” The buzz all weekend was the Der Spiegel report about the ECB planning to implement a scheme whereby peripheral borrowing costs would be capped in some manner.
The report suggested that such a scheme could be unveiled at the ECB’s September 6 meeting.
But…”
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“(Reuters) – Lowe’s Cos Inc (LOW) reported weaker-than-expected quarterly results and cut its profit outlook for the fiscal year as the world’s second-largest home improvement chain lost market share to larger rival Home Depot Inc (HD).
Lowe’s shares fell more than 8 percent in premarket trading.
The lackluster results came just days after Home Depot beat Wall Street’s quarterly profit estimates with the help of cost controls and market share gains, and raised its earnings outlook for the year.”
Comments »“Aetna Inc. (AET), the third-biggest U.S. health plan, agreed to buy Coventry Health Care Inc. (CVH) for about $5.6 billion to increase its share of government business following PresidentBarack Obama’s health-care overhaul.
Aetna will pay $42.08 a share for Bethesda, Maryland-based Coventry, including $27.30 in cash and 0.3885 Aetna share, the companies said today in a joint statement. That represents a 20 percent premium over Coventry’s closing price of $34.94 on Aug. 17, which gave the company a market value of $4.68 billion. Including debt, the deal is valued at $7.3 billion.”
Comments »“CME Group Inc. (CME), owner of the world’s biggest futures exchange, plans a derivatives market in London by the middle of 2013, setting up in competition with Eurex and Liffe, the largest venues.
The exchange will start with currency futures, CME said in a statement today. CME’s European exchange will be led by Robert Ray as chief executive officer. CME Globex will be the electronic trading system for the new London exchange and CME Clearing Europe will process the transactions. Chicago-based CME plans to file with the U.K. securities regulator in the coming weeks as the first step in the process.”
Comments »“Europe’s leaders plan a week of intensive shuttle diplomacy to help defuse the continent’s debt crisis, as Der Spiegel magazine reported that the European Central Bank is considering a plan to put a cap on bond yields.
As the debt crisis continues to threaten the global economy, French President Francois Hollande and German Chancellor Angela Merkel will meet in Berlin on Aug. 23. Greek Prime Minister Antonis Samaras travels to the German capital the next day before going on to Paris on Aug. 25.”
Comments »“Oil climbed for a fifth day in New York, the longest streak of gains in a month, on signs of a strengthening U.S. economy and speculation that higher Saudi Arabian crude output indicates increasing demand for fuel.
Futures gained as much as 0.5 percent after closing at a three-month high on Aug. 17 as a report showed U.S. consumer confidence unexpectedly improved. Home sales and orders for durable goods probably climbed in July, economists said before figures this week. Saudi Arabiapumped crude at the highest level in more than three decades in June and monthly exports were the most since November 2005, according to the Joint Organization Data Initiative.”
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“Speculators held wagers on rising commodities near the highest in 11 months as speculation that China will act to bolster its economy and signs of improving U.S. growth boosted prices for a third consecutive week.
Money managers’ net-long position across 18 U.S. raw materials was little changed at 1.2 million futures and options in the week ended Aug. 14, U.S. Commodity Futures Trading Commission data show. Investors increased bets on costlier corn, soybeans and cattle amid the worst U.S. drought in 56 years, reduced wagers on a rally in crude oil and became more bearish on the outlook for copper.”
Comments »“Most Asian stocks fell as concern that China won’t ease monetary policy even amid slowing economic growth and lower earnings offset optimism for the global outlook after U.S. consumer confidence improved.”
Comments »“Yields on Spanish bonds dropped to a six-week low on speculation leaders will agree on a plan to contain the debt crisis. European stocks erased gains and the euro retreated after Germany’s Bundesbank stepped up its criticism of the European Central Bank’s bond-buying program.
Spain’s 10-year yield declined 23 basis points to 6.22 percent at 7:28 a.m. in New York, the least since July 4, while similar-maturity Italian yields slid three basis points to 5.76 percent. The euro slipped 0.2 percent to $1.2305, after appreciating 0.2 percent. Ten-year Treasuries fell, extending a four-week decline. The Stoxx Europe 600 Index lost 0.1 percent after gaining as much as 0.3 percent. Standard & Poor’s 500 Index futures were little changed. Copper sank 1 percent and nickel slipped 1.3 percent.”
Comments »“The euro fell for a second day versus the dollar after Germany’s Bundesbank stepped up criticism of proposals that the European Central Bank buy government bonds to quell the region’s debt crisis.
Europe’s shared currency slid from withing 0.6 percent of a six-week high versus the yen and declined against most of its major peers as comments from the German central bank highlighted divisions over how to end the turmoil. The euro rose earlier after Spiegel magazine reported the ECB’s governing council is considering setting yield limits on euro-region bonds. The Australian dollar climbed as stock gains boosted demand for higher-yielding assets.”
Comments »“The Bundesbank holds to the opinion that government bond purchases by the Eurosystem are to be seen critically and entail significant stability risks,” the Frankfurt-based central bank said in its monthly report today. The new program “could be unlimited” and decisions about potentially far greater sharing of solvency risks should be taken by governments or parliaments, not by central banks, it said.”
Comments »Here we go again…
Comments »The euro rose against the dollar, extending a gain from last week, amid optimism Europe’s leaders meeting this week will signal support for Greece and outline fresh measures to combat the region’s debt crisis.
Europe’s shared currency rose toward a six-week high against the yen after Germany’s Spiegel magazine reported the European Central Bank’s governing council may decide at its next gathering to set yield limits on each country’s debt. The dollar fell from the most in more than a month against Japan’s currency and the Australian dollar climbed against all of its major counterparts tracked by Bloomberg amid stronger demand for higher-yielding assets.
“The market is concentrating on political news,” said Ulrich Leuchtmann, head of currency strategy at Commerzbank AG inFrankfurt. “There’s a lot of negative news priced in about Greece and if the politicians sound constructive on that it may support the euro. There are also a lot of rumors about what the ECB might do.”
Europe’s shared currency advanced 0.1 percent to $1.2351 at 8:51 a.m. London time after climbing 0.4 percent last week. It added 0.1 percent to 98.19 yen after rising 2 percent in the five days ended Aug. 17. The dollar weakened 0.1 percent to 79.50 yen after earlier touching 79.66, the strongest since July 12. The Australian dollar rose 0.3 percent to $1.0455.
The world’s largest sovereign wealth fund is planning to take on more risk as it seeks to exploit its role as a strategic investor, in a move that could mark a new trend for conservative publicly-owned investment funds.
The Norwegian oil fund, which has more than $600 billion of assets under management, also believes it could be more opportunistic when markets dry up, as was the case during the financial crisis.
“The fund can exploit [its nature as a long-term investor] by being a provider of liquidity in periods when there is a lack of liquidity,” Pål Haugerud, head of asset management in Norway’s finance ministry, said in an interview.
The new approach will be closely watched outside Norway as the size of sovereign wealth funds in the Middle East and Asia, forcing managers to rethink their investments strategies.
Norway’s fund is a long distance bigger than its nearest rival, the Abu Dhabi Investment Authority, which has about $400 billion in assets, according to consultants Roubini Global Economics.
Comments »A salmonella outbreak blamed on cantaloupe grown in Indiana has killed two people in Kentucky and sickened some 150 people in the past month, health officials said on Friday, urging consumers to throw away melons bought recently from the region.
The outbreak traced to the cantaloupe began in early July and has struck consumers in Indiana, Kentucky and Minnesota. Indiana officials said there were about 150 cantaloupe-linked cases nationwide.
Comments »Wow. Don’t think I could have made this one up!
Obama camp – We are intentionally limiting crowd size at rallies
Comments »Fantastic piece…
President Obama was back in Iowa for several days this past week. He has winning memories there. But the fact that an incumbent president feels it necessary to invest three of only 79 precious remaining days there says how close the presidential race now is.
Obama’s experienced advance team had a bunch of flubs. That farm family with all the windmills that President Quixote loves to laud turns out to be Republicans and informed reporters after Obama’s visit that he sure wasn’t getting their votes this time.
There was the state fair beer tent where Obama bought a round of Bud Lights for everyone, except the guy with the Mitt Romney sign. Great summertime photo op. Except it turns out the Secret Service closed down the guy’s tent long before Obama’s arrival and the small business owner lost thousands in sales.
Then there was the caterer who wore a “Government Didn’t Build My Business” T-shirt to work the president’s event. Our friend Tom Bevan at the must-read RealClearPolitics has all the details here.
But the moment that sticks out in our mind was something that didn’t happen during the president’s Iowa trip.
Read the rest here.
Comments »Perhaps the best band name of all time! Who could one NOT forgive a Pussy Riot?
MOSCOW (AP) — Russia’s top Orthodox clerics on Saturday asked for mercy for the punk band Pussy Riot for its anti-government protest in a Moscow cathedral, but the church’s forgiveness is unlikely to change the band’s punishment in a case that caused an international furor over political dissent.
Read the rest here.
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The indomitable Mark Steyn is out with another must-read: The Man with No Plan. In my opinion, there is no better writer right now than Steyn.
Comments »Get your tea party on…..
[youtube:http://www.youtube.com/watch?v=1mgMHB5UBeE 450 300] Comments »
