Blackrock

Why Blackrock Isn't Worried At All About Record Low Volatility

"Low stock market vol only seems to keep getting lower. Yet we believe there are good reasons for vol to be subdued. Looking back, we find low-vol regimes, when U.S. equity volatility averages 10%, can last for years. That means realized U.S. equity vol has historically stayed low for remarkably long periods of time."

Frontrunning: August 7

  • Futures slightly higher after Dow's record run (Reuters)
  • Tillerson says U.S., Russia can settle differences (Reuters)
  • Hot-Stock Rally Tests the Patience of Value Investors (WSJ)
  • ‘Good Conservative’ Grassley Ramps Up His Panel’s Trump-Russia Probe (BBG)
  • Brands Strike Back: Seven Strategies to Loosen Amazon’s Grip (WSJ)

JPM Develops A.I. Robot To Execute High Speed Trades, Put Humans Out Of Work

JPMorgan will soon be using a "first-of-its-kind robot" to do away with carbon-based traders altogether and execute trades across its global equities algorithms business using a "robot" after a recent trial of JPM's new artificial intelligence (AI) programme showed it was "much more efficient than traditional methods of buying and selling", the FT reports.

Dan Loeb: "None Of Our Early Predictions Have Come To Pass"

"In our January letter to investors, we shared our view that 2017 would be a year characterized by reflation globally, an end to central bank easing, and a US economy juiced up by the Trump administration’s increased fiscal spending and tax reform. So far, none of these predictions has come to pass."

Frontrunning: July 18

  • U.S. Republicans left scrambling after health bill sinks again (Reuters); Republicans Give Up on Health-Care Reform, Now Seek Straight Repeal (BBG)
  • Trump Blames Democrats and a ‘Few Republicans’ for Health-Bill Wreck (BBG)
  • House Republicans Set Out Plan to Rewrite Tax Code (WSJ)
  • House GOP Budget Ignores Trump’s Cuts to Domestic Agencies (BBG)
  • House Republicans unveil 2018 budget with tax reform instructions (Reuters)

Frontrunning: July 17

  • Americans Feel Good About the Economy, Not So Good About Trump (BBG)
  • GOP Leaders Brace for CBO Estimate on Revised Health-Care Bill (BBG)
  • From $2 Billion to Zero: A Private-Equity Fund Goes Bust in the Oil Patch (WSJ)
  • Turkey Building Up Army Base in Qatar, Erdogan Adviser Says (BBG)
  • U.S. Companies Have a New 401(k) Fix: Spend More (WSJ)

Global Stocks Rise Amid Strong Economic Data; Yen Drops To 2 Month Low As Oil Resumes Slide

In a quiet overnight session, S&P 500 futures are fractionally in the green (2,426, +0.2%) with European and Asian stocks as oil drops second day after an initial ramp higher amid speculation that LIbya and Nigeria may be asked to cap their production. Nasdaq 100 Index are again higher, following the biggest daily advance in more than a week, up 0.4% as of 6:20 a.m. in New York.