15Aug2017 Pre-Market Commentary: Wall Street To Open Higher, WTI Crude Slips To Low 57 Handle, US Dollar Showing Strength, Trump Bull Train Still On Track For Higher Numbers, But For How Long

Here is the current market situation from CNN Money

European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.47% while France’s CAC 40 is up 0.42% and Germany’s DAX is up 0.26%.

Shares rally, yen and gold fall as Korea tensions ease

LONDON (Reuters) – Shares rose on Tuesday, while the Japanese yen and gold dropped after North Korea’s leader delayed a decision on firing missiles towards Guam, easing tensions and prompting investors to buy riskier assets.

Futures higher as North Korea tensions fade

(Reuters) – U.S. stock index futures were higher on Tuesday as North Korea’s leader delayed a decision on firing missiles towards the U.S. Pacific territory of Guam, pointing to receding tensions between the United States and North Korea.

Three CEOs resign from Trump council over Charlottesville

(Reuters) – The chief executives of Intel Corp, Merck & Co Inc and Under Armour Inc resigned from U.S. President Donald Trump’s American Manufacturing Council on Monday, following Trump’s initially tepid response to weekend violence at a rally of white supremacists in Charlottesville, Virginia.

Oil traders expect Asia to import more Venezuelan crude if U.S. sanctions kick in

SINGAPORE/HOUSTON (Reuters) – Asia would be the biggest beneficiary of any potential sanctions by the United States on Venezuela’s oil sector, said traders and analysts, as exports from the South American OPEC member could be redirected to the region, filling a vacuum left by producer supply cuts.

China says it will defend interests if U.S. harms trade ties

BEIJING (Reuters) – China will take action to defend its interests if the United States damages trade ties, the Ministry of Commerce said on Tuesday, after U.S. President Donald Trump authorized an inquiry into China’s alleged theft of intellectual property.

Uber investor gave Kalanick a month before suing to force him off board

(Reuters) – Venture capital firm Benchmark Capital said on Monday it gave Uber Technologies Inc and its ousted chief executive, Travis Kalanick, a month to review its recommendations before filing a lawsuit last week to force Kalanick off the board and rescind his ability to fill three board seats.

Linde says acceptance period for Praxair merger starts

FRANKFURT (Reuters) – German industrial gases group Linde said the 10-week acceptance period for its proposed $74 billion merger with U.S. peer Praxair started on Tuesday and would run through Oct. 24.

Air Berlin files for insolvency after Etihad withdraws support

BERLIN (Reuters) – Struggling German airline Air Berlin filed for insolvency on Tuesday after years of losses caught up with it and shareholder Etihad withdrew funding, with rival Lufthansa saying it was in talks to take over parts of its business.

Home Depot tops profit, comp sales estimates; raises forecast

(Reuters) – Home Depot Inc’s quarterly profit and comparable sales beat Street estimates as homeowners continued to invest in their homes that are appreciating in value.

South Korea Warns Trump Only It Can Declare War On North

A day after US Joint Chiefs of Staff Chairman Joseph Dunford promised him that the US would exhaust all diplomatic options, including another round of UN sanctions, before resorting to a “military solution” in its simmering conflict with North Korea, South Korean President Moon Jae-in reminded Washington during a forceful Tuesday speech that the US would need to seek, and receive, South Korea’s consent before risking another armed conflict on the Korean peninsula, signaling his country will no longer stay quiet as tensions escalate with its northern neighbor.

As Bloomberg summarizes, “Moon asserted the right to veto any military action against Kim Jong Un’s regime, saying that decision should be made by “ourselves and not by anyone else.” He vowed to prevent war at any cost – a statement that drew a sharp contrast with President Donald Trump, who has warned of “fire and fury” if North Korea continues to threaten the U.S.”

Some highlights from his speech:

“Without South Korea’s consent no one can determine military actions on the Korean peninsula”

South Korea govt will prevent war at any cost; “There will be no war repeated on the Korean peninsula”

South Korea will work closely with U.S. to overcome security threats posed by North Korea’s nuclear missiles

South Korea govt will “strengthen diplomatic efforts in order not to shake principles for a peaceful resolution”

Sanctions and talks should go together; “Sanctions are not to heighten military tensions but to bring North Korea to talks”

Moon’s speech coincided with the Korean independence-day holiday on Tuesday, which is celebrated in both the North and the South. The holiday comm …

Frontrunning: August 15

White House Risks a Backfire Over China and North Korea (WSJ)

Three More CEOs Turn Their Backs on Trump (BBG)

Cities ramp up removal of Confederate statues (Reuters)

Moon Vents Korea Frustration by Asserting Right to Veto U.S. War (BBG)

Iran says its drones near U.S. vessels are safe, following rules (Reuters)

U.S. sanctions hit Russian hopes of a ‘Trump bump’ for investment (Reuters)

China says it will defend interests if U.S. harms trade ties (Reuters)

Defaults Increase for ‘Green’ Loans (WSJ)

Nuclear Power’s Woes Imperil U.S. National Security, Moniz Says (BBG)

Britain asks for interim customs deal with EU, new trade deals post-Brexit (Reuters)

The Nordic Bank That Doesn’t Want Corporate Cash (BBG< …

Buy Gold Urges Dalio on Linkedin – “Militaristic Leaders Playing Chicken Risks Hellacious War”

Buy Gold Urges Dalio on Linkedin – “Militaristic Leaders Playing Chicken Risks Hellacious War”

– Don’t let “traditional biases” stop you from diversifying into gold – Dalio on Linkedin
– “Risks are now rising and do not appear appropriately priced in” warns founder of world’s largest hedge fund
– Geo-political risk from North Korea & “risk of hellacious war”
– Risk that U.S. debt ceiling not raised; technical US default
– Safe haven gold likely to benefit by more than dollar, treasuries
– Investors should allocate at least 5% to 10% of assets to gold
– “If you don’t have 5-10% of your assets in gold as a hedge, we’d suggest that you relook at this”
– “If you do have an excellent analysis of why you shouldn’t have such an allocation to gold, we’d appreciate you sharing it with us …”

Image courtesy of Quotefancy

Man Plunges To Death From Seventh Floor Of London Stock Exchange

An unidentified man fell to his death from the seventh floor of the London Stock Exchange on Tuesday, Reuters and British news outlets reported.

City of London Police investigating after a man died falling from upper floor in London Stock Exchange – incident treated as non-suspicious

— Sky News Newsdesk (@SkyNewsBreak) August 15, 2017

“We were called to the London Stock Exchange in Paternoster Square on Tuesday, 15 August at 9.58am to a report of a man who had fallen from an upper floor in the building to the ground” City of London police said. “The man was pronounced dead,” police said, adding that they were treating the incident as non-suspicious.

According to The Independent, the man is believed to fallen from the building at around 9.45am, landing in the front lobby. Police were called at 9.58am and the man was pronounced dead at 10.10am today.

Shocked LSE workers struggled to comprehend what had happened, one broker said: “It’s horrifying, that’s all I can say.”

A fellow broker explained: “I came in this morning and there was a screen up in the reception lobby area and ambulances and police.

“The building has walkways on each floor and near the lifts there is a gap and you can see all the way up and down.”

Workers said that the 7th floor was full of conference rooms and no firm was based there.

They added: “London Ambulance Service attended and the m …

How to Fight a Giant Like Alibaba? Lots of Friends

JD.com, China’s No. 2 online e-commerce player, has lined up formidable friends in its fight against bigger rival Alibaba.

Garmin’s Smartwatches Tick the Right Boxes

Smartwatches have been a turbulent business, but Garmin has mapped out a profitable and growing niche despite strong competition from companies like Apple and Fitbit.

The China Growth Slowdown Has Arrived

After surprisingly strong second-quarter growth, July data contained clear signals of slowing investment and weaker consumption.

Infographic Of The Day: Battle Of The BBQs – Charcoal Vs. Gas

This infographic outlines the pros and cons of Gas and Charcoal fueled BBQs

Early Headlines: Asia Stocks And Dollar Up, Oil Flat, Gold Down, CEOs Quit Trump, DoJ Wants Data From Anti-Trump Sites, Macron Drops In Polls, German GDP Slips, N. Korea Blinks, Venezuela Military Readies, And More

Written by Econintersect

Early Bird Headlines 15 August 2017

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.

Economic Report: Empire State factory index throttles to highest in nearly three years

The manufacturing index for the New York region jumped to its highest since September 2014

Capitol Report: Trump retweets, then deletes, message saying ‘He’s a fascist’

President Donald Trump on Tuesday retweeted, and later deleted, a Twitter message that said he is a “fascist.”

Outside the Box: Why apartment REITS are not a good home for your money

Rent growth is the lowest in seven years for some apartment landlords.