Random Market News, 10 August 2017

 

Market Info. 1

Real Assets. 6

Logistics. 7

Tech. 7

Random.. 8

Events on 8/11 (ET) 9

 

 

Market Info

 

"Stocks Drop Most Since May, Bonds Rally on Tension: Markets Wrap.

Rising geopolitical tension rattled financial markets around the world Thursday, sending U.S. stocks to the biggest loss since May and stoking demand for haven assets."

https://www.bloomberg.com/news/articles/2017-08-09/asia-set-to-stem-equity-losses-kiwi-dollar-rises-markets-wrap

 

"World Federation Of Exchanges Publishes H1 2017 Market Highlights.

-          Global market capitalisation was up 16.3% on June 2016. 

-          Value of share trading and the number of trades declined by 9.1% and 12.2% as compared to H1 2016.

-          The total number of new listings was up 44.1%, and investment flows through IPOs were up 109.8%.

-          The total value of investment flows (which includes IPOs and capital raises by already-listed firms) was down 2.7% on H1 2016.

-          Exchange Traded Derivatives (ETD) volumes ended the year 5% down on H1 2016, driven by declines in volumes of stock index futures, currency futures and commodity futures."

http://www.mondovisione.com/media-and-resources/news/world-federation-of-exchanges-publishes-h1-2017-market-highlights/

 

"Competitive Venture Capital Landscape Spurs Still-Rising Valuations.

Median valuations across late-stage, early-stage, and seed fundraising for the first six months of the year have surpassed previous highs, according to a new report from industry data provider PitchBook.

Late-stage venture capital has grown the most dramatically in recent years, with median valuations more than doubling between 2009 and 2015. So far this year, that figure has climbed to $65 million — the highest figure PitchBook has tracked and up from nearly $64 million two years ago.

But the data provider also pointed to the sheer amount of money pouring into venture capital funds: According to PitchBook, these managers have raised more capital over the past four years than in any similar period, amassing an additional $129.4 billion. This, in turn has led to record levels of dry powder, with U.S. managers now sitting on roughly $95 billion of unused capital."

http://www.institutionalinvestor.com/article/3740647/asset-management-regulation/competitive-venture-capital-landscape-spurs-still-rising-valuations.html

Average VC return was ~0.3% last year.

 

"iShares Core Suite Dominates July ETF Flows.

Here are the top 10 asset gatherers by dollar amount among U.S.-domiciled ETFs for July 2017.

Here’s a table showing several common ETF selection criteria, with indications of which ETF issuer’s fund has the advantage in each segment."

https://insight.factset.com/interest-in-cheap-broad-based-and-simple-etfs-continues-in-july

 

"Abu Dhabi informally boycotts western banks with big Qatari investors.

Officials have told bankers that lenders such as Credit Suisse, Deutsche Bank and Barclays are unlikely to win significant mandates in the capital of the UAE in the coming months because of large shareholdings held by Qatar’s sovereign wealth fund and members of the ruling family."

https://www.ft.com/content/607af00a-7ce7-11e7-9108-edda0bcbc928

 

"Wanda turns toward equity market as China tightens debt spigot.

Real estate giant Dalian Wanda Group grew its empire by pursuing scale through leverage, but Beijing's recent crackdown on overseas investments is forcing the Chinese conglomerate to reorganize assets and maximize market value for fundraising.

Wanda responded to state pressure in July by deciding to sell 63.7 billion yuan worth of hotel, theme park and other assets. The group is devoting all of the proceeds from that sale to paying down debt and improving its financial house."

https://asia.nikkei.com/Business/Companies/Wanda-turns-toward-equity-market-as-China-tightens-debt-spigot

 

"U.S. lawmakers will have three weeks to raise America’s $20 trillion borrowing limit and avert a potential debt default when Congress gets back to work next month — the first such deadline to occur during the Trump administration."

https://www.voanews.com/a/clock-ticking-to-avoid-us-debt-default/3980234.html

 

Data dump.

 

Implied rate hike/cut probability for September 20th is ~0.0%/2.7%, November 1st is ~4.9%/2.6%.

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

FedWatch Tool is finally showing prospects of rate cuts.

 

VIX ~16.04. 10-yr treasury volatility (TYVIX) ~4.56.

http://www.cboe.com/products/vix-index-volatility/volatility-on-interest-rates

VIX finally rises, and another instantaneous TYVIX spike at ~1pm today to ~6.

 

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 Plunge As North Korea Tensions Escalate

Wall Street closed deeply in the red on Thursday, as escalating rhetorical exchanges between the United States and North Korea sparked volatility. A selloff was seen across sectors and markets. The Dow Jones plunged 205 points or 0.9% to 21844. The S&P 500 retreated 35 points or 1.5% to 2438. The Nasdaq plummeted 135 points or 2.1% to 6217.

 

Mexico Holds Key Interest Rate at 7.0%

The Banco de Mexico held its benchmark rate at 7 percent on August 10th, as widely expected, saying previous rate hikes were already beginning to slow the pace of inflation while the balance of risks to growth has improved. Annual inflation rate hit 6.44 percent in July, its highest level since December 2008.

 

UK Trade Deficit Largest in 9 Months

The UK’s deficit on trade in goods and services widened by £2.0 billion to £4.56 billion in June 2017 from a revised £2.52 billion in May. It was the biggest trade gap since September last year, as imports rose in the month by 3.3 percent to an all-time high of £53.95 billion, due to an increase in purchases of both goods and services. Exports dropped 0.7 percent to £49.39 billion. In the second quarter of the year, the trade deficit widened to £8.94 billion from £8.84 billion in the previous three-month period.

 

Stocks in Europe Fall Further on North Korea Tensions

The FTSE 100 fell 108 points, or 1.4%, to 7,391 around 3:30 PM London time on Thursday, as geopolitical tensions on the Korean peninsular continued to weigh on sentiment. Also, other European indices traded deep in the red: The DAX 30 declined 125 points, or 1%, to 12,028; the CAC 40 dropped 32 points, or 0.6%, to 5,114; the IBEX 35 retreated 127 points, or 1.2%, to 10,468; and the FTSE MIB went down 121 points, or 0.6%, to 21,729.

 

The gender pay gap in Germany extends to children’s pocket money. On average, pre-school boys get about €20 ($23) a month and girls get €17 ($20). (Faz)

 

South Africa Manufacturing Output Falls 2.3% in June

South Africa's manufacturing production decreased by 2.3 percent year-on-year in June 2017, following an upwardly revised 0.9 percent fall in the previous month and compared with market expectations of a 1.9 percent drop. It was the third straight month of decline, as output contracted the most for petroleum, chemical products, rubber and plastic products (-10.6 percent from -8.4 percent in May) and wood and wood products, paper, publishing and printing (-4 percent from -3.6 percent). On a monthly basis, manufacturing production showed no growth after falling 0.3 percent in May.

 

Egypt Inflation Rate at 31-Year High in July

Consumer prices in Egypt jumped 33 percent year-on-year in July of 2017, compared to 29.8 percent increase in the previous month. It was the highest inflation rate since June 1986, after the central bank floated its currency in November last year as part of deal with the International Monetary Fund. Egypt raised fuel prices by up to 50 percent in July to help meet the term of the $12 billion IMF loan agreement. Annual core inflation rose to 35.26 percent in July from 31.95 percent in June.

 

Hang Seng Leads Asian Selloff

Hong Kong's Hang Seng Index sank 294 points, or 1.1 percent, to 27,463 on Thursday 10th of August, leading a decline in the Asia-Pacific equity markets. It was the largest intraday drop for the index since early July in what appears to be a small correction to its recent bullish run. Financials suffered the largest drop, led by ICBC (-2.3 percent), followed by Ping An Insurance (-2.2 percent), China Life Insurance (-2 percent), China Construction Bank (-1.8 percent), Bank of China (-1.8 percent) and HSBC (-1.6 percent). Declining stocks outnumbered advancing stocks 40 to 9. On the mainland, Shanghai's SSE Composite slipped 14 points, or 0.4 percent, to 3262 and Shenzhen's Component Index fell 64 points, or 0.6 percent, to 10,481. Elsewhere in the Asia-Pacific, Tokyo's Nikkei 225, Australia's ASX 200 and New Zealand's NZX 50 all closed marginally lower. South Korea's KOSPI shed 0.4 percent to 2359 and Taiwan's TAIEX was down by more than 1 percent.

 

Chinese Yuan Hits 46-week High

USDCNY decreased to a 46-week low of 6.6651.

 

Singapore GDP Growth Revised Up To 2.9% in Q2

The Singaporean economy expanded 2.9 percent year-on-year in the June quarter of 2017, up from 2.5 percent in the prior quarter and stronger than preliminary estimates of a 2.6 percent growth. On a quarterly basis, the GDP grew an annualised 2.2 percent in Q2, rebounding from an upwardly revised 2.1 percent contraction in the previous three months and above preliminary estimates of a 0.5 percent expansion."

 

https://tradingeconomics.com/stream

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

https://global.handelsblatt.com/

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

 

Logistics

 

"Slowing Chinese export growth in July surprises analysts.

China’s export growth slowed in July as demand from the US and EU faltered.

Analysts had predicted further gains in the lead up to the ocean shipping peak season but instead export growth in US dollar terms fell to 7.2% year-on-year last month after rising 11.3% in June."

http://www.lloydsloadinglist.com/freight-directory/news/Slowing-Chinese-export-growth-in-July-surprises-analysts/70046.htm

 

"UPS introduces online returns service for e-commerce merchants.

UPS this week introduced a new online offering-set to debut on August 14 in the United States and August 28 in 43 other countries-that enables e-commerce merchants to customize return shipments according to their policy.

Given the ongoing proliferation of e-commerce activity, UPS said UPS Returns Manager provided merchants with a valuable tool to manage returns in a market in which online shoppers return hundreds of billions of dollars in merchandise per year, with some estimates putting the cost of online returns at around 10-15% of the costs of good sold."

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

 

"UPS Capital teams up with Payoneer for cross-border B2B transactions.

With a focus on providing customers and shippers in more than 200 markets and 150 currencies the ability to leverage a secure, digital platform to conduct and perform B2B (business-to-business) transactions protected by licensed escrow, UPS Capital, a financial services subsidiary of UPS, announced a new offering today through a collaboration with cross-border payments company Payoneer.

“We try to cover all aspects of the order-to-cash cycle in the supply chain.”"

http://www.logisticsmgmt.com/article/ups_capital_teams_up_with_payoneer_for_cross_border_b2b_transactions

 

Tech

 

"Why Free Same-Day Delivery Is Becoming A Must-Have For Retailers — And That Shouldn’t Scare Them.

The following is a guest post by Daphne Carmeli. Carmeli is CEO & Founder of Deliv, a same-day delivery solution that bridges the “last mile gap” between retailers and their customers."

https://www.cbinsights.com/research/free-same-day-delivery-benefits-for-retailers/

 

"Microsoft Corp is working on technology that it believes can make blockchain-based systems faster and more private, as it looks to speed up use of the distributed database software by enterprises.

The company said on Thursday that it had developed a system called Coco Framework, which connects to different blockchain networks to solve some of the issues that have slowed down their adoption, including speed and privacy concerns."

http://www.reuters.com/article/us-microsoft-blockchain-idUSKBN1AQ1KD

 

"Consumers may buy fewer cars in areas served by Uber, Lyft: study."

http://www.reuters.com/article/us-uber-usa-lyft-idUSKBN1AQ1NM

 

"U.S. Coast Guard Prints Spare Parts at Sea.

For this initial evaluation of the technology, the RDC is focusing mainly on printers that are sized for a desktop and the use of polymers as the material.

Future efforts will focus on more robust materials including metals."

http://maritime-executive.com/editorials/us-coast-guard-prints-spare-parts-at-sea

 

"Researchers Embed Malware into DNA to Hack DNA Sequencing Software.

Researchers at the University of Washington have shown that by changing a little bit of computer code they can insert malware into a strand of DNA that, when read by DNA sequencing software, allows them to remotely control a computer or cause it to suddenly crash."

http://spectrum.ieee.org/the-human-os/computing/software/researchers-embed-malicious-code-into-dna-to-hack-dna-sequencing-software

 

"How Food Preservatives May Disrupt Human Hormones.

Can chemicals that are added to breakfast cereals and other everyday products make you obese? Growing evidence from animal experiments suggests the answer may be "yes." But confirming these findings in humans has faced formidable obstacles - until now.

"We discovered that each of these chemicals damaged hormones that communicate between the gut and the brain," said Dhruv Sareen, PhD, assistant professor of Biomedical Sciences and director of the Induced Pluripotent Stem Cell Core Facility at the Cedars-Sinai Board of Governors Regenerative Medicine Institute. "When we tested the three together, the combined stress was more robust."

Because the chemical damage occurred in early-stage "young" cells, the findings suggest that a defective hormone system potentially could impact a pregnant mother as well as her fetus in the womb, Sareen said."

https://www.laboratoryequipment.com/news/2017/08/how-food-preservatives-may-disrupt-human-hormones

 

Startup/SME of the Day.

 

"Domuso.

Paper checks, cashier checks and money orders all remain stubbornly predominant as payment methods and there are very few options if a resident loses a job, has an unexpected expense or needs some budget flexibility.

Domuso’s full-stack payment solution goes beyond moving money from A to B.  As a modern fin-tech partner, our vision is to empower people with new payment flexibility and better payment options."

https://domuso.com/about/

Basically a rental payment and financing site (distracting buzzwords aside).

 

Random

 

"Maryland's 3rd Congressional District.

Maryland’s strangely shaped 3rd Congressional district stretches all the way from Baltimore to Montgomery, and contains portions of both cities along with some rural areas in between. It weaves through skinny ribbons of four different counties. Some portions of the district don’t even touch the rest of the district. Some say it looks like a praying mantis. One judge compared it to a “broken-winged pterodactyl.”"

http://www.atlasobscura.com/places/marylands-3rd-congressional-district

 

"Moscow’s Makeover Swaps Soviet Grit for Urban Sparkle.

Smart city apps, historically accurate trees, a working subway. While Washington obsesses over sanctions and hacks, Russia is rebranding its capital as a model of urban planning."

https://www.bloomberg.com/news/features/2017-08-10/moscow-s-makeover-swaps-soviet-grit-for-urban-sparkle

 

Events on 8/11 (ET)


Germany  
DE: CPI, 2:00 AM ET

France  FR: CPI, 2:45 AM ET

Italy  IT: CPI, 4:00 AM ET

Hong Kong  HK: GDP, 4:30 AM ET

India  IN: Industrial Production, 8:00 AM ET

USA  US: Consumer Price Index, 8:30 AM ET

USA  US: Baker-Hughes Rig Count, 1:00 PM ET

 

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

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