets of our Solar System in order: Mercury, Venus, Earth, Mars, Jupiter, Saturn, Uranus, Neptune and Pluto.
How Successful People Stay Calm (Forbes)
The ability to manage your emotions and remain calm under pressure has a direct link to your performance. TalentSmart has conducted research with more than a million people, and we’ve found that 90% of top performers are skilled at managing their emotions in times of stress in order to remain calm and in control.
