Financial Markets and Economy
Investors Just Pulled the Most Cash From Small Caps in a Decade (Bloomberg)
Investors pulled $3.5 billion from the biggest exchange-traded fund that tracks the Russell 2000 Index last week, spooked by the steepest selloff in the domestically focused stocks since before Donald Trump’s surprise election win.
Japan manufacturers' mood slips despite economic recovery: Reuters Tankan (Reuters)
Confidence among Japanese manufacturers receded in May for the first time in nine months after hitting a decade-high level April, a Reuters survey found, showing guarded optimism in a nascent export-led economic recovery.
OPEC Wants to Carry on Pumping Less and Earning More (Bloomberg)
At first glance, OPEC’s cuts haven’t worked — global oil inventories remain well above normal levels. But the policy’s made a difference where it really counts: juicing the coffers of finance ministries from Baghdad to Caracas.
ECB Says Higher Yields Could Trigger New Debt Concerns (Bloomberg)
The European Central Bank said debt-sustainability concerns have risen in the past six months amid a potential increase in yields and political uncertainty in some countries.
Oil Shrugs Off U.S. Supply Drop as Investors Await OPEC Meeting (Bloomberg)
Oil investors shrugged off declining U.S. stockpiles as they held their breath ahead of OPEC’s meeting on Thursday.
Iran's Maxed-Out Crude Output Eases OPEC Push to Extend Cuts (Bloomberg)
Iran’s oil industry bounced back from sanctions last year, cranking up output to recover market share from other OPEC producers. Now that its surge has topped out, Iran supports an extension of the group’s cuts to preserve those gains.
There are tons of newly built homes – just the wrong kind (CNBC)
Ask anyone house hunting this spring, and they'll tell you there are far too few homes for sale. But, really, it's the price tags of the homes for sale that are the issue.
China Can’t Sustain Its Debt-Fueled Binge, Moody’s Says (NY Times)
China has gone on a spending spree, borrowing money to build cities, create manufacturing giants and nurture financial markets — money that has helped drive the economic powerhouse in recent years. But the debt-fueled binge now threatens to sap the energy of the world’s second-largest economy.
Renewable Energy Powers Jobs for Almost 10 Million People (Bloomberg)
The renewable energy industry employed 9.8 million people last year, up 1.1 percent from 2015, led by the solar photovoltaic business, according to the International Renewable Energy Agency’s annual report on the industry.
China's Stocks, Yuan Erase Losses Triggered by Moody's Downgrade (Bloomberg)
China’s financial markets quickly brushed off Moody’s Investors Service’s decision to cut its rating on the nation’s debt for the first time in almost three decades, with stocks, bonds and the currency little changed.
Can investors afford to shrug off China’s credit downgrade? (Market Watch)
Moody’s Investors Service’s first downgrade of China’s sovereign rating in nearly 30 years on Wednesday has refocused attention on the country’s addiction to debt.
China’s Downgrade: It’s Not Just About the Government (The Wall Street Journal)
In a sign of the times, Moody’s has cut China’s credit rating for the first time in nearly three decades. Investors in China Inc. and its banks should heed the warning.
MSCI Sees `Lot of Issues' to Solve on China Stock Inclusion (Bloomberg)
MSCI is about half-way through consulting its clients, with about 100 left to go ahead of the June 20 announcement on the decision, according to Fernandez.
Bitcoin Surge Is Driven by People Leaving Riskier Digital Currencies, Say Execs (Bloomberg)
Bitcoin’s dramatic surge may be more than just a speculative frenzy. The recent rally is being driven partially by enthusiasts rotating out of riskier digital assets and into the more established cryptocurrency, according to industry executives.
When do markets close for Memorial Day? (Market Watch)
U.S. financial markets will be closed on Monday in observance of Memorial Day, to honor the men and women who have lost their lives while serving in the military.
Africa subsidises the rest of the world by over $40 billion in one year, according to new research (Global Justice)
Much more wealth is leaving the world’s most impoverished continent than is entering it, according to new research into total financial flows into and out of Africa.
Where US Manufacturing Jobs Really Went (Project Syndicate)
In the two decades from 1979 to 1999, the number of manufacturing jobs in the United States drifted downward, from 19 million to 17 million. But over the next decade, between 1999 and 2009, the number plummeted to 12 million.
The contrarian investor’s best bet is coming down the pike (Market Watch)
That’s the view of most economists. As a group, they think second-quarter gross domestic product growth will come in at 2.5%, compared with 0.7% in the first quarter.
Does the World End in Fire or Ice? Thoughts on Japan and the Inflation/Deflation Debate (Of Two Minds)
Do we implode in a deflationary death spiral (ice) or in an inflationary death spiral (fire)? Debating the question has been a popular parlor game for years, with Eric Janszen's 1999 Ka-Poom Deflation/Inflation Theory often anchoring the discussion.
Russia pushes for 9-month extension of OPEC/non-OPEC cuts, but other options in play (S&P Global Platts)
Despite leading efforts to extend the OPEC/non-OPEC oil output deal by nine months, Russian energy minister Alexander Novak said Wednesday "several options" were still being considered by the producer coalition.
Catalonia Threatens Immediate Declaration of Independence if Spain Doesn’t Approve Referendum (MishTalk)
The constitutional crisis in Spain may be coming to a head quickly according to a leaked document on a “Secret Law for Catalonia Independence” as reported by El Pais.
There's really only one thing to wonder about after the Moody's China downgrade (Business Insider)
There's really only one thing to wonder about now that Moody's has downgraded China's credit rating, and that's what it means for Janet Yellen and the Federal Reserve.
Most Of World Still Overbought (Bespoke Investment Group, Seeking Alpha)
Below is an updated look at our country trading range screen, which gives viewers a quick look at where global equity markets are trading within their normal ranges.
The S&P Remains in a Bullish Pattern as the VIX Stalls (Investopedia)
Wednesday's sharp sell-off in equity markets saw the S&P 500 shed nearly 2 percent. Some analysts were calling the end of the bull rally, saying White House chaos has finally caught up with investors. However, as markets pared gains, both the S&P and the CBOE VIX Index failed to breach key technical levels, so the bull rally has remains in tact.
Companies
Cheniere Energy, Inc.: Buy at the High? (Fool.com)
Cheniere Energy (NYSEMKT: LNG) and its two affiliates,Cheniere Energy Partners Holding(NYSEMKT: CQH) and Cheniere Energy Partners (NYSEMKT: CQP), have been riding high this year, with all three stocks recently touching 52-week highs.
BlackBerry shares jump to to a four-year high (Reuters)
BlackBerry Ltd shares surged to a four-year high in Toronto on Tuesday, extending a two-month rally spurred on by expectations for strong growth in the fast-expanding cyber security and automotive software markets.
Time to Buy Valeant Pharmaceuticals (VRX) (Investopedia)
Bill Ackman’s Pershing Capital sold its 27.2-million share Valeant Pharmaceuticals International, Inc. (VRX) position in March, recovering around $11 per share after buying at an average price of $177 in 2015.
Sears takes more actions to survive (USA Today)
The parent company of Sears and Kmart, which has been paring costs and hoarding cash in a bid to survive, said Tuesday that it will put off repaying much of a $500 million loan to help shrink its debt.
Jaguar Land Rover's Profit Margin Improves on China, U.S. Demand (Bloomberg)
Tata Motors Ltd. headed for the biggest advance in six months after its luxury-car unit Jaguar Land Rover said new models will help it expand profit margins.
If At First You Don't Succeed… A Timeline Of Elon Musk's Long List Of Failures (Zero Hedge)
At first glance, it’s easy to be impressed by Elon Musk’s impressive resume. He’s shooting for the stars with SpaceX, changing the future of transportation with Tesla, Hyperloop, and The Boring Company, and he’s already had a profound impact on the e-commerce and payments sectors through Paypal.
Blockchain consortium R3 raises $107 million (Tech Crunch)
After years of development and flickering just outside of mainstream consciousness and acceptance, record high prices for the most popular blockchain-based cryptocurrencies Bitcoin and newcomer Ethereum and an embrace of the technology’s core principles by some of the world’s largest institutions may mean that blockchain technology is ready for its close up.
U.S. Sues Fiat Chrysler, Accusing It of Using Software to Pass Emissions Tests (NY Times)
The federal government filed a lawsuit against Fiat Chrysler Automobiles on Tuesday, accusing it of using illegal engine-control software to enable its diesel-powered vehicles to pass emissions tests.
Technology
GoPro Is Looking Beyond Hero Cameras for Growth (Fool.com)
If GoPro Inc (NASDAQ: GPRO) is going to mount any sort of recovery in the next year or two, it's not going to do it on the back of Hero cameras. The Hero line that made GoPro what it is has limited opportunities for growth and margins continue to be under pressure versus where they were a couple of years ago.
Apple predictably tops another customer satisfaction report, but the iPhone SE leads the device pack (PocketNow)
After winning gold in J.D. Power’s smartphone satisfaction competition just a couple of months back, taking home a similar smartwatch crown last year, as well as edging out Samsung in American mobile device customer gratification earlier in 2016, Apple once again tops the charts today.
Pinterest's new feature sounds like the 'Shazam for food' pitch from 'Silicon Valley' (SF Gate)
Pinterest's newly announced feature sounded pretty familiar for anyone who has been keeping up with season 4 of HBO's "Silicon Valley": The popular app launched a food recognition camera feature Tuesday that matches a user's image to recipes using that ingredient.
Acer launches Predator Z35P ultrawide curved gaming monitor (The Verge, Circuit Breaker)
Curved monitors are great for gaming. Acer’s been making them for a while, going back to the 35-inch Predator Z35 from 2015. Now the company has announced the Predator Z35P, an updated version of the Z35 that offers even better resolution than the original, as first spotted by AnandTech.
Politics
WATCH: Comedian D.L. Hughley dishes on Donald Trump, James Comey and impeachment (Salon)
“A black man’s Harvard education doesn’t matter as much to the American society as a white dude’s luck,” actor, comedian and show host D.L. Hughley said during an edition of “Salon Talks” the other night.
Mick Mulvaney tries to sell Trump’s draconian budget cuts as an act of “compassion” for the rich — and even Republicans don’t buy itThe White House delivered President Donald Trump’s first full budget to Congress on Tuesday, and Office of Management and Budget (OMB) director Mick Mulvaney promptly tried to spin $4.1 trillion in proposed cuts to social services as an act of “compassion” for wealthy taxpayers.
Trump Blamed for Job Losses as India Tech Workers Face Cuts (Bloomberg)
Swapana Bhosale was stunned when she found out earlier this month she was losing her job at tech services provider Cognizant Technology Solutionsin India. Layoffs in the business are rare, particularly if employees are in the middle of client assignments like she was.
Why Work Requirement Became a Theme of the Trump Budget (NY Times)
The new White House budget proposal is built on a deep-rooted conservative belief: The government should help those who are willing to work, and cull from benefit rolls those who aren’t.
“RussiaGate” has become a catastrophic failure of leadership — and a debacle from which the Trump presidency will not recover (BillMoyers.com)
A little more than a week ago, I said on CNN and wrote on Facebook that — based on reporting I’d just completed in Washington DC — it was clear that the controversy surrounding Russian contacts with advisers to President Donald J. Trump and his campaign team was about to become much more serious and much more directly focused on the president himself, and would have deeply troubling consequences for our democracy.
Trump’s Problematic Math: Budget Plan Adds Growth, but Doesn’t Subtract Cost (NY Times)
President Trump’s budget proposal unveiled on Tuesday purported to show the benefits of cutting taxes on businesses and consumers: By the end of the decade, faster growth could balance the federal budget.
Pope Lends Weight to G-7 Push to Bind Trump to Climate Deal (Bloomberg)
Pope Francis joined an international chorus urging Donald Trump to meet U.S. commitments on climate change in talks at the Vatican Wednesday.
Ignore the lofty rhetoric: Trump’s budget proposal is a massive tax cut paid for by brutally gouging the needyHalfway through Mick Mulvaney’s press briefing on the Trump administration’s newly released budget proposal on Tuesday, I imagined his head morphing into that of a turkey vulture.
Here are the 66 programs eliminated in Trump's budget (The Hill)
President Trump's fiscal 2018 budget proposal would completely eliminate 66 federal programs, for a savings of $26.7 billion.
China, EU and Canada Form Climate Pact as Trump Stands Alone (Bloomberg)
China, Canada and the European Union are joining forces to advance the Paris Agreement while President Donald Trump is still deciding whether the U.S. should stick with the landmark deal on climate change.
Former C.I.A. Chief Reveals Mounting Concern Over Trump Campaign and Russia (NY Times)
As Russian hackers and propagandists tried to manipulate the American election last year, the C.I.A. noticed a series of suspicious contacts between Russian government officials and associates of Donald J. Trump’s campaign, John O. Brennan, the former C.I.A. director, said Tuesday.
Trump’s Islam Speech in Saudi Arabia Paves Way for America’s next Big War (Anti Media)
The American public is most likely unaware of the giant stranglehold Saudi Arabia has on the U.S. government. Saudi Arabia uses its vast riches to manipulate the U.N., which explains how a country that brutally oppresses its female population was recently gifted a seat on the organization’s women’s rights commission.
Trump's Budget Plan Will Cut $800 Billion from These Medicaid Programs (Money Morning)
President Trump's budget plan – due to be released tomorrow (May 23) – is expected to cut some $1.7 trillion worth of government programs.
Life on the Home Planet
How American cities keep food trucks off their streets (The Economist)
When gourmet food trucks first appeared on America’s streets in 2008, many dismissed them as a fad. Nearly a decade later, it is clear that the trendy trucks—known for offbeat dishes, low prices and clever use of social media—are here to stay.
How NASA Might Push Aerospace's Next Big Propulsion Breathrough (Forbes)
What does fast food have to do with interstellar travel? At first blush, not much. But halfway through the film, “The Founder,” on a grueling, recent ten hour flight, it hit me that aerospace, even NASA, might learn something from McDonald’s corporation founding CEO Ray Kroc.
Around the World in 30 Steaks: The Best From Las Vegas to Tokyo (Bloomberg)
Restaurant food doesn't get much simpler than a properly cooked chunk of beef—and rarely delivers so much pleasure.
Space Junk Blocks Our Way to the Stars (Bloomberg)
Danger lurks in Earth’s orbit as thousands of rogue objects speed around the planet—and you can’t exactly call a guy with a truck to come sweep it all up.
Organic Pesticide Maker To Harvest Bumper Profits (Forbes)
The growing interest in chemical-free food production has driven strong demand for Marrone Bio Innovations (MBI), which makes natural, organic pesticides.
