Random Market News, 9 August
"Risk off after heightened geopolitical tensions.
The JPY strengthened on a broad basis and both Asian and American stock markets have decreased since yesterday. The reactions came following increased tension between USA and North Korea, where Trump stated that threats will be met with “fire and fury”."
"Regulatory reforms have had limited impact on markets, SEC finds.
Access to capital and market liquidity have not been negatively affected by post-financial crisis regulatory reforms, Securities and Exchange Commission analysts said in a report issued late Tuesday.
Ordered by Congress to assess the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and related measures like Basel III, officials with the SEC's division of economic and risk analysis looked at the issuance of debt, equity and asset-backed securities, and found $20.2 trillion in total capital formation from the signing of the law on July 21, 2010, through Dec. 31, 2016. Of that, $8.8 trillion was through registered offerings, and $11.4 trillion though unregistered offerings.
"We do not find that total primary market security issuance is lower after the enactment of the Dodd-Frank Act," the report said, noting that the results "are also generally consistent with active issuance in strong macroeconomic conditions and a low-interest-rate environment.""
"Nasdaq and SIX Swiss Exchange develop OTC blockchain project.
Nasdaq and SIX Swiss Exchange have teamed up to provide blockchain technology for SIX’s OTC structured products business.
The project will be integrated with several systems currently managed by SIX using Nasdaq’s blockchain architecture stack.
SIX said the partnership will be an opportunity to gain first-hand experience regarding the implementation of the technology and its uses in the post-trade world."
"Asia saw a $10 billion economic loss in July caused by severe flooding, according to a report from Aon Benfield’s catastrophe model development team.
China felt biggest impact, primarily in Yangtze River Basin.
The full chart of current environmental damages in Asia can be viewed below."
"IEX overcomes further hurdle in listings venue push.
SEC approval for process to open and close the market comes as it eyes October launch.
The group, whose origins are as a dark pool operator, was catapulted to fame as the main character of Flash Boys: A Wall Street Revolt by Michael Lewis. It depicted IEX’s group of traders and technologists as crusaders against a “rigged” market.
The linchpin of IEX’s strategy is a 350-microsecond delay on orders. Their “speed bump” is meant to offset what the company argues are structural advantages for high-speed traders over long-term investors."
Implied rate hike probability for September 20th is ~1.4%, November 1st is ~5.4%; 0% probability of rate cut through June 13th, 2018.
VIX ~11.11. 10-yr treasury volatility (TYVIX) ~4.26.
TYVIX had an instantaneous spike today ~1pm (ET) to almost 9.
"US Stocks Fall Amid North Korea Worries
The Dow Jones dropped 62 points, or 0.3%, to 22,025 on Monday shortly after the opening bell in New York, on rising tensions between the US and North Korea. Also, the S&P 500 retreated 11 points, or 0.4%, to 2,464; and the Nasdaq declined 58 points, or 0.9%, to 6,312 around 15 minutes after the opening bell.
Mexico Inflation Rate Highest Since 2008
Consumer prices in Mexico jumped 6.44 percent year-on-year in July of 2017, the most since December 2008, following a 6.31 percent rise in June. The inflation rate came above market expectations of 6.37 percent driven by higher prices of food and energy. On a monthly basis, consumer prices rose 0.38 percent. The core index, which strips out some volatile food and energy prices, rose 0.27 percent during the month and 4.94 percent year-on-year. The central bank expects inflation to stay above the 3-4 percent target in 2017 and to converge to 3 percent by the end of 2018.
European Equities Close Lower on US-North Korea Tensions
The FTSE 100 finished down 45 points, or 0.6%, to 7,498 on Wednesday as escalating tensions on the Korean peninsular hit sentiment. Other major European indices closed in the red: The DAX 30 fell 138 points, or 1.1%, to 12,154; the CAC 40 retreated 73 points, or 1.4%, to 5,146; the IBEX 35 declined 139 points, or 1.3%, to 10,596; and the FTSE MIB dropped 200 points, or 0.9%, to 21,848.
Portuguese Jobless Rate Falls to 8-Year Low in Q2
Portuguese unemployment rate fell to 8.8 percent in the second quarter of 2017 from 10.1 percent in the previous period and 10.8 percent in the same quarter of 2016. It was the lowest jobless rate since the first quarter of 2009, as the number of unemployed declined by 62.5 thousand from the previous period to 461.4 thousand while the number of employed increased by 102.3 thousand to 4.76 million. Compared to a year earlier, unemployment went down by 97.9 thousand and employment increased by 157.9 thousand. Also, youth unemployment rate fell to 22.7 percent, down by 2.4 percentage points from the previous period and by 4.2 percentage points a year earlier.
Russia New Car Sales Rise 18.5% in July
Sales of new passenger cars in Russia increased by 18.5 percent year-on-year to 129,685 in July 2017. In the first seven months of the year, sales rose 8.5 percent from the same period of the previous year to 847,703.
Chinese Yuan Hits 44-week High
USDCNY decreased to a 44-week low of 6.6906.
KOSPI Slides On Geopolitical Unease
South Korea's KOSPI finished down 26 points, or 1.1 percent, to 2368 on Wednesday 9th of August, as financial markets were rattled by rising tensions between the US and North Korea. It was the lowest close for the index since late June this year despite the Korean Won falling over 0.8 percent from the previous trading session to a 1-month low. US President Donald Trump said that North Korea would be met "with fire & fury". Pyongyang responded by threatening to attack the US bases at Guam that sparked fears nuclear weapons would be involved. The technology sub-index fell around 2 percent with electronic giants SK Hynix and Samsung down 3.2 percent and 3 percent respectively.
Japan Producer Prices Rise the Most in Near 3 Years
Producer prices in Japan rose 2.6 percent year-on-year in July 2017, following an upwardly revised 2.2 percent rise in the prior month and beating market consensus of a 2.4 percent gain. It was the fastest rise in producer inflation since November 2014, as prices increased at faster paces for: lumber & wood products (2.1 pct vs 1.8 pct in June), petroleum & coal (11.8 pct vs 10.8 pct), nonferrous metals (13.0 pct vs 11.4 pct) and electronic components (1.8 pct vs 1.7 pct). Meanwhile, cost rose less for: chemicals (3.3 pct vs 3.7 pct) and metal products (1.5 pct vs 1.6 pct). In contrast, prices fell for: pulp (-0.2 pct vs -0.5 pct), production machinery (-1.0 pct vs -0.7 pct), information (-1.6 pct vs -1.7 pct) and transport equipment (-0.4 pct vs -0.4 pct).Producer inflation was steady for: textile (0.2 pct) and iron & steel (11.3 pct). On a monthly basis, producer prices rose 0.3 percent, compared to an upwardly revised 0.1 percent rise in June."
"Office Depot will offer same-day delivery to business and consumer customers in Atlanta, Los Angeles and the Miami/Fort Lauderdale area.
Rival Staples introduced same-day service in four markets last year.
Office Depot and Staples join the growing number of major retailers offering same-day delivery, largely in response to Amazon’s increasingly aggressive shipping offers. In 2016, 36 of the Top 1000 online retailers in North America offered same-day shipping, up from 30 a year earlier, according to Top500Guide.com.
Providing the same-day delivery service for Office Depot will be Deliv, which handles deliveries for some 4,000 clients, including such major retailers as Macy’s Inc. (No. 6 in the Top 1000), Best Buy Co. Inc. (No. 10) and PetSmart Inc. (No. 365)."
"Yelp partners with Curbside to add order pickup to its app for CVS, Pizza Hut and more.
Curbside, a startup powering same-day shopping experiences for traditional brick-and-mortar retailers, including CVS, is today announcing a new partnership with Yelp that will allow consumers to shop in Yelp’s app, then pick up their items locally. For shoppers, the idea is that they’ll be able to browse area businesses’ products and promotions in Yelp, then drive to the store to pick up their order – without even having to get out of their car to retrieve it."
"JLL: U.S. Gulf Coast to see most growth from Panama Canal expansion.
U.S. Gulf Coast ports are expected to benefit more than East Coast ports in the near term, and to the detriment of West Coast ports, according to a recent report from JLL."
"GLP posts 29% fall in Q1 profit on lower revaluations.
Asia's biggest warehouse operator Global Logistic Properties (GLP) reported on Tuesday (Aug 8) a 28.9 per cent fall in net profit to US$144.2 million (S$196.4 million) for the first quarter from US$202.9 million in the year-ago period on lower revaluations.
Core earnings excluding revaluations were stable year-on-year, underpinned by recurring income from operations and the continued expansion of GLP's fund management platform."
"Shippers' Law: Contained losses.
A U.S. district court has upheld the decision of the American Club to deny coverage to TransAtlantic Lines over costs associated with a suit resulting from lost cargo, ruling the association’s international deliberations were legally binding."
"Piece By Piece: 14 Offsite Construction Companies Transforming The Building Industry.
Offsite construction is not a new concept — but it is one that has seen a resurgence in recent years. From Marriott opening its first modular hotel, to tech giants like Alphabet investing in modular housing, to Japanese retailer Muji launching prefab micro-homes, offsite construction methods are gaining traction. And as they realize benefits such as decreased costs, enhanced efficiency, and greater worker safety, participants across the construction value chain are increasingly pushing the space forward."
"Blizzard and DeepMind turn StarCraft II into an AI research lab.
Starcraft II has been a target for Alphabet’s DeepMind AI research for a while now – the UK AI company took on Blizzard’s sci-fi strategy game starting last year, and announced plans to create an open AI research environment based on the game to make it possible for others to contribute to the effort of creating a virtual agent who can best the top human StarCraft players in the world. Now, DeepMind and Blizzard are opening the doors to that environment, with new tools including a machine learning API, a large game replay dataset, an open source DeepMind toolset and more."
"Vantiv and Worldpay agree to $12 billion merger to create global ecommerce payments giant.
Vantiv, which was founded out of Ohio in 1971, processes credit card payments on behalf of merchants — handling 25 billion transactions and nearly $1 trillion in sales annually in the U.S."
"GS Yuasa's new battery to double electric car range.
Lithium Energy Japan, a joint venture with trading house Mitsubishi Corp. and carmaker Mitsubishi Motors, will develop the cells, which will be produced at its plant in Shiga Prefecture and supplied to automakers in Japan and Europe.
Mitsubishi Motors' i-MiEV compact, for instance, has a scope of around 170km per charge. The new battery would extend the range to some 340km, comparable to that of a large electric vehicle which can hold a bigger battery, and close to the limit of a gasoline-fueled car with a full tank."
"Distributed Wind Power Keeps Spinning, Growing.
The 2016 Distributed Wind Market Report offers the fifth annual analysis of distributed wind power, which largely involves generating wind power near where it will be used instead of purchasing it from large, centralized wind farms. Distributed wind can range from a small, solitary turbine at a remote cabin to several large turbines powering an entire neighborhood.
Third-party financing and leasing options are enabling companies and individuals to generate wind power on their properties. These options provide flexibility that eases the financial and logistical burdens of installing and operating wind turbines."
Some traditional utilities are also offering distributed energy design, financing, and installation as a service.
Startup/SME of the Day.
"MailHaven is a smart mailbox that tracks and protects your packages.
No more missed deliveries. No more stolen packages.
The App - The MailHaven app for iOS allows you to manage your online purchases and track shipments with ease.
The Hardware - MailHaven’s smart, IoT-enabled mailbox protects your packages and alerts you when they arrive."
"Khajuraho Group of Monuments.
The temples at Khajuraho were built during the Chandella dynasty, which reached its apogee between 950 and 1050. Only about 20 temples remain; they fall into three distinct groups and belong to two different religions – Hinduism and Jainism. They strike a perfect balance between architecture and sculpture. The Temple of Kandariya is decorated with a profusion of sculptures that are among the greatest masterpieces of Indian art."
JP: Tertiary Index, 12:30 AM ET
FR: Industrial Production, 2:45 AM ET
IT: Merchandise Trade, 4:00 AM ET
GB: Industrial Production, 4:30 AM ET
GB: Merchandise Trade, 4:30 AM ET
US: Jobless Claims, 8:30 AM ET
US: PPI-FD, 8:30 AM ET
US: Bloomberg Consumer Comfort Index, 9:45 AM ET
US: EIA Natural Gas Report, 10:30 AM ET
US: Treasury Budget, 2:00 PM ET
US: Fed Balance Sheet, 4:30 PM ET
US: Money Supply, 4:30 PM ET
SG: GDP, 8:00 PM ET
https://tradingeconomics.com/calendar (More complete listing, including consensus)