Financial Markets and Economy
In Turnabout, Disney Cancels Tech Worker Layoffs (NYTimes)
In late May, about 35 technology employees at Disney/ABC Television in New York and Burbank, Calif., received jarring news. Managers told them that they would all be laid off, and that during their final weeks they would have to train immigrants brought in by an outsourcing company to do their jobs.
In the US economy, the moment we've all been waiting for may already be gone (Business Insider)
Since the worst of the financial crisis has passed, those watching the markets and the economy have been waiting for one thing: inflation.
And at least one economist thinks inflation might already be here.
So far, of course, there's been no inflation to be found anywhere. "Core" inflation — which excludes the more volatile cost of food and gas — has been running at around 1.7% or so over the last couple years, below the Federal Reserve's 2% target.
Fed Seeks Feedback on 'Stress Tests' (Wall Street Journal)
A top Federal Reserve official is reaching out to a variety of bank executives to discuss how the central bank might make its annual “stress tests” less stressful.
The discussions between Fed governor Daniel Tarullo and bank executives comes as Washington and Wall Street debate whether postcrisis rules—including the annual tests of banks’ ability to withstand tough times—should be scaled back for smaller banks. Some banks say the burden of complying with the tests far outstrips the benefit to regulators or the financial system.
What Happened The Last Time The Fed's Balance Sheet Hit 25% Of GDP (Zero Hedge)
Ever since the Fed launched its unprecedented, unsterilized debt monetization rampage known as quantitative easing, coupled with seven years zero interest rates, there has been much confusion about how the Fed will achieve two gargantuan tasks: i) hike rates, and ii) reduce the amount of holdings on its balance sheet. The quandary, according to conventional wisdom, is magnified because something like this "has never been done before."
Comments on May Housing Starts (Calculated Risk)
Total housing starts in May were below expectations, however, overall, including the upward revisions to March and April, starts were solid.
Bond Report: Treasury yields fall for second straight day (Market Watch)
U.S. Treasury yields finished lower for the second straight session Tuesday as investors awaited fresh indications on the Federal Reserve’s interest-rate policy.
An updated Fed policy statement, as well as updated forecasts for inflation, economic growth, and the course of interest-rate hikes, are expected to be released after the meeting concludes at 2 p.m. Eastern on Wednesday. Economists generally expect the Fed to continue laying the groundwork for a September move on interest rates.
U.S. budget could look very different in 25 years (CNN)
The Congressional Budget Office on Tuesday estimated that revenue flowing into the federal government as well as government spending will both rise as a percent of the economy, but spending growth will far outpace revenue growth.
As a result, the country's accumulated public debt could top 100% of gross domestic product by 2040, up from 74% today, the CBO said in its long-term budget outlook, the first published under the agency's new director, Keith Hall.
Chinese Iron Ore, Steel Prices Collapse Despite Government Stimulus (Zero Hedge)
A funny thing happened in the last year since China gave up on its hard-line reforms and folded back to stimulate by all means necessary… the financial economy soared and the real economy sunk. Iron Ore prices are near record lows and Rebar prices are at record lows as stocks spike.. and this should be no surprise since we were told by a rural Chinese chap recently that "making money in stocks is a lot easier than farmwork" or construction or real world activity.
Bird Flu Sends Egg Prices Up, but Slowing Demand Prevents Shortages (NY Times)
Are egg prices up significantly?
Or are the reports overblown that attribute higher prices to an outbreak of avian flu that has affected some 47 million chickens and turkeys?
Trading
3 stocks to buy if the market crashes (CNN)
What can be better than buying great companies for the long term at a good price?
Occasionally, these opportunities occur when the markets turn south, and investors have the chance to invest in top-notch businesses at attractive valuation levels. Trying to time the markets is practically impossible, so we don't encourage it. However, being prepared with a shopping list in case there's an opportunity is a smart approach.
Are Pier 1 Imports Growth Plans Still on Track? (24/7 Wall St)
Pier 1 Imports Inc. (NYSE: PIR) is set to report its fiscal first-quarter earnings after the markets close Wednesday. There are consensus estimates from Thomson Reuters of $0.08 in earnings per share (EPS) on $434.53 million in revenue. In the same quarter of the previous year it posted EPS of $0.16 and revenue of $419.06 million.
Politics
Jeb Bush just slow jammed the news with Jimmy Fallon (Business Insider)
Newly minted Republican presidential candidate. Jeb Bush will appear on the "Tonight Show" with Jimmy Fallon on Tuesday night.
On the show, Bush is going to slow jam the news.
The "Tonight Show" airs at 11:35 p.m. on NBC, but Business Insider watched the taping. The show's "Slow Jam The News" segment features Fallon and his house band, The Roots, making musical innuendo as their guest talks about the headlines.
Ben Carson Barely Has a Campaign and He's Still Winning (Mother Jones)
Ben Carson's presidential campaign is in chaos. His deputy campaign manager quit to return to his farm. His general counsel just went on a safari. His campaign chairman left almost as soon as Carson announced his candidacy to work on a pro-Carson super-PAC—one of three outside outfits supporting Carson's run, while at the same time competing with each other for money and volunteers.
Carson, meanwhile, is continuing to travel the country giving paid speeches—an unusual move for a candidate.
Here’s Donald Trump’s Presidential Announcement Speech (Time)
Wow. Whoa. That is some group of people. Thousands.
So nice, thank you very much. That’s really nice. Thank you. It’s great to be at Trump Tower. It’s great to be in a wonderful city, New York. And it’s an honor to have everybody here. This is beyond anybody’s expectations. There’s been no crowd like this.
Humor
ISIS Confused by Trump’s Hotel Analogies (Andy Borowitz, The New Yorker)
A spokesman for ISIS said on Tuesday that its leaders were “genuinely confused” by the abundant hotel analogies in Presidential candidate Donald Trump’s announcement speech, acknowledging that they were having a difficult time understanding how his colorful anecdotes about running a hotel empire translated into a strategy to defeat the terror group.
[…]
“We’re having a very hard time making sense of the speech,” the ISIS spokesman said. “He talked about defeating us, but it seemed like what he was saying was pretty specific to hotels.”
Technology
Portal Lets You Quickly Transfer Big Files From PC To Phone (Tech Crunch)
Pushbullet, the company that makes a handy utility that moves notifications, links and files between devices, is out today with a new app called Portal, which focuses on file transfer alone. Launching first on Android where it’s able to more deeply integrate with the OS, Portal is designed to make it easier to move files – even large files – between your computer…
Health and Life Sciences
Study Supports Antibiotic Use to Treat Appendicitis (NY Times)
For more than 100 years, the standard treatment for appendicitis has been surgery. Now a large Finnish study provides the best evidence to date that most patients can be treated with antibiotics alone.
The study, published Tuesday in JAMA, involved 530 patients aged 18 to 60 who agreed to have their treatment — antibiotics or surgery — decided at random.
Blood chemical predicts brain decline (BBC)
Scientists have discovered a chemical in blood that indicates whether people will have declining brain function.
Looking for the earliest signs of Alzheimer's disease, they analysed levels of 1,129 proteins circulating in the blood of more than 200 twins.
These were compared with data from cognitive-function tests over the next decade, in Translational Psychiatry.
Life on the Home Planet
Wealth of Nations, Years 1–2008 (Visualizing Economics)
Historical GDP estimates were created by Professor Madison and are currently maintained and updated by the Madison Project.
The years chosen to map were picked because they had data for the greatest number of countries. However, before the 20th century, most places do not have enough financial records to estimate GDP per capita for every year. And it is often the wealthier areas which have the records.
More bee species 'must be protected' (BBC)
Almost 80% of crop pollination by wild bees is provided by just 2% of the most common species, say scientists.
In the UK, a small number of bees are vital for crops such as oilseed rape, apples and strawberries, according to the University of Reading team.
But protecting a wide range of bees would "provide an insurance policy against future ecological shocks, such as climate change", the scientists say.
Eruption Update: Japan, Philippines, and Indonesia (Wired)
Japan
Asama, one of the volcanoes located near Tokyo, erupted on Tuesday.
Philippines
Bulusan had a small phreatic (steam-driven) explosion on Monday, it’s first activity since similar small explosions in 2011.
Indonesia
The increasingly growing dome on Sinabung continues to periodically collapse, forming dangerous pyroclastic flows that have swept down the slopes of the volcano.
