Comment by phil

View Single Comment

phil
November 19th, 2014 at 7:00 am

Good morning! 

Asia was generally red this morning with Nikkei down 0.3%, Hang Seng down 0.66%, Shanghai off 0.22% and India down 0.46%.  Singapore bucked the trend, up 0.63% but all were saved by the bell as they sold off into the close.  

Interest-Rate Cuts Loom Across Asia

Dollar Rises to 7-Year High Versus Yen; Oil, Gold Retreat. The dollar climbed, reaching a seven-year high against Japan’s yen after Prime Minister Shinzo Abe called an early election and postponed a sales-tax increase. Asian equity gauges were mixed, while gold retreated and oil extended its slump. The Bloomberg Dollar Spot Index added 0.1 percent by 10:56 a.m. in Tokyo, with the greenback climbing as high as 117.22 yen. Japan’s Topix index rose 0.4 percent while Hong Kong’s Hang Seng Index was little changed after two days of losses.

Japan Is Dying And We Still Don't Get It?





Shanghai Stock Link Flows Plunge as CLSA Sees Ghost Train. The flood of buy orders for Shanghai shares through the Hong Kong exchange link has slowed to a trickle two days after the program’s debut. Net purchases of mainland equities by global investors totaled 1.1 billion yuan ($180 million) at the midday break, down from 2.7 billion yuan at the same time yesterday and 10.6 billion yuan on Nov. 17. Hong Kong stock buying slowed 66 percent from yesterday to 117 million yuan. The Shanghai Composite Index (SHCOMP) slipped 0.2 percent and shares of Hong Kong Exchanges & Clearing Ltd. (388) headed for the biggest three-day drop since 2012.

Violence Flares as Hong Kong Protesters Move on Legislature

Head of Energy Body Wants Japan to Restart Nuclear Reactors

Mining’s $120 Billion Ore Bet Sours as Peak Steel Looms in China. Chinese President Xi Jinping obviously wasn’t speaking for the world’s iron-ore producers when he pronounced this month that the risks from his country’s slowing growth “aren’t that scary.” The world’s mining giants have wagered $120 billion that steel production in China won’t peak until as late as 2030. Increasingly, it looks like they got that wrong, a miscalculation that could have huge consequences for companies led by BHP Billiton Ltd. (BHP) and Rio Tinto Group. “I’ve always taken the view that the miners had the best intelligence on this as large investment decisions are based on it,” Richard Knights, a mining analyst at Liberum Capital Ltd. said by phone. “But if they get it wrong by a just a small margin, that has major implications for profitability and the share price for years to come.” ?

China Home Price Slump Sends Iron Ore Plunging To 2009 Lows (-50% In 2014)

Chinese State Agency Buys Up Copper

China’s state agency charged with maintaining metals stockpiles has been quietly buying copper when prices dip, providing a floor of around $6,500 a ton, say traders and analysts.

Europe had a terrible open, down about half a point, but jumped back and is now evenish going into lunch.  Italy is the leader, up 0.86%.  

ECB’s Knot Sees No Reason Now to Pursue Quantitative Easing. ‘We’re Not Categorically Ruling It Out, but I’m Skeptical’.

Europe Must Pay Heed to Japan's New Slide

Eurozone Construction Declined in Third Quarter


Construction across the 18 countries that share the euro fell in September and the third quarter as a whole, an indication that a reluctance to invest continues to retard the eurozone economy.

Why is Putin buying gold



Finance Minister Insists Greece Would Soon Reach Deal With Inspectors

Our Futures are generally down just a little bit with RUT lowest, down 0.33% at the moment.  Dollar still 87.666 (sign of the Blankfein), oil $74.64 (API showed a 3.7M build in oil and giant snow storms are shutting roads and airports – not good for demand), gasoline $2.055, nat gas $4.275, gold $1,201.30, silver $16.24, copper $3.014 (finally).  

Wednesday's economic calendar

• 7:00 MBA Mortgage Applications
• 8:30 Housing Starts
• 10:30 EIA Petroleum Inventories
• 2:00 PM FOMC minutes

Goldman(GS) FX Trader Fired For Participating In Currency-Rigging Cartel Even As Goldman Avoids Any Charges

Goldman's(GS) "Best Ideas" Hedge Fund Is Down 2.6% In 2014

We Go Again: Demand For Subprime Debt Is "Out Of Control"

Staples Accelerates Store Closures



P-E firms eyeing PetSmart

• As the auction for PetSmart (NASDAQ:PETM) heats up, buyout firms KKR (NYSE:KKR) and Clayton, Dubilier & Rice have teamed up to take the pet food retailer private for more than $7.5B, Reuters reports.
• Petsmart, which reported a FQ3 beat after the bell yesterday, said in August it would explore a potential sale amid pressure from Jana Partners and other activist investors.
• KKR and CD&R are planning to submit a joint bid next month. Apollo Global Management (NYSE:APO) and BC Partners are also considering offers.
• PETM +2.6% AH

Apple, Others Encrypt Phones, Fueling Government Standoff