Another top China exec goes missing; Fed hikes U.S. rates; Tesla stock is up 75%

Profitable Moment   The rate hike that doesn't matter - for now The Federal Reserve raised the fed funds target rate for the second time this year (the fourth rate hike since this tightening cycle began in December 2015). The target rate is now 1-1.25%, the first time the rate has been over 1% since 2008. The fed funds rate only controls the very shortest interest rates – overnight borrowing between banks. At the moment, longer rates such as the 10-year bond are on a frolic of their own. The 10-year yield has FALLEN to its lowest level this year because of concerns over the health and strength of the U.S. economy. Hang on: Long rates going down; short rates going up – how can this be? It's simple: The Fed's mission in raising rates is part of a much bigger, grander project than what is happening today or tomorrow in the bond market. They are embarked on a normalization of monetary policy. That means bringing interest rates up from the extraordinarily low levels where they have languished since the financial crisis, to something more suited for normal times. So long as inflation remains around 2%, and unemployment remains low, they will continue to raise rates. Expect another rate hike this year. -Richard.Quest@cnn.com  What's new... what's next   By Matt Egan, Julia Horowitz and Paul R. La Monica of CNNMoney 1. China's habit of making top execs disappear It's becoming eerily-common for leading execs in China to vanish. The latest is Wu Xiaohui, the chairman of Anbang Insurance, a powerful firm that owns New York's Waldorf Astoria. The company simply said Wu "cannot perform his duties due to personal reasons." Dozens of senior execs in China disappeared in 2015, with some returning and others not. The catalyst seems to be President Xi Jinping's corruption crackdown and probes into the 2015 market crash.  2. Trump scores more Chinese trademarks President Trump is adding more Chinese trademarks to his business portfolio. His company has been granted preliminary approval for eight trademarks in the past week, according to a CNNMoney review. It's quite a list. Two, approved Tuesday, are for religious garments and accessories. The others span construction, advertising, weather forecasting and dietary consulting. 3. Silicon Maple Leaf? Canada is a new tech hub U.S. tech companies face the possibility of tougher immigration rules and fewer visas for skilled workers under Trump. But Canada hopes to take advantage of this. America's neighbor to the north is speeding up the process for work permits and temporary resident visas. The Canadian province of Ontario is also offering tax credits and reducing "regulatory burdens." Ontario is even planning to launch an ad campaign targeting Silicon Valley workers later this year. 4. Tesla's stock is electric. But is it overvalued? We wrote Tuesday about how Tesla's Model X got a five-star safety rating from U.S. regulators. Wall Street is giving Tesla a rave review too. Shares are up nearly 80% this year. The company is worth more than auto giants GM, Ford, Honda and BMW. One fund manager thinks Tesla, currently trading around $380, could hit $1,000 by 2020. But Tesla is expected to lose money this year and in 2018. That's why some short sellers are predicting a big drop soon. 5. Quick Takes: Russia has been accused of exploiting workers at 2018 World Cup venues They're doing it: Nike is the next U.S. company in Europe's crosshairs Almost 200 Democrats are suing President Trump over foreign money The U.S. oil boom will pile the pain on OPEC well into next year Watch your step? There are 146,000 cameras monitoring Moscow's streets 6. What's next: Bank of England in the spotlight: The U.K. is in political turmoil after last week's general election resulted in a deadlocked Parliament. Against that backdrop, the BoE is set to announce its interest rate decision at 7 a.m. ET on Thursday. Few expect the central bank to adjust rates, but it could be forced to acknowledge the political uncertainty and question marks about Brexit. Make this newsletter better. Please send us your feedback to CNNMoneyfeedback@turner.com Share Tweet Forward Sign up for CNN Money's morning markets newsletter: Before the Bell Sign up for CNN Money's closing markets newsletter: Markets Now Copyright © 2017 Cable News Network, LP, LLLP. A Time Warner Company. All Rights Reserved., All rights reserved. You're receiving this newsletter because you opted in at cnn.com or cnnmoney.com. Our mailing address is: Cable News Network, LP, LLLP. A Time Warner Company. All Rights Reserved. One CNN Center Atlanta, GA 30303 Add us to your address book unsubscribe from this list    update subscription preferences