“For a second there we almost got the impression Bob Janjuah was getting a tad bullish, if even just in the short-term. This just released note removes any fears we may have had the frmr RBS strtgst, and current Nomura Fixed Income Contributing Strategist may have lost his touch.
Bob’s World: You have been warned!”
Comments »“In January 2008, then-FDIC Chairwoman Sheila Bair faced criticism for being too strict on financial regulation. By October, her critics complained that she hadn’t done enough to fix the financial crisis.
Such is the plight of financial regulators these days but Bair, who now chairs the Systemic Risk Council, a private sector group focused on monitoring and encouraging regulatory reform of the U.S. financial industry, says that is no reason for the “timidity” she sees in the regulatory response to the crisis.”
Comments »“WASHINGTON—Treasury Secretary Timothy Geithner will warn Congress Wednesday that the euro-zone debt crisis and the political divide over fiscal policy in Washington pose threats to the U.S. economic recovery, issuing a pointed warning of the twin risks he believes are holding back growth.
Mr. Geithner will warn the House Financial Services Committee, according to a draft of his testimony reviewed by The Wall Street Journal, that “a severe crisis in Europe would necessarily have very substantial, adverse effects on the United States.” He will say the continuing fight in Europe over how to deal with the region’s debt problems is hurting global growth and exacerbating a slowdown.”
Full article
“Former Citigroup Chairman & CEO Sanford I. Weill, the man who invented the financial supermarket, called for the breakup of big banks in an interview on CNBC Wednesday.
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“What we should probably do is go and split up investment banking from banking, have banks be deposit takers, have banks make commercial loans and real estate loans, have banks do something that’s not going to risk the taxpayer dollars, that’s not too big to fail,” Weill told CNBC’s “Squawk Box.”
He added: “If they want to hedge what they’re doing with their investments, let them do it in a way that’s going to be market-to-market so they’re never going to be hit.”
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Gapping up
RVBD +23.7%, ACOM +15.7%, USNA +14.3%, VHC +10%, ALTR +9.6%,
TPX +8.1%, IRBT +7.7%, PNRA +6.4%, UIS +5.8%, ARMH +5.1%,
SDRL +5.1%, JNPR +3.3%, MT +3.2%, OEH +2.9%, NOK +2.3%, TEF +2.3%,
HBC +1.8%, BRCM +1.6%, CMG +52.3%, RF +1.5%, VHC +10%, SDRL +5.1%
Gapping down
NFLX -18.8%, TRIP -14.9%, BWLD -11.3%, RCKY -8.1%, RFMD -6.5%,
IGT -6.1%, CMLP -5.3%, AAPL -4.8%, QCOR -3.2%, EXPE -2.7%, DB -2.7%,
PCLN -2.3%, SWKS -2.1%, NUAN -2.1%, WFT -1.6%, UPS -0.6%, CMLP -5.3%,
NVAX -5.2%, GSK 1.2%, AZN -1.1%,
Comments »“A recent survey of 169 chief financial officers at publicly-traded companies in the U.S. reveals an interesting finding: 20 percent of the publicly-traded companies that are required by law to report earnings results on a quarterly basis are probably fudging the numbers, and almost every single one of the CFOs surveyed agrees this is the case.”
Comments »“PIMCO’s CEO Mohamed El-Erian is calling it the GGIRC: the great global interest rate convergence.
In a new piece for CNBC.com, El-Erian describes GGIRC as a world “whereby interest rates steadily converge to zero in many countries around the world.”
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The gloom rests upon ‘if’ the countries do not take a larger share of debt burden. In the end it is more than likely that this will happen.
Comments »“Caterpillar Inc. (CAT), the world’s largest maker of construction and mining equipment, posted second-quarter profit that beat analysts’ estimates and raised its full-year earnings forecast as demand increased from North American builders and overseas miners.
Net income rose to $1.7 billion, or $2.54 a share, from $1.02 billion, or $1.52, a year earlier, the Peoria, Illinois- based company said in a statement today. Profit was more than the $2.28 average of 20 estimates compiled by Bloomberg. The shares rose 4.4 percent to $85.01 at 7:42 a.m. before the start of regular trading in New York.”
Comments »“Boeing Co. (BA) boosted its full-year outlook for the second time this year after quarterly profit topped analysts’ estimates following 27 percent growth in commercial-jet deliveries and higher military-aircraft sales.
Net income rose to $967 million, or $1.27 a share, from $941 million, or $1.25, a year earlier, Boeing said today in a statement. The average of 24 analysts’ estimates compiled by Bloomberg was $1.13.”
Comments »“Eli Lilly & Co. (LLY) reported a second- quarter profit that fell less than analysts estimated as the company boosted sales of the antidepressant Cymbalta after its former top-selling drug Zyprexa lost patent protection.
Net income declined 23 percent to $924 million, or 83 cents a share, the Indianapolis-based company said today in a statement. Profit excluding one-time items beat by 6 cents the average of 15 analysts’ estimates compiled by Bloomberg. Revenue dropped 10 percent to $5.6 billion.”
Comments »“PepsiCo Inc. (PEP), the world’s largest snack-food maker, reported second-quarter profit that fell less than analysts’ estimated after raising prices.
Profit excluding some items was $1.12 a share, Purchase, New York-based PepsiCo said today in a statement. That exceeded the $1.09 average of 15 estimates compiled by Bloomberg. Net income in the quarter fell 21 percent to $1.49 billion, or 94 cents a share, from $1.89 billion, or $1.17, a year earlier.”
Comments »“Netflix Inc. (NFLX), the world’s largest video-subscription service, fell 20 percent in early trading after raising doubts about whether the company can meet its user-growth targets this year.”
Comments »“Ford Motor Co. (F), the second-largest U.S. automaker, lowered its outlook for full-year profit while reporting second-quarter net income fell 57 percent as losses in Europe ballooned and overshadowed earnings in North America.”
Comments »“Spanish and Italian bonds rose on speculation the European Central Bank will augment the firepower of the region’s bailout fund as policy makers step up efforts to contain contagion from the debt crisis.
The gain pushed Spain’s two-year note yield down from a euro-era record after ECB council member Ewald Nowotny said there are arguments in favor of giving the European Stability Mechanism a banking license. German bunds fell for a third day as the nation sold 2.32 billion euros ($2.81 billion) of 30-year debt at a record-low yield. Business confidence in Europe’s biggest economy slid to the lowest level in more than two years in July, according to a report.”
Comments »“Europe’s quest to sever the link between Spain’s fiscal fate and its failing banks hinges on an obstacle-strewn race to hand greater powers to the European Central Bank.
Until euro-area leaders overcome German doubts, ECB concerns, and turf battles everywhere, Spain will remain on the hook for a bailout of its banks of as much as 100 billion euros ($121 billion). Policy makers want to protect taxpayers from losses so potentially big they risk bankrupting governments, as happened in Ireland and Iceland.”
Comments »“Eastern European economies will expand at half last year’s pace in 2012 as fallout from the euro-area debt crisis spreads, the European Bank for Reconstruction and Development said.
The 29 east European and central Asian countries where the EBRD invests will grow 2.7 percent in 2012, down from 5 percent last year, the London-based bank forecast today in an e-mailed report, cutting a May projection for 3.2 percent growth. Egypt, Morocco, Jordan and Tunisia, where the bank is expanding, will grow 2.1 percent, 0.1 percentage point less than seen before.”
Comments »CPI data and speculation that Australia will cut interest rates helped the Aussie dollar to rally off of recent lows. The Kiwi fell in overnight trade as worries from Europe sent speculators to the bench.
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