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Monthly Archives: December 2012

World Markets Lift on Signs That a Fiscal Deal May Be Close

Stocks (MXWD) extended a three-month high and commodities gained on signs of progress in U.S. budget talks. The yen traded near a 20-month low.

The MSCI All-Country World Index added 0.2 percent as of 8:01 a.m. in London, headed for the highest close since Sept 14. Standard & Poor’s 500 Index futures advanced 0.3 percent. U.S. and Japanese government bonds fell. The S&P GSCI Index of raw materials gained 0.4 percent. The yen was at 83.95 per dollar after touching 84.48 yesterday, the weakest since April 2011.

President Barack Obama proposed a budget plan that would cut about $1.2 trillion in federal spending and raise a similar amount in taxes, according to a person familiar with the talks. European Central Bank President Mario Draghi said ECB policies and governance reforms in the euro area have revived confidence that will help foster a gradual economic recovery.

“Stocks are gathering momentum amid signs of progress on the U.S. fiscal cliff talks,” said Matthew Sherwood, head of markets research at Perpetual Investment, which manages about $25 billion in Sydney….”

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Today’s Movers

Here’s a look at the highest hybrid movers today via The PPT:

Need to watch that $ANGI heading into tomorrow.

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THE MOST INSANE ACCUSATION TO HAVE COME FROM THE NEWTOWN CT SHOOTING!!!!!

 

“In the wake of the mass murders that took place in Newtown, Connecticut on Dec. 14, information on the shooter, and his family, is slowly being discovered by law enforcement other sources. One interesting connection to the tragedy that took place at the Sandy Hook school is that the father of Adam Lanza has a connection to the theater shootings that took place in Aurora earlier this year by James Holmes.

Both fathers of the shooters were allegedly expected to testify in the Libor scandal that rocked the banking world in June.

The father of Newtown Connecticut school shooter Adam Lanza is Peter Lanza who is a VP and Tax Director at GE Financial. The father of Aurora Colorado movie theater shooter James Holmes is Robert Holmes, the lead scientist for the credit score company FICO. Both men were to testify before the US Sentate in the ongoing LIBOR scandal. The London Interbank Offered Rate, known as Libor, is the average interest rate at which banks can borrow from each other. 16 international banks have been implicated in this ongoing scandal, accused of rigging contracts worth trillions of dollars. HSBC has already been fined $1.9 billion and three of their low level traders arrested.

Ladies and gentlemen, we have a motive and a link. This coincidence is impossible to overlook. Two mass shootings connected to LIBOR. –Fabain4Liberty via Before it’s News “

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With Four Days Left on Earth, Bomb Proof Bunker Sales Rise

“Four days to go until the Mayan Doomsday – and there’s a rush on for bomb-proof survival bunkers (complete with leather sofas and plasma screen TVs)”

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[youtube://http://www.youtube.com/watch?v=AzqiPvGrkTo 450 300]

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2012 Marks a New Golden Age

 

“It may not feel like it, but 2012 has been the greatest year in the history of the world. That sounds like an extravagant claim, but it is borne out by evidence. Never has there been less hunger, less disease or more prosperity. The West remains in the economic doldrums, but most developing countries are charging ahead, and people are being lifted out of poverty at the fastest rate ever recorded. The death toll inflicted by war and natural disasters is also mercifully low. We are living in a golden age.

To listen to politicians is to be given the opposite impression — of a dangerous, cruel world where things are bad and getting worse. This, in a way, is the politicians’ job: to highlight problems and to try their best to offer solutions. But the great advances of mankind come about not from statesmen, but from ordinary people. Governments across the world appear stuck in what Michael Lind, on page 30,describes as an era of ‘turboparalysis’ — all motion, no progress. But outside government, progress has been nothing short of spectacular.

Take global poverty. In 1990, the UN announced Millennium Development Goals, the first of which was to halve the number of people in extreme poverty by 2015. Itemerged this year that the target was met in 2008. Yet the achievement did not merit an official announcement, presumably because it was not achieved by any government scheme but by the pace of global capitalism. Buying cheap plastic toys made in China really is helping to make poverty history. And global inequality? This, too, is lower now than any point in modern times. Globalisation means the world’s not just getting richer, but fairer too.

The doom-mongers will tell you that we cannot sustain worldwide economic growth without ruining our environment. But while the rich world’s economies grew by 6 per cent over the last seven years, fossil fuel consumption in those countries fell by 4 per cent. This remarkable (and, again, unreported) achievement has nothing to do with green taxes or wind farms. It is down to consumer demand for more efficient cars and factories.

And what about the concerns that the oil would run out? Ministers have spent years thinking of improbable new power sources. As it turns out, engineers in America have found new ways of mining fossil fuel. The amazing breakthroughs in ‘fracking’ technology mean that, in spite of the world’s escalating population — from one billion to seven billion over the last two centuries — we live in an age of energyabundance.

Advances in medicine and technology mean that people across the world are living longer. The average life expectancy in Africa reached 55 this year. Ten years ago, it was 50. The number of people dying from Aids has been in decline for the last eight years. Deaths from malaria have fallen by a fifth in half a decade….”

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Here Comes Santa Claus, Financials Lead the Bulls to Victory

A good risk on day where equities experienced wide breadth with treasury paper selling off.

Hopes for a fiscal cliff deal helped the bulls as Speaker Boehner met with the president this afternoon.

DOW UP 103

NASDAQ UP 39

S&P UP 17

Gold up $2

WTI up $0.69

[youtube://http://www.youtube.com/watch?v=OIF_rXj7mag 450 300]

 

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Fed’s Lacker: 6.5% Jobs Target Risky, Will Take Years to Hit

“The Federal Reserve has set a 6.5 percent unemployment-rate target for when it feels it can consider raising currently rock-bottom interest rates, although such a move is a rather risky one, according to one U.S. central banker.

A 6.5 percent unemployment rate won’t come for another three years, said Federal Reserve Bank of Richmond President Jeffrey Lacker, who added pegging a specific unemployment rate to when interest rates may tighten wasn’t his preferable course of action.

“I see unemployment coming down to the low 7 [percent range] sometime after next year, in 2014 or so,” Lacker told CNBC. “It could take a while to get back to 6.5 percent.”

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GE to Buy Avio for $4 Billion

 

General Electric Co. GE +0.67% is on the verge of agreeing to a deal to buy Italian aerospace group Avio SpA for as much as €3 billion ($4 billion), according to people familiar with the negotiations.

GE and European private-equity firm Cinven, which owns Avio, are aiming to announce a deal Thursday, the people said, though it still could be derailed at the last minute. The acquisition would be valued at between €2.5 billion and €3 billion, the people said.

The Italian company makes components for commercial and military jet engines as well as propulsion systems for satellite launch vehicles. One issue that still needs to be sorted out before a deal is signed involves Avio’s space business. According to a person familiar with the matter, GE isn’t interested in acquiring that operation as part of the deal, and the two sides are working to structure it accordingly.

Two-thirds of Avio’s aviation business is with GE, helping to explain why the U.S. industrial conglomerate is the front-runner to buy the company. Ahead of a big manufacturing ramp-up to meet record orders for new engines over the next five years, GE is seeking to strengthen its supply chain, in part by bringing the manufacturing of some parts in-house. Avio, which has worked with GE for decades, makes components for the U.S. company’s GE90 and GEnx engines, as well as for helicopters and other products….”

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SEC Backs J.P. Morgan’s Plans for Physical Copper ETF

“NEW YORK—The Securities and Exchange Commission approved the first physical copper-backed exchange-traded fund despite complaints from some U.S. manufacturers and merchants that such a fund would make the metal more scarce.

The approval was the final hurdle for J.P. Morgan Chase JPM +0.89% & Co. to list the JPM XF Physical Copper Trust on NYSE NYX +0.68% Arca, a division of NYSE Euronext. The investment bank first filed its request for the fund in October 2010.

The trust would trade like a stock, though its shares would represent ownership of the physical copper stored on investors’ behalf. J.P. Morgan wasn’t immediately available for comment.

Copper users had opposed plans for the ETF in several comment letters to the SEC, saying it would kneecap the industry by locking up too much copper in investors’ hands. The gold market has seen investors’ hoard record levels of the precious metal since gold-backed ETFs were started in 2006. This has made copper users apprehensive that a copper-linked product would disturb a delicately balanced market that has faced a production shortfall for three of the past four years…”

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