Financial Markets and Economy
These Charts Show Alarm Bells Ringing on the Trump Trade (Bloomberg)
Investors on Monday further unwound trades initiated in November resting on the idea that the election of Donald Trump and a Republican Congress meant smooth passage of an agenda that featured business-friendly tax cuts and regulatory changes.
U.S. equity futures at six-week low after Trump healthcare setback (Reuters)
U.S. equity index futures fell to a six-week low on Sunday in a sign Wall Street would start the week defensively after Republicans pulled legislation to overhaul the U.S. healthcare system in a stunning setback for President Donald Trump.
Seeing how the highest and lowest-earners spend their money will make you think differently about 'rich' vs 'poor' (Business Insider)
On average, Americans spend the bulk of their money in three areas: housing, transportation, and food.
But the picture looks a bit different if you compare the country's lowest earners with the highest. While household spending is similar in some areas, low-income Americans spend a significantly larger proportion of their money on housing, while high-income Americans spend a much higher proportion on insurance and retirement expenses.
European Banks Book $27 Billion Profit in Tax Havens, Oxfam Says (Bloomberg)
Europe’s largest banks routed 25 billion euros ($27 billion) through tax havens in 2015, about a quarter of their profit, amid an international crackdown on corporate tax avoidance, according to a report by Oxfam International.
There's a civil war in the bitcoin community over the digital currency's future.
Developers, miners, and other stakeholders are locked in a heated debate over how best to scale the network, with chances steadily rising of irreconcilable differences causing a so-called "hard fork" that would split Bitcoin in two.
Dow Poised for Longest Losing Streak Since 2011 (The Wall Street Journal)
Stocks around the world fell Monday, putting the Dow Jones Industrial Average on track for its longest losing streak since 2011 as doubts about the Trump administration’s ability to push through on campaign promises percolated through global markets.
A Correction Now Might Not Be So Bad, Some Investors Say (The Wall Street Journal)
Investors don’t typically root for stocks to fall, but some now think a period of declines might be healthy.
Many investors and analysts fear a postelection rally that has driven the S&P 500 up roughly 10% has cleaved share prices from the underlying fundamentals that tend to drive gains over time, such as interest rates and corporate earnings.
Trump slump: dollar, shares skid on reflation trade doubts (Reuters)
The dollar and share prices tumbled on Monday, as investors worried that U.S. President Donald Trump's defeat over healthcare reform foreshadowed difficulties delivering other key campaign promises, in particular fiscal stimulus.
China Tanked Oil Once, It Can Do It Again (The Wall Street Journal)
China has a knack for putting stars in commodity executives’ eyes, and then knocking them out.
With oil once again under pressure—global benchmark Brent is down 10% since the beginning of March—investors are firmly focused on buoyant U.S. supply as the main risk factor for further declines. But as with a few years ago, it is weaker demand from China that could deliver a punch to staggering oil markets.
What It Takes to Truly Be ‘One of Us’ (Pew Research Center)
The tide of people moving across the world, be they immigrants or refugees, has sparked concern in Australia, Europe and the United States. In particular, the ethnic, linguistic and cultural background of migrants has triggered intense debates over the benefits and the costs of growing diversity and the risk of open borders to national identity.
Oil Drops as Producers Say They Need More Time to Cut Stockpiles (Bloomberg)
Oil fell as a pledge by OPEC-led producers to consider extending their output-cut deal failed to excite traders concerned that more time is needed to trim global stockpiles.
Credit bureau Experian fined $3 million over misleading credit scores (Chicago Tribune)
Credit bureau Experian will pay a $3-million fine to settle a federal regulator’s claims that the firm sold credit scores that were of little or no use to consumers.
Global Economy Week Ahead: Yellen Speech, Eurozone Inflation, China PMI (The Wall Street Journal)
The week ahead will feature a speech from Federal Reserve Chairwoman Janet Yellen and bring data from around the globe, including a first look at the February U.S. trade deficit, eurozone inflation, and reports on Chinese manufacturing and Japanese industrial production.
In Rare Move, Chinese Think Tank Criticizes Tepid Pace of Reform (NY Times)
China’s ambitious plan to revamp its economy has bogged down. Flabby state conglomerates have thwarted attempts to whip them into commercial shape. Rules that treat millions of city-dwelling rural migrants like second-class citizens have barely budged.
Is Bankruptcy for States Illinois’ Answer? A Primer. – Wirepoints Original (WirePoints)
Could a formal bankruptcy proceeding for the State of Illinois be the answer to it’s fiscal crisis? If you think that’s out of the question, as many do, you’re wrong. On the contrary, though Congress isn’t working on it now, the option is quite viable, though subject to obstacles and open issues.
If you've been following the news lately, you may have heard that for the second time in three months, the Federal Reserve increased its benchmark interest rate by a quarter point.
Jing-Jin-Ji: China Planning Megalopolis the Size of New England (NBC News)
China's rulers are planning a megacity that would be home to 130 million people and cover an area the size of New England.
Sitting on the northeast coast of China, Jing-Jin-Ji — which stands for "Beijing-Tianjin-Hebei" — is a central plank of the country's economic development plan over the next century.
$10 Trillion Missing From Pentagon And No One — Not Even The DOD — Knows Where It Is (Blacklisted News)
Over a mere two decades, the Pentagon lost track of a mind-numbing $10 trillion — that’s trillion, with a fat, taxpayer-funded “T” — and no one, not even the Department of Defense, really knows where it went or on what it was spent.
Stocks, Dollar Tumble As Gold Tops $1250; Dead Bill Bounce Dies (Zero Hedge)
It appears the false narrative of the failed healthcare reform bill being somehow great news for stocks has been eviscerated in early Asia trading. The dollar has tumbled to its lowest since Nov 10th, Gold has ripped back above $1250, and S&P futures have plunged to 6 week lows.
Australia braces for 'absolutely huge' Cyclone Debbie (DW Made For Minds)
Some defiant residents have vowed to stay at home as Queensland braces for its the biggest cyclone in five years. Winds could reach 240 kilometers per hour and the tide could swell two and half meters above normal.
Bond Bears Panic, Cover Shorts At Fastest Pace Since Brexit; But Rate-Hike Bets Top $3 Trillion (Zero Hedge)
Last week saw the largest drop in aggregate Treasury short positions since Brexit. Ironicaly, while bond bears felt the squeeze, traders piled into Eurodollar shorts (increased rate-hike bets) sending the short-end's positioning to record highs.
On The Edge Of An "Uncontrollable Liquidity Event": The Definitive Guide To China's Financial System (Zero Hedge)
While most traders over the past month have been obsessing over developments in Washington, the real action – most of it under the radar – has played out in China, where as discussed over the past few weeks, domestic liquidity has tightened notably, culminating with an unexpected bailout by the PBOC of various smaller banks who defaulted on their interbank loans as interest rates, particularly on Certificates of Deposit (CD) – which have become a preferred funding conduit for many Chinese banks – but not only, spiked.
Technology
Tesla to take orders for solar roof tiles starting April (Reuters)
Tesla Motors Inc (TSLA.O) will start taking orders for its solar roof tiles in April, Chief Executive Elon Musk said in a Tweet on Friday.
Intel Beefs Up Its Plans For Artificial Intelligence (Inquisitr)
The world will soon be banking on Artificial Intelligence (AI). This means sectors like manufacturing, education, and tech will soon be relying on machine intelligence to get the job done.
Like always, Intel is following in the footsteps of other tech giants like Apple and Google to stay ahead in the AI game.
Uber Suspends Tests of Self-Driving Vehicles After Arizona Crash (NY Times)
Uber said on Saturday that it was suspending the testing of its self-driving vehicles, a day after one of the vehicles was involved in a collision in Tempe, Ariz.
More Galaxy S8 leaks show off the phone from every angle, reveal new details (9To5 Google)
First and foremost, we have several new, hands-on images of the Galaxy S8+ courtesy of AndroidMX (since retracted via Samsung request). The new shots show off a variant fo the phone destined for Mexico and give us a clear look at Samsung’s software, some of the various features, and a look at the camera interface.
Amazon Wants to Crush Your Store With Its Technology Might (NY Times)
Last Sunday in Palm Springs, Calif., Jeffrey P. Bezos, the chief executive of Amazon, climbed into the cockpit of a 13-foot robot and began flailing his arms as though warming up for a workout, causing the robot’s enormous appendages to mimic his movements.
Elon Musk's Billion-Dollar Crusade To Stop The A.I Apocalypse (Vanity Fair Hive)
Elon Musk is famous for his futuristic gambles, but Silicon Valley’s latest rush to embrace artificial intelligence scares him. And he thinks you should be frightened too. Inside his efforts to influence the rapidly advancing field and its proponents, and to save humanity from machine-learning overlords.
Politics
A few days before the American Health Care Act, the Republican replacement bill for the Affordable Care Act, was pulled from the floor of the House of Representatives, House Republicans had a sharp rebuke for chief White House strategist Steve Bannon when he met with them at the White House, according to a report from Axios.
GOP Struggles To Govern Despite A Monopoly In Washington (Asssociated Press)
The unmitigated failure of the GOP bill to replace Obamacare underscored that Republicans are a party of upstart firebrands, old-guard conservatives and moderates in Democratic-leaning districts. Despite the GOP monopoly on Washington, they are pitted against one another and struggling for a way to govern.
Priebus: Trump will seek Democratic support on health care (Politico)
White House Chief of Staff Reince Priebus said Sunday that President Donald Trump’s administration would seek support from moderate Democrats going forward in the ongoing efforts to repeal and replace the Affordable Care Act.
Trump's Border-Wall Proposal Faces Many Obstacles (Associated Press)
President Donald Trump has now laid out exactly what he wants in the "big, beautiful wall" that he's promised to build on the U.S.-Mexico border. But his effort to build a huge hurdle to those entering the U.S. illegally faces impediments of its own.
Conspiracy Theorist Alex Jones Apologizes For Promoting 'Pizzagate' (NPR)
Longtime conspiracy theorist and propagator Alex Jones has apologized to the Washington, D.C. pizzeria Comet Ping Pong and its owner James Alefantis for his show's role in promoting the false "pizzagate" conspiracy theory involving a child sex-abuse ring.
Merkel’s Party Shows It Won’t Be Beaten Easily (Bloomberg)
Angela Merkel’s election victory in Saarland state delivered a reality check in this year’s contest for the chancellery, underscoring the challenge facing the Social Democratic Party trying to deny her a fourth term.
Meet the man who may end gerrymandering: A retired Wisconsin law professor’s Supreme Court case could save democracyGerrymandering, the process of drawing distorted legislative districts to undermine democracy, is as old as our republic itself. Just as ancient: the Supreme Court’s unwillingness to get involved and determine a standard for when a partisan gerrymander has gone too far.
Dealt a Defeat, Republicans Set Their Sights on Major Tax Cuts (NY Times)
Picking themselves up after the bruising collapse of their health care plan, President Trump and Republicans in Congress will start this week on a legislative obstacle course that will be even more arduous: the first overhaul of the tax code in three decades.
Sen. Graham Faces Raucous Town Hall The Day After GOP Fails To Repeal Obamacare (NPR)
The public meeting came the day after Republicans failed to repeal the Affordable Care Act, or Obamacare. "The process was not what I wanted it to be," he said, adding that he thinks Obamacare is a disaster and is going to collapse. And he doesn't think one party is going to be able to fix it alone.
Health and Biotech
Every child with cancer to have tumour DNA sequenced to find best treatment (The Telegraph)
Every child with cancer in Britain will have their tumour DNA sequenced so they can get the best possible drugs and help the UK catch up with treatment in Europe and the US.
