Financial Markets and Economy
The U.S. Has Forgotten How to Do Infrastructure (Bloomberg)
The nation once built things fast and cheaply. Now experts are puzzled why costs are higher and projects take longer than in other countries.
Morgan Stanley CEO Sees Trading Drop Similar to JPMorgan, Bank of America (Bloomberg)
Morgan Stanley Chief Executive Officer James Gorman indicated his firm is seeing similar trading declines as competitors JPMorgan Chase & Co. and Bank of America Corp., which said second-quarter trading revenue is on pace to drop at least 10 percent.
China's Caixin PMI Dips Below 50 for First Time in 11 Months (Bloomberg)
A private gauge of Chinese manufacturing fell back into contractionary territory in May, adding to recent evidence that the economy’s strong start to 2017 is leveling off.
This survey says China's manufacturing sector isn't as strong as the government says it is (Business Insider)
Scepticism over the accuracy of Chinese economic data has just gone up notch following the release of the Caixin-IHS Markit manufacturing PMI report for May, with the survey painting a very different picture on the health of China’s industrial sector compared to the government’s figures released on Wednesday.
This Is What the Demise of Oil Looks Like (Bloomberg)
From giant companies like Exxon Mobil Corp. to OPEC members such as Saudi Arabia, oil producers say their industry will enjoy decades of growth as they feed the energy needs of the world’s expanding middle classes.
The California Senate Appropriations Committee has vastly overstated the new costs of creating a single-payer health system for the Golden State, according to a national authority on healthcare spending.
Is China Headed for a Recession? (Bloomberg)
For the first time ever, China is facing a dreaded prospect: the inverted bond yield curve. The phenomenon, in which long-term interest rates sink below short-term interest rates, has caused some consternation among market-watchers, who know it's traditionally a harbinger of recession.
Moody’s China downgrade will have a longer term policy impact (Business Insider)
It took less than a day for China’s financial markets to recover from the credit rating downgrade by Moody’s Investors Service on 24 May, the country’s first sovereign rating downgrade from the rating agency since 1989.
India GDP Growth Slowed to 6.1% Last Quarter (The Wall Street Journal)
The surprise slowdown suggested that Prime Minister Narendra Modi’s move late last year to void all high-value bank notes continued to choke demand, even as cash was starting to make its way back into Indians’ pockets.
Fed's Williams bullish on U.S. economy, sees total three rate hikes this year (Reuters)
San Francisco Federal Reserve Bank President John C. Williams said on Thursday he sees a total of three interest rate increases for this year as his baseline scenario, but views four hikes as also being appropriate if the U.S. economy gets an unexpected boost.
Bleecker Street’s Swerve From Luxe Shops to Vacant Stores (NY Times)
Someday urban planners and retail executives may want to debrief Robert Sietsema. As someone who has lived at the corner of Bleecker and Perry Streets for 27 years, he has witnessed the rise and fall of a luxury shopping district that grew out of workaday surroundings in the 1990s and has left empty storefronts in its wake.
US Driving Toward The Future Of Fuel Economy Standards, But Which Direction? (S&P Global Platts)
The Trump administration has reopened a review of 2022-2025 fuel economy standards, which have a major impact on the vehicles automakers produce and, arguably, a modest impact on petroleum demand in the future.
Even as Wind Power Rises, It Falls Under a Political Cloud (NY Times)
Wind farms, with their rapid geographic spread and technological advances, are reshaping the electric system, defying skepticism that they are steady or reliable enough to displace conventional power plants.
The New York Fed DSGE Model Forecast—May 2017 (Liberty Street Economics)
This post presents our quarterly update of the economic forecasts generated by the Federal Reserve Bank of New York’s dynamic stochastic general equilibrium (DSGE) model.
What Will The Business Look Like In Ten Years (Valule Walk)
Many of the Investment Masters focus on businesses with longevity and which are likely to be doing the same thing in ten years’ time as they are doing today. Often these are simple and boring businesses that have some form of competitive advantage which makes it hard for other businesses to compete with them. What Warren Buffett would call a moat.
Five Big Reasons Why People Are Still Skeptical About Bitcoin (Bloomberg)
The digital currency’s more than 100 percent surge in the past two months looks eerily familiar, argue the bears, pointing to November 2013, when the price quintupled in short order to top $1,000 for the first time.
Stop Smoking: It's Deadly and Bad for the Economy (The World Bank)
Higher taxes on tobacco products reduce tobacco consumption and improve public health, while also increasing government revenues that can be used to fund priority investments and programs that benefit the entire population.
NYPost Claims Trump Administration Spying On Press To Find Leakers (Zero Hedge)
In what is bound to create mass hysteria among the mainstream media, NYPost's bombastic columnist John Crudele reports that the Trump administration is spying on a number of journalists in an effort to flush out The White House leakers.
Short Squeeze Tomorrow in The Oil Market (EconMatters)
We discuss the Oil Market in this market video, there may be too much pessimism in the oil market right now. Everyone seems to be very bearish right now, and I am not sure people understand the seasonality aspect of the Oil Market.
China Manufacturing Contracts For The First Time In A Year: "The Economy Is Clearly On A Downward Trajectory" (Zero Hedge)
Following yesterday's official (if less credible and focused mostly on SOEs) manufacturing and non-mfg PMI reports from China's National Bureau of Statistics, both of which came either in line or slightly better than expected, moments ago Caixin/Markit reported its own set of Chinese manufacturing data, and it was far more disappointing: at 49.6, not only did it miss expectations of 50.1, but by printing below 50, the operating conditions faced by Chinese goods producers deteriorated for the first time in nearly a year.
Russian Lawmaker Issues Sobering Threat: We're Willing To Use Nukes To Defend Crimea (Zero Hedge)
As of late, the media has forgotten about tensions between Ukraine, NATO, and Russia. Crimea and the conflict in Eastern Ukraine have largely left the public’s awareness.
Companies
Uber Limits Loss to $708 Million in First Quarter (NY Times)
The company said Wednesday that it lost $708 million over the first three months of the year on revenue of $3.4 billion, not counting expenses like employee stock compensation. That is a narrowing of the previous quarter’s loss of $991 million, on revenue of $2.9 billion.
United Faces $435,000 Fine, Accused of Flying Plane 23 Times Without Inspecting Repair, F.A.A. Says (NY Times)
United Airlines is facing a fine of $435,000 from the Federal Aviation Administration, which said Tuesday that the airline flew a Boeing 787 passenger airplane that was potentially unsafe nearly two dozen times on domestic and international flights in 2014.
Chinese Maker of Ivanka Trump’s Shoes Looks for Cheaper Labor (NY Times)
The Chinese factory workers who make shoes for Ivanka Trump and other designers gather at 7:40 every morning to sing songs.
Technology
HP Inc CEO says an intern helped spur 'the birth of a new category' in printing (CNBC)
When it comes to innovation, HP Inc. is no laggard. And according to President and CEO Dion Weisler, it was a high school intern that prompted his team to create the company's new blockbuster printing device, the HP Sprocket.
In Brooklyn, you can now sell solar power to your neighbors (Grist.org)
In Brooklyn, you can buy honey collected from an urban bee hive. You can buy lettuce grown atop an old bowling alley.
Cessna Flights for the Masses (Bloomberg)
A startup in San Francisco is trying to redraw the map by tapping into a system that’s largely invisible to everyday travelers: the country’s 3,000 general aviation airports and 10,000 charter aircraft.
This Machine Just Started Sucking CO2 Out Of The Air To Save Us From Climate Change (Fast Company)
Sitting on top of a waste incineration facility near Zurich, a new carbon capture plant is now sucking CO2 out of the air to sell to its first customer. The plant, which opened on May 31, is the first commercial enterprise of its kind.
Sorry Siri – You're The Dumbest "Smart" Assistant Out There (Zero Hedge)
Many industry experts predict that our interactions with computing devices will move away from text-based input towards voice-based input in the future. Smartphones, voice-enabled speakers and other devices already come with so-called smart assistants such as Siri, Cortana or Google Assistant.
Politics
Conservative groups are pressuring advertisers to drop Rachel Maddow’s program (Salon)
After Bill O’Reilly was fired in the wake of a boycott — and a similar boycott effort has targeted Sean Hannity — one conservative group is going after the best-rated liberal commentator: MSNBC’s Rachel Maddow.
Trump Considers Rolling Back Obama’s Opening With Cuba (NY Times)
President Trump is considering reversing major pieces of the Obama administration’s opening with Cuba and reinstating limits on travel and commerce, citing human rights abuses by the Castro government as justification for a more punitive approach.
CNN fires Kathy Griffin in response to bloody Trump head image (Salon)
Following the public outcry against an image showing the comedian holding what could be seen as the bloody, severed head of President Donald Trump, CNN has announced that it will not be working with Kathy Griffin any longer.
The Art of Bulls**t In The Trump White House (CC)
Even though President Trump received harsh criticism for how he behaved on his first foreign trip, the White House is peddling the outing as a consummate success.
White House issues ethics waivers to former lobbyists and senior officials (Reuters)
The White House on Wednesday disclosed a group of former lobbyists working in President Donald Trump's administration who have been issued ethics waivers, following a request from the US government's ethics agency.
India's Tax Revamp Is Likely to Create Some Havoc (Bloomberg)
There can be no gain without pain and that may be especially true when it comes to taxes. As about 160 countries overhauled their indirect tax systems, they confronted numerous challenges. Latecomer India is unlikely to escape some havoc.
Trump’s ‘Covfefe’ Tweet Remains a Mystery (The Wall Street Journal)
The White House is keeping America guessing about the meaning—if there is any—of President Donald Trump’s enigmatic overnight tweet about “covfefe” that immediately shot to meme stardom.
Politicians who oppose climate action are now sad about the consequences (Think Progress)
The Great Barrier Reef, which in 2016 experienced the largest die-off of coral in its history, cannot be saved in its current form, a panel of Australian experts warned over the weekend.
Mick Mulvaney: The day of the CBO 'has probably come and gone' (The Washington Examiner)
White House Office of Management Director Mick Mulvaney on Wednesday opened fire on the Congressional Budget Office, asserting in an interview with the Washington Examiner that the day of the institution as an authoritative non-partisan arbiter of legislation "has probably come and gone."
Trump administration moves to return Russian compounds in Maryland and New York (The Washington Post)
The Trump administration is moving toward handing back to Russia two diplomatic compounds, near New York City and on Maryland’s Eastern Shore, that its officials were ejected from in late December as punishment for Moscow’s interference in the 2016 presidential election.
House Committee Subpoenas Flynn, Cohen in Russia Probe (Bloomberg)
Fired national security adviser Michael Flynn and President Donald Trump’s longtime personal lawyer, Michael Cohen, were subpoenaed Wednesday by the House Intelligence Committee.
Co-Author of Art of the Deal Says Trump Will Resign, then Declare Victory (Economy & Markets Daily)
This is what I predicted the day after Trump’s election.
He has the impulse control of a grease fire. And he certainly can’t admit when he’s wrong, even though he changes his mind on one policy or view after the next.
Congress investigating another possible Sessions-Kislyak meeting (CNN)
Congressional investigators are examining whether Attorney General Jeff Sessions had an additional private meeting with Russia's ambassador during the presidential campaign, according to Republican and Democratic Hill sources and intelligence officials briefed on the investigation.
Trump’s reported exit from Paris climate deal signals end of the American Century (Think Progress)
President Donald Trump’s stunning words and actions to our European allies this week?—?culminating in reports that he will exit the historic Paris climate agreement?—?signal the end of the American Century.
Comey to Testify That Trump Asked Him to Back Off Flynn Investigation (The Wall Street Journal)
Former FBI Director James Comey is expected to testify as early as next week before a Senate committee that President Donald Trump asked him to back off the investigation of former national security adviser Mike Flynn, according to a person familiar with the matter.
Trump Administration Explores More Drilling in Alaska (The Wall Street Journal)
The Trump administration ordered a review of oil reserves and production on Alaska’s vast public lands, an early step in potentially opening more areas of the state to drilling—including the now-protected Arctic National Wildlife Refuge.
The Trump administration is teeing up a devastating blow to birth control access (Think Progress)
The Trump administration could soon give nearly all employers the ability to request an exemption to the birth control coverage mandate by citing religious or moral reasons, according to a leaked draft of the new rule obtained by Vox.
Health and Biotech
There's an 'explosion of innovation' in new cancer therapies — but it has one big drawback (Business Insider)
That surge in treatments is coming with a higher cost. In 2016, global spending on cancer treatments hit $113 billion — up from $107 billion in 2015, according to a report released Thursday by the QuintilesIMS Institute. Those costs are expected to hit $147 billion by 2021, slightly down from the report's projections last year.
Trials of Embryonic Stem Cells to Launch in China (Scientific American)
In the next few months, surgeons in the Chinese city of Zhengzhou will carefully drill through the skulls of people with Parkinson’s disease and inject 4 million immature neurons derived from human embryonic stem cells into their brains. Then they will patch the patients up, send them home and wait.
Life on the Home Planet
The strangest star in the galaxy is acting up again (Salon)
It’s a news story 1,280 years in the making. That’s about how many light years from Earth sits KIC 8462852, also known as Tabby’s Star, whose bizarre pattern of dimming and brightening is so unusual that some scientists have theorized its behavior could be accounted for by an alien structure periodically occluding its light source.
Waves rippled through Greenland’s ice (Climate Central)
On its surface, the Greenland ice sheet is a vast expanse of seemingly immovable ice. But beneath the monotonous stretch of white, scientists have discovered evidence of waves rippling through one of its outlet glaciers and roiling its innards.
The 25 Cheapest Places To Travel This Summer (Forbes)
There's nothing like a summer vacation, but it can also be one of the most expensive times to take a trip. Depending on where you want to go, airfares are sky high and hotels are at a premium.
Public knowledge about science has a limited tie to people’s beliefs about climate change and climate scientists (Pew Research Center)
Scholars have long debated the role knowledge about and understanding of science plays in shaping people’s views on science issues. The common supposition is that when ordinary people have different views from those of experts that the differences stem from knowledge gaps: If people knew more, the argument goes, they would agree with the experts.
Rule to limit mercury and arsenic in waterways is delayed by the EPA (Think Progress)
The Environmental Protection Agency would like to delay an Obama-era rule that limits the amount of toxins power plant operators can dump into waterways, the agency announced late last week.
7 ways to make yourself absolutely miserable (Holy Kaw)
It’s all too easy to become consumed with endless, effortless happiness, so take a huge wrong turn for a change, and maximize your misery with these tips from CGP Grey.
Tween ventriloquist stuns on “America’s Got Talent” (Holy Kaw)
12-year-old Darci Lynne had better overcome her shy streak quick, because, thanks to her stellar singing ventriloquist performance, the world now knows her name.
