Random Market News, 28
"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."
VIX ~11.32. 10-yr treasury volatility (TYVIX) ~3.92.
Implied Fed rate hike/cut probability for September 20th is ~0.0%/2.7%, November 1st is ~3.9%/2.6%.
"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)."
"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."
"Maersk moves show the shipping industry is far from 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."
"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. "
"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."
"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."
"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."
"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 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."
"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."
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
https://tradingeconomics.com/calendar (More complete listing, including consensus)