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25Sep2017 Market Close: Wall Street Closes Lower As Tech Stocks Sell-off Deepens Fears Of Shift Away From Sector And NOKO Warnings Spook Investors, WTI Crude Continues To Trade Upward

Written by Gary

The major stock market indexes fell fractionally today (SPY -0.2%) after technology stocks dropped sharply as investors look elsewhere for cheaper opportunities.

Todays S&P 500 Chart

The Market in Perspective

Here are the headlines moving the markets.

Nets welcomes $5.3 billion takeover bid by Hellman & Friedman

COPENHAGEN (Reuters) - Payments firm Nets on Monday welcomed a 33.1 billion Danish crown ($5.3 billion) bid from U.S. firm Hellman & Friedman, marking what could be one of the largest European private equity takeovers in recent years.

Tech stocks sell-off deepens fears of shift away from sector

SAN FRANCISCO (Reuters) - Technology stocks including Facebook , Microsoft and Alphabet dropped sharply on Monday, increasing worries that the top-performing sector is falling out of favor as investors look elsewhere for cheaper opportunities.

Uber rival Lyft met London transport officials, documents show

FRANKFURT/LONDON (Reuters) - Lyft, Uber's closest U.S. rival in the taxi-hailing business, met repeatedly with officials from London's transport regulator over the past year, a sign it may be targeting the city for international expansion.

Apple shares flirt with correction territory

SAN FRANCISCO (Reuters) - Shares of Apple Inc dipped on Monday and flirted with correction territory following a report that the company had told suppliers to scale back shipments of parts for its upcoming iPhone X.

Fed policymakers clash on outlook for inflation

SYRACUSE, N.Y./GRAND RAPIDS, Mich. (Reuters) - A debate within the Federal Reserve over the outlook for U.S. inflation burst into public view just days after a rate-setting meeting in Washington, with one central banker saying inflation weakness is fading and another suggesting he's nervous it won't.

Wall St. falls on North Korea warnings, tech selloff

NEW YORK (Reuters) - Wall Street fell on Monday, as a selloff in technology shares dragged the Nasdaq down more than 1 percent, while North Korea's latest warnings to Washington added to a cautious tone.

Top U.S. NAFTA negotiator sees no problem with pace of talks

OTTAWA (Reuters) - The top U.S. negotiator at talks to modernize the NAFTA trade pact on Monday dismissed questions about why his team had so far failed to produce specific proposals on key issues, saying "I don't see a problem."

SEC chairman belatedly learned of 2016 agency hack: testimony

WASHINGTON (Reuters) - The chairman of the U.S. Securities and Exchange Commission belatedly found out in August, about three months after being confirmed, that hackers breached the regulator's database of corporate announcements in 2016, according to prepared congressional testimony seen by Reuters on Monday.

ABB buys GE business for $2.6 billion in bet it can boost margins

ZURICH (Reuters) - Power grids maker ABB is buying General Electric's Industrial Solutions business for $2.6 billion in a bet it can improve the division's lackluster margins over the next five years, the Swiss engineering company said on Monday.

Forget Taxes: What if Estonia Made More Money Selling Services?

Via The Daily Bell

$60 Billion plus is the U.S. dollar equivalent to how much Bitcoin is currently in circulation. That amount of money would keep the Estonian government running at current expenditures for almost 60 years.

$60 billion is more than double Estonia's Gross Domestic Product.

So what if Estonia released a cryptocurrency that was that successful? It's not a stretch to think the first government-sponsored crypocurrency would do as well or better than Bitcoin. It would still have to be structured properly on the blockchain with secure technology. But the legitimacy an actual country and government could give to a digital cryptocurrency is immense.

Just from the money Estonia made off a Bitcoin level token offering, they wouldn't have to charge taxes anymore. The country could become a bastion of unprecedented wealth, as every investor and business in the world would want to move to a zero tax rate jurisdiction.

The idea has been floated to start a digital currency based on the Estonia e-residency program.

But the idea is still in the infant stages, not an official government proposal as some rumors indicated. The confusion came from the fact that the Managing Director of Estonia's e-residency program Kaspar Korjus posted an article discussing the possibility of a government-backed cryptocurrency.

This would enable Estonia to invest in new technologies and innovations for the public sector, from smart contracts to Artificial Intelligence, as well as make it technically scalable to benefit more people around the world. Estonia would then serve a model for how societies of the future ...

Levered Loan Volumes Soar Past 2007 Levels As "Cov-Lite" Deals Surge

If a surge in covenant-lite levered loans is any indication that debt and equity markets are nearing the final stages of their bubbly ascent, then perhaps now is a good time for investors to take their profits and run. As the Wall Street Journal points out this morning, levered loans volumes in the U.S. are once again surging, eclipsing even 2007 levels, despite the complete implosion of bricks-and-mortar retailers and continued warnings that "the market is getting frothy."

Volume for these leveraged loans is up 53% this year in the U.S., putting it on pace to surpass the 2007 record of $534 billion, according to S&P Global Market Intelligence's LCD unit.

In Europe, recent loans offer fewer investor safeguards than in the past. This year, 70% of the region's new leveraged loans are known as covenant-lite, according to LCD, more than triple the number four years ago. Covenants are the terms in a loan's contract that offer investor protections, such as provisions on borrowers' ability to take on more debt or invest in projects.

"If feels like the market is getting frothy," said Henrik Johnsson, co-head of global debt-capital markets at Deutsche Bank AG . "We're overdue a correction."

Meanwhile, volumes are surging even as traditional lender protections have become basically non ...

Buffett, Boomers, & The End Of A Bygone Era

Authored by Paul Brodsky via Macro-Allocation.com,

Golden Age

Once upon a time the capital markets consisted of a fairly closed community, comprised on one side by mostly clever, well-connected men working together in syndicate to maintain control over national economic and financial affairs, and on the other side by mostly high earners spread disparately across the land hobnobbing with the syndicate's local representatives.

It was a privileged ecosystem sanctioned by legally-greased law makers and reluctantly accepted by the great unwashed that acquiesced because capitalism was better than recently defeated fascism and postWar communism, and because, with hard work and production, they too could join the club.

A sequential series of naturally-occurring events successfully transformed and democratized the formerly clubby ecosystem, but in doing so embedded CAT 5 risks into the global productive economy. Consider...



Over-spending by US lawmakers in the 1960s led to the end of the global fixed exchange rate monetary system in the 1970s. US dollars and global assets could begin to be leveraged without limit. Global exporters of oil demanded more money in exchange for their finite resource.

In the early 1980s, the value of dollars (i.e., US interest rates) was raised to levels that created demand to hold them again, which in turn allowed global trade could resume.

Wall Street outsider, Drexel Burnham, using unregulated credit as tool to challenge the control of businesses and asset prices formerly determined unilaterally by the closed ecosystem.

Self-directed retirement accounts were created in 1986. They were promoted and adopted throughout society and opened the door for widespread interest in stocks and bonds.

The advent and broad adoption of digital technology in the 1980 ...

White House: "We Have Not Declared War On North Korea; That's Absurd"

Following the startling, impromptu allegation on Monday morning by North Korea's foreign minister Ri Yong Ho, who accused Trump of declaring war on North Korea, and warned Pyongyang would shoot down US jets, White House press secretary Sarah Huckabee Sanders on Monday dismissed North Korea's claims as "absurd."

"We have not declared war on North Korea and frankly the suggestion of that is absurd," Sanders said during today's press briefing.

Sanders: "We have not declared war on North Korea" pic.twitter.com/3Xxnyq80v7

— Washington Examiner (@dcexaminer) September 25, 2017

As a reminder, North Korea's foreign minister said that Trump's speech to the United Nations last week and his subsequent tweets were a "declaration of war." "In light of the declaration of war by Trump, all options will be on the operating table of the Supreme leadership of DPRK," Ri Yong Ho said. North Korea has also threatened to shoot down U.S. aircraft over international waters.

"It's never appropriate to shoot down another country's aircraft when it's over international waters," Sanders responded. "Our goal is still the same. We continue to seek the peaceful denuclearization of the peninsula. That's our focus. Doing that through both the most maximum economic and diplomatic pressures as possible at this point."

On Saturday, Ri delivered a speech at the UN General Assembly in which he stressed that North Korea would inevitably target the US mainland with missiles as Trump called Pyongyang's leader a "rocket man" on a suicide mission.

The threat to shoot down US ...

Funeral Stock Is Not Dead Yet

The death care business has boomed lately and is in a demographic groove, but consider recent loser StoneMor instead of industry leader Service Corp.

Still Time to Ride the Payments Deal Wave

Sometimes the public just doesn't appreciate a good thing. That anyway is the view of Danish payments company, Nets, which is recommending a $5.3 billion private-equity buyout offer barely a year after it listed.

AIG's Delicate Dance With Regulators

While the debate goes on about how AIG should be treated by regulators, more significant changes are happening behind the scenes at the company

Deep Dive: More than half of these high-yield dividend stocks are on sale

These consistent dividend payers have yields ranging from 5% to 12.5%. By Phil van Doorn.

Deep Dive: This rare utility fund is fueled by growth in the natural gas industry

The Hennessy Gas Utility Fund forgoes big dividend income in search of companies that are expanding, writes Phil van Doorn.

The Tell: Hedge-fund titan Dalio says income inequality is the gravest issue facing U.S.

The rich are getting richer, and this trend has become so pronounced that even the wealthiest Americans, who have reaped the lion's share of economic gains in recent years, are sounding the alarm bell.

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To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

gary@econintersect.com

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