Wednesday, January 25, 2017

Today's Headlines

Bloomberg:
  • Dow Tops 20,000 as Earnings Feed Rally, Bonds Fall. (video) The index for American blue chips took the round-number milestone after a handful of rallies fell short in the past month. It was the second-fastest 1,000-point trip in its history. European equities jumped the most since Nov. 9, swept up in trades favoring banks and cyclical companies. The yield on 10-year Treasury notes topped 2.50 percent. The Mexican peso slumped after Donald Trump said he plans to unveil actions that include steps toward building a border wall. Oil fell on increased U.S. stockpiles.
  • China Policy Signals Perplex Market as Fidelity Says ‘Confused’. China’s frequent tweaks to monetary policy are puzzling market watchers. In recent weeks, the People’s Bank of China has been using lending tools to both tighten and loosen liquidity as authorities seek to curb leverage while preventing a cash squeeze before the country’s biggest annual holiday starts on Friday. “I’m very confused," Tim Orchard, Fidelity International’s chief investment officer for Asia Pacific excluding Japan, said at a briefing in Hong Kong. "They’re trying to send signals the whole time and trying to micromanage the economy. That looks like a bit of a muddle sometimes when you’re looking at it from the outside.” 
  • Kyle Bass Calls Trump ‘Gasoline’ on Smoldering Fire in China. Hedge fund manager Kyle Bass likened President Donald Trump’s trade and tax policies to gasoline -- hastening an economic restructuring in China while stimulating capital investment and growth in the U.S. China has “recklessly built a system that’s going to need to restructure and that just so happens to be metastasizing right when Trump becomes elected,” Bass told Bloomberg Television’s Erik Schatzker on Wednesday. “This is a fire that’s been smoldering and it’s now starting to burn, and Trump is just more gasoline.”
  • European Stocks Soar as Stoxx 600 Gains 1.3%. (video)
  • Kyle Bass: Border Tax to Pay for Trump’s Tax Cuts. (video
  • Trump Loves Debt, But It Won't Love Him Back.
  • Americans Are Flipping Houses Like It’s 2006. Housing market investors have pushed the share of flips, or properties sold twice in 12 months, to its highest level in a decade.
Wall Street Journal:

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