Saturday, August 12, 2017

Today's Headlines

  • Signs of Junk Seepage in Biggest Weekly S&P 500 Drop Since March. U.S. equity traders grown accustomed to docile markets were shaken awake as tension over North Korea escalated, sending the S&P 500 to the largest weekly drop since March. Those with an eye on the credit markets probably had an easier time navigating the carnage. A breakdown in high-yield bonds that began five days ago showed up in equities as stocks with the worst credit ratings led losses and balance sheet health separated the winners from losers. Exchange-traded funds tracking large-cap equities and speculative debt fell by nearly identical amounts in the week. Data compiled by Bloomberg showed the division within the S&P 500, where companies with bond ratings below investment grade lost 3.4 percent on average, more than twice the 1.3 percent loss for higher-rated ones.
  • Hammond, Fox Say Transition Won't Be Back Door to Staying in EU. U.K. Chancellor of the Exchequer Philip Hammond and Trade Secretary Liam Fox made a joint declaration that calling for a transition period after Brexit isn’t a way for Britain to stay in the European Union “through the back door,” as they confirmed the U.K. will leave the customs union and the single market.
  • Wales Joins Scotland in Opposing U.K. Government Over Brexit. The Welsh nationalist party accused the U.K. government of being ill-prepared for Brexit as it vowed to fight a landmark bill to take Britain out of the European Union. Ministers either don’t know or won’t say how much departments are spending preparing for leaving the EU, Plaid Cymru said in a statement Sunday. Its Brexit spokesman, Hywel Williams, asked 20 government departments how many staff are working on Brexit. In response, five gave a figure and only three departments were able to estimate the cost of Brexit-related work.
Wall Street Journal:
  • Why I Was Fired by Google(GOOGL). James Damore says his good-faith effort to discuss differences between men and women in tech couldn’t be tolerated in the company’s ‘ideological echo chamber’.
  • Had bullish commentary on (GD) and (MSFT).
  • Had bearish commentary on (NFLX).
Zero Hedge:

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