Financial Markets and Economy
The World’s $100 Trillion Question: Why Is Inflation So Low? (Bloomberg)
Central bankers and investors are grappling with a $100 trillion question: why consumer price inflation remains so low in most parts of the world even as economic growth quickens.
Australia's Annual GDP Slows Less Than Expected; Currency Surges (Bloomberg)
Australia’s economy slowed in the first quarter, constrained by weak net exports and a drop in housing investment. The currency jumped as annual growth beat expectations.
Five Questions About the Fed's $4.5 Trillion Balance Sheet (Bloomberg)
A lot is at stake. Simply maintaining that over-sized stack of bonds makes the Fed a big player in the markets for Treasury and mortgage-backed securities. Investors and traders are anxious for information about how the central bank intends to pull back.
Trump’s America Is Facing a $13 Trillion Consumer Debt Hangover (Bloomberg)
Americans faced with lackluster income growth have been financing more of their spending with debt instead. There are early signs that loan burdens are growing unsustainably large for borrowers with lower incomes.
China stocks rise, bucking Asian market retreats (Market Watch)
The planned public testimony by former FBI Director James Comey on Thursday continued to stoke concerns about U.S. political instability. Additionally, investors’ showed their nerves ahead of a European Central Bank policy meeting and the U.K. general election, both scheduled for Thursday.
Venezuela Tries to Resell $5 Billion Bond at Deep Discount (The Wall Street Journal)
Venezuela is attempting to resell at a deep discount $5 billion of bonds it originally issued in December through a Chinese brokerage as it struggles to squeeze through a tightening cash crunch, according to investors who were offered the bonds.
Draghi’s ECB may take ‘baby steps’ toward ending ultraloose monetary policy (Market Watch)
When ECB President Mario Draghi begins his news conference following the Governing Council meeting, in which the central bank is seen as virtually assured to leave monetary policy unchanged, his opening statement will be scrutinized for any subtle changes to language laying out the timetable and pace of the ECB’s asset-purchase program and rates.
Qatar's dispute with Arab states puts LNG market on edge (Reuters)
Saudi Arabia and key allies on Monday cut ties with Qatar, the world's top seller of liquefied natural gas (LNG), stoking concern over any supply disruptions to neighboring countries spilling over into global gas markets.
U.S. and Mexico dodge trade war over sugar in preview to NAFTA battle (CNN)
The agreement was seen as a test for both sides before they sit down for much bigger talks on NAFTA, the free trade deal between the U.S., Mexico and Canada. Those talks could begin in August.
Harvard Ditches Hedge Fund Run by Harvard Grad (Bloomberg)
Mindich, class of 1988, landed a coveted seat on Harvard’s endowment board after he become a partner at Goldman Sachs in the 1990s. In the 2000s, when he left the firm to start a hedge fund, the university invested $500 million.
Russia's plan to borrow in yuan stumbled over Panda bonds: deputy finance minister (Reuters)
Russia put off its plans to borrow in yuan the last minute as it did not meet a condition laid down by Beijing – to borrow by issuing Panda bonds on China's domestic market, Russia's deputy finance minister said.
Momentum Stocks Just Had Their Best Winning Streak in Nearly 25 Years (Bloomberg)
It’s the sudden torridness of momentum shares, which through last week quietly staged their longest streak of gains in a quarter century. The MSCI U.S. Momentum Index, which tracks companies with the most price appreciation in the last two to 12 months, rallied 11 straight days through Friday, the longest stretch since October 1992.
South Africa Has Second Recession in Eight Years (Bloomberg)
South Africa’s economy fell into a recession for the first time since 2009 after it contracted for a second straight quarter in the first three months of the year as all bar two industries shrank.
Qatari riyal under pressure as Saudi, UAE banks delay Qatar deals (Reuters)
Qatar's currency came under pressure on Tuesday as Gulf Arab commercial banks started holding off on business with Qatari banks because of the diplomatic rift in the region.
Don’t Count on China as Next Climate Crusader (The Wall Street Journal)
Multinationals and nonprofits teamed up with Chinese environmental groups to promote eco-friendly causes; Coca-Cola restored forests in the upper Yangtze. U.S. labs offered scientific support. Academics collaborated on research.
Q&A With Steve Schwarzman: “There Are No Brave Old People in Finance” (Bloomberg)
Steve Schwarzman seems strangely content—up to a point. A decade ago, the Blackstone co-founder, chairman, and chief executive officer was astride Wall Street as the private equity poster boy, armed with record-setting deals, a momentarily blockbuster initial public offering, and a birthday party that people are still talking about.
Robert Mueller Relinquishes Assignment on Air-Bag Victim Compensation (The Wall Street Journal)
The special counsel investigating Russia’s alleged interference in the 2016 presidential election relinquished an assignment steering compensation to victims of rupture-prone Takata Corp. air bags, potentially delaying nearly $1 billion in payouts to auto makers and consumers.
Companies
Uber fires 20 employees after harassment probe (Reuters)
Uber Technologies Inc [UBER.UL] said on Tuesday it fired 20 employees and was improving management training following an investigation by a law firm into sexual harassment allegations and other claims at the ride-hailing company.
J.Crew Says Mickey Drexler to Step Aside as CEO (The Wall Street Journal)
J.Crew Group Inc. said its longtime leader Mickey Drexler will step aside as chief executive and hand over those duties to an outsider, as the seller of preppy clothes struggles with a prolonged sales slump and hefty debt load.
Macy’s Remarks Spark Selloff (The Wall Street Journal)
Macy’s Inc. met with investors on Tuesday to lay out its strategy, but ended up triggering a new panic over the beleaguered retail sector.
Anthem’s Exit From Ohio Exchange Ups Ante for GOP Health Overhaul (The Wall Street Journal)
Anthem Inc. said it will pull out of the health-insurance exchange in Ohio next year, leaving a second region of the country poised to have no marketplace options under the Affordable Care Act and increasing pressure on Republicans as they seek to replace it.
Technology
New Tesla Model 3 orders unlikely to ship before end of 2018 (CNN)
"This will be a long wait," Tesla (TSLA) CEO Elon Musk said at the company's annual shareholder conference on Tuesday. "I'm guessing if you put a deposit down now, it's probably end of next year before you get it."
U.S. Climbs In Global 4G Availability But Lags In Speed, Report Says (Digital Trends)
Which country has the best 4G availability? Unsurprisingly, it’s South Korea. The U.S. takes fourth place, according to the OpenSignal‘s latest State of LTE report. The U.S. moved up six spots from last quarter’s report, where it was ranked 10th.
MacOS High Sierra: Our First Take (Digital Trends)
Another year, another MacOS update – and this new one is more of a refinement than an overhaul of Apple’s desktop operating system. Its predecessor, Sierra, introduced several quality-of-life improvements like Siri integration, Touch Bar support, and better disk management.
iOS 11 could use the iPhone’s NFC chip for more than Apple Pay (Engadget)
Apple may have an awkward history of avoiding and then embracing NFCin the past, but new developments at this week's Worldwide Developer's Conference indicate those days are long gone.
Why Apple’s HomePod won’t just collect dust on your shelf (Tech Crunch)
Apple brought its smart speaker into the world with a shoddy name and an unconventional pitch, but anyone brash enough to cast the device to the side so easily will surely pay the price. Apple, unlike Amazon and Google, understands that selling glorified intelligence-in-a-box as a method of human computer interaction lacks foresight — people want a product, not a technology.
How to use Google Earth and Street View to explore the planet (Popular Science)
For a long stretch of human history, you had to actually go somewhere to see what it looked like. Nowadays, it's much easier to check out the world's sights from the comfort of your own home.
Politics
Democrats aim to turn anti-Trump sentiment into votes in Virginia (Reuters)
Legislative candidate Jennifer Carroll Foy's first bid for office puts her on the front lines of a Virginia statewide election being watched for early hints on how voters feel about President Donald Trump.
Trump Says Arab Leaders Accused Qatar of Funding Extremism (Bloomberg)
President Donald Trump said Mideast leaders he met last month accused Qatar of financing extremism, remarks that analysts say may deepen Doha’s isolation as it faces unprecedented punitive measures from a Saudi-led alliance.
In Trump’s White House, Everything’s Coming in ‘Two Weeks’ (Bloomberg)
From overhauling the tax code to releasing an infrastructure package to making decisions on Nafta and the Paris climate agreement, Trump has a common refrain: A big announcement is coming in just “two weeks.” It rarely does.
Trump seeks legislative wins to cast off shadow of Russia probes (Reuters)
President Donald Trump pressed Republican congressional leaders on Tuesday to complete their overhaul of the U.S. healthcare system as lawmakers said they were making progress on a contentious effort that threatens to overwhelm their legislative agenda.
Will Privatized Air Traffic Control Put You in Danger? (Bloomberg)
In pressing to privatize air traffic control, the White House has revived one of the U.S. airline industry’s top policy priorities: stripping the Federal Aviation Administration of air traffic oversight and giving the function to a not-for-profit organization.
The world took Trump as a comedy – but he’s turned into a horror show (The Guardian)
Until now, at least for those watching from afar, the Trump show has been a spectacle. It has shocked and appalled, but with the compulsive appeal of something like entertainment.
Frightened by Donald Trump? You don’t know the half of it (The Guardian)
Yes, Donald Trump’s politics are incoherent. But those who surround him know just what they want, and his lack of clarity enhances their power. To understand what is coming, we need to understand who they are. I know all too well, because I have spent the past 15 years fighting them.
Theresa May urged not to suppress report into funding of jihadi groups (The Guardian)
Jeremy Corbyn and Tim Farron have challenged Theresa May over a long-delayed inquiry into foreign funding and support of jihadi groups in the UK, after the Home Office suggested the investigation may not be published.
Society Is Destroying and Rebuilding Itself for the Networked Age (Singularity Hub)
When the dust settled from last summer’s failed Turkish coup d’etat, where a faction of Turkey’s armed forces attempted an overthrow of the sitting government and President Recap Tayyip Erdogan, a bizarre—yet distinct—signature of our digital age emerged.
Cautious Comey expected in U.S. hearing on Trump-Russia probes (Reuters)
Former FBI chief James Comey will likely hold back from accusing President Donald Trump of trying to interfere with an investigation into links between Trump's election campaign team and Russian officials when he testifies in Congress this week, legal sources said.
Life on the Home Planet
UK police face questions as third London attacker named (CNN)
British police have identified the third London attacker as Youssef Zaghba, a Moroccan-Italian who police in Italy said had been put on a security watch list.
Russian fighter intercepts U.S. bomber over Baltic Sea (Reuters)
Russia scrambled a fighter jet on Tuesday to intercept a nuclear-capable U.S. B-52 strategic bomber it said was flying over the Baltic Sea near its border, in an incident that had echoes of the Cold War.
Michigan State football players charged with sexual assault (Reuters)
Three Michigan State University football players were charged on Tuesday with sexual assault in the latest incident in a mushrooming problem on U.S. college campuses.
Airlines Say Travelers May Be Growing Accustomed to Terror Spree (Bloomberg)
It may be a sign of the times, but the latest round of terrorist attacks in Europe appears not to be having the usual impact on travel demand as tourists show signs of becoming inured to the threat of violence.
Most Americans want 'aggressive' action on climate change: Reuters/Ipsos poll (Reuters)
Most Americans believe the United States should take "aggressive action" to fight climate change, but few see it as a priority issue when compared with the economy or security, according to a Reuters/Ipsos poll released on Tuesday.
