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Yen Rises, Asia Futures Dip on Mideast Tensions: Markets Wrap

(Bloomberg) — Stock futures dipped and the yen advanced in the wake of escalating Middle East tensions as Asian financial markets return to full strength following New Year holidays.Japan’s currency matched a three-month high in the wake of fallout from the U.S. killing of a top Iranian military commander in Iraq. Japanese equity futures also slid, while Australian contracts were little changed. The S&P 500 Index posted its biggest loss in a month Friday in the wake of the killing, which threatened to spur escalating violence across the Middle East.The tensions cast a cloud over largely positive forecasts for risk …read more […]

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Musk’s Moment of Truth Arrives With Made-in-China Teslas

(Bloomberg) — Elon Musk’s decision to assemble Tesla Inc. cars in China required years of planning and billions of dollars in spending. Now comes the challenging part.The electric Model 3 sedans rolling off the assembly line at Tesla’s Shanghai plant — its first outside the U.S. — face a market where total vehicle sales are expected to fall for a third straight year. After capturing about 5% of China’s car sales, electric vehicles have been losing steam as the economy cooled and the government scaled back subsidies for buyers.That could spell trouble for a launch that investors are watching closely …read more […]

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Low Rates Could Get Even Lower, Senior Central Bankers Warn

(Bloomberg) — The already low level of interest rates in the U.S. and the rest of the industrial world could fall further, three senior central bankers said on Sunday.Speaking at the American Economic Association’s annual meeting, Federal Reserve Bank of New York President John Williams, European Central Bank chief economist Philip Lane, and Bank of England Deputy Governor Ben Broadbent all saw a possibility that so-called R star — the neutral level of interest rates that neither spurs nor restricts growth in their economies — might drop in the future.“You could see R star go lower because of demographics,” Williams …read more […]

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Amazon is generating lots of free-cash flow, time to get on board: Barron's

Amazon.com Inc is generating lots of free cash flow, which it often uses to invest in growing its business, making the e-commerce retailer a good investment, weekly newspaper Barron’s said on Jan. 3. The company’s shares closed Friday at $1,875, which is 69 times its projected earnings this year, but the price is still sensible when compared to Amazon’s free cash flow, according to Barron’s. When the company’s financial results for 2019 are released, Wall Street analysts expect Amazon to report revenue increasing by 20% and free cash flow swelling by 28%, the newspaper said. …read more […]

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Boeing, FAA reviewing wiring issue on grounded 737 MAX

Boeing Co and the Federal Aviation Administration (FAA) confirmed on Sunday they are reviewing a wiring issue that could potentially cause a short circuit on the grounded 737 MAX. The New York Times reported Boeing is reviewing whether two bundles of wiring are too close together, which could lead to a short circuit and potentially result in a crash if pilots did not respond appropriately. Boeing is currently working to design separating the wiring bundles if necessary and conducting extensive analysis to establish if the electrical fault could occur in a real-world scenario, a company official said. …read more […]

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Draghi, Yellen Warn of Risks Facing Policy in Low-Rate World

(Bloomberg) — The U.S. and the euro area face daunting economic challenges in a world of low inflation and interest rates and central banks alone don’t have the tools to cope.That’s the message delivered to the American Economic Association’s annual meeting on Sunday by former European Central Bank President Mario Draghi and ex-Federal Reserve Chair Janet Yellen.“I believe that for the euro area there is some risk of Japanification, but it is by no means a foregone conclusion” if it acts comprehensively to avoid a deflationary malaise, Draghi said via a video link to the conference in San Diego. “The …read more […]