Financial Markets and Economy
Fed’s Lockhart Sees Potential for Raising Rates ‘Before Long’ (Bloomberg)
Federal Reserve Bank of Atlanta President Dennis Lockhart said the central bank is nearing its goals of maximum employment and steady inflation near 2 percent, leaving the economy primed for an increase in borrowing costs.
U.S. Economy Expanded at Revised 1.4% Rate in Second Quarter (Bloomberg)
The U.S. economy expanded more in the second quarter than previously estimated, reflecting a smaller drag from business spending on structures and equipment.
Wall Street slips as Apple, healthcare stocks drop (Reuters)
Wall Street was lower in choppy trading late Thursday morning, pulled lower by Apple and healthcare stocks.
The S&P healthcare index fell 0.7 percent, marking the second straight day of decline as shares of Merck and Johnson & Johnson booked losses
Treasuries Fall as Dollar Climbs on Economic Data, Fed Remarks (Bloomberg)
Bonds fell, while the dollar rose as data added to evidence the world’s largest economy continued to strengthen and policy makers signaled they’re moving closer to raising rates. Oil gained.
Q2 GDP Revised Up to 1.4% Annual Rate (Calculated Risk)
Real gross domestic product increased at an annual rate of 1.4 percent in the second quarter of 2016 (table 1), according to the "third" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.8 percent.
The decline of the middle class is causing even more economic damage than we realized (The Washington Post)
I have just come across an International Monetary Fund working paper on income polarization in the United States that makes an important contribution to the secular stagnation debate.
In U-Turn, Saudis Choose Higher Prices Over Free Oil Markets (Bloomberg)
Saudi Arabia has ended its flirtation with free oil markets.
Why People Have Been Worrying About Deutsche Bank, in 12 Charts (Bloomberg)
How do you solve a problem like Deutsche Bank AG?
Its share price fell to an all-time low this week amid concerns that the bank may lack the capital to service litigation costs and meet stricter regulatory standards.
Och-Ziff to Pay $400 Million to Settle U.S. Foreign Bribery Prob (The Wall Street Journal)
Federal criminal authorities are firing a shot at Wall Street firms seeking lucrative business in resource-rich developing countries.
In a case widely watched on Wall Street, Och-Ziff Capital Management Group LLC will pay more than $400 million to settle federal charges it paid tens of millions of dollars in bribes through intermediaries to African government officials, and a unit will plead guilty to criminal charges.
Quant Who Coined Risk Parity Says Wall Street Has It Wrong (Bloomberg)
Nowadays, it’s a rare selloff that isn’t blamed on the growing heft of a strategy called risk parity.
But to a 52-year-old quant who helped develop it, the problem isn’t that risk parity is too big, but too small.
Some Investors Would Be Better Off Being Outsourced (Tony Isola)
Physicians and investors should focus like a laser on this credo, “First do no harm.” Few words of advice are more appropriate when making a decision to choose a financial advisor.
Why OPEC's oil deal won't mean a spike in gas prices (CNN Money)
Oil prices jumped more than 5% after OPEC announced the proposed cut, but shed some of those gains later.
"This is not a game-changer for the oil markets," said Julian Jessop, chief global economist at Capital Economics. "The agreed cut is small and from an already high level [of production]."
U.S. economy less sluggish in second quarter; companies investing more (Reuters)
U.S. economic growth was less sluggish than previously thought in the second quarter as exports grew more than imports and businesses raised their investments, hopeful signs for the economic outlook.
Companies
Wells Fargo chief Stumpf heads to Hill as pressure mounts (Reuters)
Wells Fargo & Co Chief Executive Officer John Stumpf returns to Capitol Hill on Thursday with his job under threat and the bank facing rising political pressure over a sales scandal that has become a major issue in Washington and on Wall Street.
Chesapeake Energy says it's been subpoenaed over its accounting practices (Business Insider)
In a regulatory filing on Thursday, the company said the Department of Justice served it a subpoena, asking for information about accounting practices for the purchase of oil and gas properties, how it classified them, and "related matters."
Microsoft CEO Satya Nadella is doubling down on his strategy with a new 5,000-person team (Business Insider)
Microsoft CEO Satya Nadella's new big idea is the "democratization of artificial intelligence," as in the concept that everybody should have access to AI and AI-powered technology.
Lawmakers Won’t Let Wells Fargo Forget Its Scandal Anytime Soon (Bloomberg)
Wells Fargo & Co. should prepare itself for a long stay in the Capitol Hill hot seat because it ran afoul of Elizabeth Warren’s favorite regulator.
Hot Mess: How Goldman Sachs Lost $1.2 Billion of Libya’s Money (Bloomberg)
When Wall Street’s most aggressive bank took on the world’s most incendiary client, someone was going to make a killing.
Politics
Congress Passes Spending Bill to Keep Government Running Through Dec. 9 (The Wall Street Journal)
WASHINGTON—Congress avoided a partial government shutdown at week’s end after both chambers passed a short-term spending bill that would keep the government running through early December.
Clinton enlists former foe Sanders in appeal for youth votes in U.S. presidential race (Reuters)
U.S. Democratic presidential nominee Hillary Clinton shared a stage with former rival Senator Bernie Sanders on Wednesday to appeal for youth votes in the Nov. 8 election as opinion polls show a close race with Republican Donald Trump.
Trump Tries to Reclaim His Pre-Debate Swagger (Bloomberg)
Following Monday night's much-criticized presidential debate performance against Hillary Clinton, Trump has returned to the campaign trail intent on honing his message on what he perceives to be his rival's weaknesses. On Wednesday, at a rally in Council Bluffs, Iowa, he rarely strayed from what proved to be an anti-Clinton rant.
Obama Says Backing Third-Party Candidate Is ‘a Vote for Trump’ (Bloomberg)
President Barack Obama warned in a radio interview on Wednesday that Americans who vote for Libertarian Gary Johnson or Green Party candidate Jill Stein in November risk putting Donald Trump into the White House, as he sought to blunt momentum for third-party candidates.
White House Is Profoundly Wrong About the Most Embarrassing Thing Senate Has Done (The Intercept)
THE WHITE HOUSE REACTED harshly to the Senate’s overwhelming vote on Wednesday to override President Obama’s veto of a bill that would enable the family members of 9/11 victims to sue the Kingdom of Saudi Arabia in U.S. Courts.
Hillary Clinton’s Key Aide Huma Abedin Is a Lightning Rod for Attacks (The Wall Street Journal)
Her emails have been sought by conservative interest groups, she has been accused by Donald Trump of doing State Department favors for the Clinton Foundation, and she has been embarrassed by her husband’s sexual activities.
Mark Cuban explains why he soured on Donald Trump (Business Insider)
Billionaire businessman Mark Cuban in a statement posted to Twitter on Thursday explained why he drifted away from Donald Trump after initially expressing excitement about the real-estate magnate's candidacy.
Technology
The Mercedes E300 Is the Most Technologically Advanced Car on the Road (Fortune)
It’s safe to say that in my career, I’ve tested, pushed, revved, tracked and picked apart hundreds of vehicles. It’s also safe to say that it’s extremely rare for me to get a crush on a mid-range sedan, no matter how luxurious—especially the “entry-level” variant.
HP Apologizes for Busting People's Printers on Purpose (Gizmodo)
HP is apologizing for deliberately pushing a software update to customer’s printers that would prevent them from working with non-HP ink.
Last week, news broke that HP was pulling a Keurig, after an automatic software update on certain printers would prevent them from printing with ink cartridges not made by HP.
Wireless Emergency Alerts are about to get more detailed (Engadget)
The FCC has voted to strengthen the Wireless Emergency Alerts system, which sends warnings about missing children, natural disasters and other dangerous events directly to citizens' cell phones.
Mercedes unveils concept for electric lineup (CNN Money)
Mercedes-Benz unveiled a concept for an electric SUV at the Paris Auto Show Thursday — the first of what will be a whole line of electric vehicles.
US regulators warn customers about exploding Samsung washers (Engadget)
Just days after Samsung began replacing defective Galaxy Note 7s due to a risk of exploding batteries, the company faces another major product issue. The US Consumer Product Safety Commission (CPSC) issued a warning today after multiple reports of top-loading washing machines exploding.
Best App Deals Of The Day! 6 Paid iPhone Apps For Free For A Limited Time (Digital Trends)
Everyone likes free apps, but sometimes the best ones are a bit expensive. Now and then, developers put paid apps on sale for free for a limited time, but you have to snatch them up while you have the chance. Here are the latest and greatest apps on sale in the iOS App Store.
Health and Biotech
This Year’s Flu Shot: What You Need to Know (TIME)
Flu season is just around the corner, and public health experts are urging Americans to get vaccinated.
The flu vaccine is recommended for everyone six months and older, and is widely available at pharmacies and doctors’ offices.
Scientists Create a Window into the Brain [Video] (Scientific American)
Lipids in the brain, often concentrated in cell membranes, block light from reaching the intricate structures that comprise the organ, which is the body’s master controller.
Women on the pill are 23% more likely to be treated for depression (Science Alert)
Women on hormonal contraceptives such as the pill are at a higher risk of being diagnosed with depression, and more likely to be prescribed antidepressants than their peers, a new study has found.
Life on the Home Planet
India says launches strikes on militants in Pakistan, raising risk of escalation (Reuters)
India said on Thursday it had conducted "surgical strikes" on suspected militants preparing to infiltrate from Pakistan-ruled Kashmir, making its first direct military response to an attack on an army base it blames on Pakistan and raising the risk of escalation.
Russia Says It Would Support 48-Hour Cease-Fire in Aleppo to Allow in Aid (The Wall Street Journal)
MOSCOW—Top Russian officials said Thursday that Moscow would support a 48-hour cease-fire to allow aid into the embattled Syrian city of Aleppo but hit back at Washington over a warning that the U.S. was prepared to suspend its engagement with Moscow over a Russian and Syrian offensive against the city.
Top scientists warn world likely to hit dangerous warming mark by 2050 (Associated Press)
A team of top scientists is telling world leaders to stop congratulating themselves on the Paris agreement to fight climate change because if more isn’t done, global temperatures will likely hit dangerous warming levels in about 35 years.
U.S. weighs tougher response to Russia over Syria crisis: officials (Reuters)
Obama administration officials have begun considering tougher responses to the Russian-backed Syrian government assault on Aleppo, including military options, as rising tensions with Moscow diminish hopes for diplomatic solutions from the Middle East to Ukraine and cyberspace, U.S. officials said on Wednesday.
Mars-like ice rediscovered in Hawaii volcano, but might not last (New Scientist)
We are standing on the 4200-metre-high summit of Mauna Kea, a dormant volcano that forms the highest point in Hawaii. It’s easy to see why astronomers are interested in this cold, remote place: the red-brown basalt rocks and dry, barren surface immediately conjure up images of Mars.
China armed forces warn Japan against South China sea patrols (Reuters)
Japan is "playing with fire" with plans to step up activity in the contested South China Sea through joint training patrols with the United States, China's Defence Ministry said on Thursday, warning it would not sit watching from the sidelines.
Scientists find evidence that life on Earth didn't only originate from RNA (Science Alert)
Scientists have just put forward an alternate hypothesis for how life originated on Earth – suggesting that RNA alone didn't kickstart the process.
Russia says U.S. Syria statement shows Washington supports terrorism (Reuters)
Russia is outraged by the threatening tone of the latest U.S. statement on Syria, viewing it as tantamount to supporting terrorism, Russian Deputy Foreign Minister Sergei Ryabkov said on Thursday, according to Russian news agencies.
