Random Market News, 22 September 2017

 

Market Info. 1

Logistics. 3

Tech. 4

Random.. 6

Events on 9/24-5 (ET) 6

 

 

Market Info

 

"Stocks Bounce, Treasuries Rise on Korea Tensions: Markets Wrap.

Stocks vacillated Friday before ending little changed and Treasuries gained with gold, as investors reached for safe haven assets after North Korea ratcheted up its threats against the U.S."

https://www.bloomberg.com/news/articles/2017-09-21/asia-stocks-to-fall-as-u-s-retreats-metals-drop-markets-wrap

 

"Moody's downgrades UK's rating to Aa2, changes outlook to stable.

The key drivers for the decision to downgrade the UK's ratings to Aa2 are as follows:

1. The outlook for the UK's public finances has weakened significantly since the negative outlook on the Aa1 rating was assigned, with the government's fiscal consolidation plans increasingly in question and the debt burden expected to continue to rise;

2. Fiscal pressures will be exacerbated by the erosion of the UK's medium-term economic strength that is likely to result from the manner of its departure from the European Union (EU), and by the increasingly apparent challenges to policy-making given the complexity of Brexit negotiations and associated domestic political dynamics."

https://www.moodys.com/research/Moodys-downgrades-UKs-rating-to-Aa2-changes-outlook-to-stable--PR_372649

 

"EU could offer UK a transition period after Brexit, Barnier says.

"I would like to be very clear: if we are to extend for a limited period the acqui of the EU, with all its benefits, then logically this would require existing Union regulatory, budgetary, supervisory, judiciary and enforcement instruments and structures to apply," he said.

The UK wants to move talks on to trade, but the bloc is seeking to settle terms of the divorce first (specifically how much Britain will pay for commitments made before it leaves), citizens' rights and Northern Ireland's border with the Republic, which will become the only UK/EU land frontier."

https://www.wort.lu/en/politics/european-union-eu-could-offer-uk-a-transition-period-after-brexit-barnier-says-59c4e58c56202b51b13c3ac4

http://europa.eu/rapid/press-release_STATEMENT-17-3427_en.htm

 

"How we think about Germany’s choices on 24 September

About the horse race, everything that can be said has been said. Our editor-in-chief steps back and ponders the options."

https://global.handelsblatt.com/opinion/how-we-think-about-germanys-choices-on-24-september-830736

 

"Magnitude 5.7 earthquake strikes off Northern California coast."

http://www.latimes.com/local/lanow/la-me-earthquakes-magnitude-57-quake-strikes-near-capetown-calif-20170922-story.html

 

"Japan Court Slams Tepco With Fukushima Damages Bill.

The Chiba District Court in Japan has ordered Tokyo Electric Power Company Holdings, or Tepco, to pay damages to a group of Fukushima prefecture residents who were forced to flee their homes after the 2011 nuclear disaster at the Fukushima Daiichi nuclear power plant.

This is the second damages ruling against the utility, but unlike the first one, which came out in March, the Chiba court ruling did not find the Japanese government guilty of negligence. The court estimated the damages at US$3.36 million (376 million yen). The plaintiffs had asked for US$25 million (2.8 billion yen)."

http://oilprice.com/Latest-Energy-News/World-News/Japan-Court-Slams-Tepco-With-Fukushima-Damages-Bill.html

https://japantoday.com/category/national/tepco-again-ordered-to-pay-damages-in-nuclear-disaster-but-not-state

 

"European Central Bank to develop overnight unsecured rate for eurozone [by 2020].

An overnight rate will serve as a basis for an alternative to current benchmarks used to price financial instruments and contracts in the eurozone.

A working group was set up by the ECB with the Swiss Financial Markets Authority, European Securities Markets Authority and European Commission to work on a new risk-free reference rate."

http://www.pionline.com/article/20170922/ONLINE/170929947/european-central-bank-to-develop-overnight-unsecured-rate-for-eurozone

https://www.ecb.europa.eu/press/pr/date/2017/html/ecb.pr170921.en.html

 

"Record Number of S&P 500 Companies issued Positive Revenue Guidance for Q3.

For the third quarter, 75 companies in the S&P 500 have issued negative EPS guidance and 43 companies in the S&P 500 have issued positive EPS guidance. While the number of companies issuing negative EPS is slightly below the five-year average (79), the number of companies issuing positive EPS guidance is well above the five-year average (27)."

https://insight.factset.com/earningsinsight_09.22.17

But more negative EPS guidance. Positive guidance driven by IT and Consumer Disc.

 

"U.S. solar trade case advances, panel finds harm to producers.

The U.S. International Trade Commission on Friday found that imports of cheap solar panels harmed domestic producers, setting the stage for President Donald Trump to consider imposing tariffs or other relief measures to protect the nation’s small solar manufacturing sector.

The unanimous decision by all four voting commissioners followed a complaint brought by bankrupt Georgia-based solar manufacturer Suniva Inc in April.

Under the rare Section 201 trade case, Trump will make a final decision on whether to provide relief to U.S. manufacturers, and, if so, what type. The ITC will deliver its recommendations to Trump by Nov. 13."

https://www.reuters.com/article/us-usa-trade-solar/u-s-solar-trade-case-advances-panel-finds-harm-to-producers-idUSKCN1BX280

 

"OECD data adds fuel to NAFTA origin rules debate.

Newly released data from the Organization for Economic Cooperation and Development has allowed U.S. Commerce Department analysts to challenge the long-held perception that U.S. content in North American Free Trade Agreement (NAFTA) imports remain strong.

According to Commerce’s report, released Friday, the OECD’s “Trade in Value-Added” (TiVA) data, which covers the period of 1995-2011, shows the share of U.S.-produced content in manufactured imports from Mexico and Canada declining from 26 percent in 1995 to 16 percent in 2011."

http://www.americanshipper.com/main/news/oecd-data-adds-fuel-to-nafta-origin-rules-debate-69108.aspx

 

Data dump.

 

VIX ~9.59. 10-yr treasury volatility (TYVIX) ~4.11.

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

 

MEETING DATE

0-25

25-50

50-75

75-100

100-125

125-150

150-175

175-200

200-225

225-250

250-275

275-300

300-325

325-350

350-375

375-400

400-425

425-450

450-475

11/1/2017

0.0%

0.0%

98.0%

2.0%

0.0%

12/13/2017

0.0%

0.0%

0.0%

0.0%

27.1%

71.4%

1.4%

0.0%

0.0%

1/31/2018

0.0%

0.0%

0.0%

0.0%

26.3%

70.1%

3.6%

0.0%

0.0%

0.0%

0.0%

3/21/2018

0.0%

0.0%

0.0%

0.0%

19.6%

59.0%

20.5%

1.0%

0.0%

0.0%

0.0%

0.0%

0.0%

5/2/2018

0.0%

0.0%

0.0%

0.0%

19.2%

58.1%

21.3%

1.4%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

6/13/2018

0.0%

0.0%

0.0%

0.0%

13.0%

45.5%

33.3%

7.8%

0.5%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

8/1/2018

0.0%

0.0%

0.0%

0.0%

12.7%

44.8%

33.5%

8.3%

0.6%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

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.

https://tradingeconomics.com/stream

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

https://global.handelsblatt.com/

 

Logistics

 

"WTO raises 2017 growth forecast as global trade accelerates.

Previously set at 2.4 percent, the world trade forecast has been increased to 3.6 percent due to strong North American imports and Asian export recovery, according to the World Trade Organization.

http://www.americanshipper.com/main/news/wto-raises-2017-growth-forecast-as-global-trade-ac-69104.aspx

 

"French truck drivers prepare for strike.

Trade unions call ‘unlimited’ industrial action from Monday over Macron reforms of labour legislation.

French trade unions representing truck drivers have called a strike from 25 September for an unlimited period in protest to the reform of labour legislation launched by new president Emmanuel Macron."

http://www.lloydsloadinglist.com/freight-directory/news/French-truck-drivers-prepare-for-strike/70396.htm

 

"Freight startup Flexport soars from ‘unsexy’ to $800M valuation.

Flexport handles the boring logistics of a trillion-dollar business: the transport of shipping containers around the world. Because the work of freight forwarding seemed so bland, it was long ignored by the tech world. But digitizing the paperwork let Flexport speed up shipping so clients keep less inventory on hand while never running out."

https://techcrunch.com/2017/09/21/container-full-of-cash/?ncid=mobilenavtrend

 

"AAA Study: Onboard Safety Systems Could Prevent 63,000 Large Truck Crashes.

The 15-month study said that in 2015 large trucks were involved in more than 400,000 crashes that resulted in more than 4,000 deaths and 116,000 injuries — a 4% increase from 2014."

http://www.ttnews.com/articles/aaa-study-onboard-safety-systems-could-prevent-63000-large-truck-crashes

 

"Run on Less: We're averaging 10.1 mpg in Class 8 trucks.

With fuel-saving technologies, trucks capable of even more — but real-world conditions take their toll.

Run on Less is sponsored by Shell and PepsiCo and hosted by the North American Council for Freight Efficiency (NACFE) and Carbon War Room (CWR)."

http://fleetowner.com/fuel/run-less-were-averaging-101-mpg-class-8-trucks

 

"Bogus ‘organic’ foods reach the U.S. because of lax enforcement at ports, inspectors say.

Bogus “organic” products may be reaching the United States because of lax enforcement at U.S. ports, according to a new audit by the U.S. Department of Agriculture's Office of Inspector General, a finding that helps explain previous reports that millions of pounds of fraudulent “organic” corn and soybeans had reached American ports.

The USDA lacks procedures to check that a shipment meets organic standards, the report found.

The report from the inspector general comes as the USDA faces growing doubts about whether food granted the "USDA Organic" label actually meets organic standards. This year, news stories have raised questions about the production methods used in organic milk, organic eggs, as well as imported organic products of all kinds."

https://www.washingtonpost.com/news/wonk/wp/2017/09/18/lax-enforcement-at-ports-allows-bogus-organic-foods-to-reach-u-s-government-report-says/

 

Tech

 

"Mercedes-Benz makes a $1B bet it can take down Tesla.

The company is pursuing an "anything Tesla can do, we can do better" strategy, Sanford Bernstein analyst Max Warburton said in a recent note to investors. "Mercedes is convinced it can match Tesla battery costs, beat its manufacturing and procurement costs, ramp up production faster and have better quality. It is also confident its cars will drive better.""

https://www.usatoday.com/story/money/cars/2017/09/21/mercedes-benz-tuscaloosa-electric-vehicles-batteries/688721001/

Also, Audi announced level 3 self-driving for next year's line-up. Other major car firms likely have forward technologies prepared. A snapshot of recent patent activity:

https://www.wsj.com/articles/new-way-to-track-auto-innovation-patent-filings-1505732436

 

"Nvidia GPU prices reportedly set to keep rising thanks to DRAM shortage and cryptocurrency.

People looking to build GPU farms to “mine” Bitcoin-like digital currencies are one of the big reasons for those sales, but a shortage of DRAM (dynamic RAM) video memory is also limiting availability."

https://venturebeat.com/2017/09/22/nvidia-gpu-prices-reportedly-set-to-keep-rising-thanks-to-cryptocurrency-and-dram-shortage/

 

"Despite all odds, Hyperloop One just raised another $85 million.

The round, which comes from DP World, Caspian VC Partners, WTI and OurCrowd.com, brings the company’s total funding to $245 million."

https://techcrunch.com/2017/09/22/despite-all-odds-hyperloop-one-just-raised-another-85-million/

 

"Lidar-Equipped Autonomous Wheelchairs Roll Out in Singapore and Japan.

No more waiting for an orderly to see you out, or an attendant to see you to your gate.

Autonomous vehicles can add a new member to their ranks—the self-driving wheelchair. This summer, two robotic wheelchairs made headlines: one at a Singaporean hospital and another at a Japanese airport."

https://spectrum.ieee.org/transportation/self-driving/lidar-equipped-autonomous-wheelchairs-roll-out-in-singapore-and-japan

 

"Ultra-light Aluminum: Chemists Report Breakthrough in Material Design.

But if you restructure the common household metal at the molecular level, as Boldyrev and colleagues did using computational modeling, you could produce an ultra-light crystalline form of aluminum that's lighter than water.

[I]t has a density of only 0.61 gram per cubic centimeter, in contrast to convention aluminum's density of 2.7 grams per cubic centimeter."

https://www.laboratoryequipment.com/news/2017/09/ultra-light-aluminum-chemists-report-breakthrough-material-design

 

"This AI reads the news to keep tabs on US police shootings.

Police shootings in the US frequently make local and national headlines, but there is no government-run database of the fatalities. So people are turning to machine learning to make sure no shooting by the police goes unrecorded.

Working out how many people in the US have been killed as result of police action isn’t easy. Where they do exist, official records are somewhat lacking. A 2016 study by the US Bureau of Justice Statistics found that police records cover half as many police-related deaths as media reports. The violent-death reporting system run by the Centers for Disease Control and Prevention collects data in only 42 of the 50 states, and doesn’t focus on police shootings.

To make this task easier, Brendan O’Connor at the University of Massachusetts Amherst and his colleagues have created a system that automatically scrapes news reports for mentions of police shootings."

https://www.newscientist.com/article/2148291-this-ai-reads-the-news-to-keep-tabs-on-us-police-shootings/

 

"Facebook drops no-vote stock plan, Zuck will sell shares to fund philanthropy.

Today Facebook announced that it’s withdrawn its plan to issue Class C no-vote stock and has resolved the shareholder lawsuit seeking to block the corporate governance overhaul."

https://techcrunch.com/2017/09/22/facebook-sharing/

 

"Video Friday: ANYmal Robot, Jibo Unboxing, and Anki Overdrive Fast & Furious."

https://spectrum.ieee.org/automaton/robotics/robotics-hardware/video-friday-anymal-robot-jibo-unboxing-anki-overdrive-fast-and-furious

 

Startup/SME of the Day.

 

"Pokitdok.

Our suite of healthcare APIs allows you to quickly bring existing systems into the modern age. New capabilities—from scheduling and eligibility to patient portals and identity management—are easily integrated into your current workflows.

Choose individual APIs or create your own bundle to access important business data. Connect to more than 500 trading partners for eligibility, claims status, authorizations, and more."

https://patientory.com/

 

Random

 

"Ternate Island.

The remote island home of the overlooked explorer who co-discovered the theory of evolution.

In an 1848 letter to a friend, English naturalist and biologist Alfred Russel Wallace wrote that he’d spotted an insect whose colorings were almost imperceptible against the muddy ground it was on. He was perplexed by the markings, but, he wrote, “I have lately worked out a theory which accounts for them naturally.”"

http://www.atlasobscura.com/places/ternate-island

Along with Henry Bates in the Amazon rainforest.

 

Events on 9/24-5 (ET)

 

Japan  JP: PMI Manufacturing Index Flash, 8:30 PM ET (9/24)

Singapore  SG: CPI, 1:00 AM ET

Germany  DE: Ifo Survey, 4:00 AM ET

USA  US: Chicago Fed National Activity Index, 8:30 AM ET

USA  US: Dallas Fed Mfg Survey, 10:30 AM ET

New Zealand  NZ: Merchandise trade, 5:45 PM ET

 

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

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