Financial Markets and Economy
Low Inflation Threatens Corporate Profits, Not Workers (Bloomberg)
March's weak report on the consumer price index showed inflation to be low, throwing out investors' assumptions about inevitable rate increases from the Federal Reserve and raising fears that economic growth would remain in the doldrums.
Deutsche Bank’s Bianco Sees More Downside for Energy (Bloomberg)
David Bianco, chief investment strategist at Deutsche Asset Management, discusses the outlook for commodities and his thoughts on investing.
Paul Tudor Jones Says U.S. Stocks Should ‘Terrify’ Janet Yellen (Bloomberg)
The legendary macro trader says that years of low interest rates have bloated stock valuations to a level not seen since 2000, right before the Nasdaq tumbled 75 percent over two-plus years.
Sure, Stocks Are Overvalued. Now What? (Bloomberg)
It’s no secret that U.S. stocks are overvalued. After eight consecutive years of gains — we’re now into the ninth — it would make sense that the S&P 500 Index would have above-average valuations based on almost every measure.
Sales of Existing U.S. Homes Rise to Fastest Pace in a Decade (Bloomberg)
Sales of previously owned U.S. homes rose more than forecast in March to the fastest pace in a decade, signaling sustained momentum in the housing market despite higher prices and scarce supply, a report from the National Association of Realtors showed Friday.
U.K. Has First Day Without Relying on Coal for Power Since 1880s (Bloomberg)
The U.K. had its first full day without burning coal to make electricity since the Industrial Revolution more than a century ago, according to grid operator National Grid Plc.
Oil dives, sending U.S. crude below $50 for first time in two weeks (Reuters)
Oil prices tumbled more than 2 percent on Friday, notching the biggest weekly decline in more than a month on mounting evidence that U.S. production and inventory growth were offsetting OPEC's attempts to reduce the global crude glut.
U.S. Retailers Face Growing Hostility From Suppliers (Bloomberg)
When a group of disgruntled shoe manufacturers assembled in China earlier this year, they put up signs with messages in English, hoping they would be seen by Americans 7,000 miles away: “Payless Sucks.”
The World’s Advanced Economies Should Think Twice About Curbing Migration (Bloomberg)
Analysis of United Nations data by Fitch Ratings shows halting immigration would drastically reduce the potential working population of Group-of-Seven nations, leaving aging societies more dependent on a smaller labor force and resulting in greater financial stress on pension systems and potentially slower growth.
Goldman Sachs Concerned About A Market Crash Amid soft economic data (Value Walk)
Investors appear increasingly concerned about S&P 500 drawdown according to a new research report from Goldman Sachs. The report highlights the recent S&P 500 rally, which has taken place since the presidential election results were known at the beginning of November.
Posen Sees Disappointing U.S. Infrastructure Bill (Bloomberg)
Adam Posen, president at the Peterson Institute for International Economics, and Gilles Moec, chief European economist at Bank of America Merrill Lynch, discuss possible policies from the Trump administration and the global economy.
Oil Producers Deliver Cuts. Oil Market Delivers Nothing. (Bloomberg)
OPEC and its allies are little more than a month away from taking a decision that will de?ne the short-term future of the oil industry: extend crude-output cuts that haven’t really lifted prices, or return to pump-at-will policies that caused a crash.
This is where the stock market bears will make their last stand (Market Watch)
After a double-digit rally that took the S&P 500 index to a record on March 1, stocks have sputtered to trade in a tight band of less than a 100 points.
White House's Cohn Wants to See ‘More and More’ LNG Terminals (Bloomberg)
The director of the White House’s National Economic Council — and former Goldman Sachs Group Inc. president — said the administration would step up approvals for LNG export terminals, starting with a project in the Northwest that he didn’t identify.
How to Analyze a Business, the Sherlock Holmes Way (Safal Niveshak)
Peter Bevelin has written a few amazing books, like Seeking Wisdom: From Darwin to Munger, A Few Lessons for Investors and Managers, and the latest All I Want To Know Is Where I’m Going To Die So I’ll Never Go There.
Here’s how corporate buyers are helping keep U.S. interest rates low (Market Watch)
Pension funds and central banks step aside, there’s a new kid in town.
Deutsche Bank economists say that U.S. corporations have upended the Treasury market, ramping up purchases and helping to keep rates low.
Shipping Industry Faces Seismic Shift In 2020 As Sulfur Cap Looms (S&P Global Platts)
In 2020 the shipping industry is facing its biggest change since the shift away from burning coal a century ago as the IMO is set to impose a new 0.5% sulfur cap on marine fuel emissions.
U.S. Stock Market and Gold, Post Tomahawks and MOAB (Slope Of Hope)
It happens when inflammatory events (usually political, terror or war related, but also including things like Ebola, Bird Flu and the like) crop up; stocks go down and hysteria starts to build.
Trump's Tax Cut Plan Will… Pay… For… Itself! (Economist's View)
Trump's Tax Cut Plan Will… Pay… For… Itself!: …Treasury Secretary Steven Mnuchin said … tax cuts … would come close to recouping all of the lost revenue from the dramatic rate reductions…. “The plan will pay for itself with growth,” Mnuchin said at an event hosted by the Institute of International Finance.
21/4/17: Millennials, Property ‘Ladders’ and Defaults (True Economics)
In a recent report, titled “Beyond the Bricks: The meaning of home”, HSBC lauded the virtues of the millennials in actively pursuing purchases of homes. Mind you – keep in mind the official definition of the millennials as someone born 1981 and 1998, or 28-36 years of age (the age when one is normally quite likely to acquire a mortgage and their first property).
Why "Nothing Matters": Central Banks Have Bought A Record $1 Trillion In Assets In 2017 (Zero Hedge)
A quick, if familiar, observation to start the day courtesy of Bank of America which in the latest overnight note from Michael Hartnett notes that central banks (ECB & BoJ) have bought $1 trillion of financial assets just in the first four months of 2017, which amounts to $3.6 trillion annualized, "the largest CB buying on record."
'Soft' Data Bloodbath – Manufacturing/Services PMI Plunge Below Trump Election Lows (Zero Hedge)
Having now plunged for three straight months, Markit's PMI surveys for Manufacturing and Services plunged back below pre-election lows in April, crushing the dreams of 'soft' survey hopers as Markit notes the latest data "suggest the US economy lost further momentum at the start of the second quarter."
Companies
Emirates cuts services to America as Donald Trump’s actions bite (The Economist)
WHEN American officials announced last month that laptops and tablets would be banned from aeroplane cabins on flights from certain Muslim countries, many questioned the administration's motive.
Bebe Stores to liquidate, close all stores (Market Watch)
Bebe Stores Inc. BEBE, +6.39% announced Friday that it will liquidate all merchandise and inventory and close all stores by the end of May 2017. In the 8K filing, the women's clothing and accessories retailer said it would also sell certain furnishings, fixtures and equipment.
Macy's Lundgren says 'great valuations' are fueling retail's appetite for M&A (CNBC)
As Macy's looks to turn around its business and end a two-year streak of same-store sales declines, Executive Chairman Terry Lundgren said a merger or acquisition could eventually be on the table.
MORGAN STANLEY: Disney's ESPN problem isn't a problem at all (DIS) (Business Insider)
In the summer of 2015, shares of Disney tumbled 24%, from $120 to $91, on concerns that the company would lose revenue as a result of customers "cutting the cord."
Sales tumble for Mattel's key brands (Reuters)
Mattel Inc reported a far bigger-than-expected quarterly loss and drop in sales on Thursday, hurt by poor demand by retailers for key brands Barbie and Fisher-Price and due to big discounts to move inventory left after weak holiday sales.
Technology
Why it matters that Google Home can now identify you by voice (The Washington Post)
Previously, Home linked up only to the account of whoever set it up first. Now, the device will be able to handle multiple accounts and tell who's speaking to it, offering personalized answers to some questions.
Delphi Is Building a Software Suite to Help Detroit Catch Tesla (Bloomberg)
e cars consumers are already driving could soon get over-the-air software updates like those pioneered by Tesla Inc. that fix flaws or add features without a visit to the dealership.
Smartphones are common in advanced economies, but digital divides remain (Pew Research Center)
When Pew Research Center surveyed 14 advanced economies in the spring of 2016, one thing was clear: In each of the countries surveyed, nearly all people reported owning a mobile phone. But the shares who own a smartphone vary considerably.
Russia-linked fake news floods French social media (Euobserver)
Almost one in four of the internet links shared by French users of social media in the run-up to elections were related to fake news, much of which favoured anti-EU candidates and showed traces of Russian influence, according to a new study.
Politics
Looking Beyond the First Round of French Elections (Bloomberg)
David Owen, chief European economist at Jefferies, discusses the economic outlook for France beyond the country’s coming first round of elections.
Congress Can Easily Keep the Health-Care Market Stable (Bloomberg)
As Congress threatens again to replace the Affordable Care Act, or try to, along comes further evidence of how well the law is working: Overall, insurers on Obamacare’s exchanges are doing well, and almost all of them say they intend to participate next year — as the Congressional Budget Office has suggested they would.
With no major legislation to his name, Trump brushes off importance of his first 100 days (Think Progress)
Friday morning, President Trump took to Twitter to bemoan that no matter what he accomplishes during the “ridiculous standard” that is his first 100 days in office, it won’t be enough for the media.
An Underwhelming Start for President Trump (Bloomberg)
My Bloomberg View colleague Megan McArdle on the hash Republicans are making of health-care policy. One small disagreement: While she's certainly correct that voter demands are contradictory and impossible to fulfill, I think that lets Republican politicians off the hook too much, given that they have encouraged those demands.
Le Pen vs. Melenchon Runoff Is Disaster, Says Adam Posen (Bloomberg)
Adam Posen, president at Peterson Institute for International Economics, and Gilles Moec, chief European economist at Bank of America Merrill Lynch, discuss coming elections in France and what they may mean for markets.
EPA Touts Successes of Programs Trump’s Budget Aims to Kill (Bloomberg)
President Donald Trump has proposed ending dozens of Environmental Protection Agency programs in his drive to slash its budget, but that’s not stopping his administration from taking credit for those operations in the meantime.
Trump’s treasury secretary: The tax cut ‘will pay for itself’ (The Washington Post)
The Trump administration plans to rely on controversial assumptions about economic growth to offset steep cuts to business and individual tax rates, a chief architect of the plan said Thursday.
President Trump’s glorious first 100 days: More frightening or more pathetic? (Salon)
There is a lot of chatter these days about the looming milestone of the “first 100 days” of the Donald Trump administration and how he measures up in presidential history.
Donald Trump is holding Obamacare hostage to get his border wall (Salon)
After weeks of bipartisan budget talks to prevent a government shutdown, President Donald Trump is making a border wall request that could bring the government to a halt.
Democrats Must Compromise on Trump Budget Demands, Mulvaney Says (Bloomberg)
Democrats will need to agree to fund some of President Donald Trump’s key projects, including a wall at the U.S.-Mexico border, if they want to reach a deal to keep the government running beyond the end of the month, the White House budget director said Thursday.
Neil Gorsuch’s very first decision on the Supreme Court was to let a man be killed (Think Progress)
Thursday evening, Neil Gorsuch — who occupies a seat on the Supreme Court that Senate Republicans held open for a year until Donald Trump could fill it — cast his first public vote since his ascension to the high Court. Hours later, a man was killed because of Gorsuch’s vote.
Here’s Sarah Palin, Kid Rock and Ted Nugent visiting Donald Trump’s White House (Salon)
Rocker Ted Nugent, who once referred to Hillary Clinton as a “devilbitch,” visited President Donald Trump in the White House on Wednesday night while accompanied by former Alaska governor Sarah Palin and professional terrible rapper Kid Rock.
New Homeland Security Gives Orwellian First Speech (Blacklisted News)
Homeland Security Secretary John Kelly speaks during a forum “Home & Away: Threats to America and the Department of Homeland Security response,” April 18, 2017, at George Washington University in Washington.
Trump’s ethical squalor is worse than you thought (The Washington Post)
President Trump’s ethical sloth and financial conflicts of interest are unique in American history. (The Harding and Grant administrations were rife with corruption, but the presidents did not personally profit.
Carbon Taxes Gain Conservative Followers (Bloomberg)
Last July, Tommy Wells, director of the District of Columbia’s Department of Energy and Environment, received the final copy of a report that had been in the works for more than a year. Its subject: how to make Washington the first major city in the U.S. to adopt a carbon tax.
See if you would pass Australia's proposed new citizenship test (USA Today)
The Australian government unveiled sweeping new citizenship rules this week that require applicants to live here for at least four years, speak English fluently and conform to "Australian values."
Trump held a secret meeting at Mar-a-Lago with former Colombian presidents (Raw Story)
While eyebrows are being raised about President Donald Trump’s meetings with mega-donors to his inaugural committee, it seems another meeting is causing controversy.
Is Democracy in a Death Spiral? (Buchanan.org)
“You all start with the premise that democracy is some good. I don’t think it’s worth a damn. Churchill is right. The only thing to be said for democracy is that there is nothing else that’s any better.
George Will predicts Obamacare to become single-payer because of this inconvenient fact (Raw Story)
Donald Trump continues to lie to the American people about the imminent passage of a new Obamacare repeal and replace bill. Ultra Conservative George Will explains why it will not happen and the reason will shock many.
Analyst Who Predicted Trump's Rise Bets On Le Pen Victory (Zero Hedge)
That’s the conclusion drawn by Charles Gave, founder of Hong-Kong based asset-allocation consultancy GaveKal Research, who, as Bloomberg reports, predicted the triumph of Donald Trump in the U.S. election, and is now betting on a win for the anti-euro National Front candidate.
Life on the Home Planet
The Air Force is preparing to test a laser cannon on its 'Ultimate Battle Plane' (Task And Purpose)
Ever since the Air Force announced the development of the AC-130J Ghostrider to replace older generations of Lockheed Martin’s reliable fixed-wing gunship, Air Force Special Operations Command just can’t seem to resist slapping more guns on the thing.
How do we lose the next war in the Middle East? The short answer: Fight it! (TomDispatch)
Make no mistake: After 15 years of losing wars, spreading terror movements and multiplying failed states across the Greater Middle East, America will fight the next versions of our ongoing wars.
How a Warming Planet Drives Human Migration (NY Times)
Climate change is not equally felt across the globe, and neither are its longer term consequences. This map overlays human turmoil — represented here by United Nations data on nearly 64 million “persons of concern,” whose numbers have tripled since 2005 — with climate turmoil, represented by data from NASA’s Common Sense Climate Index.
