Getting Ready For Friday Morning -- August 1, 2014

The Wall Street Journal

Wisconsin's highest court upheld a law ending most collective-bargaining rights for government employees, a blow for public-sector unions. Easy come, easy go.

Dow's 317-point tumble erases year's gain. Easy come, easy go.

Israel, Hamas agree to 3-day cease-fire. If it holds, Hamas blinked.

US wages and benefits rose in the second quarter at the fastest rate in nearly six years, a sign that a tightening labor market may be raising pressure on companies to boost worker pay. Some readers have suggested to me that's why Obama has declared an OPEN BORDER policy, to attract more, younger workers. Their words, not mine.

Unionized coal miners, electrical workers, others protesting Obama's proposed rule to curb carbon emissions from the nation's power plants. In an earlier story, regulators -- yes, US government regulators -- said the proposed rule would put the grid at risk.

Atlanta, Georgia: popular BeltLine Trail is only 7 miles completed; running into snags amid funding and legal woes. Oh, well.

Trainwreck: California says health-law premiums will rise over 4%. Oh, well.

And, yes, those upset about federal subsidies for ObamaCare move to have the US Supreme Court take the case. Everyone agrees the law says federal subsidies unlawful; ObamaCare supports say that it's simply a technicality; Congress "meant" to include federal subsidies in the law, and thought the wording was adequate. But everyone agrees that "federal website/federal healthcare exchange" wording appears nowhere in the law. Of course, no one knew that until it was passed -- and then it was read, as predicted by Nancy "we have to pass it, to read it" Pelosi. I can't make this stuff up.

Hope and change. I can't make this up: "US officials say they hope Egypt, Israel, Iraq, and Saudi Arabia find common ground in a fight against extremist groups." Last I heard, Israel was pretty much on its own against Hamas (yes, I know Egypt is helping destroy tunnels). US officials worry that the Islamist (note "Islamist" without the qualifying adjective) surge threatens Mideast powers.

Venezuela's Argentina's Cristina Kirchner told Wall Street hedge funds to "shove it." Perhaps not in those exact words. However it was said, Cristina pushed her country into its second default in 13 years. Oh, well. [My bad: I said "Venezuela." A reader caught the mistake. A big thank you to the reader for catching that.]

Wow, this is rich: "The US energy boom is producing a little-noticed side effect: American oil and gas companies are paying less in federal income taxes, thanks to investment incentives."

America's business puzzle: record debt and record cash. US companies have never had so much debt and so much cash. But there is a reason for that: low interest rates and US tax policy.

Oh, oh. Kellogg's profit falls 16% as cereal sales drop. I guess cereal companies can only raise prices so much before folks say "no, no." Of all the things I buy at the local grocery store, I find cereal a) the most expensive per ounce; and, b) the yearly increase most remarkable. $4.00 for a box of Wheaties? Really? UC Irvine? Really?

Oh, oh. Tesla loss widens. The company said its second-quarter loss doubled -- repeat, doubled -- to $62 million on high spending for overhead and R&D. That pesky battery problem. Oh, oh.

Exxon profit jumps 28%.

MasterCard profits jump almost 10%.  I assume more and more folks are falling behind on M/C debt due to the price of Exxon gasoline at the pump. And some in Congress want to raise the federal tax on gasoline. Okay.

The Los Angeles Times

California bullet train project wins major court victory -- but an appeals court warns that "substantial legal questions loom."  

Wisconsin's highest court upholds Wisconsin labor an voter ID laws.

Eric Cantor says he will resign from Congress in August. He was the US House majority leader. A lesson learned.

 LA Times calls the projected ObamaCare rise in premiums of more than 4%: "modest." Their word, not mine.