Financial Markets and Economy
LA area Port Traffic: Imports Up, Exports Down in May (Calculated Risk)
Note: LA area ports were impacted by labor negotiations that were settled on February 21st. Port traffic surged in March as the waiting ships were unloaded (the trade deficit increased in March too), and port traffic declined in April. Perhaps traffic in May is closer to normal now.
Container traffic gives us an idea about the volume of goods being exported and imported – and usually some hints about the trade report since LA area ports handle about 40% of the nation's container port traffic.
The Fed just slashed its economic outlook (Business Insider)
The Federal Reserve just released its latest Summary of Economic Projections.
Notably, the Fed now expects 2015 GDP to grow 1.8% to 2.0%, down from its previous outlook of 2.3% to 2.7% growth.
The Fed also revised its unemployment rate projection up to 5.2 to 5.3% from 5.0% to 5.2%.
Ignore the Buffett Indicator (Value Walk)
So the Buffett Indicator has been making the rounds again . It shows a wide divergence from US GDP and the total market cap of US stocks giving those who feel the market is overvalued ammo for their arguments. I’ve felt for some time the Indicator is no longer valid and recently has a back and forth with “Davidson” on it.
You’ve Been Warned: Central Bankers Turning Less Market-Friendly (Bloomberg)
Some things seem permanent. Greece is fighting for a bailout. A Bush and a Clinton are running for the White House. FIFA is plagued by scandal.
But for those who track the world’s central banks, change is afoot.
Having soothed investors for the past seven years with low interest rates, bond-buying and other interventions aimed at shoring up weak economies, monetary policy makers are slowly stepping out of markets in a variety of ways.
Energy Stocks: SolarCity taps renter market with ‘solar gardens (Market Watch)
Setting its sights on an untapped market, SolarCity Corp. is launching a pilot program in Minnesota that would give renters access to solar power.
The company is basing the program on “solar gardens,” or small community solar installations, that renters as well as businesses, schools and other entities can tap into for their electricity without having to install rooftop solar panels on their own properties, the company said Wednesday.
Allergan is buying a biotech company for $2.1 billion (AGN, KYTH, IBB) (Business Insider)
Allergan is buying Kythera Biopharmaceuticals for $2.1 billion.
In a statement on Wednesday, the companies announced that Allergan will pay $75 per Kythera share; 80% will be in cash, and the remaining 20% in new Allergen shares for Kythera shareholders.
Allergan is a pharmaceutical company and the maker of Botox.
MBA: Mortgage Applications Decrease in Latest Weekly Survey, Purchase Index up 15% YoY (Calculated Risk)
Mortgage applications decreased 5.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 12, 2015. …
FedEx: We expect 'continued moderate economic growth.' (FDX) (Business Insider)
FedEx reported fourth quarter earnings on Wednesday morning, missing on the top and bottom lines.
The global freight and shipping company reported adjusted earnings per share of $2.66, lower than estimates for $2.69, according to Bloomberg.
Sales came in at $12.1 billion, compared to the forecast for $12.30 billion.
The China Bubble Is Going to Burst (Bloomberg)
It’s no longer a question of whether China’s stock-market rally is a bubble, but when the bubble will burst.
That’s the refrain from a growing number of analysts as valuations climb to levels that by some measures already exceed the peak of China’s last equity mania in 2007.
It’s a ‘bizarro world’ for stocks and you may not be ready (Market Watch)
Today’s big news will likely happen when the Federal Reserve rolls out a policy decision and Chairwoman Janet Yellen sits down in front of the press. Until then, there’s nervous chatter about whether this market is really ready for a Greek curve ball. Once more, this time with feeling…
The war of words has heated up ahead of Thursday’s eurozone finance ministers meeting — from Greek Prime Minister Alexis Tsipras likening the IMF to a bunch of criminals to an increasingly fed up European Commission President Jean-Claude Juncker. And almost no one thinks the meeting will produce a breakthrough in the battle to keep Greece afloat.
Fed: No rate hike in June, but more hints for September (CNN)
Get ready, America: an interest rate hike is on the horizon.
The Federal Reserve decided not to raise interest rates in June, but comments Wednesday suggests the long awaited rate hike could come in September.
"No decision has been made by the committee about the right timing of an increase, but certainly an increase this year is possible," Fed chair Janet Yellen said in a press conference Wednesday afternoon.
This chart shows how the super-rich invest in different parts of the world (Business Insider)
The latest annual World Wealth Report from Capgemini and RBC Wealth Management just came out, and it has some important insights on where and how the world's ultra-rich are investing their millions.
Last year, high net worth individuals, or HNWIs (defined as people with investable assets of $1 million or more, excluding primary residence, collectibles, consumables, and consumer durables), became slightly riskier: stocks overtook cash as the number one asset in their portfolios.
Goldman Asks, Is The Bundesbank "Ominously" Trying To Sabotage The ECB's QE? (Zero Hedge)
When the sell-off in German Bunds first got going, it looked like a temporary squeeze, with the largest position in the market – the ECB QE trade – coming under pressure after much weaker-than-expected Q1 GDP on 4/29.
Crude oil is sliding (USO, WTI, OIL, VDE) (Business Insider)
Crude oil is sliding.
Near 12:30 p.m. ET, West Texas Intermediate crude oil was down more than 1% at around $59.25 per barrel, almost $2 below where it was before this morning's crude inventory report.
Allergan to buy double-chin treatment maker Kythera for $2.1 billion (Market Watch)
Botox maker Allergan PLC agreed to buy Kythera Biopharmaceuticals Inc., which is preparing to launch an injection aimed at reducing so-called double chins, for about $2.1 billion in cash and stock.
Dublin-based Allergan AGN, -1.11% will pay $75 a share for Kythera, representing a 24% premium over Tuesday’s closing price.
4 banks pay $1 bn to settle forex rigging suit: sources (Business Insider)
Four major banks have reached separate agreements to settle a US civil lawsuit over alleged foreign-exchange rigging in deals totaling nearly $1 billion, sources close to the situation said Wednesday.
The agreements by Goldman Sachs, French bank BNP Paribas and British banks Barclays and HSBC are preliminary and could change, the sources said, confirming a report on the settlements in The Wall Street Journal that cited people familiar with the matter.
Catch The Company Stock Tax Break While You Can? (Forbes)
Do you have employer stock sitting in your current 401(k)? Have you left behind an old 401(k) that holds your ex-employer’s stock? Pay attention. The window could be closing on a chance to save a lot of taxes on the appreciation of those shares.
Whereas most withdrawals from a pretax 401(k) are taxed as ordinary income, at a current top rate of 39.6%, appreciation on employer stock can be taxed as capital gain, at a top rate of just 20%. Financial advisors call this the “net unrealized appreciation,” or NUA break.
New investors are putting billions in this fund (CNN)
If you're too busy to do laundry or cook dinner, you probably don't have loads of time to invest either.
Many people in your shoes are putting their investments on "auto pilot" in target date funds. You sign up, put your money in the fund and basically forget about it until you retire.
The free advice of activist investors is worth plenty to shareholders (Market Watch)
At 8:38 a.m. on June 11, the activist investment firm Elliott Management—run by billionaire Paul Singer—disclosed that it controlled a 7.1% interest in software vendor Citrix Systems, and wanted to meet with management to discuss its proposal to overhaul the company.
Politics
Japan Join America's Presidential Campaign (Bloomberg)
American politics rarely factors into the policies set by the Bank of Japan. But Haruhiko Kuroda's recent comments about the yen suggest Washington is very much on Tokyo's mind these days.
Last week, the Bank of Japan governor sent the yen soaring by saying the currency is "unlikely to weaken further in real effective terms." By Monday, he was claiming he wasn't signaling a change in policy. But there's little doubt he was. I've interviewed Kuroda enough times to know how cautious he is when speaking on even anodyne issues, never mind exchange rates. Kuroda's intention seems to have been to maintain the yen's 30 percent drop in value, while reassuring the world he won't weaken the currency any further.
For those tired of Bushes and Clintons, introducing Hillary and Jeb! (Market Watch)
All of you who were worried that the 2016 presidential race would be a repeat of Bush vs. Clinton can relax.
If the two candidates who formally launched their campaigns over the weekend succeed in getting the nominations of their parties, what we will have instead is Jeb vs. Hillary.
Former Florida Gov. Jeb Bush unveiled his campaign logo on Sunday as he declared his candidacy and it is simply “Jeb!”
Republican Nightmare: Donald Trump on the Debate Stage (Bloomberg)
Republicans are worried that Donald Trump will turn their first presidential debate into an embarrassing circus for the party and top candidates.
The celebrity real estate mogul's Gatsby-esque entrance into the race on Tuesday has unleashed a torrent of anti-Trump tirades from influential Republicans, who are openly fretting that the bombastic, saber-rattling New Yorker with broad name recognition is in position to qualify for one of the 10 coveted debate slots under the rules set by Fox News.
'Me? Rich?' U.S. presidential hopefuls play middle-class card (Reuters)
Don't call Chris Christie rich. The Clintons say they still have bills to pay. And Mike Huckabee? Despite his wealth, he was born "blue collar, not blue blood."
Touting one's humble beginnings has been part of U.S. presidential contenders' playbook going back to Abraham Lincoln's talk of his log cabin youth. But the 2016 hopefuls are working harder than ever to convince voters they are just like them.
In burnishing their working- and middle-class credentials the hopefuls are following a shift in the political debate from jobs and a fragile economic recovery during the 2012 campaign to one now centered on income inequality.
Technology
3-D printers could soon make human skin (CNN)
Human skin could be rolling off a 3-D printer near you within five years.
Companies are working on using live cells and specialized 3-D machines in a process called bioprinting, which experts say could be worth $1 billion by 2025.
Printing organs has generated plenty of hype for this branch of high-tech manufacturing, but applications for beauty firms are more likely to emerge sooner.
Nest's new security camera lets you watch your pets (CNN)
You can now spy on your napping cats from your smartphone in high definition.
Nest, maker of the learning thermostat, announced an upgraded version of the Dropcam wireless security camera on Wednesday.
This Is the Most Adorable, Brutally Difficult E3 Game (Wired)
GIVE THE AWARD for “biggest disconnect between cuteness of graphics and brutality of difficulty” toCuphead, an Xbox indie game on display at E3. It will draw you in with its adorable aesthetic and then hammer you until you are nothing.
Aesthetically, Cuphead is clearly inspired by old Max Fleischer cartoons, and when I say “inspired by” I mean it feels like you are actually playing a freaking Betty Boop reel. I can’t stress enough the insane attention to detail here, in the wild and varied facial expressions of the characters, the jazz music, the perfect replication of the look of the 1930’s.
Health and Life Sciences
New anti-malaria drug developed at Dundee University (BBC)
Researchers at Dundee University have discovered a new compound which could treat malaria while protecting people from the disease and preventing its spread, all in a single dose.
The compound, DDD107498, was developed by the university's Drug Discovery Unit and the Medicines for Malaria Venture.
Scientists said the "exciting" new drug could work well against parasites resistant to current treatments.
Surgery-free option for appendicitis could become the norm (CNN)
Surgery to remove the appendix, called appendectomy, is the go-to treatment for patients with appendicitis and is one of the most common surgical procedures in the U.S. However, antibiotic drugs could take the place of surgery for the many patients who have mild cases of appendicitis, according to new research.
Researchers in Finland studied more than 500 adults who had uncomplicated appendicitis, meaning their appendixes had not ruptured and they had no signs of infection or other problems in their abdomens. Half of the patients received an appendectomy, which is the standard of care, while the other half got an IV of antibiotics for three days followed by antibiotic pills for a week.
Tough brain tumors may have a weak spot (Futurity)
Some brain tumors are notoriously difficult to treat. Whether surgically removed, zapped by radiation, or infiltrated by chemotherapy drugs, they find a way to return.
The ability of many brain tumors to regenerate can be traced to cancer stem cells that evade treatment and spur the growth of new tumor cells.
But some brain tumor stem cells may have an Achilles’ heel, scientists have found. The cancer stem cells’ remarkable abilities have to be maintained, and researchers have identified a key player in that maintenance process. When the process is disrupted, they report, so is the spread of cancer.
Life on the Home Planet
Zookeepers Are Recreating Jurassic World’s Raptor Training (Wired)
NEW BOX-OFFICE OPENING weekend champion Jurassic World vanquished The Avengers with nearly $209 million in just three days in the US and over $511 million worldwide, an unexpected juggernaut that blew away expectations. And though it may not have as many iconic spine-tingling moments of terror as the original—possibly because most of it takes place during the day—one scene in particular has resonated with animal lovers, both professional and amateur: Chris Pratt’s turn as Raptor Whisperer. Pratt’s character Owen Grady is a former Navy man (and dinosaur expert? not asking too many questions here) who works with velociraptors, and has cultivated a special bond with them over time.
Escaped Tiger From Georgia Zoo Kills Man and Is Put Down (Time)
A tiger that escaped from a zoo in Tbilisi, Georgia during extreme flooding was shot and killed Wednesday after it took the life of relief worker.
“The tiger is liquidated,” interior ministry spokeswoman Nino Giorgobiani told theWashington Post.
The tiger had escaped captivity over the weekend along with a slew of other zoo animals. Before the attack, zoo officials had said that the tiger, along with eight lions and seven other tigers, had been found dead, according to the Guardian.
French minister says Nutella spread 'damages environment' (BBC)
France's Ecology Minister Segolene Royal has urged people to stop eating Nutella because it is made with palm oil and damages the environment.
Ms Royal said the chocolate-hazelnut spread contributed to deforestation because oil palms were replacing trees.
We need to change how and where we build to be ready for a future of more extreme weather (Phys)
The human and economic losses resulting from extreme weather events during the last several years vividly demonstrate the US' historically shortsighted approach to development. The ill-advised, fast-paced construction of human settlements in low-lying, coastal and riverine environments prone to flooding has long been the American way. From Galveston to Hoboken, we have laid out our grids and thrown up our houses with little regard for the consequences.
Watch Thousands of Crabs Invade a California Beach (Time)
Beachgoers in southern California expecting the typical pristine shores may have been surprised to find the coast dotted with thousands of tiny red crabs in recent weeks.
Scientists say that the tuna crabs, typically around three inches in length, are typically found further South in waters adjacent to Mexico. They likely made their way North as a result of unusually warm water in the Pacific Ocean, in part due to the El Niño weather pattern. Because they spend time swimming through the water, rather than on the seafloor, they’re affected by winds and currents that may push them to shore.
Fascinating Old Census Maps, Updated for a Modern America (Wired)
INSPIRED BY A landmark 19th century atlas produced by the US Census Bureau, statistician Nathan Yau has created a series of fascinating maps of the country. The new maps are updated versions built with data Yau pulled from a variety of government websites.
The original “Statistical Atlas of the United States,” based on the 1870 census and published in 1874, was part of a revolution in cartography. Up to that point, cartographers mostly made maps that captured physical features of the landscape: a river here, a city there, and so on.
