Financial Markets and Economy
Rosenberg: Janet Yellen makes 'no sense' (Business Insider)
David Rosenberg is confused by Federal Reserve chair Janet Yellen.
In a note to clients on Monday, Rosenberg wrote that Yellen's commentary at last week's post-Fed-meeting press conference — when compared and contrasted with the Fed's policy statement — makes "no sense."
Here's Rosenberg:
Seriously, is the same paragraph in her post-meeting/pre-press conference statement, Janet Yellen said "the outlook abroad appears to have become more uncertain of late" and "the situation abroad bears close watching" and then ended with "I do not want to overplay the implications of these recent developments" and that "we have not fundamentally altered our outlook."
That makes no sense.
Gold prices are set to jump, this pattern suggests (Market Watch)
Investors had all weekend to chew on what the holders of American interest rates had to say last week and what it means for the market in what is a historically tough stretch.
Macro Man, an anonymous blogger who consistently churns out the goods, wrote ofthe “absurdity” of the Fed’s latest meeting and why the central bank’s credibility is in bad shape. As a bonus, he even wrote his thoughts in the third person, for some added gravitas.
Volkswagen shares are getting CRUSHED after the US found its cars were giving false emissions data (Business Insider)
Volkswagen shares are diving more than 20% in trading on Monday.
The Mindset of the Winning Trader (Trader Feed)
A major challenge for traders is dealing with noisy environments. No, I'm not writing about volatility or even the volatility of volatility, but rather the noise of our own internal environments.
We become caught up in what screens are telling us. We keep tabs of what others are saying and trading. We follow news, we read emails, we message back and forth.
The one person we don't listen to is ourselves. That requires quiet.
Another Contender Emerges in Battle for China Oil Market Spoils (Bloomberg)
The race among the top sellers of crude to the world’s biggest energy-consuming nation got a little tighter last month.
Goldman sees S&P at 2,100 by year’s end after Fed stands pat (Market Watch)
Analysts at Goldman Sachs expect the S&P 500 will climb to 2,100 by the end of this year, partly due to the Federal Reserve’s decision last week to keep interest rates at historically low levels.
“The no-hike decision eased financial conditions and supports S&P 500 SPX, -1.62% rising to 2,100 by year-end,” wrote the Goldman analysts in their “U.S. weekly kickstart” note.
Taiwan's Hon Hai offers to buy Sharp's LCD business, wants Apple funds: Nikkei (Business Insider)
Taiwan's Hon Hai Precision Industry Co <2317.TW> offered to buy Sharp Corp's <6753.T> struggling liquid panel display business and plans to seek funding from Apple Inc <AAPL.O>, the Nikkei business daily reported on Monday.
The report did not specify how much Hon Hai, also known as Foxconn, was willing to pay for the loss-making operations, but said it would seek funding from Apple, a key Sharp customer.
The 800 Ways Taxpayer Money Supports Fossil Fuel Industries (Bloomberg)
As world leaders converge on New York for a United Nations gathering that’s expected to have a strong emphasis on climate change, the OECD is pointing out 800 ways rich industrial nations support fossil fuels with taxpayer money, along with a handful of countries that are catching up quickly.
The measures were worth $167 billion last year for the oil, natural gas and coal industries, according to the Organization for Economic Cooperation and Development, a Paris-based institution that advises 34 industrial nations. While that number has fallen from almost $200 billion in 2012, it easily exceeds the value of subsidies for renewables such as wind and solar.
Asian shares dip on global growth concerns, U.S. selloff (Business Insider)
Asian shares followed Wall Street lower on Monday after the Federal Reserve's decision to keep interest rates at record lows raised fresh concerns about growth globally, particularly in China.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> fell 1 percent, with Australia.
Trading Meat for Tires as Bartering Economy Grows in Greece (NY Times)
Thodoris Roussos stood in his butcher’s shop and pointed to a large white delivery truck at the curb. For months, he had put off replacing the tires, because Greece’s financial crisis had cut into business. But recently, he upgraded the van with a set of good wheels at a price that could not be beat.
“Normally, the tires cost 340 euros, but no money changed hands,” Mr. Roussos said, beaming. “I paid the guy in meat.”
If You Liked Bonds Pre-Fed, You'll Love Them Even More Now (Bloomberg)
Being bullish on the U.S. bond market just got a lot easier.
Barrick says strong interest in U.S. gold asset sale (Business Insider)
There has been strong interest in a package of six U.S. gold assets that Barrick Gold Corp <ABX.TO> wants to sell, a senior Barrick executive said on Sunday, adding that he expects a deal to close before year end.
The interest has been largely from North American-based miners, Barrick President Kelvin Dushnisky said.
Panic in Gulf at $50 Oil Recedes as Reserves Soothe CDS Market (Bloomberg)
Investor concern a Gulf nation could default is receding, even with oil trading below $50 per barrel.
Nike results to offer sneak peak of China’s drag on U.S. earnings (Market Watch)
Interest in U.S. earnings will pick up this week after the Federal Reserve punted on raising interest rates in September, and investors get a sneak peek on how the crisis in China dented foreign-based revenue in Nike Inc.’s earnings.
Stocks mostly finished lower last week, representing the 11th straight week where the S&P 500 Index SPX, -1.62% which finished the week 0.2% lower, has alternated between weekly gains and losses.
AFTERMATH: Here's your preview of this week's big market-moving events (Business Insider)
Interest rates are staying low for a very long time.
On Thursday at the conclusion of its Federal Open Market Committee (FOMC) meeting, the Fed announced it was keeping its benchmark interest rate target at near 0 to 0.25%, which is where it's been since December 2008.
"Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term,"the Fed said in its statement. "The Committee continues to see the risks to the outlook for economic activity and the labor market as nearly balanced but is monitoring developments abroad. "
Shire Leads Britain's Stocks Higher for First Gain in Three Days (Bloomberg)
U.K. stocks rebounded after a two-day drop, with Shire Plc climbing the most.
Shares of the health-care company rose 3.3 percent after it got European Commission approval for a drug attention deficit hyperactivity disorder in children and adolescents. Foxtons Group Plc rose 2.7 percent as U.K. house prices jumped to a record.
An index that China's leaders use to measure economic growth looks horrible (Business Insider)
The office of China's Premier, currently Li Keqiang, has traditionally been tasked with monitoring the economy.
And in the past, Li Keqiang has said openly that he doesn't necessarily use GDP to track how fast it's growing. He uses a combination of metrics put together — a composite of electricity output, rail freight and loan growth.
Greece's Bonds Set to Extend Advance as Syriza Wins Election (Bloomberg)
Greece’s government bonds may extend their longest run of weekly gains in a year after the nation voted Alexis Tsipras and his Coalition of the Radical Left, or Syriza, into power for the second time in eight months.
Stock futures higher ahead of housing data, Fed speaker (Market Watch)
Stock futures shot higher Monday, adding to earlier gains, as investors waited for home-sales data and a speech from a key Federal Reserve member to provide further direction.
Futures for the Dow Jones Industrial Average YMZ5, +0.60% rose around 100 points, or 0.6%, to 16,416, while futures for the S&P 500 ESZ5, +0.58% added 11 points, or 0.6%, to 1,961. Futures for the Nasdaq-100 NQZ5, +0.50% were up 22 points, or 0.5%, to 4,349.
Food Trader Olam Eyes $2 Billion Opportunity After Crisis (Bloomberg)
Olam International Ltd., a commodity trader controlled by Singapore’s state investment company, is ready to deploy almost $2 billion on acquisitions to take advantage of slumping agricultural commodity prices.
"We are begging to enter a buyer’s market," Sunny Verghese, chief executive officer of Olam, held 51 percent by Singapore’s Temasek Holdings Pte, said in an interview. "We will do bigger deals that really move the needle for us."
Dollar climbs, shrugs off ‘dovish’ Fed (Market Watch)
The dollar jumped early Monday against its major rivals, with some analysts giving credit to bets that the Federal Reserve will raise interest rates in December, even after standing pat this month.
The ICE Dollar Index DXY, +0.28% climbed 0.5% to 95.33. The buck rose to 120.33 yen, up 0.3% against the Japanese currency USDJPY, +0.42% while the euroEURUSD, -0.4778% fell 0.2% to $1.1280.
Crude Trades Near $45 as Saudi Stockpiles Climb Amid Supply Glut (Bloomberg)
U.S. oil prices have narrowed their discount to international benchmark Brent as a supply glut in North America abated even as it grew elsewhere.
West Texas Intermediate futures for November delivery climbed 1.5 percent, trading for $2.57 a barrel less than the corresponding contract for Brent. The spread between the two grades averaged $2.25 last week, the least since January. U.S. prices are being supported by faltering crude production and supply disruptions in Canada, while Brent is under pressure because of rising shipments from the North Sea and West Africa, according to Barclays Plc.
World Economy Angst Lingers in Markets as Bonds, Gold Hold Gains (Bloomberg)
Global markets don’t know what to make of the Federal Reserve anymore.
Banks have decided: the technology behind bitcoin is the future (Business Insider)
Nine of the world's biggest banks on Tuesday threw their weight behind blockchain, the technology that powers bitcoin.
Barclays, BBVA, Commonwealth Bank of Australia, Credit Suisse, JPMorgan, State Street, Royal Bank of Scotland, and UBS have all formed a partnership to draw up industry standards and protocols for using the blockchain in banking.
The partnership is being led by R3, a startup with offices in New York and London headed by David Rutter, the former CEO of ICAP Electronic Broking and a 32-year veteran of Wall Street.
Politics
Hillary Clinton: ‘We’re not’ preparing for Joe Biden to enter race (Market Watch)
Joe Biden may be edging closer to launching a bid for the 2016 Democratic presidential nomination. But Hillary Clinton says her campaign isn’t preparing for the possibility.
“We’re not, because this is such a personal decision,” Clinton said on CBS’ “Face the Nation.” Clinton, the Democratic frontrunner, added: “The vice president has to sort this out. He’s been so open in talking about how difficult this time is for him and his family. And he’s obviously considering what he wants to do, including whether he wants to run.” Yahoo Politics has more on Clinton and Biden, whose aides in recent days have suggested to donors and supporters he is more likely than not to enter the race.
A lot of Republicans want to shut down the government over 10 'undercover' videos (Business Insider)
The videos, even to one of Planned Parenthood's most ardent supporters, are disturbing.
Ten of them have trickled out, one by one, since July. Each of the undercover videos, released as part of a "sting" operation by an anti-abortion group called the Center for Medical Progress, has arguably provoked a more intense reaction than the last.
Greek elections: Opposition concedes defeat (CNN)
A month after he resigned from his post as prime minister, a jubilant Alexis Tsipras declared victory in Greece's snap elections Sunday.
Speaking to a crowd of cheering supporters in Athens, Tsipras said his Syriza party had been given a "clear mandate" at the polls.
"This result does not belong to Syriza. This result belongs to the working classes of this country, the people who fight for a better tomorrow, who dream of a better tomorrow," Tsipras said, "and this is something that we will achieve through a lot of hard work."
Technology
Will Artificial Intelligence Replace Designers? (PSFK)
“The automation of labour is inevitable,” says New York designer Lucien Ng. “Before the end of this century, 70% of today’s occupations will likely be replaced by automation.” With that sobering thought in mind, Ng created “Artificium”, a project that posits a world where it has already happened.
The short video presents as an advertisement for the artificial intelligence designer Artificium, promising to improve corporate profits by removing humans from the design process. “Because designers cost time and money,” the ad states, “The elimination of the designer…can bring good to the world.”
Health and Life Sciences
Just How Safe Is Laser Eye Surgery? (Gizmodo)
The offers began arriving by email in January: a chance at clearer vision for the special price of US$299 per eye. Over the next four months, I received 20 ads from the same company – each offering the same deal for the “safe, FDA approved” surgery.
“Individual results will vary,” each ad said in the fine print. None mentioned that those variable results could include seven categories of vision-threatening complications or 17 types of non-vision-threatening side-effects, such as “increased sensitivity to light”, “eye irritation related to drying of the corneal surface”, “pain or a foreign body sensation”, or increased susceptibility “to trauma from impact”. (Bargain offers notwithstanding, average all-in costs also exceed US$2,000 per eye.)
Pregnant women 'cut out alcohol' (BBC)
Pregnant women and those trying to conceive should not drink alcohol, Wales' chief medical officer has said.
Dr Ruth Hussey was speaking ahead of a special conference on the issue hosted by Alcohol Concern Cymru in Cardiff.
Life on the Home Planet
America's Stonehenge: New Hampshire rocks history or hoax? (Phys)
Using the astronomical chart on a table in the covered tower, visitors aim their gaze along worn arrows to huge, upright stones hundreds of feet away. Beyond each slab of granite, clearings stretch the eye to the horizon on a dazzling day in late summer New Hampshire.
On Wednesday's autumnal equinox, people will flock to the woods near the Massachusetts state line, watch the sun rise or fall over the massive chunks of granite and decide for themselves whether they're standing amid relics of ancient history or pure hooey.
