Thursday, November 10, 2016

Today's Headlines

  • Dow Average Rallies to Record as Treasuries Slide on Trump Bets. (video) Donald Trump’s unlikely rise to power is providing a shot in the arm for global financial markets, with stocks and metals rallying on optimism that his fiscal-stimulus plans will boost the economy. Bonds tumbled. The MSCI All Country World Index erased its monthly drop and the Dow Jones Industrial Average climbed to a record high. Copper posted its biggest back-to-back surge in three years, gaining alongside lead, zinc and aluminum. The dollar rose against most peers, while government bonds extended their selloff as Trump’s win bolstered bets on faster inflation. Latin American assets from stocks to debt and currencies plunged on speculation that higher U.S. interest rates would damp the appeal of riskier emerging-market securities.
  • Trump's Win May Be Asia's Loss. (video) Just when China's economy seemed to be stabilizing, Donald Trump's election as U.S. president poses significant new risks. Not just for Chinese growth, but the entire Asia region. That's because the president-elect campaigned on a policy platform with protectionism at its center. Trump wants to slap punitive tariffs on Chinese goods and label the world's No. 2 economy a currency manipulator. Such a move would hurt Chinese exports. But it could also trigger a trade war if Beijing retaliates, catching other Asian economies in the crossfire.
  • London’s Property Market Is ‘Tanking,’ Green’s Vernon Says. London’s real estate market, hurt by the Brexit vote, is “tanking by the day,” Green Property Chairman Stephen Vernon said. The firm, which has closed its London office, is waiting for an opportunity to buy into the market at lower values, the 66-year-old said at a conference in Dublin. Vernon would consider buying a real estate company, raising a fund or buying a portfolio of assets in London, he said. 
  • Italian, French Bonds Feel Pain in Europe as Rout Spreads: Chart.
  • Trump’s Win Boosts Europe Banks as Broader Market Erases Advance. (video) European lenders got a second-day boost after Donald Trump’s presidential win on speculation his term will lead to increased inflation and an easing of financial rules. UBS Group AG and Credit Suisse Group AG, which get more than 35 percent of their revenues from the Americas, helped lead the rally that pushed Europe’s banks to their best four-day jump since July. The biggest Swiss lender surged the most since 2011, while Credit Suisse climbed 4.9 percent. A gauge tracking the industry reached its highest level since March, maintaining gains even as a slump in bond proxies such as utilities an real estate companies dragged the benchmark Stoxx Europe 600 Index lower. While the benchmark Stoxx 600 erased an advance of as much as 1.3 percent to end the day 0.3 percent lower, the Stoxx 600 Banks Index rallied 2.3 percent.
  • Oil Output Surge Puts Pressure on OPEC as IEA Warns on Price. (video) The cost of failing to reach a deal this month is rising for OPEC as rival producers are set to revive production in 2017, the International Energy Agency predicted. Crude prices may retreat again amid “relentless global supply growth” unless the Organization of Petroleum Exporting Countries enacts “significant” output cuts, the IEA said in its monthly report on Thursday. Non-members such as Brazil, Canada, Kazakhstan and Russia will raise output by 500,000 barrels a day in 2017, after enduring their biggest slump in more than two decades, the agency said.
  • Tech Stocks Are Getting Crushed. (video)
Wall Street Journal:
Fox News:
  • Obama, Trump meet at White House, discuss transition of power. (video) President Obama met with Donald Trump at the White House on Thursday -- calling the meeting “excellent” and saying his number one priority was to help facilitate a peaceful transition of power in January. Trump, who said he looks forward to dealing with Obama in the future, called the meeting a “great honor” and said he looked forward to talking with Obama “many, many more times.” “I could have gone a lot longer,” Trump told reporters of the 90-minute meeting. “We discussed a lot of different situations – some wonderful and some difficulties.”

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