Written by Econintersect
Early Bird Headlines 16 January 2015
Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
Global
Buckle your seatbelts: China could rock markets next week (CNBC) Global markets are poised for more volatility next week with key economic data from China expected to show that the world’s second-largest economy continues to grow at its slowest pace since the financial crisis, despite aggressive measures taken by the central bank to boost growth.
Oil plunges below $29 on prospects of more Iran crude, China worries (Reuters) Oil prices crashed 6 percent on Friday to close below $30 a barrel for the first time in 12 years, resuming this year’s breathtaking rout as Chinese stock markets fell further and traders braced for an imminent rise in Iran’s exports. The article begs the question: How low can oil go? The best guess from those quoted: $25 a barrel “is quite possible, but not much lower than that.” See next article.
Oil at $10 a barrel – maybe even under $0? Analysts play ‘how low can you go’ (MarketWatch) Few in 2014 called oil below $30 a barrel – and yet there we are this week. And that lack of prescience hasn’t stopped analysts from continuing to consult their crystal balls. For many, it now looks like a game of “how low can you go?” In the new year, Morgan Stanley has said $20 is possible, Dennis Gartman sees $15and Standard Chartered may have undercut the other big banks with its $10 call. But actuary Gail Tverberg over at the Our Finite World blog appears to have outdone them all. She has hinted that crude might even manage to trade below $0 a barrel, though she notes that may not actually be possible.
Walmart is ending its Express concept and closing 269 stores (The Washington Post) The retail giant plans to shutter 154 U.S. stores and 115 in other countries. All 102 small format Express stores are being closed. The move reflects a shift in tactics in which the retailing giant will focus more on building up its e-commerce firepower and improving its massive supercenters and grocery-centric Neighborhood Market stores. More details in nect article.
Wal-Mart to close 269 stores as it retools fleet (CNBC) The world’s largest retailer also will open as many as 405 stores globally in the coming fiscal year, as it shifts its focus toward Supercenters and Neighborhood Markets in profitable locations.
U.S.
U.S. stocks post worst 10-day start to a year in history (MarketWatch) U.S. stocks closed sharply lower Friday, locking in the worst 10-day start to a calendar year ever, as oil prices plunged and investors worried about slowing growth in the U.S. During the course of the session, the S&P 500 broke below its Aug. 24 low – which several market strategists said would be tantamount to a major sell signal – to trade at its lowest level since October 2014. The Dow Jones Industrial Average was briefly down as much as 537 points. Gary at GEI Market Close had the details.
Obama administration halts new coal leases on federal land (Associated Press) The Obama administration is imposing a moratorium on new coal leases on federal lands, arguing that the $1 billion-a-year program must be modernized to ensure a fair financial return to taxpayers and address climate change. The program has remained largely unchanged for more than 30 years and requires a comprehensive review, Interior Secretary Sally Jewell said Friday in announcing the halt. The move drew praise from environmental groups and Democrats, but condemnation from Republicans who called it another volley in what they assert is a “war on coal” being waged by President Barack Obama.
Rate Rise Calls Evaporate, Murmurs Of Fed Reversal (Financial Planning) The worst ever start to a year for financial markets has left traders and economists rethinking the global monetary policy outlook, with some predicting the Federal Reserve will quickly reverse last month’s historic rate rise. The Fed lifted U.S. interest rates for the first time in nearly a decade on Dec. 16, signaling its faith that the economy had finally put the 2007-08 financial crisis behind it.
UK
RBS cries ‘sell everything’ as deflationary crisis nears (The Telegraph) This was in the paper Monday – Bet you wish you read The Telegraph.
‘Financial carnage’ wipes £113bn off FTSE in ten days as China enters bear market (The Telegraph) London joins New York with the dubious entry in the record book.
Burkina Faso
10 bodies found in Burkina Faso cafe after al-Qaida attack (Associated Press) Heavy gunfire erupted early Saturday as forces from Burkina Faso and France worked to overtake a luxury hotel that had been seized by al-Qaida militants the night before, seizing and killing an unknown number of hostages. At least 10 bodies had been found in the aftermath so far, a government minister said. For the geographically challenged, the map below (from World Atlas) locates Burkina Faso (once known as Upper Volta). See also breaking news: Burkina Faso terror: Security forces raid besieged hotel, free 63 hostages (CNN).
Taiwan
Aside from China, trade, identity, pork are big issues in Taiwan election (CNBC) Taiwan’s general election on Saturday has Beijing on edge, with the pro-independence DPP expected to easily win the leadership race as well as the concurrent parliamentary election. But there are other, less high-profile topics voters are equally focused on, including trade, technology and the Taiwanese national identity. This article presents all the hot button issues in this small but feisty democracy.
