Random Market News, 17 August 2017

 

Market Info. 1

Logistics. 4

Tech. 5

Random.. 6

Events on 8/18 (ET) 6

 

 

Market Info

 

"Stock market closes sharply lower as tech shares wither.

U.S. stock benchmarks on Thursday finished down at least 1% as heightened concerns about President Donald Trump’s legislative agenda and news of a terrorist attack in Barcelona combined to foster selling on Wall Street. Technology shares suffered the worst of the beating following disappointing results from Cisco Systems."

http://www.marketwatch.com/story/dow-looks-set-to-break-4-day-win-streak-as-fed-minutes-sink-in-2017-08-17

 

"ECB minutes reveal concern over euro strength.

The eurozone’s top central bankers are concerned about the strength of the euro, minutes of the European Central Bank’s July policy vote reveal.

The single currency has hit a two-and-a-half year high against the dollar in recent months and has risen by almost 5 per cent against a basket of currencies since the middle of May. The communication problem facing the ECB over the currency is especially acute at a time when it is looking make a decision on tapering its €2trn quantitative easing programme.

A strong euro complicates the ECB’s efforts to hit its inflation goal of just under 2 per cent by making imports cheaper and weighing on export growth."

https://www.ft.com/content/7c2d3977-eed2-3915-abb7-c6d3f19646bc

 

"Rolling Back Banking Regulations “Very Dangerous,” Says Fed Vice Chairman.

“I am worried that the U.S. political system may be taking us in a direction that is very dangerous," he told Financial Times in an interview. “It took almost 80 years after 1930 to have another financial crisis that could have been of that magnitude. And now after 10 years everybody wants to go back to a status quo before the great financial crisis. And I find that really, extremely dangerous and extremely short-sighted.""

http://fortune.com/2017/08/16/dodd-frank-rollback-dangerous-short-sighted-fed/

 

"Fed's Kashkari: Debt ceiling a factor in balance sheet runoff start date."

http://www.reuters.com/article/us-usa-fed-kashkari-idUSKCN1AX2E2

 

"Morgan Stanley, Ex-Bank of America Employees Charged in Insider Trading Ring.

A former BAML IT worker abused his access to the investment banking division’s computer system, the SEC alledged Wednesday, and claimed his tips on future M&A activity spawned years of illicit transactions."

http://www.institutionalinvestor.com/article/3742119/investors-pensions/morgan-stanley-ex-bank-of-america-employees-charged-in-insider-trading-ring.html

 

"Pension funds sue 6 investment banks over securities lending market collusion.

Three public pension funds claim in a federal class-action lawsuit filed Thursday that six major investment banks colluded to overcharge investors and maintain control of the $1.72 trillion stock loan market, according to a court document.

The suit was filed in U.S. District Court in New York by the $28.5 billion Iowa Public Employees' Retirement System, Des Moines; $14.2 billion Orange County Employees Retirement System, Santa Ana; and $2.5 billion Sonoma County Employees' Retirement Association, Santa Rosa, Calif.

The suit accuses Bank of America, Credit Suisse, Goldman Sachs, J.P. Morgan Chase, Morgan Stanley (MS) and UBS of violating antitrust law by conspiring to overcharge investors and obstructing efforts to create competitive electronic exchanges, according to the documents."

http://www.pionline.com/article/20170817/ONLINE/170819905/pension-funds-sue-6-investment-banks-over-securities-lending-market-collusion

 

"Dalio Steps Into Publishing With “Principles”.

Ray Dalio will be making moves in the publishing world when his first book, “Principles,” releases on September 19."

https://www.ai-cio.com/news/dalio-steps-publishing-principles/

https://www.amazon.com/Principles-Life-Work-Ray-Dalio/dp/1501124021

 

"The Charts That Tell the Story of 2017 (So Far)."

https://insight.factset.com/factset-experts-illustrate-2017-so-far-with-charts

 

Data dump.

 

VIX ~15.55. 10-yr treasury volatility (TYVIX) ~4.22.

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

 

Implied Fed rate hike/cut probability for September 20th is ~0.0%/4.1%, November 1st is ~3.8%/3.9%.

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

 

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 Tumble On Thursday Over Policy Concerns

US Stocks closed deep in the red on Thursday, as market volatility spiked higher on speculation that President Trump’s policy agenda will be affected going forward after controversial remarks over a rally in Virginia and a terrorists attack in Barcelona. The Dow Jones plunged 274 points or 1.2% to 21751. The S&P 500 retreated 36 points or 1.5% to 2432. The Nasdaq plummeted 123 points or 1.9% to 6222.

 

US Industrial Output Growth Below Estimates

Industrial production in the United States increased 0.2 percent month-over-month in July of 2017, lower than a 0.4 percent gain in June and below market expectations of 0.3 percent. Manufacturing output shrank 0.1 percent, mainly due to a fall in production of motor vehicles and parts and mining rose at a slower pace while utilities rebounded.

 

Chile Leaves Interest Rate Unchanged At 2.50%

Chile’s central bank kept the benchmark interest rate unchanged at 2.50 percent in its August 17th, 2017 meeting following no change in its July and June meetings. The outcome matched consensus expectations, and leaves the interest rate standing at its lowest level since September of 2010. Policymakers underscored that economic conditions improved since the last meeting, with the peso appreciating the copper prices heading north. Members of the board did not adopt an explicit bias on this occasion. Chile's consumer prices increased 1.7 percent year-on-year in July of 2017, the same pace as in the previous month.

 

Eurozone July Inflation Rate Confirmed at 1.3%

Consumer prices in the Euro Area increased by 1.3 percent year-on-year in July 2017, the same pace as in the previous month and in line with the preliminary estimate. The inflation rate stood at its lowest level since December last year, as prices of unprocessed food rose at a slower pace while cost of energy, processed food, alcohol and tobacco, and non-energy industrial goods grew further.

 

Stocks in Hungary Hit All-time High

BUX increased to an all-time high of 37122.

 

Russia Producer Inflation Slows to Over 1-Year Low

Producer prices in Russia increased 1.8 percent year-on-year in July of 2017, below 2.9 percent in June. The producer inflation slowed for the fifth consecutive month to the lowest since April of 2016. Prices rose less for manufacturing (2.2 percent compared to 3.1 percent in June) and electricity, gas and water supply (3.6 percent from 5 percent) and fell for mining (-0.6 percent compared to 0.5 percent). On a monthly basis, producer prices declined 0.5 percent.

 

Egypt Interest Rate Kept Steady At 18.75%

The central bank of Egypt kept its benchmark overnight deposit interest rate unchanged at 18.75 percent on August 17th of 2017 after hiking 200 bps on July 6th. Policymakers said there are stronger risks to inflation derived from demand-side pressures and after the government raised electricity prices. 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.

 

KOSPI Maintains Recovery On Thursday

South Korea's KOSPI gained 13.4 points, or 0.6 percent, to 2362 on Thursday 17th of August, despite tensions mounting again on the Korean Peninsula. Several days after North Korea scaled back its threats to attack US bases in the Pacific, Presidents Moon Jae-In and Donald Trump have agreed to discuss proactive maneuvers including potential US military strikes as options to curb the North's nuclear and missile programs. Meanwhile, the Korean Won regained traction after dovish FOMC minutes. Top performers this session were retail giant Lotte Shopping (+9.2 percent) and Samsung Electronics (+1.8 percent). Advancing shares outnumbered declining shares 470 to 342."

 

https://tradingeconomics.com/stream

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

https://global.handelsblatt.com/

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

 

Logistics

 

"Returns of Online Purchases a Key Factor in E-Commerce Boom.

While the growth of e-commerce is widely viewed as a boon for last-mile deliveries, customer returns of the merchandise that’s delivered also are forcing change across carriers’ and shippers’ supply chains, industry experts said.

“There are 400 million more packages moving in reverse this year than last,” said Tony Sciarrotta, executive director of the Atlanta-based Reverse Logistics Association. And with those returns exists an opportunity for fleets, he said.

“It’s making trucking get rich.”

Retail is estimated as a $5 trillion market, with about 10% of that e-commerce, according to RLA. The organization puts the return rate on in-store purchases at about 8%, but for online shopping, the rate leaps to 25-40%."

http://www.ttnews.com/articles/returns-online-purchases-key-factor-e-commerce-boom

 

"IATA and FIATA pilot new Air Cargo Program in Canada.

In a joint statement, the airline and forwarding trade bodies claimed that IFACP (IATA FIATA Air Cargo Program) addresses the principal-to-principal relationship between freight forwarders and airlines, helping to clarify liability issues on cargo claims, as well as supporting members to work towards key industry goals such as e-freight adoption.

The new Program, which will be rolled out globally following the Canadian pilot, replaces the existing Cargo Agency Program, and will be jointly managed by forwarders and airlines as equal partners in the decision-making process.

“Given that more than 80% of transactions are performed by freight forwarders acting as principals, the proposed IFACP better clarifies and validates the business through a buyer-seller relationship," said Juan Antonio Rodriguez, IATA Director, FDS Operations."

http://www.lloydsloadinglist.com/freight-directory/news/IATA-and-FIATA-pilot-new-Air-Cargo-Program-in-Canada/70102.htm

 

"Food logistics enters new transformational stage.

Cold chain imperatives will shape site selection like never before."

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

 

"FMCSA [Federal Motor Carrier Safety Administration] offers further ELD [Electronic Logging Devices] details.

Agency still expects to have its web services system for transferring ELD data up and running by December."

http://fleetowner.com/driver-logs/fmcsa-offers-further-eld-details

 

"Beijing to cover $3.3bn debts for state shipbuilder CSIC [China Shipbuilding Industry Corporation].

The funds will be used to ease the shipbuilder's exposure to the embattled offshore sector."

https://lloydslist.maritimeintelligence.informa.com/LL110949/Beijing-to-cover-33bn-debts-for-state-shipbuilder-CSIC

 

"Niche carriers often outperform the top 16 global container lines.

The world’s top carriers are often outperformed by niche carriers on schedule reliability, but shippers and shippers opting to book slots with them are also taking larger risks, according to SeaIntel."

http://www.lloydsloadinglist.com/freight-directory/news/Niche-carriers-often-outperform-the-top-16-global-container-lines/70110.htm

 

"UPS adds VR to driver training to simulate road conditions, hazards.

UPS is moving some of its driver training from touchscreens to virtual reality headsets."

http://www.zdnet.com/article/ups-adds-vr-to-driver-training-to-simulate-road-conditions-hazards/

 

"Hong Kong ground handler uses virtual reality to boost performance.

Hactl has introduced a revolutionary Virtual Reality training environment designed to enable new staff to gain training experience before working on the airport ramp."

http://www.lloydsloadinglist.com/freight-directory/news/Hong-Kong-ground-handler-uses-virtual-reality-to-boost-performance/70113.htm

 

Tech

 

"Fortune 500 Tech Investment And M&A Report.

Tech investments by non-tech incumbents are on pace for a new annual high. Between 2013 and 2016, private tech investments by non-tech Fortune 500 corporations grew 149%. Goldman Sachs is the most active non-tech investor.

Tech investments by non-tech corporations are on pace to surpass that of tech corporations for the first time. 51% of Fortune 500 investments into private tech companies have come from non-tech corporations in 2017 YTD, up from 29% in 2014."

https://www.cbinsights.com/research/report/fortune-500-tech-investment/

 

"Peanut Allergies Cured in Children, Australian Scientists Report.

“Ours is the first study to show prolonged eight-week sustained unresponsiveness several years after treatment has ceased, and suggests the possibility that tolerance is a realistic target for food allergy treatments,” writes the team of scientists, from the Murdoch Childrens Research Institute.

The treatment is called “probiotic and peanut oral immunotherapy,” or PPOIT. It involves children being given a combination of the probiotic Lactobacillus rhamnosus, a bacteria commonly found in healthy female genital tracts and yogurt and dairy products, and a peanut protein. The amount of protein is gradually increased over the course of treatment, which during these clinical trials extended for 18 months."

https://www.laboratoryequipment.com/news/2017/08/peanut-allergies-cured-children-australian-scientists-report

Gut critters getting used to peanuts.

 

"B2B platform Releaf helps African businesses by taking the guesswork out of networking.

Releaf is a new B2B marketplace that wants to help African businesses prosper by helping them find partners they can trust. The startup, which is currently taking part in Y Combinator, has signed up about 1,000 businesses since its public launch in Nigeria on August 3.

By taking the verification and networking process online and making it faster, Releaf hopes to help African industries unleash their full potential.

Releaf wants to mimic the interactions that take place on WhatsApp but ensure they go more smoothly by displaying who each business has already worked with, as well as important information like pricing that might otherwise not be mentioned until after several days of back-and-forth."

https://techcrunch.com/2017/08/17/b2b-platform-releaf-helps-african-businesses-by-taking-the-guesswork-out-of-networking/

 

"Self-Driving Wheelchairs Debut in Hospitals and Airports.

The Singapore-MIT Alliance for Research and Technology, or SMART, developed the former, first deployed in Singapore’s Changi General Hospital in September 2016, where it successfully navigated the hospital’s hallways. It is the latest in a string of autonomous vehicles made by SMART, including a golf cart, electric taxi and, most recently, a scooter that zipped more than 100 MIT visitors around on tours in 2016."

http://spectrum.ieee.org/the-human-os/biomedical/devices/selfdriving-wheelchairs-debut-in-hospitals-and-airports

 

"Why a few drops of water make whisky taste better."

https://phys.org/news/2017-08-whisky.html

 

Startup/SME of the Day.

 

"Atreca.

Our Immune Repertoire Capture® (IRC™) and DeepSeq™ technologies deliver the sequences of antibodies and T cell receptors (TCRs) elaborated by informationally rich subsets of patient B and T cells with virtually no bias or error, enabling the identification and generation of functional and valuable human antibodies and TCRs directly from patients without prior knowledge of antigen."

https://www.atreca.com/about/

Vaccine maker. Bill & Melinda Gates Foundation lead Series A in 2012. Series B happened today.

 

Random

 

"West Baray.

A “baray” is a water reservoir built by the ancient Khmer people.

To construct the West Baray, the Khmer people erected four earthen dikes in an 8 km by 2 km rectangle. Once the dikes were completed, rainwater filled the baray.

According to archeological theory, the project was completed under the rule of King Udayadityavarman II, who reigned until 1066."

http://www.siemreapcambodia.org/angkor-temples/west-baray/

http://www.persee.fr/doc/befeo_0336-1519_2005_num_92_1_5994

 

Events on 8/18 (ET)


Germany  DE: PPI, 2:00 AM ET

Canada  CA: CPI, 8:30 AM ET

USA  US: Consumer Sentiment, 10:00 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)