Yields for Italy, Spain, France, and Germany …
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Monthly Archives: September 2012
Asian Markets Open Higher Ahead of the German Court Ruling
“Asian stocks edged higher in early trade on Wednesday ahead of a ruling from Germany’s highest court on whether the euro zone’s bailout fund can legally go ahead, and before a policy review by the U.S. Federal Reserve ending on Thursday.
The FTSE CNBC Asia 100 Index [.FTFCNBCA 6175.65 
28.06 (+0.46%)], which measures markets across Asia, added 0.4 percent.
Japan’s Nikkei share average inched up in early trade, boosted by hopes for further stimulus from the U.S. Federal Reserve and on expectations that Germany’s highest court will give the green light for the euro zone’s bailout fund.
The Nikkei [.N225 8837.27 29.89 (+0.34%) 
] edged up 0.2 percent to 8,822.67, while the broader Topix also rose 0.2 percent to 733.45.”
Moody’s Threatens U.S. Downgrade Again
Jeff Gundlach Has a New Presentation on the U.S. Economy and More
$FB Plans on Starting Their Own Search Engine
” Zuckerberg said that Facebook has one billion queries on a daily basis and it’s basically doing that without trying.”
Comments »It’s a Miracle! $TXN Raises Estimates
Texas Instruments narrows revs outlook in-line with consensus, raises bottom end of EPS guidance (28.58 -0.09)
Texas Instruments narrows revs outlook to $3.27-3.41 bln vs $3.3 bln consensus, raises bottom end of EPS guidance to $0.45-0.49, exzcluding $0.07 in charges (noted in the co’s most recent earnings release) vs $0.45 consensus, up from $0.41-0.49, ex $0.07 in charges.
“We Must Not Confuse Dissent With Disloyalty” Edward R. Murrow
[youtube://http://www.youtube.com/watch?v=ZfSjME2R5vg 450 300] Comments »
Upgrades and Downgrades This Morning
AU, AAPL, AN, BNS, BMY, CI, CLNE, CMCSA, OFC, DNKN, GFI, HMY, ICE, JCI, JNJ, SQM, FINL, WPI, YELP,
Comments »In Play and On the Wires
The Repricing of Oil
“Now that oil’s price revolution – a process that took ten years to complete – is self-evident, it is possible once again to start anew and ask: When will the next re-pricing phase begin?”
Comments »$MCD Posts Less Than Expected Same Store Sales
“(Reuters) – McDonald’s Corp reported a weaker-than-expected 3.7 percent rise in August sales at established restaurants around the world on Tuesday, as austerity measures in Europe and global economic volatility weighed on results.
Analysts polled by Consensus Metrix were expecting a gain of 3.9 percent at restaurants open at least 13 months for the world’s largest hamburger chain.
The results show a rebound from July, when McDonald’s had flat same-restaurant sales around the world on slight declines in all three of its major regions. That was its worst performance in more than nine years.”
Comments »Trade Deficit: Prior -$42.9 Billion, Market Expects -$44 bn, Actual -$42 bn
June revised to -$41.9bn
Comments »Burberry Sends Shock Waves Out as They Warn on Future Profits
“LONDON (Reuters) – British fashion brand Burberry issued a profit warning on Tuesday, the clearest sign yet that slowing economic growth in China and Europe’s debt crisis are bringing a boom in demand for luxury clothes and accessories to a halt.
The company, famous for its raincoats lined with a distinctive camel, red and black check pattern, said it expected underlying full-year profit to be around the lower end of market forecasts.
That sent its shares down 19 percent and dragged down rivals including LVMH, the world’s largest luxury goods group.”
Comments »The Euro Ticks Higher as the German Court Says They Will Not Postpone Ruling
“The euro rose to the highest in almost four months versus the dollar after Germany’s top constitutional court said it will proceed with a ruling on the country’s role in the European permanent bailout fund.
The dollar fell to the lowest in almost six weeks against the yen before the Federal Reservestarts a two-day meeting tomorrow amid speculation it will buy bonds to boost the economy in a third round of so-called quantitative easing. New Zealand’s dollar strengthened against all of its 16 major peers as Fitch Ratings affirmed the nation’s AA rating. The zloty led gains among emerging-market currencies versus the dollar after JPMorgan Chase & Co. raised its view on the Polish currency.”
Comments »Big Banks Hide Risk Transforming Collateral for Traders
“JPMorgan Chase & Co. (JPM) and Bank of America Corp. are helping clients find an extra $2.6 trillion to back derivatives trades amid signs that a shortage of quality collateral will erode efforts to safeguard the financial system.
Starting next year, new rules designed to prevent another meltdown will force traders to post U.S. Treasury bonds or other top-rated holdings to guarantee more of their bets. The change takes effect as the $10.8 trillion market for Treasuries is already stretched thin by banks rebuilding balance sheets and investors seeking safety, leaving fewer bonds available to backstop the $648 trillion derivatives market.
The solution: At least seven banks plan to let customers swap lower-rated securities that don’t meet standards in return for a loan of Treasuries or similar holdings that do qualify, a process dubbed “collateral transformation.” That’s raising concerns among investors, bank executives and academics that measures intended to avert risk are hiding it instead.”
Comments »China’s Wen States There is Confidence The Country Will Reach its Growth Goals
“Chinese Premier Wen Jiabao said the nation has full confidence it will meet its economic goals for the year and signaled there’s more room for fiscal and monetary policy to support growth.
The country will continue to place more emphasis on ensuring stable growth, Wen said today at the World Economic Forum in the Chinese city of Tianjin. China will maintain a proactive fiscal policy and prudent monetary policy and has implemented a series of steps to promote domestic demand, Wen said.
The comments signal the government is prepared to take further steps to achieve the target of 7.5 percent growth for the year set in March. Wen is grappling with slowing industrial output expansion and a slide in export gains, increasing pressure to ease policy as China tries to ensure a smooth transition of power to a new generation of leaders.”
Comments »The Aussie and Kiwi Dollars Remain Under Pressure From Global Growth Concerns
“The Australian and New Zealand dollars remained lower as demand weakened for commodity-related currencies on deepening concern that China’s growth is slowing.
The so-called Aussie held its biggest slide in a week after a private report showed business confidence declined in August, fanning speculation the Reserve Bank of Australia will resume interest-rate cuts to counter the impact of a global slowdown. Demand for the South Pacific nations’ currencies was supported by bets the Federal Reserve will announce a new round of asset purchases known as quantitative easing this week.
“The Aussie has been underperforming, which probably comes down to indications of softening around the edges of the Australian economy, as well as concern that the regional economy, notably China, is going to slow down,” said Todd Elmer, a currency strategist at Citigroup Inc. in Singapore. “The market has priced in a persistent risk of rate cuts” by the RBA.”
Comments »Black Gold Finds Speculators Betting on Further Stimulus
“Oil traded near the highest close in almost three weeks in New York amid speculation the U.S. will add to measures to revive its economy, countering concern that Europe’s bailout plan will falter.
Futures were little changed, paring an earlier decline. U.S. crude inventories probably dropped to the lowest level since March as more than a third of Gulf of Mexico output remained shut 10 days because of Hurricane Isaac, a Bloomberg survey showed. The Federal Reserve starts a two-day meeting tomorrow where it may announce stimulus measures. Goldman Sachs Group Inc. said West Texas Intermediate oil may rise to narrow the gap between the benchmark grade and other regional crudes.
“Prices are likely to break to the upside,” said Michael Poulsen, an analyst at Global Risk Management in Middelfart, Denmark, who predicts Brent crude will surpass $116 a barrel in the next week. “Oil fundamentals are balanced. A rise in prices would mostly be fueled by more money flooding in from the Fed.”
Comments »World Markets Fall Slightly Waiting on the Fed and the German Court Decisions
“Most Asian stocks fell, with the regional benchmark index poised for the first drop in four days, ahead of a court decision on Germany’s participation in Europe’s rescue fund and as investors wait to see if the Federal Reserve will boost economic stimulus.”
“European stocks fell for a second day, led by luxury goods companies as Burberry Group Plc (BRBY) said profit will be at the lower end of estimates. The euro gained after a German court said it won’t delay a decision tomorrow on the country’s role in a bailout fund.”
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