Financial Markets and Economy
China Manufacturing Gauge Declines From Almost Five-Year High (Bloomberg)
China’s official factory gauge declined on lower commodity prices, clouding the outlook for sustaining the past two quarters’ acceleration in economic growth.
10 things you need to know today (SPY, SPX, QQQ, DIA, TWTR, FOXA, BX, TRIB) (Business Insider)
Congress has a budget deal. The deal, which has bi-partisan support, will fund the government through September 30, Reuters says. It must still be approved by both the House and the Senate.
Five Things You Need to Know to Start Your Day (Bloomberg)
Congress inks a deal on spending, China data disappoints, and Theresa May stands accused of intergalactic space travel. Here are some of the things people in markets are talking about today.
A red flag is popping up that should make the Fed stop raising interest rates (Business Insider)
The Federal Reserve seems bent on raising interest rates at least twice more this year, yet the economic data increasingly do not support the central bank’s sudden gusto for tightening monetary policy.
China leverage rising at 'alarming pace': central bank official (Reuters)
China's level of leverage is rising at an "alarming pace", particularly in the finance sector, a senior central bank official said in a commentary, amid growing concern by the country's senior leaders over financial security.
Big Oil Heads for Back-to-Back Profit Triumphs as Fortunes Turn (Bloomberg)
Fresh off Big Oil’s best quarter in years, Exxon Mobil Corp. and Chevron Corp. may be poised for a repeat.
One-third of the way into the second quarter, crude prices — the prime driver of explorers’ profits — are 25 percent higher than a year ago.
Economists Fear Trump’s Tax Plan Only Heightens a ‘Mountain of Debt’ (NY Times)
During his campaign, Donald J. Trump embraced the cause of fiscal responsibility and accused President Barack Obama of shackling the country with a “mountain of debt.”
Asian equities edge up as Japan outperforms, dollar regains traction (Reuters)
Asian stocks shook off a sluggish start and edged up on Monday, with Japan outperforming on upbeat earnings, while the dollar regained traction as the U.S. government looked likely to avoid a shutdown.
F.C.C. Invokes Internet Freedom While Trying to Kill It (NY Times)
Here we go again. The Federal Communications Commission, now led by an anti-regulation ideologue appointed by President Trump, wants to gut the net neutrality rules that keep powerful broadband companies from calling the shots on the internet, at the expense of consumers.
Gasoline Prices Around the World: The Real Cost of Filling Up (Bloomberg)
Global gas prices are on the rise—about 1.4 percent, on average, in the last three months. Behind that modest increase is a wide range of price swings felt differently around the world.
City Where Japan's Industrial Boom Began Is Decimated by Old Age (Bloomberg)
Few places evoke the rise and fall of Japan’s industrial might than the head office of the Imperial Steel Works in Kitakyushu. The red brick Meiji-era building was the heart of the nation’s first big steelworks. Now it’s a Unesco World Heritage site.
Euro Area's Inflation Surge Won't Help Draghi Hold the ECB Line (Bloomberg)
Only a day after the European Central Bank president expressed concern that price pressures in the euro area are still too weak to rein in stimulus, a measure of underlying inflation beat forecasts to reach the strongest pace in almost four years.
Sorry America, Your Taxes Aren’t High (Bloomberg)
Americans generally feel they’re being over-taxed, especially around this time of the year.
Here's why earnings are so outstanding even though the US economy is barely growing (CNBC)
S&P 500 companies that generate more than half their revenue overseas are posting first-quarter earnings growth of 19.9 percent on average, double that of companies that conduct most of their business domestically, according to FactSet. About 60 percent of the S&P 500 has reported results.
Venezuela raises minimum wage again (CNN)
President Nicolas Maduro announced the change on his weekly television show. It's the latest in a series of hefty increases to the minimum wage that have been issued as the country's currency plunges in value.
David Stockman: Trump's tax plan is 'dead on arrival' and Wall St. is 'delusional' for believing it (CNBC)
In a recent interview on CNBC's "Futures Now," the former director of the Office of Management and Budget under President Reagan said that "Wall Street is totally misreading Washington," and President Trump's promises of tax reform will be "dead before arrival."
Forget the Bottle, Invest in Whisky by the Barrel (Bloomberg)
Nigel Isherwood was so concerned about the fate of the global financial system last year that he turned to booze.
Oil Falls as U.S. Drillers Boost Rigs and Libya Expands Output (Bloomberg)
Futures fell as much as 1 percent in New York. The number of oil rigs operating in U.S. fields rose to the highest level in two years, according to Baker Hughes Inc. Libya’s output roseto more than 700,000 barrels a day as the OPEC member’s biggest oil field and another deposit in its western region resumed pumping after a halt.
Why Everyone Is Talking About This Tiny Canadian Lender’s Woes (Bloomberg)
The world is suddenly paying attention to Home Capital Group Inc., the tiny Canadian mortgage lender that’s on the ropes. The stock is plunging, it faces a run on deposits and regulators are probing management’s disclosure of fraudulent mortgages.
Avocado Prices Are Skyrocketing (Bloomberg)
That bowl of guacamole on Cinco de Mayo will be more expensive this year, as avocado prices rise to a record on surging demand and a smaller crop in Mexico and California.
No Wonder Marijuana Stocks Are Soaring! Support for Legalizing Weed Just Hit an All-Time High (Fool.com)
The marijuana industry is the hottest thing since sliced bread, and marijuana stocks are thriving as a result.
Hedge Fund CIO: What Central Banks Have Done Is "Stunning, Unprecedented" (Zero Hedge)
We start a quiet Sunday with a big picture anecdote from Eric Peters' latest weekend note explaining why what central banks are trying to do is impossible, why the trend of inflation over the past 70 years is "stunning and unprecedented" and why "volatility suppression" always eventually fails.
World Bank Maintains Oil Price Forecast At $55 (Financial Sense)
In its latest Commodity Markets Outlook, the World Bank maintained its Q1 forecast for oil prices at $55 a barrel, saying, however, that overall energy prices will increase 26 percent in 2017.
Spotlight on Airplane Orders: Demand About to Collapse? (MishTalk)
With autos and general consumer spending rolling over, the two things propping up the economy are housing and durable goods orders, more specifically airplane orders.
Pence: Trump's Tax Plan To Increase Deficit "In The Short Term" (Zero Hedge)
Hours after Trump provided the broad framework, if few details, to his tax plan, conceived almost certainly by Goldman Sachs economists Alec Phillips and Jan Hatzius (and presented to the public by former Goldman employees Steven Mnuchin and Gary Cohn), the CRFB calculated its impact on both the US budget deficit and future US debt.
Five Billion Dollar Bank Failure – First NBC Bank, New Orleans, Closed by Regulators (Problem Bank LIst)
A very large bank failure occurred today when state regulators closed First NBC Bank, New Orleans, and appointed the FDIC as receiver. To prevent losses to depositors, the FDIC took a significant hit to its Deposit Insurance Fund and sold First NBC Bank to Whitney Bank, Gulfport, Mississippi.
Italy Warns Sudden Collapse Of Alitalia Would Lead To "Great Shock" For The Economy (Zero Hedge)
Just yesterday, Italian daily La Stampa reported that four months after the third government bailout of Italy's third largest bank in as many years, the Italian government may have to inject even more cash than planned into Monte Paschi, the world's oldest and apparently always insolvent bank.
"It's Just Crazy" (Again): 2-Bedroom LA House Sells 40% Above Asking (Zero Hedge)
Two days ago we looked at the latest troubling development in US home price trends: a new bubble appears to be emerging in all the "usual suspect" places.
Futures Rise On Government Funding Deal; Most Global Markets Closed For Holiday (Zero Hedge)
With much of Europe and Asia, including the U.K., France, Germany and China markets closed for Labor Day, Asian stocks and the dollar rose buoyed by news that Congress had reached a deal to keep the US government funded through the end of September.
Panic Bank Run Leaves Canada's Largest Alternative Mortgage Lender On Edge Of Collapse (Zero Hedge)
After two years of recurring warnings (both on this website and elsewhere) that Canada's largest alternative (i.e., non-bank) mortgage lender is fundamentally insolvent, kept alive only courtesy of the Canadian housing bubble which until last week had managed to lift all boats, Home Capital Group suffered a spectacular spectacular implosion last week when its stock price crashed by the most on record after HCG revealed that it had taken out an emergency $2 billion line of credit from an unnamed counterparty with an effective rate as high as 22.5%, indicative of a business model on the verge of collapse.
Companies
Facebook is about to have 4 different billion-user platforms (The Motley Fool)
Despite intensifying competition among social photo/video sharing platforms, user growth on Facebook's (NASDAQ:FB)Instagram is actuallyaccelerating. Instagram announced today that it has now reached 700 million monthly active users, noting that "the last 100 million of you joined faster than ever."
Apple’s Cash Hoard Set to Top $250 Billion (The Wall Street Journal)
Apple Inc. is expected to report Tuesday that its stockpile of cash has topped a quarter of a trillion dollars, an unrivaled hoard that is greater than the market value of either Wal-Mart Stores Inc. or Procter & Gamble Co. and exceeds the foreign-currency reserves held by the U.K. and Canada combined.
Merriam-Webster trolls Apple fans with its new definition of ‘sheeple’ (The Daily Dot)
According to the good people over at Merriam-Webster, there’s a new word in the dictionary, and its definition takes aim squarely at Apple consumers. Earlier this week, the social media-savvy dictionary announced a new addition, one that people who get in testy political arguments may have heard before: “sheeple.”
Technology
Tesla has delayed the rollout of its solar roof — here's everything we know about the project so far (Business Insider)
The company originally said it would begin selling its solar roof in April, but CEO Elon Musk said that two of the four shingle options wouldn't be made available until early 2018. A Tesla representative declined to comment further on why the timeline had changed.
Is This the Electric Car That's Going to Trump Tesla? (Bloomberg)
Here, in the motor court of a $55 million Newport Beach estate, climbing into the rear of the Lucid Air for test ride, we’re already skeptical.
Wi-Fi technology has only been around for a couple of decades, but demand for high-speed public access has exploded over the last few years. Now, devices can easily connect to the internet at millions of public hotspots worldwide — which some analysts estimate could grow eight-fold to 300 million hotspots globally in 2018.
A $50,000 Chrysler Minivan Explains Slowing U.S. Auto Sales (Bloomberg)
To understand why the U.S. auto market isn’t growing, consider a top-of-the-line minivan from Fiat Chrysler Automobiles NV now costs about $50,000.
Politics
GOP faces make-or-break moment on Obamacare repeal (Politico)
House Republican leaders and White House officials are increasingly confident about passing their long-stalled Obamacare replacement bill: More lawmakers than ever are committed to voting “yes," they say, and GOP insiders insist they’re within striking distance of a majority.
Abe Sees Momentum Toward Changing Japan's Pacifist Constitution (Bloomberg)
Prime Minister Shinzo Abe said he sees momentum toward changing Japan’s 70-year-old pacifist constitution, as public opinion polls show a high level of concern over North Korea’s nuclear and ballistic missile program.
Trump's campaign is launching a $1.5 million run of TV ads touting his first 100 days (Associated Press)
President Donald Trump's campaign organization is launching a $1.5 million run of TV ads touting his accomplishments in his first 100 days.
Fact Check: Trump’s Account of His First 100 Days in Office (NY Times)
On his 100th day in office, President Trump offered familiar misleading defenses and boasts about his early progress, his setbacks and his predecessor.
Congress Inks Spending Deal That Jettisons Trump Priorities (Bloomberg)
U.S. House and Senate negotiators reached a bipartisan deal on a $1.1 trillion spending bill that largely tracks with Democratic priorities and rejects most of President Donald Trump’s wish list, including money to begin building a wall along the U.S.-Mexican border.
Trump ‘Armada’ Sent to Deter Kim Can’t Shoot Down His Missiles (Bloomberg)
The U.S. Navy flotilla sailing toward the Korean peninsula to deter Kim Jong Un’s regime lacks a key capability: It can’t shoot down ballistic missiles.
Turkey Purges 4,000 More Officials, and Blocks Wikipedia (NY Times)
The Turkish government expanded its crackdown on dissent and free expression over the weekend, purging nearly 4,000 more public officials, blocking access to Wikipedia and banning television matchmaking shows.
Bernie Sanders’ mission for free college on the verge of reality (Salon)
The scholarship will benefit students attending City University of New York (CUNY) and State University New York (SUNY) schools with two or four-year programs. Recipients must be New York residents for at least one year with an annual income of less than $100,000.
Trump’s ‘Very Friendly’ Talk With Duterte Stuns Aides and Critics Alike (NY Times)
When President Trump called President Rodrigo Duterte of the Philippines on Saturday, White House officials saw it as part of a routine diplomatic outreach to Southeast Asian leaders. Mr. Trump, characteristically, had his own ideas.
U.S. congressional negotiators have hammered out a bipartisan agreement on a spending package to keep the federal government funded through the end of the current fiscal year on Sept. 30, a senior congressional aide said on Sunday.
North Korea: Trump keeps options open against 'smart cookie' Kim Jong-Un (The Guardian)
As tensions between the US and North Korea continued on Sunday, Donald Trumpsaid North Korean leader Kim Jong-un was “a pretty smart cookie” for managing to hold on to power after taking over at a young age.
We waited seven months for Trump's tax plan, and we got … this? (Vox)
The Trump administration, with great fanfare, rolled out a new tax plan on Wednesday. It was neither particularly new nor truly a “plan,” at least not in the way that word is typically used in presidential politics.
Engagement With Trump Tweets Is Plummeting (Gizmodo)
Ah, the golden age of Trump’s Twitter account, we were all so much more innocent then. The former pro wrestler would tweet something crazy and we’d all go crazy retweeting it with a comment about Hitler.
An interview suggests Trump doesn't know what's in his health bill (Vox)
President Trump gave a lengthy interview Sunday morning to CBS’ John Dickerson about the Republicans’ health care plan.
Life on the Home Planet
Box Office: As 'Guardians Of The Galaxy Vol. 2' Nabs $101M Debut, Can It Still Top $1 Billion? (Forbes)
Peter Quill, Gamora and friends got off to a running start this weekend, as the newest Marvel Cinematic Universe offering began its overseas expansion in advance of its domestic debut. James Gunn's Guardians of the Galaxy Vol. 2 earned $101 million since opening on Tuesday.
Chinese Offer to Eat Denmark’s Oyster Problem to Extinction (NY Times)
Is an alien mollusk species choking your shoreline? Don’t despair. China’s ravenous, inventive internet users have an answer to unwelcome shellfish.
Fact: We belong to a nation overrun by ignoramuses.
This is not an “alternative fact” or a rude opinion. It’s the truth. Our collective ignorance is frightening. Now, whether you find that declaration insulting depends upon which definition of “ignoramus” you’re most familiar with.
Pirate attacks rising off East Africa, Pentagon and shipping records show (USA Today)
Pirates once again prowl the high seas off shore of this tiny country on the strategic Horn of Africa.
Navy Capt. Richard Rodriguez, chief of staff of the Combined Joint Task Force-Horn of Africa, said Sunday U.S. forces are monitoring of piracy in the area.
Scientists Sequence Ancient Neandertal DNA From Cave Dirt (Forbes)
Need DNA? No body? No problem. New research in Science by an international team of researchers lead by Viviane Slon at the Max Planck Institute for Evolutionary Anthropology in Germany has shown a relatively straightforward way to sequence the DNA from of our hominin relatives without any of their skeletal remains, greatly expanding the horizons of ancient DNA research.
A Massive Lake Of Molten Carbon The Size Of Mexico Was Just Discovered Under The US (Forbes)
A recent scientific discovery has drastically changed our view of the global carbon cycle and identified a new significant risk. Researchers have discovered a giant lake or reservoir made up of molten carbon sitting below the western US.
20 Amazing Facts About What Happens Every Single Minute Of Every Single Day In Our Rapidly Changing World (End Of The American Dream)
Our world is changing at a blinding pace that is accelerating with each passing day. Thanks to the Internet, information travels at a speed that would have been unimaginable at other times in human history, and our technological capabilities are advancing at a rate that is exponentially increasing.
