A sudden deterioration in demand has created the need for nearly all of the container ships headed from Asia to Europe to slow to the speed of a "fresh breeze." Outright idling of vessels is expected soon. [View news story]
Winter? I know the UK and Ireland have experienced especially cold weather. I assume the rest of Europe has as well.
A sudden deterioration in demand has created the need for nearly all of the container ships headed from Asia to Europe to slow to the speed of a "fresh breeze." Outright idling of vessels is expected soon. [View news story]
The article was sourced from an Aussie paper, but deals with ships going to Europe, not Oz.
After seeing how rising Treasury yields can take the starch out of an equity rally, investors will keep an eye on today's auction of 10-year notes. Yields continue to rise this morning, up another 4 basis points to 3.20%. [View news story]
Well, the bond market has a history of jacking up rates prior to a bond auction in order to pick up new inventory on the cheap. It's not unusual to see big rallies in bonds following a week of bond auctions. The 10 year is today and the 30 year auction is tomorrow.
Iceland and Ireland followed different paths since the financial crisis. Iceland refused to guarantee bank obligations, defaulted on its debt, and devalued. Ireland did the opposite. Both entered severe recessions in 2008, but Iceland has returned to growth, while Ireland's pain is set to get even worse. Which was the better way? [View news story]
Better for the citizen's of the respective countries ... probably Iceland.
Comcast (CMCSA) has no plans to activate usage-based pricing for its web customers, says an executive. This is smart, as such a move would further inflame consumer rights advocates already opposed to Comcast's proposed buyout of NBC Universal (GE). [View news story]
In other words, they're going to wait until after the GE deal closes!
The colorful Hugh Hendry likens QEII to the Fed "dancing around a bubbling cauldron, rubbing two chicken bones together." His latest letter explains why policy can't fix debt deflation, how the Fed created a Weimar-style plutocracy, and why he's short credit in Japan. Close the office door for 30 minutes and enjoy a good read. [View news story]
That's part of his charm! Its very clear where he's placed his bets though.
Market preview: U.S. futures are modestly lower, with Bernanke’s "60 Minutes" comments - it could take “five years” to return to employment normalcy - viewed as a net negative. S&P -0.2%. European debt concerns continue to drag on sentiment, as spreads among troubled euro-zone bonds widen; European finance ministers meet in Brussels later today. [View news story]
Don't forget your David Tepper - "if it's bad, it's good," cause it'll lead to more QE. If pre-market is lower, its because folks were hoping Bernanke would say it would take 12 years to return to employment normalcy.
As European stock indexes give up gains and turn lower following disappointing US NFP data, the euro breaks out of the correlation matrix and rushes higher to $1.333, up nearly a full cent since the release. [View news story]
No doubt.
To paraphrase David Tepper, "If its good it good. If its bad its still good."
There was a line from Raging Bull just like that ... too lazy to look it up.
Channeling David Tepper, hedge fund manager Orin Kramer says don't fight the Fed. He believes banks, particularly Citibank (C), will be beneficiaries of QEII. [View news story]
Tepper - BAC Kramer - C who needs to get rid of their WFC?
And as QE2 skeptic Charles Plosser expects (hopes?) the Fed might not buy a full $600B in assets, St. Louis Fed President James Bullard reiterates that the central bank will likely go through with the whole program. Rising rates don't mean monetary policy is failing, he says: Easing has its biggest impact with a lag of six to 12 months. [View news story]
Trouble is, if rates had fallen 50 bp instead of rising, Bullard would be out there saying, "look, its working".
In summary, if rates go up, QE is a success, if rates go down, QE is a success.
European stocks have fallen from their highs of the day, but still remain stronger as Trichet speaks and no major policy changes are announced. The euro at $1.3104 is now lower on the day, more than a full cent off of its highs. [View news story]
^^^ exellent point. looks like they burned a few folks once again ...
Deutsche Bank (DB) and Credit Suisse (CS) were the largest counterparties to the Fed, during its program of buying and selling MBS. Together, they traded nearly $800B with the Fed. Assuming a typical dealer spread of 1/64th to 1/32nd, the two foreign banks could have earned between $125M and $250M on their dealings with the Fed.[View news story]
The Fed's TALF drew hedge funds, mutual funds, and pension funds attracted by low interest loans with which they could purchase bonds backed by consumer loans. In all, $71.1B was lent, with PIMCO, at $7.1B, being the most prolific borrower. [View news story]
Being top dog in a world of rent-seekers is high-paying work.
"We're all Allentowners now," according to Bill Gross who sees a world economy suffering from lack of demand and intense labor competition, with developed countries pursuing the wrong policies to address these issues. Some might disagree. [View news story]
Your point is taken.
Sadly, we only have so much room for currents posts. The larger point is that while there may no longer be enough demand to support a 2 Best Buys and 2 Circuit Citys within a 15 mile radius of every man, woman, and child in the populated areas of this country, a look at the charts of commodities and their producers (as well as the wages of their workers) shows more than enough demand.
Equities jump an additional 0.5% and the euro pops 100 pips in the space of a few minutes after an official offered further US support for European bailouts. S&P500 +2.2%, euro +1.31% [View news story]
Well, I'm still trying to figure out who said it. Let's assume it was a a Treasury official who was trotted out by Tim Geithner. Geithner's main talent (going back to the Mexico bailout in 1994) seems to be a genius for using existing laws/frameworks to allow the Treasury or the Fed to fund things that would generally be thought of as needing Congressional approval.
A sudden deterioration in demand has created the need for nearly all of the container ships headed from Asia to Europe to slow to the speed of a "fresh breeze." Outright idling of vessels is expected soon. [View news story]
A sudden deterioration in demand has created the need for nearly all of the container ships headed from Asia to Europe to slow to the speed of a "fresh breeze." Outright idling of vessels is expected soon. [View news story]
After seeing how rising Treasury yields can take the starch out of an equity rally, investors will keep an eye on today's auction of 10-year notes. Yields continue to rise this morning, up another 4 basis points to 3.20%. [View news story]
Iceland and Ireland followed different paths since the financial crisis. Iceland refused to guarantee bank obligations, defaulted on its debt, and devalued. Ireland did the opposite. Both entered severe recessions in 2008, but Iceland has returned to growth, while Ireland's pain is set to get even worse. Which was the better way? [View news story]
Better for Deutsche Bank ... definitely Ireland!
Comcast (CMCSA) has no plans to activate usage-based pricing for its web customers, says an executive. This is smart, as such a move would further inflame consumer rights advocates already opposed to Comcast's proposed buyout of NBC Universal (GE). [View news story]
The colorful Hugh Hendry likens QEII to the Fed "dancing around a bubbling cauldron, rubbing two chicken bones together." His latest letter explains why policy can't fix debt deflation, how the Fed created a Weimar-style plutocracy, and why he's short credit in Japan. Close the office door for 30 minutes and enjoy a good read. [View news story]
Market preview: U.S. futures are modestly lower, with Bernanke’s "60 Minutes" comments - it could take “five years” to return to employment normalcy - viewed as a net negative. S&P -0.2%. European debt concerns continue to drag on sentiment, as spreads among troubled euro-zone bonds widen; European finance ministers meet in Brussels later today. [View news story]
As European stock indexes give up gains and turn lower following disappointing US NFP data, the euro breaks out of the correlation matrix and rushes higher to $1.333, up nearly a full cent since the release. [View news story]
To paraphrase David Tepper, "If its good it good. If its bad its still good."
There was a line from Raging Bull just like that ... too lazy to look it up.
Channeling David Tepper, hedge fund manager Orin Kramer says don't fight the Fed. He believes banks, particularly Citibank (C), will be beneficiaries of QEII. [View news story]
Kramer - C
who needs to get rid of their WFC?
And as QE2 skeptic Charles Plosser expects (hopes?) the Fed might not buy a full $600B in assets, St. Louis Fed President James Bullard reiterates that the central bank will likely go through with the whole program. Rising rates don't mean monetary policy is failing, he says: Easing has its biggest impact with a lag of six to 12 months. [View news story]
In summary, if rates go up, QE is a success, if rates go down, QE is a success.
European stocks have fallen from their highs of the day, but still remain stronger as Trichet speaks and no major policy changes are announced. The euro at $1.3104 is now lower on the day, more than a full cent off of its highs. [View news story]
seekingalpha.com/news/...
Deutsche Bank (DB) and Credit Suisse (CS) were the largest counterparties to the Fed, during its program of buying and selling MBS. Together, they traded nearly $800B with the Fed. Assuming a typical dealer spread of 1/64th to 1/32nd, the two foreign banks could have earned between $125M and $250M on their dealings with the Fed. [View news story]
The Fed's TALF drew hedge funds, mutual funds, and pension funds attracted by low interest loans with which they could purchase bonds backed by consumer loans. In all, $71.1B was lent, with PIMCO, at $7.1B, being the most prolific borrower. [View news story]
"We're all Allentowners now," according to Bill Gross who sees a world economy suffering from lack of demand and intense labor competition, with developed countries pursuing the wrong policies to address these issues. Some might disagree. [View news story]
Sadly, we only have so much room for currents posts. The larger point is that while there may no longer be enough demand to support a 2 Best Buys and 2 Circuit Citys within a 15 mile radius of every man, woman, and child in the populated areas of this country, a look at the charts of commodities and their producers (as well as the wages of their workers) shows more than enough demand.
Equities jump an additional 0.5% and the euro pops 100 pips in the space of a few minutes after an official offered further US support for European bailouts. S&P500 +2.2%, euro +1.31% [View news story]