Financial Markets and Economy
In Countdown to Fed, Traders Buy Dollars With Eye on 2004 Drop (Bloomberg)
With the Federal Reserve decision less than 24 hours away, currency traders are buying the dollar amid speculation nothing will derail the start of the U.S.s first monetary policy tightening cycle since 2004.
There's only one bright spot in Europe's economy right now (Bloomberg)
It's flash PMI day in Europe, meaning Markit is releasing its monthly estimates of how it thinks the EU's economy is faring.
The overall picture is a cloud with a silver lining.
Junk-Bond Market's Math Looks Daunting for Riskiest Companies (Bloomberg)
The bond-market’s math is starting to look a little scary for the riskiest corporate borrowers.
Crisis — what crisis? Emerging markets are developing fast (Market Watch)
The price of oil is tanking, taking the rest of the commodities market down with it. The Federal Reserve is about to raise interest rates for the first time in nine years, sending the dollar soaring. Political chaos is about to be unleashed as budget and trade deficits become unsustainable. There are plenty of reasons why investors have been getting out of emerging markets this year, and putting their money, if anywhere, into the safer, established industrial countries.
As end of Fed's 'free money' nears, consumers still likely to spend (Business Insider)
Judged by how long it has been going on, the current U.S. economic expansion should be on its last legs, but the mood in this rebounding heartland auto town would not show it.
Fiat Chrysler Automobiles <FCAU.N> <FCHA.MI> has doubled its local workforce to 7,000 amid record industry sales, upscale apartments are being built or tucked into vacant factories, and new small businesses are opening along a quaint Main Street.
The Incredibly Long Contract That's Vexing Credit Suisse Brokers (Bloomberg)
Wells Fargo & Co. has made it easy for Credit Suisse Group AG private bankers to join the San Francisco-based lender. Leaving, however, is another story.
Crude surrenders gains as supply worries pile up (Market Watch)
Crude oil prices surrendered earlier gains on Wednesday, as most traders expected the U.S. Federal Reserve to raise interest rates later in the day, which would buoy the greenback and make crude imports more expensive for buyers paying with foreign currencies.
Toyota sees 2016 global sales flat (Business Insider)
Toyota Motor Corp <7203.T> said it expected group-wide global vehicle sales to stay flat in 2016 at 10.11 million vehicles, likely keeping it ahead of rivals Volkswagen AG <VOWG_p.DE> and General Motors Co <GM.N> as the world's top-selling automaker.
Global sales at the group, which includes mini-vehicle maker Daihatsu Motor Co <7262.T> and truck maker Hino Motors Ltd <7205.T>, would likely total 10.10 million vehicles this year, it said in a statement on Wednesday.
China's Central Bank Sees Growth Slowing to 6.8 Percent in 2016 (Bloomberg)
Chinas central bank said it expects economic growth to decelerate to 6.8 percent next year amid an acceleration in consumer inflation and a rebound in real estate sales.
For some on Wall Street, energy stocks are back in favor for 2016 (Business Insider)
While many investors have been wary of taking chances on the battered energy space, a sizeable minority of Wall Street strategists are betting on a pickup in oil prices next year and recommending energy stocks.
At least seven of 25 strategists in a recent Reuters poll cited energy as their contrarian pick for 2016 or said they expect an upside surprise from oil and energy in 2016.
Dollar gains, but traders warn of weakness after interest-rate decision (Market Watch)
The dollar was higher against the yen and euro early Wednesday, as investors await the Federal Reserve’s decision on whether it would raise interest rates for the first time since 2006.
The U.S. currency USDJPY, +0.15% was at ¥122.00, compared with ¥121.70 late Tuesday in New York. The buck was modestly stronger against the euroEURUSD, +0.0640% , which was down about 0.1% to $1.0918.
Wal-Mart, Guns and Santa Claus: It's Christmastime in America (Bloomberg)
At the Wal-Mart Supercenter 10 miles east of the Las Vegas strip, about 45 shotguns and rifles including Rugers, Remingtons and Mossbergs are on display toward the back of store, past the eyeglasses, to the left of arts and crafts. The guns rest in a locked glass case, a string of Christmas lights made from red shotgun shells hangs below. “Silent Night” plays overhead.
Valeant Pharmaceuticals Cuts Earnings and Sales Forecasts (NY Times)
Valeant Pharmaceuticals said Wednesday it had sharply lowered its sales and earnings forecasts for this year and next as it deals with controversies over its pricing and distribution strategies.
The company issued its revised guidance shortly before beginning a lengthy meeting for investors and analysts at which it was to further discuss its business outlook for 2016 and beyond.
What the oldest stock market index is saying now (Market Watch)
The oldest stock market index has also been one of the weakest.
Ackman tells investors that this year could be his firm's worst ever (Business Insider)
Billionaire hedge fund investor William Ackman, whose funds have suffered double-digit losses this year, on Tuesday told investors that 2015 could be his firm's worst ever, but said clients are generally sticking with him.
"If the year finishes with our portfolio holdings at or around current values, 2015 will be the worst performance year in Pershing Square's history, even worse than 2008 during the financial crisis," Ackman wrote in a 17-page letter that was seen by Reuters.
Here's What 7 Years at Zero Rates Have Looked Like (Bloomberg)
The Federal Reserve is expected to raise interest rates on Wednesday, exactly seven years after the central bank cut them to almost zero in response to the deepest recession in the post-World War II era. As this unprecedented era of easy monetary policy closes, here's a walk through seven years at zero to highlight the obstacles that policy makers navigated to restore labor-market health and enable liftoff.
China weakness drives Prada quarterly profit down 38 percent (Business Insider)
Italian luxury goods maker Prada <1913.HK> reported a 38 percent fall in quarterly profit on Tuesday, hit by slumping sales in Greater China as the country's economic growth slowed.
A weaker Chinese yuan following this summer's devaluation of the currency also discouraged purchases by mainland Chinese tourists in Hong Kong, a traditional shopping hub, in the three months through October.
Ethiopian Growth Clashes With Politics as Oromo Protests Surge (Bloomberg)
Ethiopia’s rapid economic growth needs a burgeoning capital and less dependence on traditional farming. That’s pitting the government against members of its largest ethnic group, more than 50 of whom have allegedly been killed in protests in the past month.
Demonstrations by Oromo residents against a blueprint for the expansion of Addis Ababa have rocked at least 30 towns and prompted more than 500 arrests since Nov. 19, says the Oromo Federalist Congress, an opposition group.
Ruble Level That Shocked Markets Year Ago Now Cause for Relief (Bloomberg)
Exactly 12 months after Russia stepped in to halt the ruble’s collapse as it slumped to record lows, the currency is once again trading near its trough.
Just Back From Maputo, Danske Sees Mozambique Tuna-Bond Solution (Bloomberg)
For all the skepticism about Mozambique’s claim that it can’t meet commitments on $850 million of debt issued by a state-owned fishing company, the biggest bondholder says there is one solution that might be acceptable to investors.
Starbucks UK profit rises, taxes decrease (Business Insider)
The UK division of Starbucks UK <SBUX.O> on Tuesday reported higher profits for the year ending Sept. 27, even as its tax payment to Britain decreased by as much as 28 percent.
The U.S.-listed coffee chain paid 8.1 million pounds ($12.18 million) in tax, down from 11.4 million pounds for the same period last year.
Emerging Stocks Rise as Currencies Hold Gain on Fed Decision Day (Bloomberg)
Emerging-market stocks headed for their biggest two-day advance in three weeks and a rally in developing nation currencies ran out of steam before the Federal Reserve’s interest-rate decision.
Fed Leaves China Only Tough Choices (Bloomberg)
No one will blink if the Fed raises U.S. interest rates 50 basis points today, signaling an end to the cheap-money era. The U.S. central bank has telegraphed its move for months and while pockets of lingering weakness will spur some Fed watchers to challenge the decision, there's little reason to believe such a small move will nudge the world's biggest economy back into recession.
How to Handle Your Finances After a Fed Interest Rate Increase (NY Times)
It’s one of the most anticipated economic events in years. After keeping its interest rate barometer close to zero since December 2008, the Federal Reserve is universally expected to raise rates at the end of its two-day meeting Wednesday afternoon.
UBS Analyst Who Called Mining Stock Slump Sees Rout Deepening (Bloomberg)
David Cassidy, who correctly told investors to shun Australian mining stocks in 2015, says the worst is yet to come for the industry as China's economy decelerates.
U.S. stocks eye gains as interest-rate hike looms (Market Watch)
U.S. stock futures on Wednesday pointed to a higher open, as strategists said the market could cheer the interest-rate hike that’s widely expected this afternoon.
Japan Stocks Rise First Time in Three Days to Join Global Rally (Bloomberg)
Japanese stocks rallied from a two-month low after the yen weakened and global equities jumped following a rebound in oil prices and as investors await the first U.S. interest-rate increase in almost a decade.
Traders Bet European Stocks Will Tiptoe Past Bears After Fed (Bloomberg)
It's turning out to be a painful month for stock investors bracing for a Federal Reserve liftoff just as concerns over global growth intensify. But traders in Europe remain bullish, betting a rebound is on its way.
Asda's grocery share hits nine-year low as Sainsbury's, Lidl and Aldi gain (The Guardian)
Asda’s share of the grocery market has hit a nine-year low as the pace of supermarket discounting stepped up ahead of Christmas.
Sales declined at Tesco, Asda and Morrisons in the three months to 6 December, according to the latest figures from data company Kantar Worldpanel, as the supermarkets geared up for the biggest trading period of the year.
Politics
Nine Republicans Debate One Issue, and No One Makes a Mark (Bloomberg View)
In a new wrinkle on CNN on Tuesday, Republicans in Las Vegas were asked to debate basically one issue — terrorism. If you were hoping to see candidates well versed in foreign policy and national security, the results were … not encouraging. There was a little substance, along with a whole lot of mush.
Hillary Clinton’s chances boosted by the Paris climate accord (Market Watch)
Saturday’s climate accord may be largely aspirational in that it has few concrete measures to reduce emissions and no enforcement mechanism, but it nonetheless remains an historic achievement that President Barack Obama can legitimately add to his legacy.
And if Obama has at times seemed excessively — some would even say narcissistically — focused on his place in history, he now has a record creditable enough to help the Democrats achieve that difficult hat trick of three successive terms in the White House.
Technology
Are these futuristic high-altitude balloons the brave new world of solar energy? (Quartz)
One way to improve the efficiency of solar panels is to place them where clouds can’t interrupt their energy production. Even in the sunniest parts of the world, clouds can still cause fluctuations in energy output. So what better place to put solar panels than above the clouds?
Health and Life Sciences
Canada's safe injection center brings drug addicts 'out of the alleys' (CNN)
"People need to feel comfortable using."
These are the words of Darwin Fisher, manager of InSite, a supervised injection facility in Vancouver, Canada. Here, Fisher manages 13 booths, each one lined with mirrors and bright bulbs resembling those of a dressing room — and they are in demand.
America's Rural Elderly Face Barriers to Health Care (Medicine Net)
Elderly Americans who live in rural areas are at increased risk for health problems and death because of poor access to health care, a new study finds.
"It's been known for some time that health care is harder to access in rural areas, and this [study] helps us better understand the extent of the problem," study leader Leah Goeres, of Oregon State University, said in a university news release.
Life on the Home Planet
A Park to Sop Up Pollutants Before They Flow Into the Gowanus Canal (NY Times)
At the foot of Second Street in Brooklyn, hard by the Gowanus Canal, is a tiny green space with a very big job.
Aptly called Sponge Park, the 2,100-square-foot plot will, when it opens next spring, intercept thousands of gallons of storm water, along with pollutants like heavy metals and dog waste, before they can enter the canal. The park’s absorbent qualities come from flood-tolerant plantings like asters, Rosa rugosa and sedge grass, as well as a network of sand beds and soils designed to hold water.
Polar bears travel further on ice (BBC)
Polar bears are working harder just to stay in one place, as the Arctic sea-ice on which they hunt drifts away.
US scientists have tracked the animals for nearly 30 years and find they have increased their activity levels.
