Financial Markets and Economy
China’s Stocks Rebound to Pare Worst Monthly Rout Since 2008 (Bloomberg)
China’s stocks rose for the first time in four days amid speculation the steepest monthly rout since the global financial crisis was overdone.
Microsoft Profit and Revenue Fall, but Cloud Computing Grows (NY Times)
Satya Nadella has put cloud computing at the center of Microsoft’s strategy. It is a move that looks to be paying off, at least in the eyes of investors.
On Thursday the company said its revenue and profit fell in the last quarter. But it mattered little, as Microsoft made more from cloud computing, and its stock jumped more than 5 percent immediately after the numbers were released.
Asia stocks cautious as oil bounces, BOJ awaited (Business Insider)
Asian shares got off to a tentative start on Friday after oil cobbled together a third session of gains and markets wagered U.S. interest rates would not be rising much this year, if at all.
Speculation is also rife the Bank of Japan will have to add yet more stimulus, though many doubt it will come at Friday's first policy meeting of the year.
Yen Bulls Take Cover as BNP's 50% Odds of BOJ Move Spur Caution (Bloomberg)
The yen’s biggest two-month gain since 2012 versus the dollar has made traders cautious of driving further strength before a Bank of Japan decision Friday.
U.S. stocks closed higher Thursday, as a rise in oil and gains in Facebook outweighed pressure from declines in biotech stocks and concerns about economic growth.
The major averages ended off session highs but recovered from an intraday dip into negative territory.
The Search for New Love in Hedge Funds (Bloomberg View)
I am fascinated by what I have been calling the hedge fund paradox: For ages, all but the top funds have lagged behind benchmarks for one-, five- and 10-year holding periods. Despite this, many of these funds continue to attract a torrent of money.
Why is it that in the face of underperformance, investors still seem to love hedge funds?
U.S. Gas Bears Beat Groundhog Day in Calling for End of Winter (Bloomberg)
U.S. natural gas bears aren’t waiting for Punxsutawney Phil, the famed Pennsylvania groundhog, to make a prognostication next week on whether the weather is changing: They say winter is over.
Housing, Employment & Chemical Index Point to Continued Expansion (Value Pays)
In spite of wide spread fear that the global economy is collapsing, a majority of forecasts that recession is upon us and that markets will fall to as low as 5,000 (Dow Jones forecast by some), the US economy reflects nothing but expansion. Multiple reports the past 10days support the view that economic expansion is alive and well.
China pumps cash injection to record high (Market Watch)
China’s central bank pumped an additional 100 billion yuan ($15.21 billion) into the financial system via an extra money-market operation Friday, pushing this week’s net cash injection to a record 690 billion yuan.
The People’s Bank of China added the funds through the same short-term loans to banks that it offered both Tuesday and Thursday, the fixed days of its weekly liquidity exercise.
Fed to Return Rates to Zero With U.S. in Recession: James Grant (Bloomberg)
The U.S. Federal Reserve will be forced to return lending rates to zero after erring in boosting borrowing costs amid a probable recession, said James Grant, editor of Grant’s Interest Rate Observer.
Here's exactly how Google's parent company will report its first broken-up earnings (Business Insider)
Next Monday, Google parent-company Alphabet will break up its earnings for the first time into two categories: "Google" and "Other Bets."
When Systematic Trading Comes to Credit Markets (Bloomberg)
A profound trend in credit markets has been borne out by the results of Citigroup Inc.'s latest survey of credit derivatives, with investors expressing continually growing interest in derivatives tied to corporate bonds.
Microsoft reports 10.1 percent fall in quarterly revenue (Business Insider)
Microsoft Corp reported a 10.1 percent fall in quarterly revenue on Thursday, squeezed by a strong dollar as well as a weak personal computer market that has reduced demand for the company's Windows operating system.
The company's net income fell to $5.00 billion, or 62 cents per share, in its second-quarter ended Dec. 31 from $5.86 billion, or 71 cents per share, a year earlier.
S&P 1,500 Short Interest Is at Its Highest Level in Three Years (Bloomberg)
Little love for stocks.
Amazon's cloud juggernaut earned almost $2 billion last year (Business Insider)
Amazon's cloud computing business, Amazon Web Services, earned $1.86 billion on $7.88 billion in revenue last year.
Economy Teetered on Brink Last Quarter as U.S. Factories Slumped (Bloomberg)
The already severe U.S. manufacturing slump ended 2015 with a thud, raising the odds the world’s largest economy stalled.
Traders haven't bet against stocks this aggressively since 2010 (Business Insider)
Investors are loading up their short bets against the S&P 500.
The Return of the Currency Crash (Project Syndicate)
Excluding the mayhem associated with the global financial crisis of late 2008 and early 2009, currency crashes were few and far between from 2004 to 2014. But recent developments suggest that the dearth of currency crashes during that decade may be remembered as the exception that proves the rule.
Politics
Clinton Quietly Building Her Own National Security Council (Bloomberg View)
Behind the scenes, the Hillary Clinton presidential campaign is building a foreign policy and national security advisory structure that is meant to help her win the presidency. And among this large group, the jockeying for jobs in her potential administration is already well underway.
Team Hillary is in the process of setting up formal advisory teams and working groups divided into regional and thematic subjects, similar to the structure of the National Security Council, several participants in the project told me. Unlike in 2008, when Clinton and Barack Obama competed for advisers, this time around all the Democratic foreign-policy types are flocking to her team because Clinton is the only game in town.
Why Is Jim Gilmore Even Running for President? (The Atlantic)
After being sidelined from nearly every single Republican primary debate so far, Jim Gilmore will finally get the chance to take the stage on Thursday night.
The former Virginia governor and long-shot presidential hopeful will participate in the decidedly less prestigious undercard debate hosted by Fox News.
Technology
Design is settled for Ariane 6 (BBC)
The design for Europe's new Ariane 6 rocket has been settled and development will now move on apace, say officials.
The launcher is due to be introduced in 2020 and long-term will replace the Ariane 5 and Soyuz vehicles that currently operate out of French Guiana.
Health and Life Sciences
A Single Cell Shines New Light on How Cancers Develop (NY Times)
It was just a tiny speck, a single cell that researchers had marked with a fluorescent green dye. But it was the very first cell of what would grow to be a melanoma, the deadliest form of skin cancer. Never before had researchers captured a cancer so early.
The cell was not a cancer yet. But its state was surprising: It was a cell that had reverted to an embryonic form, when it could have developed into any cell type. As it began to divide, cancer genes took over and the single primitive cell barreled forward into a massive tumor.
Genetic test quickly profiles brain tumors (Futurity)
A new gene sequencing test could help doctors decide how to treat brain tumors.
“The diagnosis of brain tumors has been based primarily on cellular features seen under the microscope,” says Marina Nikiforova, professor of pathology at the University of Pittsburgh. “However, patients with tumors that look identical may experience different clinical outcomes and responses to treatment because the underlying genetic characteristics of their tumors differ.
Life on the Home Planet
Call to allow abortions in Zika cases (BBC)
A Brazilian group of lawyers, activists and scientists is to ask the country's supreme court to allow abortions for women with the Zika virus.
Zika, a form of microcephaly, is linked to brain defects in unborn children.
