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Comments »Yearly Archives: 2013
EFSF Sells 8 Billion Euros of Bonds on Strong Demand in Asia
“The European Financial Stability Facility issued 8 billion euros ($10.5 billion) of bonds amid strong investor demand in Asia, helping boost the euro to its highest levels in more than three weeks.
The European rescue fund sold 0.875 percent, five-year securities yesterday, according to data compiled by Bloomberg. Investors in Asia made up 29 percent of the buyer base, up from 5 percent on EFSF’s 4 billion euros of March 2016 bonds issued in February, according to a person familiar with the transaction, who asked not to be identified citing lack of authorization to speak publicly….”
Comments »The EU Warns Spain and Slovenia to Reign in Risk to Prevent a Banking Crisis
“The European Commission warned of “excessive” risks to the economic health of Slovenia and Spain, calling on both governments to take urgent action to stem the spread of the euro crisis.
Slovenian banks are likely to need fresh capital injections as over-indebted corporate borrowers struggle to pay back loans amid a double-dip recession, the Brussels-based commission said. It said Spain is encumbered by public and private debt….”
Comments »Kuroda Says BoJ Has Made All the Monetary Easing Moves For Now
“Bank of Japan (8301) Governor Haruhiko Kuroda said that while policy makers will continually monitor whether additional stimulus is needed, steps taken last week are sufficient to achieve the bank’s 2 percent inflation goal.
The central bank has taken all “necessary” and “possible” steps, Kuroda told reporters in Tokyo today. While officials will change policy as needed, he doesn’t expect adjustments each month, he said. The BOJ chief reiterated his pledge to take all necessary steps to meet the target for consumer price gains in two years…”
Comments »Global Markets Trade Higher, U.S. Futures Gain Steam Into the Opening Bell
Yields for Italy, Spain, France, and Germany …
Comments »Chinese Burrito Data Helps U.S. Markets to Pop to All Time Highs
U.S. equities liked the fact that lower than expected inflation in China came in overnight. The expectations are that China has more room to ease and that sent commodities on a tear along with most sectors across the board.
The markets did pare half their gains by the closing bell.
DOW up 59
NASDAQ 15
S&P up 5.5
Gold up $12
WTI up $0.67
[youtube://http://www.youtube.com/watch?v=bS6B8zC2CNI 450 300] Comments »
Interesting: Dumb Ass in North Korea Cries Thermo Nuclear War and Gold is Up Modestly
“The boy who cried wolf is now openly screaming “thermonuclear war.” No, really. AFP reports that North Korea said Tuesday the Korean peninsula was headed for “thermo-nuclear” war and advised foreigners to consider leaving South Korea, as the UN chief warned of a potentially “uncontrollable” situation. “Tuesday’s advisory — greeted largely with indifference — followed a similar one last week to foreign embassies in Pyongyang, to consider evacuating by April 10 on the grounds war may break out. “The situation on the Korean Peninsula is inching close to a thermo-nuclear war,” the Asia-Pacific Peace Committee said in a statement carried by the North’s official Korean Central News Agency.” The result – a big yawn, which sadly for Kim Junior is the worst reaction. After all what is a dictator with an inferiority complex and a laughable military to do to get some respect around here and score some “nuisance value” cash from the superpowers (which has been his entire plan all along).
The problem is he has done all the possible jawboning he could, and the next option is i) to follow through on one or more of his endless and increasingly idiotic threats, or ii) step back from the “thermonuclear” brink and be on the lookout for a military coup as he has pushed so far he can’t possible retrace without losing all credibility, and fear a violent overthrow. Naturally, both options are hardly appetizing but the time to chose is rapidly approaching. And if he can’t make up his mind, the increasingly ample US military presence in the region will be happy to make it for him….”
Saying it did not want to see foreigners in South Korea “fall victim”, the statement requested all foreign institutions, enterprises and tourists “to take measures for shelter and evacuation”.
The committee blamed the heightened war risk on the “warmongering US” and its South Korean “puppets” who were intent on invasion.
The US dismissed the warning as “unhelpful” on Tuesday. White House spokesman Jay Carney criticised Pyongyang for more “unhelpful rhetoric that serves only to escalate tensions”.
The “thermo-nuclear war” threat has been wielded several times in recent months — most recently on March 7 — despite expert opinion that North Korea is nowhere near developing such an advanced nuclear device.
“It is our current assessment that there is no immediate risk to British nationals in South Korea,” a British embassy spokesman said, echoing similar statements from the US, French and other missions.
Last week’s warning to embassies in Pyongyang was also largely dismissed as empty rhetoric, with most governments making it clear they had no plans to withdraw personnel….”
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Leaders of Trading Exchanges Talk With Regulators Over Dark Pools
“The chief executives of the three largest stock exchanges are joining forces for the first time to push regulators to rein in the increasing amount of trading that is moving off public exchanges and onto platforms like so-called dark pools.
The leaders of the New York Stock Exchange, Nasdaq and BATS Global Markets, the third largest exchange operator, are planning to meet on Tuesday with officials of the Securities and Exchange Commission, according to people briefed on the meeting.
The officials will be pushing regulators to step up their oversight of private trading platforms such as dark pools, which are generally owned by banks and allow investors to trade out of the public eye, the people said. As the amount of trading taking place away from the public exchanges has grown rapidly, regulators have been examining whether dark pools create an uneven playing field for some investors.
The exchanges have been relatively restrained in publicly criticizing off-exchange trading because the banks that run the dark pools are also among the largest customers of the exchanges. Cooperation among the exchanges has also been difficult because of their fierce competition…”
Comments »US Wholesale Inventories Slide Most in 1.5 Years
“U.S. wholesale inventories recorded their biggest decline in nearly 1-1/2 years in February as petroleum stocks tumbled and overall sales rose solidly, which could see first-quarter growth estimates shaved.
The Commerce Department said on Tuesday wholesale inventories fell 0.3 percent, the largest drop since September 2011, after a revised 0.8 percent rise in January.
Economists polled by Reuters had expected stocks of unsold goods at U.S. wholesalers to rise 0.5 percent after a previously reported 1.2 percent increase in January….”
Comments »Fed’s Bullard: I’m willing to Scale Back on QE (Video)
Capital Economics: U.S. is Not Broke and the Dollar Will Not Fail
“The U.S. isn’t broke, and the dollar isn’t in danger of collapse even after unprecedented stimulus measures enacted following the worst financial crisis since the Great Depression, according toCapital Economics Ltd.
Taking into account total domestic assets and liabilities, the U.S. economy’s overall net worth is about 550 percent of gross domestic product in 2011, Paul Ashworth, the chief U.S. economist at Capital Economics, wrote in a research note. That compares with official figures showing U.S. GDP at close to $15 trillion, while national debt has ballooned to $16.8 trillion after nearly tripling since 2001…”
Comments »$JPM Sharpens the Pink Slip Ax to Bolster Profits
“Rising stock prices, rebounding profits, restored dividends and a growing economy are signaling to U.S. banks it’s time for more job cuts.
Even after the industry posted its best results since 2006, the six largest U.S. banks announced plans in the first three months of this year to eliminate about 21,000 positions, or 1.8 percent of their combined workforce, according to data compiled by Bloomberg. That’s the most since 2011’s third quarter. JPMorgan Chase & Co. (JPM), whose 259,000 people produced three straight years of record profit, topped the list with 17,000 reductions scheduled by the end of 2014.
Banks are under pressure to keep profit climbing amid weak revenue growth, and employees are among the biggest expenses after interest costs. The most vulnerable people work in units where demand is waning such as mortgageforeclosures. Their departures would come on top of 320,000 jobs culled from U.S. financial companies in the past five years, the data show….”
Comments »KPMG Resigns for $HLF and $SKX After News Breaks on Insider Trading Leaks
“KPMG LLP resigned as the auditor for two companies and fired the partner overseeing its Los Angeles audit practice amid allegations the person leaked confidential client information to a third party who used it to make stock trades.
The partner was Scott London, who was the lead auditor for Skechers U.S.A. Inc. (SKX), according to David Weinberg, the shoemaker’s chief financial officer. Herbalife Ltd. (HLF) and Skechers said in statements that KPMG told them it’s withdrawing as their auditor. The Securities and Exchange Commission is investigating the partner’s actions, according to a person with direct knowledge of the situation….”
Comments »Liberals Get Duped by Real Change Politics
“Liberals descended on Pennsylvania Avenue Tuesday to protest President Barack Obama’s decision to include entitlement cuts in his upcoming budget, delivering 2 million petitions demanding the White House back off its support for the chained CPI.
As we reported this weekend, liberals have been seething over the inclusion of the chained CPI in Obama’s budget, which they see as a huge betrayal by the Democratic president.
This week, progressive groups, including MoveOn, the Progressive Change Campaign Committee, and Democracy for America, have mounted “emergency” online campaigns against the proposal, accusing Obama of turning on the very supporters who helped re-elect him to office….”
Comments »$FSLR Melts Up on Acquisition Announcement and Better Guidance
Usually the company doing the buying has a soft price, but $FSLR is vaulting higher on news they will buy a start up that saves nearly 21% compared to conventional production methods.
Upgrading guidance also played a hand in today’s massive move.
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Small Business’ Have No Plans to Hire
“In a shocking state of affairs, it would appear the stock market’s wealth effect is not rubbing off on the real economy. The National Federation of Independent Businesses (NFIB) shows 0% of their members planning to hire. One can only presume we need moar QE, moar deficits, and moar wealth effect.
Recovery? 0%!! …”
Comments »Gapping Up and Down This Morning
Upgrades and Downgrades This Morning
In Play and On the Wires
$BLK Advises The Fed to Ease Up on Bond Buying
“Switcheroo! One of the biggest money managers on Wall Street is changing its tune and now advising the Fed to rein in its bond-buying program, and do it now, saying the central bank is distorting markets and risks stoking inflation.
Comments »“Fed policy has had a distorting effect on capital allocation decisions of all kinds at virtually every level of the economy. It is a very large and dull hammer for markets,” Rick Reider, who oversees $763 billion in fixed income investments for BlackRock, told the Financial Times in an interview that published Tuesday….”
