Saturday, November 19, 2016

Today's Headlines

  • Mexico Seeks Trump Talks to Modernize Nafta, Pena Nieto Says. Mexico is willing to hold talks with U.S. President-elect Donald Trump to modernize the North American Free Trade Agreement, President Enrique Pena Nieto said. Mexico will seek dialogue with the U.S. on its trade relationship following comments made by Trump during his campaign, Pena Nieto said. Speaking at the Asia-Pacific Economic Cooperation summit in Lima on Saturday, he defended the deal, saying that for every dollar that Mexico exports, North American materials account for 40 cents. Globalization generates more benefits than harm, he said. “We’re at the stage of prioritizing dialogue as the path through which we may able to establish a new agenda for bilateral relations,” Pena Nieto said. “More than talking about renegotiating Nafta, it’s modernizing Nafta. Let’s modernize Nafta so it becomes a more powerful, modern vehicle.”
  • U.S. Stocks Rise in Week as Trump Rally Slows Amid Dollar Surge. U.S. stocks added to the rally sparked by Donald Trump’s surprise election, rising for a second week on speculation the president-elect will introduce policies that will spark brisker economic growth. The biggest beneficiary has been small caps, with the Russell 2000 Index rallying 11 straight days to cap its longest winning streak since 2003 as the dollar strengthened. The gauge ended the five days higher by 2.6 percent. The S&P 500 Index rose 0.8 percent, with financials again contributing the most to the advance. Technology shares joined the rally after concerns over trade policies faded. The Dow Jones Industrial average edged up for the week after touching a fresh high on Nov. 15. The benchmark for American equity has added 2 percent since president-elect Donald Trump won the U.S. election, led by a surge in financial stocks and shares of industrial companies. While the former added to its rally in the week with a 2.2 percent advance, shares in companies that build bridges and make equipment were little changed. Health-care stocks that rallied 5.8 percent last week pared those gains with a 1.2 percent decline. 
  • Dollar Logs Biggest Rally Versus Yen Since 1988 on Trump Plans. The dollar posted its biggest two-week rally against the yen since 1988 amid bets that Donald Trump’s administration will pursue fiscal stimulus, boosting the U.S. economy and triggering monetary tightening. The greenback touched the strongest level against the yen since May and appreciated the past 10 trading sessions versus the euro, an unprecedented streak. Traders see an interest-rate increase next month by the Federal Reserve as a virtual lock, enhancing the appeal of dollar holdings.
  • Europe’s Bond Traders Await the Calm Before Next Looming Storm. After two weeks of being whipsawed by politics and the outlook for monetary policy, European bonds may be about to get a breather. There’s barely any major economic data from the euro zone next week, and traders are instead focused on Italy’s Dec. 4 referendum on constitutional reform and the European Central Bank’s policy meeting four days later. The Italian vote has the potential to oust Prime Minister Matteo Renzi, while speculation is growing that the ECB will unveil more bond buying to stoke the regional economy.
  • Global Bonds Post Biggest Two-Week Loss in Quarter Century. (video) Bonds around the world had their steepest two-week loss in at least 26 years as President-elect Donald Trump sends inflation expectations surging. The Bloomberg Barclays Global Aggregate Index has fallen 4 percent since Nov. 4. It’s the biggest two-week rout in data going back to 1990. Federal Reserve Chair Janet Yellen contributed to the decline by saying Thursday an interest-rate hike could come “relatively soon.”
  • Iran Optimistic on OPEC Production Cuts After Barkindo Visit. Iranian Oil Minister Bijan Namdar Zanganeh said he’s optimistic that OPEC members will agree to proposed production cuts at a meeting in Vienna later this month. Zanganeh met the group’s secretary-general, Mohammed Barkindo, in Tehran on Saturday to discuss an accord that seeks to reduce output by as much as 1.3 million barrels a day. He described as “promising” information that was relayed to him by Barkindo about finalizing the agreement. “It is highly probable that OPEC members will reach a consensus in the November meeting,” Zanganeh said in comments published by the Iranian Oil Ministry’s Shana news service. “I think OPEC members honor the agreement and would try to put it into action.”
  • Obama Hits the Gas in Race to Regulate Before Trump Takes Reins. At federal agencies across Washington, regulators are rushing to finalize rules before President Barack Obama leaves the White House. Where the administration has issued an average of 2.2 rules per day this year, 10 were pushed out the door on Tuesday and Wednesday, according to a count by the American Action Forum. "We’re running -- not walking -- through the finish line of President Obama’s presidency," U.S. Environmental Protection Agency Administrator Gina McCarthy said to agency staff in a post-election e-mail.
Wall Street Journal: 
  • Had bullish commentary on (KMX), (SAVE) and (ATRO).
Zero Hedge:

No comments: