Comments »With Western pressure growing on Bashar Assad over the latest massacres of defenseless women and children in Syria, Iranian officials again are warning the world against any action against the Middle East dictator.
The pro-Assad “resistance” has its finger on the trigger and the aggressors will not survive the conflict, a senior commander of the Revolutionary Guards, Brig. Gen. Massoud Jazaeri, told Mashregh, a media outlet run by the Guards. Iranian officials often refer to Iran, Syria and Hezbollah in Lebanon as the resistance front.
Mashregh reported in March that Iran’s armed forces had formed a joint war room that included officers from Syria, Iran and Hezbollah for a coordinated military response to an attack on Syria.
Industry Movers (Weekly Change)
EU Leaders Working On New Eurobonds Plan
BERLIN (Reuters) – German news magazine Der Spiegel reported on Saturday that leaders of European institutions are working on a comprehensive plan to rescue the euro that would include the issuance of joint euro bonds – a move Germany has repeatedly rejected.
The news magazine said European Union Commission President Jose Manuel Barroso, European Council President Herman Van Rompuy, Euro group head Jean-Claude Juncker and European Central Bank President Mario Draghi are working on plans for a “genuine fiscal union” in which individual member states would no longer be able to independently take on new borrowing.
Governments would only be able to decide how to spend money that is covered through their revenues, Der Spiegel reported. Any country that needs more money than it takes in would have to report that need to the group of euro finance ministers.
The magazine quoted four high-ranking EU planners saying this group of finance ministers would then decide which financial desires at which levels were justified and would then issue joint euro bonds to finance these new borrowing needs.
“The exclusive group of ministers would be led by a full-time chair, who could ultimately rise to the position of European finance minister,” the magazine wrote.
The weekly added that this “powerful group of finance ministers” would be controlled by a new European body in which representatives of national parliaments would have seats.
Read more here:
Comments »Euro Breakup Precedent Seen When 15 State-Ruble Zone Fell Apart
I never thought of this but there are definite parallels.
Comments »It was a currency union of 15 states in 1992. Two years later, as budget deficits spiraled out of control, hyperinflation reigned and economies shriveled, just two members of the Soviet Union’s ruble zone were left.
As Greek politicians threaten to break terms of the country’s bailout with international lenders, Spain calls for financial help, and northern European nations balk at funding the south, historians are asking whether the euro region is about to face a similar Exodus. They take a longer view of the European Union’s crisis than economists, and it’s much bleaker.
The Soviet experience tells us “an exit like this is messy and leads to loss of income and inflation, and people are right to be scared of it,” said Harold James, a professor of history atPrinceton University whose books include “The End of Globalization: Lessons From the Great Depression.” “It isn’t an attractive analogy at all because the Soviet Union states all had serious troubles for the whole of the 1990s.”
While differences between the Soviet Union and the EU are greater than their similarities, there are parallels that may prove helpful in assessing the debt crisis, historians say. Both were postwar constructs set up in response to a collective trauma; in both cases, the founding generation was dying out as crisis hit and disintegration loomed.
Spain Seeks $125 Billion Bailout As Bank Crisis Worsens
Comments »Spain asked euro region governments for a bailout worth as much as 100 billion euros ($125 billion) to rescue its banking system as the country became the biggest euro economy so far to seek international aid.
“The Spanish government declares its intention of seeking European financing for the recapitalization of the Spanish banks that need it,” Spanish Economy Minister Luis de Guindos told reporters in Madrid today. A statement by euro region finance ministers said the loan amount will “cover estimated capital requirements with an additional safety margin.”
Industry Breadth
Wholesale Inventories / Trade: Prior 0.3%, Market Expects 0.5%, Actual 0.6%
US Banks Face $60bn Capital Shortfall
Ain’t Basel III a pain in the ass? Luckily, they have 7 years to raise it. Let’s hope we don’t have another few years of Armageddon.
Read the article here.
Comments »WATCH: Base Jumping World Record in the Himalayas
Russian BASE jumper Valery Rozov set a new world jump record with a leap from the top of Shiving, a 4-mile high mountain in the Indian part of the Himalayas
Comments »Introducing Copter Kitty
A Life Improving Video
A recent psychological study found that awe enhances well-being, expands perception of time and causes people to behave more altruistically and less materialistically.
So how can we stimulate awe? Lead author Melanie Rudd of Stanford told us their most effective method was exposing subjects to an awe-inspiring video:
The methods that were the most effective at stimulating awe were those that presented participants with a “new” awe experience (i.e., having participants watch the awe-eliciting commercial). Remembering a past awe-eliciting experience and reading about an imaginary awe-eliciting experience (i.e., the short story) also elicited awe, but relatively less compared to when participants experienced a “fresh” and “real” awe experience.
Here is my video choice of awe:
[youtube://http://www.youtube.com/watch?v=VRsUKEvscHI&feature=related 450 300] Comments »GREEK MADNESS ON TEE-VEE
Greek parliament candidates fighting on a Greek talk show, including the Fascist party candidate, a man, repeatedly punching the communist candidate, a woman, in the face. FACT: socialism has failed.
Comments »Today’s Hybrid Movers
Here are today’s hybrid movers courtesy of The PPT.
I’ve imported the tickers to finviz for your viewing pleasure, click here for charts.
Comments »No Mention Of QE – SURPRISE
Asian Stocks Gain As Policy Makers Signal More Stimulus
Comments »Asian stocks climbed, with the benchmark regional gauge heading for its biggest three-day gain this year, as global policy makers signaled they may take steps to stimulate economic growth.
BHP Billiton Ltd. (BHP), the world’s largest mining company, advanced 1.8 percent in Sydney as Australian employment unexpectedly rose in May, driven by hiring amid the nation’s minerals boom. Mitsubishi Corp. (8058), the No. 1 Japanese trading house, rose 1.4 percent and Komatsu Ltd., a mining-equipment maker, gained 1.9 percent in Tokyo as investors bought shares of companies with profits closely tied to economic growth.
Dollar Is Near Week-Low Before Bernanke Speaks On Economy
UNLEASH THE CLAM! WE GO HAM!
Comments »The dollar was within 0.2 percent of a one-week low against the euro on bets Federal Reserve Chairman Ben S. Bernanke today may signal more stimulus is needed to spur a recovery in the world’s largest economy.
The yen declined versus most of its 16 major counterparts as Asian stocks extended a global rally, damping demand for lower-yielding currencies. The euro remained higher after its biggest gain in three months against the yen yesterday amid speculation the European Central Bank will act to rein in the region’s debt crisis after leaving its benchmark interest rate at a record low. Australia’s dollar rose after data showed the nation’s employers unexpectedly added workers in May.
“The U.S. dollar is certainly susceptible to indications that the Fed is looking at QE3, considering that long positions have been built up to near-record levels,” Mike Jones, a Wellington-based currency strategist at Bank of New Zealand Ltd, said referring to a third round of debt purchases known as quantitative easing. “It’s the rhetoric that really matters for markets.”
The dollar traded at $1.2563 per euro as of 1:06 p.m. in Tokyo after sliding 1 percent to $1.2582 in New York yesterday, when it touched $1.2586, the weakest since May 28. The U.S. currency added 0.2 percent to 79.35 yen. The 17-nation euro was at 99.68 yen from 99.63 yesterday, when it advanced 1.6 percent, its biggest gain since Feb. 24. The Australian dollar strengthened 0.2 percent to 99.50 U.S. cents.
China’s Stocks Rise Most In Week On Bank Rules Delay, Policy Bet
STIMULUS BIATCH!
Comments »China’s stocks rose the most in a week after the government delayed tightening bank capital rules and investors speculated monetary policy will be eased to limit the effects of Europe’s debt crisis on the economy.
Industrial & Commercial Bank of China Ltd. and China Vanke Co. led gains for lenders and developers after regulators postponed stricter rules until the beginning of next year in a move that may bolster loan growth. China Cosco Holdings Co., the biggest shipping company, advanced as European Central Bank President Mario Draghi said officials stand ready to act as the euro region’s outlook worsens. The stock market’s gains were limited before Chinese data this weekend that may show a deepening slowdown in the world’s second’s biggest economy.
Asian Stocks Extend Rally On Stimulus Optimism; Oil Gains
Comments »Asian stocks advanced the most in more than two months as oil and copper climbed on speculation policy makers around the world will take steps to revive the slowing economy. The Australian dollar rose to a three-week high after employers unexpectedly added jobs in May.
The MSCI Asia Pacific Index increased 1.5 percent by 1:06 p.m. in Tokyo, rising for a third day and heading for its biggest gain since March 27. The Nikkei 225 Stock Average added 1 percent, while Standard & Poor’s 500 Index futures rose 0.3 percent. Oil gained 0.6 percent in New York and copper rallied 0.6 percent. The Aussie strengthened 0.2 percent against the U.S. currency, while the cost of insuring Australian corporate bonds from default declined the most since Feb. 1.
European Central Bank President Mario Draghi said officials stand ready to act as the euro region’s growth outlook worsens. Federal Reserve Vice Chairman Janet Yellen said the U.S. economy “remains vulnerable to setbacks” and may warrant additional monetary stimulus. Indian Prime Minister Manmohan Singh pledged to revive growth in Asia’s third-largest economy through infrastructure spending. The number of people employed in Australia rose by 38,900 last month, the statistics bureau said.
Obama Re-Election Map Shaken After Walker’s Wisconsin Win
Comments »Wisconsin Governor Scott Walker said today his victory in yesterday’s recall election sets the stage for Mitt Romney to be competitive in his state in November’s election, while the presumptive Republican presidential nominee saw broader national implications to the result.
“I think he’d acknowledge he’s an underdog, particularly here in Wisconsin,” Walker said of Romney on MSNBC. “But I think anyone looking at the results last night would also acknowledge that it’s now competitive in Wisconsin.”
Romney, speaking at a fundraiser today in San Antonio, Texas, said the Wisconsin vote will “echo” throughout U.S.
“Yesterday was won by the people of Wisconsin doing the right thing and voting for conservative principles,” he said. “I think people recognize we just can’t keep going down the same path that we’re on. It ends up in calamity.”
Walker’s win prompted Democratic and Republican strategists to reassess Wisconsin’s political landscape and the role the state will play in the presidential race. Until earlier this week, target states listed by President Barack Obama’s campaign didn’t include the state, which has voted Democratic in the past six presidential elections, albeit narrowly at times.
Australian Employers Add 38,900 Jobs As Currency Jumps
Comments »Australiaunexpectedly added workers last month, capping the best January-to-May period of hiring in five years and prompting traders to pare bets on interest-rate cuts as the local dollar stages its strongest rally this year.
The number of people employed rose by 38,900 in May, after a revised 7,000 gain in April that was lower than previously reported, the statistics bureau said in Sydney today. The median estimate was for no change in employment in a Bloomberg News survey of 23 economists. Thejobless rate rose to 5.1 percent from a revised 5 percent in April as participation increased.
The local currency jumped 2.5 percent this week as the jobs data and a gross domestic product report showing the economy expanded 1.3 percent last quarter, more than twice the level forecast, underscore the nation’s resource-fueled growth. Reserve Bank Governor Glenn Stevens cut interest rates by 75 basis points in the past two meetings, to 3.5 percent, to shore up the economy as the outlook in Europe andChina deteriorates.
