Evening Headlines
Bloomberg:
- East Asia’s Foreign Ministers Hold Talks Amid Regional Tensions. The foreign ministers of Japan, China and South Korea will have plenty to discuss when they sit Wednesday morning in Tokyo for their first formal talks in five years. Japan’s Fumio Kishida hosted an informal dinner Tuesday evening for South Korea’s Yun Byung Se and Wang Yi of China, with the Asahi newspaper reporting that Kishida and Wang spoke informally for about an hour after the meal. Japan will hold bilateral meetings with both countries Wednesday afternoon. The talks come amid a plethora of tensions in East Asia:
- China’s Moment in the G-20 Sun Overshadowed by What Lies Beneath. Chinese President Xi Jinping may feel a bit smug when he hosts global leaders at next month’s Group of 20 summit. The heralded hard landing of the world’s number two economy hasn’t materialized --instead many Western nations are facing economic and political upheaval. Surging nationalism, terrorism threats, social unrest and Europe’s biggest migration crisis since World War II are shaking governments around the world. "This is uneasy calm, somewhat artificial," said Dali Yang, a political science professor and director of the University of Chicago Center in Beijing. "It is certainly not a moment to be boastful."
- The Dot-Com Deadpool is Back. India is now seeing venture investments slide after surging to a record $8.9 billion in 2015, according to the research firm Preqin. The pace dropped to $2.7 billion in the first two quarters, the London firm said. The boom pushed the number of technology-enabled startups in India to more than 19,000, according to the Ministry of Finance’s Economic Survey published in February. The Deadpool list shows that, besides the innovative players, there are scores of copycat companies, especially in e-commerce and other categories favored by venture capitalists. “You can’t be the 50th online laundry operation and hope for success,” said Ravi Gururaj, founder of QikPod, a Bangalore-based parcel locker startup backed by Accel Partners and Foxconn Technology Group.
- Asian Stocks Rise on U.S. Rate Bets as Japanese Shares Advance. Asian stocks climbed, led by shares in Tokyo, on speculation the Federal Reserve won’t rush to raise interest rates amid mixed data in the world’s largest economy. The MSCI Asia Pacific Index rose 0.1 percent to 139.34 as of 9:07 a.m. in Tokyo. Japan’s Topix index increased 0.7 percent as the yen traded at 100.34 against the U.S. dollar. The S&P 500 Index closed near a record high as reports showing a surge in American new home sales and a slowdown in manufacturing brought into question the hawkish tone of recent comments from Fed officials. There’s a 28 percent chance of a rate hike in September, according to data compiled by Bloomberg based on Fed fund futures.
- Solar industry braces as looming glut threatens to erode prices. Solar manufacturers that are ramping up production now face a looming glut of panels, forcing companies to adjust or face dire consequences. Trina Solar Ltd, Canadian Solar Inc and JinkoSolar Holding Co are among the suppliers boosting output at factories that will expand global capacity by 18 per cent this year, according to Bloomberg New Energy Finance. The manufacturers are locked in a race to build bigger and more advanced factories to crank out panels faster and cheaper.
- The World’s Top Performing Hedge Fund Is Shorting Big Dividends. The world’s top performing hedge fund is shorting companies that are juicing their valuations by promising investors big dividends.
- Fed Bets: Making the Case for a December Hike. (video)
Wall Street Journal:
- U.S. Eyes Aiding Turkish-Backed Rebels Against Islamic State in Syria. Turkey reasserts its role in wake of recent coup attempt, deadly wedding bombing. The U.S. is considering providing military support for hundreds of Turkish-backed rebels massing at the border with Syria for a major offensive meant to sever Islamic State’s supply routes there, officials from both countries said. Turkish artillery units have been pounding Islamic State forces holding a strategic border town in Syria for two days ahead of the looming fight as the military—shaken by last month’s thwarted...
- Four Charts to Scare the Stock Market Bulls. Bank of America Merrill Lynch is 'exploring the dark side' of the recent run up in the stock market.
- Graduate Students Can Unionize at Private Colleges, U.S. Labor Panel Rules. Decision grants collective bargaining rights to tens of thousands across the nation.
- Teamsters on the Quad. Obama’s labor board addresses inequality in the faculty lounge.
Fox News:
- Fence rises along border town, but skeptical residents say manpower keeps them safe. (video) Residents of this dusty hamlet are skeptical that an ongoing effort to replace 1.4 miles of chain link fencing with an imposing steel curtain -- much less the the ambitious border wall Donald Trump has vowed to build -- will stem the tide of illegal immigrants they find under their trailers, in their backyards or wandering through town.
CNBC:
- These charts are flashing recession signals. (graph)
- SolarCity(SCTY), Tesla(TSLA) shares drop after announcement. Shares of Tesla Motors and SolarCity gave up ground Tuesday afternoon following Tesla's announcement of new electric vehicle models.
Zero Hedge:
Night Trading
Earnings of Note
Company/Estimate
9:00 am
- FBI Reports Linking Hillary To Vince Foster "Suicide" Disappear From National Archives.
- Soros Emerges As Mastermind Behind Plan To "Enlarge Electorate By At Least 10 Million Voters".
- Chicago Violent Crime Spreading To The "Safe" North Side Neighborhoods.
- Illinois Warns Of "Crippling Tax Hikes", "Devastating Impact" If Largest Pension Fund Admits Reality.
- Something "Unexpected" Happened When Seattle Raised The Minimum Wage.
- Over Half Of Hillary's Private Meetings As Secretary Were With Donors Who Paid $156 Million.
- How The Fed's Facebook PR Campaign Went Terribly Wrong.
- "In Preparation For Crisis" Germany Considers Bringing Back Military Service.
- EU President: "Borders Are The Worst Invention Ever Made By Politicians".
- WTI Slides After Biggest Inventory Build In 4 Months. (graph)
- Stocks Spike To Record Highs, Close Not "Off The Lows". (graph)
- North Korea launches a submarine-based ballistic missile.
- Companies keep using this trick to make their earnings look better.
- 'Dow Theory' is sending a warning sign.
Financial Times:
Telegraph:- Big banks plan to coin new digital currency. Group of major lenders seeks industry standard for settlements.
Night Trading
- Asian equity indices are -.50% to +.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 111.50 -.5 basis point.
- Asia Pacific Sovereign CDS Index 41.50 -1.0 basis point.
- Bloomberg Emerging Markets Currency Index 73.04 -.04%.
- S&P 500 futures -.03%.
- NASDAQ 100 futures -.06%.
Earnings of Note
Company/Estimate
- (RY)/1.70
- (GES)/.07
- (HPQ)/.45
- (PVH)/1.29
- (WSM)/.58
- (WDAY)/-.02
9:00 am
- The 2Q House Price Purchase Index.
- The FHFA House Price Index MoM for June is estimated to rise +.3% versus a +.2% gain in May.
- Existing Home Sales for July are estimated to fall to 5.51M versus 5.57M in June.
- Bloomberg consensus
estimates call for a weekly crude oil inventory decline of -495,000
barrels versus a -2,508,000 barrel decline the prior week. Gasoline
supplies are estimated to fall by -1,340,000 barrels versus a -2,724,000
barrel decline the prior week. Distillate inventories are estimated to rise by +130,000 barrels versus a +1,939,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to fall by -.58% versus a +1.3% gain prior.
- None of note
- The German GDP report, weekly MBA Mortgage Applications report and the (TSLA) product announcement could also impact trading today.
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