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A vehicle fit for a villain
<p>An Aston Martin may be your ride of choice if you are looking to play the hero but we all know nice guys finish last, especially if you are racing against this orange Jaguar C-X75. The car recently starred as the villain's ride in the newest Bond film "Spectre".</p> <p>The Jaguar, Business Insider reports, is driven by henchman "Mr. Hinx" during a high-speed chase with Bond's bespoke Aston in Rome.</p> <p>The hybrid-electric, two-seat concept car originally debuted at the 2010 Paris Motor Show. Sadly -- despite its appearance in Spectre -- the C-X75 remains a concept car, so don't expect to see it in your local showroom anytime soon. Jaguar Land Rover Special Vehicle Operations chief John Edwards recently told the UK's Autocar there are no plans for production:<br /> “The film was an opportunity to showcase C-X75, but it doesn’t mean a change in strategy. The decision has been made and we can hold our heads up high on that,”<br /> At least you can you still get a glimpse on the big screen.</p> <p>Photo: Jaguar Land Rover</p>
What we're reading: The China enigma and the true meaning of happiness
<p>This week we get to grips with two of the greatest complexities in the world today: Chinese politics and Syrian alliances. Elsewhere, Alibaba’s founder gets all zen about the meaning of happiness and privacy gets passe.</p> <p>Why China is a black box. “A riddle, wrapped in a mystery, inside an enigma” is a term that was first used by Winston Churchill to describe Russia, but perhaps China also fits the description. Business Insider. </p> <p>The absurdly complex web of allies and enemies in Syria. Ever been confused as to who is exactly backing whom in Syria? You are not alone. This amazing interactive infographic illustrates just how complex things are out there, but it probably won’t make you any less confounded.  Quartz </p> <p>Money didn’t bring me happiness, says Alibaba’s Jack Ma. China’s most successful internet entrepreneur says his happiest days were when he was a dirt poor teacher. Tech In Asia</p> <p>Is the U.S, going soft on China? The recent excursion to the South China Sea by the U.S. Navy was intended to be a show of force, but it may not have had the desired effect. Financial Times (paywall) </p> <p>Privacy is sooo last century. For most of human history, people lived with little or no expectation of a private life. So the new normal, where everyone knows your business, is perhaps not so new. Guardian<br /> Photo: Gabriela Pinto</p>
China foreign reserve boost allays yuan depreciation fears
Capital Markets
<p>It appears that fears of an increasingly devaluing Chinese yuan could be dying down – for now. </p> <p>The Wall Street Journal reports that China's five-month run of capital outflows came to a sudden halt this week with news that the country's foreign-exchange reserves swelled in October – by $11.39 billion to $3.526 trillion – helping shore up its currency. Capital Economics economist Julian Evans-Pritchard told the Wall Street Journal:<br /> “We think these outflows are now reversing because market expectations for significant [yuan] depreciation have now eased after PBOC (People’s Bank of China) intervention helped stabilize the currency and expectations for U.S. rate hikes have been pushed back.”<br /> However, recent statements from the U.S. Federal Reserve have already made it seem more likely a hike will take place in December, potentially triggering more outflows, or at least the need for more intervention from the PBOC.</p> <p>Photo: Karl Baron</p>
China and Taiwan: A tale of two press conferences
Capital Markets
<p>If China and Taiwan’s historic meetup in Singapore has taught us anything it’s that Beijing is as fightened of Taiwan's free speech as Taipei is of China's missiles. </p> <p>Quartz points out that while the countries share a language, history, and economic interests, a big difference could be seen in how each approached the political press conferences that followed back in their respective territories. </p> <p>As Taiwan’s democratically-elected president Ma Ying-jeou fielded several awkward questions from the country's free press – mostly about Chinese missiles aimed at Taiwan – China’s Xi Jinping offered a prepared statement and answered just three scripted questions from press outlets sympathetic to Beijing. </p> <p>What’s more, mainland broadcaster CCTV offered only edited highlights of the Taiwan conference, lest viewers be exposed to anything more explosive than a Chinese ballistic.<br /> Photo: Jennifer Moo</p> <p>&nbsp;</p> <p>&nbsp;</p>
The Week Ahead: Eurogroup meeting looms, China and Japan release trade data
Capital Markets
<p>As the week kicks off all eyes will be on Brussels as Monday evening's Eurogroup Meeting gets underway. Eurozone finance ministers are expected to approve the disbursement of a first sub-installment of 2 billion euros to Greece. The European Central Bank’s (ECB) Mario Draghi will also speak on Wednesday, hopefully shedding more light on how the ECB will step up its stimulus program. </p> <p>With the Federal Reserve’s December interest rate hike looking all but certain, investors will also be focused on the deluge of country data coming out this week.  China, Japan, and Germany will all be releasing trade balance data, while important jobs data will be coming out of the U.S. and the U.K. </p> <p>Here’s what you should expect this week:</p> <p>&nbsp;</p> <p>Monday, November 9 </p> <p>08:30 Australia ANZ Job advertisement (Nov, MoM) – Previous: 3.9%</p> <p>15:00 Germany Trade Balance (Sep) – Forecast: 15.3bn ;Previous: 21bn</p> <p>22:00 Eurogroup Meeting </p> <p>23:00 U.S. Labor Market Conditions Index</p> <p>&nbsp;</p> <p>Tuesday, November 10</p> <p>&nbsp;</p> <p>07:00 China Exports (Oct, YoY) – Previous: -3.7%; Forecast: -3.2%</p> <p>07:00 China Trade Balance (Oct) – Previous: 60.34bn; Forecast: 62.17bn</p> <p>07:00 China Imports (Oct, YoY) – Previous: -20.4%; Forecast: -15.2%</p> <p>07:00 India Exports (Oct, YoY) – Previous: -24.3%</p> <p>07:50 Japan Current Account (Sep) – Previous: 1653.1bn; Forecast: 2180.1bn </p> <p>07:50 Japan Trade Balance, BOP Basis – Previous: -326.1bn; Forecast: 82bn </p> <p>09:30 China CPI (Oct, YoY) – Previous: 1.6%; Forecast: 1.5% </p> <p>23:00 Import Price Index (Oct, MoM0 – Previous: -0.1%; Forecast: 0.1%</p> <p>&nbsp;</p> <p>Wednesday, November 11 </p> <p>07:30 Australia Westpac Consumer Confidence (Nov. MoM) – Previous: 4.2%</p> <p>13:30 China Industrial Production (Oct, YoY) – Previous: 5.7%; Forecast: 5.8%</p> <p>17:30 U.K. unemployment Rate 3m (Sep) – Forecast: 5.4% (unchanged) </p> <p>17:30 Jobless Claims Change (Oct) – Previous: 2k; Forecast: 4.6k</p> <p>21:15 ECB’s Draghi Speaks</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>Thursday, November 12 </p> <p>08:30 Australia Employment Change (Oct) – Previous: -5.1k; Forecast: 15k </p> <p>08:30 Australia Unemployment Rate (Oct) – Forecast: 6.2% (unchanged)  </p> <p>15:00 Germany CPI (Oct, MoM)</p> <p>15:00 Germany CPI (Oct, YoY) – Forecast: 0.3% (unchanged)</p> <p>18:00 Europe Industrial Production (Sep, MoM) – Previous: -0.5%; Forecast: -0.1%  </p> <p>18:00 Europe Industrial Production (Sep, YoY) – Previous: -0.9%; Forecast: 1.3%</p> <p>21:30 U.S. Initial Jobless Claims (Nov) – Previous: 276k</p> <p>23:00 U.S. JOLTS Jobs Openings (Sep) – Previous 5.37m</p> <p>23:15 Fed’s Evans Speaks</p> <p>Friday, November 13 </p> <p>01:15 Fed’s Dudley Speaks </p> <p>03:00 U.S. Monthly Budget Statement (Oct) – Previous: 91.1b; Forecast: -130b</p> <p>12:30 Japan Industrial Production (Sep, MoM) – Previous: 1%</p> <p>15:00 Germany GDP (3Q, QoQ) – Previous: 0.4%; Forecast: 0.3%</p> <p>15:00 Germany GDP (3Q, YoY) – Previous: 1.6%</p> <p>18:00 Europe GDP (3Q, QoQ) – Forecast: 0.4% (unchanged)</p> <p>18:00 Europe GDP (3Q, YoY) – Previous: 1.5%; Forecast: 1.7%</p> <p>21:30 U.S. Retail Sales (Oct, MoM) – Previous: 0.1%; Forecast: 0.3%</p> <p>23:00 U.S. UoM Confidence Preliminary – Previous: 90; Forecast: 91</p> <p>&nbsp;<br /> Photo: European Parliament</p>
Barron's Weekend Roundup: GM has 40% growth potential
Capital Markets
<p>&nbsp;</p> <p>General Motors is rolling strong. GM's third quarter earnings beat expectations, but the stock is only up 2% this year, reports Barron's. Across the U.S. car sales have been on the rise, and GM has been able to cut costs with more efficient manufacturing. The stock has potential to grow by 40%, Barron's argues.</p> <p>Platform Specialty Products is looking for a rebound with the help of high profile investors, including Bill Ackman. Platform, which went public in 2014, has seen its shares drop 60% since June. But the stock could rebound in the next 12 months, reports Barron's. The firm has closed four acquisitions and has lined up two more deals.</p> <p>&nbsp;<br /> Photo: jm3 on Flickr<br /> &nbsp;</p>
Total value of assets managed by the top 20 split by manager domicile
Asset Management
<p>&nbsp;</p> <p>This originally appeared on ValueWalk. </p>
JPMorgan’s Kolanovic: Another Flash Crash Possible
Hedge Funds
<p>The derivatives research team at JPMorgan that forecast the August market sell off based on algorithmic positioning and then, again based on a reversion of systematic positioning, predicted on September 24 the subsequent market rally in October, has yet another interesting market call.</p> <p>Kolanovic<br /> Kolanovic: CTA signals could change based on relatively small market moves as “risk of another technically driven flash crash” is upon us<br /> “Near term the market is likely more resilient to the risk of another technically driven flash crash,” the November 5 report predicted, citing technical flows from option hedges, volatility targeting, managed futures CTA and Risk Parity funds.</p> <p>“We believe that these strategies (from option hedges, volatility targeting, managed futures CTA and Risk Parity funds) largely re-levered to pre August crash levels,” which was “a significant driver of the S&amp;P 500 performance in October” and is now posing downside risk today, a November 5 research report from JPMorgan’s celebrated derivatives research team of Marko Kolanovic and Bram Kaplan says.</p> <p>“Given the tight trading range over the past year, CTA signals have risk of changing on relatively small market moves (i.e. there is elevated ‘CTA gamma’). On the other hand, given the lack of a large put option gamma imbalance, and perhaps some residual buying from VT funds, near term the market is likely more resilient to the risk of another technically driven flash crash.”</p> <p>Kolanovic<br /> Volatility targeting and risk parity strategies have re-loaded</p> <p>Considering the sharp decline in realized volatility, the report notes strategies that target constant volatility were required to re-lever their portfolios. While volatility targeting strategies may be buying on the way up, the report forecast that “realized volatility is unlikely to drift much lower (e.g. to the summer lows), so any residual buying from (volatility targeting) strategies may not be sufficient to push the market much higher.”</p> <p>The report noted that nearly $300 billion is trading in volatility targeting, targeting a range from 8 to 9 percent. Risk parity strategies are significantly larger, with $500 billion used to influence markets, but the strategies can vary significantly. “Risk Parity strategies employed by Hedge Funds may be substantially different from those employed by e.g. Pension funds (using risk parity in house as a longer term asset allocation method).” To account for this challenge JPMorgan uses different models for hedge funds, accounting for nearly $150 billion in risk parity assets, and pension funds, which account for nearly $350 billion. These funds de-levered in August and September, but re-levered in October to finish at their pre-crash equity allocations.</p> <p>In other words, the gun is cocked and ready to fire.</p> <p>This article was originally published by ValueWalk. <br /> Photo: Artondra Hall </p>
Cartier losing its sparkle as watch sales, Asia sag
Capital Markets
<p>Richemont, the parent company of jewelry maker Cartier, found itself adorned in some less-than-fine figures this week, reporting weaker than expected sales in China. The company further said it expected the market to remain "challenging" for the rest of the year. The stock sank 6% Friday.</p> <p>The firm is not alone, reports This is Money. Luxury conglomerates LVMH and Kering have also struggled in Hong Kong and China, thanks to stock market volatility and China's anti-bribery crackdown. </p> <p>Also weighing on Richemont: The head of its Cartier division, Stanislas de Quercize, has left for personal reasons. He will remain on the group board.<br /> Photo: Steve Jurvetson<br /> &nbsp;</p>
Weekend Scan: China, Taiwan leaders begin historic talks; Asian confidence sags
Capital Markets
<p>It was a good week for markets in China and Japan if not elsewhere. Mainland shares regained momentum this week, crossing into a bull market, and Japanese shares hit two-month highs as the country saw its biggest privatization in decades with Japan Post's triple-barrell listing.</p> <p>But markets in other parts of Asia were unable to replicate the upward climb enjoyed in October. Instead, November's first week saw investors focus on country specific news, while the strengthened prospect of a U.S. interest rate hike in December further battered confidence in emerging markets.</p> <p>Now U.S. jobs data has beaten forcasts, sending the dollar soaring, a Federal Reserve rate hike is looking more likely than ever. Meanwhile, the Japan Post IPO euphoria has already started wearing off in Japan. We can expect a rougher start all round come Monday.</p> <p>Here is what else you need to know:</p> <p>China and Taiwan's leaders meet for the first time... and they shook hands! China's President Xi Jinping and Taiwan's President Ma Ying-jeou began their historic meeting on Saturday, shaking hands as they met. It's the first cross-Taiwan Strait summit since a civil war divided the two sides in 1949. Nikkei</p> <p>Myanmar goes to the polls for historic election. The country is entering the final stretch of campaigning before Sunday’s parliamentary elections. It's only the third credible democratic elections since Myanmar gained independence from Britain in 1948. The New York Times<br /> U.S. jobs data raises prospects of rate rise. Expectations of a rise in U.S. interest rates in December have soared following a stronger-than-expected jobs report. The U.S. economy added 271,000 jobs in October, far exceeding the 185,000 jobs that economists had forecast.<br /> President Obama rejects Keystone XL Pipeline. After a more than seven-year battle, environmentalists won out against oil companies, as Obama officially rejected the pipeline from Canada. "The pipeline would not make a meaningful long-term contribution to our economy," Obama said. Reuters</p> <p>Russia halts flights to Egypt amid widened probe into Sinai crash.  Reversing its earlier position, the Kremlin on Friday announced that it would suspend flights to Egypt in a growing consensus with Western officials that a bomb may have caused a Russian passenger jet to crash over Egypt’s Sinai Peninsula last weekend. The Washington Post</p> <p>Brazilian village destroyed in minutes by dam deluge. Residents of the Brazilian village of Bento Rodrigues had about 25 minutes to escape when a dam holding waste water from the nearby Samarco mine in Minas Gerais state broke, sending torrents rushing down into the valley. Reuters</p> <p>Anonymous outs KKK sympathizers. A list of alleged Ku Klux Klan members was released earlier in the week, but the list turned out to be fake. The hacking group released more data about KKK sympathizers, calling it a "form of resistance" against racial violence. The Thursday list has social media profiles of people in KKK-related Facebook and Google+ groups. BBC<br /> You won’t believe this:<br /> Gangnam Style statue built in Seoul. The metal sculpture will be placed in the district made famous by the song. The statue shows two fists overlapped in the style of the song's "horse-riding" dance move. BBC</p> <p>Transgender tree could be the oldest in world. Botanists are arguing over whether the perhaps-5,000-year-old Fortingall Yew, which stands in  a churchyard in Perthshire, Scotland, is Europe’s oldest tree. But it is now certainly Europe’s oldest transsexual. Yew couldn't make it up. Economist</p> <p>Cry your eyes out. U.K. retailer John Lewis has released its annual holiday commercial, this year featuring a lonely old man on the moon. As with every other year, have a box of tissues ready for this tear jerker.</p> <p>&nbsp;</p> <p>&nbsp;<br /> Photo: Jennifer</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p>