Data Points Nov. 2, 2017

Amazon:
- $160bn in annual revenues. 
- accelerated to sales growth of 34% and forecast 28-38% 
- Fastest pace since 2011. 
- Whole Foods only added $1.3bn; 
- Walmart’s $500bn of will be overtaken in five years at current growth rates
- Cash outflow of $1bn in the past 12 months

Has America Become Less Competitive?

The Economist raised this issue by pointing out that the persistence of profitability has increased for American firms. "Motes" around the company may rise from well-earned technical advantages and superior products, but they could also be signals of monopoly and rent seeking behaviors. The article pointed out the dramatically increased concentration of companies across 900-odd industries, but what I found most convincing was the role of regulation. Mastery of regulation, especially in industries such as finance and healthcare, gives incumbents incredible advantage. 

MRMC on the Atlantic's "Obama Doctrine"

The Atlantic's treatment of Obama's foreign policy explores with depth the troubles and conflicts that the US leader has in prioritizing problems, imposed onto him both by his personal views and by the complexity of today's evolving world order.

What I liked the most from the article was Obama's clinical description of what has been happening in failed states: "You have countries that are failing to provide prosperity and opportunity for their people. You've got a violent, extremist ideology, or ideologies that are turbocharged through social media. you've got countries that have very few civic traditions, so that as autocratic regimes start fraying, the only organizing principles are sectarian"

The quote reminded me of Tocqueville's treatment of the US, in how it has mastered the "science of association," and how the Confucian traditions have been a source of resilience in Asia even after wars devastated many of them. 

New Data Dumpt

Martin Wheatley, head of British FCA, commented that regulating asset managers who are responsible for "maybe 15 percent of liquidity flow" is perverse when the government leaves off-shore vehicles alone.

Pernod Ricard, headed by grandson of founder Ricard and owner of Absolut and Ricard brands, is struggling.

Fosun, after buying Club Med and Cirque du Soleil, bids for Bnaco Novo, the biggest bank in Portugal.

J&J lost the bid for Pharmacyclics -AbbVie took it for $21bn.

Elliott Associates revealed 7.1% stake in Samsung C&T. This will not be easy for the Elliott peeps.

Fuld made a public comeback unrependent and blamed the government for "mandating" its bankruptcy.

The chip-making industry is no longer a growth industry and scale is important for major players like Samsung and Apple. Avago (Singpoare) has acquired US' Broadcom, and we should expect more deals like this from the fabless industry.

Google has already sold 1m of its Google Cardboard, and its JV with GoPro (16-camera device + Google algos) will be interesting.

Hanergy is finally being investigated after its stock price doubled and halved on the same day.

Carved out of RBS in 2010, Worldpay offers payment services for businesses and will go public with $8bn valuation and most likely be marketed as fintech.

A new bacetria has dealt a severe blow to Italian olives. Extra virgins will face pain.

Whole milk powder, the global benchmark, is at its lowest level since reaching $6,000 peak in 2013. Now it's $2,400.

Maersk has ordered 11 new vessels to remain the world's largest container shipping company. With market share of 15% of seaborne freight, the Danish company is a bellwether for global trade. Daewoo won these orders.

Dixons Carphones' merger has proven to be successful.

Data Dump June

Petrobas just issued century bonds with 8.75 yields. With such time horizon, principal repayment is discounted into a few cents. Past issues have come from France's EDF and Mexico in April.

Obama's Iran Attempt

"For the greater good, FDR stuck an alliance with Stalin, Nixon with Mao, Reagan Afghanistan's mujahideen. By these standards, Iran's transgressions are small potatoes" -Edward Luce on the FT#

Big Updates V

- Barclays and RBS are shrinking their  investment bank operations.

- Many Syrian rebels claim that their original cause of felling Assad now looks unrecognizable. 

- Bentley, owned by Volkwagen, showed its first sports car since 1920s

- Univision, largest Spanish Broadcaster in the US, is issuing $1bn in debt.

 - Endo outbid Valeant for Salix, pharma is deal crazy.