Random Market News, 28
August 2017
"U.S. Futures Fall on Missile; Gasoline Up on Storm: Markets Wrap.
Insurers among the biggest decliners in the S&P 500 Index.
Harvey hits energy-related assets; gold breaches $1,300."
"Texas public pension funds deal with Hurricane Harvey aftermath."
"'No President in the U.S.' Leads $53 Billion Fund to Sell Stocks.
Finland’s Varma pension fund cuts share of equities,
adds cash.
Varma reduces duration of fixed-income assets with
derivatives.
“If I look at what is the moral and practical power, there is no longer a
traditional president.”"
"Hedge funds bearish despite flows turning positive – survey.
Over a third of managers gauge that investor
sentiment is worse than in June 2016 - an historic low-point for hedge fund
investor confidence."
"Commentary: Emerging markets are now masters of their own fate.
Coined in 1981, the term "emerging markets" was meant to capture
the dynamism of a third world that hitherto had conjured images of drought-ridden
farmlands, knock-off electronics and Soviet-era machinery. For several decades,
sensible market reforms, trade liberalization in the West and export-led growth
helped emerging markets fulfill this economic promise. That era is over.
What's more, emerging markets will increasingly propel their own economic
success, with three key engines of growth."
Data dump.
VIX ~11.32. 10-yr treasury volatility (TYVIX) ~3.92.
http://www.cboe.com/products/vix-index-volatility/volatility-on-interest-rates
Implied Fed rate hike/cut probability for September 20th
is ~0.0%/2.7%, November 1st is ~3.9%/2.6%.
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.
"Dollar
Extends Losses on Monday
The dollar fell
for the second session on Monday, extending Friday's losses after Fed Chair
Yellen made no comments on monetary policy at the Jackson Hole Symposium.
Concerns over the impact of Hurricane Harvey on the US economy also weighed on
the currency. The DXY declined near 0.1% to 92.26 around 12:10 PM NY time, the
lowest intraday since May 3rd 2016.
US Dallas Fed
Manufacturing Index Slightly Above Expectations
The Federal
Reserve Bank of Dallas' general business activity index for manufacturing in
Texas edged up to 17 in August of 2017 from 16.8 in July, above market
expectations of 16.5. Shipments (18.1 from 11.6), hours worked (14.5 from 9.8)
and capital expenditures (14.5 from 11.6) increased while a slowdown was seen
in production (20.3 from 22.8), new orders (14.3 from 16.1), employment (9.9
from 11.2) and materials inventories (2.5 from 3.6). In addition, stocks of
finished goods fell further (-3.8 from -1.7) and price pressures increased for
both raw materials (26.9 from 15.5) and finished goods (10.2 from 5.6). The
company outlook index posted its 12th consecutive positive reading but slipped
10 points to 16.3 after surging to a multiyear high last month.
Stocks in Chile
Hit All-time High
IGPA increased
to an all-time high of 25887.
Euro Hits 2-1/2-Year
High Against USD
The euro hit a
two-and-a-half year high of $1.1961 on Monday, after ECB President Mario Draghi
held back from talking down the currency in a closely watched speech last
Friday.
Fitch
Downgrades Qatar’s Credit Rating To ‘AA-’
Fitch Ratings
downgraded on Monday August 28th of 2017 Qatar’s credit rating to ‘AA-’ from ‘AA’
and assigned a negative outlook after the Rating Watch Negative action
initiated on June 12th of 2017, citing Qatar’s unlikely diplomatic and
logistical isolation by some of its neighbors to be resolved for some time as
the key reason behind the downgrade.
Japan Jobless
Rate Steady at 2.8% in July [23-year low]
The
unemployment rate in Japan remained at it's
23-year low of 2.8 percent in July of 2017, unchanged from the previous month
and consistent with the market consensus. Meanwhile, the jobs-to-applicants
ratio was 1.52, up from 1.51 in the previous period and in-line with
expectations to mark the highest level since February 1974.
Gold Rockets to
10 Month High
Gold Prices
climbed as high 1324 USD per ounce at GMT 00:00 today after North Korea launched
a missile that landed on the waters near Hokkaido. The precious metal increased
by more than 1.5 percent over the previous session - its highest since the US
elections early last November. Other safe haven currencies also rose such as
the Japanese Yen (+0.7 percent)."
https://tradingeconomics.com/stream
http://www.marketwatch.com/newsviewer#
https://global.handelsblatt.com/
"Freight Companies Scramble to Reroute Goods in
Wake of Harvey.
Trucking fleets, railroads and shipping lines look for
alternative routes as Tropical Storm Harvey disrupts a major thoroughfare."
"6 Ways Mobility is Shaping the Supply Chain.
Mobile technologies are certainly changing how we
track freight outside of the four walls, putting “real-time” logistics
management within the grasp of many savvy shippers. However, our analysts
content that we have more work to do in the areas of investment and integration
into existing operations."
http://www.logisticsmgmt.com/article/6_ways_mobility_is_shaping_the_supply_chain
"Maersk moves show the shipping industry is far
from sunk."
http://www.telegraph.co.uk/business/2017/08/26/maersk-moves-show-shipping-industry-far-sunk/
"Seoul creates $4.4bn company
to aid maritime turnaround.
In the ongoing resuscitation of the nation’s ailing
shipping and shipbuilding sectors, South Korea’s Ministry of Oceans and
Fisheries is forming a KRW 5trn ($4.4bn) company to support a maritime
turnaround in fortunes.
News of the company, to launch in June next year,
comes a week ahead of the first anniversary of the collapse of Hanjin Shipping, South Korea’s erstwhile flag carrier.
The new company will provide refund guarantees for
around 30 small and medium sized yards, as well as monitoring turnarounds at
struggling shipping and shipbuilding companies."
http://splash247.com/seoul-creates-4-4bn-company-aid-maritime-turnaround/
"Navios Maritime
Containers raises $50m in private placement.
Company eyes vessel acquisitions with fresh cash
injection."
"Uniqlo's retail empire
embarks on a digital revolution.
CEO gets a hand from SoftBank's
Son in hiring IT talent.
Tadashi Yanai, the chairman
and president of Uniqlo operator Fast Retailing, has
embarked on a digital renovation of his retail empire.
He believes, for instance, that artificial
intelligence could help factories, distributors and Uniqlo
stores understand with precision what the customer wants, and reduce excessive
inventory. "
https://asia.nikkei.com/Business/Companies/Uniqlo-s-retail-empire-embarks-on-a-digital-revolution
"The UK government has announced £8.1m ($10.4m)
in funding for a truck platooning trial starting at the end of 2018.
The trial, which will be carried out by the UK’s
Transport Research Laboratory, will involve up to three heavy goods vehicles
travelling in convoy, with acceleration and braking controlled by the lead
vehicle. All trucks in the platoon will have a driver ready to take control at
any time. Funding for the trial will be provided by the Department for
Transport and Highways England."
https://automotivelogistics.media/news/uk-government-announces-funding-truck-platooning-trials
"Vanke aims to be world’s largest warehouse
operator after GLP takeover.
The property developer says its logistics sector
currently yields a 6 per cent return."
"Banking Is Only The Beginning: 30 Big Industries Blockchain
Could Transform.
Banking and payments aren't the only industries that could be affected by blockchain tech. Law enforcement, ride hailing, and many
other sectors could also have blockchain in their
future."
https://www.cbinsights.com/research/industries-disrupted-blockchain/
"Whole Foods’ Amazon-powered price cuts are live, have already
expanded to include several grocery staples."
"Grocery retail stocks battered after Amazon-Whole Foods announcement."
"Shark-detecting drones to patrol Australian beaches.
Drones equipped with a shark detection system powered by artificial
intelligence will start patrolling some Australian beaches from next month in a
bid to improve safety.
Studies have shown that people have a 20-30 percent accuracy rate when
interpreting data from aerial images to detect shark activity. Detection
software can boost that rate to 90 percent, said Dr Nabin Sharma, a research associate at the University of
Technology Sydney's School of Software."
http://www.reuters.com/article/us-australia-sharkdrone-idUSKCN1B51KB
http://spectrum.ieee.org/automaton/robotics/drones/drones-and-ai-take-on-killer-sharks-down-under
"The Tech That Won the First Formula Student Driverless Race.
So, the team used wheel-speed sensors, which are not ideal, because fast
racing involves burning rubber as wheels grip the road for acceleration and
steering. In other words, the car itself does not move at exactly the speed its
wheels might imply. In this case, the team decided to disable the car's
traction control, so they could use the wheel speed sensors alongside an
inertial measurement unit. The velocity information they got was clean enough
to feed the lidar and stay on track."
"FDA Raids One Stem Cell Lab and Warns Another in Regulatory Push.
Agency to get tough on those touting unproven cell therapies.
Regulator to help legitimate developers gain sales approval."
Startup/SME of the Day.
"Remitly.
Remitly is the largest independent digital remittance company headquartered in the
United States, transferring over $2 billion in annualized volume from its
customers in the United States, United Kingdom, and Canada to loved ones
throughout the world.
The company’s proprietary global transfer network includes its easy-to-use
mobile app, which makes the process of sending money faster, easier, more
transparent and less costly by eliminating the forms, codes, agents, extra time
and fees typical of the traditional, century-old money transfer process."
https://www.remitly.com/us/en/home/about_us
"Central Zone of the Town of Angra do Heroismo in the Azores.
Situated on one of the islands in the Azores archipelago, this was an obligatory port of call from the 15th century until the advent of the steamship in the 19th century. The 400-year-old San Sebastião and San João Baptista fortifications are unique examples of military architecture. Damaged by an earthquake in 1980, Angra is now being restored."
http://whc.unesco.org/en/list/206
DE: GfK Consumer Climate, 2:00 AM ET
GB: Nationwide HPI, 2:00 AM ET
FR: Consumer Mfgd Goods Consumption, 2:45 AM ET
FR: GDP, 2:45 AM ET
CA: IPPI, 8:30 AM ET
US: Redbook, 8:55 AM ET
US: S&P Corelogic Case-Shiller HPI, 9:00 AM ET
US: Consumer Confidence, 10:00 AM ET
US: State Street Investor Confidence Index, 10:00 AM ET
JP: Retail Sales, 7:50 PM ET
http://online.wsj.com/mdc/public/page/2_3063-globalEconomicCalendar.html
https://tradingeconomics.com/calendar (More complete listing, including consensus)