Financial Markets and Economy
Saudi Arabia, Russia to Freeze Oil Output Near Record Levels (Bloomberg)
Saudi Arabia and Russia agreed to freeze oil output at near-record levels, the first coordinated move by the world’s two largest producers to counter a slump that has pummeled economies, markets and companies.
This has been the worst quarter for company earnings reports since 2009 (Market Watch)
The fourth-quarter earnings season, currently wrapping up, is shaping up as the worst quarter for earnings growth since the financial crisis, Bank of America analysts said Tuesday.
Goldman Sachs: More and More People Who Use Airbnb Don't Want to Go Back to Hotels (Bloomberg)
Airbnb is less than eight years old, but it has already caused massive changes in the way people travel. While consumers may have initially been hesitant to try the service, a new survey from Goldman Sachs Group Inc. shows that once they switch, they don't go back to hotels.
Tiger Global has made a $1 billion bet on Apple (Business Insider)
Tiger Global's public equity business, run by Scott Shleifer, initiated a new position in Apple during the fourth quarter, according to the fund's latest 13F filing.
During the fourth quarter, Tiger Global bought 10.6 million shares of the tech giant's stock, a position valued at more than $1.1 billion on December 31, 2015.
Priorities in a time of plenty (Asymco)
How Apple is managed is one of its enduring mysteries. The idea that a company with $235 billion in sales is managed with a single P/L is fascinating in many ways.
China Turns on Taps and Loosens Screws in Bid to Support Growth (Bloomberg)
China is stepping up support for the economy by ramping up spending and considering new measures to boost bank lending.
Yahoo Finance will live-stream Warren Buffett's epic annual meeting this year (Business Insider)
It's official: Yahoo Finance will live-stream Warren Buffett's epic Berkshire Hathaway annual meeting.
On April 30, Yahoo will stream the famous Q&A Buffett and Berkshire's vice chairman Charlie Munger host with shareholders that last year lasted seven hours.
The stock market is still expensive (Business Insider)
With stocks selling off, bullish market watchers have pointed out that it may be time to buy the dip as stocks get cheaper.
The Next Big Idea in Economic Growth (Bloomberg View)
This presidential election has driven home a problem that others have been noticing the last few years: The U.S. seems to be out of ideas for economic growth. The main argument appears to be over redistribution — tax rates, the size of the welfare state, free college. Protectionism is also making a comeback; Bernie Sanders would restrict trade and punish Wall Street, while Republican candidates would curb immigration. These are mostly debates about the size of the pie. But what about growing it?
Why Bear Markets Are So Painful (A Wealth of Common Sense)
As in the previous experiment, the subjects had only two investment options, a riskier one with higher returns and a safer one with lower returns. In this case, what we varied was how often the subjects got to look at the results of their decisions. Some subjects saw their results eight times per simulated calendar year of results, while others only saw their results once a year or once every five years.
Buy Twitter And Short The Rest Of Social Media (All Star Charts)
Twitter has been a disaster of a stock for the majority of its time as a public company, but recent price action suggests a tradable bottom may be in on an absolute and relative basis.
Groupon stock is up more than 40% on the news Alibaba purchased 33 million shares (Business Insider)
Groupon stock is skyrocketing again, this time spiking more than 40% following the news that Chinese e-commerce giant Alibaba purchased a 5.6% stake in the online deals company.
Hedge Fund Manager Puts Profile on Social Media, Lures $20 Million (Bloomberg)
Joshua Young started his hedge fund less than a year ago. Last month, he caught a break when a university endowment handed him $20 million, quintupling his assets under management.
Why Wall Street Is Embracing the Blockchain—Its Biggest Threat (Wired)
Overstock.com and its free-thinking CEO, Patrick Byrne, announced that the Securities and Exchange Commission had approved its plan to issue stock over the blockchain, the vast online ledger that drives the bitcoin digital currency.
Hedge Funds in Asia Had Nowhere to Hide in January Bloodbath (Bloomberg)
Hedge funds in Asia, who navigated turbulent markets to post gains in 2015, had nowhere to hide in January.
The Cost Matters Hypothesis (Morning Star)
While markets’ efficiency will be forever questioned, there is no question that the costs we incur in investing deduct directly from our returns–it’s simple subtraction.
Why Is It So Hard To Believe That I Don’t Care About the Price of Gold? (Alpha Trends)
I am a trader. I trade individual stocks based in the United States and exchange traded funds of US equity indexes. I have traded US equities since 1991, it is my area of interest and expertise. That is what works for me. I have never told anyone else what they should be interested in or what they should trade, it is simply none of my business.
Corporate Bond Deals Take Off With Apple and IBM Tapping Market (Bloomberg)
Apple Inc., International Business Machines Corp. and Toyota Motor Corp. are leading a resurgence in U.S. corporate bond offerings Tuesday following a week where debt issuance was frozen amid concerns about the health of the global economy.
Politics
Pity the Republicans (Bloomberg View)
Republicans insist on strictly following the Constitution. Just not right now. Now is special, they say. Now is not the time to resort to a nitpicky document drawn up by bewigged ancients.
No, for Republicans, the only sensible course now is to be governed by norms — those long-established byways that govern the behavior of esteemed institutions such as the U.S. Senate without having been written into the Constitution or Senate rules.
Ted Cruz's Hugely Expensive Plan for a Huge Military (The Atlantic)
If it’s the South Carolina Republican primary, it’s time to talk about the military, which is why Ted Cruz was on the USS Yorktown Tuesday, campaigning with Rick Perry and laying out his plans.
The Palmetto State has a high proportion of veterans and military families, especially compared to other states, making it a natural place to talk defense. During a rally on Tuesday, for example, Jeb Bush emphasized military readiness and reforming the Department of Veterans Affairs. But for Cruz, the issue is more pressing, because he’s already facing attacks for some of his votes on national security.
Technology
The Future Of How You Watch TV Could Change This Week (Fast Company)
Behind an FCC proposal to lower cable equipment fees is a fight for control of television involving Google, pay-TV services, and Hollywood.
Cable and satellite TV companies are not popular, consistently ranking near the bottom of customer satisfaction studies. One of the reasons is that Americans spend nearly $20 billion per year to rent set-top boxes from pay-TV providers, according to a recent Senate report. So when a proposal to open up competition against the oft-reviled set-top boxes was issued by FCC Chairman Tom Wheeler on January 27, the cable providers didn't receive many sympathy notes.
The future of virtual reality includes exciting possibilities for education (Quartz)
On the first day of the weeklong TED conference, a long queue formed outside The VOID. The Utah-based start-up is giving attendees a preview of its brick-and-mortar “virtual entertainment centers” that will open in several cities worldwide later this year. Donning vests equipped with body sensors and sophisticated head gear, eager (and in come cases, trepidatious) testers entered a video game universe and snaked through tombs, narrowly avoided a sea serpent, and cracked puzzles left and right a la Lara Croft.
Health and Life Sciences
No, Human Embryos Won't Be Genetically Modified To Create Designer Babies (Forbes)
Scientists recently got the go-ahead to edit genes in embryos, after permission was granted by the UK Human Fertilisation and Embryology Authority.
Exercise may protect the liver from booze (Futurity)
Over time, excessive drinking can lead to several chronic conditions, such as fatty liver disease and cirrhosis. But there’s new evidence that aerobic exercise may protect the liver.
“Excessive alcohol consumption is one of the most common causes of chronic liver failure,” says Jamal Ibdah, professor of medicine and chair in cancer research at the University of Missouri School of Medicine.
Life on the Home Planet
A Rich Old Dude Surfer Gang is Terrorizing a Los Angeles Beach (LA Curbed)
As those who've seen Point Break (or who are actual surfers) might know, surfing is not all "shaka, bro" and hanging loose. Often, there is a strong locals-only sentiment at the spots with the best waves. Down at Lunada Bay in Palos Verdes Estates, a group of super-scary, business-hardened, "affluent, mostly middle-age men" are keeping the waters free of outsiders by being dicks to non-regulars, the LA Times reports. Their disdain for outsiders extends beyond surfers; even fishermen get worried about dropping their lines in the water.
