Random Market News, 26 July 2017


Market Info. 1

Logistics. 3

Tech. 5

Random.. 5

Events on 7/27 (ET) 6



Market Info


"Fed holds rates steady, expects portfolio cuts 'relatively soon'."



"Sweden appears to have accidentally leaked the details of almost all of its citizens. And now it's getting worse.

The brewing scandal – based around a leak that actually happened in 2015 but only emerged last week – could see prominent members of Sweden's government removed from their post."



"The Supreme Court Delivers a Blow to Plaintiff Paradise.

St. Louis may lose its lawsuit allure after a ruling against “litigation tourism” that helps big companies like Johnson & Johnson."



"Following Europe, automakers steer toward all-electric future.

Race underway to perfect successors to internal combustion engine."



"EU-Canada passenger data deal struck down.

The European Union's top court has ruled that an agreement between the EU and Canada on the exchange of airline passenger data needs to be modified in part. The judges found the deal is not in line with fundamental laws."



"The Finance Ministry [of Thailand] plans to introduce e-money zones in shopping areas of selected northeastern provinces to promote a cashless society, permanent secretary Somchai Sujjapongse said on Wednesday."



"CS: More Investor Interest in Hedge Fund Quant Strategies.

In addition, Credit Suisse survey shows more than 70% of institutional investor portfolios incorporate hurdle rates and founder’s share class structures."



Data dump.


Implied rate hike probability for September 20th is ~0.0%, November 1st is ~4.0%; 0% probability of rate cut through June 13th, 2018.



VIX ~9.60. 10-yr treasury vol (TYVIX) ~3.81.



10yr Sovereigns.
















News feed.


"French Consumer Sentiment Falls From Post-Election-High

French consumer morale unexpectedly dropped to 104 in July 2017 from a post election ten-year high of 108 in June and missing market consensus of 108. The balance of opinion on the future standard of living declined sharply (-10 from 1 in June) while concerns over unemployment went up slightly (8 from 6). Also, households' opinion on their financial situation in the next twelve months receded sharply (-9 from -3 in June) and their assessment on past financial situation deteriorated (-17 from -14). In addition, the balance of opinion on consumers expected saving capacity fell (-3 from 1 in June) while their current saving capacity softened (12 from 14). Meantime, there were more consumers than in a month earlier expecting prices to increase during the next twelve months while households' saving intention for the coming year increased (9 from 7).


Swiss Investor Morale Highest Since 2014

The Swiss investor sentiment index jumped by 14 points to 34.7 in July 2017 from 20.7 in the previous month. It was the highest reading since January 2014, amid optimism regarding the expected economic situation of important trading partners, mainly the Eurozone and the US. Also, the assessment of the current economic situation in Switzerland increased by 3.6 points to 34.6 from 31 in June.


UK Economy Grows 0.3% in Q2

The British economy advanced 0.3 percent on quarter in the three months to June 2017, in line with market expectations and following a 0.2 percent expansion in the previous period, a preliminary estimate showed. The growth was driven by services mainly boosted by retail trade and film production and distribution, while construction and manufacturing contracted.


Brazil Slashes Interest Rate By 100 Bps To 9.25%

The Central Bank of Brazil unanimously cut its key Selic rate by 100 basis points to 9.25 percent on July 26th of 2017, as widely anticipated. It was the seventh straight rate decline, bringing borrowing costs to the lowest since September of 2013 amid slowing inflation and a sticky contraction. The decision was unanimous and no bias was adopted. It follows a 100 bps cut in the May 31st of 2017 meeting.


Colombia Business Confidence Increases in June

The Industrial Confidence Index in Colombia rose to -5.4 in June of 2017 from -8.8 in May, which was the worst since October of 2009. Production expectations for the next quarter increased (30.6 from 21.4) and inventories fell (10 from 15.1). On the other hand, current orders declined further (-36.6 from -32.7). When adjusted for seasonal factors, industrial confidence went up by 4.


South Korea GDP Expands 2.7% YoY In Q2

The South Korean economy expanded 2.7 percent year-on-year in the second quarter of 2017, matching estimates of a 2.7 percent expansion and outpacing 2.9 percent growth for the previous quarter. The slower GDP growth was mainly explained by manufacturing and services, which expanded at a softer pace versus Q1. On the expenditure side, exports contracted marginally and imports and construction expanded at slower rates when compared to the first quarter, offsetting faster growth in consumption.


Indonesian Q2 FDI Highest On Record

Foreign direct investment in Indonesia, excluding investment in banking and the oil and gas sectors, jumped 10.6 percent year-on-year to an all-time high of IDR 109.9 trillion in the second quarter of 2017. It followed a 0.9 percent rise in the prior quarter, with base metals, mining and utility sectors attracting the most of foreign investment. Singapore was the top source of FDI during the period, followed by Japan, China, Hong Kong and South Korea. In dollar terms, the FDI is equivalent to USD 8.2 billion. The government is expected to ease again foreign ownership restrictions on several industrial sectors in the coming months to improve investment climate in the country.


Stocks in South Africa Hit 26-month High

JALSH-All Share increased to a 26-month high of 54808.


Euro Hits 30-month High

EURUSD increased to a 30-month high of 1.1711.


Canadian Dollar Hits 24-month High

USDCAD decreased to a 24-month low of 1.2452.


Australian Dollar Hits 26-month High

AUDUSD increased to a 26-month high of 0.79895.


British Pound Sterling Hits 44-week High

GBPUSD increased to a 44-week high of 1.3126.


Singapore Dollar Hits 42-week High

USDSGD decreased to a 42-week low of 1.3585."








"UTC Warns Jet Makers That Poaching Service Business Will Mean Higher Prices.

Engine makers typically sell at little or no profit then make up the money through years of service and parts.

But Boeing Co. BA 9.88% and Airbus SE have been nudging their way into that aftermarket business to capture some of that profit—a strategy that puts them on a collision course with suppliers."



"JD.com severs ties with Tiantian in logistics spat.

Move comes as battle intensifies between China’s etailers in online shopping market."



"Werner increases earnings 27% in Q2 2017.

Trucking and logistics provider Werner Enterprises' net income for the second quarter of 2017 shot up 27 percent year-over-year to $23.2 million on the back of improved freight volume metrics, according to the company's most recent financial statements."



"Roadrunner seals $292 million financing deal.

Capital in place to support next five years of operations, CEO says.

Truckload and less-than-truckload (LTL) provider Roadrunner Transportation Systems Inc. said today it has closed on a five-year, $292 million financing package that the company's CEO called the "last key step" in the struggling company's recapitalization efforts."



"Tesco is to launch nationwide same-day grocery delivery.

The supermarket chain first introduced the service to London and the South East in 2014 – the service will now be offered across more than 300 stores across the UK. The new delivery service will be available to 99 per cent of UK households."



"18,000+ teu boxships set to double market share on Asia-North Europe by end of next year.

Copenhagen-based box watchers SeaIntel are suggesting in a new report that ultra-large container vessels – with a nominal capacity in excess of 18,000 teu – will double their market share on the Asia-North Europe tradelane in the coming 17 months."



"Container shipping’s consolidation is ‘creating an oligopoly’.

Increasing liner concentration means an end to era of low freight rates and deep repercussions for entire industry, says Drewry.

The rapidly consolidating liner sector is becoming increasingly oligopolistic, setting the scene for a return to industry profitability this year on the back of an “unprecedented” 16% estimated increase in average global freight rates, according to container shipping and logistics analyst Drewry."



"Lufthansa Cargo adds free thermal protector for all passive ‘cool’ shipments.

Lufthansa Cargo has begun offering a free reflective thermal protection layer for all passive ‘cool’ shipments in a bid to differentiate itself within the increasingly competitive air logistics cool-chain market."



"ATA makes case to FMCSA not to delay ELD implementation.

Following a call by the House Appropriation’s Subcommittee on Transportation, Housing & Urban Development and Related Agencies issuing a report that directs the FMCSA to consider delaying the implementation of ELD (Electronic Logging Devices), the American Trucking Associations (ATA) said it opposes any effort that would delay the implementation of ELD, which is slated for December."





"Uber's going big into trucking business, and nowhere bigger than Texas.

This spring, Uber launched Uber Freight, an app that matches truck drivers with loads of goods to pick up and deliver. Texas played a key role in the San Francisco-based tech giant's inroads. Routes between Dallas, Houston and San Antonio served as its test ground before the app's launch."



"A U.S. judge on Monday ordered Apple to pay $506 million for infringing on a patent owned by the University of Wisconsin-Madison’s patent licensing arm, more than doubling the damages initially imposed on Apple by a jury."



"Microsoft launches Windows bug bounty program with rewards ranging from $500 to $250,000."



"The United States Of Unicorns: Every US Company Worth $1B+ In One Map.

Collectively, US unicorns are worth approximately $360B. Combined, these companies have raised just over $73B.

The United States is home to 105 unicorn companies valued at $1B+. As of 7/25/2017, six private US companies are worth over $10B. The two most valuable unicorns in the US are Uber ($68B) and Airbnb ($29.3B). Palantir Technologies and WeWork, both valued at $20B, are tied for third."



"Researchers have developed a biological computer that functions inside living bacterial cells and tells them what to do, according to a report published today in Nature. Composed of ribonucleic acid, or RNA, the new “ribocomputer” can survive in the bacterium E. coli and respond to a dozen inputs, making it the most complex biological computer to date."



"Making Polymer Chemistry ‘Click’.

A team of researchers has developed a faster and easier way to make sulfur-containing polymers that will lower the cost of large-scale production.

The achievement, published in Nature Chemistry and Angewandte Chemie, opens the door to creating new products from this class of polymers while producing far less hazardous waste. The researchers’ reaction technique, dubbed SuFEx for sulfur(VI) fluoride exchange, combined with a newly identified class of catalysts that speed up the reactions, could be used to make everything from water bottles and mobile phone cases to medical devices and bulletproof glass."





"Kilwa Kisiwani Ruins.

Stunning ruins of what was once the center of one of the greatest empires in East Africa.

From the 9th century all the way up until the 19th century, Kilwa Kisiwani was a wealthy and powerful port, reaching its peak around the late-Middle Ages. At its height, the empire stretched from Kenya to Mozambique, and Kilwa Kisiwani’s prosperity was crucial to the development of Swahili civilization."



Events on 7/27 (ET)

Germany  DE: GfK Consumer Climate, 2:00 AM ET

European Union  EZ: M3 Money Supply, 4:00 AM ET

Hong Kong  HK: Merchandise Trade, 4:30 AM ET

Great Britain  GB: CBI Distributive Trades, 6:00 AM ET

USA  US: Durable Goods Orders, 8:30 AM ET

USA  US: International Trade in Goods, 8:30 AM ET

USA  US: Jobless Claims, 8:30 AM ET

USA  US: Chicago Fed National Activity Index, 8:30 AM ET

USA  US: Bloomberg Consumer Comfort Index, 9:45 AM ET

USA  US: EIA Natural Gas Report, 10:30 AM ET

USA  US: Kansas City Fed Manufacturing Index, 11:00 AM ET

USA  US: Fed Balance Sheet, 4:30 PM ET

USA  US: Money Supply, 4:30 PM ET

Japan  JP: CPI, 7:30 PM ET

Japan  JP: Household Spending, 7:30 PM ET

Japan  JP: Unemployment Rate, 7:30 PM ET

Japan  JP: Retail Sales, 7:50 PM ET

Australia  AU: PPI, 9:30 PM ET



https://tradingeconomics.com/calendar (More complete listing, including consensus)