Random Market News, 14 September 2017

 

Market Info. 1

Logistics. 3

Tech. 4

Random.. 5

Events on 9/15 (ET) 5

 

 

Market Info

 

"Yen Loses Gains, Stocks Mixed Amid Missile Fatigue: Markets Wrap.

Financial markets are once again showing a short-lived reaction to a North Korean missile launch as investors become accustomed to a cycle of provocations followed by diplomatic censure and sanctions that fall short of shutting down the dictatorship.

Thursday’s U.S. economic data lent support to those expecting a further run up in U.S. bond yields as inflation topped estimates and traders increased bets on another rate hike in 2017. While China data this week softened, the signals emanating from financial markets remain decidedly bullish. Bitcoin slumped after one of China’s largest online exchanges said it would stop handling trades by the end of the month amid a government crackdown on crypto-currencies."

https://www.bloomberg.com/news/articles/2017-09-14/yen-jumps-after-report-of-north-korea-missile-markets-wrap

 

"What’s driving the EM recovery?

Dollar strength has been associated with EM underperformance relative to global equity, and dollar weakness has been associated with outperformance. That relationship is as strong today as it was historically even under different currency regimes.

The end of the dollar bull cycle which dates back to 2011 and really ran its course through the end of last year...and the beginnings of what we think may be a retracement cycle...so fundamentally we view this quite positively from an EM perspective." (~25:20)

https://am.jpmorgan.com/us/institutional/library/the-right-time-for-eme

Apparently despite DM monetary normalization and slowing Chinese statistics.

 

"The bitcoin-US dollar exchange (BTC/USD) rate fell to a fresh four-week low of $3,413 this morning following reports that Shanghai-based bitcoin exchange BTCC will shut down its domestic trading operations effective September 30.

As such, the announcement is the latest that supports the rumor regulators are preparing a formal ban on domestic bitcoin exchanges. Long liquidations in BTC markets have gathered pace amid fears that a confirmation from the People's Bank of China will follow over the next few days."

https://www.coindesk.com/bitcoin-price-drops-3500-relief-rally-sight/

~30% drop from Sept 1 high of ~USD 5,000 and ~20% from 2 days ago.

 

"LCH launches buy-side repo clearing model.

CCPs are keen to bring asset managers and pension funds into the clearing process, as banks continue to withdraw from the space.

LCH has expanded its RepoClear service to allow buy-side participants to clear their trades directly, with Insight Investment signing up as the first asset manager member.

Insight was to the first to clear a repo trade, acting for a UK pension fund it manages, with NatWest Markets supporting its trade as the agent member.

Eurex most recently signed Dutch pension fund PGGM as its first buy-side member for its securities lending clearing house, and Canada’s main derivatives CCP has launched a buy-side clearing membership for cash and fixed income repo trades.

Last month, LCH went live with a new account structure to allow buy-side clients to post collateral directly with the clearing house. It also secured Aviva Investors as the first client of new CustodialSeg account structure."

https://www.globalcustodian.com/Securities-Finance/LCH-launches-buy-side-repo-clearing-model/

 

"Goldman Sachs Ignites New ETF Price War.

Moody’s says the launch of a super-cheap smart-beta ETF by GSAM is a "credit negative" for a handful of traditional active equity managers.

According to Moody’s, most smart-beta products charge fees between 24 and 39 basis points, or 0.24 and 0.39 percent — about half the fee charged by the average actively managed equity mutual fund."

http://www.institutionalinvestor.com/article/3751243/asset-management-indexing-and-etfs/goldman-sachs-ignites-new-etf-price-war.html

 

"Tech Buyout Funds Outperform Since 2000.

IT-focused funds have outperformed the buyout industry by six percentage points in the decade through 2016, producing a 13.9 percent internal rate of return, the alternative-assets data provider said in a report released Thursday."

http://www.institutionalinvestor.com/article/3751268/banking-and-capital-markets-trading-and-technology/tech-buyout-funds-outperform-since-2000.html

 

Data dump.

 

VIX ~10.44. 10-yr treasury volatility (TYVIX) ~4.12.

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

475-500

500-525

9/20/2017

0.0%

1.4%

98.6%

0.0%

0.0%

11/1/2017

0.0%

0.0%

0.0%

1.3%

94.7%

3.9%

0.0%

0.0%

0.0%

12/13/2017

0.0%

0.0%

0.0%

0.6%

46.5%

50.9%

2.0%

0.0%

0.0%

0.0%

0.0%

1/31/2018

0.0%

0.0%

0.0%

0.6%

45.5%

50.8%

3.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

3/21/2018

0.0%

0.0%

0.0%

0.5%

37.9%

49.9%

11.1%

0.6%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

5/2/2018

0.0%

0.0%

0.0%

0.5%

37.5%

49.8%

11.5%

0.7%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

6/13/2018

0.0%

0.0%

0.0%

0.4%

28.3%

46.7%

21.1%

3.4%

0.2%

0.0%

0.0%

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%

0.4%

28.0%

46.5%

21.3%

3.6%

0.2%

0.0%

0.0%

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

 

"Concerns rise for wellbeing of staff in global supply chains.

Multinational companies such as Vodafone face considerable challenges to ensure the health and wellbeing of their wide network of staff and suppliers. Some 40 per cent of senior business leaders surveyed by the Economist Intelligence Unit say adverse events associated with their suppliers are becoming more frequent. Risks range from suppliers being involved in criminal activity to breaches of regulations on human rights, they say."

https://www.ft.com/content/3dca3f82-3fa9-11e7-82b6-896b95f30f58

 

"Khouri: FMC closely monitoring container carriers, alliances.

Acting Federal Maritime Commission Chairman Michael Khouri met with overseas counterparts in London this week to discuss recent changes within the ocean shipping industry and potential impacts they may have on shippers and other service providers."

http://www.americanshipper.com/main/news/khouri-fmc-closely-monitoring-container-carriers-a-69014.aspx

 

"XPO Logistics plans to nearly double its current last mile footprint in the US to 85 service hubs by late 2018.

The company estimates that the expansion, which is currently underway, will “position its last mile footprint within approximately 90% of the US population”.

XPO currently carries out nearly 13m home and commercial deliveries a year, with the majority including installation and assembly of appliances, large electronics, furniture and other hard-to-handle items."

http://postandparcel.info/82314/news/xpo-logistics-expanding-us-last-mile-network/

 

"CEVA and SNCF tight-lipped on acquisition rumours.

Both firms decline to comment on reports of imminent merger within French state rail group’s logistics subsidiary Geodis."

http://www.lloydsloadinglist.com/freight-directory/news/CEVA-and-SNCF-tight-lipped-on-acquisition-rumours/70324.htm

 

"LTL Sector Enjoys Fruitful 2017.

Truckload, 3PLs Try to Regain Footing in Second Half of Year."

http://www.ttnews.com/articles/ltl-sector-enjoys-fruitful-2017

 

"Trimble snaps up 10-4 in yet another visibility deal.

Colorado-based freight visibility technology provider 10-4 Systems is the second such startup to be acquired in recent weeks after Descartes' purchase of MacroPoint."

http://www.americanshipper.com/main/news/trimble-snaps-up-104-in-yet-another-visibility-dea-69004.aspx

 

Tech

 

"How convertible notes drive founders away from emerging ecosystems.

Convertible notes and SAFES only make the process more confusing by putting off the valuation and thus hiding the potential ownership (i.e. possible dilution) at the time of conversion especially in cases where the startup has raised more than one note on varying terms. I believe some investors do like this opacity."

https://venturebeat.com/2017/09/14/how-convertible-notes-drive-founders-away-from-emerging-ecosystems/

 

"Plasmonics Enables Sensing on Demand.

Researchers at Northeastern University in Boston have developed an infrared sensor based on plasmonics that is capable of turning itself on when it needs to perform its sensing duties and then turns itself off when not needed to decrease energy demands and increase its lifetime.

The result is a sensor that performs only event-driven sensing. The sensor is dormant, yet is always alert and it awakes only in the presence of a signal of interest. As a result, the sensor only consumes power when there is something to be detected."

https://spectrum.ieee.org/nanoclast/semiconductors/nanotechnology/nanosensors-perform-sensing-on-demand

 

"A Solid-State Fridge in Your Pocket.

UCLA and SRI's solid-state chiller cools a smartphone battery by 8° C in 5 seconds.

In 2014 General Electric heralded a “breakthrough” using materials that heat and cool when moved near and away from magnets, enthusing that its “magnetocaloric” system could be “inside your fridge by the end of the decade.”

Other teams are exploring a myriad of alternate approaches, including “elastocaloric” materials that heat and cool in response to pressure.

The UCLA-SRI device relies on the electrocaloric effect, which occurs in materials whose molecules have positively and negatively charged ends. An electric field aligns the molecules, increasing the order in the material and thus increasing its temperature."

https://spectrum.ieee.org/energywise/consumer-electronics/portable-devices/a-solid-state-fridge-in-your-pocket

 

"A DNA nanorobot is programmed to pick up and sort molecules into predefined regions.

Led by former graduate student Anupama Thubagere (PhD '17), the researchers constructed three basic building blocks that could be used to assemble a DNA robot: a "leg" with two "feet" for walking, an "arm" and "hand" for picking up cargo, and a segment that can recognize a specific drop-off point and signal to the hand to release its cargo. Each of these components is made of just a few nucleotides within a single strand of DNA.

The key to designing DNA machines is the fact that DNA has unique chemical and physical properties that are known and programmable."

https://phys.org/news/2017-09-dna-nanorobot-molecules-predefined-regions.html

 

"Research on big ears, crocodile gambling wins Ig Nobels."

https://phys.org/news/2017-09-big-ears-crocodile-gambling-ig.html

 

Startup/SME of the Day.

 

"Candid Co.

Get the straight teeth you've always wanted with clear aligners delivered directly to your door."

https://www.candidco.com/

Direct to consumer 3D printed braces.

 

Random

 

"Ancient City of Sigiriya.

The ruins of the capital built by the parricidal King Kassapa I (477–95) lie on the steep slopes and at the summit of a granite peak standing some 180m high (the 'Lion's Rock', which dominates the jungle from all sides). A series of galleries and staircases emerging from the mouth of a gigantic lion constructed of bricks and plaster provide access to the site."

http://whc.unesco.org/en/list/202

 

Events on 9/15 (ET)


European Union  EZ: Merchandise Trade, 5:00 AM ET

USA  US: Retail Sales, 8:30 AM ET

USA  US: Empire State Mfg Survey, 8:30 AM ET

USA  US: Industrial Production, 9:15 AM ET

USA  US: Business Inventories, 10:00 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)

https://worldview.stratfor.com/article/geopolitical-calendar-week-sept-11-2017