Financial Markets and Economy
Asia stocks buffeted by China worries, North Korea nuclear test (Reuters)
Asian shares fell on Wednesday and most emerging currencies retreated as China allowed the yuan to weaken further, stoking fears about its slowing economy, while a North Korean nuclear test heightened geopolitical tensions.
Spreadbetters saw the somber mood spilling over into Europe, predicting a significantly lower open for Britain's FTSE, Germany's DAX and France's CAC.
Go to cash to avoid the crash? Short oil? No, do this instead (Market Watch)
Well, that was a short letup. The new year is back to its ugly ways, after the S&P and Dow managed to end their three-session skid yesterday. This morning, global markets are on a slide.
Currency traders are buying safety plays like the dollar and yen, and they are “worried that the losses at the start of the year foreshadow a deeper correction in the days, weeks and maybe even months to come,” says BK Asset Management’s Kathy Lien in a note.
S&P 500 May Enter Bear Market in 2016 as Swings Grow, UBS Says (Bloomberg)
The going will get tougher for U.S. stocks this year, UBS Group AG says.
5 Things to Watch in the Fed's December Minutes (Wall Street Journal)
The Federal Reserve ended months of feverish speculation Dec. 16 when it announced plans to raise short-term interest rates by a quarter percentage point, bringing an end to seven years of near-zero rates. Markets and economists had widely predicted the move but are eager for clues about happens next. Some may appear Wednesday at 2 p.m. EST when the Fed releases the minutes of the Dec. 15-16 meeting.
Relatively Stable Trading in Stocks a Day After Sell-Offs (NY Times)
United States stocks turned positive toward the end of trade, but the gains weren’t enough to make up for a plunge in markets after China’s main index fell sharply Monday.
Finance executives are starting to worry about the US economy (Business Insider)
According to a report from the American Institute of CPAs, just 45% of CFOs and CEOs felt optimistic about the US economy in the fourth quarter of 2015. That's down from 64% the year before. Executives are particularly worried about China and Europe, regulation, political gridlock, and labor costs. They seem to be "concerned with the ability to hire talent as well as the cost of that talent," Valerie Rainey, chair of AICPA's Business Industry Executive Committee, told The Journal.
Key for gun stocks is whether sales surge is powered by newbies (Market Watch)
Gun stocks fell Wednesday, as an analyst raises doubts about whether the sales surge in the wake of high-profile terrorist attacks and President Barack Obama’s plan to restrict firearms can be maintained.
Apple Suppliers Drop Globally After IPhone Output Cut Report (Bloomberg)
Apple Inc. suppliers from Asia to Europe fell after a report saying the worlds most valuable company would reduce first quarter output of its latest iPhones by about 30 percent.
3 things every young Wall Streeter needs to know going into bonus season (Business Insider)
It is the most wonderful time of year on Wall Street.
That's because it's bonus season!
We spoke with a veteran bank analyst and hedge fund portfolio manager, and he had three rules for young Wall Streeters going through the bonus process.
10 stocks leading the S&P 500’s second big drop of 2016 (Market Watch)
Bad news for Apple and another big slide for oil helped push the S&P 500 Index down as much as 1.5% Wednesday, following a flat day on Tuesday and a 1.5% decline on Monday.
U.S. stock index futures pointed to a sharply lower open on Wednesday, weighed by declines in oil prices, continued concerns about China and fresh geopolitical worries from news out of North Korea.
Dow futures fell 300 points just before 8 a.m., ET, and traded about 280 points lower after morning data reports.
Junk-Bond Pain Seen Ending as Wall Street Predicts 2016 Gains (Bloomberg)
Never mind the rising defaults, the struggling energy industry and the battered mutual funds. Junk bonds are poised to gain after their first annual loss in six years, according to credit analysts at some of Wall Street’s biggest banks.
Chipotle sales crater 30% in December (Business Insider)
In a filing with the SEC on Wednesday, the fast food chain disclosed that for the month of December same-store sales — or sales at locations open for at least a year — were down 30%.
In the fourth quarter same-store sales are now expected to decline 14.6%. The company previously said it expected same-store sales to fall 8%-11% during the quarter.
Gold flirts with best level in about 2 months on global turmoil (Market Watch)
Gold futures marched higher Wednesday and were on track for their best settlement since early November, as global tensions sparked a flight to haven assets.
Wall Street, Techdom and the Hard Truth About Parental Leave (Bloomberg)
Theres never been a better time to have a baby at Facebook Inc. Or at Netflix Inc. Or Credit Suisse Group AG.
U.S. trade deficit narrows as goods imports near five-year low (Business Insider)
The U.S. trade deficit narrowed in November likely as efforts by businesses to reduce an inventory overhang pushed imports of goods to their lowest level in nearly five years, outpacing a drop in exports.
The Commerce Department said on Wednesday the trade gapfell 5.0 percent to $42.4 billion. October's trade deficit was revised up to $44.6 billion from the previously reported $43.9 billion.
American bourbon trail delivers nasty spills, investor thrills (Market Watch)
Each of the 6,000 hand-numbered bottles of Indiana bourbon whiskey named after Greg Metze sells for about $75.
But if you really want to experience the liftoff in American craft-whiskey production, you’d have done well to invest in his employer, MGP Ingredients MGPI, -0.69% , whose shares climbed 64% last year.
Top Dim Sum Arrangers See Sales Drop as Panda Bonds Grab Share (Bloomberg)
The biggest underwriters of Dim Sum bonds are braced for a second year of declining business as the opening up of China's capital markets gives global borrowers access to lower onshore interest rates.
Bubbles really jump out at you when you look at a chart like this one (Business Insider)
It's hard to spot an asset-price bubble, especially if you're in the midst of one. People usually find out they're in a bubble only after it bursts.
First Taste of 2016 Currency Swings Has Traders Hungry for More (Bloomberg)
After the worst annual performance since 2011 for currency managers, exaggerated price swings during the first two trading days of the year have traders on alert.
Stocks are getting slammed (Business Insider)
After a rough day Monday and a flat day Tuesday, US stocks were resuming their slide early Wednesday.
Coutts Challenges Bond Bears as Hedge Funds Bet on 10-Year Notes (Bloomberg)
Coutts & Co., the 300-year-old bank for the wealthy, is challenging the consensus by saying now is not the time to be bearish on Treasuries.
Crude oil dives to an 11-year low (Business Insider)
The price of oil on Wednesday morning plunged to another recent low as global geopolitical tensions grow, the volatility of Chinese markets continues, and the global glut of oil gets even bigger.
Emerging Stocks Sink With Currencies on China as Won Declines (Bloomberg)
Emerging-market currencies fell to a record as growing evidence that China is becoming more tolerant of the yuan’s depreciation unnerved investors. Russia’s ruble tumbled with Saudi Arabian stocks as Brent crude slid below $35 a barrel.
Politics
Bernie Sanders Takes On Wall Street (The Atlantic)
At a moment when Bernie Sanders needs to show that he has broad appeal, the Vermont senator and White House hopeful is sticking to his comfort zone.
Sanders delivered an impassioned speech attacking Wall Street in Manhattan on Tuesday. The address was a virtual call and response of boos, jeers, and spirited applause in response to blistering criticism of corporate power and promises to reform a broken financial system.
Republican presidential nominee could be the guy who isn’t running (Market Watch)
In an election year set to break precedents, it is not impossible that the eventual Republican presidential nominee will be someone who is not even running for the office.
That someone, of course, is Paul Ryan, the Wisconsin congressman recently installed as speaker of the House after running as the party’s vice presidential nominee in 2012.
Ted Cruz Isn't Rand Paul (Bloomberg View)
Marco Rubio is trying to turn Ted Cruz into Rand Paul. So far this effort is failing.
Senator Paul has been portrayed as an isolationist. He says he is actually a realist who merely wants to limit our foreign interventions to those serving the national interest. But the description of him as out of step with most Republicans on foreign policy has stuck.
Technology
Energous's WattUp Is Wireless Charging That Fits In Your Pocket (Fast Company)
A new variant of the startup's technology could help speed truly cable-free gadgets to market.
We're getting closer to a future without wires. During the Consumer Electronics Show in Las Vegas, wireless charging company Energous unveiled a new version of its WattUp wire-free charging technology, with a miniature transmitter that can be used to charge everything from your mobile phone to your fitness tracker wirelessly from wherever you are.
The Endless Mini Is An Affordable Computer For The Developing World (Popular Science)
More than 4 billion people in the world can’t read this article. That’s not necessarily because they can’t read, although illiteracy is an issue affecting nearly 10 percent of the world’s population, but because they don’t have access to a computer. Mark Zuckerberg has been tackling the issue of connectivity with Internet.org, but people still lack affordable hardware.
Health and Life Sciences
Newer Blood Pressure Drugs as Good as Older Ones: Study (Medicine Net Daily)
Newer blood pressure drugs are as safe and effective as older medications, new research suggests.
Scientists at the NYU Langone Medical Center in New York City said their findings settle a longstanding debate about which of two types blood-pressure lowering medications studied are better.
Could acid in aspirin fight Alzheimer’s? (Futurity)
Scientists are taking a closer look at the main breakdown product of aspirin, called salicylic acid, and its potential to treat neurodegenerative diseases, such as Alzheimer’s and Parkinson’s.
Salicylic acid binds to an enzyme called GAPDH, which is believed to play a major role in such diseases. The acid stops the enzyme from from moving into a cell’s nucleus, where it can trigger the cell’s death.
Life on the Home Planet
El Nino Is So Last Year, Here Comes La Nina to Wreak More Havoc (Bloomberg)
As the effects of the most severe El Nino in almost 20 years still reverberate around the world, preparations are already under way for La Nina.
Indonesia is set to distribute water pumps to farmers and assessing its rice stockpiles in anticipation of the weather event materializing in October, Agriculture Minister Amran Sulaiman told reporters in Jakarta on Wednesday.
North Korea says successfully conducts first H-bomb test (Reuters)
North Korea said it successfully tested a miniaturized hydrogen nuclear device on Wednesday, claiming a significant advance in its strike capability and setting off alarm bells in Japan and South Korea.
The test, the fourth time the isolated state has exploded a nuclear device, was ordered by young leader Kim Jong Un and successfully conducted at 10:00 a.m. local time (2030 ET), North Korea's official KCNA news agency said.
