Updated throughout the day
February 20, 2016 12:00 a.m. ET /February 20, 2016 1:00 p.m. HKT
As oil prices began to retreat on Friday nearly all major global stocks ended the day in the red but most still saw big gains for the week. Thanks to a record buildup in U.S. crude stockpiles, oil prices had managed to lose more ground despite getting a boost from oil producers like Saudi Arabia and Russia moving to put a cap on output earlier in the week. The black stuff ended the day below $30 a barrel.
In the U.S., the S&P 500 ended flat, but was still up 2.8% for the week, its best weekly gain so far this year. U.S. bond prices, meanwhile, rose after economic data raised prospects of another interest rate hike by the Federal Reserve. The pan-European FTSEurofirst 300 index lost 0.7% but was still up 4% for the week, while in Asia all the major indices also saw strong gains for the week despite ending the day in negative territory.
Here’s what else you need to know:
U.K. gets “special treatment” with E.U. deal. British Prime Minister David Cameron says a deal has been struck with E.U. leaders that give the U.K., among other things, a seven-year “emergency brake” on welfare payment. The deal is hoped to convince the U.K. to stay in Europe when it holds a referendum at the ned of 2017. BBC
Icahn may get junk status. Standard & Poor’s cautioned investors Friday, announcing that it may cut the credit rating of Carl Icahn’s Icahn Enterprises. The company has lost “at least $1.4 billion in value” since the end of September. The stock dropped 5.7% after the news. Reuters
Trump calls for Apple boycott. Pope Francis was given a reprieve when presidential candidate Donald Trump turned his attention to Apple’s refusal to unlock the iPhone of one of the San Bernardino shooters. “What I think you ought to do is boycott Apple until such time as they give that security number. How do you like that? I just thought of it. Boycott Apple!,” Trump told supporters in South Carolina. Business Insider
Died: Author Harper Lee. Lee’s debut novel, “To Kill a Mockingbird,” has been read in schools, performed in plays, and made into a movie since it was published in 1960. The story of justice and race in the South is an American classic. The 89-year-old Lee died in her sleep at home in Alabama. CNN
CPI in January ex-food and energy rose to highest level since 2011. The inflation measure gained 0.3% on the back of rent and health care costs increases. Inflation grew by 0.2% in December. The consecutive jumps could mean that another rate hike could still be on the table for the Federal Reserve this year. Reuters
Oil CEO cuts jobs, makes $18.3 million. Schlumberger CEO Paal Kibsgaard’s 2015 pay was just slightly lower than the $18.5 million he made in 2014. His hit was minor compared to the 25,000 employees, about 20% of the workforce, laid off in the last year. CNN
PBoC injects $1.5 billion into system after yuan interbank rates surge to 9.3%. That brings total issuance this week to about 150 billion yuan, or $23 billion. The 500 basis point spike could mean a) the PBoC is out hunting “hostile” short-sellers, or b) China’s financial system is about to collapse. Our bet is on the former, but either way, Zero Hedge says that this could very well crater U.S. markets this evening, noting that the last six times “Chinese banks have suffered liquidity constraints, U.S. equities have tumbled.” Futures in the U.S. don’t look overly concerned, pointing to a modest 0.25% drop at the open. MarketWatch/ Zero Hedge
Apple to invoke free speech in legal battle against FBI; wins extension. The iPhone maker now has until February 26 rather than Tuesday to file a defense in court. As part of their investigation, the feds want Apple to create a backdoor route to the cell phone owned by one of the San Bernardino killers. Reuters/Bloomberg
Foreign trading hits record high in Tokyo as investors sell Japanese shares. Foreign investors accounted for a record 75.3% of equities trading last week as they sold roughly $5.04 billion in stock. Since the start of the year, foreign players have sold 2 trillion yen ($17.7 billion) in Japanese shares. Nikkei
China aims to ban foreign media from publishing online. China’s Ministry of Industry and Information Technology has issued a new rule banning foreign-backed media from publishing anything online in the country. The rule — which seems to have slammed China’s opening up into reverse — will come into effect next month. It’s not clear whether the MIIT has jurisdiction to enforce the rule, which could in theory affect news publishers as well as online publishers like NetFlix and Sony. Quartz
India firm launches world’s cheapest smartphone. The Freedom 251 phone produced by Ringing Bells will sell for just 251 rupees ($3.67). The phone has 8GB storage and has cameras front and back. BBC
ICYMI
Hong Kong real estate developers “under immense pressure” to cut prices. With analysts predicting an up to 25% drop in property prices this year, homebuyers in Hong Kong are taking their time, knowing full well that real estate developers are now running out of gimmicks to entice customers. Bloomberg
Malaysia central bank chief steps down as 1MDB charges filed. Zeti Akhtar Aziz, who has led Bank Negara Malaysia since 2000, says she will leave in April. It’s poor timing for Bank Negara which has just recommended the country’s attorney general file criminal charges against state investment fund 1MDB. The Wall Street Journal
Senate intelligence committee going after Apple. Chairman Richard Burr of North Carolina is reportedly working on a bill that would create criminal penalties for companies that won’t help federal agencies decipher encrypted communications. Apple has said that it won’t help the FBI hack a phone belonging to one of the San Bernardino attackers. Wall Street Journal (paywall)
You won’t believe this:
Steve Martin back on stage after 35 years. The comedian performed a stand-up routine in New York Thursday night as a special guest of Jerry Seinfeld. Martin’s career began in stand-up, but he hasn’t performed or even publicly spoken about his routine in decades. Vulture
Canadian otter killed by the wrong trousers. Two Calgary zoo keepers are being disciplined this week after they gave an “unauthorized” pair of perilous pantaloons to a river otter called Logan. Logan drowned as a result. The Independent
China rolls out potty blacklist for toilet offenders. Fed up with people making a mess in public restrooms, tourism authorities are looking to flush out repeat offenders by taking names and handing out punishments. The plan is part of a “toilet revolution” to clean up the country’s facilities. Washington Post
Photo: MPD01605