Monthly Archives: November 2012
Public Pensions Lock Down a 4.67% Gain in Q3
“U.S. public pensions ended the third quarter with a median gain of 4.67 percent as bond managers beat their benchmarks by buying riskier debt and fixed-income securities with longer maturities, Wilshire Associates said.
The gains raised returns for state- and local-government pensions with assets of more than $1 billion to 8.2 percent for the 10-year period through Sept. 30, the first quarter since 2007 that funds of that size surpassed 8 percent over a decade.
“It gives that strong message to stay the course and look to the long term,” because the returns came near projected results, said Robert Waid, a managing director at Wilshire, a consultant to investors and pensions. “The 10-year numbers are pretty close to what the actuaries give for a 10-year target.”
Comments »Technical Analysis and Fibonacci Levels Spell Potential Trouble for the Euro
“The euro is likely to extend its 1.3 percent drop in the past three sessions against the U.S. dollarthis week, according to IG Markets Securities Ltd., which cited trading patterns.
The 17-nation currency has fallen below its 200-day moving average and continues to trade below it, according to Junichi Ishikawa, a Tokyo-based analyst at IG Markets. “The euro has broken the $1.28 level after falling below its 200-day moving average and technical indicators are suggesting further declines,” he said.
The $1.2755 level, which the euro failed to break below on Sept. 10 and Sept. 11, will act as an initial support, Ishikawa said. Should the euro fall below that level, it could test $1.2739, near the 38.2 percent retracement from its rise from the July 24 low of $1.2043 to the Sept. 17 high of $1.3172 on the Fibonacci chart, he said. The euro last touched $1.2739 on Sept. 7.”
Comments »U.K. Manufacturing Rises Less Than Expected
“U.K. manufacturing output gained less than economists forecast in September as machinery and chemical production declined, adding to evidence that the economy’s rebound is losing momentum.
Factory output rose 0.1 percent from August, the Office for National Statistics said today in London. The median forecast of 30 economists in a Bloomberg News survey was for an increase of 0.4 percent. Total industrial output plunged 1.7 percent as oil and gas output dropped by a record due to maintenance of sites.”
Comments »Australia Keeps Rates on Hold, Aussie Dollar Climbs
“Australia’s central bank kept its benchmark interest rate unchanged at a developed-world high as the global economy stabilizes and domestic inflation picks up, driving the local currency to a five-week high.
Governor Glenn Stevens and his board left the overnight cash-rate target at 3.25 percent, theReserve Bank of Australia said in a statement today in Sydney. The move surprised most economists, with 20 of 27 surveyed by Bloomberg News having predicted a cut to 3 percent. Traders were split 50-50 on whether Stevens would stand pat or cut.”
Comments »German Factory Orders Fall the Most in a Year
“German factory orders fell the most in a year in September as Europe’s sovereign debt crisis and slowing economic growth prompted companies to reduce investment.
Orders, adjusted for seasonal swings and inflation, slumped 3.3 percent from August, when they dropped a revised 0.8 percent, the Economy Ministry in Berlin said today. That’s the second straight drop and the biggest since September 2011. Economists forecast a 0.4 percent decline, according to the median of 40 estimates in a Bloomberg News survey. From a year earlier, orders sank 4.7 percent when adjusted for work days.”
Comments »Black Gold Gains on Consumption and Supply Constraints After Hurricane Sandy
“Crude rose for a second day in New York amid forecasts that U.S. gasoline supplies dropped after Hurricane Sandy forced the shutdown of East Coast refineries.
West Texas Intermediate crude advanced as much as 0.9 percent. Gasoline supplies fell 1.5 million barrels, or 0.8 percent, to 198 million in the seven days ended Nov. 2, according to the median of nine analyst estimates before an Energy Department report tomorrow. The fuel advanced as much as 1.2 percent to $2.6524 a gallon. U.S. voters decide today whether to return Barack Obama as president or elect his challenger Mitt Romney.
“The devastation and fuel shortages brought on by Hurricane Sandy are still being felt across the product complex in the U.S.,” said Andrey Kryuchenkov, a London-based analyst at VTB Capital who correctly predicted last month that Brent would slide.
WTI for December delivery climbed as much as 75 cents to $86.40 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $86.29 at 12:11 p.m. London time. The contract traded at $84.34 yesterday, the lowest intraday level since July 12. Prices have dropped 13 percent this year.
Brent for December settlement was 88 cents higher at $108.61 a barrel on the ICE Futures Europe exchange. The European benchmark crude was at a premium of $22.30 to New York-traded WTI.”
Comments »Asia Trades Mixed, Europe is Up, and U.S. Futures are Modestly Higher
Instagram Rolls Out Web Profiles
The most striking thing about the new web profiles, which are being gradually rolled out to users, is its resemblance to Facebook Timeline. An animated, rotating mosaic of Instagram photos occupies about the same amount of space as Facebook Timeline’s Cover photo; a small profile image, short bio and follower stats are situated just beneath. Photo thumbnails are organized in reverse-chronological order further down the page; click on one, and it’ll appear at full size alongside likes and comments.
For the first time, users can
like and leave comments on photos from the web, andfollow new users as well.
Richard Koo Spells Out the Prescription for the Road to Recovery
“Here’s the simplest break-down of our current economic plight that you’ll find around”
Comments »Jay-Z preforms in 0iho for 0bama
http://www.youtube.com/watch?feature=player_embedded&v=sv4pv6b7dIM#!
Ridiculous to see rappers going so hard for the president.
Comments »Environmentalists Blasted for ‘Underreporting’ Water Toxins Near Fracking Site
“Environmental officials in Pennsylvania have come under fire for their tests on drinking water from a well near a natural gas drilling site. The site’s owners have been taken to court for allegedly poisoning residents.
The documents were released this week, as part of a lawsuit that 7 plaintiffs who live near a hydraulic fracturing or fracking site, are serving on the gas industry.
The residents claim that waste water from a nearby site has contaminated their drinking water.
Toxicology tests on the seven claimants, who live within a mile of the drill and waste water site in Amwell Township, Pennsylvania, found toluene, benzene and arsenic in their bodies.”
Comments »Report: Asian Credit Boom Planting Seeds for Next Financial Crisis
“An explosion in credit is setting the stage for the next financial crisis in Asia, according to a new research report from Capital Economics, CNBC reports.
The current Asian credit boom is much like the credit explosion in Ireland and the Baltic countries in their run up before the 2008 financial crisis, the report warns. The situation is particularly dangerous in Hong Kong, Vietnam and China.
Hong Kong, where abundant credit has helped home prices boom, now seems disturbingly like Ireland just before the 2008 financial crisis, the research warns, according to CNBC. ”
Comments »$GS: Investor Taxes Will Rise No Matter Who Wins
No matter who wins Tuesday’s presidential elections, taxes will rise on investment income, Goldman Sachs equities analysts have concluded.
“At the end of this year, the Bush-era tax cuts and other tax breaks expire at the same time automatic cuts to government spending kick in, a combination known as a fiscal cliff that could send the country sliding back into recession next year if left unchecked by Congress.
Tax hikes include those applied to investment income.”
Comments »Dissecting the Chinese Credit Bubble
“Whereas it is relatively easy to track the progression of the “developed world” deep into the twilight rabbit zone hole (in bizarro metaphore-land speak) of no total debt/GDP return as defined by Reinhart and Rogoff (where anything above 80% sovereign leverage is more or less the game over line for one country, let along the entire Western world) courtesy of day to day updates of total debt in the US (103% debt/GDP) and its comparably indebted peers, when it comes to world’s growth dynamo – China – it is next to impossible to get a sense of just how big the debt hole is for a country whose economic data has been and continues to be one massive goalseeked, G.I.G.O. blackbox.”
Comments »Nate Silver Puts Obama’s Odds at 91%
Polls suggest a 2-3% lead as of right now and Nate Silver upped Obama’s chances of winning to 91% from 85%…
Can Romney get the electoral vote ?
Comments »PricewaterhouseCoopers Gets Named as a Defendant to MF Global Customers
“NEW YORK (Reuters) – Former customers of MF Global Holdings Ltd’s broker-dealer have added accounting firm PricewaterhouseCoopers LLP as a defendant in a lawsuit stemming from the collapse of the brokerage.
In an amended complaint filed in U.S. District Court in Manhattan on Monday, the customers of MF Global Inc accused PwC of failing to adequately audit MF Global’s internal controls over customer funds.
The complaint also repeated prior accusations against former officials at MF Global, including former Chief Executive Jon Corzine, who is accused of violating the Commodity Exchange Act, which restricts the use of customer funds.”
Comments »DOUG KASS: ‘The Global Economic Cliff Is Disappearing’
“Over at The Street, Doug Kass writes that “meaningful market downside” risk has been removed and that the risk/reward profile has improved.
Kass sees the S&P 500 ending the year as high as 1450-1470.
He writes that “the global economic cliff is disappearing” in light of numerous indicators:
- An improving labor market: the economy added 171,000 jobs in October;
- PMIs for both manufacturing and service sectors are above 50 (considered average);
- Housing has bottomed;
- Inflation is under control;
- Interest rates low and expected to remain at low levels;
- Increased consumer confidence is spurring retail sales;
- Strength in the revitalized automobile market; and
- Hurricane Sandy, while tragic, will add to GDP in the first half of next year.
Kass believes we are on track to resolve three (economic, fiscal, and geopolitical) cliffs, while a fourth cliff (earnings) remains an impediment to market performance. Here’s how he sizes up the ‘cliffs’ facing investors:”
Comments »The Nikkei Gaps Down
Currently down 0.46%. The Shanghai Composite and the Hang Seng are getting hamhamahmahammered.
Comments »Small Bombs Under $10
Here’s a look at today’s SMALL BOMBS, courtesy of The Almighty PPT.
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