Links for Aug 29 2016

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When the Federal Reserve speaks, the big investors listen, Jim Cramer told his Mad Money viewers Monday. Now that the possibility of not one but two interest rate hikes may be on the table for later this year, the big money managers are springing into action. "The that led us higher in the past are no longer in charge," Cramer explained. Big money managers are moving money into the sectors that prosper from economic growth. Sectors like the banks profit from a growing economy and higher net interest margins. Cramer said a growing economy is also great news for global industrials, such as Eaton (ETN) and Honeywell (HON) and railroads like CSX (CSX) . Other hot sectors will now be paper and chemicals, along with tech stocks like Microsoft (MSFT) and Cisco Systems (CSCO) . Cramer is also bullish on chipmakers including NXP Semiconductor (NXPI) and others that may become the takeover targets.

Jim Cramer's 'Mad Money' Recap: These Are the Sectors to Buy Now - TheStreet

Japanese household spending fell less than expected in July and the jobless rate hit a two-decade low, offering some hope for policy makers battling to pull the world's third-largest economy out of stagnation. But with the economy barely growing and inflation sliding further away from the Bank of Japan's 2 percent target, a majority of economists expect the bank to ease further next month, when it conducts a comprehensive review of the effects of its existing stimulus programme.

Japan household spending falls less than expected, jobless rate hits 21-yr low

Policymakers think new tools might be needed in an era of slower economic growth and a potentially giant and long-lasting trove of assets held by the Fed. And they are convinced the time to vet them is now, while rates look to be heading up. "Central banking is in a brave new world," Atlanta Fed President Dennis Lockhart said in an interview on the sidelines of the conference. At the center of the Fed's discussions is its $4.5 trillion balance sheet, built up by bond-buying sprees to combat the 2007-09 recession but which has been criticized by many lawmakers. While policymakers have maintained the Fed should eventually reduce its bond holdings, Lockhart said some officials were closer to accepting that they needed to learn to live with them.

As Fed nears rate hikes, policymakers plan for 'brave new world'

Typically, the yellow metal and U.S. Treasuries market move in opposition as investors shift from one to the other in search of a safe haven amid changing economic conditions. However, Dennis Gartman, editor & publisher of "The Gartman Letter", highlighted some very unusual activity that's been underway in recent months. "Having been at this for forty years, I always look for anomalies," explained Gartman on CNBC's "Futures Now" on Thursday. "It's very strange to me that, since June, as went gold so went the bond market." To this end, both gold and the U.S. 10-year Treasury note remained nearly unchanged in the last quarter. And, as Gartman pointed out, the absolute prices of both have rallied and fallen in tandem.

Gold and bonds 'don't make any sense', but here's what to do: Gartman

Those are some hefty prices, but Musk said on a call with journalists that starting with Tesla's high-end cars was deliberate. "You know, we get lambasted a lot for making expensive cars. But I just want to again reiterate that was never our goal in and of itself. Our goal was always to make great affordable cars," Musk said during a conference call with journalists on Tuesday. "We just need a few technology iterations and economies of scale to get there, and nothing would make me happier than to be able to build a great electric car that everyone can afford." Musk said Tesla will produce 200 of the new battery packs a week, which is about 10% to 12% of its total production volume. He said it's limited because "the manufacturing complexity is significantly greater than the 90 kWh pack."

Tesla battery upgrade good for electric cars - Business Insider

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If you have trades on that you’ve been thinking about selling, it’s time to sell. If you have a lot of margin on, bring it down. If you have little buying power, find a way to raise some. The reason: There’s likely going to be a significant selloff over the next two months. Of course, making short-term market prognostications isn’t easy. Some say it’s even a fool’s errand.

Get ready for a 5%-10% stock-market drop - MarketWatch

Treasurys have been under pressure of late. After putting in a low of 1.36% on July 8, the benchmark 10-year yield has rallied more than 20 basis points to its current 1.58% as solid economic data and Janet Yellen's hawkish speech at Jackson Hole have traders pricing in the possibility of the next Federal Reserve interest-rate hike coming as soon as the Federal Open Market Committee's September meeting. In a note sent out to clients on Wednesday, UBS' Technicals team of Michael Riesner and Marc Müller warn, "US Bonds Are Sitting On the Edge." The two suggest that 1.63% is the key level to watch for on the 10-year yield and that a breakout above there sets up the potential for a move as high as 2.00%.

UBS Technicals team looks at US 10-year yield - Business Insider

How did Apple wind up paying such a low tax rate in Ireland for so long? The answer is a tax structure that the world's most valuable company made with the country on the edge of Europe. Apple created two subsidiary entities in Ireland — Apple Sales International and Apple Operations Europe — that effectively own most of the company's intellectual property. Those companies license that IP to other global Apple subsidiaries, and earn income from those licensing arrangements.

How Apple's Irish subsidiaries paid a 0.005 percent tax rate in 2014

Porsche is working on a Tesla-killer with 300 miles of range that could pop up in showrooms in 2019. Audi is also beginning production of its new electric car in 2018 — the SUV will have a range of 310 miles on a single charge. Those dates are worth keeping in mind as it coincides with Tesla's planned release of the Model 3 — Tesla's first affordable car priced at $35,000, which is slated for shipping by the end of 2017. That car will have a 215-mile range, but Musk has said you can shell out more money for a longer range. This fits in with Musk's latest battery-upgrade announcement, as he said sales for the upgraded Model S and Model X will help pay to advance the range capabilities of Tesla's more consumer-friendly EVs. "It’s actually the people buying the expensive version of the car are really paying for that development to then scale up and then be available to other versions of the car," Musk said.

Tesla battery upgrade good for electric cars - Business Insider

A new version of the Opera browser for Android devices features free and unlimited VPN use. The update, which arrived in May on iOS and on desktop in April, allows users to make use of an IP address in five countries. Users will be able to mask their own locations and browse the web from the US, Canada, Germany, Singapore and the Netherlands.

Opera browser for Android now comes with free, unlimited VPN

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Dow Chemical shares are showing clear signs of tinkering, according to an analysis by a Yale University professor. The shares come within cents of an important threshold–$53.72–pretty often. But they’ve closed above that level so rarely that there’s less than a one-in-a-thousand chance that ​it’s happening randomly, according to the analysis. If the stock closes above $53.72 enough times, Dow has the option to buy back $3 billion worth of preferred shares from Warren Buffett’s Berkshire Hathaway. But as the Journal noted in a front-page story last week, people familiar with the matter say that executives at Dow believe someone is selling its stock short — or betting that its price will fall — to keep it from rising above $53.72.

Dow Chemical’s 1-in-1000 Stock Action Works in Warren Buffett’s Favor - MoneyBeat - WSJ

Speculative bets that the Dow will run higher from here are at a record high.  And this should give anyone worried about the stock market reason to, well, worry even more.   In a note to clients out Wednesday, David Rosenberg at Gluskin Sheff noted that speculative long contracts — or bets that stocks are going higher — on the Dow at the Chicago Board of Trade recently hit a record of 38,382. Combine this with long bets on the S&P 500 rising to the highest level in three years and you have a recipe for concerns about the market echoed most forcefully by market legend Jeremy Grantham earlier this year: a blow-off top.

Speculative long bets on the Dow spike - Business Insider

U.S. tax law gives the Obama administration power to double tax rates for European companies should it choose to dramatically escalate a dispute with the European Union over Apple's tax bill. Experts said the administration was unlikely to take such a drastic measure, and even if it did, courts might strike down that action because of treaties.

U.S. tax code may allow dramatic retaliation in EU Apple case | Reuters

By the time I’m 66 years old, roads will be filled with autonomous cars, I’ll have a holographic avatar for a personal assistant and my grandkids will be traveling the world while never leaving the classroom, thanks to the magic of augmented reality. Oh, and assuming I carry my fashion-forward sensibilities into old age, you might see me wearing smart clothes that can change color, regulate my temperature, and charge my gadgets. All of that within just two decades. At least that’s what this interactive graphic courtesy of RS Components tells me when I input my age.

Here are the technology advances you’ll probably see in your lifetime - MarketWatch

You know the drill -- those annoying recorded calls saying you’ve won a free cruise or a reduction in your mortgage payment. You curse the automated voice, hang up and add the number to your blocked caller list. But they keep on coming. In July, there were 2.42 billion robocalls in the U.S., almost triple from a year earlier, according to the YouMail Robocall Index, which tracks mostly mobile-phone users. They are the No. 1 consumer complaint received by the U.S. Federal Communications Commission, topping 200,000 a year. Many of the calls are tied to criminal activity as they attempt to extract personal information to steal identities and money.

The New Weapons in the Fight Against 2.4 Billion Robocalls - Bloomberg

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Still, the above type of innovation is now small fry compared to something else that has emerged as a huge financial juggernaut: financial technology innovation. Of course, the old type of innovation always had its limits. It was fundamentally "epicycles on epicycles" of some of the world's oldest financial instruments, namely debt and equity. But the fin tech revolution, and the extent to which it has reached today, is now of a huge magnitude.

How 'Financial Engineering' Is Being Surpassed By A New Watershed In 'Financial Innovation' | Seeking Alpha

My dog Dolly has an fine-tuned bullshit detector. The eight-year-old mutt I adopted from a New York City shelter knows when I’m feigning enthusiasm to take her out at 7am on a drizzly Saturday morning. She also knows that when I’m telling her to get off the sofa and go to her bed, it’s because I’m about to leave her at home – so she ignores me. She has an uncanny ability to know when I’m trying to get her to do something that’s not very fun. So the results on a new study that found dogs understand both what we’re saying to them – and how we’re saying it – came as no surprise.

Science confirms: dogs understand us. But do we get them too? | Anna Codrea-Rado | Opinion | The Guardian

Edwards argued that declining business investment and profits are presaging a recession — a point that he has made a number of times, and that the only thing supporting the economy is the consumer, which comprises about 70% of US gross domestic product. This support that consumers are providing for the economy, according to Edwards, is "about to be kicked away." "The only thing keeping the US out of recession is the US consumer," Edwards wrote. "It is difficult to say consumption is driving the economy forward, rather it is like a wood, worm-ridden crutch creaking under the strain of holding up a dead weight economy. This recovery, the fourth longest in history, is surely nearing its end."

Albert Edwards: Consumer crutch holding up US economy 'kicked away' - Business Insider

The small study of only 165 people with mild symptoms of the disorder found that a dozen monthly injections of the antibody aducanumab removed clumps of protein that build up in the Alzheimer’s brain. A leading theory of the disease holds that the steady accumulation of a protein called amyloid-beta in the ageing brain kills off healthy neurons and brings about the memory and cognitive impairments experienced by Alzheimer’s patients. In the trial, the strongest glimpse of mental improvement was seen in patients who had the highest dose of drug and who showed the greatest reduction in amyloid plaque proteins in follow-up brain scans. These patients did not worsen at all after six months of treatment.

Trial shows tantalising signs that new Alzheimer's drug could benefit early-stage patients | Science | The Guardian

Since Rodrigo Duterte assumed the presidency of the Philippines eight weeks ago, the same scene has unfolded night after night in the slum neighborhoods of Manila: A shot rings out, and a person lies dead on the street with a cardboard sign laid next to him, scrawled with a single word: “Pusher.” This is how Duterte’s war on drugs is playing out on the ground. It is a punitive campaign spurred by the president’s promises of immunity and even bounties to those who take drug users and traffickers “dead or alive.” Last week, the national police chief testified during a Senate inquiry that more than 1,900 people suspected of being involved in the drug trade or abusing drugs had been shot dead by police or “vigilantes” (that number now approaches 2,500). Over 10,000 people have been arrested, and at least 675,000 people have voluntarily surrendered to the authorities.

Will Anyone Stop Rodrigo Duterte? | New Republic

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A lot of commentary, however, seems to be weighted to the downside. From perma-bears to market skeptics, commentators seem to be waiting for a shoe to drop and the market to crash. Even retail investors, as measured by the American Association of Individual Investors, are more bearish than bullish. In fact, bullish sentiment has been below its long-term average for 43 straight weeks. This downtrodden outlook is unwarranted, according to Scott Colyer, the CEO and chief investment officer at Advisors Asset Management. "I think there is a lot of pessimism out there," Colyer told Business Insider. "There are a lot of skeptics out there trying to figure out why stocks have gotten to this level and when it's going to fall. People are way too pessimistic."  "You had projections that [S&P 500 aggregate] earnings were going to be down 7% or so for the second quarter," Colyer said. "They were down just 2%, which is much better than last quarter, and we expect that they will go positive next quarter."

Everyone is 'way too pessimistic' right now - Business Insider

Antibacterial soaps were banned from the US market on Friday in a final ruling by the Food and Drug Administration, which said that manufacturers had failed to prove the soaps were safe or more effective than normal products. Dr Janet Woodcock, director of the FDA’s center for evaluation and research, said that certain antimicrobial soaps may not actually serve any health benefits at all. “Consumers may think antibacterial washes are more effective at preventing the spread of germs, but we have no scientific evidence that they are any better than plain soap and water,” she said in a statement. “In fact, some data suggests that antibacterial ingredients may do more harm than good over the long term.”

Antibacterial soaps banned in US amid claims they do 'more harm than good' | Science | The Guardian

There are Methuselahs among us. These aged wonders of the natural world do not stalk the earth but glide through Arctic waters. Scientists surveying Greenland sharks, previously thought to live up to 200 years, found that they have far longer lifespans. One specimen was calculated, give or take a century, to be nearly 400 years old, born more than a century before the US was founded.

Centuries-old sharks hold the secret to a longer life - FT.com

Part of the company's 'The Outer Blueprint' program, which aims to integrate AI and smartphones, the Cadenza is expected to launch next year. And according to Chao, the device will arrive with two, yes two, Snapdragon 830 chips (which are yet to be announced) and a 60 megapixel 'IMAX 6K Quad Rear' camera. Yes, you read that right. What's more, the Cadenza is said to sport a 20 megapixel dual front camera setup, along with 12GB of DDR4X RAM and 512GB of internal storage. Related: IFA 2016 Oh, and there's also the two microSD slots, a 100wh battery with graphene and "hydrogen Fuelcell", and "quad Nano-SIM" for some reason. What does this beast run on? Well, the as yet unannounced Swordfish OS of course, which will supposedly incorporate AI in some way.

These are the most ridiculous smartphone specs ever – seriously

Compact PCs are dime a dozen these days, but I’ve never seen anything quite like the Ockel Sirius A. Meet the 6-inch Windows 10 desktop machine you never knew you wanted. Ockel is a Dutch firm known for its previous crowdfunding success, the Sirus B micro PC, which raised more than $450,000. Now, the company is back with another portable PC, this time taking the form of a 6-inch wedge PC with a Full HD touchscreen on board. It’s not an Android tablet, either. It runs full-fat, 64-bit Windows 10. Crazy, right? Perhaps. But there is method behind the madness. The company reckons there’s latent demand for a full PC that you can pop into your pocket and then pull out wherever you are.

PC or doorstop? This is the craziest Windows 10 computer I've ever seen

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AS YOU NAVIGATE through Chrome, or Safari, or Firefox, or whatever your browser of choice is, you’re often given an enticing option: Would you like us to save your password? A recent browser breach is a reminder that if you answer yes, you’re taking a risk. Late last week, the browser Opera confirmed a successful attack on its systems. The hackers were likely able to access personal information, company developer Tarquin Wilton-Jones wrote in a post announcing the breach, “including some of our sync users’ passwords and account information.”

Sorry, But Your Browser Password Manager Probably Isn’t Enough | WIRED

Bank of America’s Sell Side Indicator—a gauge to measure sentiment on Wall Street—fell to 49.6 in August, its lowest in more than three years. As a contrarian indicator, that is a green light for bulls. “With the S&P 500’s indicated dividend yield currently above 2%, that implies a 12-month price return of 20% and a 12-month value of 2,604,” said the strategist in a report. “Historically, when our indicator has been this low or lower, total returns over the subsequent 12 months have been positive 100% of the time.”

A 3-year low for this contrarian indicator may be a screaming buy signal - MarketWatch

The mystery of weak wage growth is troubling, for the short run and the longer-term. If Yellen and the FOMC majority are wrong, inflation could remain stuck below their target, setting the economy up for lower rates of inflation in the next downturn. “The risk is that when the next crisis hits, you fall from 1.5 percent inflation to 0.5 percent inflation, and then to deflation in the next recession after that,” said Ethan Harris, head of global economics research at Bank of America in New York. “You are going down a slippery slope.” What’s more, Harris said, very low rates of inflation can lead to higher rates of unemployment in a downturn. Rather than cut wages as their prices fall, companies tend to cut workers instead.

Full Employment Without Wage Jump Tests Fed Pining for Inflation - Bloomberg

The majority of boys leave primary school without having reached basic standards in reading, writing and maths, government figures reveal today. This year 11-year-olds faced tougher SATs exams after a government drive to improve standards.  Girls rose to the challenge with 57.1 per cent reaching the expected standard compared to less than half of boys. For the first time pupils needed to achieve 100 in the Key Stage 2 exams rather than a level 4 under the old system. Department for Education data released showed 50.46 per cent of boys – or 149,872  of the 296,988 males who sat the exams - failed to meet the new standard.

Most boys leave primary without basic numeracy and literacy skills, figures show

This is why I’m completely sold on PlayStation VR. There are so many reasons why PSVR can become the shining beacon of virtual reality above its competitors that it boggles the mind. Many expected the lower visual fidelity and narrower viewing angle to impact the overall quality of the headset, but each time I’ve got to try the kit at demo booths I’ve preferred it over the Oculus, and by some margin.

You absolutely need to pre-order PlayStation VR – here's five reasons why