Evening Headlines
Bloomberg:
Bloomberg:
- First Word Asia: Why China's Economy Will Remain Weak for Some Time. (video)
- China's Hippest Smartphone Maker Warns Shakeout Will Get Worse. The co-founder of one of China’s hottest smartphone makers says a shakeout in the industry is going to get worse before it gets better as dozens of companies with similar products battle for market share and Apple Inc. collects virtually all the profits in the business. “We’re going to have to survive the next few cycles,” Carl Pei, the co-founder of OnePlus, said in an interview. “A lot of pure plays will disappear and big companies will withdraw from the phone market.”
- Asian Stocks Decline as Jump in Yen Weighs on Japanese Exporters. Asian stocks fell, with the benchmark index set to extend a two-month low, as the yen’s biggest gain in three months weighed on Japanese exporters and health-care shares declined. The MSCI Asia Pacific Index slid 0.3 percent to 129.67 as of 9:01 a.m. in Tokyo, poised for its lowest close since Oct. 6, as health-care and consumer shares led losses. Japan’s Topix index dropped 0.8 percent after the yen jumped 1.2 percent against the dollar on Wednesday, the most since Sept. 1.
- Iron Ore Sinks in a Sea of Oversupply. (video)
- No One Knows How Messy the Fed Increase Could Get. The greatest monetary-easing cycle in the history of the U.S. has left a mind-boggling amount of cash floating around in the economy. Banks hold $2.5 trillion in excess reserves -- money they essentially don’t know what to do with -- at the Federal Reserve. So as the Fed prepares to raise interest rates from near zero as soon as next week, bond investors are on edge. Beyond all the "is-this-the-right-move" questions that surround every increase, there’s a logistical concern: With so much cash sloshing around, will Fed officials be able to nudge rates as high as they want? Will the new-fangled tools they’ve created to engineer the move work, or instead sow the kind of confusion that can dent the Fed’s credibility and spur a broader market selloff? Many investors are taking no chances.
- Wall Street Is Pricing Pipeline MLPs Like Half Will Cut Payouts. (video) Investors expect half the partnerships that control most U.S. oil and gas infrastructure to reduce distributions after America’s largest pipeline company cut its dividend by 74 percent. Traders have dragged the shares of pipeline master-limited partnerships so far down that half of them have a yield, the annual payout divided by stock price, of 10 percent to 51 percent, according to data compiled by Bloomberg. Any yield above 9 percent implies that buyers expect a cut, said Rob Thummel, who manages about $15 billion of energy securities at Tortoise Capital Advisors LLC in Leawood, Kansas.
- Republicans Offer Puerto Rico a Helping Hand for the First Time. Republicans in the U.S. Congress are proposing their first measures to help Puerto Rico as it runs out of cash, responding to calls from the island’s government and the Obama administration. Representative Sean Duffy of Wisconsin, who sits on the House Financial Services committee, on Wednesday introduced a bill that would give Puerto Rico agencies the ability to file for municipal bankruptcy as long as the commonwealth agrees to let a federal panel oversee its finances. Senator Orrin Hatch, the chairman of the finance committee, said he will file a bill Wednesday afternoon.
- Fed Plans to Signal Gradual, Cautious Path on Rate Hikes. After liftoff, central bank will look to strike balance between flexibility and articulating a plan. For Federal Reserve officials, deciding to raise short-term interest rates will be the easy part of their meeting next week. The harder part may be agreeing on how to signal the likely path of rate increases in 2016 and beyond.
- Greece Braces for New Year Drama. Economic outlook looks good on paper, but many hurdles remain.
- It’s Too Easy for Terrorists. A program that lets people from 38 countries visit the U.S. without a visa needs better security measures. At least four of the terrorists involved in last month’s deadly Paris attacks were French citizens. This means that, under the terms of the Visa Waiver Program, they could have legally entered the U.S. with nothing more than their passports.
Fox News:
- Match made in hell: SoCal terrorists likely forged bond in online jihadist forums. (video)
- ObamaCare to reduce workforce by 2 million jobs' worth of hours, CBO says. (video)
ObamaCare will reduce work hours equivalent to 2 million jobs in the next decade amid a host of incentives not to work or to work less, a new Congressional Budget Office (CBO) report says -- the latest blow to President Obama’s signature health insurance plan. The report estimates the Affordable Care Act, or ACA, will make the labor supply shrink by 0.86 percent in 2025. This amounts to a shrinkage equivalent to approximately 2 million full-time workers. - Russia could nuke ISIS, Putin suggests. Russian President Vladimir Putin said Wednesday the Russian missiles used to combat terrorists in Syria could be fitted with nuclear warheads, the Russian government-funded news agency RT reports.
MarketWatch.com:
- First Solar(FSLR) shares down 7% after guidance.
- America’s middle class has lost nearly 30% of wealth.
- Will hiking average Obamacare tax penalty to $969 boost enrollment? Average tax penalty for uninsured households is jumping 50% to nearly $1,000.
CNBC:
Zero Hedge:- Hedge fund manager Ken Griffin backing Marco Rubio for president. (video) Ken Griffin, the billionaire hedge-fund manager who has become a major Republican Party donor in recent years, is throwing his support behind Florida Sen. Marco Rubio for president. "I'm really excited to be supporting Marco Rubio," Griffin, who is the founder and chief executive of the Chicago firm Citadel, said in an exclusive interview with CNBC. "He will be the next president of the United States."
- Texas messes with oil market, diesel glut weighs on price. A Texas tax law could muddy U.S. oil inventory data through year-end, but the crude glut is not going away and is now showing up in an oversupply of diesel and other fuels.
- Citi: Seven warnings signs for stocks in 2016. (video)
- "We Are Living Amid An Islamic Threat", French Mayor Says: "Our Country Is At War Inside Our Borders".
- The Global Economic Reset Has Begun. (video)
- Amid Commodity Collapse, World's Most Resource-Driven Economy Posts Greatest Jobs Gain In 15 Years. (graph)
- How Hillary Clinton Abused Her State Department Role To Help Her Hedge Funder Son-In-Law.
- The "American Dream" Is Over... And Voters Know It.
- Something Did Blow Up In Junk. (graph)
- Credit Card Data Reveals First Core Retail Sales Decline Since The Recession. (graph)
- Corporate Loan Charge-Offs And Delinquencies Surge. (graph)
- Carnage In Currency-Land - Dollar Dump Sparks Stock Slump. (graph)
Business Insider:
The Long War Journal:- Ex-Guantanamo detainee now an al Qaeda leader in Yemen. Al Qaeda in the Arabian Peninsula (AQAP) released a new video featuring a former Guantanamo detainee, Ibrahim Qosi, who is also known as Sheikh Khubayb al Sudani. In July 2010, Qosi plead guilty to charges of conspiracy and material support for terrorism before a military commission. His plea was part of a deal in which he agreed to cooperate with prosecutors during his remaining time in US custody. Qosi was transferred to his home country of Sudan two years later, in July 2012.
- Records Show Syed Farook Inspected More Than 40 San Bernardino Schools. San Bernardino jihadi Syed Rizwan Farook inspected more than 40 elementary schools, junior high schools, and high schools in his job as a county health inspector, records show.
Telegraph:
- Chinese devaluation is a bigger danger than Fed rate rises. The yuan has fallen to the lowest in five years against the dollar. If China devalues in earnest, it will be an earthquake.
- None of note
- Asian equity indices are -1.25% to -.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 135.0 +1.25 basis points.
- Asia Pacific Sovereign CDS Index 71.75 +.25 basis point.
- Bloomberg Emerging Markets Currency Index 69.99 +.06%.
- S&P 500 futures +.33%.
- NASDAQ 100 futures +.36%.
Earnings of Note
Company/Estimate
- (CIEN)/.38
- (FNSR)/.23
- (RH)/.63
- (VNCE)/.07
- (ADBE)/.60
8:30 am EST
- The Import Price Index for November is estimated to fall -.8% versus a -.5% decline in October.
- Initial Jobless Claims are estimated to rise to 270K versus 269K the prior week.
- Continuing Claims are estimated to fall to 2155K versus 2161K prior.
- 3Q Household Change in Net Worth.
- Monthly Budget Statement for November.
- None of note
- The SNB rate decision, BoE rate decision, $13B 30Y T-Bond auction, Bloomberg Dec. US Economic Survey, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report, (YUM) analyst day, (SMG) analyst day, (AMT) investor day, (ALXN) investor day and the (UTX) analyst meeting could also impact trading today.
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