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Tuesday Topics – Market Manipulation, Oil Inventories and the Death of Democracy

SPY 5 MINUTEIs this a joke?

As we thought, yesterday's volume was very low – it was actually the 2nd lowest day of the year,  that didn't stop the Nikkei and the Hang Seng from following us up half a point but Shanghai was flat at 2,008, dropping 10 points from its pumped up open and I'm sorry but you are NUTS to be too bullish in this market when that index is in danger of failing 2,000.  

I don't mean not bullish at all – our LTP is still 100% bullish but it's hedged by the STP, which is mostly bearish.  Just – BE CAREFUL!!!

Did you catch that news item above? "Shinzo Abe turned to Nobel laureate Robert Shiller to try to

restore a vital ingredient of his economic revolution: optimism."  That's the World we're living in now – Central Bankers aren't even ashamed to admit that they manipulate the news and take actions aimed at making you THINK the economy is recovering.  

That's based on the old "truism" that, if people are optimistic, the economy will improve but it's FLAWED because consumers no longer have any discretionary income to spend and they don't have any savings and small businesses, who still employ 80% of the workers, don't have any money to spend either.  

They have shifted the bulk of the discretionary GDP to the top 0.01% who don't spend it at all but use it to consolidate their empires.  All these old economic rules don't apply to an oligarchy – every act of stimulus only serves to make the rich richer and push the rest of the country further into debt.  Sure, the rich are in debt too but a guy with $1Bn owes the same $164,000 per family as the guy with $100,000 does.  

Not only that, but when you tax the top 0.01% 15-20% but tax the bottom 99.99% 35%, the money just keeps funneling to the top.  This madness has to end but, like Global Warming, it happens too slowly for most people to be aware of it until it's far too late.  Maybe it is already too late - look at the way Occupy Wall Street was crushed out of existence by coordinated thuggery by our Corporate-sponsored Governments

It was more sophisticated than we had imagined: new documents show that the violent crackdown on Occupy last fall – so mystifying at the time – was not just coordinated at the level of the FBI, the Department of Homeland Security, and local police. The crackdown, which involved, as you may recall, violent arrests, group disruption, canister missiles to the skulls of protesters, people held in handcuffs so tight they were injured, people held in bondage till they were forced to wet or soil themselves –was coordinated with the big banks themselves.

The Partnership for Civil Justice Fund, in a groundbreaking scoop that should once more shame major US media outlets (why are nonprofits now some of the only entities in America left breaking major civil liberties news?), filed this request. The document – reproduced here in an easily searchable format – shows a terrifying network of coordinated DHS, FBI, police, regional fusion center, and private-sector activity so completely merged into one another that the monstrous whole is, in fact, one entity: in some cases, bearing a single name, the Domestic Security Alliance Council. And it reveals this merged entity to have one centrally planned, locally executed mission. The documents, in short, show the cops and DHS working for and with banks to target, arrest, and politically disable peaceful American citizens.

This is over a year old but, of course, it was never even allowed on the US News.  

As Mara Verheyden-Hilliard, executive director of the PCJF, put it, the documents show that from the start, the FBI – though it acknowledgesOccupy movement as being, in fact, a peaceful organization – nonetheless designated OWS repeatedly as a "terrorist threat":

"FBI documents just obtained by the Partnership for Civil Justice Fund (PCJF) … reveal that from its inception, the FBI treated the Occupy movement as a potential criminal and terrorist threat … The PCJF has obtained heavily redacted documents showing that FBI offices and agents around the country were in high gear conducting surveillance against the movement even as early as August 2011, a month prior to the establishment of the OWS encampment in Zuccotti Park and other Occupy actions around the country."

You would think the Tea Party would be outraged by this clearly outrageous Government behavior but the Tea Party is a Koch-sponsored farce, not an actual organization that actually cares about individual rights.  The GOP wants smaller Government – except for the ones that crack the heads and the Dems are no better as I haven't heard a single one stand up for these people, other than Elizabeth Warren, of course.  

These documents also show these federal agencies functioning as a de facto intelligence arm of Wall Street and Corporate America."

There is a new twist: the merger of the private sector, DHS and the FBI means that any of us can become WikiLeaks, a point that Julian Assange was trying to make in explaining the argument behind his recent book. The fusion of the tracking of money and the suppression of dissent means that a huge area of vulnerability in civil society – people's income streams and financial records – is now firmly in the hands of the banks, which are, in turn, now in the business of tracking your dissent.

Oh wait, I take it back, the Washington Post did publish something about this in their blog section - on Dec 31st, 2012 - just in time for no one to notice it.  

Am I crazy to care about this stuff?  

Sometimes I feel like I am, but I guess that's the point of the top 0.01% taking control of the media – the idea is to make us feel like there's something wrong with us when we question the status quo. As Orwell said and as Goebbels put into practice, history can be rewritten until people can't even remember the way things were before.  I see that all the time in my kids' "history" books.  

Now that we are, effectively, "burning" the last of the paper books in the world (2 more generations, at most), all of history will be electronic and then, when they change it, no one will ever know.  

Same goes with Financial Info – if you listen to CNBC or Bloomberg, oil is heading to $110 over the summer but, if you dig enough (and this one is even on Bloomberg.com), you find out this truth:

WTI slid for a second month in April as U.S. crude inventories expanded to a record 399.4 million barrels, the highest level since the Energy Information Administration began publishing weekly data in 1982. Supplies were probably at 398.5 million barrels in the week ended May 16, according to the median estimate in a Bloomberg survey of seven analysts.

Stockpiles at Cushing, Oklahoma, declined to 23.4 million barrels in the seven days through May 9, said the EIA, the Energy Department’s statistical arm. That’s the least since December 2008. Supplies have decreased as the southern leg of the Keystone XL pipeline began moving oil to Gulf Coast refineries from storage in January. The U.S. is the world’s largest oil consumer.

So it's not that there's been any real draw on oil at all – new record highs means new record highs – they've just moved the oil from Cushing (where it's measured) to other places where it isn't.  

Oil (/CLN4 = July) is $102.32 today (we're short from $102.50 already), the boost is being caused by the rolling of /CLM4 ($102.76), which expires tomorrow, into the next month contracts.  That means, once the rolling is done – if Russia does back down in the Ukraine, the only real boost left for oil is Libya – and Libya only produces 1Mbd total.  So, still hope for a sell-off but a very tough call with the holiday weekend coming up – maybe not until next week.  

Silver, meanwhile, tapped our long line at $19.30 again (/SI) – I still like that over the line.  Copper fell back to $3.145, nat gas is $4.46 and gasoline dove back to $2.96 and now that's a nice long (/RB) into the weekend as I'm sure they'll go for $3 again. 

 
 

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  1. Good Morning Moscow………

    You know there is something wrong with the climate when it's warmer in Moscow than in New Jersey in May. I was actually talking to my colleagues this morning and they were telling me that while we froze to death this winter with temperatures in the 10's and 20's in NJ, they had temperatures in the high 30's here in Moscow. Totally normal I am sure, nothing to worry about. 

    My second impression is that the money that was spent for the Winter Olympics in Sochi would have been better spent on the infrastructure in Moscow. But from what my Brazilian friends tell me, the same is true for the World Cup in Brazil. Just crazy!

    Oh, and the RSX is a screaming "BUY" :-)  

    Zero told me to add that in case people here take my comments as negative! I'm balancing them with positive stock market comments.


  2. Oil Lines

    R3 – 103.42
    R2 –  102.96
    R1 – 102.59
    PP – 102.12
    S1 – 101.76
    S2 – 101.30
    S3 – 100.93


  3. So is the oil piling up somewhere like the cars in the ghost carlots you pointed out yesterday? Fascinating. Stuff can't be sold, so we don't stop making it but instead pile it up somewhere. Very strange world we live in.


  4. You are at your best again Phil


  5. Good Morning!


  6. Good morning all!

    Phil, I think the link you posted for the webinar is for panelists only.

    I can't seem to be able to see any comments for yesterday. I have tried it with 3 browsers and I can only get the main page and no comments. And yes, I am logged in.


  7. Update… Whatever it was it is now solved and I can see Monday's comments. Sorry.


  8. Good morning!

     

    aka….click this link for yesterday's comments to see if it works.


  9. Pharm – Yes, thank you. It is working.


  10. PFE/qc – guesses…..none at the moment.  Cubist is going to be an interesting play as well.  Antibacterials are going to be needed, and the company is cheap.


  11. Oil is breaking down, below $102 already.  


  12. Pharm

    You think PFE would be interested in Shire plc (SHPG)

    Thanks


  13. I also had problems with yesterdays comments, nothing after about 7.30am, although I can see them now. Also got 10 copies of the Dow chemicals email so something is screwy somewhere


  14. SHPG/qc – to put it bluntly, PFE will sleep with anyone.  The bigger, the better.


  15. Netflix locks up Mata Mata for Latin American audiences • 8:25 AM

    Netflix Latin America (NFLX) says it purchased soccer drama Mata Mata from Red Arrow International.

    Mata Mata tracks three young Brazilian soccer superstars for three years.

    The company is looking to capitalize on the heightened interest in soccer in Latin American countries with the FIFA World Cup around the corner.

    Terms of the content acquisition weren't disclosed.


  16. Professor davis

    good morning!

    very high workload morning post!

    TASR: I sold 1/4 position puts , Jan2016, $15 for $3.00

    time to DD? Or wait for $5 on the same puts? (Now$4.10)


  17. Where does silver go from here:

    http://shortsideoflong.com/2014/05/decision-time-silver-2/

    Silver Technicals

    To break on the upside, Silver will have to overcome a downtrend line, which has been in place since the bear market began in May 2011. On the other hand, if Silver was to move towards new bear market lows, it will first have to break a strong support area around $18.50 to $19.00 per ounce. A break in either direction could occur very soon, and would be a leading indicator for the rest of the PM space.

    I jumped in earlier thinking that it was overdone, but clearly, not the best investment now!


  18. Good chart, Stj! So disappoint of ABX. I was hoping it'd keep dropping to previous low (15.4). :-I


  19. Good morning!  

    Still watching and waiting to see if those strong bounce lines hold up.  From yesterday's close they were:

    Dow 16,511 just under strong bounce at 16,520.  S&P 1,885 is over strong at 1,879.  Nas 4,125 is under the strong bounce at 4,150.  NYSE 10,618 is just over the 10,600 goal and RUT 1,114 is still below the weak bounce at 1,120

    So, overall, not terribly impressive.  Don't forget, this is day two for bouncing – they are supposed to clear their strong bounces by now (if they are serious about recovering).  

    LOL StJ, thanks for the tip.  

    Oil/Snow – One place they pile it up is in the refineries.  All they have to do is top off the tanks and it's 1Mb here and 1Mb there and, before you know it, there's "no inventory."  Another place they pile up inventories is on ships.  When shipping rates are down (like they are now) all they have to do is instruct a dozen 2Mb tankers to slow a 15-day crossing to 16 days and – PRESTO! – there's a shortage.  The extra cost of a few tankers for one more day is nothing compared to making an extra $1 on 630Mb of oil sold each week.  

    Right now we have a glut of ships and low rates, so they become the perfect place to hide a little excess inventory. This is why Governments have historically controlled vital commodities – left in the hands of businesses, it's very easy for them to form cartels and squeeze the consumers.  

    Thanks Jomp – some days I just get pissed.  

    Webinar/Akad – Really?  I didn't know there was a panelist link.  Remind me to get another one later.  As to the comments, I'm looking at monday's post right now – looks good here.  You can reach out to Greg (admin @ philstockworld dot com) and maybe he can help you figure it out.  

    Oh, all fixed then.  

    Oil/Bruce – And now back over – gotta be quick to make money in this game!  

    NFLX/Jabob – Sounds like they already ran out of ideas.  

    • Dow -0.06% to 16503. S&P -0.07% to 1884. Nasdaq -0.07% to 4122.
    • Treasurys: 30-year 0%. 10-yr +0.05%. 5-yr +0.04%.
    • Commodities: Crude -0.17% to $101.94. Gold -0.38% to $1288.9.
    • Currencies: Euro -0.08% vs. dollar. Yen -0.11%. Pound -0.13%.

    Redbook Chain Store Sales: +3.9% Y/Y vs. +4.2% last week.

    ICSC Retail Store Sales: -1.3% W/W, vs. -0.1% last week.

    +2.4% Y/Y vs. +3.9% last week.

    • Major retailers TJX Companies, Urban Outfitters, Home Depot, and Dick's Sporting Goods are all in with quarterly reports that missed expectations.
    • Retail analysts note the sector is having a tough time shrugging off the slow traffic patterns and heightened promotional stance that afflicted store chains during the winter. Underneath one-time factors such as F/X and weather, there are still signs of a cautious and thrifty consumer.
    • More companies have lowered Q2 and full-year guidance than raised over the last two weeks.
    • Shares of Office Depot (ODP) are off 3.8% in premarket action after Staples disappoints with its weak Q1 report and guidance.
    • ETF watch: Don't expect a great day for the S&P Retail ETF (XRT) which has Office Depot and Staples both listed as top ten holdings.

    U.S. indicts Chinese officers over industrial espionage

    • The U.S. has charged five Chinese military officers for hacking into American nuclear, metal and solar companies to steal trade secrets.
    • Companies that the suspects targeted include Alcoa (AA), Allegheny Technologies (ATI), United States Steel (X), Toshiba (TOSBF) unit Westinghouse Electric, the U.S. operations of SolarWorld (SRWRD), and a steel workers' union.
    • Officials said the firms suffered "significant" losses, although they declined to provide details.
    • Alcoa said that to its knowledge, "no material information was compromised."
    • The U.S. probably won't be able to prosecute the officers, as China is unlikely to hand them over.
    • The charges come amid long-running tension between the U.S. and China over cyber-espionage. Documents leaked by Edward Snowden show that the U.S. has tampered with Cisco-made equipment that was for sales overseas.
    • Although much of the focus of China's industrial espionage is on a phishing attack against Alcoa, one of the five accused Chinese military officers allegedly stole technical and design specifications on pipes for nuclear plants from Westinghouse at the same time the company was negotiating to build four power plants in China.
    • China sees nuclear power as a way to reduce pollution in a country where nearly 80% of power is generated by burning coal, and it has the largest pipeline of new nuclear power plants in the world; China has been buying stakes in African mines, its two largest nuclear companies are preparing for IPOs, and governments are eyeing Chinese help for their own nuclear projects.
    • All this could be imperiled if the U.S. imposes sanctions against China as retribution, given that the Chinese officers are unlikely to stand trial.
    • ETFs: URANLRNUCL.

    Thai military declares martial law

    • Thailand's military chief General Prayuth Chan-ocha has imposed martial law as he looks to restore order following six months of sometimes violent and even deadly protests, although Chan-ocha denied that the military had carried out a coup.
    • Chan-ocha's action comes amid a period of limbo for Thailand after a court dismissed Prime Minister Yingluck Shinawatra and nine ministers earlier this month for abuse of power.
    • The turmoil in Thailand has brought the economy to the edge of recession, with GDP dropping 2.1% in Q1. Fitch's Andrew Colquhoun indicated that martial law might even be good for the economy if it averts more serious disorder and leads to the return of a fully functioning government that can pass a budget for next year.
    • Thailand's SET stock index fell 0.9%, while the USD-THB is +0.1% to 32.525 Thai baht.
    • ETF: THD
    • Staples (SPLS) reports comparable-store sales fell 4% in Q1.
    • Store traffic was also down 4% for the period.
    • The company's operating income rate dived 270 bps to 3.5%.
    • Segment revenue growth: North American Stores and Online -4.9% to $2.63B; North American Commercial +0.7% to $2.06B; International Operations -3.9% to $964M.
    • Guidance for Q2 EPS is set by Staples at $0.09-$0.14 vs. $0.15 consensus.
    • SPLS -9.5% premarket to $12.09.
    • Medtronic (MDT) net profit -54% to $448M, hurt by the patent agreement with Edwards Lifesciences and a product-liability settlement.
    • Sales breakdown: international +3% to $2.145B (47% of total), Emerging market +10% to $571M (13% of total).
    • Cardiac & Vascular worldwide sales +1% to of $2.37B; Restorative Therapies +2% to $1.74B; Diabetes +13% to $460M.
    • Expects FY 2015 EPS to grow 6-9% to $4.00-4.10 vs consensus of $4.09 and revenue growth of 3-5% at constant currencies. FY 2014 revenues were $17B. Analyst expectations for 2015 revenue are $17.64B.
    • Shares are -0.15% premarket. (PR)
    • Previous

  20. TASR/Maya – I think we're below fair price here so good a time as any if you are early in your scale.    The $15 puts you sold are only $4.10, down 35% is hardly worth a DD unless you simply wanted more in the first place.  I think better off selling 1x more of the $13 puts for $2.80 since you get 2x your original price AND you drop your average basis by $1.  

    Silver/StJ – Hi-ho on that one too!  Fell below $19.30 for a bit but now back to $19.45 and .15 is $750 and that's usually enough for us to take our profits (/SI).

    Gasoline down at $2.95 – not looking good.  Oil back at $101.97. 


  21. Phil / Webinar – I don't know either, but when I try to register this is what I get:


  22. Phil / Webinar – Sorry. I tried to post some pictures, but I could not. When I try to register I get:

    Your e-mail address does not match any of panelist's e-mail address specified by the event host. Please re-enter or contact the event host.


  23. Silver / Phil – Actually, I meant I jumped in for the long run in the SLV ETF… Selling calls now. And will add more if needed.


  24. Phil/Silver~ Do you know how much is the production cost of silver?


  25. /TF testing 1,100 – good for a bullish bounce play.  We have 16,430 on /YM, 1,877.50 on /ES and 3,610 on /NQ – if ANY of them go lower, then no trade or, of course, if 1,100 doesn't hold but, otherwise, if you are short – it's a good way to cover. 


  26. aapl and tsla can't make up their minds if they want to go up or down!


  27. Invest silver

    I am sure a cost of production is out there but the fact is it is a byproduct of mining for other metals. That is what has kept the prices low, without trying they get more than then can sell. Anyone thinking different should remember the Hunts, it could revisit that low again. 


  28. Don't people ever learn:

    http://finance.yahoo.com/blogs/daily-ticker/cloud-services-stock-bubble-gets-pricked-despite-defenders-143836317.html

    Shares of Workday (WDAY), for example, hit $116 in February, giving the HR services company a value of over $21 billion. The company had total revenue last year of just $469 million and a net loss of $173 million. At 45 times sales, Workday was one of the most expensive large-cap stocks in the market. Google (GOOG) sells at just 6 times its sales, Facebook (FB) at less than 17. The ratio for the entire S&P 500 is under 2. [...]

    Scott Kupor and Preethi Kasireddy, venture capitalists at Andreesen Horowitz, wrote last week defending the cloud players, arguing that so-called software-as-a-service providers are fundamentally different than other kinds companies. Don’t look at their revenue or profits or cash flow – the business is so different and so special, they say, that those standard kinds of metrics are too simple.

    I remember that talk from the end of the 90's with Internet companies. That didn't end well. I predict a similar result.


  29. Up or down/Lunar – Whole market seems to be having that problem.  

    Hunts/Shadow – That was a long, long time ago.  I think $18 is a good floor for silver and we see it get to $20 regularly so an entry at $19 makes good sense.  

    Never learning/StJ – It is amazing that people can say something like that with a straight face.  In the history of business, it has never actually "been different" over time – yet hope seems to spring eternal. 

    This should be the right link for the 1pm Webinar.  


  30. Nice move on those CAT puts.  My position is up 30% so far.


  31. Different / Phil – The business themselves are different, but the financial principles are the same – company sells products or services, company makes money or loses money! And stock prices eventually reflect that last principle. It does sometimes take a long time for the stock price to reflect reality – it's really down to how good your PR machine is now and how many people like Icahn you have tweeting for you, it has nothing to do with your business in general. See TSLA, AMZN and others.


  32. Phil silver

    It wasn't until silver got over $20 that dedicated mines emerged so cost is likely below that. Like copper stores in China, they also have silver and it makes sense that lower purchases have cut the price in half. Back in the 70s silver was a product of lead smelting, the sulfuric acid was considered more valuable. Many gold mines produce larger amounts of silver. The main industrial use of silver is switch contacts where the wiping across is a sort of self cleaning and silver oxide is second to silver in conductivity. If the world falls into another recession, China may lead that, the price could fall in half again. Silver makes great wire but it is so soft that it breaks from it's considerable weight and forget flexing. Limited use and large quantities don't hold prices when the truth appears. It isn't corn, oil or steel as a commodity, and never had the attraction of gold. In Montana years ago small time gold miners could sell gold but couldn't give away the silver ore, no one would refine it, so it is sitting in slag piles that the EPA never cleans up. Maybe that explains why. This is not in balance sheets anywhere but some of us know where to find it. FWIW in troubled times gold is a safer investment, silver should be only short term like you say between $18 and $20.


  33. That new MSFT Surface Pro 3 looks like a winner to me.


  34. Shadow:  Troubled times, yes.  War, revolution, etc.  But "lowflation"?  -- stretching to the horizon when a very large percentage of the U.S., European, Chinese populations, and everyone else who sells raw materials and manufactured goods to them — has no money to spend at the margin?  I can't say you're wrong.  I also can't figure out what good a bar of gold does me when prices are falling worldwide.  A conundrum for our times, I think.


  35. Surface Pro 3:

    http://gizmodo.com/the-surface-pro-3-has-a-big-beautiful-12-inch-screen-1578974248

    The Surface Pro 3 is not only bigger than its predecessor, it's also thinner at 9mm, lighter at 800g. If that doesn't mean much to you, it's way lighter than the Macbook Air, which Microsoft proved on stage with a gat dang scale.

    The new stretch to 12 inches diagonal also brings the Surface Pro 3 up to an unusual 2:3 aspect ratio, with a resolution of 2160 x 1440.


  36. And on the downside the Surface Pro is Microsoft and uses an incredibly difficult and annoying operating system.  User unfriendly.


  37. Thanks, Shadow. I think most precious metals’ charts suggest a strong move is coming. I’m not sure which way it will go. Let the chart guide us.


  38. back from St John and T-minus 12 days to my coin release. Good times!


  39. Stj, my colleague returned the iPad just got the Surface Pro maybe 2… It’s a great tablet for work as it’s totally compatible with Office n other PC programs.


  40. I am gonna buy them up BDC, and split the profits with you creating a false sense of security for a coin that does not exist..  Oh, wait, did I say front-run?  :)


  41. Your welcome investwizard

    zeroxzero you are reading the actual times that are coming, the entire world's foundation is falling apart and the rich, want to be rich and many well to dos don't get people like me with no extra income for anything, I have cut out medical wants also, are their support. The FU is going to rise back up, can't hire bank tellers here, Burger King closed, and ski hill wants the county to finance a new lift. Things work until they don't anymore.


  42. Last Tuesday, we had 9 stocks to watch:  RRD, WEN, KBH, IGT, WFM, HOV, IRBT and TASR.   We haven't pulled the trigger on any as new plays and the main idea is to see which one gets CHEAPER and that becomes the one we want most (assuming it's not on new information that's bad).  

    Today we go through the rest of the bargain bin to round out our watch list.

    • ISRG is one we always like when it's cheap and they're back at $364.40 and one of the best reasons to enter a bullish play is because you have a very obvious line at which to get out.  $350 is an obvious line.  The 200 dma is actually at $400 and the 50 dma, at $415 is going to death cross soon (unless ISRG rockets back over $400), so no hurry on this one but well worth watching.  2016 $300 puts are $28 for a net $272 entry and that's another 25% down from here.  

    • PFE is cheap at $29.42 and they pay a $1.04 dividend but we can blow that off and sell the 2016 $30 puts for $3.80 and use that money to buy the $23/30 bull call spread for $4.40 for net 0.60 on the $7 spread that's $6.39 in the money to start.  If all goes well, it's a 1,066% profit in 18 months on the cash and TOS says the margin on the put side is just $6, so margin-efficient too!  If you REALLY want to own 500 shares of PFE at $30.60 in 2016 ($15,300), then 5 of these spread contracts cost just $300 in cash, $3,000 in margin and pays $3,500 if PFE is over $30 in Jan 2016.  That one is worth putting 10 in the Income Portfolio.  

    • TEX is one we used to like in the teens but they'll never see the teens again, now $39.80.  It's a building and infrastructure play and I know from trying to raise capital for a real estate venture last year that NO ONE is going to be breathing down their necks for a long time.  In fact, they've been able to buy up a lot of their competition and pick up equipment from failed competitors for pennies on the Dollar in the down market.   Last earnings indicated they were backlogged on orders and the 200 dma is $38 and I doubt they go lower than this.  They don't pay a dividend (0.20), so no reason to own them but you can sell the 2016 $35 puts for a very nice $5.30 for a net $29.70 entry and leave it at that or add the $30/40 bull call spread at $5.50 for net .20 on the $10 spread that's almost 100% in the money.  This one is too good – gotta pull the trigger on 5 in the Income Portfolio!  

    • BRCM is one we like to buy whenever they are not expensive.  They had a nice sell-off last year and we grabbed them at $25 but it doesn't look like that will happen again – now $30.23.  They only pay a .48 dividend (1.5%) so forget that and we can sell the 2016 $30 puts for $4.10 for a net $25.90 entry and leave it at that and, if they weren't already in the LTP (we sold the 2016 $25 puts for $3.10 when it was lower) I'd add it now.  

    • NTAP has earnings tomorrow and expectations have been lowered to the point where they seem a bit silly.  They beat by 3.5% last Q but gave crappy guidance but they've already laid people off and cut costs so, even if they miss this Q, I'll still like them later.  In this case, I'd just sell the 2016 $30 puts for $3.40 for a net $26.60 entry, which is 22% off the current price and, if they do miss and go down (but we think they'll come back) THEN we can add a bull call spread and, if not, then it's just fee money.  Let's sell 5 for $1,700 in the STP and we'll push it to the LTP if they fail.

    • JDSU got crushed on earnings but have held up well since.   They missed estimate AND lowered guidance but it's not their fault as the Telcos simply delayed spending on fiber last Q and – THE WEATHER!   This is kind of like when I put my foot down on ALU a couple of years ago – I don't care how bad they look now, these are the guys who wire up the internet and, eventually, there's a Trillion Dollars worth of fiber that needs to be laid around the World.  The 2016 $10 puts can be sold for $1.55 for net $8.45, which is 22% off the current $10.90 – it's a nice way to play them to start.  

    With a trade like this, if you have a $100,000 Portfolio and you are allocating $10,000 margin blocks, you generally would make a $5,000 entry on a trade like this so 6 contracts collects $930 against $780 in net margin and you either end up owning 600 JDSU for net $8.45 ($5,070) or, it's over $10 and you get to keep the $930, which is 1% of your entire portfolio for tying up $780 in margin.  

    Only if JDSU heads lower do you ever worry about committing a full allocation.  Otherwise, it's just free money and, once it's over, say, $12, you essentially forget about it and move on to other trades – like DIS, CHL and FCX puts we sold in the Income Portfolio that we no longer worry about as well as CAKE, CAT, DE, FCX and INTC in the LTP – once they are up 25%+, they are hedging themselves and become a non-issue and the rest of your allocation is released to do other things.  

    IBM is on my list if they get cheaper ($165).

    AKAM is very tempting at $50. 

    EBAY still cheap (got 'em).  

    OK, that's plenty for today's Webinar, we still have Materials, Semis, Telcos and Utilities to look at next week. 


  43. This should be the right link for the 1pm Webinar.  

    Webinar – I am still going to the Panelist page. Can anyone confirm if they can join/register the webinar?

    Thank you


  44. X finally breaking down below 200MA


  45. Come on DXD's. Come to daddy!


  46. Akademia, Phil:

    The link goes to Panelist…..a new link please!


  47. CAT/Palotay – That one is working nicely already!  

    Speaking of CAT, nice disaster short on them – July $100 puts just $1.35 with CAT at $105 and, as much as I love them long-term, they are not going to fight a Dow sell-off.  It's speculative but could be an easy triple off a 5% correction.  

    After a dip back to $95 (hopefully) – we can go back to betting the CAT will come back!  

    July puts already $1.80 (+33%) but a long way to go if the markets stay sour.

    Different/StJ – Yep, and we have to adapt to survive.  

    Silver/Shadow – All true but, nonetheless, if gold pops $1,350, silver will certainly pop $20 – they are just connected that way.  

    MSFT/StJ – I sure hope it does better than the last ones.  Only 2M sold total!   They HAVE to keep selling them or they'll have to write of Billions in R&D.  

    /NQ is the laggard now – a nice short if they fail 3,600.   /YM 16,378, /ES 1,872 and /TF 1,094 are the check sums.  

    Dollar flatlining at 80.10.  Oil $102.15 (middle of the day's range) and gold failing $1,295.  

    Office/Invest – Tina just looked at my laptop and pointed out that I didn't have Outlook and I said "really?"  I've been using it for over a year have simply had no occasion to use it for Email (I use the IPad when on the road).   It does have Office but I never use that either as the IPad reads stuff fine, which is usually all I need when traveling.  That's MSFT's problem, people are getting weaned away from their software so they'd better find a Windows-based hardware platform people want to use! 

    Still working on a proper Webinar link.



  48. Yup, Phil. That Surface basically functions like a PC. There’s a market for that. :)



  49. Wow, now those CAT puts are up 100%.  I think I'm going to sell half now.


  50. Morgan Stanley still full of swagger on Tesla Motors • 2:00 PM

    Morgan Stanley takes Tesla Motors (TSLA -1.2%) on a victory lap as it tears down what it sees as the standard bear case on the EV automaker.

    Distribution: MS notes the ultra-powerful dealer lobby has cracked in a few states and Tesla has the backing of the FTC over the direct sales model.

    Gross Margin: Tesla hit the 25% gross margin level that skeptics claimed wasn't achievable. On tap is marching close to 30% as scale comes into play.

    Gigafactory: The support of Panasonic is proof enough for MS that the gigafactory can deliver the battery cost reductions promised.

    For those scoring at home, Morgan Stanley is in with a $320 price target on Tesla.

    Timeline of the Morgan Stanley-Tesla love affair


  51. How could anyone take Morgan Stanley serious after the gross shenanigans they pulled last quarter.  That should be investigated.

    JP Morgan lowered their target on TSLA from 164 to 163.  WTF is that?  A dollar?  Didn't know analysts were being that specific with the MOMO's.


  52. Thx, Opt.Celg is still green. Darn it.


  53. Let's see if things are going to flip in a couple hours when we decide that the Fed speak is actually good news for the economy and we end the day up 1% like last year when we crashed on the taper announcement and same day ended up significantly.

    If memory serves me right…


  54. I guess 90 mins is our new official webinar time!  

    Surface/Invest – But if functions like a Windows 8 PC – yuch!  I bought a laptop with that thing on it and gave it to Maddie the next day – not for me.  She loves it though, her fingers fly over that touch screen.  

    I like that article Diamond:

    CAT/Paloty – I HOPE my $95 target will be hit but very wise to take a profit on half (now $2.40).   Got Fed minutes and 4 Fed speakers tomorrow, so we could bounce right back. 

    TSLA/Jabob – Did I miss some partnership announcement with Panasonic?  Last I heard, they were very iffy.  

    $163/Rustle – What a joke.  

    Flipping/JPH – Very tempting to go long into the close now.   I still like /TF, now off the 1,090 line.  

    How did oil manage to get back to $102.33?  


  55. Phil, that’s fine. I knew you are an Aapl fan. ;)


  56. I have a pc laptop actually – just hardly use it vs my IPad these days but I still don't like the AAPL as much to work on during the day (I have an IMac, but it's my side computer).  


  57. /NKD hugging 14,000 so, if /TF makes it over 1,095 and /YM gets back over 16,350, then /NKD can be played as the laggard to move higher (with very tight stops below, of course). 


  58. Phil// I missed the trade on NFLX you had mentioned yesterday.  Is it still worth it?

    In the $25KP, let's DD on the NFLX June $275 puts at .68.

    BTW, I was waiting for the DD on this before I wanted to enter this trade.  So as of now I don't have any positions on the baove NFLX trade.


    • Not disappointing his hawkish fans, Philadelphia Fed boss Charles Plosser (an FOMC voter this year) muses the Fed may have to speed up its removal of monetary accommodation and get on with actual tightening.
    • "Reducing the pace of asset purchases in measured steps is moving in the right direction, but the pace may leave us behind the curve if the economy continues to play out according to FOMC forecasts … If the economy continues to improve … we could find ourselves still trying to increase accommodation in an environment in which history suggests that policy should perhaps be moving in the opposite direction."

    Companies rush to borrow amid "wall of money"

    • With borrowing costs about the lowest on record, and investors lending first and asking questions later, corporate finance officers are busy taking out loans.  "My treasurer tells me always borrow when you can, not when you have to," says Shell CFO Simon Henry. "There are huge liquid pools at whatever tenor we need … There's more capital out there than we can consume."
    • The average yield on corporate debt has fallen 61 basis points this year to 4.4%, nearing last year's pre-bond bear market low of 4.1%.
    • “The market is pretty hot,” says George Dessing, treasurer of Dutch business-to-business publisher Wolters Kluwer NV which raised 10-year money this month. “We have a preference for longer maturity and especially right now at these low costs it was a no-brainer.”

     

    • Barrick Gold (ABX +0.4%) reportedly has met with Chilean officials and wants to resolve outstanding problems so it can move forward with its suspended Pascua Lama mining project.
    • Last October, ABX shelved the mine over problems including political opposition, environmental permitting, labor unrest, cost overruns and a drop in gold prices.

     

    • China purchased 18% less gold in Q1 than it did one year ago, according to the World Gold Council, including a 55% slump in gold bar and coin purchases. The world's 2nd biggest buyer, India purchased 26% less than a year ago.
    • The selling wasn't just limited to emerging markets – physical demand for gold fell 52% Y/Y to a four-year low, according to the WGC. The flip-side: Investor selling (ETFs) essentially came to a halt. It's the opposite of last year where physical buyers stepped in to pick up the metal as investors unloaded.
    • Though Lions Gate (LGF +3.2%) isn't making investments as large as Disney in the multichannel space, the company is quietly carving out a niche by developing properties.
    • The best example is YouTube workout channel BeFit which has over 1M subscribers and a solid reputation in the online fitness category.
    • "Multiple currencies" have been subject to attempted manipulation, says Raimund Roseler, head of banking supervision at Germany's BaFin. Those targeted tended to be the smaller currencies as opposed to large ones like the dollar and euro, he adds.
    • The news comes on the same day the EU charged three banks for anti-competitive behavior in interest rates and one day after Credit Suisse plead guilty to U.S. charges of tax evasion. Two months back, Swiss competition watchdog Weko became the first regulator to claim it had spotted illegal activity in currencies.
    • “We see continued deterioration of the litigation environment especially in the U.S.," said Deutsche Bank CFO Stefan Krause yesterday. Indeed.
    • Previously: EU charges trio of banks over rate-rigging
    • Leveraged-loan ETFs last month had three consecutive weeks of withdrawals – the first such streak since the initial one of these was launched three years ago, according to Lipper. This streak combined with a recent general trend of outflows is a reversal from last year's record inflows as investors then – worried about higher rates – sought the funds out for their floating rate exposure.
    • Money comes and goes from all ETFs … What's the big deal? Leveraged-loan (also called bank loan or senior loan) funds can't just buy or sell stocks as money flows, but instead their portfolios are made up of loans. “What happens if outflows continue? Who are you going to sell the loans to? It could disrupt that market,” says Dan Fuss.
    • "Realize that getting quick, easy access via ETFs to a tough-to-access market doesn’t happen for free," writes Brendan Conway.
    • Previous: Warnings on bank loan funds are not new
    • ETFs: BKLNSRLNSNLNFTSL
    • Visa (V -1.4%) and MasterCard (MA -0.1%) only have six weeks to decide if a full exit from Russia is in their best interest despite the loss of revenue.
    • The companies have to make the decision in the face of the creation of a payments network in the nation backed by the government and regulations which would require them to deposit "hundreds of millions" of dollars in collateral at the Russian Central Bank.
    • Analysts note the real danger for the payments firms is that if Russia gets away with the collateral rule it could set a precedent in other emerging markets.
    • U.S. Steel (X -3.2%) has shed 17% YTD, but Axiom Capital’s Gordon Johnson thinks there'smore downside to go, calling U.S. Steel “among the best shorts in the market today."
    • Given that U.S. hot-rolled coil steel spot prices are sitting at a premium of greater than $200/metric ton to Chinese spot prices, and Chinese exports of steel are at multi-year highs, Axiom notes that whenever the spread between U.S. HRC spot and Chinese HRC spot has opened up to similar levels, U.S. HRC spot prices have collapsed down to the Chinese level within a few months.
    • Caterpillar's (CAT -1.9%) world retail sales of machines -13% Y/Y in three months to April vs -12% in three months to March, with AsiaPacific -25% in February-April, North America +12%, EAME -24%, Latin America -28%.
    • Sales to resources indutries -49% in April period vs -46% in March period; construction +6% vs +9%. (PR)
    • Las Vegas Sands (LVS -2.8%) continues its search for a new president to succeed Mike Leven.
    • Current CEO and majority shareholder Sheldon Adelson has reportedly told insiders he would give up the CEO title if the right candidate is found.
    • Analysts have been looking for a succession plan at the company for quite a while, perhaps even more so after two heir apparents left the company under heated circumstances.
    • Dick's Sporting Goods (DKS -16.1%) sinks to near a two-year low in a shocking drop after the company resets sales and profit expectations.
    • Though the company has a vibrant e-commerce channel, its massive retail footprint keeps scale an issue on the cost side. Weak demand for golf and hunting products also caught analysts by surprise.
    • The read from Dick's is creating a selling wave across the sporting goods sector.
    • Decliners: Cabela's (CAB) -5.4%, Big 5 Sporting Goods (BGFV) -3.7%, Hibbett Sports (HIBB) -2.2%, Callaway (ELY) -4.7%, Nautilus (NLS) -1.9%.
    • China's total online shopping GMV rose 27.6% Y/Y in Q1 to RMB456.4B ($73.1B), estimates iResearch. The growth rate is roughly on par with Q4's 27.5%, albeit down from Q3's 47.7%.
    • iResearch (citing government data) notes e-commerce made up an estimated 7.4% of Q1 Chinese consumer retail sales, and expects full-year GMV growth to be around 30%.
    • Business-to-consumer (B2C) transactions accounted for 39.9% of GMV, up from 35.2% a year ago and just 24.6% in Q1 2012; consumer-to-consumer (C2C) activity accounted for the rest. Alibaba's (ABABA) Tmall site remains the B2C market's 800-lb. gorilla, grabbing 50.6% of GMV.
    • JD.com (JD), set to go public ahead of Alibaba, had a 23.3% share. Fast-growing Vipshop (VIPS +1%) was the market's #3 player, but had only a 3% share. Dangdang (DANG -0.4%) claimed 2% of the market, and Amazon.cn 2.1%.
    • On the mobile side, Alibaba's Taobao site (C2C) had a 76.4% share of mobile shopping GMV. JD.com and Vipshop respectively had 6.9% and 2%.
    • "I know there are reports out there that we are talking to Dish (DISH -2.3%). I can tell you now, that is someone's fantasy … I don't think owning a satellite company is something I'm interested in at this point," says Verizon (VZ +0.1%) CEO Lowell McAdam in response to reports his company has held talks with Dish.
    • As it is, there was plenty of skepticism Verizon, which just took on more than $60B in debt to help pay for Vodafone's Verizon Wireless stake, would turn its sights on Dish in response to AT&T's (T -0.8%) deal to acquire DirecTV.
    • McAdam states Verizon's current focus is on rolling out OTT (Web-based) programming. The company bought out Intel's would-be Web TV unit in January, and has since said it's in talkswith content providers to offer a Web/mobile TV service.
    • If/when Verizon's service launches, it'll likely face competition from Dish, which plans to launch a Web TV service aimed at cord-cutters by year's end. It might also compete against AT&T,  which hopes to launch a Web TV offering within 12-18 months of the DirecTV deal's closing.
    • For each company, signing up content providers terrified of upsetting traditional pay-TV clients (and thus putting affiliate fees at risk) remains a challenge. Dish, for its part, has managed to get Disney/ESPN on board.
    • Microsoft's (MSFT -0.3%) 3rd-gen Surface Pro tablet (live blog) has a display that's 1.4" larger than its predecessor, and also features a more business-friendly 3:2 aspect ratio (was 16:9 previously). The display's resolution has been upgraded to 2160×1440 from 1920×1080.
    • In spite of the larger screen, the Pro 3's weight (~800g) is lower than the Pro 2's (~900g). Its most powerful model runs on an Intel (INTC -0.1%) Core i7 CPU (high-end), and revamped Type Cover accessories sport a bigger/improved trackpad. At 9.1mm thick, Microsoft declares the Pro 3 the "thinnest [Intel] Core product ever created.
    • Adobe (ADBE -0.3%) VP Michael Gough has used the event to show off an upcoming touch-optimized version of Photoshop designed to be manipulated with the Pro 3's stylus.
    • The Pro 3 starts at $799, albeit for an Intel Core i3 version; the Pro 2 (64GB model) was priced at $899 at launch time. Citing its form factor and display size, The Verge declares the Pro 3 is "designed to destroy the laptop."
    • Though no iPad-killer, the Surface Pro has carved out a niche among business users and enthusiasts – the ARM-based Surface RT has had a rougher time. IDC estimates Windows devices had just a 3.4% tablet share in 2013, but also thinks they'll eventually grab over a quarter of the commercial segment, aided by growing convertible demand.
    • Update: Microsoft says Core i5 Pro 3 models will be available on June 20. Other configurations will arrive in August.

  59. NFLX/Rookie – I think they are worth a toss but they've been hanging tough so far – I'd say it's a 50/50 trade (win/lose).  


  60. Phil / NFLX,

    In my paper account I have 10 NFLX Jun 305 P @ 2.2. Currently they are at 1.39. If I still believe in NFLX drop then which one is a good option (1) DD at 1.39 to have 20 NFLX Jun 305 P @ 1.79 (approx) or roll those 10 305 P to 10 Jun 320 P with approx same cost.

    Thanks.


  61. NFLX/Pat – I'd wait as they were very strong today in a weak market.  No sense throwing good money after bad if they are going to get over $370.  


  62. PSW
    Where do you guys go ( trusted source ) for high div payers for IRA's ?


  63. Phil//  Where do you see a bottom on the CLF?  I have the 2016 15/25 bcs and waiting to sell the 15 puts on it and also planning to roll the 15 to 13 to take advantage of the recent price drop in CLF.  Let me know if I should wait or proceed?  How badly do you expect the iron ore price dropping to affect CLF?  Thanks.


  64. UNP/pwright – my 'stop' is an alert I set at a specific level.. if the -close- is under my stop level, TOS sends me an email in the night and the next day I do whatever action.. (close, roll, add, whatever)..  this avoids getting stopped out with BS intraday spikes. often there is even a recovery the next  morning back over my stop and stays over through the day, so sometimes get a second chance to fail.


  65. Wombat — I assembled a portfolio of over 20 high yielding stocks which yield over 10% total and are selling for more than they cost in total. If you want the list, please post your e-mail.


  66. CRIS/Pharm – add more here or stand off?


  67. Bounced right off the 50d MA.  How telegraphed was that.


  68. CRIS/scott – stand.  I am selling calls in Sept against the stock


  69. zt / IRA
    lovely
    jj2010 at me dot com

    thanks !


  70. ztennis / IRA – Can you copy me in as well?  jjj310 at stern dot nyu dot edu

    Thanks!


  71. VIX still stuck in the mud.


  72. Heavy selling as TRIN is 1.7.


  73. ztennis,

    the list please at dufferin70@gmail.com…..thankyou


  74. ztennis, would also love a copy of that list if possible, pwright72 at yahoo dot com

    Thanks


  75. ztennis, could I get the list also at marx48@comcast.net


  76. ah aha ahaaha. sorry zt.


  77. CLF/Rookie – I saw a bottom at $15 and still do, usually below $18 we like to buy with puts that net out around there.  If China fails, things can get worse.  

    Volume was about 50% more than yesterday.  Still low but still the same pattern for down days having more volume.  

    Now we'll see what the Fed can do. 


  78. Wombat,

    If you didn't receive e-mail, post a good address.


  79. thanks zt, I got it


  80. rj_jarboe:

    Just saw your post. My wife and had to hop up to Denver today for a medical visit.

    To your question, we have had very little rain this year so far. Temps are starting to get up into the high 70's, which is warm for this time of year. I just don't want to see it get into the high 90's and low 100's like it did 2 years ago.  Colorado Springs never had a 100 degree day until June of 2012. And we then had 7 days in a row of 100+, then high winds and a spark.

    Hope your property is safe. I'm not sure un-treed land has a lot of value, especially these days.


  81. zt // picks
    pigeon received – thanks !


  82. zt // picks
    pigeon received – thanks !


  83. Is there a webinar replay link yet?


  84. ztennis/picks – please send to thegeneral91@gmail.com if possible.  thanks!


  85. unsold cars – my car-nut son found this…

    So…. Take a look at this, in response to the Zero Hedge article.
    http://jalopnik.com/that-zero-hedge-article-on-unsold-cars-is-bullshit-1578124255




  86. ZH / Scott – You have to read the articles on ZH with a heavy dose of scepticism nowadays due to their heavy bias. On data days, they post 10 articles on a miss and find excuses for good numbers. Hardly a reliable news outlet anymore. 


  87. From Bloomberg, May 21, 2014, 3:11:50 AM

    European stocks declined for a third
    day as investors awaited data on consumer confidence in the euro
    area. U.S. futures were little changed, while Asian shares fell.

    To read the entire article, go to http://bloom.bg/1jC1AEf
    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  88. From Bloomberg, May 20, 2014, 11:35:21 PM


    Former JPMorgan Chase & Co.’s China Investment Banking Chief Executive Officer Fang Fang. Photographer: Nelson Ching/Bloomberg

    Fang Fang, former chief executive
    officer for JPMorgan Chase & Co. (JPM)’s China investment bank, was
    arrested by Hong Kong’s anti-graft agency, Caixin reported,
    citing two people it didn’t identify.

    To read the entire article, go to http://bloom.bg/1jBFdyF
    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  89. From Bloomberg, May 20, 2014, 12:45:25 PM

    A former UBS AG (UBSN) banker told a London
    court that paying $7,100 for strippers to entertain consultants
    advising a German utility on a disputed derivatives deal didn’t
    create a conflict of interest.

    To read the entire article, go to http://bloom.bg/RRN0wk
    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  90. From Bloomberg, May 20, 2014, 7:01:00 PM

    May 20 (Bloomberg) — Swedish Finance Minister Anders Borg discusses Pfizer Inc.’s bid for AstraZeneca Plc.
    He speaks from Norrtaelje, Sweden, with Anna Edwards on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

    AstraZeneca Plc (AZN) got a boost from a
    long-time shareholder and one of its biggest institutional
    stockholders after other investors criticized the drugmaker for
    spurning Pfizer Inc.’s (PFE) 69-billion-pound ($117 billion) takeover
    offer.

    To read the entire article, go to http://bloom.bg/RRFEZS
    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  91. From Bloomberg, May 20, 2014, 6:00:01 PM

    May 21 (Bloomberg) — German Finance Minister Wolfgang Schaeuble speaks about European Central Bank policy and the Outright Monetary Transactions bond-buying plan.
    He spoke April 30 in Bielefeld, Germany. (This audio is in German. Source: Bloomberg)

    Lawmakers from Chancellor Angela Merkel’s party are criticizing European Central Bank policies as
    a German anti-euro party gains support before elections across
    Europe this week.

    To read the entire article, go to http://bloom.bg/1kmEYX8
    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  92. From Bloomberg, May 20, 2014, 7:01:00 PM

    Charlie Bean, deputy governor of the Bank of England. The challenge of how and when to remove stimulus is one that Bean won’t have to face, as he retires at the end of next month after a 14-year career at the BOE. Photographer: Chris Ratcliffe/Bloomberg

    Bank of England Deputy Governor
    Charlie Bean said policy makers face potential “potholes” when
    it comes to exiting the extraordinary stimulus measures they
    implemented during the recession, many of which put central
    banks into uncharted territory.

    To read the entire article, go to http://bloom.bg/RRZuUO
    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  93. From Bloomberg, May 21, 2014, 12:54:42 AM

    The Tea Party is pretty much over for
    the 2014 midterm elections, with the limited-government movement
    losing four of yesterday’s most closely watched races in
    Republican primaries from Georgia to Idaho.

    To read the entire article, go to http://bloom.bg/1jBSsiP
    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  94. From Bloomberg, May 21, 2014, 3:16:16 AM

    Hemp is woven into American history. George Washington grew it, and the nation’s first flags were made from it. It’s easily digestible and packs more protein than chia or flax. Source: Manitoba Harvest via Bloomberg

    Mike Fata figures hemp could be the
    perfect food — if only people would stop snickering.

    To read the entire article, go to http://bloom.bg/1kmWJFL
    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  95. From Bloomberg, May 20, 2014, 7:01:01 PM


    May 21 (Bloomberg) — German Finance Minister Wolfgang Schaeuble speaks about European Central Bank policy and the Outright Monetary Transactions bond-buying plan.
    He spoke April 30 in Bielefeld, Germany. (This audio is in German. Source: Bloomberg)

    New risks to financial stability
    could emerge from the combination of generous central bank
    policies and investors’ search for yield in a low-interest rate
    environment, Bundesbank board member Andreas Dombret said.

    To read the entire article, go to http://bloom.bg/RRIk9N
    Sent from the Bloomberg iPad application. Download the free application at http://itunes.apple.com/us/app/bloomberg-for-ipad/id364304764?mt=8


  96. From Bloomberg, May 21, 2014, 12:00:00 AM


    The Netflix Inc. website is displayed on laptop computers in Washington, D.C. Netflix’s expansion into western Europe’s most-populous nations is the most ambitious by Chief Executive Officer Reed Hastings since late 2011, when Netflix began streaming films and TV shows across Latin America and the Caribbean. Photographer: Andrew Harrer/Bloomberg

    Netflix Inc. (NFLX) will introduce its
    online video service this year in Germany, France and four other
    European countries, the company’s biggest expansion in almost
    three years.

    To read the entire article, go to http://bloom.bg/1jBJzpD
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  97. From Bloomberg, May 21, 2014, 2:30:52 AM


    May 20 (Bloomberg) — Manpreet Gill, Singapore-based senior investment strategist at Standard Chartered Plc’s wealth management unit, talks about political instability in Asia and the impact on the region’s markets.
    He speaks with Rishaad Salamat on Bloomberg Television’s “On the Move.” (Source: Bloomberg)

    Asian stocks fell for a fourth day,
    with the regional benchmark index heading for its longest losing
    streak since January, as the yen strengthened and the Bank of
    Japan
    refrained from adding to monetary stimulus.

    To read the entire article, go to http://bloom.bg/1kmWydG
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  98. From Bloomberg, May 21, 2014, 3:16:07 AM


    May 1 (Bloomberg) — Brad Hintz, an analyst at Sanford C. Bernstein & Co., talks about the consequences if the U.S. pursues criminal charges against Credit Suisse Group AG and BNP Paribas SA.
    Hintz speaks with Tom Keene, Adam Johnson, and Olivia Sterns on Bloomberg Television’s “Surveillance.” WPP Plc’s Martin Sorrell also speaks. (Source: Bloomberg)

    BNP Paribas SA (BNP) fell to a seven-month low in Paris on concern U.S. authorities will seek more than $5 billion from the bank to settle a probe into alleged violations of U.S. sanctions.

    To read the entire article, go to http://bloom.bg/1h6gD3e
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  99. From Bloomberg, May 20, 2014, 9:00:07 PM


    New York’s Superintendent of Financial Services Benjamin Lawsky. Photographer: Jin Lee/Bloomberg

    Credit Suisse Group AG (CSGN) emerged from a guilty plea this week relatively unscathed. The punishment that prosecutors are now holding over BNP Paribas SA (BNP)’s head could have more severe consequences.

    To read the entire article, go to http://bloom.bg/1jC06K1
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  100. From Bloomberg, May 20, 2014, 9:04:26 PM


    Swiss Finance Minister Eveline Widmer-Schlumpf. Photographer: Gianluca Colla/Bloomberg

    Credit Suisse Group AG (CSGN)’s $2.6 billion in penalties for helping Americans dodge taxes clears the way for other Swiss banks to resolve their own quarrels with the U.S., ending years of deadlock and uncertainty.

    To read the entire article, go to http://bloom.bg/1oQy27V
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  101. From Bloomberg, May 20, 2014, 4:00:00 PM

    Russian President Vladimir Putin, left, is greeted by Chinese President Xi Jinping before a group photo at the fourth Conference on Interaction and Confidence Building Measures in Asia summit in Shanghai, China. (AP Photo/Mark Ralston, Pool)

    The presidents of China and Russia failed to sign a $400 billion gas supply deal at a meeting yesterday in Shanghai, prolonging negotiations that started more than 10 years ago.

    To read the entire article, go to http://bloom.bg/RQZfcw
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  102. From Bloomberg, May 21, 2014, 1:22:41 AM

    Former Nidera NV Trader Lars Van der Laan, center, is seen holding a pencil as he worked on the floor of the European Option Exchange in Amsterdam in 2002. Van der Laan, 37, is now earning about 20 percent of what he used to as a power trader. Credit: Peter Hilz via Bloomberg

    Europe’s fivefold surge in wind and
    solar power generation in the past decade sent power prices to
    nine-year lows and Lars van der Laan to a new job as a kite-surfing instructor.

    To read the entire article, go to http://bloom.bg/1kmOIkh
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  103. From Bloomberg, May 20, 2014, 5:48:29 PM


    Laurence Fink, chief executive of BlackRock Inc., listens during a panel session on day four of the World Economic Forum in Davos, Switzerland, on Jan. 25, 2014. Photographer: Jason Alden/Bloomberg

    BlackRock Inc. (BLK)’s Chief Executive Officer Laurence D. Fink said the U.S. housing market is “structurally more unsound” today than before the financial crisis because it depends more on government-backed mortgage companies such as Fannie Mae and Freddie Mac.

    To read the entire article, go to http://bloom.bg/1kmCOqk
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  104. From Bloomberg, May 21, 2014, 3:38:39 AM

    May 20 (Bloomberg) — Manpreet Gill, Singapore-based senior investment strategist at Standard Chartered Plc’s wealth management unit, talks about political instability in Asia and the impact on the region’s markets.
    He speaks with Rishaad Salamat on Bloomberg Television’s “On the Move.” (Source: Bloomberg)

    European stocks fell for a third day
    while the yen rose to a three-month high after policy makers in
    Japan refrained from further economic stimulus. Crude oil
    climbed while nickel fell.

    To read the entire article, go to http://bloom.bg/1kmLTiX
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  105. From Bloomberg, May 21, 2014, 1:08:13 AM

    Gauges of business spending to consumer sentiment indicate the setback to the world’s third-biggest economy could be short-lived. Photographer: Tomohiro Ohsumi/Bloomberg

    Japan’s central bank refrained from
    boosting stimulus and raised its view of business investment as
    the economy shows signs of weathering the impact of the first
    sales-tax increase since 1997.

    To read the entire article, go to http://bloom.bg/1lDI8CB
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  106. From Bloomberg, May 21, 2014, 2:10:36 AM

    Treasury two-year yields were near
    the lowest level since March on expectations Federal Reserve
    minutes today will underscore that policy makers plan to keep
    their main interest rate down to support the economy.

    To read the entire article, go to http://bloom.bg/1jBlAGU
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  107. From Bloomberg, May 21, 2014, 1:33:23 AM

    Lenovo’s smartphone shipments jumped 63 percent in the period to 12.9 million units, researcher International Data Corp. reported last month. Photographer: Simon Dawson/Bloomberg

    Lenovo Group Ltd. (992), the world’s
    largest maker of personal computers, reported a 25 percent jump
    in fourth-quarter profit as its desktop models and mobile
    devices gained global market share.

    To read the entire article, go to http://bloom.bg/1jBNHWs
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  108. From Bloomberg, May 21, 2014, 2:07:01 AM


    Royal Thai Army soldiers keep watch from a military vehicle as traffic drives past in central Bangkok, Thailand. Photographer: Dario Pignatelli/Bloomberg

    Depending on whether you listen to
    Morgan Stanley or JPMorgan Chase & Co., the imposition of
    martial law in Thailand will either send the baht tumbling to
    levels last seen in 2006 or put an end to its losses.

    To read the entire article, go to http://bloom.bg/1o3YLOc
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  109. From Bloomberg, May 20, 2014, 4:00:00 PM


    An elderly man stands at the entrance to Jinshan park in Beijing on Jan. 30, 2012. China’s demographic is skewing toward an older population. Photographer: Ed Jones/AFP via Getty Images

    The Chinese name diseases based on symptoms, so diabetes is known as “sugary pee,” while a dyslexic “has trouble reading.” Dementia derives from two Chinese characters meaning “insane” and “idiotic.”

    To read the entire article, go to http://www.bloomberg.com/news/2014-05-20/-idiotic-name-for-dementia-sparks-china-doctors-protest.html
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  110. From Bloomberg, May 20, 2014, 7:16:18 PM


    May 13 (Bloomberg) — Ed Rogers, chief executive officer of Tokyo-based Rogers Investment Advisors, talks about Japan’s government policies and their impact on the nation’s stock market, and investment strategy.
    He speaks with Zeb Eckert on Bloomberg Television’s “First Up.” (Source: Bloomberg)

    Here are two things that are rare in Tokyo: Godzilla talks out his problems with other monsters peacefully, and Japan’s stocks trade at a discount to the U.S.

    To read the entire article, go to http://bloom.bg/1jAkAmo
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  111. From Bloomberg, May 20, 2014, 2:24:21 PM


    May 20 (Bloomberg) — Manpreet Gill, Singapore-based senior investment strategist at Standard Chartered Plc’s wealth management unit, talks about political instability in Asia and the impact on the region’s markets.
    He speaks with Rishaad Salamat on Bloomberg Television’s “On the Move.” (Source: Bloomberg)

    The six-month political crisis in
    Thailand that led the Army to impose martial law is severing the
    Bangkok stock market’s ties with the rest of Asia.

    To read the entire article, go to http://bloom.bg/1vBUX8F
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  112. From Bloomberg, May 20, 2014, 12:01:03 AM


    Janet Yellen, chair of the U.S. Federal Reserve, during a Financial Stability Oversight Council meeting with at the U.S. Treasury in Washington, D.C., on May 7, 2014. Photographer: Andrew Harrer/Bloomberg

    The year was 1999, the unemployment rate was 4.3 percent, and President Bill Clinton’s top economic adviser had a message for economists gathered at Yale University: Tight labor markets are beneficial for blacks, Hispanics and male high-school dropouts.

    To read the entire article, go to http://www.bloomberg.com/news/2014-05-20/yellen-adds-disadvantaged-to-full-employment-definition.html
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  113. Sent from Bloomberg for iPad

    Watch this video at http://bloom.bg/1i1iNkR

    Schaeuble Says Won’t Create Preconditions for OMT
    May 21 (Bloomberg) — German Finance Minister Wolfgang Schaeuble speaks about European Central Bank policy and the Outright Monetary Transactions bond-buying plan.
    He spoke April 30 in Bielefeld, Germany. (This audio is in German. Source: Bloomberg)

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  114. Sent from Bloomberg for iPad

    Watch this video at http://bloom.bg/1i1HopV

    Northern Trust’s Tannenbaum on China Economy, Fed
    May 21 (Bloomberg) — Carl Tannenbaum, chief economist at Northern Trust Corp. in Chicago, talks about China’s economy, banks and government policies.
    Tannenbaum also discusses China and Russia’s failure to sign a gas supply deal and Federal Reserve policy. He speaks in Hong Kong with Angie Lau on Bloomberg Television’s “First Up.” (Source: Bloomberg)

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  115. Sent from Bloomberg for iPad

    Watch this video at http://bloom.bg/1vCG6uK

    UBS’s Hatheway on Japan, Europe, U.S. Economies
    May 21 (Bloomberg) — Larry Hatheway, chief economist at UBS AG, talks about Japan, Europe and U.S. economies, central banks’ policies and currencies.
    He speaks with Angie Lau on Bloomberg Television’s “First Up.” (Source: Bloomberg)

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  116. Sent from Bloomberg for iPad

    Watch this video at http://bloom.bg/1m2N1Io

    Europe Is Still Not Out of the Woods: Gudin
    May 21 (Bloomberg) –- Barclays Chief European Economist Philippe Gudin discusses Europe’s economic recovery, the risks in the markets and why he says it’s not going to be easy. He speaks to Anna Edwards on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

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  117. Sent from Bloomberg for iPad

    Watch this video at http://bloom.bg/1hZR8AQ

    Bank Prosecutions Are ‘Dangerous Road’
    May 20: Jacob Frenkel, a former federal prosecutor who is now a partner at Shulman Rogers Gandal Pordy & Ecker, talks about Credit Suisse Group AG’s guilty plea to a U.S. criminal charge and its potential impact on the banking industry.

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  118. From Bloomberg, May 20, 2014, 9:43:40 PM


    May 15 (Bloomberg) — Paul Sheard, chief global economist at Standard & Poor’s, talks about Japan’s economy, government and central bank policies.
    Japan’s economy grew at the fastest pace since 2011 in the first quarter as companies stepped up investment and consumers splurged before the first sales-tax rise in 17 years last month. Sheard also discusses the outlook for the global economy. He speaks from Tokyo with John Dawson on Bloomberg Television’s “First Up.” (Source: Bloomberg)

    Japan’s trade deficit shrank in April as imports rose the least in 16 months after the first sales-tax increase in 17 years crimped consumer spending.

    To read the entire article, go to http://bloom.bg/1kmUZfC
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  119. From Bloomberg, May 20, 2014, 10:19:30 PM


    On the same day, Walters said he sees unemployment rising, the currency too high and the budget weighing on growth, while recognizing “something will have to change” to prompt the RBA to overcome its reluctance to lower rates again. Photographer: Brendon Thorne/Bloomberg

    And then there were three: Goldman
    Sachs Group Inc., JPMorgan Chase & Co. and Macquarie Group Ltd.
    are sticking to bets the Reserve Bank of Australia will resume
    lowering interest rates as others ditch their rate-cut calls.

    To read the entire article, go to http://bloom.bg/1j5i8yD
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  120. From Bloomberg, May 20, 2014, 5:15:04 PM


    May 20 (Bloomberg) — Federal Reserve Bank of New York President William Dudley talks about the outlook for U.S. economic growth and the impact on monetary policy.
    Dudley, speaking to the New York Association for Business Economics, said the pace of eventual interest rate increases “will probably be relatively slow,” depending on the economy’s progress and how financial markets react. (Source: Bloomberg)

    Federal Reserve Bank of New York President William Dudley said the pace of eventual interest rate increases “will probably be relatively slow,” depending on the economy’s progress and how financial markets react.

    To read the entire article, go to http://bloom.bg/RRNbI3
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  121. From Bloomberg, May 20, 2014, 6:39:27 PM

    Sure, China’s growing — but not so fast. Photographer: Brent Lewin/Bloomberg

      In a recent round of conferences about the so-called emerging-market economies, I often found myself at odds with other analysts and had to keep making the same points repeatedly. To save time in the future, here they are:

      To read the entire article, go to http://bv.ms/1oczxuB
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  122. From Bloomberg, May 20, 2014, 2:42:55 PM

    Roman Abramovich and ex-wife Irina in 2004. Photographer: Nicolas Asfouri/AFP/Getty Images

    The $4.5 billion divorce settlement Elena Rybolovleva has obtained from her husband, Dmitry Rybolovlev, may be the biggest in history — it certainly is in Switzerland, where a court ordered the payout — but Rybolovleva had to sweat for it. Her relentless eight-year hunt for the potash billionaire’s assets took her all over the world. She was even arrested in Cyprus and accused of stealing a $25 million ring, then freed after she proved it had been made to measure for her.

    To read the entire article, go to http://bv.ms/1sQBOf2
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  123. From Bloomberg, May 20, 2014, 12:40:03 PM

    Wait, there’s a driver? Photographer: Junko Kimura-Matsumoto/Bloomberg

    Over the last 40 years, cars on the U.S. market have gained about 100 horsepower on average, while simultaneously improving fuel economy by 10 miles per gallon and adding previously unimaginable creature comforts, reliability and safety features. But compared to the advances in computing and communications over the same period, the car’s impressive engineering accomplishments seem pretty pedestrian. As the term “disruption” is increasingly thrown around, the reality that the car hasn’t fundamentally changed in a century seems to be weighing on the minds of many. A wave of public and political enthusiasm for all kinds of electric car projects, beginning in the mid-2000s and culminating in the market’s messianic fervor for Tesla, was the first sign of this great expectation.

    To read the entire article, go to http://bv.ms/1obsiD0
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  124. From Bloomberg, May 20, 2014, 12:04:19 PM

    That DirecTV logo looks like money to AT&T. Photographer: Paul Taggart/Bloomberg

    Just when you thought the information infrastructure industry in America couldn’t be consolidated any further, AT&T has announced another merger. It’s one more megadeal that promises to provide the giant carrier with more opportunities to increase its profits, while not moving the country any closer to being competitive on the global informational stage. We can do better.

    To read the entire article, go to http://bv.ms/1obk8L2
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  125. Global shares lean higher

    05:45 AM ET

    • Asian shares are mixed but European equities and U.S. stock futures are mostly higher on a day packed with central-bank action.
    • The BOJ left its interest rates and aggressive easing as is, after which Governor Haruhiko Kuroda indicated that he doesn’t see much need for further stimulus anytime soon.
    • BOE minutes took on a hawkish tone, signalling that some policy makers are nearing the point they’ll vote for a rate rise.
    • Later today, FOMC minutes are due to be released while Janet Yellen is scheduled to speak.
    • Japan -0.2%, Hong Kong +0.15%, China +0.8%, India -0.6%.
    • Euro Stoxx 600 +0.1%, London -0.1%, Paris +0.1%, Frankfurt +0.2%, Milan +0.3%, Madrid flat.
    • U.S. stock futures: Dow +0.3%. S&P +0.3%. Nasdaq +0.3%.


  126. More on BOE: Some members nearing vote to raise rates

    05:25 AM ET · FXB

    • The BOE’s minutes take on a bit of a more hawkish tone, indicating that some policy makers are moving closer to voting for an increase in interest rates, although all of them first want the slack in the U.K. economy to ease.
    • The minutes come after BOE Governor Mark Carney said last week that the economy had “edged closer” to a need for a rate rise. He has also identified the housing market, where prices have been rising sharply, as a major threat to stability.
    • The pound is +0.4% at $1.6913, while the FTSE is +0.1%. (PR)
    • Previous coverage
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK


  127. U.K. retail sales jump at fast rate in 10 years

    04:42 AM ET · FXB

    • U.K. retail sales grew at the fast rate since May 2004 in April, jumping +6.9% on year vs +4.8% in March and beating consensus of +5.2.
    • On month, sales +1.3% vs +0.5% and consensus that was also +0.5%.
    • Excluding fuel, sales +1.8% vs +0.1% and +0.5%; on year, sales +7.7% vs +4.9% and +5.3%.
    • While the U.K. government will probably welcome the figures, the data may place a doubt on hopes of shifting the economy away from consumption. (PR)
    • Meanwhile, the Bank of England’s Monetary Policy Committee voted unanimously, as expected, to keep interest rates at 0.5% and against more quantitative easing at a meeting earlier this month, the minutes of the meeting show. (PR)
    • The pound jumps and is +0.4% at $1.6913, while the FTSE is -0.2%.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK


  128. China launches trial program for local government bonds

    04:24 AM ET · FXI

    • China will allow 10 local governments – including in Shanghai and Beijing – to sell bonds as part of a pilot scheme as the government looks to clean up an estimated $3T of public debt.
    • Until now, municipalities weren’t allowed to borrow, so the central government would do it for them, or they would use opaque vehicles that would take loans on their behalf. That has created uncertainty about the size of the debt and the soundness of municipal finances.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, CYB, CNY, DSUM, YANG, MCHI, XPP, YAO, YXI, FXCH, CHXF, FCA, CHLC, TCHI, CN


  129. Google needs up to $30B of overseas funds for acquisitions

    03:19 AM ET · GOOG

    • Google (GOOG, GOOGL) needs $20-30B of its foreign earnings to finance acquisitions, which is why it had parked $35B abroad as at the end of March.
    • The search giant also plans to use $2-4B for capex and $12-14B for an R&D cost-sharing agreement.
    • Google made the disclosures in a December letter to regulators that it published yesterday. The letter comes amid controversy about how U.S. corporations keep large funds overseas in order to avoid U.S. taxes.
    • In addition, Google revealed that it passed on a $4-5B acquisition deal for a foreign company in late 2013, although it didn’t provide the name of the target.


  130. Wednesday’s economic calendar

    12:00 AM ET


  131. EPA rule on fish kills at plants angers environmentalists, pleases utilities

    Yesterday, 07:15 PM ET · ETR

    • Environmentalists are angry at the Obama administration’s scaled-back regulation meant to keep fish from being sucked into the water intakes of factories and power plants.
    • The EPA regulation issued yesterday specified a range of at least seven options facility operators can use to reduce the 2B fish, crab or shrimp that die each year in water intakes, but critics say the agency left too many decisions with state regulators and are threatening to sue to force tougher action.
    • Power companies operating large coal or nuclear plants such as Entergy (ETR), Exelon (EXC), Duke Energy (DUK) and Dominion (D) had urged the EPA to grant flexibility and time to meet the water-intake standards, and generally were satisfied with the outcome.
    • ETFs: XLU, IDU, VPU, UPW, RYU, FUTY, PUI, FXU, SDP, PSCU, UTLT


  132. Bakken crude safe for rail transport, industry group says

    Yesterday, 06:58 PM ET · CLR

    • Bakken crude oil is similar to other North American light, sweet grades and does not pose a greater rail transportation risk than other transportation fuels, according to a report compiled for a North Dakota energy producers lobby group.
    • The study shows Bakken crude is more volatile than heavier oils such as from Canada’s tar sands, but is similar to light crudes produced elsewhere in the U.S., with characteristics that fall well within the margin of safety for the current tank car fleet.
    • The oil producers’ study follows a report with similar results issued last week by a refining industry group.
    • Among Bakken producers: CLR, EOG, WLL, HES, KOG, OAS, NOG, EOX, MRO.


  133. Cisco’s Chambers predicts IT shakeout as new products launched

    Yesterday, 06:56 PM ET · CSCO

    • “If you look at the top companies in the industry, most of them will not exist in a meaningful way in 10 years … You’re going to see a brutal, brutal consolidation of the IT industry where out of the top five players, only two or three of us will be meaningful in as quick as five years” states John Chambers at his Cisco Live (CSCO) conference keynote.
    • Chambers notes two fellow IT giants, IBM and H-P, have seen negative revenue growth in a majority of their quarters since 2011; Cisco, of course, has had its own top-line issues as of late. He predicts smaller vendors (e.g. Juniper, F5, Riverbed) will get squeezed between Cisco (naturally) and the white-label OEMs (beloved by Web/cloud firms) he considers company’s biggest threat.
    • The remarks come as Cisco shows off new personal videoconferencing systems – the DX70 and DX80 – that go for $1K-$2K apiece, as well as new services and partners for its InterCloud platform, which aims to enable interconnected cloud services from dozens of service provider partners (rather than Cisco itself).
    • Cisco has promised to invest $1B over the next two years in InterCloud, as it tries to make up lost time in a market featuring aggressive pricing and a long list of rivals that include Amazon, Microsoft, and IBM. New partners include NetApp and Accenture.
    • The DX70/80 have won praise for their sleek, minimalist hardware (shades of Apple) and streamlined UI, but critics also scoff at their premium pricing. Videoconferencing weakness led Cisco’s collaboration revenue to fall 12% Y/Y in FQ3; orders (boosted by WebEx) grew 4%.


  134. Seagate upsizes debt offering to $1B, sets pricing

    Yesterday, 06:08 PM ET · STX

    • Seagate (STX) has doubled the size of an offering of senior notes due 2025 to $1B, and priced them at 4.75%.
    • The hard drive giant notes potential proceeds include paying down existing debt. It had $3.5B in debt at the end of FQ3, and $2.3B in cash/investments.
    • Seagate sold $800M worth of debt last October. Aggressive buybacks have contributed to the company’s financing efforts.


  135. Bloomberg: Encana CEO surprises with makeover in one year

    Yesterday, 05:59 PM ET · ECA

    • Encana (ECA) shares have climbed by a third since Doug Settles became CEO in June, and his makeover of the company is proceeding faster than planned, Bloomberg says in a profile of Canada’s largest gas producer.
    • Settles “took the hard medicine up front” – including plans to fire ~20% of the workforce and lower the dividend 35% to cut costs and boost profits – and the company is now on a “good path,” says TD analyst Craig Bethune.
    • “The company’s new strategy is taking shape,” says RBC’s Matthew Kolodzie, pointing to the acquisition of Texas shale lands from Freeport McMoRan that will double ECA’s crude output and immediately deliver cash, as well as the repayment of maturing bonds earlier this year.
    • ECA still has to prove it can drill to expand production like its U.S. peer EOG Resources, which transitioned away from gas earlier, Bethune says.


  136. Overseas

    06:00 AM ET

    • Japan -0.24%.
    • Hong Kong +0.01%.
    • China +0.84%.
    • India -0.37%.
    • London -0.16%.
    • Paris +0.07%.
    • Frankfurt +0.27%.


  137. Liquidmetal amends sub-license deal with Visser Precision

    Yesterday, 04:58 PM ET · LQMT

    • Liquidmetal’s (LQMT) amended sub-license agreement with Visser Precision free the former from its commitment to use Visser as its exclusive contract manufacturer, and frees the latter from having to use Liquidmetal as its exclusive sales/R&D channel.
    • The company have also “agreed to dismiss their private arbitration and have settled and released all claims and disputes between them.”
    • Liquidmetal asserts the deal will allow it to “enter into contracts with other manufacturers to serve a broad array of specialized industries and geographies.” Visser will maintain “a license to the full portfolio of technology developed by Liquidmetal that exists as of the date of the agreement.”
    • Previous: Liquidmetal falls after posting Q1 results


  138. Hercules Offshore signs $420M contract with Maersk for newbuild jackup rig

    Yesterday, 04:54 PM ET · HERO

    • Hercules Offshore (HERO) +5.7% AH after announcing a five-year drilling contract with Maersk Oil for a newbuild jackup rig in a deal valued at ~$420M.
    • HERO says the contract expands its operational footprint to the North Sea with a leading operator in the region; given the unique enhancements required for the rig in developing the field, HERO expects demand for the rig to extend well beyond the initial five-year fixed term.
    • HERO also signs a construction contract with Jurong Shipyard for a high specification, harsh environment rig in a deal valued at ~$270M.


  139. Intuit -3.4% AH on soft FQ4 guidance

    Yesterday, 04:48 PM ET · INTU

    • Intuit (INTU) expects FQ4 revenue of $683M-$713M and EPS of $0.06-$0.08, largely below a consensus of $712.2M and $0.12.
    • The company met revenue estimates for seasonally huge FQ3 (set to account for over half of FY14 revenue) on the back of a 14% Y/Y increase in TurboTax Online units for tax season, and a 60K Q/Q increase in QuickBooks Online subs to 624K (+36% Y/Y).
    • Total product revenue rose 15% Y/Y to $735M, and service/other revenue 14% to $1.65B. Small business revenue +8%, consumer +13%, professional tax +32%.
    • Costs/expenses grew 11% to $894M, with sales/marketing spend rising 7% to $412M.
    • FQ3 results, PR


  140. Southern Copper sees 2014 copper output up nearly 20%

    Yesterday, 04:40 PM ET · SCCO

    • Southern Copper (SCCO) says it expects its copper output to rise 19.4% to ~800K metric tons this year as a new leach plant in Mexico boosts capacity.
    • SCCO also expects construction of the $1B Tia Maria copper mine in southern Peru to begin in H2 2014 after the government approves a key permit.
    • CEO Oscar Gonzalez says the company sent the Peruvian government’s environmental impact study for Tia Maria yesterday, and the government review is due within 30 days.
    • SCCO has said Tia Maria should produce 120K metric tons/year of copper vs. total company output of 670K last year.


  141. ETF portfolio manager tied to selloff

    Yesterday, 04:37 PM ET · SPY

    • Chicago-based Good Harbor Financial is among the largest ETF portfolio managers and the company in May began to rebalance its $11B U.S. Tactical Core Strategy twice a month instead of once – today marks the first mid-month trade for the portfolio, reports the WSJ.
    • Good Harbor’s main strategy today, says the Journal, looked to be selling small caps as well as two ETFs tied to the S&P 500 (SPY -0.7%), and volume spiked in the iShares Russell 2000 ETF (IWM -1.6%), the ProShares Ultra Russell 2000 (UWM -3%), the iShares Core S&P 500 ETF (IVV -0.7%) and the ProShares Ultra S&P 500 (SSO -1.5%).
    • Good Harbors was the largest single holder of three of those funds as of the end of March, and the 2nd largest holder of the fourth.
    • As it sold the equity ETFs, Good Harbors appeared to be buying two mid-to-long-dated Treasury bond ETFs, the iShares 7-10 Year Treasury Bond Fund (IEF +0.3%) and the ProShares Ultra 7-10 Year Treasury ETF (UST +0.7%), with both having volumes many multiples higher than normal.
    • Good Harbors was also a seller of small caps and a buyer of Treasurys in early May, says the Journal, which earlier this year reported traders growing accustomed to waiting for the firm’s monthly rebalance.
    • ETFs: IWM, IJS, TZA, TNA, UWM, VB, IJR, SLY, EES, VBR, RWJ, VBK, URTY, SCHA, TWM, IWO, IWN, IJT, RWM, SRTY, DWAS, SAA, VTWO, JKL, RZV, SLYG, SLYV, VIOO, SDD, SBB, RZG, JKJ, RSCO, VTWG, UKK, VIOG, TILT, FYX, FNDA, VIOV, XSLV, FYT, SKK, JKK, EWRS, TWOK, PXSV, VTWV, SMLV, UVT, SJH, PXSC, IESM, FYC, VLU, PXSG


  142. Stocks fall as retailers’ weak Q1 results, Plosser comments weigh

    Yesterday, 04:25 PM ET

    • Stocks fell broadly, with retail and smallcap sectors leading the way following several disappointing quarterly earnings from retailers, suggesting that consumers don’t want to spend.
    • The retail sector was under pressure after Dick’s Sporting Goods (-18%), Staples (-12.5%), TJX (-7.6%) and Urban Outfitters (-8.8%) all fell short of expectations; Home Depot (+1.9%) also came in below consensus, but shares rose as upbeat comments from management overshadowed the earnings miss.
    • Today’s comments from Fed officials get some of the blame: Philly Fed’s Prosser said a stronger U.S. economy during H2 and into next year may require the Fed to begin raising rates sooner rather than later, while NY Fed’s Dudley said the Fed would take its time hiking rates.
    • Caterpillar (-3.6%) was the Dow’s biggest loser after posting soft global retail machinery sales for the three months through April.
    • The Russell 2000 index slid 1.2% after climbing 1.7% over the previous two sessions; the index is now 8.9% below its March 4 record.
    • The weakness in stocks helped support Treasurys; the yield on the 10-year note slipped to 2.509%, just above the near seven-month low of 2.502% where it settled on Thursday.


  143. Dudley: FOMC to give wide berth to stocks as it hikes

    Yesterday, 03:19 PM ET · SHY

    • The third mandate: It looks like it’s up to buyers and sellers of financial assets when it comes to how quickly the Fed moves when it begins its rate hike cycle. FRBNY chief Bill Dudley says the FOMC will keep a close eye on markets as rates move up. If the response is relatively mild – like the way the bond market has treated the taper – than the Fed may move quicker. If markets tank, than slower.
    • ETFs: SHY, BIL, SHV, VGSH, SCHO, SST, TUZ, DTUS, DTUL, IEF, PST, IEI, TYO, DTYS, UST, TBX, VGIT, GSY, SCHR, ITE, DTYL, TYD, TBZ, FIVZ, DFVL, DFVS, TYNS


  144. Germany claims concrete evidence of forex-rigging

    Yesterday, 02:54 PM ET · XLF

    • “Multiple currencies” have been subject to attempted manipulation, says Raimund Roseler, head of banking supervision at Germany’s BaFin. Those targeted tended to be the smaller currencies as opposed to large ones like the dollar and euro, he adds.
    • The news comes on the same day the EU charged three banks for anti-competitive behavior in interest rates and one day after Credit Suisse plead guilty to U.S. charges of tax evasion. Two months back, Swiss competition watchdog Weko became the first regulator to claim it had spotted illegal activity in currencies.
    • “We see continued deterioration of the litigation environment especially in the U.S.,” said Deutsche Bank CFO Stefan Krause yesterday. Indeed.
    • Previously: EU charges trio of banks over rate-rigging
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, PFI, FXO, FNCL, KBWB, FINU, KCE, RWW, RYF, PSCF, FINZ, KBWC


  145. SPY 5 MINUTEGood morning!

    The Futures are up a bit this morning in "good" retail data out of UK (mostly rising fuel costs) but don't forget their house prices are rising 20% a year so they are using homes as piggy banks – a process that ended so well for us…

    Going by the news above, I'd say "mixed" at best.  Oil shot up to $103.25 on the API Report last night, which showed a 10.3Mb draw in crude.  That seems extremely unrealistic, of course but how fortunate the timing for traders looking to roll out the last of their June barrels today!  

    This is good for us with oil still $103.15 (/CLN4 – July) this morning as we can short and there's almost no possible way the 10:30 EPI Report won't be disappointing now that expectations have been set so high.  

    SPY DAILYShanghai gained almost 1% but Hang Seng was flat and Shanghai was very strange – after falling to 1,991 at the open, it shot up to 2,015 in a massive one-hour rally, then went dead flat until an hour before the close,  when it popped to 2,025 or, to summarize, fake, Fake, FAKE!   Japan, India and Singapore were all down 0.25%.  

    Moody's Cuts View on China Property Sector

    Moody's Investors Service revised its outlook for China's property industry to negative, after holding it at stable for about a year and a half.

    China property slowdown spells trouble for Asia bondsInvesting in Chinese developers becoming iffyIn May Central China Real Estate, one of the Chinese mainland’s many property developers, proposed issuing Singapore dollar-denominated notes, to refinance a convertible bond due in August.

    South Korean Ships Fire Warning Shots At North Korean Vessels Near The DMZ.

    INDU DAILYEurope had a crappy open but is now flattish.  

    European bonds signaling troubleThe quick move higher in the yields of Europe's weakest sovereigns from historic lows may be just the beginning and on the edges it could start to affect other low-rated credits where investors have hunted for yield—such as U.S. junk bonds.

    • U.K. retail sales grew at the quickest rate since May 2004 in April, jumping +6.9% on year vs +4.8% in March and beating consensus of +5.2.
    • On month, sales +1.3% vs +0.5% and consensus that was also +0.5%.
    • Excluding fuel, sales +1.8% vs +0.1% and +0.5%; on year, sales +7.7% vs +4.9% and +5.3%.
    • While the U.K. government will probably welcome the figures, the data may place a doubt on hopes of shifting the economy away from consumption. (PR)
    • Meanwhile, the Bank of England's Monetary Policy Committee voted unanimously, as expected, to keep interest rates at 0.5% and against more quantitative easing at a meeting earlier this month, the minutes of the meeting show. (PR)
    • The pound jumps and is +0.4% at $1.6913, while the FTSE is -0.2%.

    Socialist-Motion Trainwreck: France Mistakenly Orders 2,000 Trains Which Are Too Wide For Its Platforms.

    Russian Army Starts Withdrawing as Medvedev Sees Cold WarRussia said its troops are pulling back from Ukraine’s border, as Prime Minister Dmitry Medvedev warned the U.S. and the European Union they risk provoking a new Cold War. Ukraine and the U.S. said they haven’t yet seen signs of the pullback reported by Russian state TV, which said yesterday that soldiers in three Russian regions bordering Ukraine have started to return to their bases. ?

    SPX WEEKLYWe're nowhere near our bounce lines (16,520, 1,879, 4,150, 10,600 and 1,120) so not much else to do this morning but wait and see how things resolve themselves, though I still think we have more of a drop to come.  The Fed is a huge wild card today, with 4 Fed speakers from 10-2 and then the minutes.  

    How low can they go?  MBA Mortgage Applications:
    • Composite Index: +0.9% vs. +3.6% last week.
    • Purchase Index:   -3.0% vs. -1.0% last week.
    • Refinance Index:  +4.0% vs. +7.0% last week.

    Charles Plosser thinks there’s a ticking time bomb at the FedThe way Charles Plosser sees it, the Federal Reserve is sitting on a ticking time bomb that could severely damage the economy unless the central bank reacts quickly to defuse the looming threat.

    Dudley: Some Pockets In Financial Markets “Are Concerning”. Dudley on whether there are any bubbles in the financial markets: “Well we look at the financial issues all the time to asset whether the current level interest rates is going to generate excesses in financial markets. Excesses that we need to be concerned about in terms of financial stability. I would say there are pockets that are concerning. Leverage loan markets for example are quite frothy.

     

    Flash crash could come at any time: Bill Fleckenstein. (video)

    BlackRock’s Fink Says Housing Structure More Unsound NowBlackRock Inc. (BLK)’s Chief Executive Officer Laurence D. Fink said the U.S. housing market is “structurally more unsound” today than before the financial crisis because it depends more on government-backed mortgage companies such as Fannie Mae and Freddie Mac. “We’re more dependent on Fannie and Freddie than we were before the crisis,” Fink said today at a conference held by the Investment Company Institute in Washington, noting that he was one of the first Freddie Mac bond traders on Wall Street. 

    Investor Demand High as Fannie Mae Sets Price Range for Risky Mortgage Securities. Investors Say Fannie Lowers Yields on Offering From Initial Discussions. The latest place where investors are taking on more risk in exchange for apparently meager returns: the U.S. housing market. Bond buyers on Tuesday jockeyed to get a piece of $1.6 billion of riskier Fannie Mae securities, enabling the government-backed mortgage company to twice cut the yields it offered on the debt. The offering is Fannie's third sale of so-called risk-sharing certificates that enlist investors to pay for… ?

     

    Debt Rises in Leveraged Buyouts Despite Warnings. Regulators Urge Banks to Avoid Financing High Levels of Debt. Wall Street banks are financing more private-equity takeovers with high levels of debt, despite warnings by regulators to reduce the amount of risky loans they make. The Federal Reserve and the Office of the Comptroller of the Currency last year issued guidance urging banks to avoid financing leveraged buyouts in most industries that would put debt on a company of more than six times its earnings before interest, taxes, depreciation and amortization, or Ebitda. The Fed and the OCC also told banks to limit borrowing… 

    Credit Mania Update – The Chase for CCC-Rated Bonds. (graph)

    Hedge fund exit requests rise to five month high in MayDemand to pull out money from hedge funds rose to five month high in May as investors looked to adjust their portfolios ahead of the mid-year point.

    Hedge funds wrongfooted by choppy marketsIt was meant to be the year of the hedge fund. After near indiscriminate gains for shares in 2013, the choppier markets of this year were hailed as the perfect conditions for the specialist and skilled active fund manager. It has not turned out that way.

    Copper Mining Squeezed by Water Supply

    Freeport-McMoRan, one of the world's top copper miners, has invested heavily to secure access to water as copper prices have fallen 32% from highs in 2011.

    Online Gambling Suffers Setback

    The group representing the U.S. casino industry has dropped its support for legalizing online gambling, citing a nasty split among the major casino operators over the issue

    • Lowe's (LOW) reports comparable-store sales increased 0.9% in FQ1. The mark was well-below the 3.3% comp Home Depot delivered for a similar period.
    • The company improved its gross margin rate by 70 bps to 35.5% during the period.
    • Sales in May have shown some acceleration, according to execs.
    • LOW +2.2% premarket

    Cisco(CSCO) CEO: 'Brutal' Times Are Coming For The Tech IndustryCisco CEO and walking global economic barometer John Chambers believes that the rapid pace of change in the technology industry is going to create a bloodbath for the major tech players, and every other company on the planet.

    Google(GOOG) Overtakes Apple(AAPL) As The World's Most Valuable Brand.

    FBI Director Says He's Having Trouble Recruiting Techies Because They're All Stoners?

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