Random Market News, 25 July 2017

 

Market Info. 1

Logistics. 3

Tech. 3

Random.. 5

Events on 7/26 (ET) 5

 

 

Market Info

 

"SEC Issues Investigative Report Concluding DAO Tokens, a Digital Asset, Were Securities.

The Securities and Exchange Commission issued an investigative report today cautioning market participants that offers and sales of digital assets by "virtual" organizations are subject to the requirements of the federal securities laws. Such offers and sales, conducted by organizations using distributed ledger or blockchain technology, have been referred to, among other things, as "Initial Coin Offerings" or "Token Sales.""

https://www.sec.gov/news/press-release/2017-131

 

"China to convert all giant state companies into joint-stock firms by end-2017.

About 90 percent of China's state-owned firms have already completed the process, which has helped improve their governance structures and management, the cabinet said in a statement on its website on Wednesday."

http://www.reuters.com/article/us-china-economy-soe-reforms-idUSKBN1AB07F

 

"Xi tears up succession script with Chongqing shocker.

Chinese president promotes yet another protege defying consensus candidates."

http://asia.nikkei.com/Features/China-up-close/Xi-tears-up-succession-script-with-Chongqing-shocker

 

"European banks struggle to solve toxic shipping debt problem."

http://www.reuters.com/article/us-europe-banks-shipping-idUSKBN1A90GG

 

"June Merger Activity Slower than in 2016, Spending Up."

https://insight.factset.com/june-merger-activity-slower-than-in-2016-spending-up

 

"Private Capital Managers Are Charging Higher Fees.

Private equity, real estate, infrastructure, and distressed debt funds deployed in 2017 charged higher management fees on average than previous vintage year funds, according to a Preqin report Tuesday. Investors are seeing higher rates as they hand near-record amounts of cash to private-capital managers, which the data provider says raised at least $356 billion in the first half of this year."

http://www.institutionalinvestor.com/article/3736289/asset-management-equities/private-capital-managers-are-charging-higher-fees.html

 

"Fund Managers Warn of European Property Bubble.

Investment firms are ringing the alarm as retail inflows and lower bond yields drive up asset prices in European commercial real estate."

http://www.institutionalinvestor.com/article/3736283/investors-pensions/fund-managers-warn-of-european-property-bubble.html

 

Data dump.

 

Implied rate hike probability tomorrow is still ~3.1%, September 20th ~8.2%; 0% probability of rate cut through June 13th, 2018.

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

 

VIX ~9.43. 10-yr treasury vol (TYVIX) ~4.20.

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.

 

"Dollar Hits 13-Month Low Ahead of Fed Meeting

The dollar index fell 0.3% to 93.79 around 8:00 AM New York time on Tuesday, as the Federal Reserve starts its two day meeting. While no change in the Fed fund rate is expected, investors will be looking for any details on central bank's plan to trim its USD 4.5 trillion balance sheet.

 

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.

 

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 Austria Hit 8-year High

ATX increased to a 8-year high of 3227.

 

Stocks in Singapore Hit 23-month High

STI increased to a 23-month high of 3335

 

Copper Hits 25-month High

Copper increased to a 25-month high of 2.839 USD/Lbs."

 

https://tradingeconomics.com/stream

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

 

Logistics

 

"Freight-Booking Startup Convoy Raises $62 Million.

The funding round, led by Y Combinator, will go toward expanding nationally and adding more shippers and trucking companies to its platform."

https://www.wsj.com/articles/freight-booking-startup-convoy-raises-62-million-1500966000

 

"Climate change could have a dramatic impact on aviation across the world, according to a recently released paper by a team from Columbia University and Logistics Management Institute, a consulting firm. The researchers predict that as early as the middle of the century, some 30% of flights departing during the most blistering parts of the day will not be able to take off at their maximum weight because the hotter, less dense air will not provide enough lift."

https://www.economist.com/blogs/gulliver/2017/07/can-t-stand-heat?fsrc=scn/tw/te/bl/ed/

 

"Supply Chain Asked to Help as Food Waste Hits Historic Highs.

“In Arizona and around the country 18% of landfills is food waste, according to the EPA - and that may be a conservative number,” says Tim Richards, Marvin and June Morrison Chair in Agribusiness at the W. P. Carey School."

http://mhlnews.com/global-supply-chain/supply-chain-asked-help-food-waste-hits-historic-highs

 

"St. Lawrence Seaway cargo volumes up 20% in 2017.

The Great Lakes region has seen steady economic growth, with cargo shipping increasing two million metric tons more in Q2 than during the same period last year."

http://www.americanshipper.com/main/news/68192.aspx

 

"Swissport Cargo USA opened a new 138,000-square foot facility, located in the North Cargo Area of Chicago’s O’Hare Airport.

The ground handler said that it’s facility’s automated material handling system was the “first of its kind in the region” that could accommodate over 120 10-ft ULDs at a time using pallet platforms and electric ULD movers – preventing them from ever touching the ground. The material handling system is integrated with the back ramp where ULD’s are directly stored into the system or delivered to the customer."

http://aircargoworld.com/swissport-cargo-usa-opens-warehouse-at-chicago-ohare/

 

"Q&A: Greg West, C.H. Robinson Worldwide, Vice President of LTL Transportation.

LM Group News Editor Jeff Berman recently caught up with Greg West, C.H. Robinson Worldwide, Vice President of LTL Transportation to talk about various aspects of the less-than-truckload sector, including pricing, the impact of e-commerce and last mile services on LTL, and other industry topics."

http://www.logisticsmgmt.com/article/qa_greg_west_c.h._robinson_worldwide_vice_president_of_ltl_transportation

 

Tech

 

"Iran's tech sector blooms under shield of sanctions.

The names may be unfamiliar but the services are immediately recognisable: Snapp is Iran's answer to Uber, Digikala is its Amazon, and Pintapin its Booking.com.

US sanctions have protected the Islamic republic's tech sector, barring Silicon Valley from profiting from one of the world's most promising emerging markets, and giving a free run to domestic start-ups to recreate their services."

https://phys.org/news/2017-07-iran-tech-sector-blooms-shield.html

Nice case study for Hamilton/List economic models.

 

"Toyota’s new solid-state battery could make its way to cars by 2020.

Toyota is touting its progress on a new kind of battery technology, which uses a solid electrolyte instead of the conventional semi-liquid version used in today’s lithium-ion batteries. The car maker said that it’s near a breakthrough in production engineering that could help it put the new tech in production electric vehicles as early as 2020, according to the Wall Street Journal."

https://techcrunch.com/2017/07/25/toyotas-new-solid-state-battery-could-make-its-way-to-cars-by-2020/

https://www.forbes.com/sites/bertelschmitt/2017/07/25/ultrafast-charging-solid-state-ev-batteries-around-the-corner-toyota-confirms/#2cfedfb44bb0

 

"Uber drivers and delivery persons in France are automatically going to get covered by accident insurance over the coming months. Uber has partnered with French insurance company Axa on this insurance product. It’ll go live this fall and it’s going to be free for independent workers."

https://techcrunch.com/2017/07/25/uber-is-going-to-provide-accident-insurance-in-france-for-free/

 

"People are already replacing their desktop computers with smartglasses."

http://www.businessinsider.com/meta-ar-startup-employees-replace-computers-with-smartglasses-video-2017-7

 

"Space Tech Deals Reach Higher As Funding Dips.

This year’s largest financing round to date was a $75M Series D to Rocket Lab, which aims to develop lightweight commercial rocket launch services."

https://www.cbinsights.com/research/space-tech-startups-deals-funding-trends/?utm_source=CB+Insights+Newsletter&utm_campaign=7f742d44e5-MonNL_7_24_2017&utm_medium=email&utm_term=0_9dc0513989-7f742d44e5-88973453

 

"Online consignment shop thredUp is taking on The RealReal. The e-commerce site for secondhand items today announced the launch of a new luxury goods storefront, simply called Luxe, which is now available as a public beta. Via Luxe, consignment customers can request a “clean out kit” from thredUp, as per usual, and fill it with both their high-end and low-end items, which the company will then sort upon arrival. The luxury items will then be offered for resale on Luxe, which offers sellers up to 80 percent commissions."

https://techcrunch.com/2017/07/25/online-consignment-shop-thredup-takes-on-the-realreal-with-launch-of-luxe/

 

"U.S. Defense Budget May Help Fund "Hacking for Defense" Classes at Universities."

http://spectrum.ieee.org/view-from-the-valley/at-work/education/us-defense-budget-may-help-fund-university-hacking-for-defense-classes

 

"The Transformers: Superheroes of Electrical Inventions.

This technology, now being updated for the first time in more than a century, is at the very root of our electrified civilization.

These are non-Stanley (not wire-wound) devices that take advantage of the piezoelectric effect—the ability of a strained crystal to produce a current, and of a current to strain or deform a crystal.

And the latest innovation is solid-state transformers."

http://spectrum.ieee.org/energy/the-smarter-grid/the-transformers-superheroes-of-electrical-inventions

 

Random

 

"Lednice-Valtice Cultural Landscape.

Between the 17th and 20th centuries, the ruling dukes of Liechtenstein transformed their domains in southern Moravia into a striking landscape. It married Baroque architecture (mainly the work of Johann Bernhard Fischer von Erlach) and the classical and neo-Gothic style of the castles of Lednice and Valtice with countryside fashioned according to English romantic principles of landscape architecture. At 200 km2, it is one of the largest artificial landscapes in Europe."

http://whc.unesco.org/en/list/763

 

Events on 7/26 (ET)


Singapore  
SG: Industrial Production, 1:00 AM ET

Italy  IT: Business and Consumer Confidence, 4:00 AM ET

Great Britain  GB: GDP, 4:30 AM ET

USA  US: MBA Mortgage Applications, 7:00 AM ET

USA  US: New Home Sales, 10:00 AM ET

USA  US: EIA Petroleum Status Report, 10:30 AM ET

USA  US: FOMC Meeting Announcement, 2:00 PM ET

China  CN: Industrial Profits, 9:30 PM ET

 

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

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