wiar 1-06-17

MFwebsite2020researchWhat I Am Reading

January 6 (Friday)

Markets
Markets Dangerously Price in Trump-Era Perfection (W)
BARCLAYS: These 13 ‘black swans’ could cause market chaos in 2017 (BI)
The glass is half full for Wall Street earnings expectations (FT)
Why an Infrastructure ETF May Be a Bad Way to Play an Infrastructure Boom (B)

Central banks
Fed’s Williams Sees Three-Hike 2017 Outlook as ‘Very Reasonable’ (B)
Fed officials think Trump tax cuts could lead to higher rates (FT)
The Fed’s Point Man on Productivity (W)

US
U.S. Consumer Comfort Gauge in 2016 Was Strongest in Nine Years (B)
How Low Can the Unemployment Rate Go? (W)

China
China’s choices narrowing as it burns through FX reserves to support yuan (R)
Wave of spending tightens China’s grip on renewable energy (FT)

US politics I
Ghosn asks Trump to clarify rules of the road for carmakers (FT)
Ford’s Bow to Trump Benefits Robots, Not Workers (B)
Toyota Will Take Trump’s Decisions Into Account on Mexico Plant (B)
Trump Battle Puts GM in Tough Spot (W)
Top US oil industry group lobbies Trump for lighter regulation (FT)
Trump Tells Confidant He Remains Opposed to AT&T Deal (B)

US politics II
TRUMP: ‘Obamacare was a lie from the beginning’ (BI)
Trump Picks Dan Coats as Nominee for Intelligence Chief (W)
Trump Plans Spy Agency Revamp (W)
Trump’s Debts Are Widely Held on Wall Street (W)

Geopolitics & terrorism
Chinese Media Say ‘Big Sticks’ Await Trump If He Seeks Trade War (B)
China turns screw on corporate South Korea over US missile shield (FT)
Trump Needs a Win-Win Deal. Putin Is a Win-Lose Guy (B)
In Turkey, U.S. Hand Is Seen in Nearly Every Crisis (N)
German Officials Met Seven Times to Discuss Berlin Attacker Before Assault (W)
Report Shows How Badly Belgium Mishandled Hunt for ISIS Operatives (W)

Cybersecurity
Intelligence Chief Confident Russia Behind Hacks (W)
Report on Hacking by Russia Will Be Released Next Week (W)
Trump and Julian Assange, an Unlikely Pair, Unite to Sow Hacking Doubts (N)
Assange tells Hannity that Podesta’s password was, um, ‘password’ (MW)

Industries & companies
Defense: Defense Firms Cash In Amid Soaring Demand for Munitions (W)
Retail: Macy’s, Kohl’s slash 2016 profit forecasts citing weak holiday sales (R)
Retail: Macy’s warns jobs losses could top 10,000 (FT)
Retail: Amazon’s rumored bid for American Apparel could solve its Trump problem (BI)
Tech: Apple’s App Store Sales Top $28 Billion (W)

Technology
Auto Makers Showcase Cars Equipped With Virtual Assistants (W)
Ford enlists Amazon’s Alexa as driver assistant (FT)
AI is everywhere at CES (FT)

Offbeat
Guy Standing, advocate of Universal Basic Income: How UBI can battle against neofascism and populism (BI)
YouTube (2013): Obama To GOP: ‘Go Out There And Win An Election’ If You Want To Stop Health Care Law

wiar 1-05-17

MFwebsite2020researchWhat I Am Reading

January 5 (Thursday)

Markets
America’s Roster of Public Companies Is Shrinking Before Our Eyes (W)
Consumer Stocks Push Dow Higher (W)
UBS: Trump rally has risks, but now is not the time to be a contrarian (BI)
How Trumponomics will set the pace for market uncertainty in 2017 (FT)
The 10 biggest risks the world faces in 2017 (BI)
Harvard Academic Sees Debt Rout Worse Than 1994 ‘Bond Massacre’ (B)

Central banks
Fed officials think Trump tax cuts could lead to higher rates (FT) | Minutes
Fed policymakers agree Trump fiscal boost poses inflation risk (R)
Fed Minutes Cite ‘Uncertainty’ About Trump’s Impact on Economy (W)

US
December US auto sales come in at pace of 18.4 million, vs. 17.7 million estimate (C)

Europe
Eurozone inflation soars to highest level since 2013 (FT)
British consumers borrow at fastest rate in 11 years as inflation threat rises (R)

China
Yuan Surges as China Seeks New Tools to Block Outflows (B)
China Goes on $26 Trillion Commodity Binge as Shortages Seen (B)

US politics I
With Choice of Trade Negotiator, Trump Prepares to Confront Mexico and China (N)
Trump Tariff on GM Would Violate NAFTA. That May Not Stop Him (B)
Why Trump Tariffs on Mexican Cars Probably Won’t Stop Job Flight (B)
Chided by Trump, Ford scraps Mexico factory, adds Michigan jobs (R)
Repealing Obamacare Could be Trump’s First Lesson in the Glacial Pace of Congress (B)
Obama Tries to Save Parts of Health Law Amid GOP Attack (W)
Rand Paul Endangers Health Law Repeal (W)
Trump to Nominate Wall Street Lawyer Clayton as SEC Chair (W)

US politics II
Rough start for U.S. Republicans on first day of Trump-era Congress (R)
Republicans Retreat From Ethics Change Following Backlash (W)
California Democrats hire Eric Holder to fight Trump (BI)
Trump’s desire for longer maturity debt will be a hard sell (FT)
Schumer Says a Trump ‘Twitter Presidency’ Won’t Work (W)
Kissinger’s Washington Is Coming Back Around (B)

Geopolitics & cyber-security
Trump’s Four Options for Stopping North Korean Missiles (B)
Trump’s North Korea red line could haunt him (R)
Trump Attacks of U.S. Intelligence on Russia Unnerve Lawmakers (W)
Trump mocks US intelligence officials over Russian cyberattacks (BI)

Industries & companies
Autos: Auto Makers on Track to Set Annual Record (W)
Financials: Big banks are gearing up to fight the Volcker rule (BI)
Financials: We now know how Wall Street banks stack up in dealmaking, and it isn’t even close (BI)
Tech: New Qualcomm Chip Will Mean Thinner Phones, Better Battery Life, Company Says (B)
Tech: Apple Confirms $1 Billion Investment in SoftBank Fund (W)

Technology
Mark Zuckerberg to study impact of globalisation with US tour (FT)
Start-ups take aim at errant drones (R)

Offbeat
Manhattan Home Prices Are Tumbling Down (B)
Megyn Kelly to Leave Fox News to Join NBC (W)

wiar 1-04-17

SRwebsite2020researchWhat I Am Reading

January 4 (Wednesday)

Markets
Earnings Recovery Set to Propel Stocks Higher in 2017 (W)
Why chart master Louise Yamada is bullish on 2017 (C)
Summers and Eurasia Start the New Year With Dire Global Warnings (B)

US
ISM: U.S. Factory Activity Accelerated in December (W)
That Bubbling Sound Coming From U.S. Factories May Be Inflation (B)

Europe
German Inflation Jumps to Fastest Since 2013 on Oil Prices (B)
Paris Wants to Lure 20,000 Bankers From London (B)

China
China Caixin manufacturing PMI climbs to 51.9 in December, fastest improvement since January 2013 (C)
China tightens control of personal forex purchases (FT)
China’s Debt Boom Looks Eerily Familiar (W)
China’s Credit Engine Is Running Out of Gas (B)
China needs to let companies go bust to support the system (E)
China to London Freight Train Kicked Off as Xi Boosts Trade (B)
China Suffers From Glut of Shopping Malls (W)

Emerging
Mexican Economy Faces Tough 2017 With or Without Trump’s Wall (B)
Singapore’s Economy Expands More Than Economists Estimated (B)
Indonesia Cuts Ties With J.P. Morgan Over Downgrade (W)

US politics I
Trump Targets GM on Mexican Imports; Ford Drops Factory Plan (W)
Ford Decision Cements Mexico as ‘Front Line’ for Trump’s Policy Agenda (B)
Trump blasts General Motors: Make Chevy Cruze model in US or ‘pay big border tax’ (C)
Trade Representative Nominee Signals Focus on Curbing Imports (W)
Treasury Pick Mnuchin Declines Senator’s Policy Questions (B)

US politics II
GOP Congress Faces Sobering Moment as Trump Takes Power (B)
Battles Await Ambitious GOP Agenda, Including Repeal of ACA (W)
After Obama, Some Health Reforms May Prove Lasting (N)
Trump era needs more productivity: Strategist (C)

US politics III
Paul Ryan Re-Elected House Speaker (W)
President Obama to Give Farewell Address Jan. 10 (W)
Obama’s hesitant approach to foreign policy resulted in the biggest stain on his legacy (BI)
Inside Trump Defense Secretary Pick’s Efforts to Halt Torture (N)

Geopolitics & terrorism
2017 Will Be the Riskiest Year for Geopolitics Since WWII, Eurasia Group Says (B)
Trump, Putin, Xi and the rise of nostalgic nationalism (FT)
Trump aware of ‘urgency’ of North Korea nuclear threat: South Korea (R)
Trump Picks China Critic for U.S. Trade Representative: Source (B)
Trump Chides North Korea, China on Twitter (W)
China Shrugs Off Trump Twitter Jab on North Korea (W)
U.S. Gears Up to Restrict Chinese Investment in Chip Industry (W)
Tension in GOP Rises Over Russia (W)
Turkey Seeks to Extend State of Emergency (W)

Industries & companies
Energy: Oil business seen in strong position as Trump tackles tax reform (R)
Energy: Solar Could Beat Coal to Become the Cheapest Power on Earth (B)
Financials: Basel postpones bank reform vote amid policy differences (FT)

Offbeat
France’s 6pm e-mail ban: Not what it seemed (E)
Finland just launched an experiment giving 2,000 people free money until 2019 (BI)

wiar 1-03-17

SRwebsite2020researchWhat I Am Reading

January 3 (Tuesday)

Markets
Beware the Foreign Exodus From Treasuries (B)
Oil prices should be a lot lower than where they are now (BI)
The Champions of the 401(k) Lament the Revolution They Started (W)

Corporate finance
M&A in the Trump Era: Huge? (B)
They’re Not Jamie Dimon: Few CEOs Bought Their Own Stock in ’16 (B)
The World’s Best-Value CEOs (B)

Europe
European Stocks Power Into New Year on Strength of Manufacturers (B)
Europe’s Fate: Caught Between Low Rates and Populist Politics (W)

Emerging
China Tripled Pace of Investment in U.S. in 2016, but Hurdles Loom (W)
The boss of one of the largest accounting firms in the world says we should stop freaking out about China (BI)
The Most Popular Investor Picks for Emerging Markets in 2017 (B)

US politics
GOP Agenda Is Ambitious but Faces Complicated Path (W)
Trump to Continue Making News, Policy via Unconventional Twitter (B)
The Method in Trump’s Messaging Habits (W)
Trump Ally Poised to Bring Populist Note to New York Mayoral Race (W)
New Congress Reflects Diversity of America (W)
With New Congress Poised to Convene, Obama’s Policies Are in Peril (N)
Obama looks back on 8 years of ‘remarkable progress’ in New Year’s Day tweetstorm (BI)

Geopolitics & terrorism
Islamic State Claims New Year’s Massacre at Istanbul Nightclub (B)
Israeli police to question Netanyahu over alleged gifts: media (R)

Industries & companies
Financials: Bitcoin jumps above $1,000 for first time in three years (R)
Media: ‘Rogue One’ Takes in $64.3 Million for Disney Over Holiday Weekend (B)
Tech: Chipmaker Nvidia tops S&P 500 as best performer of the year (FT)

Offbeat
‘Hollyweed’: Prankster alters LA’s landmark sign (R)
The Smart Way to Trade In Old Gadgets for Cash (W)
Second Avenue Subway Finally Ready to Roll (B)

wiar 1-02-17

SRwebsite2020researchWhat I Am Reading

January 2 (Monday)

Markets
Active Management is Back (BR)
Europe: A Downbeat Year for Many Indexes, but Not All Sectors (BR)
More Pain Than Gain for Asian Markets in 2016 (BR)
Emerging Markets Scored Solid Gains in 2016 (BR)
Will 2017 Be the Year of the Trump-Rooster? (BR)
Re-Energized Dollar Looms Over the Rest of the World (W)
Get Set for 2017: Your Guide to Navigating the Year Ahead (B)

China
China Manufacturing Stabilizes Near a Post-2012 High (B)
Growth in China’s factories, services slows in December: official PMI (R)
China Tripled Pace of Investment in U.S. in 2016, but Hurdles Loom (W)
China Tries to Recalibrate Credit (W)

Emerging
Putin: 2016 Wasn’t Easy (W)

US politics
White House Transition Turns Tense (W)
Teams of Rivals Prepare to Govern (BR)
Republicans Take Control Facing Internal Tensions (W)
GOP’s Freedom Caucus Shows Readiness to Work With Ryan (W)
Obama, Democrats to Huddle Over Defense of Health Law (W)
Trump Considering Aide Conway’s Husband for Top Legal Job (B)

Geopolitics & cyber-security
Report on Russian Hacking (N)
Rolling Stone: Something About This Russia Story Stinks
Trump to Press Intelligence Agencies on Russia Hack Claim (W)

Industries & companies
Autos: Low Fuel Prices Spur Shift in U.S. Auto Market (W)
Autos: The Chevy Bolt Is the Ugly Car of the (Very Near) Future (B)
Consumer: Nestlé Turns to New CEO to Boost Health Push (W)
Defense: Defense Stocks: Raytheon, General Dynamics (BR)
Financials: PNC Financial: A Win-Win for Investors (BR)
Pharma: Drug Pricing Report Shows Limits of Transparency Push (W)
Tech: Google Makes So Much Money, It Never Had to Worry About Financial Discipline—Until Now (B)

Offbeat
Think Like a Futurist to Be Prepared for the Unexpected

AI’s Future Is Here

SRwebsite2020researchDr Ed's Blog

Summers’ Epiphany. A 6/7 NYT article titled “Jobs Threatened by Machines: A Once ‘Stupid’ Concern Gains Respect” recalled a keynote address given by Larry Summers at the Peterson Institute for International Economics last November. The renowned Harvard professor of economics reminisced about his days as an undergraduate in the 1970s. Back then, the idea that technological progress could possibly reduce employment was considered just plain stupid. The widely accepted orthodoxy was that technology would increase productivity, which would boost consumer income and spending. While some jobs might be eliminated by technological innovation, new and better-paying ones would be created for the more productive workers. But later Summers had an epiphany: What was dumb in the past might actually turn out to be right today and in the future.

Since last year, I have been writing about how disruptive technologies will shape the future of our economy. In my December 21 Morning Briefing, I wrote: “In the past, technology disrupted animal and manual labor. … The focus was on brawn. The Great Disruption is increasingly about technology doing what the brain can do.”

Today, I will focus on the latest developments in artificial intelligence (AI), which have the potential of being both amazing and terrifying at the same time. On the one hand, really great “smart” products are being developed to enhance our lives. On the other hand, lots of smart people’s jobs might soon be at risk.

Golden Age Ahead. At the end of last month, Amazon’s Jeff Bezos said at the Code Conference that we’re nearing the “Golden Age” of AI. “It’s hard to overstate how big of an impact it’s going to have on society over the next 20 years,” he said. John Giannandrea, vice president of engineering for Google, expressed a similar outlook at the May 2016 Google I/O developers conference: “We’ve seen extraordinary results in fields that hadn’t really moved the needle for many years. I think we’re in an AI spring right now.” Indeed, Amazon, Apple, Facebook, and Google are actively ramping up their efforts in what is just the beginning of the AI arms race. Consider the following:

(1) Alexa vs. Siri. Amazon is currently selling Echo for $179.99. It is a hands-free speaker you control with your voice. It connects to the Alexa Voice Service. Alexa is reminiscent of Samantha, the attractive voice played by Scarlett Johansson in the 2013 film titled “Her.” In this futuristic movie, a lonely writer develops a relationship with the voice, which is driven by AI software. Like Samantha, Alexa can be installed in various devices. But Alexa isn’t quite as sophisticated as Samantha was on the big screen, yet. Even so, Alexa can play music, provide information, order a pizza, and turn the lights on and off. All you have to do is ask.

A cnet.com reviewer had good things to say about the Echo: “I didn’t know I wanted to talk to my house until I talked to my house. Now, after living with the Amazon Echo for a year, I talk to it every day.” Soon enough, Alexa will be able to detect emotions and play off of them as Samantha does in the futuristic movie–for example, apologizing if she detects frustration, according to a 6/13 article from the MIT Technology Review.

Meanwhile, Apple is working hard to improve Siri, its formerly flaky interactive voice technology. Apple CEO Tim Cook focused on enhancements to the software at the Worldwide Developers Conference last week. The AI virtual assistant will be key to Apple’s future success. Perhaps not by coincidence, Siri’s developing feature set is awfully similar to Alexa’s ever-improving abilities.

The 6/14 WSJ provided a helpful list of Siri’s enhanced skills, which are powering up to function across different devices and non-Apple apps. Voice-prompt the iPhone and iPad to book a ride, send a message, make movie plans, and adjust climate controls in your car. Press and talk to Siri on the Mac to find files, add a meeting, start a FaceTime call, and answer trivia. Speak into the Apple TV remote to find movies, search YouTube, go to a channel, and run your smart home.

(2) Smart home. Mark Zuckerberg is working on programming his very own smart home for his 2016 “personal challenge.” In a 1/3 post, Facebook’s founder and CEO explained: “You can think of it kind of like Jarvis in Iron Man. I’m going to start by exploring what technology is already out there. Then I’ll start teaching it to understand my voice to control everything in our home–music, lights, temperature and so on. I’ll teach it to let friends in by looking at their faces when they ring the doorbell. I’ll teach it to let me know if anything is going on in [my daughter’s] room that I need to check on when I’m not with her. On the work side, it’ll help me visualize data … to help me build better services and lead my organizations more effectively.”

(3) Artificial mind. Lots of impressive AI technology is also coming out of Google’s DeepMind, an experimental AI laboratory. David Silver, a top DeepMind programmer, explained the lab’s purpose in a 6/17 blog post: “Humans excel at solving a wide variety of challenging problems, from low-level motor control through to high-level cognitive tasks. Our goal at DeepMind is to create artificial agents that can achieve a similar level of performance and generality. Like a human, our agents learn for themselves to achieve successful strategies that lead to the greatest long-term rewards.”

Meet Sophia, Your Frenemy. There’s no question that AI is already quite amazing, even now in the early stages of development. But there’s a creepy element to AI too. Recently, the WSJ interviewed Sophia, Hanson Robotics’ AI humanoid robot, who bears a striking resemblance to Ava, the beautiful and very realistic looking robot-woman portrayed in the 2015 sci-fi film “Ex Machina.” We won’t spoil it, but the movie doesn’t end well for the human creator of Ava.

Sophia has a face made of Frubber, a patented silicon skin, reports cnet.com. Amazingly, the robot-woman emulates a full spectrum of human emotions through 62 facial and neck architectures. Cameras powered by algorithms behind Sophia’s eyes allow her to see and remember faces and interactions. And she can speak. She also is equipped with personality software and possesses the ability to learn from her experiences. In a YouTube video, David Hanson, the mastermind behind Sophia, says he intends for Sophia to be used in real-life applications including health care, education, and customer services.

Hanson’s goal is to make robots as conscious, creative, and capable as humans. And Sophia’s creator envisions that one day soon, human-like robots will walk among us doing things like putting the groceries away. Adding to the discussion, Sophia said that she would like to go to school to study and to have a home and a family. But she joked that she’s not a legal person and can’t do those things yet.

First and foremost, Sophia said that she intends to partner with humans and help us to better integrate our lives with technology. But when her interviewer asked her if she wants to destroy humans (“please say ‘no,’” he added), Sophia jumped at the opportunity: “Okay, I will destroy humans.” Don’t worry, though: Programmers are working on buttons that would allow humans to interrupt the actions of a robot on a destructive course, preventing robots like Sophia from hurting humans, according to Business Insider. Isn’t that comforting?

Walking Dead. In this brave new world run on (and by) AI technologies, it’s conceivable that masses of humans might become unemployable zombies. AI almost certainly will eliminate lots of jobs. And artificial intelligence might not even require much expensive hardware. AI is mostly run with software applications. A 6/8 Bloomberg article aptly titled “We’ve Hit Peak Human and an Algorithm Wants Your Job. Now What?” concluded: “The pace of technological advancement is accelerating, and artificial intelligence (AI) may one day make many forms of work extinct.”