Mashable : The pole-dancing robots of CES 2018: An eyewitness report

The pole-dancing robots of CES 2018: An eyewitness report

On Monday, the world's largest strip club — Sapphire Gentleman's Club — became something else: The most subversive art show in Las Vegas.


All week, in Vegas, the Consumer Electronics Show takes over the city. CES is the biggest tech trade show of the year — a veritable debutante ball for electronics brands, and whatever they're rolling out to the public (and the press) that year. And yet, this massive mecca of stripping located just off the Las Vegas Strip had somehow become the site of one of the most widely-covered events at this year's CES:
Two pole-dancing robots.
So, of course, we had to go check it out.
When we showed up at Sapphire, we couldn't hide our extreme disappointment. The robot strippers had been banished to the long, dimly lit entryway of the club — not, say, the main stage (as we'd been promised over the phone). We'd been duped. And yet, there was a silver lining around our weird adventure to Sammy Davis Jr. Drive — where Sapphire can be found, a road that runs just parallel to (and right in the shadow of) the massive casinos that light the Vegas sky.

IMAGE: MASHABLE / BRIDGET BENNETT
At face-value, the robot strippers weren't much more than a great way to demonstrate how the long tradition of chauvinism at CES isn't going anywhere, anytime soon (to say nothing of the way that CES initially didn't feature any women in its keynote speakers lineup this year, until heavy backlash prompted a turnaround).
But that also goes without pointing out a crucial detail about these sexless, gyrating androids.
The robots were originally created by British artist Giles Walker for a project called Peepshow, as a commentary on the increasing reach of the surveillance state, and to challenge notions about the voyeurism of government-controlled security cameras. The artist explained that he created them as a response to "mechanical Peeping Toms," or CCTVs, being placed around Britain back in 2010 when the robots were constructed.

IMAGE: MASHABLE / BRIDGET BENNETT
And yeah, sure: They were robot strippers. They looked ridiculous. Like something out of a Disney World Tomorrowland ride gone terribly, terribly wrong.
Two robots with cameras for heads, gyrating on stripper poles, as one of the most covered spectacles at CES? There's poetry to that.
But they also represented the harshest critique of CES yet — one sharper than any blog post, fire tweet, or scorching hot take could mount. They call into question the increasingly invasive, perverse reach technology (and its corporate architects) keep taking in our lives.
It's been one of the few moments of CES that's not fawning news coverage by wormy journalists taking selfies with interview subjects (and the products those subjects have made). Even though the artwork was inspired by the British surveillance state, it's a pretty convenient criticism of the increasingly invasive nature of corporate tech.
Large corporations regularly abuse users' trust. When we use our favorite gadgets and services, the companies that make them are surveilling our every move, collecting data. Whether you realize it or not, someone is always watching you — and potentially eavesdropping. And two robots with cameras for heads, gyrating on stripper poles, as one of the most covered spectacles at CES? There's poetry to that.

IMAGE: MASHABLE / BRIDGET BENNETT
Because if people remember CES 2018 for anything that distinguishes it from the conventions of years past, it'll be for the way big companies got bigger, as they went around announcing partnerships, almost as if on trend.
These partnerships, of course, are designed to only further the increasing reach and scope of multinational conglomerates. They want more — more of your money, more of your data, more influence on your daily life, and the way you go about it.
And if artificial intelligence is, as this year's CES would have you believe, the not-at-all-far-off future, it means that Google and Amazon and Apple are gonna try to put AI in literally everything, everywhere: Your car, your home, your office, your kitchen, your bathroom, and your bedroom.

IMAGE: MASHABLE / BRIDGET BENNETT
If CES is a celebration of the year's biggest technology trends, consider the counterculture at Sapphire. Is it perfect? Absolutely not. But it still gives us a reason to remind ourselves (and you) that tech companies are coming for your data, and will begin logging your daily behavior in a way that never seemed imaginable just a few years ago. And they're doing a great job at distracting you as they do it.
Google, Amazon, Samsung, Microsoft, Intel, and so many others are vying to create elaborate profiles of your preferences, habits, and real-world behaviors to sell you more things. While we embrace so many of these new advancements — willingly, or latently, out of convenience — it's important to remember that companies are logging everything: your searches, locations, online browsing patterns, and much more. Including your fantasies.
The future is here, and it's always watching. Keep your eyes up here

WSJ : BEIJING—Bitcoin can’t catch a break in China.

BEIJING—Bitcoin can’t catch a break in China.

Chinese authorities ordered the closing of operations that create a large share of the world’s supply of bitcoin, tightening a clampdown that has already shuttered exchanges for the trading of cryptocurrencies in China.

A multiagency government task force overseeing risks in Internet finance issued a notice last week ordering local authorities to “guide” the shutdown of operations that produce, or “mine,” cryptocurrencies, according to the notice and people familiar with the information.

While the notice called for an “orderly exit” without setting a deadline, far-flung areas of China where cryptocurrency mining operations have flourished are complying. A local regulatory official in the far western region Xinjiang said Wednesday that his agency received the notice and is doing “what the country wants.”


The central bank, the lead agency in the task force on Internet financial risk that issued the notice, didn’t respond to a request for comment.

Miners use powerful computer systems to solve complex math problems to generate and verify units of cryptocurrencies. The miners have thrived in sparsely populated areas of China where electricity is plentiful and inexpensive and temperatures are cooler.

Their winding down is the latest blow for bitcoin and other cryptocurrencies in what was a promising market but where the government is concerned about money laundering and risks in the financial system. China accounted for nearly 80% of computer power devoted to global bitcoin mining over the past 30 days, a rough approximation of its share of new units created in the same period, according to calculations based on data from ChainalysisInc., a New York-based research firm.

A loss of a large-scale mining operation would disrupt the creation and verification of cryptocurrency units, according to Philip Gradwell, chief economist at Chainalysis. He said it usually takes about 14 days for the bitcoin system to adjust before the rate of creating new coins stabilizes. If China were to wipe out 80% of global mining power in one go, recovery could take weeks, possibly months, he said.

“If China really does switch off all the minters suddenly, there could be a very high level of disruption,” Mr. Gradwell said. “It’s very hard to estimate back-of-the-envelope how big an impact would be.”

Such an across-the-board shutdown is unlikely, Mr. Gradwell and other analysts say, given that the Chinese government has been tightening the regulatory noose for months, prompting many operators to move their equipment elsewhere.

“I don’t think miners have been sitting on their hands,” said Arthur Hayes, who runs a peer-to-peer cryptocurrencies exchange called BitMEX. “Some people have already moved their hardware out of China.”

The founder of Chinese mining pool F2Pool, which accounts for 9% of the bitcoin mined over the past month, said his operations in Inner Mongolia and Xinjiang received “directives” from local authorities, though he declined to provide details.

“We are already very small,” said the founder, who is known in the Chinese bitcoin community by the nickname “Shen Yu,” or “mythical fish.”

After the government banned offerings of new cryptocurrencies and commercial exchanges in September, official scrutiny fell on the miners.

The government notice to shut down miners began circulating on social media last week and may have added to the factors that have seen prices of bitcoin drop to $14,200 from a high in December of $19,000 per unit after soaring for much of the year. Just before China’s clampdown in September, bitcoin traded for $4,600.

A potential shutting of China’s vast bitcoin mining network could also shake up the dynamics between global mining pools, or firms that share processing power, some analysts said. In recent years, a handful of these powerful Chinese pools resisted expanding the bitcoin network to process more transactions, according to cryptocurrency entrepreneurs.

If authorities in China have cooled to cryptocurrencies, demand has remained hot elsewhere, especially in South Korea, making that country the center of attention for the industry. South Korean regulators have announced tougher measures to crack down on cryptocurrency trading, following the collapse of one Seoul-based platform that investigators are looking into for possible involvement by North Korean hackers.

FT : Altice shares tumble as analysts digest revenue warning

Altice shares tumble as analysts digest revenue warning
Lowered guidance for French business overshadows restructuring efforts

Shares in Altice NV, the acquisitive global telecoms group that is fighting to shore up investor support, dropped more than 7 per cent on Wednesday, as analysts focused on a revenue warning that overshadowed plans to break up the company.

The share price decline highlights the debt-laden company’s challenge in seeking to convince investors that it can move beyond cost-cutting and increase sales, particularly at its largest unit, SFR in France.

Analysts attributed the share price move to comments from Dennis Okhuijsen, Altice’s chief financial officer, who told an analysts’ call on Tuesday that the company’s fourth-quarter sales in France would come in worse than expected.

The guidance came as Altice sought to explain plans to spin off its US business, restructure its European operations and shift senior managers to roles focused on individual regions.

After extended questioning from Redburn analyst, Dimitri Kallianiotis, Mr Okhuijsen said Altice was now forecasting sales in its French business would fall 7 per cent for the fourth quarter of 2017.

Analysts following the company closely said consensus forecasts for the performance of SFR had been for a decline of between 2 to 4 per cent and that the new guidance flies in the face of the company’s defence of its French business, which is the country’s second-largest wireless operator.

The group’s revenue selling to businesses has declined sharply, they said, because of Altice’s larger financial problems.


“Business-to-business is a disaster. It is difficult for a chief investment officer to justify to its chief executive using SFR with the negative headlines of the past six months and constant reorganisation,” said Stephane Beyazian, an analyst with Raymond James.

However, the guidance for a 7 per cent decline could also suggest that SFR’s consumer business also performed weakly because of significant promotional activity to get the business growing again. “That’s a new round of downgrades in SFR estimates,” said Mr Beyazian.

Another analyst who declined to be named, said: “The [French] business is going backwards, but while they had everyone focused on [this week’s] restructuring, they snuck out a warning.”

Altice confirmed the guidance, but added that SFR’s business of selling to consumers was “starting to pay off”.

Doubts about the performance of SFR were the initial catalyst for the sell-off in Altice’s share price, which has nearly halved over the past three months.


In November, Altice was forced to reassure investors about its financial position following weaker than expected third-quarter results at SFR and concerns about the €51bn debt it had amassed during an acquisition spree across the US, France, Portugal and Israel.

Under the changes announced by Altice this week, Mr Okhuijsen is set to run the company’s European business.

Dexter Goei will focus on running Altice USA, relinquishing responsibilities he picked up when he stepped in to run the overall company after the departure of French executive Michel Combes in November.

Both Altice units will be controlled by its largest shareholder and founder, Patrick Drahi, who has become a billionaire and enriched his lieutenants on the back of the company’s growth.

News of the restructuring prompted shares in Altice NV to climb 10.5 per cent on Tuesday, but they finished 7.2 per cent lower on Wednesday to €9.68.

Shares in Altice USA fared better, falling just 1.2 per cent to $22.83 on Wednesday.

Reuters - Saudi Aramco working to raise cheap loans before IPO - banking sources

DUBAI (Reuters) - Saudi Aramco is working to secure billions of dollars in cheap loans from banks seeking to strengthen their ties with the oil giant before its stock listing, banking and export credit agency (ECA) sources said.


Citigroup (Citi), Standard Chartered and Sumitomo Mitsui Banking Corporation were advising on the transactions, which two sources said could raise at least $5 billion to $6 billion, all with ECA-backing.

The bid to raise funds is the latest indication of Saudi Arabia’s push to ensure what could be the world’s biggest initial public offering (IPO) goes ahead in 2018, despite market speculation that sale plans might be delayed or even shelved.

The loans will offer slim returns - probably less than 1 percent a year - but the sources said the banks hoped to position themselves for more work as the kingdom proceeds with selling up to 5 percent of Aramco in an IPO that could value the firm at $2 trillion.

For its part, Aramco wants to leverage its balance sheet before the IPO, after which it could face higher costs because, once listed, it would cease to be a solely state-owned entity benefiting from cheap funds available to sovereign borrowers.

ECAs offer loan guarantees and sometimes financing to help remove political and other risks facing exporters, encouraging trade and lowering the costs of international business.

“There’s momentum for Aramco to tap this form of financing. If they did it after the IPO, they’d have to pay more,” one banker said.

Citi was advising Aramco for loans backed by British and U.S. ECAs, Standard Chartered was advising on ECA funding from continental Europe and Sumitomo Mitsui Banking Corporation was advising on transactions backed by Asian ECAs, the sources said.

The bank mandates expire in 2018, one of the sources said.

>>> What to look at today - 11th of January 2018

Dow -0.07% S&P -0.11% Nasdaq -0.14% Russell -0.02%
Stocks slipped from record highs on Wednesday with the S&P 500 and the Nasdaq registering their first losses of 2018. investors quickly bought the dip thanks in part to a CNBC interview with legendary investor Warren Buffett, who stated that he remains a net buyer of stocks, citing low interest rates and the recently passed tax reform legislation. Equities eventually reached their flat lines in the afternoon but slid back into the red following aReuters report that Canada believes that U.S. President Donald Trump will soon pull the United States out of the North American Free Trade Agreement (NAFTA). Nine of eleven sectors finished in negative territory with the financials (+0.9%) and industrials (+0.1%) groups being the two advancers. financial sector, which is the second heaviest group by weight, advanced at the opening bell due to the increase in Treasury yields and managed to keep the bulk of its gain even though yields returned to their flat lines following a $20 billion 10-yr note reopening that was met with strong demand. The benchmark 10-yr yield settled unchanged at 2.55% after trading as high as 2.59%. WTI +0.7% @ $63.39. Energy lost 0.1%. US After Hours PRGS +8%, KBH +3.5% following earnings/guidance, LPCN -53% following FDA panel vote. The stellar run for equities that ushered in the new year showed signs of waning in Asia on Thursday as the yen remained near a six-week high and traders dialed back their appetite for risky assets amid a jump in government bond yields. Shares from Shanghai to Sydney edged lower.

Nikkei -0.33% Hang Seng +0.01% CSI -0.08% Shanghai +0.04% Shenzen +0.37%

Eur$ 1.1944 CNH 6.52 CNY 6.5133 JPY 111.82 GBP 1.3492 CHF 0.9801 RUB 57.0424 WTI$ 63.51 -0.09%

S&P +0.09% EuroStoxx +0.25% FTSE +0.16% DAX +0.17% SMI +0.18%

Macro :
- China Dec. Auto Sales Fall 0.7% Y/y: CAAM
- Gold Rises on China Fears, Canada Stocks Rebound: Materials Wrap

Keep an eye on :
- ABBN SW : ABB Nominates Li, Matchett, Brock to Board of Directors
- AF FP : Air France-KLM Could Bid for Alitalia With EasyJet: Sole
- AF FP : Air France-KLM to Introduce 5-Year Strategic Plan in June: CEO
- ALT FP : Altran Technologies Launches EU2.13B Syndicated Loan
- BAYN GY : Bayer to Sell About EU1.5B Stake in Covestro
- BP/ LN : California Settles BP Natural Gas Lawsuit, Court Clerk Says
- 1COV GY : Bayer to Sell About EU1.5B Stake in Covestro
- EDF FP :
- EZJ LN : Air France-KLM Could Bid for Alitalia With EasyJet: Sole
- FSKRS FH : Fiskars Revamps Leadership Structure, Reshuffles Managers
- GL FP : Galeries Lafayette’s La Redoute Bid Wins French Antitrust Nod
- KTM AV : KTM Industries 2017 Motorcycle Sales Volume Rises More Than 17%
- NESN VX : *NESTLE SAID NEAR $2.8 BLN U.S. CHOCOLATE UNIT SALE TO FERRERO
- NDA SS : Nordea Top Pick Among Nordic Banks, Berenberg Says
- NOVN VX : Novartis Names Pfizer’s Elizabeth Barrett as Oncology Head
- PGHN SW : Partners Group Assets under management EU62 Bln
- PIRC IM : Pirelli Says Net Proceeds From Offer of Mediobanca Shrs EU152.8m
- CFR SW : Richemont 3Q Sales Rise; Growth Constant FX Beats Estimates
- RIO LN : Rio Is Said to Drop Pursuit of $5 Billion Stake in Lithium Miner
- RYA LN : Ryanair Unions Call Strike in Italy for Feb. 10: Rai News
- GLE FP : SocGen Plans China Brokerage Joint Venture: Eco Observer
- SW FP : Sodexo 1Q Rev. EU5.31B VS EU5.45B; Maintains FY Objectives
- SZU GY : Suedzucker Boosts Full Year Revenue Forecast
- CSS FP : La Chapelle Fashion in Talks to Buy Naf Naf, Unions Say: AFP
- WTB LN : Whitbread Among Top Leisure Picks at Berenberg, Sodexo Key Sell

>>> Europe : Brokers Upgrades & Downgrades - 11th of January 2018

>>> Up
* Anglo American Raised to Overweight at Morgan Stanley
* BASF Upgraded to Outperform at MainFirst; PT 109 Euros
* Credit Suisse Upgraded to Buy at Natixis
* Elior Group Upgraded to Buy at Berenberg
* GTT Upgraded to Add at AlphaValue
* Heineken NV Upgraded to Buy at Jefferies; PT 100 Euros
* Just Eat Upgraded to Overweight at Barclays; PT 10 Pounds
* NH Hotel Upgraded to Buy at Berenberg
* Rezidor Upgraded to Buy at DNB Markets; Price Target 34 Kronor
* Royal Caribbean Upgraded to Buy at Berenberg
* Statoil Upgraded to Neutral at Macquarie
* STMicroelectronics Raised to Outperform at Credit Suisse
* Technotrans Upgraded to Hold at HSBC; Price Target 43 Euros
* William Hill Raised to Outperform at Credit Suisse
* Zeal Network Upgraded to Buy at Berenberg

>>> Down
* Air France-KLM Downgraded to Hold at HSBC; PT 14 Euros
* Aker BP Downgraded to Hold at DNB Markets; PT 210 Kroner
* CFE Downgraded to Sell at ABN Amro Bank; PT 120 Euros
* Entra Downgraded to Sell at DNB Markets; PT 117 Kroner
* FNAC Downgraded to Hold at HSBC; Price Target 100 Euros
* Kerry Group Downgraded to Hold at SocGen; PT 90 Euros
* Lundin Petroleum Cut to Market Perform at BMO; PT 180 Kronor
* Metro Bank Downgraded to Sell at Investec
* Mitchells & Butlers Downgraded to Reduce at Numis
* Paddy Power Downgraded to Neutral at Credit Suisse; PT 87 Pounds
* Paddy Power Downgraded to Sell at Berenberg
* Playtech Downgraded to Hold at Berenberg
* SAP Downgraded to Equal-weight at Morgan Stanley; PT 105 Euros
* Severstal GDRs Downgraded to Sell at Citi; PT $13.80
* Ted Baker Downgraded to Neutral at Goldman; PT 32.50 Pounds
* Tullow Downgraded to Market Perform at BMO
* Tullow Downgraded to Reduce at GMP
* Unibail-Rodamco Downgraded to Neutral at Natixis
* Weir Downgraded to Neutral at Credit Suisse; PT 22 Pounds

>>> Initiation
* Clariant Reinstated at Goldman With Buy
* Sage Rated New Buy at Shore Capital

>>> Call
>> Stock
* *CLARIANT ADDED TO CONVICTION LIST AT GOLDMAN
>> Sector
* Goldman Upgrades Utilities Sector After Recent Underperformance

>>> Asian Update

Asia Market Update: Cryptocurrencies lower on S. Korea raids and plans to close exchanges; China denies stopping purchases of US treasuries

***Headlines/Economic Data***
General Trend: Asian equities trade generally lower
- China Premier Li confirms that 2017 GDP growth expected to exceed official target
- USD/JPY trades marginally higher as China FX Regulator responded to market speculation about the country’s US Treasury holdings; US Long Bond Futures +0.4%
- Australia Nov Retail Sales rise at the fastest pace in over 3 years

Japan
- Nikkei 225 opened -0.6%; closed -0.3%
- Toyota -1%, Honda -2% (outperformed during prior session)
- Fast Retailing -0.5% (expected to report Q1 earnings after close)
- (JP) Japan govt projections show primary surplus delayed by 2 years – Nikkei
- (JP) Japan Credit Bureau (JCB) developing a technology that connects separate blockchains to share their excess capacity, resolving issuesthat arise from heavy traffic on a single ledger – Nikkei
-(JP) Bank of Japan (BOJ) quarterly public opinion of household sentiment: households see inflation at 3% in 1-yr, 2% in 5-yrs
- USD/JPY FT looks at recent yen gains, being attributed to market's growing confidence that G10 central banks will implement synchronous policy tightening

Korea
-Kospi opened -0.1%
- Steelmakers trade lower: Hyundai Steel -2%, Posco -2.3%
- Samsung Electronics -0.7% ( shares remain weaker after release of prelim Q4 results on Tuesday)
- (KR) South Korea President Moon's zeal on North Korea is leaving its allies worried that inter-Korean talks could blow a hole in international sanctions and threaten efforts to denuclearize – Nikkei
- (KR) South Korea Justice Ministry to prepare a crypto exchange shutdown bill; South Korea cryptocurrency exchanges raided by police, Bitcoin falls over 9% on the news
- (KR) South Korea Finance Min Kim: Reiterates closely monitoring property market; home price 'spike' in Gangham driven by speculative demand

China/Hong Kong
-Hang Seng opened flat, Shanghai Composite -0.2%
- Hang Seng Information Tech Index -1.6%
- (CN) China Premier Li: Sees China 2017 GDP at ~6.9% - Xinhua
- (CN) China PBoC OMO: Injects CNY60B v CNY120B prior in combined 7, 14-day reverse repos; Net drains CNY30B v CNY0B prior
- USD/CNY (CN) China PBoC sets yuan reference rate at 6.5147 v 6.5207 prior
- (CN) China Commerce Ministry (MOFCOM): Protectionist sentiment is rising in the US
- (CN) CHINA FX REGULATOR SAFE: REPORT THAT CHINA IS CONSIDERING REDUCING OR STOPPING PURCHASES OF US TREASURIES COULD BE BASED ON WRONG INFORMATION - financial press
Looking Ahead: China Dec Banking Data (including money supply, New Yuan loans) may be released during European session; China Dec Trade Balance tentatively scheduled for Friday

Australia/New Zealand
- ASX 200 opened flat: closed -0.5%
- ASX 200 Utilities Index -0.7%, REIT -0.7%, Energy -0.6%, Financials -0.5%
- Australian Dollar and bond yields rise after better than expected retail sales
- (AU) AUSTRALIA NOV RETAIL SALES M/M: 1.2% V 0.4%E


Other Asia
- (SG) DBS CEO Gupta: Expect interest rates in Singapore to remain high; staying long S$ is a good idea

North America
- US equity markets ended mostly lower: Dow -0.1%, S&P500 -0.1% Nasdaq -0.1%, Russell 2000 flat
-S&P 500 Real Estate Sector -1.5%, Utilities -1.1%: Financials +0.8%
- Xerox (XRX): Said to be in talks with Japan's Fujifilm on a range of possible deals; Fujifilm not expected to acquire all of Xerox
- (US) Leading Republicans said to consider not passing a ‘GOP’ budget this year amid concerns that it would not pass Senate – Politico; - As an alternative plan, GOP leaders are said to have discussed 'deeming' top-line spending numbers, which is only setting total spending numbers without passing a budget.
NAFTA in focus on Wednesday’s Session:
- (CA) Canada officials reportedly increasingly convinced Pres Trump will soon announce a withdrawal from NAFTA – press
- (US) White House official: There has been no change in Pres Trump's position on NAFTA
- (MX) Mexico Central Bank Gov Del Leon: If Trump triggers NAFTA withdrawal there will likely be an impact on Peso; would make inflation more complex
- USD/MXN Trades +0.25% on report that Mexico to leave NAFTA talks if Trump triggers 6-month process to withdraw
Fed Speak:
-(US) Fed's Bullard (non-voter, dove): short of a formal shift in Fed framework, policymakers could lean toward allowing inflation float above target to make up for past shortfalls; Should not hike rates into the teeth of an inverse yield curve; the Fed should strive not to cause a yield curve inversion
-(US) Fed's Kashkari (dove, non-voter): I think the markets are pricing in a lower long-term interest rate environment, which is not actually under the control of the Fed. To me, that explains some of where asset prices are today
-(US) Fed’s Kaplan (non-voter, moderate): three rate hikes is still good base case for 2018; We'll have to see what happens with regards to China and US Treasuries
-(US) Fed’s Evans (non-voter, dove): US economy has been stronger than expected; sees 2.5% GDP growth for both 2018 and 2019; Sees tax cuts adding 0.5% to GDP growth this year, total of 0.8% over two years; sees little long-run economic boost from tax cuts, sees 1.75% long-run growth; Pausing on rate hikes until midyear is a modest proposal
Energy: (US) DOE CRUDE: -4.9M V -2.5ME
-(IR) US govt is said to be preparing new sanctions against Iran over cybersecurity and human rights violations - press
Looking Ahead: US Dec PPI expected to be released, along with comments from Fed's Dudley (seen during NY afternoon)

Europe
- (UK) Chancellor of Exchequer Hammond (Fin Min): UK goals for Brexit are affected by EU's approach; EU needs to spell out what it wants post-Brexit
- (FR) ECB's Villeroy (France): Bank of France will raise France Q4 growth target to 0.6% (from 0.5%); Sees France 2017 GDP growth at 1.9% (from 1.8%)
- (DE) Potential coalition parties in Germany said to favor avoiding ban on diesel – German Press
Looking Ahead: Germany 2017 annual GDP to be released, along with the ECB Account of Monetary Policy Meeting (Dec Minutes)

***Levels as of 01:00ET***
- Nikkei225 -0.3%, Hang Seng +0.1%; Shanghai Composite -0.1%; ASX200 -0.5%, Kospi -0.3%
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.0%, Dax +0.2%; FTSE100 +0.1%
- EUR 1.1970-1.1941; JPY 111.82-111.32; AUD 0.7886-0.7838;NZD 0.7214-0.7183
- Feb Gold -0.1% at $1,318/oz; Feb Crude Oil -0.1% at $63.51/brl; Mar Copper +0.3% at $3.24/lb

>>> US After Hours Summary: PRGS +8%, KBH +3.5% following earnings/gui


After Hours Summary: PRGS +8%, KBH +3.5% following earnings/guidance, LPCN -53% following FDA panel vote

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: RELL +14% (thinly traded), PRGS +8.2%, KBH +3.5%

Companies trading higher in after hours in reaction to news: FNJN +9.5% (Federal Circuit affirms Finjan's patents), MFIN +4.3% (continued strength), EXPE +1.8% (upgraded to Overweight at Morgan Stanley), Z +1.6% (also being attributed to Morgan Stanley upgrade), SGY +1.3% (light volume - announced drilling success at the deep water Mt. Providence development well at Mississippi Canyon Block 28), IGT +1% (ticking higher; to provide systems solutions for Nisqually Red Wind Casino), GBT +0.6% (continued strength)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: LEDS -27% (was up more than 70% today)

Companies trading lower in after hours in reaction to news: LPCN -52.6% (FDA panel voted against approval of Lipocine's Tlando 6-13), NHLD -16.4% (after today's 65% move higher), ORC -5.5% (reduces monthly dividend to $0.11/share from $0.14/share; estimates qtrly GAAP net loss of $0.12 per share including $0.58 per share of realized and unrealized losses on RMBS/derivative instruments), HMNY -4.5% (pulling back following CEO Mitch Lowe appearance on BloombergTV), FTAI -3.7% (commences 7 mln common stock offering), AKAO -3.5% (Baker Bros discloses it has nearly liquidated its passive stake), XL -2.6% (light volume; estimates natural catastrophe net losses of approx $45 million related to the recent wildfires in California and $20 million related to other events; reaffirms previously disclosed aggregate net losses related to Q3 catastrophes), ARDM -2% (ahead of meeting with the FDA Antimicrobial Drugs Advisory Committee tomorrow), ICHR -1.6% (continued weakness), COUP -1.4% (to offer $200 mln convertible senior notes due 2023)

>>> US Close Dow -0.07% S&P -0.11% Nasdaq -0.14% Russell -0.02%


Closing Market Summary: Perfect No More; Winning Streak Comes To An End

Stocks slipped from record highs on Wednesday with the S&P 500 and the Nasdaq registering their first losses of 2018. All three major U.S. indices--the S&P 500, the Nasdaq, and the Dow Jones Industrial Average--lost 0.1% while the small-cap Russell 2000 finished flat.

A Bloomberg report that China may trim or halt its purchases of U.S. Treasuries prompted overnight selling in the Treasury market, sending the yield on the benchmark 10-yr Treasury note to its highest level since March 2017. The higher yields pushed equity investors to take some profits at the start of Wednesday's session.

The Dow, the S&P 500, and the Nasdaq hit their worst marks of the day shortly after the opening bell, holding losses between 0.5% and 0.7%.

However, investors quickly bought the dip thanks in part to a CNBC interview with legendary investor Warren Buffett, who stated that he remains a net buyer of stocks, citing low interest rates and the recently passed tax reform legislation.

Equities eventually reached their flat lines in the afternoon but slid back into the red following a Reuters report that Canada believes that U.S. President Donald Trump will soon pull the United States out of the North American Free Trade Agreement (NAFTA). General Motors (GM 43.00, -1.05), which was flat ahead of the report, finished lower by 2.4%.

The market made one last run in the final minutes, but ended just short of its unchanged mark.

Nine of eleven sectors finished in negative territory with the financials (+0.9%) and industrials (+0.1%) groups being the two advancers.

The financial sector, which is the second heaviest group by weight, advanced at the opening bell due to the increase in Treasury yields and managed to keep the bulk of its gain even though yields returned to their flat lines following a $20 billion 10-yr note reopening that was met with strong demand. The benchmark 10-yr yield settled unchanged at 2.55% after trading as high as 2.59%.

As for the other sectors, losses ranged from less than 0.1% (consumer discretionary) to 1.5% (real estate). The top-weighted technology sector (-0.3%) underperformed with chipmakers showing particular weakness; the Philadelphia Semiconductor Index dropped 1.2%.

Meanwhile, West Texas Intermediate crude futures advanced 0.7% to $63.39 per barrel, a three-year high, after the Department of Energy said U.S. crude inventories declined for the eighth week in a row last week, dropping by 4.9 million barrels. The energy sector, which typically moves in tandem with oil prices, lost 0.1%.

Elsewhere, equity indices in the Asia-Pacific region finished Wednesday on a mixed note with Japan's Nikkei (-0.3%) slipping from a 26-year high. In Europe, the UK's FTSE added 0.2%, but the Euro Stoxx 50 lost 0.4%, breaking its five session winning streak.

Reviewing Wednesday's economic data, which included Import/Export Prices for December, Wholesale Inventories for November, and the weekly MBA Mortgage Applications Index:

  • Import prices increased 0.1% in December, but were down 0.1% excluding fuel. Export prices, meanwhile, decreased 0.1% and were flat excluding agriculture.
    • The key takeaway from the report is that it will continue to foment budding inflation concerns, especially since the dollar is weakening, labor markets are tightening, and global growth is improving.
  • Wholesale inventories increased 0.8% in November (consensus 0.7%) following an upwardly revised 0.4% decline (from -0.5%) in October. Wholesale sales jumped 1.5% in November on top of an upwardly revised 0.8% increase (from 0.7%) in October.
    • The key takeaway from the report is that the sales increase outpaced the inventory increase by a sizable margin, which is a step in the right direction for wholesalers trying to regain some pricing power.
  • The weekly MBA Mortgage Applications Index increased 8.3% to follow last week's 2.8% decline.

On Thursday, investors will receive both the Producer Price Index for December (consensus +0.2%) and the weekly Initial Claims report (consensus +248K) at 8:30 AM ET. The December Treasury Budget (consensus -$47.5 billion) will be released at 2:00 PM ET.

  • Nasdaq Composite: +3.6% YTD
  • S&P 500: +2.8% YTD
  • Dow Jones Industrial Average: +2.6% YTD
  • Russell 2000: +1.6% YTD