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A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web

The Financial Times’ Martin Wolf published “Why further financial crises are inevitable” on Tuesday, and, although it’s behind the FT’s paywall (there are free clicks available for those willing to register with them) , it’s too good to ignore here,

“Financial regulation is procyclical: it is loosened when it should be tightened and tightened when it should be loosened … with average ratios of [bank] assets to core capital of around 17 to one, their loss-bearing capacity remains limited … Over time, regulation degrades, as the forces against it strengthen and those in its favour corrode. The bigger the disaster, the longer stiff regulation is likely to last. But it will go in the end. The very fact that the policy response to the latest crisis successfully prevented another depression increases the chances of an earlier repetition. That the private sector remains heavily indebted makes this outcome more likely.”

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““Why further financial crises are inevitable” – Wolf, Financial Times

***

U.K.-based Morgan Stanley analyst Martijn Rats argues that Brent crude is set to climb to US$75 from the current level just aboveUS$67,

“On our estimates, the oil market is undersupplied by 0.5 mb/d in 2Q, increasing to 0.8 mb/d by 3Q. This should drive OECD inventories 6-7% below the 3-year moving average. If history is any guide, this supports a more deeply backwardated forward curve. We expect the 1-12 month Brent time spread to rally to $4.5 from $1.8/bbl at the moment. Under these conditions, we see the front month Brent contract rising to $75/bbl by end-3Q.”

“@SBarlow_ROB MS: Brent to $75” – (research excerpt) Twitter

“ Oil prices dip on economic worries despite tight supply” – Reuters

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Federal Express reported profits and a disappointing forecast for the rest of 2019. The company is highly sensitive to global economic growth, so the reports reflect ongoing slowdown concerns,

"FedEx Corp on Tuesday cut its 2019 profit forecast for the second time in three months, sending its shares down more than 5 percent … ‘Slowing international macroeconomic conditions and weaker global trade growth trends continue,’ FedEx Chief Financial Officer Alan Graf said in a statement on Tuesday.”

“FedEx cuts profit forecast again on economy, Express woes” – Reuters

“Stocks under pressure | Fed's rate decision set | FedEx warns of global slowdown” – CNBC

“ It’s China slowdown — not the trade war — that investors see as the bigger risk” – Bloomberg

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I’ve written about video games as investment theme before as gaming replaces television and movie watching and also conventional employment in some cases. Google apparently shares this optimism, announcing a new, large-scale gaming initiative,

“Google announced a new service, Stadia, that will allow gamers to play the biggest games on any Android or Chrome-based device (including any device with a Chrome browser).

"It could be extraordinary. I mean ... the name isn’t. The name is absolutely terrible and sounds like a disease. But the service itself could be extraordinary. … Game streaming is, according to many in the industry, the future of how we play the most demanding games, which hog resources on personal computers that cost thousands more than a Nintendo Switch. Instead of a big, PC gamers should be able to subscribe to a service and let some distant server handle all the heavy lifting.”

“All the Details About Stadia, Google's Huge Bet on the Future of Gaming” – Gizmodo

“Sony and Nintendo shares drop on Google gaming plans” - Financial Times (paywall)

“Google unveils gaming project that will use AMD processors. Though it was well-known news, AMD's stock rallied 12%” – Bloomberg

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***

Tweet of the Day:

Diversion: “Pilot Who Hitched a Ride Saved Lion Air 737 Day Before Deadly Crash” – Bloomberg

Newsletter: “Apple looks to put the final nail in conventional television’s coffin” – Globe Investor

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