Financial Markets and Economy
Fear Is Creeping Back Into Markets (Bloomberg)
The calm in stocks worldwide is giving way to concern, with investors in Europe and the U.S. rushing to hedge against declines and a Credit Suisse Group AG index flashing a warning as the list of economic and political obstacles grows.
BOJ's Kuroda says weak yen may quicken achievement of inflation goal (Reuters)
Bank of Japan Governor Haruhiko Kuroda said on Wednesday further yen declines may help the central bank achieve its 2 percent inflation target more quickly, even as geopolitical tensions lifted the Japanese currency to a five-month high against the dollar.
The Daily Prophet: Red Flags Keep Popping Up in the Stock Market (Bloomberg)
Remember when all investors had to worry about were sky high stock valuations and complacency? Those were the good old days of last month. Now, it seems that almost everywhere you look there are signs that equities are on shaky ground.
Wall Street Rout: Indexes Beat Stockpickers 92% of the Time (The Wall Street Journal)
Active mutual-fund managers say you can’t judge their performance against passive benchmarks over short time periods. Is a decade and a half long enough?
ExxonMobil last week announced its third successful oil find offshore Guyana – the tiny Latin American country squeezed between Venezuela and Suriname.
German Solar Business Climate Rises Most Since 2010, Survey Says (Bloomberg)
Germany’s solar industry’s business climate improved the most this decade as consumers increase purchases of cheaper rooftop systems and batteries, a quarterly survey shows.
Oil Stocks Rose in First Quarter Despite OPEC Cut, IEA Says (Bloomberg)
Global oil inventories probably increased in the first quarter despite OPEC’s near-perfect implementation of production cuts aimed at clearing the surplus, the International Energy Agency said.
Cryptocurrency Boom Predicted By Bitcoin Market Data CEO Confirmed, Trend 'Set To Continue' (Forbes)
Where’s the cryptocurrency market heading? Well, a prediction made in January over a boom in market capitalization of cryptocurrencies – and particularly in the altcoin market – by the founder of a crypto-market intelligence start-up that raised over 10,000 Ethereum (ETH) in a pre-sale financing round, has fully come to pass.
U.K. Royal Mint's Gold Sales Jump 20% Amid Political Turmoil (Bloomberg)
The U.K. Royal Mint’s gold sales jumped by a fifth in the first three months of the year, according to figures obtained under freedom of information legislation.
The De-Electrification of the U.S. Economy (Bloomberg)
For more than a century after the advent of commercial electrical power in the late 1800s, electricity use in the U.S. rose and rose and rose. Sure, there were pauses during recessions, but the general trajectory was up.
Trump's budget chief suggests a government shutdown wouldn't be that bad (Business Insider)
The head of President Donald Trump's budget office said that people shouldn't be so concerned about the deadline for Congress to fund the federal government.
London Housing in Deepest Slump Since the Financial Crisis (Bloomberg)
London’s housing market is in its worst slump since the depths of the financial crisis eight years ago, part of a broader slowdown that may continue.
There’s more than 60% chance of a global recession within the next 18 months, economist says (CNBC)
Global growth is expected to slow down significantly in the coming months as borrowing levels dominate in both China and Europe and "Trump-mania" is set to fade, a chief economist at Danish investment firm Saxo Bank told CNBC on Monday.
China Is Playing a $9 Trillion Game of Chicken With Savers (Bloomberg)
Like many individual investors in China, Yang Mo has no idea what’s in the wealth management products that make up a big chunk of her net worth.
China Exports Jump the Most in Two Years as Imports Moderate (Bloomberg)
China’s overseas shipments last month jumped the most in two years as global demand held up. Imports moderated after a holiday-season surge in February and the trade balance rose.
We Tracked Every Dollar 235 U.S. Households Spent for a Year, and Found Widespread Financial Vulnerability (Harvard Business Review)
Income inequality in the United States is growing, but the most common economic statistics hide a significant portion of Americans’ financial instability by drawing on annual aggregates of income and spending.
The Fundamental Problems of the Financial Crisis Are Still with Us (Finanz and Wirtschaft)
It is a pivotal moment on the eve of the financial crisis. In the late summer of 2005, the world’s most influential central bankers and economists gather in Jackson Hole at the foot of the Rocky Mountains.
The Market Is In More Near-Term Trouble Than You Might Think (James Brumley, Seeking Alpha)
Most of the time, a market prognostication is rooted in stocks' aggregate value with respect to the most plausible economic outlook.
This is not one of those times.
Fed Bombshell Minutes Indicate Balance Sheet Reductions, Suggest Markets Are Overvalued (Financial Sense, Seeking Alpha)
Ever since the S&P hit its all-time high of 2400 on March 1, the day after President Trump gave his much-lauded speech to Congress, we've seen it decline to near the 2354 level. Also, the Dow Industrial's current reading of 20,600 is about 500 points off its all-time highs.
Are You Ready for the Middle East’s Solar Gold Rush? (Financial Sense)
On April 6th, Middle Eastern nations announced an ambitious energy project to establish an Arab Common Market for electricity. The energy ministers from 14 Arab countries signed a memorandum of understanding, confirming their commitment to the development of an integrated electricity supply system for the Middle East.
The End of China’s Export Juggernaut (Ritholtz)
China has been an exporting juggernaut for decades. In the United States, this has meant a dramatic increase in China’s share of imports and a ballooning bilateral trade deficit.
Turkey to Confiscate Gold in New Clever Way – To Help Citizens Earn Money (Armstrong Economics)
The dwindling credit of Turkey and significant decline in its currency, has led to the new clever idea of confiscating gold with a smile. The Turkish Central Bank has come up with an idea of how to confiscate private gold while pretending they are helping you earn more money.
Economists are arguing over how their profession messed up during the Great Recession. This is what happened. (The Washington Post)
Over the past two weeks, academic economists (and a couple of bystanders) have been arguing about why economics wasn’t able to guide policy better during the Great Recession. Some blame nonacademic economists. Others blame prominent academics.
More Evidence That Charter Schools Are a Taxpayer Ripoff That Delivers Poor Results (Naked Capitalism)
A blockbuster report detailing how California’s charter school industry has wasted hundreds of millions of taxpayer dollars by opening and building schools in communities that don’t need them and often end up doing worse than nearby public schools, is a nationwide warning about how education privateers hijack public funds and harm K-12 public schools.
Commercial Mortgage Originations Suffer First YOY Decline Since 2007 (C&I Lending Growth Dropping) (Confounded Interest)
According to the Mortgage Bankers Association 4Q 2016 commercial real estate loan originations survey, mortgage originations related to discretionary segments of the economy are in complete free fall with retail and hotel volumes down 19% and 39%, respectively.
If You Are Super Rich, You Probably Live in the U.S.: Chart (Bloomberg)
Some 140,900 adults worldwide can be classed as ultra-high net worth individuals, with personal wealth of more than $50 million, according to Credit Suisse Group AG’s Global Wealth Report.
Credit Suisse 'Fear' Gauge Nears Record High As Investors Give Up On Upside Hope (Zero Hedge)
We pointed out the surge in 'fear' among professional US equity investors earlier in the week, to near record highs (hit during the Brexit vote) up 8 days in a row.
Companies
Investors call for Tesla changes. Musk tells them to buy Ford (CNN)
The Tesla CEO used Twitter to fire back at a group of investors who called for the electric car maker's board to add two new directors who have no ties to Musk.
:format(webp)/cdn0.vox-cdn.com/uploads/chorus_image/image/54223221/REC_ASA_CODE2016-20160531-185938-0163.0.0.jpeg)
This is the Jeff Bezos playbook for preventing Amazon’s demise (Recode)
Once a year, in his letter to Amazon shareholders, Jeff Bezos gives us all a glimpse into his business world view and management philosophy. This year’s version did not disappoint.
These 25 companies will pay you the highest salaries, according to Glassdoor (Mashable Asia)
Glassdoor put together a list of the 25 companies that pay the highest salaries in the United States, and the results aren't that surprising. Most of the high-rolling employers are in tech, plus a few consulting firms.
Technology
Uber reportedly tracked Lyft drivers using a secret software program named ‘Hell’ (Tech Crunch)
Another day, another revelation of an ethically questionable business practice by Uber. This time The Information reports that Uber secretly tracked Lyft drivers using an internal software program it dubbed Hell.
Hydrogen Fuel Cell Cars Face Obstacle: Few Fueling Stations (Associated Press)
Hydrogen fuel cell cars could one day challenge electric cars in the race for pollution-free roads — but only if more stations are built to fuel them.
Apple snapped up Hover Camera's selfie drone for an exclusive (CNet)
The Hover Camera Passport is one of several selfie-centric drones released in the past year and, while it's garnered more attention than others, it's about to get a big boost in recognition thanks to Apple.
Samsung putting Note 7 behind it as S8 pre-orders surpass S7's (Reuters)
Pre-orders for Samsung Electronics Co Ltd's flagship Galaxy S8 smartphone have exceeded those of its predecessor S7, the firm's mobile chief said on Thursday, suggesting many consumers are unfazed by last year's Galaxy Note 7 fires.
Apple has a secret team working on the holy grail for treating diabetes (CNBC)
Apple has hired a small team of biomedical engineers to work at a nondescript office in Palo Alto, California, miles from corporate headquarters.
Bigger, Faster, More Lavish: Americans Crave S.U.V.s, and Carmakers Oblige (NY Times)
Americans want bigger, faster and more luxurious sport utility vehicles — and automakers are more than happy to fulfill the booming demand.
/https%3A%2F%2Fblueprint-api-production.s3.amazonaws.com%2Fuploads%2Fcard%2Fimage%2F445073%2Fe2ce618a-b062-4500-a629-d8dc5361c294.jpg)
Smartwatch-making company CEO: Smartwatches are pointless (Mashable)
Calling one of your company's newest high-profile releases essentially useless probably isn't the best way to boost team morale — but that didn't stop Huawei Deputy Chairman and rotating CEO Eric Xu Zhijun from trashing even the concept of a smartwatch.
The Best in Class at the 2017 New York Auto Show (Bloomberg)
With the global auto industry in overdrive, car companies are going to great lengths to one-up each other and turn the heads of potential buyers. Dream up a size and shape of vehicle, and odds are it's already on display at the 2017 New York International Auto Show this week.
Poker-Playing Engineers Take on AI Machine – And Get Thrashed (Bloomberg)
Alan Du, a venture capitalist and World Series of Poker veteran, was in his fifth day of matching wits against his stone-cold opponent — and his losses were piling up.
A Yelp bot will deliver your sushi in San Francisco (Engadget)
While Amazon continues refining its delivery-by-UAV dream, Yelp is gearing up to test a grounded method to autonomously transport take out. The company is partnering with Marble to use their wheeled drone, which is designed to carry perishable cargo, to try out unmanned food delivery for its Seamless-like Yelp Eat24 service.
Glowing bacteria offer hope for safe detection of 100m landmines (The Guardian)
A team of researchers at an Israeli university has successfully tested a technology using fluorescent bacteria and lasers that could become a safer system for detecting buried landmines.
The New Sun Kings: How China Came to Dominate Solar Power (NY Times)
Russell Abney raised two children on solar power. The 49-year-old Georgia Tech graduate worked for the last decade in Perrysburg, Ohio, a suburb of Toledo, pulling a good salary as an equipment engineer for the largest American solar-panel maker.
River is the big-ass battery you didn't know you wanted (The Verge)
We can't help but swoon over phones with big, 3,500mAh batteries. There's something magical about the promise of untethered longevity, conjuring images of hitting the open road for some carefree, off-grid adventure.
Politics
Trump Reverses Himself On Nato, China, Russia, And More (Associated Press)
In several interviews this week, the president has forged new positions on topics ranging from NATO to Chinese currency manipulation. They come as other campaign promises lag, including Trump's vow to build a concrete wall along the length of the southern border and have Mexico pay for it.
Court Approved Wiretap on Trump Campaign Aide Over Russia Ties (NY Times)
The Justice Department obtained a secret court-approved wiretap last summer on Carter Page, a foreign policy adviser to Donald J. Trump’s presidential campaign, based on evidence that he was operating as a Russian agent, a government official said Wednesday.
Le Pen Could Boost the Brexit-Battered Pound (Bloomberg)
Political turmoil on the other side of the English Channel may give the pound an improbable respite from its Brexit-induced weakness.
Trump says Congress should repeal Obamacare before tackling tax code overhaul (The Washington Post)
President Trump is again reshuffling his congressional agenda, saying Congress should first pass a repeal of the Affordable Care Act before measures such as an overhaul of the tax code can be considered.
Trump Reversals Hint at Wall Street Wing’s Sway in White House (NY Times)
President Trump made three startling economic policy reversals on Wednesday, stepping away from pledges he made as a candidate and even policies he supported only days ago.
I Thought I Understood the American Right. Trump Proved Me Wrong. (NY Times)
Until Nov. 8, 2016, historians of American politics shared a rough consensus about the rise of modern American conservatism. It told a respectable tale.
At Meeting, Putin and Tillerson Find Very Little to Agree On (NY Times)
It was not clear until around 5 p.m., when Mr. Tillerson’s small motorcade eased out of the Ritz-Carlton in one of the fanciest parts of Moscow and slipped into Red Square that Russia’s president was willing to engage in his first face-to-face meeting with a senior member of President Trump’s administration, even one who is an old business partner who used to show up on behalf of Exxon Mobil.
Scott Pruitt Faces Anger From Right Over E.P.A. Finding He Won’t Fight (NY Times)
When President Trump chose the Oklahoma attorney general, Scott Pruitt, to lead the Environmental Protection Agency, his mission was clear: Carry out Mr. Trump’s campaign vows to radically reduce the size and scope of the agency and take apart President Barack Obama’s ambitious climate change policies.
President Donald Trump wants the world to know that the chocolate cake at Mar-a-Lago is really amazing. He also wants you to know — incorrectly — that he bombed Iraq.
Michele Bachmann’s missing million: Federal elections officials want to know where $1 million from her campaign committee wentFormer Minnesota congresswoman and Tea Party darling Michele Bachmann may no longer grab headlines for her wacky floor speeches, but that doesn’t mean federal elections officials have forgotten about her — or the more than $1 million in campaign cash they say is now mysteriously missing.
The EU should plan for a Marine Le Pen presidency (The Economist)
As usual, the president’s first foreign trip is to the chancellery in Berlin. But the meeting with Angela Merkel does not go well. The two women instantly begin squabbling. Accused of breaking Europe’s rules on borders, Mrs Merkel fires back that her visitor has not done her homework: Germany has always acted lawfully.
Ahmadinejad Stirs Up Iran Presidential Race With Shock Bid (Bloomberg)
Former Iranian President Mahmoud Ahmadinejad registered for next month’s presidential election in apparent defiance of Supreme Leader Ayatollah Ali Khamenei’s advice not to run to avoid polarizing the country.
Trump Says He Didn’t Know Bannon Until Campaign, but They Met in 2011 (NY Times)
Within 24 hours, President Trump repeated several false or misleading claims about wiretapping, Hillary Clinton and his own chief strategist.
It seems like a lifetime ago that Republican National Committee chief Reince Priebus brokered a meeting between the unexpected presidential nominee Donald Trump and House Speaker Paul Ryan to try iron out their differences.
Life on the Home Planet
Sheila Abdus-Salaam, Judge on New York’s Top Court, Is Found Dead in Hudson River (NY Times)
Sheila Abdus-Salaam, an associate judge on New York State’s highest court and the first African-American woman to serve on that bench, was found dead on Wednesday in the Hudson River, the authorities said.
Charging Bull artist wants removal of Fearless Girl statue (BBC News)
he sculptor that erected Wall Street's Charging Bull statue is complaining about New York City's decision to allow a nearby statue to remain in place.
Pastor who called gays ‘sinners’ after Pulse shooting is convicted of child molestation (The Washington Post)
Authorities in Orlando had barely finished identifying the 49 people shot to death at a local gay bar in June 2016 when Kenneth Adkins, a Georgia-based preacher and anti-gay activist, jumped into the fray.
Japanese warships to join US fleet near North Korea as tensions rise (The Guardian)
Japan is preparing to send several warships to join a US aircraft carrier strike group heading for the Korean peninsula, in a show of force designed to deter North Korea from conducting further missile and nuclear tests.
The Insecurity of Inequality (Project Syndicate)
Global inequality today is at a level last seen in the late nineteenth century – and it is continuing to rise. With it has come a surging sense of disenfranchisement that has fueled alienation and anger, and even bred nationalism and xenophobia.
Daily Mail ordered to pay damages to anyone who has ever read it (The Daily Mash, Humor)
The Daily Mail has been ordered to pay damages to readers for exposing them to decades of demented tripe.
The newspaper faces a bill running into trillions of pounds for exposing Britons to a cesspit of reactionary propaganda, sideboobs and evil columnists.
