Archive

December 26th, 2014

Tyler Durden's picture

Why S&P 500 Revenue And EPS Forecasts Were Just Slashed By One Third





Less than three months ago, on September 30, 2014, "consensus" expected that EPS and revenue growth in 2015 would be 11.8% and 4.3% respectively. As of December 19 those projected growth rates have plunged to 7.9% and 2.8%. In other words, both revenue and EPS growth has been slashed by one third in under one quarter. Why? Spotting the "odd one out" in the charts below should provide the answer.

 

Tyler Durden's picture

"The Interview" Set To Become Most Pirated Movie Of 2014





According to KickassTorrents (KAT), which is now the world’s most popular website to download torrents, showed that the number of downloads for “The Interview” surpassed 1 million on early Friday. The tally includes copies which were later deleted due to copyright infringement claims but does not include downloads through other file-sharing services. The figure puts “The Interview” on track to become one of the most pirated movies of the year.

 

Tyler Durden's picture

Belarus President Tells "Retailers, Money-Grabbers And Thieves" That Capital Controls "Will Remain Forever"





"I was told, and saw it for myself, that some of our scoundrel-officials have been telling entrepreneurs, businessmen and all sorts of thieves that they should wait until around (January) 9th or 15th, everything will be liberalized here, and they would be able to get what they have not until now. People are simply begging to be you know where. I want to say that the trend, as is fashionable to say nowadays, towards control over domestic prices will remain forever. Retailers, middlemen, money-grabbers and thieves working in this sector have become the richest people in our country."

- Belarus President Alexander Lukashenko

 

Tyler Durden's picture

Ukraine Cuts Power To Crimea Again, Halts Train Services





There was some expectation following the loud public response following Ukraine's shut down of power to Crimea on Christmas Eve, that Kiev would treat the territory which it alleges is still part of Ukraine as, well, part of Ukraine. And sure enough, a few hours after the regionwide blackout was first reported, Ukraine restored power. Until today, when moments ago we learned that not only did Ukraine cut off electricity to Crimea earlier today, but also halted train services, moves which, according to the WSJ, could raise tensions with Russia, but which also will harden the local popluation's pro-Russian determination even further. Crimea’s Fuel and Energy Minister Sergei Egorov told Russia’s Interfax news agency that power was cut off at 1:50 p.m. Friday without warning. He said backup diesel generators and mobile turbine power plants were supplying critical infrastructure with electricity.

 

Tyler Durden's picture

Nat Gas Tumbles Below $3 For The First Time Since 2012, Plunges 30% In 2014





For the past few months, the one silver lining to the energy complex - with crude oil plummeting to levels not seen since 2009 - was nat gas, which soared to the mid-$4s in early November on expectations of a brutal polar vortex for the second year in a row sending heating demand surging. Well, so far the "harsh" weather, which was blamed for the epic collapse in the US economy in Q1 has not materialized, and all those buyers of natgas contracts have been scrambling to sell all of their exposure afraid they may suffer the same fate as their crude trading brethren. End result: as of moments ago, nat gas finally slide under $3, the first time it has done so since 2012!

 

Tyler Durden's picture

Blackrock Stunner: S&P 500 Profits Are 86% Higher Than They Would Be Without Accounting Fudges





"It becomes tempting to take on too much leverage, use financial wizardry to reward shareholders or even stretch accounting principles. S&P 500 profits are 86% higher than they would be if accounting standards of the national accounts were used, Pelham Smithers Associates notes. And the gap between the two measures is widening, the research firm finds." - Blackrock

 

Tyler Durden's picture

Game Over Japan: Real Wages Crash Most In 21st Century, Savings Rate Turns Negative





After two years of economic torture and financial destruction, Abenomics has finally claimed the Keynesian prize: real wages crash 4.3%, the most in the 21st century, and Japan's legendary savings rate, which peaked at 23% in 1975, just turned negative for the first time ever. Game over Japan.

 

Tyler Durden's picture

Putin Signs New Military Doctrine: Names NATO, US As Main Foreign Threat; Test Fires New ICBM





Last week, after the unanimous passage of the Ukraine Freedom Support Act of 2014 in Congress we wrote that "World Awaits Russian Response As Obama Makes "Lethal Aid" To Ukraine Legal." We didn't have long to wait: one short hour ago, Putin adopted an updated version of its military doctrine, which "reflects the emergence of new threats against its national security" and which names both the NATO military buildup on Russia's borders, as well as the US and the destabilized situation in some regions (read Ukraine) as the main foreign threats to Russian security. The doctrine update also, for the first time, put protection of Russian national interest in the Arctic (read oil and nat gas) among the key priorities for Russia's armed forces. In other words, Putin is not only not backing down, but has once again explicitly warned NATO that any western action, either in Ukraine or elsewhere, will have a proportional response.

 

Pivotfarm's picture

Weak Japanese numbers, OIL volatility, and retail sales confusion





An expected quite trading session is turning into an interesting mix of bad economic data, oil production concern in Libya, and disconnect on US retail sales

 

Tyler Durden's picture

China To Launch Yuan Swap Trading With Russian Rubles On Monday





Iit was only this week that Bloomberg reported that "China Offers Russia Help With Currency Swap Suggestion." But in order to fully backstop Russia away from a SWIFT-world in which the dollar reigns supreme, one extra step was necessary: the launching of direct FX trade involving the Russian and Chinese currencies, either spot or forward - a move away from purely theoretical bilateral FX trade agreements - which would not only enable and make direct currency trading more efficient by sidestepping the dollar entirely, but also allow Russian companies to budget in Chinese Yuan terms. It is no surprise then that this is precisely the missing step that was announced overnight, and will be implemented starting Monday.

 

Tyler Durden's picture

Frontrunning: December 26





  • Japan inflation slows to 14 month low, output slips (Reuters)
  • Russia says ruble crisis over as reserves dive, inflation climbs (Reuters)
  • Ruble rebounds sharply from lows as exporters sell dollars (Reuters)
  • Xbox, PlayStation Networks Attacked, Hackers Claim Credit (BBG)
  • Sony’s ‘The Interview’ Packs Theaters Without Violence (BBG)
  • Oil edges above $60 as Libyan output slumps (Reuters)
  • Shoppers’ Late Rush Gives Hope to Retailers (WSJ)
  • Japan says close to deal with South Korea and U.S. on North Korea defense (Reuters)
  • NYPD Arrests Seven for Threats After Slayings of Officers (BBG)
 

Tyler Durden's picture

Chinese Stocks Soar To 4 Year High On Stimulus Hopes As Japan's Economy Implodes; US Futures Rebound





One group of Federal workers that is definitely not taking the day off, is the trading desk located on the 9th floor of the New York Fed, responsible for such things as preserving the "fair" value of the bond and the stock market and avoiding any sharp downward moves. Because if there is one thing on the "national security" agenda that must be avoided at all costs, it is a drop in the S&P in today's trading session - after all now is when the official Santa rally begins and judging by the futures, which after a steep selloff in the last minute of trading on Wednesday have restored all their losses and then some, we may finally hit Goldman's year end target of 2100, for 2015.

 

December 25th

Tyler Durden's picture

"We Are Taking A Stand For Freedom" - New Yorkers Explain Why They Are Waiting In Line To See "The Interview"





And just like that Americans got punk'd again. From one of the countless New Yorkers waiting in line to see The Interview: "We are taking a stand for freedom. We want to show the world that Americans won't be told what they can and can not see. If we want to see a movie we'll go see a movie and make up our own minds.... I came to express my very strong support for the free expression of ideas."

 

Tyler Durden's picture

Russia, China, Or America? "An Oppressed People Ruled By Others For Others"





"I find it so disturbingly illogical that we Americans are willing to die so that our political class can enjoy ill gotten riches and power yet we cower when it comes to defending our great nation against the political class, something our founding fathers pleaded for us to do.  The truth, which the political class legislates so hard for us to overlook, is that they are powerless without us.   It is us that fight their fights, fund their wars and enforce their laws that enslave us yet we bow down and call them Mr. President and Madame Secretary.  And so I ask each and everyone of you, when will we wake up and recognize that we are the power and the wealth and that the political class has only managed, through deception, to harness our strengths and pass them off as their own?  For until that day of awakening, we will continue to live as an oppressed people ruled by others for others."

 

 
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