Random Market News, 30
"Trump in Missouri Lays Groundwork for Tax Overhaul but Offers No Details.
Mr. Trump gave few specifics on Wednesday beyond a goal of slashing the corporate tax rate to 15 percent, down from 35 percent, and eliminating “loopholes and complexity that primarily benefit the wealthiest Americans and special interests,” a reference to his call to scrap some itemized deductions in the code."
"US economy hits Trump's expansion target.
The world's largest economy has grown at its fastest pace in more than two years, hitting the president's goal for the first time since he took office. Higher consumer spending was behind the solid growth rate."
"SBA's disaster program faces first real test in Harvey.
The Small Business Administration, in the wake of past criticism and a 2008 law that overhauled its disaster-loan regimen, created the Immediate Disaster Assistance Program, or IDAP, which guarantees 85% of bridge loans made to small businesses hit by a disaster.
The SBA promises to provide guarantee decisions within 36 hours of receiving an application for loans that max out at $25,000."
"Arkema Inc. incident news.
At Crosby, we prepared for what we recognized could be a worst case scenario. We had redundant contingency plans in place. Right now, we have an unprecedented 6 feet of water at the plant. We have lost primary power and two sources of emergency backup power. As a result, we have lost critical refrigeration of the materials on site that could now explode and cause a subsequent intense fire. The high water and lack of power leave us with no way to prevent it."
"'TPP 11' to freeze drug data protection demanded by US.
Remaining members thrashing out details to revive trade pact."
"Chinese Oil Giant Sinopec Probed by the U.S. Over Nigeria Bribery Allegations.
SEC, DOJ efforts focused on alleged bribes paid in California.
Payments said linked to unit’s $4 billion dispute with Nigeria.
U.S. authorities are investigating China Petroleum & Chemical Corp. over allegations that the state-controlled oil producer paid Nigerian officials about $100 million worth of bribes to resolve a business dispute, according to people familiar with the probe."
"Walmart brings third-party selling to Canadian website as competition grows."
"The Fundamental Differences of Fundamental and Statistical Risk Models.
Fundamental models are suitable in situations already incorporating management of factor exposures and risk-based attribution, while statistical models have a relative edge in picking up short-term market uncertainty and translating it into risk."
"ISDA freezes attempts to settle Noble CDS.
The International Swaps and Derivatives Association (ISDA) committee tasked with making a ruling on the tussle over Noble Group’s credit-default swaps has suspended any attempts to settle the derivatives contracts bilaterally.
While Noble Group has not formally defaulted on any debt, buyers of CDS claim that a recent extension to loan repayment terms amounted to a debt restructuring — which can also trigger payouts.
Earlier this month the ISDA committee responsible for deciding on the status of Noble’s debt said it was unable to determine if the loan extension qualified as a restructuring, as they were unable to obtain the loan’s underlying documentation. It is the first time a committee has dismissed a question of default without ruling either way."
Wonder how large creditor CDS positions are.
VIX ~11.22. 10-yr treasury volatility (TYVIX) ~4.19.
Implied Fed rate hike/cut probability for September 20th is ~0.0%/2.7%, November 1st is ~1.9%/2.7%.
"US Stocks Close Higher on Wednesday
Wall Street closed in the green on Wednesday August 30th of 2017, as investors shrugged off geopolitical tensions a day after North Korea’s missile launch. Also, economic data showed that the US economy expanded an annualized 3% in Q2, well above a preliminary reading of 2.6%. It is the strongest growth rate since Q1 2015. The Dow Jones edged up 27 points or 0.1% to 21892. The S&P 500 gained 11 points or 0.4% to 2457. The Nasdaq jumped 66 points or 1.1% to 6368.
US Corporate Profits Rise 0.8% in Q2
Corporate profits in the United States increased by USD 12.9 billion, or 0.8 percent, to USD 1,655.6 billion in the second quarter of 2017, following a revised 2.6 percent drop in the previous period, the preliminary estimate showed. The undistributed profits rose by USD 7.1 billion, or 1.1 percent, to USD 661.7 billion and net dividends went up by USD 5.9 billion, or 0.6 percent, to USD 994 billion. Also, net cash flow with inventory valuation adjustment, the internal funds available to corporations for investment, increased by USD 52.9 billion, or 2.4 percent, to USD 2,282 billion.
Stocks in Europe End Higher on Wednesday
The FTSE 100 finished up 28 points, or 0.4%, at 7,365 on Wednesday, as investors shrugged off geopolitical tensions a day after North Korea’s missile launch. Also, other major indices across Europe closed in the green: The DAX 30 gained 57 points, or 0.5%, to 12,002; the CAC 40 increased 24 points, or 0.5%, to 5,056; the IBEX 35 advanced 53 points, or 0.5%, to 10,246; and the FTSE MIB added 95 points, or 0.4%, to 21,503.
Eurozone Economic Sentiment Jumps to New 10-Year High
Eurozone economic sentiment rose to 111.9 in August 2017 from an upwardly revised 111.3 in the previous month, beating market expectations of 111.3. It was the highest reading since July 2007, as sentiment improved among service providers (14.9 from 14.2 in July), manufacturers (5.1 from 4.5) and consumers (-1.5 from -1.7). In contrast, confidence fell among retailers (1.6 from 3.9) and constructors (-3.3 from -1.8).
South Korea Industrial Production Rises 0.1% YoY in July
Industrial production in South Korea rose 0.1 percent year-on-year in July of 2017, following an upwardly revised 0.5 percent decrease in June. Manufacturing output decreased 0.1 percent in July after dropping 0.7 percent in the previous month. On a monthly basis, industrial production rose 1.9 percent after declining 0.5 percent in June, with manufacturing growing 1.9 percent after falling 0.5 percent.
Japan Industrial Output Falls More than Estimated in July
Industrial production in Japan declined by 0.8 percent month-on-month in July 2017, compared to a 2.2 percent increase in a month earlier while market expected a 0.5 percent drop, a preliminary estimate showed. Production fell for: iron & steel (-1.6 pct vs -0.3 pct in June); non-ferrous metals (-0.2 pct vs 2.4 pct); general-purpose, production and business oriented machinery (-2.5 pct vs 2.2 pct); electrical machinery (-2.9 pct vs 5.9 pct); information and communication equipment (-3.6 pct vs 1.9); transport equipment (-0.7 pct vs 5.6 pct); chemical products (-1.4 pct vs 3.4 pct); plastics (-0.1 pct vs 2.3 pct); pulp, paper (-3.1 pct vs 1.6 pct) and textiles (-1.3 pct vs 3.0 pct). In contrast, production increased for: fabricated metals (0.1 pct vs 7.2 pct); ceramics, stone (0.8 pct vs 0.9 pct) and petroleum and coal products (1.4 pct vs 1.8 pct). On a yearly basis, output gained 4.7 percent, following a 5.5 percent rise in June.
Heating oil Hits 34-week High
Heating oil increased to a 34-week high of 1.7157 USD/Gal.
Gasoline Hits 25-month High
Gasoline increased to a 25-month high of 1.947 USD/Gal."
"Costco drops trucking company accused of labor violations.
Costco, one of the world's largest retailers, has stopped doing business with a California trucking company accused of trapping drivers in debt and then using it to force them to work overtime.
The action comes as brands across the U.S. face increased scrutiny for ignoring labor abuses in their supply lines, a widespread problem first revealed in a USA TODAY Network investigation in June."
"The winding-up of Singapore-listed Rickmers Maritime Trust has been completed.
In a statement to the Singapore Exchange Rickmers Trust Management said the final distribution to unsecured creditors, equivalent to 12.1% recovery, had been made.
The bankrupt trust sold its fleet of 14 containerships to Navios Partners Containers for $113m.
The listed shipping trust model was launched in 2006 by Singapore as an alternative to Germany’s KG funds. Of the three trust listed only one is still trading – First Ship Lease. Pacific International Line’s Pacific Shipping Trust was taken private in 2011."
"DAT: Supply chain already feeling effects of Hurricane Harvey.
Houston's critical location for freight shipments creates logistical challenges.
On the spot market, it is first in flatbed moves because of the energy industry that requires drilling rigs and pipes to be brought into the area, and results exports of industrial plastics and other products.
Houston has also seen strong growth in the dry van market, as imports of citrus from South America enter through the Port of Houston, which remains closed due to Harvey. In addition, it has become a major distribution point for fresh fruits and vegetables from the Rio Grande Valley, and is a critical artery in cross-border trade."
DAT is the largest US trucking load board.
"Driver Pay Shows Marginal Second-Quarter Growth.
The National Driver Wage Index, which measures over-the-road driver pay, rose 0.9% year-over-year in the second quarter, but the index is likely to grow at a faster pace as truckload carriers experience the positive effects of economic growth and the electronic logging mandate on freight rates, according to the National Transportation Institute."
"Why Retail Supply Chain Transformations Fail - and how to get it right.
Retailers committed to transforming their supply chains need to step back and look at their business model through a different lens."
"DOM’s impact on customer experience.
Distributed order management suppliers and users tout its ability to strengthen the customer experience through better ties to store-level systems to improve buy-online/pickup-in-store efforts and to empower store associates.
E-commerce has made distributed order management (DOM) systems—a layer of software that sits above inventory systems and figures out how to best fulfill orders—a key part of omni-channel strategies. The routing logic in DOM quickly assesses which warehouses, stores or third-party locations should be tapped to fill an order, regardless of channel."
"Alexa meets Cortana: Amazon and Microsoft to integrate their digital assistants.
“The world is big and so multifaceted,” said Amazon founder and CEO Jeff Bezos, in a press release. “There are going to be multiple successful intelligent agents, each with access to different sets of data and with different specialized skill areas. Together, their strengths will complement each other and provide customers with a richer and even more helpful experience. It’s great for Echo owners to get easy access to Cortana.”"
"Trends Shaping The Genomics Revolution.
In 2003, the Human Genome Project was completed after fully sequencing and mapping the genetic code of a human being. While that project cost $3B, the cost to sequence a genome has fallen precipitously, to approximately ~$1000 today. This has caused a dramatic shift in the field of genomics as new business models emerge, technologies develop, startups launch, and genomic data grows."
"Bain Capital adds Apple for last-minute $18 billion bid on Toshiba’s chip unit.
The revised offer is worth some 2 trillion yen ($18.2 billion). Bain and South Korean chipmaker SK Hynix Inc will be responsible for 1.1 trillion yen, while Apple will provide up to 400 billion yen and Japanese banks will give around 600 billion yen in support, one of the sources said."
"Blockchain technology expands beyond Bitcoin and into car-sharing.
Accounting and consulting firm EY, part of Ernst & Young Global, said on Wednesday it was launching a blockchain based system that will enable companies or groups of individuals to more easily share ownership of vehicles and access to cars and trucks. EY could deploy the system, called Tesseract, in a test with an unnamed partner within the next quarter, EY partner John Simlett told Reuters in an interview."
"Dutch Will Use Wind Power to Green Airports, But Solar is the Future Elsewhere."
"How We Won Gold in the Cyborg Olympics’ Brain Race.
With our brain-computer interface, paralyzed athletes sped their avatars across the finish line."
Startup/SME of the Day.
Fat Lama is the platform that lets you rent out your belongings to others nearby.
At Fat Lama, we decided to do Insurance slightly differently.
As a lender, any item worth up to £25,000 is fully covered up to its full value. If your item is lost, damaged or stolen at any point between handing the item to the borrower, and them handing it back, then we have your back and you can claim."
"Residences of the Royal House of Savoy.
When Emmanuel-Philibert, Duke of Savoy, moved his capital to Turin in 1562, he began a vast series of building projects (continued by his successors) to demonstrate the power of the ruling house. This outstanding complex of buildings, designed and embellished by the leading architects and artists of the time, radiates out into the surrounding countryside from the Royal Palace in the 'Command Area' of Turin to include many country residences and hunting lodges."
DE: Retail Sales, 2:00 AM ET
FR: CPI, 2:45 AM ET
FR: PPI, 2:45 AM ET
DE: Unemployment Rate, 3:55 AM ET
EZ: HICP Flash, 5:00 AM ET
EZ: Unemployment Rate, 5:00 AM ET
IT: CPI, 5:00 AM ET
US: Challenger Job-Cut Report, 7:30 AM ET
IN: GDP, 8:00 AM ET
US: Jobless Claims, 8:30 AM ET
US: Personal Income and Outlays, 8:30 AM ET
CA: GDP, 8:30 AM ET
CA: Monthly GDP, 8:30 AM ET
US: Chicago PMI, 9:45 AM ET
US: Bloomberg Consumer Comfort Index, 9:45 AM ET
US: Pending Home Sales Index, 10:00 AM ET
US: EIA Natural Gas Report, 10:30 AM ET
US: Fed Balance Sheet, 4:30 PM ET
US: Money Supply, 4:30 PM ET
JP: PMI Manufacturing Index, 8:30 PM ET
CN: PMI Manufacturing Index, 9:45 PM ET
https://tradingeconomics.com/calendar (More complete listing, including consensus)