June 9, 2016
US FINANCIAL MARKET
STOCKS DECLINE ALONG WITH BOND YIELDS
- The yield on the benchmark 10-year Treasury note declined to 1.662%.
- Data on Thursday showed consumer inflation in China eased in May for the first time in eight months.
- ECB President Mario Draghi warned that a lack of economic reforms is making the bank’s job harder.
- South Korea’s central bank unexpectedly cut its main policy rate to a record low.
Revenue Growth Picks Up at U.S. Service-Sector Firms
- Sturdy revenue gains across the sprawling U.S. service sector pointed to the economy’s resilience in early 2016.
- Total revenue at service–providing firms rose an estimated 3.6% in the first quarter compared with a year earlier.
- The current Model S starts around $76,000 and is often delivered to customers at a price of about $100,000.
- The new versions, the Model S 60 and the Model S 60D, will have slightly less range and a smaller battery pack than the Model S. The newer models will have a range of more than 200 miles with a starting price of $66,0000.
- Amazon has launched a British version of its U.S. AmazonFresh food delivery service.
- In a long-anticipated move to break into Britain’s 178 billion pounds ($257 billion) grocery market, the world’s largest online retailer launched AmazonFresh in parts of central and east London.
- Britain’s online food market is expected to nearly double to 17.2 billion pounds in the five years to 2020, according to industry research group IGD.
- More than 32 million Twitter login names and passwords are reportedly being offered for sale online.
- A hacker using the name Tessa88 is asking for 10 bitcoins (£4,000) from anyone that wants to copy the list.
- “We have very strong evidence that Twitter was not hacked, rather the consumer was,” said the company in its blog.
- A breakdown of email addresses in the list revealed that Russian accounts feature prominently at 7.4 million accounts.
- Diet Pepsi’s declining sales outpace other diet sodas despite move to different sweetener.
- U.S. sales fell 12% in the 12 weeks ended May 21, compared with 6.7% for all diet sodas.
- Billionaire investor sees opportunities to profit from various economic and political issues afflicting the world.
- Soros Fund Management LLC, which manages $30 billion for Mr. Soros and his family, sold stocks and bought gold and shares of gold miners.
- Company says two or more single-use packets a load might be better; advice comes amid tepid sales.
- While competitors advise tossing in two packets for the largest loads, P&G is alone in recommending triple dosing.
- P&G’s changing recommendations for a clean load of laundry come at a time when the company is struggling with scant growth and few new hit products.
US ECONOMY & POLITICS
Jobless Claims fell 4,000 to a very low 264,000
- This is the third straight sub 270,000 level and makes a distant memory of the early May spike near 300,000.
- Continuing claims fell a very sharp 77,000 in lagging data, with the 4-week average down 18,000 to 2.145 million.
- Forecasters see U.S. adding 155,000 jobs a month in next 12 months, down from 180,000 in May poll.
- Industry added 1,665 megawatts in first quarter, GTM says
- Solar accounted for 64% of new capacity, wind added 33%.
- The U.S. solar industry will add 14.5 gigawatts this year, mainly with large utility-scale power plants, almost double the 7.5 gigawatts installed last year.
EUROPE & WORLD
China’s Consumer Inflation Cools, Stoking Stimulus Expectations
- Consumer-price index rises 2.0% in May, easing from a 2.3% increase in April.
- Foreigners sold a net $42 billion of Japanese equities in the first five months of the year.
- Foreign investors, which account for about one-third of Japanese equities holdings, sold a net ¥7.6 trillion of Japanese equities over the 12 months through May.
- They were net buyers of ¥20.3 trillion during the previous 2½ years.
- Exports shrank for the 17th-straight month in May.
- The Bank of Korea lowered its base rate Thursday by a quarter of a percentage point to 1.25%.
- The Danish government on Thursday reached agreement with coalition parties to proceed with the purchase of 27 F-35A stealth fighters from U.S. defense giant Lockheed Martin.
- Denmark would be the 11th country to buy the radar-evading F-35A jets, joining the United States, Britain, Australia, Turkey, Italy, Norway, the Netherlands, Israel, South Korea and Japan.
- Russia presented a new medium–range passenger plane which state media said was superior to its Western-made counterparts in many respects.
- Irkut Corporation rolled out its new MC-21 passenger plane which is still undergoing testing but is due to enter serial production next year.
- The plane is sometimes also known as MS-21.
- The plane will be built in two variants, the MC-21-300 which will have 160-211 seats, and the MC-21-200 which will have 130–165 seats.
- Deliveries are expected to start in 2018.
- Saudi Arabia will offer foreign and local property developers partnership deals in a vast housing construction program that aims to build 1.5 million homes over the next seven or eight years.
- A shortage of affordable housing for a young and growing population of about 21 million citizens is one of Saudi Arabia’s biggest social and economic problems.
- About 7,000 people work at Nissan’s Sunderland factory, the U.K.’s largest auto plant producing some 500,000 cars a year.
- Nissan executives, like those at other auto manufacturers that build cars in the U.K., have opposed the U.K.’s exit.
TODAY in HISTORY
- Author Charles Dickens died (1870)
- China agreed to lease Hong Kong to Britain for 99 years (1898)
- Donald Duck made his screen debut in The Wise Little Hen (1934)
- The Republic of Iceland was established (1944)
- Japan’s Crown Prince Naruhito married commoner Masako Owada (1993)
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