Random Market News, 11 August 2017

 

Market Info. 1

Logistics. 5

Tech. 5

Random.. 7

Events on 8/13-14 (ET) 7

 

 

Market Info

 

"U.S. Stocks Gain, Volatility Slips as Tension Ebbs: Markets Wrap.

Tepid price growth puts Fed move in doubt; bonds rise.

Markets start to stabilize as Korea tensions remain in focus."

https://www.bloomberg.com/news/articles/2017-08-10/equity-rout-deepens-bonds-rise-on-korea-tension-markets-wrap

 

"India, China: Tensions Simmer as Border Standoff Enters Second Month.

Bhutan claims Doka La lies within its internationally recognized boundary with China and India. China, however, claims the trijunction is a few miles south of Doka La at Gymachen and that the pass falls within its territory."

https://worldview.stratfor.com/article/india-china-tensions-simmer-border-standoff-enters-second-month

 

"In a strategically key move, India has poured in more troops along the entire stretch of its border with China in Sikkim and Arunachal Pradesh in the face of heightened rhetoric by Beijing over the Dokalam standoff, senior government officials said on Friday

The "caution level" among the troops has also been raised, the officials told PTI."

http://www.ptinews.com/news/8976137_PTI-Exclusive--India-deploys-more-troops-along-China-border-in

Preparations and politics now are very different than 1962. BJP (now in power) dissented against Nehru on the issue then.

 

"10 years on, what might cause the next financial crisis?

Massive money printing to restart the global economy after the financial crisis has blown an even bigger bubble. Ten years after the last crash, are we due another one and will it be worse?"

http://www.dw.com/en/10-years-on-what-might-cause-the-next-financial-crisis/a-40058311

 

"Corporate Japan now sees net profit surging 13% this fiscal year.

A fifth of companies to top records despite strong yen, China risks."

https://asia.nikkei.com/Politics-Economy/Economy/Corporate-Japan-now-sees-net-profit-surging-13-this-fiscal-year

 

"European Companies Chase New Investors Through Private Sales.

The prospect of tighter monetary policy at home is making companies look further afield to broaden their funding options."

https://www.wsj.com/articles/european-companies-chase-new-investors-through-private-sales-1502454990

 

"In search of inflation.

The week's economic news is led by inflation data where once again pressures are mysteriously missing. Productivity was also released in the week and was also once again soft, at only a 0.9 percent annualized rate in the second quarter with compensation not much better. Lack of compensation isn't the greatest motivator to improve productivity, yet it's the general lack of inflation that may be keeping workers quietly content with whatever it is they earn."

http://mam.econoday.com/byshoweventarticle.asp?fid=482600&cust=mam&year=2017&lid=0

 

"Geopolitical worries deflate stocks.

Equities around the globe retreated last week — geopolitical worries sent investors scurrying for safe havens. Until last week, investors were resilient to geopolitical concerns before rhetoric between the U.S. and North Korea began to ratchet up.

The escalation in the war of words has shaken markets that had been largely resilient as they swatted away a slew of risks ranging from an investigation into Russia's possible interference in the 2016 U.S. presidential election, to concerns about China's risky debt levels, to stubbornly low inflation in the U.S. (and elsewhere).

All indexes covered here retreated on the week with the heaviest losses occurring on Thursday and Friday. On the week, all indexes were down.

On an historic note — 10 years ago this week marked the beginning of the global financial crisis."

http://mam.econoday.com/byshoweventarticle.asp?fid=482599&cust=mam&year=2017&lid=0

 

Data dump.

 

Implied Fed rate hike/cut probability for September 20th is ~0.0%/4.1%, November 1st is ~1.9%/4.0%.

http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html/

Higher cut probability than hike.

 

VIX ~15.51. 10-yr treasury volatility (TYVIX) ~4.43.

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.

 

"US Stocks Close Higher On Friday To Book Weekly Loss

Wall Street closed modestly in the green on Friday, as markets stabilized a day after North Korea tensions reignited, with volatility ticking higher ahead of the weekend. Among other economics news, US consumer prices rose 1.7% year-on-year in July 2017, missing expectations of 1.8% and following a 1.6% gain in June, reducing the chance that the Fed will tighten interest rates in the next monetary meeting. The Dow Jones edged up 14 points or 0.1% to 21858. The S&P 500 gained 5 points or 0.2% to 2444. The Nasdaq advanced 40 points or 0.6% to 6257. During the week, all three major indices booked losses, with the Dow Jones retreating 1.0%; the S&P 500 1.3%; and the Nasdaq 1.5%.

 

US Stocks Close Higher On Friday To Book Weekly Loss

Wall Street closed modestly in the green on Friday, as markets stabilized a day after North Korea tensions reignited, with volatility ticking higher ahead of the weekend. Among other economics news, US consumer prices rose 1.7% year-on-year in July 2017, missing expectations of 1.8% and following a 1.6% gain in June, reducing the chance that the Fed will tighten interest rates in the next monetary meeting. The Dow Jones edged up 14 points or 0.1% to 21858. The S&P 500 gained 5 points or 0.2% to 2444. The Nasdaq advanced 40 points or 0.6% to 6257. During the week, all three major indices booked losses, with the Dow Jones retreating 1.0%; the S&P 500 1.3%; and the Nasdaq 1.5%.

 

European Equities Trade Lower on Trump Comments

The FTSE 100 decreased to a 13-week low of 7,300 around 9:45 AM London time on Friday, following losses in the US and Asia, after Trump claimed that his 'fire and fury' promises were not 'tough enough' in response to North Korea’s Guam attack plans. Other European indices traded deep in the red: The DAX 30 declined 64 points, or 0.6%, to 11,950; the CAC 40 fell 59 points, or 1.2%, to 5,056; the IBEX 35 retreated 158 points, or 1.5%, to 10,290; and the FTSE MIB slumped 302 points, or 1.4%, to 10,291.

 

Italy July Inflation Rate Confirmed at 1.1%

Italy's consumer prices increased by 1.1 percent year-on-year in July 2017, matching preliminary estimates and following a 1.2 percent gain in the previous month. It was the lowest inflation rate since January, as prices rose at a slower pace for transport, food and housing. Annual core inflation rate, which excludes energy and unprocessed food, edged down to 0.8 percent from 0.9 percent in June. On a monthly basis, consumer prices rose 0.1 percent, also in line with earlier estimates, after decreasing by 0.1 percent in June.

 

Stocks in Euro Area Hit 21-week Low

Euro Stoxx 50 decreased to a 21-week low of 3394.

 

Russia Q2 GDP Growth at Near 5-Year High

Russia's gross domestic product advanced 2.5 percent year-on-year in the second quarter of 2017, following a 0.5 percent growth in the previous period, a preliminary estimate showed. It was the strongest pace of expansion since the third quarter of 2012.

 

India Industrial Output Posts First Drop in 4 Years

India's industrial production decreased 0.1 percent year-on-year in June 2017, following an upwardly revised 2.8 percent rise in the previous month and missing market expectations of a 0.6 percent gain. It was the first fall in industrial production since June 2013, as manufacturing output declined 0.4 percent after rising 2.6 percent in May. Meanwhile, electricity production grew 2.1 percent (from 8.3 percent in May) and mining output increased 0.4 percent (from 0.2 percent in May).

 

China Fiscal Spending Growth Slows in July

Fiscal expenditure in China rose 5.4 percent from a year earlier in July of 2017, following a 19.1 percent rise in the prior month. During the first half of 2017, the government had front-loaded its spending to guarantee the key expenditure needs under a drive to make fiscal policy more active and effective, the finance ministry said. Meantime, China's fiscal revenue went up 11.1 percent in June, following a 8.9 percent growth in a month earlier. Considering the first seven months of the year, fiscal expenditure rose 14.5 percent compared to the same period the prior year. Fiscal revenue from January to July 2017 increased by 10.0 percent.

 

China Equities Lead Asian Selloff

Shanghai's SSE Composite finished down 53 points, or 1.6 percent, to 3209 on Friday 11th of August as bourses around the Asia-Pacific extended their recent slump. It was the third straight session of declines and the lowest close for the index since July 18 this year. Losses were broad, especially financials and materials, with all sectors down except utilities. China Molybdenum, Baoshan Iron & Steel and Aluminum Corporation of China shed 7.9 percent, 6.2 percent and 9.3 percent respectively. Meanwhile, Ping An Insurance fell 2.3 percent and China Merchants Bank dropped 2.5 percent. A total of 6 stocks declined by the maximum allowed 10 percent while only 2 stocks added more than 5 percent. Shenzhen's Component Index was down 189 points, or 1.8 percent, to 10,291.

 

KOSPI Tumbles On Geopolitical Uncertainty

South Korea's KOSPI sank 40 points, or 1.7 percent, to 2320 on Friday 11th of August to track Wall Street Lower overnight as the US stepped up its warnings to North Korea, triggering a shift from risk assets to safe havens. The index finished at a more than 9-week low and was down 3 percent over the week, after declining for the third straight session, with communications and materials sectors falling the most. Moreover, the volatility indicator for the index surged as much as 27 percent. Electronics giant Samsung finished 2.5 percent lower on Friday, and 6.5 lower over the week for its worst week since October last year.

 

ANZ Stocks Close Firmly Lower On Friday

Equity markets in Australia and New Zealand closed in the red on Friday 11th of August as investors flock to safe haven assets in the midst of escalating political tensions between the US and North Korea. Australia's ASX 200 declined 68 points, or 1.2 percent, to 5693 - a one month low as falling oil prices weighed on energy companies. The big four banks dropped between 1 percent and 2.2 percent, with ANZ tumbling the most. Leading the decliners were Sigma Pharma, Australian Agricultural and Tabcorp Holdings which were down 7.8 percent, 7 percent and 5.8 percent respectively. Over the week, the index fell 0.6 percent. Meanwhile, the broader All Ordinaries shed 67 points, or 1.2 percent, to 5743.5 and New Zealand's NZX 50 lost 70.6 points, or 0.9 percent, to 7719 as the Kiwi Dollar continues to plummet. Over the week, the NZX 50 gained more than 1 percent while the Kiwi Dollar shed more then 2.5 percent against the US Dollar.

 

Oil Prices Drop Further After IEA Monthly Report

Oil prices fell further on Friday after the International Energy Agency raised doubts about OPEC countries' commitment to the production reduction agreement started in January to re-balance markets. OPEC's rate of compliance with the cutbacks slipped to 75% in July, the lowest in seven months. Crude oil fell 0.8% to $48.1 and Brent declined 0.7% to $51.6 around 10:00 AM London time.

 

Corn Hits 32-week Low

Corn decreased to a 32-week low of 350 ¢USD/bu."

 

https://tradingeconomics.com/stream

http://www.marketwatch.com/newsviewer#

https://global.handelsblatt.com/

https://blogs.wsj.com/dailyshot/

 

Logistics

 

"Drug Supply Chain Tracking Challenges FDA and Manufacturers.

Efforts to establish an international system for identifying and tracing drugs through the global supply chain are moving forward.

These and other supply chain challenges will be discussed at a public meeting to be held on August 23, 2017 at FDA headquarters in Maryland and at two additional meetings scheduled for December 5–6, 2017 and February 28, 2018."

http://www.pharmtech.com/drug-supply-chain-tracking-challenges-fda-and-manufacturers

 

"Many owner-operators ill-prepared for December ELD mandate, new report says

With the Dec. 18 deadline for mandatory electronic logging devices (ELDs) quickly approaching, there is concern that a majority of the 3.5 million affected trucks have yet to procure or install the required devices."

http://www.logisticsmgmt.com/article/many_owner_operators_ill_prepared_for_december_eld_mandate_new_report_says

 

"Forwarders should fight convention and embrace technology.

Klaus Lysdal, Vice President, Sales and Operations at iContainers, an online freight forwarding company, urges the industry to take full advantage of the technological advances on offer without delay."

http://www.lloydsloadinglist.com/freight-directory/letters/Forwarders-should-fight-convention-and-embrace-technology/70063.htm

 

"Samsung sets up logistics company as market heats up.

VietNamNet Bridge - Setting up a logistics joint venture with Minh Phuong, Samsung has shown that it wants to jump into a new business field in Vietnam. But the move may trigger a new war in the domestic logistics market."

http://english.vietnamnet.vn/fms/business/183009/samsung-sets-up-logistics-company-as-market-heats-up.html

 

"States Alter Trucking Schedules to Dodge Eclipse.

Several states have adjusted their freight transportation schedules to avoid the influx of traffic bound to snarl the nation’s highways as people descend on the best viewing spots for the upcoming solar eclipse.

On Aug. 21, North America will experience its first coast-to-coast total solar eclipse since 1918, according to NASA."

http://www.ttnews.com/articles/states-alter-trucking-schedules-dodge-eclipse

 

Tech

 

"With 5 new unicorn births in Q2'17, deals and dollars to fintech startups are on pace to set records in 2017.

In the first half of 2017, VC-backed fintech companies raised $8B across 496 deals — as we highlighted in our Q2’17 Global Fintech report. If the pace of investment continues, deals and funding to VC-backed fintech companies could hit a new high in 2017.

Last quarter alone, VC-backed fintech companies raised a record $5.2B across 251 deals, on the back of 18 investments worth $50M+. Those financings included rounds that gave birth to 5 new unicorns (valued at $1B+): P2P online lending site operator Tuandaiwang, invoice and payments company AvidXchange, online investment platform Robinhood, health insurance startup Clover Health, and cloud-based messaging platform Symphony Communication Services."

https://www.cbinsights.com/research/fintech-investment-unicorns/

 

"New Polymers Extract Mercury from Environment, Cleaning up Polluted Legacies.

A mix of waste canola oil and sulfur can trap mercury pollution – some of the most toxic leftovers from heavy industry. The rubber-like substance, devised by an Australian scientist and being marketed by a Boston-based reagent company, is already undergoing field trials – and could be a game-changer in cleaning up mining and other pollution, the experts told Laboratory Equipment.

The brown polymer absorbs the most common forms of mercury, from metal to vapor to organic compounds laced with the dangerous element, they report."

https://www.laboratoryequipment.com/news/2017/08/new-polymers-extract-mercury-environment-cleaning-polluted-legacies

 

"Tesla developing self-driving tech for semi-truck, wants to test in Nevada."

http://www.reuters.com/article/us-tesla-truck-autonomous-idUSKBN1AP2GD

 

"IBM Watson Makes a Treatment Plan for Brain Cancer Patient in 10 Minutes; Doctors Take 160 Hours.

A new study, in which IBM Watson took just 10 minutes to analyze a brain cancer patient’s genome and suggest a treatment plan, demonstrates the potential of artificially intelligent medicine to improve patient care. But although human experts took 160 hours to make a comparable plan, the study’s results weren’t a total victory of machine over humans.

The NYGC clinicians identified mutations in two genes that, when considered together, led the doctors to recommend the patient be enrolled in a clinical trial...

But Watson didn’t synthesize the information together this way, and therefore didn’t recommend that clinical trial. "

http://spectrum.ieee.org/the-human-os/biomedical/diagnostics/ibm-watson-makes-treatment-plan-for-brain-cancer-patient-in-10-minutes-doctors-take-160-hours

 

"Video Friday: Isaac Plays Dominoes, iCub Cleans Up an Octopus, and Weaponized Plastic Fighting."

http://spectrum.ieee.org/automaton/robotics/robotics-hardware/video-friday-081117

 

"Tracing the Links Between Basic Research and Real-world Applications.

In short, we found that a remarkably high share of scientific research links forward to usable practical advances. Most of the linkages are indirect, showing the manifold and unexpected ways in which basic research can pay off in ultimate practical applications. Yet the science most directly linked to application turns out to have a major impact within science itself. Following Pasteur’s example may be an especially reliable way to hit the ball out of the park."

https://www.laboratoryequipment.com/news/2017/08/tracing-links-between-basic-research-and-real-world-applications

 

Startup/SME of the Day.

 

"Entrupy.

We have built complex detection algorithms into Entrupy, that allow us to analyze various materials ranging from canvas and leather to metal and wood.

The Entrupy device takes microscopic photographs of different areas of an item and runs them through a computer that uses proprietary algorithms

Authentication accuracy of over 96.4% and is steadily increasing

Our goal is to enable trust in high-value goods transactions by providing on-demand authentication solutions to every business."

https://www.entrupy.com/

App & device setup to spot counterfeit goods.

 

Random

 

"Sacred City of Anuradhapura.

This sacred city was established around a cutting from the 'tree of enlightenment', the Buddha's fig tree, brought there in the 3rd century B.C. by Sanghamitta, the founder of an order of Buddhist nuns. Anuradhapura, a Ceylonese political and religious capital that flourished for 1,300 years, was abandoned after an invasion in 993. Hidden away in dense jungle for many years, the splendid site, with its palaces, monasteries and monuments, is now accessible once again."

http://whc.unesco.org/en/list/200

 

Events on 8/13-14 (ET)


New Zealand  NZ: Retail Trade, 6:45 PM ET (8/13)

Japan  JP: GDP, 7:50 PM ET (8/13)

China  CN: Industrial Production, 10:00 PM ET (8/13)

China  CN: Retail Sales, 10:00 PM ET (8/13)

India  IN: WPI, 2:30 AM ET

European Union  EZ: Industrial Production, 5:00 AM ET

India  IN: CPI, 8:00 AM ET

Australia  AU: RBA Meeting Minutes, 9:30 PM ET

 

http://online.wsj.com/mdc/public/page/2_3063-globalEconomicCalendar.html

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