Financial Markets and Economy
Drug Pricing and Un-American Trading (Bloomberg)
Shkreli, etc.
The system for pricing prescription drugs in the U.S. is a bit of a disaster. Our reliance on medical insurance means that pricing is not based on consumer demand or ability to pay. Nor is it exactly based on negotiations with insurers: "Medicare, one of the biggest buyers of prescription drugs, is prohibited from negotiating drug prices with pharmaceutical companies." The "expensive and time-consuming process of getting F.D.A. approval" to sell generic drugs deters competition and allows approved manufacturers to charge whatever prices they want. These are systemic problems, which were created by legislation and regulation, and which demand legislative solutions.
China's Banks May Be Getting Creative About Hiding Their Losses (Bloomberg)
Chinese lenders are reacting to a regulatory crackdown on shadow financing by increasing activity in their more opaque receivables accounts, a practice Commerzbank AG estimates may result in losses of as much as 1 trillion yuan ($153 billion) over five years.
Trading firm Plus500 grew revenues in 2015 despite a year from hell (Business Insider)
Retail trading platform Plus500 was derailed by the regulator last May after it demanded the company stop everything it was doing in the UK and fix its anti-money laundering checks.
To make things worse, the company went through an abortive merger with Israeli gambling software company Playtech last year too.
A bond star, buried by junk, looks for daylight (Market Watch)
It’s not just that Dan Fuss has seen it all, it’s that he remembers it.
And that will come in handy now, as both high-yield (or junk) bonds and the classic mutual fund that he manages, Loomis Sayles Bond Fund have gotten pounded.
Worst Earnings Letdown Since Crisis Add to Europe Stock Woes (Bloomberg)
Europes earnings season is only half-way through, but so far even stable profit generators are showing signs of capitulation.
Saudi Arabia's oil production freeze is making prices slide (Business Insider)
Rather than signalling the end of low prices, the agreement between Saudi Arabia, Russia, Qatar, and Venezuela to freeze oil production at January levels, has ushered in a new era of sub-$30 oil.
Production from Russia, Qatar, and Venezuela wasn't expected to rise so the agreement didn't change much.
It would've been a more effective agreement if Iran and Iraq agreed to the freeze.
Global Stocks Lifted by Oil Rally (Wall Street Journal)
Global stocks mostly gained Wednesday, spurred by rising oil prices and a two-session rally on Wall Street.
Futures pointed to a 0.7% opening gain for the S&P 500. Changes in futures don’t necessarily reflect market moves after the opening bell.
What the curiously strong Dow Transports say about stocks (Market Watch)
One of the most bullish sub-surface developments in the stock market is the surprising strength of the Dow Jones Transportation Average.
Iron Ore Rally Presents Chance to Short Rio, BHP, Liberum Says (Bloomberg)
Iron ore’s recent gains may prove to be unsustainable and there’s now a fresh opportunity for investors to bet on losses in miners’ shares, according to Liberum Capital Ltd., which listed Rio Tinto Group and BHP Billiton Ltd. among candidates for selling short.
The Wrongheaded Belief That Every Business Should Scale Up (The Atlantic)
Devotees of Stumptown Coffee, a high-end roastery with fewer than 10 total locations in four select cities, pride themselves on avoiding mainstream coffee chains. What they are probably oblivious to, however, as they sip their mochas and cold brews, is that their haven of individuality may soon be just another chain in the Phoenix airport. What they might suspect even less is that the story of microfinance in Bangladesh may foretell the fate of their preferred coffee shop.
Volkswagen Brand Sales Fell 3.8 Percent in January (NY Times)
The marquee Volkswagen brand was hit in January by its biggest decline in European sales since the German carmaker was engulfed in a diesel emissions scandal last year, according to industry data released Tuesday.
With recession lights amber, brittle markets vulnerable to all shocks (Business Insider)
Financial markets that predicted eight of the last six recessions may be yet be wrong again, but market stress itself is now part of the calculus and leaves the world more open to left-field shocks.
Given the violence of this year's slump in equities, where more than $8 trillion has been wiped off global stock market values, it is remarkable how few economists still see recession as the most likely outcome.
Strategist for $1.7 Trillion in Funds Says Rout Has Room to Run (Bloomberg)
Dont be fooled into thinking the rebound in stocks means weve reached the bottom, says Marcella Chow, who watches the worlds markets for JPMorgan Asset Management Inc.
Dollar weakens against yen, rivals as investors turn skeptical about oil deal (Market Watch)
The yen strengthened slightly against its rivals in mixed Asia trade Wednesday, as a bout of early-afternoon selling on Tokyo stocks boosted safe-haven demand for the Japanese currency.
The U.S. dollar was at ¥113.88 yen, after touching a high of ¥114.40 earlier in the session. That compared with ¥113.96 late Tuesday in New York.
S&P Futures Storm Above 1900, Europe Jumps Despite Gloomy Asian Session (Zero Hedge)
It has been a morning session of two halves.
U.S. Index Futures Signal Equities to Extend Gains for Third Day (Bloomberg)
U.S. index futures advanced, signaling equities will extend gains into a third day, on growing speculation that the recent selloff was overdone.
Asian stocks fall as markets take wait-and-see attitude toward oil freeze (Market Watch)
A global rally in shares petered out in Asia Wednesday, with most major stock indexes in the region slipping after an agreement on oil-output restrictions fell flat.
The Nikkei Stock Average fell 1.4%, to 15,836.36, following a 7.4% combined rise Monday and Tuesday. The Hang Seng Index fell 1%, while Australia’s S&P/ASX 200 was down 0.6%. South Korea’s Kospi slipped 0.2%.
Congress Is Wary of Chinese Deal for Chicago Stock Exchange (Bloomberg View)
Dozens of members of Congress plan to ask the Obama administration to review the planned acquisition of the Chicago Stock Exchange by a Chinese firm, to assess whether it poses a national security risk or a risk to the companies traded on the exchange.
The Chicago Stock Exchange announced this month that it would be sold to a consortium led by the Chongqing Casin Investment Group of China, a move that would inject needed resources into the exchange and give the Chinese firm a foothold in the $22 trillion U.S. equities marketplace.
After the Gold Rush, FunPlus is starting a $50M mobile game investment fund (Venture Beat)
The mobile gaming startup Gold Rush has ended, and many investors have moved on to virtual reality, augmented reality, and esports deals. But don’t tell FunPlus that. The Chinese mobile game company is starting a $50 million fund to invest in mobile game startups.
Politics
Apple Opposes Order to Unlock San Bernardino Shooter's iPhone (Bloomberg)
Apple Inc. rejected a court order to help U.S. investigators unlock an iPhone used by one of the shooters in a terrorist attack in California, setting up a pivotal confrontation with the government over the sanctity of personal information.
Sanders, Trump winning by rejecting party labels (Market Watch)
The runaway winners of the New Hampshire primaries, Donald Trump and Bernie Sanders, are pushing the country into what looks like a post-label phase in politics.
Neither of these winners really belongs to the party whose nomination they are seeking — Trump was a registered Democrat for much of his adult life while Sanders was an independent because he found the Democrats too compromised.
Technology
Google Ideas Think Tank To Become Tech Incubator Called Jigsaw (Fast Company)
Google Ideas is transitioning into Jigsaw, a tech incubator that will use technology to solve geopolitical challenges.
Google Ideas, a think tank started by Google in 2010, is morphing into Jigsaw, a tech incubator that will take on geopolitical challenges. The new name appears to follow the same format as other Google offshoots under the Alphabet umbrella, like Verily (formerly Google Life Sciences) and X (previously known as Google X).
This Flexible Prototype Is a Glimpse at Your Future Phone (Gizmodo)
The sci-fi dream of flexible electronics is on its way—it’s just taking a while to arrive. But this new prototype flexible smartphone, that responds to the way it’s bent and twisted, at least hints at how your future phone may behave.
Health and Life Sciences
Cancer Patients Who Miss Radiation Treatments at High Risk for Relapse (Medicine Net Daily)
Cancer patients who miss two or more radiation treatment sessions are at increased risk for a return of their cancer, a new study finds.
The study included more than 1,200 patients who had radiation therapy for head and neck, breast, lung, cervical, uterine or rectal cancer between 2007 and 2012. Of those patients, 22 percent missed two or more scheduled radiation treatment appointments.
Which Type of Exercise Is Best for the Brain? (NY Times)
Some forms of exercise may be much more effective than others at bulking up the brain, according to a remarkable new study in rats. For the first time, scientists compared head-to-head the neurological impacts of different types of exercise: running, weight training and high-intensity interval training. The surprising results suggest that going hard may not be the best option for long-term brain health.
Life on the Home Planet
Free Haircuts For The Homeless: ‘It Makes Me Feel Human Again’ (Think Progress)
When Mandie Barnes gets a good idea, she goes after it. About eight years ago, the 27-year-old quit a full-time job in public relations to pursue her passion in hair styling. “I seriously love what I do,” she said of her choice.
