Random Market News, 13 June
"Treasury releases first proposal to roll back Dodd-Frank."
"Global Public Investor Assets Rise to $33.5 Trillion in 2016.
Report finds pension funds spurred increase in worldwide asset total."
"Passive Investing Hits Plateau.
NEPC survey finds passive investing is losing momentum, cites geopolitical uncertainty, market volatility."
"Global private debt funds raise $32b capital during Jan-May.
Global private debt funds had a decent start this year with about 38 of them reaching a close, raising $32 billion in investor commitments in the January-May period, according to Preqin’s latest report."
"A record number of money managers think global equities are overvalued, said Bank of America Merrill Lynch's monthly fund manager survey released."
"Popular Takeover Turns Attention to Weak Spanish Bank Rivals."
"China Banks Brace for June Cash Squeeze as Fund Costs Jump."
Implied rate hike probability tomorrow ~99.6%, 2 rate hikes by September 20th ~23.4%.
VIX ~10.42. 10-yr treasury vol (TYVIX) ~4.22.
"Stocks in United States Hit All-time High
Dow Jones increased to an all-time high of 21306
US Small Business Optimism Below Expectations In May
The NFIB Small Business Optimism Index in the US was unchanged at 104.5 in May of 2017 from 104.5 in April, below market expectations of 105.2. Improvements were seen in plans to increase employment (+2), make capital outlays (+1) and current job openings (+1). Expectations also increased for the economy (+1) and higher sales (+2). In contrast, deterioration was observed for plans to increase inventories (-2), current inventories (-3), earnings (-1) and good time to expand (-1). Small business owners are highly encouraged by the President’s regulatory reform agenda, and they remain optimistic there will be tax reform and health-care reform.
Australia Consumer Confidence Slips To 14-Month Low
The Westpac-Melbourne Consumer Sentiment Index in Australia decreased to 96 in June of 2017 from 98 in the previous period. It was the lowest reading since April 2016 and the third straight month of decline as concerns over housing market conditions worsened.
South Korean Won Gains 3.5% To 39-Week High
The South Korean won gained a massive 3.5 percent to a 39-week high of 1090 per USD on Tuesday. Recent economic data has been positive, with investors increasing purchases of South Korean bonds for a fifth consecutive month; GDP expanding at its fastest pace in 6 quarters; strong exports; and a bullish central bank view of recent developments. On June 5th, South Korea's new government announced a fiscal stimulus package that will increase social welfare subsidies, as part of President Moon Jae-in's election promise to create 810,000 public sector jobs.
Argentina Keeps Interest Rate Unchanged At 26.25%
The Central Bank of Argentina kept its benchmark interest rate steady for the fourth straight meeting at 26.25 percent on June 13th of 2017. The central bank said it will continue to maintain a clear anti-inflationary bias to ensure that the disinflation process continues towards its inflation target between 12 percent and 17 percent during 2017. The central bank underscored that consumer prices, as measured by the IPC GBA index, rose 24.0 percent year-on-year in May (below 27.5 percent in April), with core inflation currently standing at 24.6 percent.
Kazakhstan Industrial Output Rises 10.7% YoY In May
Industrial production in Kazakhstan went up 10.7 percent year-on-year in May of 2017, following 10.9 percent gain in the previous month. Output rose at a slower pace for manufacturing (6.9 percent from 7.6 percent); electricity, gas, steam and air conditioning (5.8 percent from 7.5 percent) and water supply and sewerage system (1 percent from 1.8 percent). In contrast, production accelerated for mining and quarrying (14.8 percent from 14.4 percent). On a monthly basis, industrial output fell 2.7 percent.
US Producer Prices Flat In May
Producer prices for final demand in the United States were unchanged in May of 2017 from the previous month, following a 0.5 percent rise in April, in line with market expectations. A 0.3 percent rise in cost of services was offset by 0.5 percent drop in prices of goods. Energy cost slumped 3 percent, the biggest drop since February of 2016. Excluding food and energy, prices went up 0.3 percent, below 0.4 percent in April. Year-on-year, producer prices rose at a slower 2.4 percent (2.5 percent in April) while the core index went up 2.1 percent (1.9 percent).
Euro Area Zew Economic Sentiment At 22-Month High
The ZEW Indicator of Economic Sentiment for the Euro
Area increased to 37.7 in June 2017 from 35.1 in the previous month and better
than market consensus of 37.2. It is the highest reading since August of 2015,
as 41 percent of the analysts surveyed expect to see a pickup in economic
activity in the coming six months; 55.7 percent expect the economic development
to remain unchanged while only 3.3 percent expect economic growth to
deteriorate.The indicator for the current situation also increased by 2.2
points to 20.5. Meanwhile, prospects for inflation rate fell by 0.6 points to
"Supreme Court declines to hear ELD lawsuit.
In a victory for the U.S. Department of Transportation, the U.S. Supreme Court has said it will not hear a lawsuit challenging a DOT rule requiring truck operators to use electronic logging devices to track hours of service."
"Count slow and expensive logistics among the hurdles in Africa that have many companies rethinking their growth plans on the continent."
"Warehouse Startup ShipBob Raises $17.5 Million Amid Expansion Push.
Funding round to allow company to open e-commerce distribution centers in more cities."
"Cashing Out: Tech vs. Healthcare Exit Valuations."
"Visualizing Where Major US Banks Have Invested in Fintech."
"Microsoft continues open source lovefest with new Cloud Foundry features."
"Wouldn’t You Like Alexa Better if It Knew When It Was Annoying You?"
"Uber CEO Travis Kalanick to Take Leave of Absence."
Random Place of the day.
"The Grove Park Inn. The U.S. Supreme Court's secret Cold War relocation facility in the mountains of North Carolina."
Make your own chat bots, including an Angry Trump Bot.
Germany DE: CPI, 2:00 AM ET
India IN: WPI, 2:30 AM ET
Great Britain GB: Labour Market Report, 4:30 AM ET
European Union EZ: Industrial Production, 5:00 AM ET
USA US: MBA Mortgage Applications, 7:00 AM ET
USA US: Consumer Price Index, 8:30 AM ET
USA US: Retail Sales, 8:30 AM ET
USA US: Business Inventories, 10:00 AM ET
USA US: EIA Petroleum Status Report, 10:30 AM ET
New Zealand NZ: GDP, 6:45 PM ET
Australia AU: Labour Force Survey, 9:30 PM ET