Oh anti-trust, anti-trust, wherefore art thou anti-trust? Don’t get me wrong, I love T as an investment, we just made a play on them last week with their big, fat, 6% dividend. Now they are using debt to finance a $39Bn purchase of DT’s T-Mobile division as the German-based company is sick and tired of getting paid in worthless dollars, which add nothing to their Euro-based earnings. Although one may think regulators would actually wake up and say "Huh?" to this deal – AT&T was confident enough to put up a $3Bn breakup fee and you don’t do something like that unless you’ve already spent $300M buying all the votes you need ahead of time.
"AT&T anticipates regulators will require it to divest wireless spectrum and subscribers as a condition for approval," said a person with knowledge of the situation. These things are all worked out long before they are announced but let’s hear it from the little guy anyway: "The combination of the second-largest wireless carrier with the fourth-largest is ‘unthinkable’,” Gigi Sohn, president of Public Knowledge, a Washington-based advocacy group, said in a statement. “We know the results of arrangements like this — higher prices, fewer choices, less innovation.” Isn’t he cute?
In addition to surpassing Verizon Wireless, AT&T could leave Sprint Nextel Corp. (S) as a far weaker No. 3 player in the industry, said Rebecca Arbogast, an analyst for Stifel Nicolaus & Co. in Washington. “AT&T was broken up and now it’s back with a vengeance,” said Bert Foer, president of the American Antitrust Institute, a Washington-based non-profit researcher that challenges what it sees as abuses of concentrated economic power. “We have to decide if we’re happy with the idea of going back to monopolistic treatment of the telecom industry. AT&T has come back to monopolistic power just like the Terminator.”
Is T calling a bottom to the dollar? Probably. You don’t spend $39Bn to buy a 40% market share in a country with declining revenues. T is also calling a bottom to lending rates and probably making a bet on inflation as well – all in all, pretty much exactly what we’re playing the market for so, from a T shareholder perspective – I love this acquisition. Nothing makes money like a monopoly (just ask Carlos Slim) and, as Steve Colbert illustrates above, AT&T has…
The Telegraph reported over the weekend that Gaddafi apparently made good on his threats to trigger a civil war, using irregular forces largely composed of hired mercenaries to launch a counterattack against protesters. “Anywhere we go there is danger,” said one woman, a 28-year-old mother of four who asked not to be named. “All we want is food and fresh water for our children but it is impossible to find. Security is the only concern of the authorities.”
An accurate report of the death toll is impossible to obtain at this time, but on Wednesday, Italy’s Foreign Minister, Franco Frattini said, “We believe that the estimates of about 1,000 are credible.” The situation in Libya has deteriorated since then. Multiple stories coming in from all over the country have cited dozens to hundreds of casualties in each city. It appears that Libya has slipped into the abyss of complete social breakdown and civil war.
A frame grab from Libyan state television broadcast on February 24, 2011 shows burnt cars in Tripoli, Libya.
AFP / Getty Images
When Rahma started her conversation over the phone, she said the shooting outside her home, in the streets of Tripoli, had calmed. It had been a terrible Friday. "After prayers, around 6,000 people gathered to denounce the regime, and soon after that, soldiers opened fire and killed two people," said the 21-year old woman, an employee for an oil company. But, 20 minutes after we began talking, she suddenly says, "I’m hearing shots again — a lot of them now. It’s getting worse" The terrible day was not yet over.
As more and more cities joined the ranks of "Free Libya," Tripoli is increasingly the theater for what looks to be Muammar Gaddafi’s last stand. Almost on cue, anti-regime forces, reportedly bearing arms taken from arsenals and swelled by the ranks of defecting soldiers, are bringing the battle to the capital from the so-called liberated zones. And for their part, thousands of residents of the capital took to the streets today, following Friday prayers, in a procession that kept on growing in size as it headed for Tripoli’s central plaza, Green Square. The regime’s troops responded by opening fire.
Rahma tells TIME she was out among the crowds earlier on Friday, but had been inside at home after hearing from family members elsewhere in the city that troops had shot unarmed marchers. At mid-afternoon, people she knew at the march told her that their numbers had grown to around 10,000 people. "The nearer to Green Square they get, the more people come out to join them," she says. "The soldiers are shooting more to reverse that, but it isn’t working. The soldiers may shoot people, but more citizens will come to replace them."
Like most other Libyans, Rahma has relied on cell phone communication to get updates on events, though not all information is easy to vet. "It’s very difficult to confirm everything you hear, and there are…
The one country landlocked between Tunisia and Egypt has so far been oddly silent. Not so much any more. Al Jazeera reports that the Libyan government has imposed a state of emergency for "fear of demonstrations and rallies" comparable to those in Tunisia and Egypt. And ranked 17 in the world for oil production (and 9th in proven reserves), this is one that crude HFT algos may want to keep an eye on.
Libyan sources familiar with the island revealed that a state of alert security prevail in the east of the Libyan cities, confirmed that elements of the police and support central and distributed to all government buildings.
The sources said that the Libyan government imposed a state of emergency and security alert since the outbreak of the revolution, Tunisia, for fear of demonstrations and rallies similar in Libyan cities.
The sources of the existence of orders to stop any gathering, whether in government or outside.
Under these instructions – Sources confirm – The Libyan government later abolished the league matches of Libyan Football Association which was to be organized during the month.
In conjunction with the ongoing events in neighboring Egypt, the forces imposed from the central support and the police since yesterday evening checkpoints in several major regions in both the white and Benghazi and Derna and Tobruk.
These enhancements come at a time when Libya is following with interest the Libyan street events taking place in Egypt over the satellite news channels deployed in all the cafes and shops in cities of Libya.
He said the Libyans before the popular revolution that swept cities in Tunisia and has succeeded in toppling President Zine El Abidine Ben Ali, after 23 years of rule.
It is feared the Libyan regime of infection along the Tunisian and Egyptian into Libya, especially in light of similar conditions and problems such as poor living conditions and the absence of freedoms
The conservative German daily Die Welt, well-known for its unflinching support for Israel, recently published an article stating “with near certainty” that the Federal Republic of Germany, or West Germany, helped finance Israel’s nuclear program in the 1960s.
According to the Welt report, in 1961 West Germany agreed to loan $500 million to Israel over ten years. Although the officia...
Noah Smith has a post on the failure of macro theory to predict the crisis. He concedes that DSGE models did very badly on this score, but, he continues, “There are no other models out there that did forecast the crisis” and there is nobetter alternative. (More)
Richard Wyckoff used this tool for over 20 years, of course as readtheticker.com is a fan website of Richard Wyckoff here is our reproduction of his work.More from RTT TvNOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net Investing Quote...
..“The only way you get a real education in the market is to invest cash, track your trade, and study your mistakes…. The examination of a losing trade is tortuous but necessary to ensure that it will not happen again.”..Jesse Livermo...
When it comes to investing in the stock market, do you feel leadership can be important. If so, you might want to pay attention to price action from a key global stock index. China has been in the news for hot stock market performance that past couple of months. When it comes to the past couple of years, Germany has been stronger than China and the S&P 500. In the past two years the DAX index has gained 18% more than the S&P 500, which is a 60% greater return.
The chart below looks at conditions in the DAX at this time and what message is coming from this index.
As we get into the heart of earnings season and anticipate the GDP report for Q1, the investor spotlight has been taken off the Federal Reserve and timing of its first interest rate hike, at least temporarily. Even though Q1 economic growth will undoubtedly look weak, the future remains bright for the U.S economy – even though many multinationals will struggle with top-line growth due to the strong dollar – and any near-term selloff resulting from weak economic or earnings news should be bought yet again in expectation of better results for the balance of the year. High sector correlations remain a concern, reflectin...
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As noted earlier, with equities now a barren wasteland of volume (and liquidity), the last remaining HFT master (of whale order frontrunning)has been forced to go to those asset classes where organic flow is still abundant such as FX, courtesy of central banks engaged in global currency wars. However, HFTs rea...
Kim Parlee interviews Phil on Money Talk. Be sure to watch the replays if you missed the show live on Wednesday night (it was recorded on Monday). As usual, Phil provides an excellent program packed with macro analysis, important lessons and trading ideas. ~ Ilene
The replay is now available on BNN's website. For the three part series, click on the links below.
Part 1 is here (discussing the macro outlook for the markets)
Part 2 is here. (discussing our main trading strategies)
Part 3 is here. (reviewing our pick of th...
In my last post (Part 1 of this article), I looked at alternative ETFs that could be used as hedges against the corrections that we have seen during that long 2 year bull run. Looking at the results, it seems that for short (less than a month) corrections, a VIX ETF like VXX could actually be a viable candidate to hedge or speculate on the way down. Another alternative ETF was TMF, a long Treasuries ETF which banks on the fact that when markets go down, money tends to pack into treasuries viewed as safe instruments. In some cases, TMF even outperformed the usual hedging instruments like leveraged ETFs. There could of course be other factors at play since some of 2014 corrections were related to geopolitical events which are certain...
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PSW Members - well, what a year for biotechs! The Biotech Index (IBB) is up a whopping 40%, beating the S&P hands down! The healthcare sector has had a number of high flying IPOs, and beat the Tech Sector in total nubmer of IPOs in the past 12 months. What could go wrong?
Phil has given his Secret Santa Inflation Hedges for 2015, and since I have been trying to keep my head above water between work, PSW, and baseball with my boys...it is time that something is put together for PSW on biotechs in 2015.
Cancer and fibrosis remain two of the hottest areas for VC backed biotechs to invest their monies. A number of companies have gone IPO which have drugs/technologies that fight cancer, includin...
This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible. Feel free to contact me directly at email@example.com with any questions.
Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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