Dr. Ed's Blog

Jan 24 (Wednesday)

Markets
The ‘3,000 on the S&P 500’ camp grows and grows (FT)
As Markets and Growth Steam Ahead, Signs of Caution Emerge (W)
Tech Stocks Are Showing Signs of Overheating (B)
Welcome to the New Reality of Bigger U.S. Treasury Debt Sales (B)

Central banks
Senate Confirms Jerome Powell as Federal Reserve Chairman (W)
Goodfriend Tells Lawmakers He Backs Fed’s Dual Mandate on Jobs, Prices (W)

Davos
Pay close attention to the message out of Davos … then unload your stocks? (MW)
A Fractured World: Nationalism vs. the Global Liberal Order (W)
Davos Bank CEOs Are Worried Markets Are Complacent Like 2006 (B)
Trudeau tells Davos their ‘approach won’t cut it’ (FT)
India’s Modi Says Protectionism Is Hurting Global Trade (W)

Europe
Berlin deal hopes hit by surge in SPD membership applications (FT)

China
China Sends Mixed Messages About Economic Policies (W)

US politics
States Grapple With Federal Tax Cut That May Raise State Taxes (W)
White House: Senators’ Immigration Plan ‘Totally Unacceptable’ (W)
Schumer Works to Mend Democratic Split After Shutdown (W)
Trump’s FDIC Pick Plays It Safe on Fight Over Big Bank Leverage (B)
FBI Agent Was Hesitant to Join Special Counsel Probe (W)

US tax reform
125,000 Disney employees to receive $1,000 cash bonus due to tax reform (C)
Verizon Using Some Tax Savings to Give Each Employee 50 Shares (B)

Geopolitics
U.S. Allies Shift Trade Priorities as Trump Sets Tariffs (W)
Targets of Trump Tariffs Say American Consumers Will Get Hurt (W)
As U.S. Fires Trade Shot at China, Multinationals Caught in Crossfire (W)
TPP Members Reach Agreement on Trade Pact (W)
U.S. Blames Russia for Allowing Alleged Chemical Attack in Syria (W)

Industries & companies
Airlines: United Continental Reports Higher-Than-Expected Earnings (W)
Consumer: Price War Pressures Consumer-Goods Giants (W)
FAANGs: Apple to Begin Selling Delayed HomePod Speaker (W)
FAANGs: Amazon gives in to Massachusetts tax officials and agrees to turn over third-party seller data (C)
Retail: The Latest Perk at Malls: Gas Fill-Ups While You Shop (W)
Tech: Qualcomm to be censured by European regulator (FT)

Technology
U.S. Safety Board Opens Probe of Second Tesla Autopilot Crash (B)

Cryptocurrency
The Programmer at the Center of a $100 Billion Crypto Storm (W)
After Bitcoin Futures, Watch Out for Crypto Repos (W)

Offbeat
Climate Change Could Make Borrowing More Expensive (B)
‘The Shape of Water’ Leads Oscar Nominations With 13 (W)

Jan 23 (Tuesday)

Markets
What debt ceiling worries? Markets hum along (R)
It Has Been a Near-Perfect Investing Environment. But It May End Soon. (W)
Two Reasons Why U.S. Small Caps Aren’t Cashing In on Tax Reform (B)
Secret to Dollar’s Dim Future Found in Fed’s Last Hiking Cycle (B)

IMF & the Fed
IMF hails ‘broadest’ rise in global growth since 2010 (FT)
U.S. Tax Overhaul Will Accelerate Global Growth, IMF Says (W)
Jerome Powell’s Challenge at the Fed: Keep the Economy Humming (W)

US
This Rare Bear Who Called the Crash Warns Housing Is Too Hot Again (B)

Emerging
The Fun Is Just Starting for Emerging-Market Stocks (B)

US politics
Congress Passes Three-Week Spending Bill to End Government Shutdown (W)
Trump’s ‘America First’ Message Is a Case of Rhetoric vs. Reality—So Far (W)
By Adding to the Debt, Tax Cuts Could Complicate Next Downturn (W)

Geopolitics
U.S. Imposes Trade Tariffs, Signaling Tougher Line on China (W)
Pence Says U.S. Will Open Embassy in Jerusalem Next Year (W)

Industries & companies
FAANGs: Amazon Prime’s Monthly Price Hike Will Generate $300 Million a Year (B)
FAANGs: The case for ending Amazon’s dominance (FT)
FAANGs: Netflix Continues Landing Customers (W)
FAANGs: Netflix’s Growth Is in the Eye of the Beholder (B)

Corporate finance
AIG Agrees to Pay $5.56 Billion to Buy Bermuda Insurer (W)
China’s IPO hopes buoyed by belief in ‘unicorns’ (FT)
Big Drugmakers Pay Big Prices for Promising Biotechs (W)

Offbeat
Poland’s New Nationalist Rulers Are Erasing Lech Walesa From History (W)

Jan 22 (Monday)

Markets
Sell in January? Why Treasurys Fall in Winter (W)
Euro, Yen Tell Two Different Tales of Negative Rates (W)
Frackers Could Make Real Money in 2018, If They Don’t Blow It (W)

US
Raises and Bonuses Are About Economics, Not Politics (W)

Europe
Germany’s SPD Backs Merkel Coalition Talks After Divisive Vote (B)
Breakthrough in push for new German government (FT)
No-Deal Brexit Could Cause Finance Chaos, Industry Group Warns (B)

US politics
What the Shutdown Says About Politics in 2018 (W)
An Investor’s Guide to the Shutdown (BR)
Big Techs Struggle to Spend Tax Cut Windfalls (BR)

Industries & companies
FANGs: Amazon’s Cashierless Convenience Store Set to Open (W)
Financials: US banks suffer 20% jump in credit card losses (FT)
Retail: Now Is the Perfect Time to Go Big on Retail, One New York Developer Says (W)
Retail: Retailers Still See Glut of Stores Despite Holiday Sales Rebound (B)
Tech: How to tame the tech titans (E)

Corporate finance
Sanofi Nears Deal to Buy Bioverativ for More Than $11.5 Billion (W)
Toshiba considers IPO of $18bn memory chip business (FT)
Icahn, Deason Push for Xerox to Explore Sale (W)

Technology
The era of the cloud’s total dominance is drawing to a close (E)
Great cloud of China (E)
The crypto sun sets in the East (E)

Offbeat
World Inequality Grows Amid Glut of New Billionaires, Oxfam Says (B)
FX Traders Do $100 Million Deals on Mobile Phones (B)
China, Unhampered by Rules, Races Ahead in Gene-Editing Trials (W)

Jan 20 (Saturday)

Markets
More than half of S&P 500 stocks are up 20% or more since Trump took office (MW)
One Chart Shows How Crucial U.S. Tax Reform Has Been for Stocks (B)
Can We Be Brutally Honest About Investment Returns? (W)

Oil
U.S. Oil Output Set to Surpass Saudi Arabia, Rivaling Russia (W)
Speculation Grows That OPEC Will End Cuts Early as Prices Rise (B)

Central banks
Fed’s Williams says three rate hikes ‘good starting point’ (R)
White House Considering San Francisco Fed’s Williams for Fed Vice Chairman (W)
Fed’s Quarles Draws Regulatory Road Map to Ease Bank Rules (B)

US
Consumer Sentiment Slides for Third-Straight Month (W)
U.S. Manufacturing Is Primed for Another Year of Growth (B)
How a Labor Stronghold Could Soon Take a Hit (W)
Less-Educated Workers See Biggest Weekly Pay Bumps (W)

Emerging
China’s Robust Growth to Face Pressure in 2018 (W)
India’s Challenge: So Many Young People, So Few Good Jobs (W)

US tax reform
The Case for an M&A Binge as Companies Reap Their Tax Windfall (B)
Why many companies are giving bonuses — not raises — after the new tax cuts (WP)
Why Some Small-Business Owners Will Miss Out on a Big Tax Break (W)
Tax Law Erodes Historic Building Credit, Threatening Some Projects (W)

US politics
This is what happens during a US government shutdown (C)
Help Wanted? Maybe Not, With Visa Rules Under Review (W)

Geopolitics & cybersecurity
US says China WTO membership was a mistake (FT)
New Type of Cyberattack Targets Factory Safety Systems (W)

Industries & companies
Consumer: Coca-Cola, Criticized for Plastic Bottles, Sets Recycling Goals (W)
FAANGs: Is Amazon Prime still worth it after monthly price hike? (MW)
FAANGs: Apple’s Big Cash Winners: Shareholders (W)
FAANGs: Facebook to prioritize ‘trustworthy’ news sources (R)
Health Care: How Hospitals’ Woes Are Making Health Lines Blur (W)
Industrials: GE’s Credit Risk Rises After Insurance Charge Spooks Investors (B)
Media: Advertising’s ‘Mad Men’ Bristle at the Digital Revolution (W)
Tech: IBM Revenue Grows for the First Time Since 2012 (W)

Corporate finance
ADT Shares Fall Below IPO Price in Trading Debut (W)
ADM Has Made Takeover Approach to Bunge Ltd. (W)
Google and China’s Tencent Find Being Friends Has Benefits (W)

Cryptocurrency
Bitcoin’s drop underlines a major fear: fraud in the cryptocurrency market (MW)
SEC Pours Cold Water on Prospect of Bitcoin ETFs (W)

Jan 19 (Friday)

Markets
The Dow’s 31% gain during Trump’s first year is the best since FDR (C)
Citigroup Predicts That This Year Will Have a Record $140 Billion of CLOs (B)
Japan Dumping U.S. Treasuries Puts Spotlight on Euro-Area Debt (B)

Central banks
Trump’s plans to remake the Federal Reserve are starting to hit snags (WP)
Fed’s Dudley backs review of 2% inflation target (FT)
Fed and markets strike uneasy rapprochement (FT)

US
U.S. Jobless Claims Fell to Near 45-Year Low (W)
New Home Building Dropped Sharply at End of 2017 (W)
How the U.S. Ended Up Enthralled by Unions (B)

Europe
Merkel’s Future Hinges on German SPD’s Vote on Forming Coalition (W)
EU Confronts Deep Divisions Over Legal Standards (W)

China
China’s Economic Growth Looks Strong. Maybe Too Strong (N)
China’s economy grows 6.9% in 2017 as exports shine (FT)
China’s Getting More Bang for its Credit Buck (B)
China births fall despite relaxation of one-child policy (FT)

US tax reform
Who gets a serving of Apple’s tax pie? (FT)
Walmart hits record high on US tax reform optimism (FT)
Banking on Lower Tax Rates (W)
Tax Law Saves Verizon $17 Billion In Deferred Taxes (W)
With Tax Savings, Some Employers Will Boost 401(k) Contributions (W)
Cuomo Proposes Ending Carried Interest Loophole for Hedge Funds (B)

US politics
Trump Angry at His Chief of Staff Over Comment President ‘Not Fully Informed’ on Border Wall Issue (W)
Trump Visit to Pennsylvania Aims to Boost GOP House Candidate (W)
CFPB Requests $0 Budget, Will Draw Down Reserves Instead (W)
Trump’s Chance to Save American Steel (N)

Geopolitics
Six Chinese Ships Covertly Aided North Korea. The U.S. Was Watching (W)

Industries & companies
Energy: Keystone XL Pipeline Obtains Enough Shipper Commitments to Proceed (W)
FAANGs: Amazon Narrows Choices for Second Headquarters to 20 (W)
FAANGs: Trump Says He Called Apple’s Tim Cook to Thank Him for Investments (B)
FAANGs: Apple’s Home Court Disadvantage (W)
Financials: What We Learned From Wall Street’s Fourth-Quarter Results (B)
Financials: Morgan Stanley’s Brokers Push Its Profits Higher (W)
Financials: Countrywide’s shares dive after profit warning (FT)
Media: Fickle Cord-Cutters Vex TV Streaming Services (W)
Pharma: Hospitals Plan to Produce Generic Drugs in Bid to Fix Troubled Market (W)
Pharma: Drugmaker Raises U.S. Price of Muscular-Dystrophy Treatment (W)

Corporate finance
ADT IPO Drawing Muted Interest (W)

Cryptocurrency
IMF Calls for Global Talks on Cryptocurrencies (B)
Hackers Have Walked Off With About 14% of Big Digital Currencies (B)

Offbeat
One Year in, Trump Has Broken All the Rules (W)
Talking to Trump: A How-To Guide (W)

Jan 18 (Thursday)

Markets
Stocks Soar to Records on Earnings Enthusiasm (B)
‘Melt-Up’ Rally Propels Dow Above 26000 as Fear Turns to Greed (W)
There’s a ‘significant risk to markets’ that’s a bigger worry than where the economy is headed next (BI)
Low-yield era faces test from increased debt sales (FT)

Central banks
Fed’s Kaplan Sees 3 Rate Rises This Year, but Says More May Be Needed (W)
Senate Panel Again Votes to Back Powell as Fed Chief (W)
Fed Reports Tight Labor Markets but Modest Wage Gains (W)

US
U.S. Industrial Production Rose 0.9% in December (W)
The looming student loan default crisis is worse than we thought (Brookings)

China
Strongman Xi Jinping Now a Big Risk for China’s Economy (W)
China infrastructure falls foul of debt concerns (FT)
China’s VPN Crackdown May Aid Government Surveillance (W)

US tax reform
Buybacks, Pension Contributions and Savings: Companies Tout Tax Benefits (W)
Apple Plans to Pay $38 Billion in Repatriation Taxes (W)
Apple pledges to invest $30bn and pay $38bn tax bill (FT)
BofA to spend tax windfall mainly on shareholders (FT)

US politics
How Trump Has Upended U.S. Foreign Policy (W)
Republicans Bet Democrats Won’t Block Funding (B)

Geopolitics
US puts Russia and China at top of defence agenda (FT)
Koreas Strike Deal on Olympic Unity as U.S. Pressures North (W)
Facebook Widens Probe Into Alleged Russian Interference in Brexit (W)

Industries & companies
FAANGs: To Woo Amazon, Cities Tackle Everything From Traffic to Housing (W)
Financials: Goldman Loses Its Trading Edge (W)
Financials: Goldman Is Worth Less Than Morgan Stanley for the First Time in a Decade (B)
Financials: Bank of America Reports Profit Despite Tax-Related Charge (W)
Financials: Apple, Amazon, and other tech titans could threaten big banks in one key area (BI)
Media: Shari Redstone Seeks to Shake Up CBS Board, Pushes for Viacom Deal (W)
Tech: FTC Probes Broadcom Over Negotiations With Customers (W)

Technology
Google to extend reach of its machine learning (FT)

Cryptocurrency
Bitcoin plunges below $10,000 mark (FT)
Beyond the Bitcoin Bubble (N)
Beware: Even Joke Cryptocurrencies Are Going Through the Roof (W)
Crypto Lending Site’s Shutdown Renews Ponzi Scheme Allegations (B)

Offbeat
Old-Age Safety Net Frays for Millions of Americans (W)
One Accounting Firm Wants to Hire Retirees (W)

Jan 17 (Wednesday)

Markets
Dow Industrials Cross 26000 for First Time as Earnings Season Ramps Up (W)
Behind Roaring Stocks Are Profit Upgrades of Unprecedented Size (B)

US
Older Workers Account for All Net Job Growth Since 2000 (FRB-SL)

Europe
SPD failure to deliver healthcare reform riles party (FT)
Europe’s biggest test will come in Poland (FT)
Greece’s Parliament Votes on Another Bailout Reform Package (W)
EU wants all plastic waste recyclable by 2030 (FT)

China
China’s Hot Housing Market Begins to Cool (W)

US tax reform
Why New Tax Law Cost Citigroup, GM $29 Billion (W)
Big pharma is getting ready to spend tax reform dollars on big deals (BI)

US politics
Under Trump, the Business World Notches a Net Success (W)
Cuomo Seeks New York Tax Revisions to Thwart Federal Changes (B)
Trump Passes Cognitive Screen And Is ‘Fit for Duty,’ Doctor Says (B)

Geopolitics & trade
Battle Stations: U.S. and China Prepare for Trade Clash of the Titans (W)
North Korean ICBM Seen From Hong Kong-Bound Flight, Tillerson Says (B)
U.S. Plans New Nuclear Weapons (W)

Industries & companies
Airlines: Boeing Analysts Play Catch Up to the Stock’s Rally (B)
Energy: BP’s Deepwater Horizon Bill Grows by $1.7 Billion (W)
FANGs: Want to Break Up Facebook and the Tech Giants? Here’s the Argument (W)
Financials: Citi posts strong earnings, despite taking $22 billion hit from tax reform (BI)
Industrials: GE May Break Itself Up, CEO Says (W)
Industrials: GE’s Latest Blast of Bad News Has Wall Street Bracing for More (B)
Pharma: Big Pharma efforts on Alzheimer’s tested by Pfizer exit (FT)
Railroads: Railroad operator CSX posts 6 percent drop in quarterly revenue (BI)
Telecom: Ericsson, Humbled by Huawei, Takes Another $1.8 Billion in Charges (W)

Corporate finance
Energizer to Buy Spectrum’s Batteries and Lighting Unit for $2 Billion (W)

Cryptocurrency
Bitcoin Plunges 20% (W)
Ethereum drops below $1,000 amid crypto bloodbath (BI)
A Wall Street consultancy eviscerated crypto in a massive report — and it should strike fear into the heart of every bitcoin bull (BI)
New Cyberattack on Cryptocurrency Investors Came From North Korea, Report Says (W)

Offbeat
BlackRock to Companies: Pay Attention to ‘Societal Impact’ (W)
A quant analyst took 6 months off work to deal with cancer, and when he returned sent this 4,000-word note to clients questioning the purpose of the financial sector (BI)

Jan 16 (Tuesday)

Markets
Markets risk a ‘brutal’ fall as they ignore the Fed’s latest warning shot (MW)
Bundesbank Says It’ll Add China’s Yuan to Currency Reserves (B)

Central banks
Bank of Japan’s $50 Billion Question: When to Stop Buying Stocks (W)

US
As Labor Pool Shrinks, Prison Time is Less of a Hiring Hurdle (N)
Ready or Not for the Next Recession? (Project Syndicate)

Europe
Macron seeks overhaul of Anglo-French migrant accord (FT)

Japan
Why Is Japan Populist-Free? (Project Syndicate)

US politics
Metals Power Higher as Sickly Dollar Spurs Copper-to-Gold Rally (B)

Geopolitics
Merkel could join Macron in Davos for clash with Trump (R)

Industries & companies
Autos: Marchionne’s Stark Farewell Message to Carmakers: Adapt or Die (B)
Biotech: Don’t Fear a Biotech Correction (W)
Energy: The Three Stumbling Blocks to a Solar-Powered Nation (W)
Financials: Don’t Expect Citi to Report Profits (W)

Corporate finance
SoftBank Explores $18 Billion Listing of Telecoms Business (W)
Lego and Tencent team up for China digital partnership (FT)

Cryptocurrency
China Escalates Crackdown on Cryptocurrency Trading (B)
Uproar as South Korea Plans Cryptocurrency Crackdown (W)

Offbeat
Why We’re Losing the War On Plastics (B)

Jan 15 (Monday)

Markets
This Bond Bear Market Doesn’t Look Too Fierce (BR)
What the Bond Market Turmoil Really Means (BR)

Europe
SPD casts doubt on German coalition deal (FT)
Renzi’s Comeback Hopes Fade as Italy’s Self-Styled ‘Demolition Man’ Sinks in Polls (W)

Japan
A small Japanese city shrinks with dignity (E)
A small town in Japan doubles its fertility rate (E)

Emerging
India’s missing middle class (E)

US politics
Trump Administration Approves Kentucky Plan Requiring Medicaid Recipients to Work (W)
Republicans See Possible DACA Deal Despite Trump’s Twitter Posts (B)

Geopolitics & trade
China Reports Biggest-Ever Annual Trade Surplus With U.S. (W)
Opaque Joint Ventures Help North Korea Evade Crackdown (W)
Trump’s No Isolationist. Is That a Good Thing? (B)

Industries & companies
Autos: Ford Increasing Electric Vehicle Investment (W)
Energy: The Three Stumbling Blocks to a Solar-Powered Nation (W)
FANGs: The Faangs Have Room to Run (BR)
FANGs: Amazon’s Grocery Sales Increased After It Devoured Whole Foods (W)
Financials: Bank of America Warrant Holders Could Reap 4,000 Percent Returns (B)
Media: Marketers Say Facebook’s News Feed Update Will Be ‘Nail in the Coffin’ for Organic Posts (W)
Tech: High-flying US tech stocks face early test in 2018 (FT)

Technology
Self-driving cars raise ‘weaponisation’ fears (FT)

Cryptocurrency
Everyone Is Getting Hilariously Rich and You’re Not (N)

Offbeat
U.S. Reviews Alert System After False Alarm in Hawaii (W)
‘Star Trek’ Lives Long and Prospers in Pop Culture (W)

Jan 13 (Saturday)

Markets
Tax Reform to Fuel Rotation to Stocks, JPMorgan’s Kolanovic Says (B)
What’s Missing from This Potential Bond Bear Market (W)
For Bond Investors, Low Expectations in a Low-Yield World (N)

US
Inflation Ends Year on a Stronger Note (W)
Finally, a Clearer Picture on Inflation (W)
U.S. Retail Sales End 2017 on Solid Footing (W)

Europe
German political optimism lifts euro to 3-year high (FT)
Merkel hails ‘new dawn’ as she unveils coalition deal (FT)

China
China Reports Biggest-Ever Annual Trade Surplus With U.S. (W)
Delta, Zara and Medtronic Join Marriott in Beijing’s Doghouse After Location Gaffes (W)

US politics
Supreme Court to Consider Internet Sales Tax Collection (W)
Rep. McSally Joins Race for Arizona Senate Seat (W)

Industries & companies
Autos: Auto Makers, in a Blast From the Past, Retool Iconic Trucks (W)
FAANGs: The End of the Social News Era? (N)
Financials: Banks Are Upbeat as New Tax Law Muddies Earnings (W)
Financials: Big Banks Now Need to Figure Out How to Divvy Up Their Tax Windfall (B)
Financials: JPMorgan and Wells promise to share US tax cuts (FT)
Financials: Goldman Sachs Likely to Join JPMorgan in Taking a Loss Linked to South African Retailer (B)
Media: Disney Says Sandberg, Dorsey Won’t Seek Board Re-Election (W)

Technology
G.M. Says Its Driverless Car Could Be in Fleets by Next Year (N)

Cryptocurrency
Bitcoin investors struggle to cash out new fortunes (FT)

Offbeat
World Bank Unfairly Influenced Its Own Competitiveness Rankings (W)
This Flu Season Is Severe, and Far From Over (W)
Bezos to Grant $33 Million in College Scholarships for DACA Students (W)
Why are so many Americans crowdfunding their healthcare? (FT)