Record highs for Wall Street quartet send other stocks higher [Reuters]
World stocks on Tuesday rode the slipstream of the first joint all-time high for Wall Street's four main markets since 1999, while oil prices hit their highest level since October.
A powerful earthquake hitting the same part of Japan that suffered a nuclear disaster in 2011 nudged up the safe-haven yen. The dollar .DXY slipped off a six-month high as the rally in oil and metals prices also drove up commodities-linked currencies such as the Australian dollar.
Small Banks Cheer Trump. So, After a Pause, Do Big Ones. [NYT]
For now, banks both large and small are benefiting from expectations that the president-elect will roll back regulations on just about every aspect of the industry, including the fees banks can charge, whom they can lend to and how much capital they have to hold.
Banks would also benefit from the higher interest rates that are expected if a Trump administration’s fiscal stimulus program revives inflation. Higher rates would increase the value of some of the banks’ holdings and would widen banks’ margins on loans.
But like nearly all of Mr. Trump’s policy positions, his plan for banking regulation has not been explained in any great detail. Mr. Trump’s feelings on banks, perhaps more so than other industries, are difficult to sort out.
OPEC Oil Deal is Likely, Officials Say [WSJ]
OPEC officials said Tuesday they were close to agreement on the outlines of a production-cut deal, but warned there were sticking points to be resolved next week when the group formally meets in Vienna.
Notably, the Organization of the Petroleum Exporting Countries is considering a deal that would last for six months rather than the previously discussed year, officials said.
Nominating Mnuchin for Treasury Will Dredge Up Mortgage Meltdown Controversies [Bloomberg]
Dubious lending practices. Bailouts. Foreclosures. Robo-signing. Huge executive paydays. If Steven Mnuchin is nominated for Treasury secretary, his confirmation process promises to dredge up every controversy of the U.S. mortgage meltdown almost a decade ago.
Mnuchin is a former Goldman Sachs Group Inc. partner and movie financier with no government experience who spent the past six months working as Donald Trump’s chief fundraiser. Trump’s transition team recommended Mnuchin for the Treasury job, people with knowledge of the matter said last week, and a decision could come any day. The part of his background that’s likely to get the most scrutiny is the six years he spent running OneWest Bank, a Southern California lender.
Apple is headed for a clash with Trump on some crucial issues [CNBC]
If President-elect Donald Trump stays true to his word, Apple should hope that a big wad of extra cash can help compensate for what are likely to become big fights with the new administration over trade, encryption and immigration.
Even though Apple would benefit immensely from Trump's proposed tax reform, the president-elect's stance on trade with China, his immigration-hawk attorney general, and his cybersecurity appointees could pose threats to America's wealthiest company, industry watchers said.
China Tells Trump That Ties With U.S. Are ‘Too Big to Fail’ [Bloomberg]
The party’s flagship newspaper said in an editorial Tuesday that the importance of China’s relationship with the U.S. was self-evident and any breakdown in ties could result in global “disaster.” The piece reiterated President Xi Jinping’s message in a post-election telephone call with Trump last week that cooperation was the only correct choice for managing ties.
And now for today's "Weird News" item...
Rick Perry under consideration for several cabinet positions [NYPost]
Donald Trump on Monday met with yet another former rival, ex-Texas Gov. Rick Perry, who is under consideration for several Cabinet posts, including defense, energy and agriculture.