Financial Markets and Economy
The world’s most valuable resource is no longer oil, but data (The Economist)
A NEW commodity spawns a lucrative, fast-growing industry, prompting antitrust regulators to step in to restrain those who control its flow. A century ago, the resource in question was oil. Now similar concerns are being raised by the giants that deal in data, the oil of the digital era. These titans—Alphabet (Google’s parent company), Amazon, Apple, Facebook and Microsoft—look unstoppable. They are the five most valuable listed firms in the world. Their profits are surging: they collectively racked up over $25bn in net profit in the first quarter of 2017. Amazon captures half of all dollars spent online in America. Google and Facebook accounted for almost all the revenue growth in digital advertising in America last year.
Saudi Arabia and Russia Signal Oil-Cuts Extension Into 2018 (Bloomberg)
Saudi Arabia and Russia signaled they could extend production cuts into 2018, doubling down on an effort to eliminate a supply surplus just as its impact on prices wanes.
Hedge Funds Bail Just Before OPEC-Driven Oil Rally Vanishes (Bloomberg)
Hedge funds jumped out of the oil market just in time.
Before West Texas Intermediate crude nosedived on Thursday, wiping out the rally driven by OPEC’s deal, money managers slashed bets on rising prices by 20 percent, according to U.S. Commodity Futures Trading Commission data.
U.K. Consumer Spending Weakens With Sharp Slowdown in April (Bloomberg)
U.K. consumer-spending growth slowed in April and is forecast to remain weak in the coming months, according to a report from Visa.
China's April trade growth slows as commodities, electronics demand cools (Reuters)
China's import growth slowed faster than expected in April, as inbound shipments of commodities such as iron ore and copper weakened, while export growth more than halved, in line with a general cooling in demand for electronic gadgets.
Chinese Tycoons Plant Money Management Flags on Wall Street (Bloomberg)
When a new hedge fund opened in Mountainside, New Jersey, a leafy suburb that still holds an annual little-league parade, few would have guessed where much of its funding came from: Chinese billionaire Cai Kui.
U.K. House Prices Post First Quarterly Decline Since 2012 (Bloomberg)
U.K. house prices recorded their first quarterly decline in more than four years, adding to signs that the property market is cooling.
Euro gives up gains as investors look to post-election France (The Guardian)
The euro rose to a six-month high in the wake of Emmanuel Macron’s convincing victory in the French election but the upside for the single currency could be short-lived, analysts warned.
Warren Buffett Speaks: 5 Takeaways from Berkshire’s Annual Meeting (The Wall Street Journal)
From trade to taxes, investing to insurance, and his sidekick covered a lot of ground this weekend.
Australia to hold new inquiry into 'Big Four' banks (Reuters)
Australia will hold an inquiry into competition in the country's financial system, following a series of scandals in the banking sector and public allegations against the "Big Four" banks of abuse of market power.
How Zombie Companies Stop Productivity Growth (Bloomberg)
The global economy is picking up steam, but that’s deceptive. The foundations of expansion are soft, marked by weak productivity growth and inequality. The two are related.
Puerto Rico Menaces Mutual Funds That Resisted Market Exodus (Bloomberg)
The biggest restructuring in the history of the U.S. municipal-bond market will fall heavily on hedge funds that wagered Puerto Rico wouldn’t go broke. But there’s plenty of little guys left holding the bag, too.
This Time Is Not Different, Because This Time Is Always Different (Seeking Alpha)
History repeats – the argument for abandoning prevailing valuation methods regularly emerges late in a bull market, and typically survives until about the second down-leg (or sufficiently hard first leg) of a bear.
These Cities Are the 10 Biggest Comeback Stories in U.S. Real Estate (Realtor.com)
Everyone loves a great comeback story.
And there are plenty to go around. Rocky. Steve Jobs. The Chicago Cubs. Jesus. Lil Bub (Google her!). And, with apologies to Jesus, perhaps the most impressive comeback of all, the one that hits us exactly where we live: the housing industry.
Companies
JD.com Posts First Profit as Chinese Online Shopping Surges (Bloomberg)
JD.com Inc. posted its first quarterly profit as a public company, with the integration of Wal-Mart Stores Inc.’s Chinese web business and strong consumer spending driving a surge in sales.
Sinclair Broadcast nears deal for Tribune Media (Reuters)
Sinclair Broadcast Group Inc (SBGI.O) is nearing a deal to acquire Tribune Media Co (TRCO.N) for close to $4 billion after prevailing in an auction for one of the largest U.S. television station operators, according to people familiar with the matter.
With eye on millennials, Coach buys Kate Spade (Reuters)
Handbag maker Coach Inc (COH.N) said it would buy Kate Spade & Co (KATE.N) for $2.4 billion as it looks to tap the popularity of its smaller rival's quirky satchels and totes among millennials.
Akzo's Third Snub of PPG Raises Prospect of Hostile Approach (Bloomberg)
Akzo Nobel NV rejected PPG Industries Inc.’s third takeover bid in favor of its own breakup strategy, raising the prospect that the U.S. rival will go hostile with its $29.5 billion offer for the Dutch coating and chemical company.
Straight Path gets higher offer from unnamed bidder (Reuters)
Straight Path board determines that a revised offer from a multi-national telecommunications company to acquire Straight Path for $184.00 per share constitutes a “superior proposal”.
Warren Buffett uses furniture to explain why Berkshire Hathaway doubled its AAPL holdings in January (9To5Mac)
Billionaire investor Warren Buffett has explained why Berkshire Hathaway doubled its AAPL holdings in January, stating that he used his understanding of the furniture market to appreciate the strength of the iPhone.
Here's the letter Spotify's founders wrote to the EU complaining Apple and Google are abusive (Business Insider)
The chief executives of European tech firms including Spotify, Deezer, and the German startup factory Rocket Internet wrote to the EU complaining that big internet firms "can and do abuse their privileged position" when it comes to mobile. The Financial Times first reported the story on Friday.
Google Moves In And Wants To Pump 1.5 Million Gallons Of Water Per Day (NPR)
When three sacred staples of the South weren't safe from the cloudy, salty water in his town, Clay Duffie knew there was a problem.
Technology
German companies plan European online personal data firm (Reuters)
German finance, auto and publishing firms are in talks to form a European company to store personal data securely so customers can make purchases online from different outlets without punching in their details each time.
AI Is the Future of Cybersecurity, for Better and for Worse (Harvard Business Review)
In the near future, as artificial intelligence (AI) systems become more capable, we will begin to see more automated and increasingly sophisticated social engineering attacks.
'iPhone 8' Production on Schedule for September Launch, October Sales (MacRumors)
Apple will begin selling its new range of iPhones in October Apple will begin selling its new range of iPhones in October this year following a September unveiling, according to a report out on Monday.
People are really starting to embrace electric cars (Engadget)
As with any new transportation technology, it's not as simple as building your first vehicle and expecting the whole world to change. And yet, it appears as if the world is finally cottoning on to this whole electric cars are better and cheaper to run thing.
Politics
What We Know About Congress’s Russia Investigations (Bloomberg)
Congressional committees and the Federal Bureau of Investigation have been trying to determine the scope of Russian interference in the 2016 election. Hearings have been somewhat sporadic, but they could be a recurring thorn for the president.
Macron wins French presidency, to European allies' relief (Reuters)
Emmanuel Macron was elected French president on Sunday with a business-friendly vision of European integration, defeating Marine Le Pen, a far-right nationalist who threatened to take France out of the European Union.
Macron Vows to Heal France’s Divisions After Victory Over Le Pen (Bloomberg)
Emmanuel Macron pledged to heal France’s rifts after his victory over Marine Le Pen in the presidential election, saying that he’ll work to address the concerns that were exposed during one of the most divisive campaigns of recent history.
Obama Urges Congress to Show ‘Courage’ on Health Care (Associated Press)
Former President Barack Obama, in his first public comments about the ongoing debate over his signature health care plan, implored members of Congress on Sunday to demonstrate political courage even if it goes against their party's positions.
Germany's SPD goes back to drawing board after state poll drubbing (Reuters)
Germany's Social Democrats (SPD) reviewed a "difficult situation" on Monday after a second regional poll defeat this year, losing momentum as they gear up to challenge Chancellor Angela Merkel in September's national election.
Merkel Gains Momentum in German State Vote as Rivals Slump (Bloomberg)
Angela Merkel’s party picked up momentum in a German state election, convincingly defeating the Social Democrats who want to unseat the chancellor in the national vote in September.
'Brexit boom' gives Britain record 134 billionaires, fuelling inequality fears (The Guardian)
Britain has more billionaires than ever in what equality campaigners said was a clear sign the UK economy is only working for the few at the top.
A Reverse-Trump Tax Plan Delivers an Economic Miracle in Sweden (Bloomberg)
High taxes, strong unions and an equal distribution of wealth.
That’s the recipe for success in a globalized world, according to Magdalena Andersson, the Social Democratic economist who’s also Sweden’s finance minister.
U.S. reviews Syria safe zones but warns 'devil's in the details' (Reuters)
U.S. Defense Secretary Jim Mattis said on Monday the United States would closely examine proposed de-escalation zones aimed at easing Syria's civil war but warned "the devil's in the details" and that much needed to be worked out.
Syria will abide by 'de-escalation' plan: foreign minister (Reuters)
Syria's foreign minister said on Monday that his government would abide by the terms of a Russian plan for "de-escalation" zones so long as rebels also observed it.
Appeals court set to hear arguments on Trump's revised travel ban (Reuters)
President Donald Trump's temporary travel ban on people entering the United States from six countries faces its latest legal test on Monday before a federal appeals court in Virginia.
Obama urges Congress to show 'courage' on health care (Chicago Tribune)
Former President Barack Obama, in his first public comments about the ongoing debate over his signature health care plan, implored members of Congress on Sunday to demonstrate political courage even if it goes against their party's positions.
Left launching blitz against Republicans who backed Obamacare repeal (Politico)
Progressive activists are ready to inflict pain on Republicans who helped push the Obamacare repeal-and-replace bill through the House last week.
Ex-Obama administration officials to testify in Trump-Russia probe (Reuters)
Two officials in former President Barack Obama's administration will testify on Monday in a Senate investigation into allegations of Russian meddling in the 2016 U.S. election and possible collusion between President Donald Trump's campaign and Moscow.
Macron’s Balancing Act: Winning Respect for Office Without Seeming Distant (Bloomberg)
Emmanuel Macron has many challenges awaiting him when he becomes president of France. But one of the most difficult will be winning back popular respect for the office he’ll soon inhabit, while convincing skeptical voters that he’s not a distant elitist.
Rush to get bailout deal to Parliament with eye on QE (Ekathimerini)
After rallying his ministers, Prime Minister Alexis Tsipras must now get coalition MPs behind him for a new multi-bill of austerity measures that is set to go to Parliament this coming week.
Life on the Home Planet
Yankees Outlast Cubs in 48-Strikeout, 18-Inning Marathon (NY Times)
When Aaron Hicks slid across home plate, ahead of an errant throw from Chicago Cubs shortstop Addison Russell, he was tugged at by competing emotions.
Iran warns will hit militant 'safe havens' inside Pakistan (Reuters)
The head of the Iranian armed forces warned Islamabad on Monday that Tehran would hit bases inside Pakistan if the government does not confront Sunni militants who carry out cross-border attacks.
