Dr. Ed's Blog

May 23 (Wednesday)

YRI
Ed Yardeni Shares His Unconventional Views on Investing with Consuelo Mack
Daily Markets Overview

Markets
U.S. Stocks Slip as Investors Weigh Trade Talks (W)
Positive Correlation Holds for Bond Yields and Stocks (B)
Investors Grit Their Teeth Through Italy’s Troubles (W)
Investors Are Worrying About the Wrong Plunging Italian Asset (B)
Italy’s new rulers could shake the euro (FT)
Quants With 20% of U.S. Stock Funds Puzzle Over Timing of Cycle (B)

US
Inflation is coming to the US economy on an 18-wheel flatbed (C)
The Next U.S. Recession Will Start in 2020, Survey Says (B)
Americans Are Prioritizing Phone Payments Over Car Loans (B)
More women say they can’t afford kids because of their student loans (C)

Trade
China Gives Tesla, Ford, General Motors and Trump One Awesome Present (The Street)
China Makes Massive Cut to Car Tariffs After Truce With Trump (B)
Trump: There’s no deal with China on ZTE, and I’m not satisfied with trade talks (C)
U.S. and China Edge Toward a Resolution of Trade Standoff (W)
In Trade War With U.S., China Gets the Upper Hand (W)

Geopolitics
Trump Casts Doubt on North Korea Summit in Meeting With Moon (B)

Industries & companies
Autos: Tesla’s Model 3 Sedan May Get a Consumer Reports Nod After All (B)
FANGs: Banned From Amazon: The Shoppers Who Make Too Many Returns (W)
Financials: U.S. Banks Reported Record First-Quarter Profit (W)
Financials: Bankers Hate the Volcker Rule. Now, It Could Be Watered Down. (N)
Retail: J.C. Penney CEO Quits to Join Lowe’s (W)
Retail: Leading Retail Stock Lululemon Headlines This Industry Group (IBD)
Tech: New Intel Chip Flaws Found—And They Likely Won’t Be the Last (W)

Corporate finance
Why Rush of Overseas Dealmaking Is Risky for U.S. Companies (W)
Chinese Tech Unicorns Take New Approach to Raising Cash (W)

Technology
With Pop Star as Bait, China Nabs Suspects Using Facial Recognition (W)
Amazon under fire over facial recognition software (FT)

Offbeat
Want to See Your Baby? In China, It Can Cost You (N)

May 22 (Tuesday)

Markets
Wall Street Likes a Less-Hostile U.S. When It Comes to China Trade (B)
Pick Your Stock-Market Boom: Big Oil vs. Big Tech (W)

Credit & currencies
Corporate Bonds Sink Fast in One of Worst Tumbles Since 2000 (B)
Citigroup Says Treasury Selloff Signals Bearish New Era for Risk (B)
Italian bonds hit hard by risk over new government (FT)
Rising Dollar Sparks Tumult in Emerging Markets (W)
Strong dollar is not the biggest challenge for EMs (FT)

US
Financial Crisis May Have Hit ’80s Generation the Hardest (W)

Europe
Italy’s Borrowing Costs Exceed Indonesia’s (B)

Trade
U.S., China Agreed to Suspend Tariffs (W)
China is winning Trump’s trade war (WP)
Trump defends China trade detente (FT)
Welcome to the U.S.-China Cold Soup War (W)

Geopolitics
Pompeo Lays Out U.S. Demands for New Iran Deal (W)
U.S. Mission for South Korea’s Moon: Keep Summit on Track (W)

Industries & companies
Autos: Tesla Model 3 Rebuffed by Consumer Reports on Slow Braking (B)
Consumer: Small Brands Taking a Thousand Bites Out of Campbell’s Business (W)
Energy: Major Oil Companies Embrace Latin America (W)

Offbeat
The Obama Channel? Obamas Sign Deal With Netflix (W)

May 21 (Monday)

Markets
Oil bulls walk fine line as $80 crude hits demand (FT)
Beyond the Dollar Everything’s ‘Just Noise’ for Emerging Markets (B)
Treasurys Pay More Than Debt From Other Developed Nations (W)

Global
Global Debt Is Heading Toward Dangerous Levels, Again (BR)

US
Split in Goods and Services Inflation Underscores Fed’s Challenge (W)
U.S. Workers: Stuck on the Debt Treadmill (BR)

Europe
Italy’s Biggest Problem: The Euro (BR)
France fires EU budget warning to Italian populists (FT)

US politics
How Larry Kudlow Adapts to Trump Economic Policy (BR)
How the Trump administration is reshaping Medicaid (E)

Trade
U.S. Puts ‘Trade War’ Against China on Hold, Mnuchin Says (B)
Treasury, USTR Send Mixed Messages Over China Tariffs (W)
U.S.-China Trade Truce May Be Fleeting Absent Serious Reform (B)
China stops short of accepting US trade demands (FT)
Trump Focused on Good Nafta Deal, Not Deadlines, Mnuchin Says (B)

Geopolitics
North Korea reminds the world why past peace talks have failed (E)
U.S. Bows to Seoul’s Request to Scrap Military Exercise (W)

Industries & companies
Consumer: Why Coke, PepsiCo, and P&G Look Like Bargains (BR)
Financials: Investment banks line up rebound in revenues (FT)
Financials: Main Street Banks Feel Squeezed by New Lending Rivals (W)
Media: Roku Shares: A Bet on the Channel Guide to TV’s Future (BR)
Media: ‘Deadpool 2’ Surges to No. 1 at Box Office (W)

Technology
The AI Doctor Will See You Now (W)

May 19 (Saturday)

Markets
Profit margin question hanging over US stocks (FT)
This Is the Week That Markets Started Paying Attention to the End of Easy Money (B)
Wall Street’s ‘Sell in May’ could be fading away (R)

Credit & commodities
Italian bonds hit seven-month low on political deal (FT)
China sees rise in companies defaulting on bonds (FT)
Gold Bulls Push for the Exits on Strong Dollar and Lack of Fear (B)

Central banks
Fed’s Bullard Sees No Need to ‘Scramble’ to Hike Rates (B)

US
Mortgage Rates Hit Seven-Year High as Ultracheap Era Ends (W)
Which Jobs Are Workers Most Willing to Move For? These Ones (W)

Europe
Five Star and League strike Italy government deal (FT)
Why Italy matters so much to Europe (FT)

China
China’s vanished current-account surplus will change the world economy (E)

US politics
Who Will and Won’t Pay the AMT? (W)
Trump suggests FBI may have infiltrated his campaign (R)
Chinese bank offers clients $150,000 chance to meet Trump (FT)

Geopolitics & trade
China Agrees to Buy More U.S. Goods and Services (W)
Mexico says many NAFTA issues remaining but not complex ones (R)
Trump adds veiled threat to N Korea reassurance (FT)

Industries & companies
Autos: Et Tu, Tesla? The Escalating War on Middle Management (W)
Consumer: Campbell CEO Departs as Sales Cool (W)
FANGs: Trump Wanted to Double Amazon’s Postal Rates, Report Says (B)

Corporate finance
Goldman Teams With Former Honeywell CEO in $690 Million M&A Push (B)

Technology
AI Can’t Reason Why (W)

May 18 (Friday)

Markets
U.S. Stocks Retreat on Trade Worries (W)
Do Small Caps Still Outperform Large? (II)
Warren Buffett: Interest rates are the ‘most important’ thing in determining stock values (C)

Credit & commodities
Oil Is Above $70, but Frackers Still Struggle to Make Money (W)
What Do Tesla, Apple and SoftBank Have in Common? They’re All Hot for Lithium (W)

US
Fed Manufacturing Gauges Show More Pricing Power (B)
Don’t Fall for Employers’ Whining About a ‘Skills Gap’ (B)

Demographics
U.S. Household Wealth Rises Largely Among Older Borrowers (W)
Young left out of US boom in housing wealth (FT)
Millennials haven’t saved two years’ salary — they’ve saved one week’s worth (MW)
U.S. Birth Rate Drops to Record Low (W)
Fewer Americans are putting off weddings and kids because of money (MW)

Japan
Japan’s Inflation Slows Amid Rising Calls for Delay in BOJ Exit (B)

Geopolitics & trade
Legislation to Curb Chinese Deals Moves Through Congress (W)
China Offered Trump $200 Billion Cut in U.S. Trade Deficit, Official Says (B)
US team divided as trade talks with China begin (FT)
Japan Considers Retaliation Against U.S. Steel Tariffs (W)
Nafta talks set to drag in to 2019 after missed deadline (FT)
Trump Offers North Korea’s Kim Political Safeguards, but Warns of ‘Total Decimation’ (W)

Industries & companies
FANGs: Tech lessons from Amazon’s battle in Seattle (FT)
Financials: Wells Fargo Altered Information on Business Customers’ Documents (W)
Retail: Walmart’s online sales jump 33% (FT)

May 17 (Thursday)

Markets
Stocks Rise, Led by Retailers (W)
Global Oil Stocks Fall to Three-Year Low (W)
Morgan Stanley Says a Shipping Revolution Has Oil Headed for $90 (B)
Tencent’s Shares Were On Fire. Now They Aren’t, and Analysts Are Getting Worried (W)

Central banks
Williams Says Fed’s Era of Market Hand-Holding Is Nearing an End (B)
Fed’s Quarles suggests U.S. could cut foreign banks’ capital requirements (R)
Top ECB official calls for speed on banking union (FT)

US
US shoppers spending again as retail sales climb (FT)
Industrial production rises strongly; homebuilding tumbles (R)
Financial Conditions Are Starting to Get Tighter (W)
Why the Credit-Card Boom May Have Just Peaked (W)
As gig economy grows, U.S. lenders reluctant to relax income rules: survey (R)

Europe
Italian assets undermined by political concerns (FT)

Japan
A Jump in Japan Wages Gives Hope (B)

Emerging
Harvard’s Reinhart Says Emerging Markets Are in Tougher Spot Than During ‘08 Crisis (B)
In Emerging Turmoil, What Links Argentina and Turkey? (W)

US politics
Trump Faulted for Failing to Disclose Payment to Stormy Daniels (B)

Geopolitics
North Korea Balks at Hard Line on Nukes, Widening the Divide (W)
US brushes off North Korean threats to quit summit (FT)
Total warns of Iran pullout over US sanctions threat (FT)

Trade
Trump Says ‘There Has Been No Folding’ Over Possible ZTE Deal (W)
Trump’s Goal for Nafta Rewrite Looks Unattainable in 2018 (W)
Navarro to Be Excluded From China Talks (B)
China denounces trade unilateralism, defends free trade (R)
US-China ‘very far apart’ on trade, says ambassador (FT)
EU split over how to respond to Trump (FT)

Industries & companies
Autos: GM’s Next Battle With Ford: Really Big Pickups (W)
FANGs: Can Amazon Convince Whole Foods Shoppers to Join Prime? (W)
Retail: Nike Hits Record High With Investors Shrugging Off Executive Upheaval (B)

Technology & cryptocurrency
SEC Tries to Scam ICO Investors to Show Them How Easy It Is (B)

Offbeat
‘I Am the Mastermind’: Mohammed bin Salman’s Guide to Getting Rich (W)
MoviePass Proves Great for Customers, Awful for Investors (W)

May 16 (Wednesday)

Markets
Dow Industrials Snap Winning Streak (W)
Investors Are Wary as Companies Ramp Up Capital Spending (W)
Investors Cut Apple Holding by Most Since at Least ’08 (B)
U.S. Bond Yields Jump to Fresh Highs on Retail Sales (W)
Lumber Prices Soar on Tight Supply, Trade Tariffs (B)

Central banks
Fed’s Williams Sees Three to Four 2018 Hikes Still Warranted (B) | Speech
Clarida, Bowman Affirm Commitment to Fed’s Independence in Setting Rates (W)

US
New Fed Reports Show Rising Inflation Expectations (W)
Climbing Gas Prices Didn’t Keep Consumers From Spring Spending (W)
US shoppers spending again as retail sales climb (FT)

Europe
Draft League/Five Star deal sought path out of euro (FT)

Japan
Japan’s Economy Contracts, Snapping a Two-Year Growth Streak. (B)
These Are the Groups Deciding Whether Japan’s Abe Stays or Goes (B)

China
China’s Industrial Output Revs Up (W)
Global Funds Are Now the Dominant Force in China’s Debt Market (B)

Emerging
Emerging Markets Face Their Moment of Truth (B)

US politics
Haspel Wins Key Democrat’s Backing, Paving Way to CIA Confirmation (W)
Trump Administration Won’t Consult California on Vehicle Emissions Rules (W)
Trump Moves to Overhaul Government’s Computer Systems (W)

Geopolitics & trade
Senate Democrats Warn Trump Over Any ZTE Deal (W)
Charting the Gulf Between Chinese and U.S. Tariffs (W)
Mexico Doesn’t See Nafta Talks Wrapping Up Before Deadline (W)
WTO Ruling Advances U.S. and Boeing in Case Against Airbus (W)
North Korea Warns Military Exercises Imperil U.S. Summit (W)

Industries & companies
Financials: Volcker Rule 2.0 Draft Coming Soon (W)

Corporate finance
Xiaomi’s Real IPO Killer Just Arrived From Beijing (B)

Technology & cryptocurrency
Big Bitcoin Exchange Welcomes High-Speed Traders (W)
U.S. Crypto Trading Platforms Are About to Get More Competition (B)

Offbeat
Making Movies in the Trump Era for the Audience Hollywood Ignored (W)
Facebook Throws More Money at Wiping Out Hate Speech, Bad Actors (W)
Twitter Makes Tweaks to Punish ‘Troll-Like Behavior’ (W)
David Tepper to Buy Carolina Panthers for $2.2 Billion (W)

May 15 (Tuesday)

Markets
Investors Are Pouring Money Into Tech Stocks Once Again (B)
Giant California Pension Fund Raises Bet on Tech (B)
The Passive-Investing Bid for U.S. Equities Is Roaring Back (B)

Credit & commodities
Bond Market Shows Growth in U.S. Is Beating Europe (W)
US companies cut bond holdings after tax changes (FT)
Palladium in Cars Set for Record on Demand From China (B)

Central banks
Fed’s Mester Says Improved Economic Outlook Supports More Rate Rises (W)

US
Subprime Auto-Default Rates Top 2008 Level, and Lenders Cut Back (B)
Consumers Skip More High-Rate Auto Payments Than During Crisis (B)

Europe
Europe’s Economy Looks Like the Weak Link in Global Expansion (B)
Italy’s populist parties ask for more time (FT)
Morgan Stanley Splits With Nomura Over Emerging-Market Outlook (B)

US politics
House Freedom Caucus Faces Tough Fights in Midterms (W)

Geopolitics & terrorism
U.S., China Weigh Deal on ZTE Ban, Agricultural Tariffs (W)
All About ZTE, the Chinese Sanctions Breaker That Trump Wants to Help (N)
Disarray Plagues U.S. Companies’ Efforts to Win Tariff Exemptions (N)
Wake up Congress, our NAFTA partners are ramping up trade in Europe and the Pacific Rim (USA)
Behind Trump’s Diverging Attitudes on North Korea and Iran (W)

Industries & companies
Autos: Tesla Considered Adding More Safeguards to Autopilot System (W)
Autos: Tesla CEO Says Company Is ‘Flattening Management Structure’ (W)
Energy: Shale Drillers Look Beyond Texas as Prices Rise (W)
Energy: The 130-Year-Old Bankruptcy That Created a $5 Billion Oil Giant (B)
FANGs: Amazon Tests Ad Tool That Rivals Google, Criteo (B)
Retail: Sears Buoyed by Asset Plan That Analyst Sees as Bankruptcy Hint (B)

Corporate finance
Soft Chinese Tech IPOs Test Next Wave of Listings (W)
JPMorgan to Take Controlling Stake in Chinese Venture (W)

Technology
How the World’s Biggest Companies Are Fine-Tuning the Robot Revolution (W)

May 14 (Monday)

Markets
Why the Buyback Boom Is Bullish for Investors (BR)
Opinion: S&P 500 should be 1,000-plus points lower than it is today, strategist Rosenberg says (MW)
Morgan Stanley Outlines Strategy for ‘End of Easy’ in Markets (B)
The Case for Shorting Tech and Buying India (BR)
China’s Stock Market Is About to Burst Onto the Global Stage (B)
A Late-Cycle Contrarian Play: Buy British (BR)

Credit & commodities
Can oil prices extend their Iran-fuelled rally? (FT)
Timber! Lumber Prices Vulnerable to a 50% Fall (BR)
As the U.S. Retreats From Trade Deals, Dollar May Suffer (W)

US
Gas Is Headed for $3. What That Means for the U.S. Economy (W)

Europe
Italy’s 5 Star, League Reach Deal on Government Program (W)

Emerging
Why Asia Will Come Out on Top as Emerging Markets Get Shaken Up (B)
Ghost of Overcapacity Haunts China Steel Shares Again (B)
In China’s cities, young people with rural ties are angry (E)

Geopolitics & trade
U.S. Businesses to Make Their Case Against China Tariffs (W)
Trump orders U-turn over sanctions on Chinese telecom group (FT)

Industries & companies
Autos: ‘Made for China’ Is Hyundai’s New Mantra (B)
Autos: Tesla Executives Step Away, Adding to Auto Maker’s Challenges (W)
Pharma: Reckoning for Drug Middlemen Is Postponed, Not Canceled (W)
Retail: Walmart shifts global strategy to battle Amazon (FT)

Corporate finance
A New Wave of China Tech Giants Near IPOs (BR)
Xerox Drops Fujifilm Merger Plan, Strikes a Deal With Activists (W)

Technology
How mobile money is spreading (E)
Will Google’s Robot Pick Good Stocks? (BR)

Offbeat
Data protectionism: the threat to global business (FT)

May 12 (Saturday)

Markets
New Sign of Stress in Emerging Markets: Local Currency Bonds Lose Luster as Dollar Rallies (W)
JPMorgan Sees Small-Cap Stocks’ Time on Top Coming to an End (B)
Bond Market Indicates Doubt About Trump’s Economic Targets (N)

Central banks
Fed Study Shows U.S. Hikes Hit High-CPI Emerging Markets Hardest (B)

US
U.S. Consumer Sentiment Held Steady in Early May (W)

China
With Jail Sentences and Corporate Flameouts, China Is Tackling Its Debt (N)
China buys up flying schools as pilot demand rises (FT)

US politics
AT&T Calls Hiring Cohen ‘Big Mistake,’ Axes Policy Official (W)
Health Law Is Back as Campaign Issue—This Time for Democrats (W)

Geopolitics
As Nafta Deadline Nears, Hopes for Deal Focus on Autos (W)

Industries & companies
FANGs: Congress, Privacy Groups Question Amazon’s Echo Dot for Kids (Wired)
Pharma: Trump Unveils Plan to Cut Drug Prices (W)

Corporate finance
AXA Equitable Flops in Largest IPO of the Year (W)
Promises Mean Little for Consumers in T-Mobile-Sprint Deal (Wired)
Why Tech Company IPOs Can Be So Overvalued (W)

Technology
Boston Dynamics’ Robot Dog Available Next Year (Wired)

Offbeat
Americans are taking more vacation time—why that’s a good sign for the economy (MW)
Opinion: A science lesson for Elon Musk: It pays to work less (MW)
Maryland’s Crab Country: Not Enough Visas, Not Enough Workers (W)