Tag: Tesla

November 28, 2017

Perspective

FT – Tesla truck will need energy of 4,000 homes to recharge, research claims – Peter Campbell and Nathalie Thomas 11/27

  • “One of Europe’s leading energy consultancies has estimated that Tesla’s electric haulage truck will require the same energy as up to 4,000 homes to recharge, calculations that raise questions over the project’s viability.” 
  • “The US electric carmaker unveiled a battery-powered lorry earlier this month, promising haulage drivers they could add 400 miles of charge in as little as 30 minutes using a new ‘megacharger’ to be made by the company.”
  • “John Feddersen, chief executive of Aurora Energy Research, a consultancy set up in 2013 by a group of Oxford university professors, said the power required for the megacharger to fill a battery in that amount of time would be 1,600 kilowatts.”
  • “That is the equivalent of providing 3,000-4,000 ‘average’ houses, he told a London conference last week, ten times as powerful as Tesla’s current network of ‘superchargers’ for its electric cars.” 

Bloomberg Technology – Telsa’s Newest Promises Break the Laws of Batteries – Tom Randall and John Lippert 11/24

  • “Elon Musk touted ranges and charging times that don’t compute with the current physics and economics of batteries.”

NYT – If Americans Can Find North Korea on a Map, They’re More Likely to Prefer Diplomacy – Kevin Quealy 7/5

  • “Just 36% got it right.”

Worthy Insights / Opinion Pieces / Advice

NYT – Initial Coin Offerings Horrify a Former S.E.C. Regulator – Nathaniel Popper 11/26

NYT – Myths of the 1 Percent: What Puts People at the Top – Jonathan Rothwell 11/17

  • “Dispelling misconceptions about what’s driving income inequality in the U.S.”

WSJ – Samsung’s Tumble Sounds a Warning for Tech Stocks – Jacky Wong 11/27

  • “The fall in Samsung shares Monday followed a mild analyst report – a sign of the market’s current high state of nervousness.”

Zero Hedge – Demographic Dysphoria: Swiss Village Offers Families Over $70,000 To Live There 11/25

Zero Hedge – There Is Just One Thing Preventing Elon Musk’s Vision From Coming True: The Laws of Physics 11/26

Markets / Economy

WSJ – The Economy Is Humming, but Businesses Aren’t Borrowing – Christina Rexrode 11/26

FT – In charts: how US retailers fared as Amazon powered ahead – John Authers and Lauren Leatherby 11/22

Real Estate

NYT – How Much Income Do You Need to Buy a Home? – Michael Kolomatsky 11/23

WSJ – Wealthy Asian Buyers Scoop Up Trophy Properties in London – Olga Cotaga 11/21

  • “Pressured by low yields and political issues at home, cash-rich private investors from China and Hong Kong are snapping up trophy buildings in the U.K. capital. Often prepared to spend whatever it takes, these wealthy investors are pricing institutional investors out of the market. And because they don’t need to borrow to buy, U.K. lenders are feeling the pinch.”
  • “Of the £12.2 billion ($16.1 billion) spent on central London offices in the first three quarters this year, almost half came from private Chinese and Hong Kong buyers, according to real-estate consultant Knight Frank. That is a big jump from last year, when the group accounted for just less than a quarter of overall spending, and from 2015, when the figure was 7%.”
  • “By borrowing money at home, Chinese and Hong Kong investors have also pushed down property lending in London. According to a report by De Montfort University, the volume of new loans in the U.K. has fallen 18% year-over-year in the first half of 2017 due to a ‘slowdown in purchasing activity of new properties requiring debt during 2017’.”
  • “U.K. institutional investors such as asset managers are also dialing back. In all, they have bought £880 million of central London real estate so far this year, out of a total £15.68 billion spent by all investors, according to www.propertydata.com. Two years ago, U.K. institutions bought £2.89 billion worth of property.”
  • “’London is a two-tier market right now—the Asian investors and everybody else,’ said Joe Valente, head of research and strategy of European real estate at J.P. Morgan Asset Management, adding that the firm is waiting for the prices to fall before entering the market again.”

Finance

WSJ – Daily Shot: FRED – Commercial and Industrial Loan Growth 11/27

Visual Capitalist – Visualizing the Journey to $10,000 Bitcoin – Jeff Desjardins 11/27

FT – ICO regulation inconsistent as cryptocurrency bubble fears grow – Caroline Binham 11/23

  • “US scrutiny of cryptocurrency offerings could mean criminal penalties are looming.”

Africa

WSJ – Mugabe’s Reign Ushered In Zimbabwe’s Economic Decline – Matina Stevis-Gridneff 11/22

China

FT – Alibaba’s finance arm bans high-interest consumer loans – Gabriel Wildau 11/23

WSJ – Beijing is Making Its Most Serious Effort Yet to Tackle Its Financial-System Issues – Anjani Trivedi 11/27

Japan

FT – Corporate Japan hit by severe labor shortages – Robin Harding 11/26

  • “Japanese companies are scouring the country for workers and offering more attractive permanent contracts as they struggle to overcome the worst labor shortages in 40 years.”
  • “Companies across a range of sectors — from construction to aged care — have warned in recent days that a lack of staff is starting to hit their business.”
  • “The hiring difficulties highlight Japan’s declining population and the strength of its economy after five years of economic stimulus under Prime Minister Shinzo Abe.”
  • “’Delays to construction projects are becoming chronic,’ said Motohiro Nagashima, president of Toli Corporation, one of Japan’s biggest makers of floor coverings.”
  • “One way companies are tackling shortages is by offering more generous permanent contracts, which provide job security and pension benefits. That policy has broken a decades-long trend towards more part-time and contract work.”
  • “The way companies are responding — using every means other than wage increases — suggests that shortages will not yet turn into higher inflation.”
  • “Irregular work has risen relentlessly from about 19% of total employment when Japan’s bubble burst in 1990, to a peak of 37.9% in 2015.”
  • “But there are now signs of stabilization, with the percentage of irregular staff falling to 37.4% in the third quarter of this year.”

Middle East

FT – Saudi elite start handing over funds in corruption crackdown – Simeon Kerr 11/24

Other Interesting Links

WSJ – The Rise and Fall of a Law-School Empire Fueled by Federal Loans – Josh Mitchell 11/24

October 10, 2017

Perspective

Business Insider – Forget stealing data – these hackers broke into Amazon’s cloud to mine bitcoin – Becky Peterson 10/8

  • Hackers are seeking ways into corporate computers and cloud space to gain access to computing power in order to mine bitcoin.

NYT – Wall Street Firms Gambled on Puerto Rico. They’re Losing. – Matthew Goldstein 10/9

Worthy Insights / Opinion Pieces / Advice

WSJ – The Truth Is Catching Up With Tesla – Charley Grant 10/7

  • “CEO Elon Musk is a visionary, but there is a fine line between setting aggressive goals and misleading shareholders.”

FT – Tech’s fight for the upper hand on open data – Rana Foroohar 10/8

  • “What happens if big companies control who has access to the marketplace of ideas?”
  • “Whether your concern is anti-competitive business practices, or the preservation of free speech, one thing that we have to grapple with is that we are both the raw material and the end consumer of what is being sold online. We are the product.”

WSJ – Why Bitcoin’s Bubble Matters – Rob Curran 10/8

  • “Ask most people about the bitcoin bubble, and they’ll probably have the same reaction: It’s interesting, but it won’t affect me. After all, they’ll figure, they aren’t investing in bitcoin, so if there is a bubble, and it does burst, they’ll be just fine.”
  • “Well, maybe they should start worrying.”
  • “The market for cryptocurrencies—digital tokens used to transfer money between individuals’ computers with minimal fees—has grown in stature in recent years and is increasingly entwined with broader financial markets as well, a trend that is likely to continue. Bitcoin is now traded by some of the institutional investors around which bond and stock markets revolve.”
  • “As the bubble grows, analysts say, a crash has a greater chance of affecting investor sentiment about stocks, especially in the technology and financial sectors.”
  • “’Any product that blows up, there’s always collateral damage,’ says Joe Kinahan, chief market strategist at brokerage TD Ameritrade . Tech and financial ‘companies who are relying on it for business, and those who have put a significant investment into the [blockchain] infrastructure would be the first’ to suffer collateral damage, Mr. Kinahan says.”
  • “At around $150 billion, the market capitalization of bitcoin and other cryptocurrencies is up by a factor of roughly eight this year, according to the Cointelegraph website. If this growth rate continues, what’s now a relatively small part of global investible assets could become a significant one, says Lorenzo Di Mattia, manager of hedge fund Sibilla Global Fund and a student of the history of speculation. By next year, Mr. Di Mattia expects the bubble to have inflated to the point where a pop could send a shock wave through the stock market.”
  • “Give bitcoin its due: Most people in finance agree that bitcoin and the blockchain, the open-access ledger that underpins the currency, were great inventions; even as J.P. Morgan’s Mr. Dimon derides bitcoin as a ‘fraud,’ his bank is working on its own blockchain technology.”
  • “Clever as it is, however, bitcoin has shown no signs of replacing the dollar and other ‘fiat’ currencies.”
  • “Meanwhile, speculation in bitcoin—driven by hopes of its wider adoption—actually has diminished its usefulness as a means of exchange.”
  • So speculation for now.
  • Some that are exposed…“a crash in the price of leading cryptocurrencies would almost certainly hurt shares of Nvidia Corp., the chip maker that was the biggest percentage gainer on the S&P 500 in 2016, and its rival Advanced Micro Devices Inc., at least temporarily. Both companies have noted in their quarterly filings that cryptocurrency miners are a key source of demand for their graphic chips. Sales of chips to cryptocurrency sources represented 6.7% of Nvidia’s fiscal second-quarter revenue of $2.23 billion.”
  • Then there are those seeking to create an ETF in bitcoins (regulators haven’t agreed so far). If one does get through, there is quite a bit of institutional capital waiting.
  • Stay tuned.

Markets / Economy

WSJ – Central Banks Pull Back as Global Growth Picture Brightens – Josh Zumbrum 10/8

  • “Following the financial crisis from 2007-2009, the world’s big central banks had been net buyers of financial assets in global markets, expanding their portfolios of government bonds, mortgage debt and corporate securities by 1% to 3% of global economic output per year for much of the past six years.”
  • “Now that’s changing. The Bank of England announced in February it would mostly end its bond purchases, the Fed stopped buying bonds at the end of 2014 and announced in September it would move ahead with a plan to gradually shrink its holdings, and the European Central Bank is expected to announce at the end of October it will slow its pace of purchases.”
  • “All told, net purchases are on track to drop to 2.4% of global GDP by the end of this year, 0.8% of global GDP at the end of next year, and by mid-2019 the central banks of advanced economies will be shrinking, according to estimates by the Institute of International Finance, a Washington, D.C.-based organization which represents the global financial industry.”
  • “Interest rates are ticking up as well, another form of more restrictive monetary policy. The Federal Reserve has raised interest rates four times since 2015 and is expected to do so again in December. The Bank of Canada raised rates in July and September and could move again this year. Meantime the Reserve Bank of Australia and Bank of Korea are laying the groundwork for higher rates next year.”

Real Estate

CoStar – Washington Prime Turning Over Pair of Malls to Lenders; Will Buyback One – Mark Heschmeyer 10/5

  • “Washington Prime Group Inc. continued its portfolio re-construction agreeing to turn two malls over to lenders but with plans to buyback one of them. It also sold an additional mall and repaid the debt on a fourth.”
  • “Washington Prime agreed to transfer the Southern Hills Mall in Sioux City, IA, to the lender. Currently encumbered with the $99.7 million mortgage loan, it is currently anticipated that a wholly-owned affiliate of Washington Prime Group will repurchase the 571,465-square-foot property from the lender for $55 million or about $96/square foot. Washington Prime will recognize a $45 million in gain on debt extinguishment.
  • “The debt yield on the current mortgage loan is approximately 7.5% with a yield on the anticipated purchase of approximately 13.5%. The transaction is expected to close this month, subject to due diligence and customary closing conditions, the company said.”
  • “In note discussing the deal, analysts at Morgan Stanley Research said, ‘We agree that it a compelling way to reduce debt loads, but we wonder if the CMBS market will remain a viable lending alternative for lower productivity malls if it ultimately results in a ‘heads I win, tails you lose’ outcome in favor of the borrower.'”

Tech

Economist – Tech giants are building their own undersea fiber-optic networks 10/7

  • “On September 21st Microsoft and Facebook announced the completion of a 6,600km (4,100-mile) cable stretching from Virginia Beach, Virginia, to Bilbao, Spain. Dubbed Marea, Spanish for ‘tide’, the bundle of eight fiber-optic threads, roughly the size of a garden hose, is the highest-capacity connection across the Atlantic Ocean. It is capable of transferring 160 terabits of data every second, the equivalent of more than 5,000 high-resolution movies.”
  • “Such ultra-fast fiber networks are needed to keep up with the torrent of data flowing around the world. In 2016 international bandwidth usage reached 3,544 terabits per second, roughly double the figure in 2014. Firms such as Google, Facebook and Microsoft used to lease all of their international bandwidth from carriers such as BT or AT&T. Now they need so much network capacity to synchronize data across their networks of data centers around the world that it makes more sense to lay their own dedicated pipes.”
  • “This has led to a boom in new undersea cable systems. The Submarine Telecoms Forum, an industry body, reckons that 100,000km of submarine cable was laid in 2016, up from just 16,000km in 2015. TeleGeography, a market-research firm, predicts that $9.2bn will be spent on such cable projects between 2016 and 2018, five times as much as in the previous three years.”

Canada

WSJ – Daily Shot: Scotiabank – Home Price Indices – Repeat Sales 10/9

WSJ – Daily Shot: Scotiabank – Canadian Household Debt and Balance Sheets 10/9

WSJ – Daily Shot: Scotiabank – Canadian Home Equity & RE Assets 10/9

July 11, 2017

Perspective

Fortune – This Is the Average Pay at Lyft, Uber, Airbnb and More – Erika Fry & Nicolas Rapp 6/27

Worthy Insights / Opinion Pieces / Advice

WSJ – How Fixing Italy’s Banks Is Helping Europe Heal – Paul Davies 7/10

NYT – How the Growth of E-Commerce Is Shifting Retail Jobs – Robert Gebeloff and Karl Russell 7/6

Markets / Economy

WSJ – Tesla Sales Fall to Zero in Hong Kong After Tax Break Is Slashed – Tim Higgins and Charles Rollet 7/9

  • “Tesla Inc.’s sales in Hong Kong came to a standstill after authorities slashed a tax break for electric vehicles on April 1, demonstrating how sensitive the company’s performance can be to government incentive programs.”
  • “Not a single newly purchased Tesla model was registered in Hong Kong in April, according to official data from the city’s Transportation Department analyzed by The Wall Street Journal.”
  • “In March, shortly after the tax change was announced and ahead of the April 1 deadline, 2,939 Tesla vehicles were registered there—almost twice as many as in the last six months of 2016.”
  • “As a result of the new policy, the cost of a basic Tesla Model S four-door car in Hong Kong​ has effectively risen to around $130,000 from less than $75,000.”
  • “Hong Kong’s decision is effective through March 2018, and the government has said it would review the policy before then.”

China

NYT – China’s Wanda Signals Retreat in Debt-Fueled Acquisition Binge – Sui-Lee Wee 7/10

  • “A year ago, the Chinese billionaire Wang Jianlin declared the dominance of his vast entertainment empire, Dalian Wanda Group, boasting that his theme parks were a ‘pack of wolves’ that would defeat the lone ‘tiger’ of Disney’s Shanghai resort.”
  • “Now, Mr. Wang is retreating, in a sign that Wanda could be reaching the limits of its debt-fueled expansion.”
  • “Wanda said on Monday that it would sell the theme parks as part of a $9.3 billion deal that includes 76 hotels and a major chunk of 13 tourism projects. The cash from the deal, with the property developer Sunac China, would be used to pay down debt.”
  • “The deal announced on Monday would help Wanda pay off some of its debt.”
  • “Sunac would pay $4.4 billion for a 91% stake in each of the 13 tourism projects, all in China, and would take over the loans for the projects. Wanda also agreed to sell 76 hotels for $4.9 billion.”
  • “In the deal with Sunac, Wanda would continue to operate all of the projects under the company’s brand name, and it would own fewer underperforming hotels.”
  • About the assets…
  • “…Only four of the 13 theme parks being sold are up and running; most are in the planning stages. Wanda opened its first theme park, an indoor one, in the Chinese city of Wuhan. But it closed after 19 months for ‘upgrades and renovations,’ and it has yet to reopen.”
  • So why would Sunac buy underperforming hotels and theme parks – at a premium? You’ll note that Dalian’s hotel stock (Wanda Hotel) price was up 155% on the news…
  • “I don’t understand this move by Sunac. Where are they getting this endless flow of money?” – Deng Zhihao, a real estate economist with Fineland Assets Management Company based in Guangzhou, China.
  • “’Last year, they were the property developer that bought the most number of properties,’ he added. ‘And this year, they’ve spent a lot of money to save LeEco.’”
  • LeEco is an embattled company with a charismatic founder with grand ambitions but appears to be insolvent (which would result in a $2.2 billion loss to Sunac).

July 7, 2017

If you were to read only one thing…

FT – Japan suffers record decline in population – Robin Harding 7/5

  • “Japan’s native population fell by a record amount in 2016, but a jump in the number of foreign residents limited the overall annual decline.”
  • “According to the Internal Affairs Ministry, the number of Japanese fell 308,084 to 125.6m, reflecting decades of low birth rates and population ageing.”
  • “That was offset by a 7% increase in the foreign resident population to 2.3m — a rise of 148,959 people — as increasing labor shortages led to inflows of students and guest workers.”
  • “The figures reflect a fundamental question for Japan in the years ahead: whether it will allow immigration to sustain its overall population or accept a decline to preserve ethnic homogeneity.”
  • “For the first time since the survey began in 1979, the number of annual births fell below 1m, with 981,202 babies born in 2016. Deaths reached a high of 1.3m.”
  • “According to projections from the National Institute of Population and Social Security Research, the pace of decline will rise every year until 2045, by which time Japan will be losing about 900,000 residents a year — equivalent to a city the size of Austin, Texas.”
  • “Given many years of low birth rates, there is no quick way to reverse that decline, so the only alternative is immigration.”
  • “Japan’s population continued to shift towards big cities and Tokyo in particular. The population of the capital rose by 115,000 to 13.5m, an increase of 0.9%, while the surrounding prefectures of Saitama, Chiba and Kanagawa also gained residents.”
  • “But population decline accelerated in isolated rural areas, with Aomori, Akita and Kochi prefectures all losing more than 1% of their residents.”

Perspective

WSJ – Daily Shot: BAML – S&P 500 Market Ownership – Vanguard 7/6

FT – US raises spectre of military action to deal with North Korea – Bryan Harris, Demetri Sevastopulo, and Katrina Manson 7/5

  • “Self-restraint, which is a choice, is all that separates armistice and war. As this alliance missile live-fire shows, we are able to change our choice when so ordered by our alliance national leaders.”

Bloomberg – A Quarter of Euro Area’s Unemployed Resides in Spain – Jana Randow 7/4

Worthy Insights / Opinion Pieces / Advice

WSJ – CEO-Worker Pay Ratio Generates Outrage-And Some Insight – Stephen Wilmot 7/6

FT – Lex in-depth: Together in electric dreams – Tom Braithwaite 7/6

Markets / Economy

WSJ – Daily Shot: Haver Analytics & Renaissance Macro Research – American Auto Preference 7/6

Real Estate

WSJ – Daily Shot: Statistics Canada – Real Estate Transaction Costs as Percentage of GDP 7/6

WSJ – Condo Supply Swells in Manhattan – Josh Barbanel 7/6

China

WSJ – Reality Bytes: A Highflying Tech Entrepreneur Crashes Back to Earth – Li Yuan 7/6

  • “Rather than being a shining star of visionary entrepreneurship, LeEco is turning into a cautionary tale of the hype surrounding China tech. The lesson for investors: When it comes to Chinese tech companies, the rules of economics still apply.”

Europe

WSJ – Italy Formally Takes Control of Monte dei Paschi – Deborah Ball 7/5

  • “The Italian government took control of Banca Monte dei Paschi di Siena on Tuesday, injecting €5.4 billion ($6.1 billion) into the troubled lender as part of a broad plan to bring one of Europe’s weakest banks back to health.”
  • “The state recapitalization is the centerpiece of a deep overhaul of Monte dei Paschi, Italy’s fourth-largest lender, that will also include the transfer of the bank’s €28.6 billion in bad loans to a special vehicle, a cap on remuneration of its top executives and deep cuts in personnel.”
  • “The bank, which is the world’s oldest, gave details of its plan Wednesday in a presentation to analysts, which include the closure of 600 branches and 5,500 job cuts, bringing its total job count to about 20,000 by 2021.”
  • “Under pressure from the European Central Bank, which is pushing European banks to address the problem of bad loans, Italian banks have stepped up efforts to sell and liquidate sour debt, with tens of billions of such loans earmarked for disposal.”
  • “Nonetheless, the Italian banking system is among the weakest in Europe, with about €200 billion in bad loans. The banks have suffered from a combination of poor management, low interest rates, poor profitability and economic growth that has been the weakest in the region for years.”
  • “Italy’s banking woes remain a serious impediment to a stronger recovery in the country, which isn’t enjoying the rebound other European countries have seen. Italy’s economy is expected to grow about 1% this year, slightly more than half the rate for the eurozone as a whole.”