Random Market News, 17 July
2017
Market Info
"U.S. makes lower trade deficit top priority in NAFTA talks."
http://www.reuters.com/article/us-usa-trade-nafta-statement-idUSKBN1A2272
"Louisiana producers face up to $50 billion in
litigation: state oil, gas group.
Lawsuits alleging the hydrocarbons industry is largely
responsible for the erosion of Louisiana's southern coast could cost
participants upwards of $50 billion in damages and irreparably harm the state's
business reputation, an industry association executive said Monday."
"Amid row, China holds 'live fire' drill in Tibet.
China is showing its military muscle through a "live fire
exercise" involving howitzers and anti-tank grenades in Tibet, the state
media said on Monday. The brigade engaged in the drill is one that has been
"responsible for frontline combat missions", it said."
"Vietnam renews India oil deal in tense South China Sea.
Vietnam has extended an Indian oil concession in the South China Sea and
begun drilling in another area it disputes with China in moves that could
heighten tensions over who owns what in the vital maritime region."
http://www.reuters.com/article/us-southchinasea-vietnam-idUSKBN19R25P
In the background, various
articles related to the 19th National Congress of the Chinese
Communist Party.
http://www.scmp.com/chinas-leadership-reshuffle-2017
"The Incredible Shrinking Hedge Fund Industry.
Assets invested in alternative investment strategies rose by 10 percent
globally last year, according to a new survey. The winner? Global credit. The
loser: hedge funds."
"Dutch doctors' scheme cuts defensive equities, hedge funds."
"Largest alternatives managers gain 10.4% in AUM — Willis Towers
Watson.
The 100 largest alternatives money managers recorded a 10.4% increase in
assets under management to $4.06 trillion in 2016, with real estate managers
taking the lion's share, Willis Towers Watson's Global Alternatives Survey
found."
"Preqin: Emerging Market Private Equity Assets Boom to Cross $500
Billion Mark."
"Investor Love Affair With Emerging Bonds Is Losing Momentum."
"Equity Risk Premium Appears Intact.
Investors should expect to continue to earn an equity risk premium
comparable to a 3.8 per cent historical long-term average, based on new
analysis that quantifies the effect of share buybacks – and the decline of
dividends – as a major driver of equity returns."
http://www.top1000funds.com/analysis/2017/07/13/equity-risk-premium-appears-intact/
"Factors Trump Skill: MSCI.
The authors examined five-year active performance data from 1315
diversified active global and international mutual funds over 13 years from
September 2003 to December 2016. They found that for the top-performing funds,
55 per cent of active return was due to factors and 45 per cent was from stock
selection."
http://www.top1000funds.com/analysis/2017/07/14/factors-trump-skill-msci/
"Comment: Not all diversified growth funds depend on beta."
Data dump.
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
Implied rate hike probability on July 26th ~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 ~9.82. 10-yr treasury vol (TYVIX) ~3.89.
http://www.cboe.com/products/vix-index-volatility/volatility-on-interest-rates
News feed.
"Eurozone June Inflation Rate Confirmed At
6-Month Low
Consumer prices in the Euro Area increased by 1.3
percent year-on-year in June 2017, matching the flash estimate and easing from
a 1.4 percent rise in May. It was the lowest inflation rate since December last
year, as cost of energy and unprocessed food rose at a slower pace, final
figures showed. Annual core inflation, which excludes volatile prices of energy
and unprocessed food and tobacco and at which the ECB looks in its policy
decisions, rose to 1.1 percent from 0.9 percent in May. On a monthly basis,
consumer prices were unchanged.
SSE Composite Plummets To 4-Week Low On Monday
Shanghai's SSE Composite tumbled 46 points, or 1.4
percent, to 3176.5 on Monday 17th of July despite most Asian markets closing in
the green. The mainland index finished at its lowest level since mid-June,
dropping more than 2.5 percent within the first 30 minutes of opening, before
staging a slight recovery as better than expected macroeconomic data was
released mid-session. Over the weekend, Chinese President Xi was reportedly
seeking to establish a new cabinet-level committee, triggering fears of further
regulatory tightening, which may have contributed to the the sharp selloff
today. Meanwhile, Shenzhen's Component Index dived 372 points, or 3.6 percent,
to 10,055.8 and markets in Japan were closed for Marine Day.
Stocks in Chile Hit All-time High
IGPA increased to an all-time high of 25006.
Stocks in Greece Hit 28-month High
Athens General increased to a 28-month high of 859.27.
Greece 10Y Bond Yield Hits 7-year Low
Greece 10 Year Government Bond Yield decreased to a
7-year low of 5.297%.
Dollar Index Hits 44-week Low
US Dollar decreased to a 44-week low of 95.03.
Canadian Dollar Hits 14-month High
USDCAD decreased to a 14-month low of 1.2639.
Singapore Dollar Hits 40-week High
USDSGD decreased to a 40-week low of 1.3687.
Euro Hits 14-month High
EURUSD increased to a 14-month high of 1.1489."
https://tradingeconomics.com/stream
http://www.marketwatch.com/newsviewer#
Logistics
"UK Not Ready for Brexit's Impact on Food, Report Warns."
https://www.laboratoryequipment.com/news/2017/07/uk-not-ready-brexits-impact-food-report-warns
"Uber Rival Grab in Talks for Up to $2 Billion from SoftBank, China’s
Didi."
"Congestion is reportedly continuing at key European container ports
Rotterdam and Antwerp, causing lines to introduce congestion surcharges for
barge and feeder services."
"Container shipping group CMA CGM and reefer vessel operator Seatrade
Group today unveiled a “unique” collaboration in the form of a vessel-sharing
agreement incorporating the services known by CMA CGM as ‘PAD’ and by Seatrade
as ‘Meridian’."
Tech
"Timeline: Smart Home M&A On The Upswing.
Corporate acquirers in the space have included tech giants Microsoft,
Google, Samsung, and Apple."
https://www.cbinsights.com/blog/smart-home-mergers-acquisition-ipo-exits-timeline/
"VCs double down on mega financings, adapt to delayed exits."
https://venturebeat.com/2017/07/17/vcs-double-down-on-mega-financings-adapt-to-delayed-exits/
"Formula E Comes to Brooklyn."
http://spectrum.ieee.org/cars-that-think/transportation/advanced-cars/formula-e-in-brooklyn
"Scientists at Caltech and USC have discovered a way to speed up the
slow part of the chemical reaction that ultimately helps the earth to safely
lock away, or sequester, carbon dioxide into the ocean. Simply adding a common
enzyme to the mix, the researchers have found, can make that rate-limiting part
of the process go 500 times faster."
https://phys.org/news/2017-07-key-carbon-sequestration.html
"Space debris removal startup Astroscale secures $25m Series C.
Founded in 2013, Astroscale’s goal as a space company is focused on
securing long-term spaceflight safety by providing space debris removal
services."
https://www.dealstreetasia.com/stories/astroscale-25m-series-c-round-77880/
Random
"Costiera Amalfitana
The Amalfi coast is an area of great physical beauty
and natural diversity. It has been intensively settled by human communities since
the early Middle Ages. There are a number of towns such as Amalfi and Ravello
with architectural and artistic works of great significance. The rural areas
show the versatility of the inhabitants in adapting their use of the land to
the diverse nature of the terrain, which ranges from terraced vineyards and
orchards on the lower slopes to wide upland pastures."
http://whc.unesco.org/en/list/830
Events on 7/18 (ET)
EZ: ECB Lending
Survey, 4:00 AM ET
GB: CPI, 4:30
AM ET
GB: Producer
Price Index, 4:30 AM ET
DE: ZEW Survey, 5:00
AM ET
US: Import and
Export Prices, 8:30 AM ET
US: Redbook, 8:55
AM ET
US: Housing
Market Index, 10:00 AM ET
US: Treasury
International Capital, 4:00 PM ET
http://online.wsj.com/mdc/public/page/2_3063-globalEconomicCalendar.html
https://tradingeconomics.com/calendar (More complete listing, including consensus)