Random Market News, 26 July
2017
"Fed holds rates steady, expects portfolio cuts 'relatively soon'."
http://www.latimes.com/business/la-fi-fed-interest-rate-20170726-story.html
"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."
http://asia.nikkei.com/Business/Trends/Following-Europe-automakers-steer-toward-all-electric-future
"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."
http://www.dw.com/en/eu-canada-passenger-data-deal-struck-down/a-39837274
"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."
http://www.bangkokpost.com/news/general/1294338/finance-to-debut-e-money-zones-in-northeast
"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."
https://www.ai-cio.com/news/cs-investor-interest-hedge-fund-quant-strategies/
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.
http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html/
VIX ~9.60. 10-yr treasury vol (TYVIX) ~3.81.
http://www.cboe.com/products/vix-index-volatility/volatility-on-interest-rates
10yr Sovereigns.
https://www.investing.com/rates-bonds/government-bond-spreads
https://tradingeconomics.com/bonds
FX.
https://www.investing.com/currencies/streaming-forex-rates-majors
https://tradingeconomics.com/currencies
Equity.
https://www.investing.com/indices/major-indices
https://tradingeconomics.com/stocks
Commodities.
https://www.investing.com/commodities/real-time-futures
https://tradingeconomics.com/commodities
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."
https://tradingeconomics.com/stream
http://www.marketwatch.com/newsviewer#
https://global.handelsblatt.com/
"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."
https://www.ft.com/content/8ef0545e-710f-11e7-aca6-c6bd07df1a3c
"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."
http://www.americanshipper.com/main/news/68211.aspx
"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."
http://www.dcvelocity.com/articles/20170724-roadrunner-seals-292-million-financing-deal/
"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."
http://www.logisticsmanager.com/tesco-launches-nationwide-same-day-delivery/
"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."
http://splash247.com/18000-teu-boxships-set-double-market-share-asia-north-europe-end-next-year/
"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."
http://www.logisticsmgmt.com/article/ata_makes_case_to_fmcsa_not_to_delay_eld_implementation
"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."
https://phys.org/news/2017-07-uber-big-trucking-business-bigger.html
"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."
https://venturebeat.com/2017/07/26/apple-ordered-to-pay-506-million-to-university-in-patent-dispute/
"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."
https://www.laboratoryequipment.com/news/2017/07/making-polymer-chemistry-click
"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."
http://www.atlasobscura.com/places/kilwa-kisiwani-ruins
DE: GfK Consumer
Climate, 2:00 AM ET
EZ: M3 Money
Supply, 4:00 AM ET
HK: Merchandise
Trade, 4:30 AM ET
GB: CBI
Distributive Trades, 6:00 AM ET
US: Durable
Goods Orders, 8:30 AM ET
US:
International Trade in Goods, 8:30 AM ET
US: Jobless
Claims, 8:30 AM ET
US: Chicago Fed
National Activity Index, 8:30 AM ET
US: Bloomberg
Consumer Comfort Index, 9:45 AM ET
US: EIA Natural
Gas Report, 10:30 AM ET
US: Kansas City
Fed Manufacturing Index, 11:00 AM ET
US: Fed Balance
Sheet, 4:30 PM ET
US: Money
Supply, 4:30 PM ET
JP: CPI, 7:30
PM ET
JP: Household
Spending, 7:30 PM ET
JP: Unemployment
Rate, 7:30 PM ET
JP: Retail
Sales, 7:50 PM ET
AU: PPI, 9:30
PM ET
http://online.wsj.com/mdc/public/page/2_3063-globalEconomicCalendar.html
https://tradingeconomics.com/calendar (More complete listing, including consensus)