Archive - Apr 17, 2014 - Story

Moments ago Goldman reports its first quarter earnings, which beat expectations that had been drastically lowered into this quarter. Specifically, total Q1 revenue printed at $9.33 billion, beating expectations of $8.66Bn, while EPS, which declined 6% from a year ago, also beat Estimates of $3.49 at $4.02. Looking at the key operating segments, the all important FICC revenue was $2.85Bn, also above the sharply reduced estimate of $2.63Bn, while IB was $1.78Bn, more than the Wall Street estimate of $1.52Bn. That was the good news. The bad news: Goldman's first quarter results were the worst since the Lehman crisis, and just to put the critical FICC group's revenues in perspective: at $2.9 billion they were less than half what FICC recorded in Q1 2010 when people apparently still traded.

• Putin Doesn't Rule Out Sending Troops (WSJ)
• Japan Cuts Economic View on Tax Rise (WSJ)
• No "harsh weather" in Chipotle restaurants where comp store sales rose 13.4% (PR)
• No sanctions for you: EU sanctions push on Russia falters amid big business lobbying (FT)
• Consumer Spending on Health Care Jumps as Obamacare Takes Hold (BBG)
• China Seen Cracking on Property Controls (BBG)
• Google, IBM results raise questions about other tech-sector companies (Reuters)
• California city evacuation lifted after military ordnance found (Reuters)
• For Obama, Standoff With Moscow Jumbles Plans at Home and Abroad (WSJ)

It didn't take long for Putin to respond to the latest news from the west that NATO was about to boost its military presence in proximity to Russia. Specifically he said that Putin does not see a reason to fear NATO which was to be expected. But the even more predictable punchline: Russia must respond when NATO moves closer to country’s border, President Vladimir Putin says during annual televised call-in show. The Russian president made his views clear during a nationally televised question-and-answer session in Moscow on Thursday, ahead of the Geneva two-day meeting during which the Ukraine problam is (again) supposed to get a diplomatic solution (it won't). During the Q&A Putin also accused the Kiev government of committing "a serious crime" by sending in troops to quell unrest in Ukraine's east, as a clash overnight left three pro-Russian protesters dead and 13 wounded. And just to make sure there is a solid enough soundbite, the former KGB spy accused the authorities in Kiev of plunging the country into an "abyss".

After a solid day for risk yesterday, surging higher on a continuation of the rumor that Japan's economy will deteriorate so much the BOJ will have to print more money (even though overnight ex BOJ governor Sekido said Kuroda won't print more) we have a more cautious tone this morning heading into the Easter long weekend. A double earnings miss from Google and IBM following the US market close, comments from the Chinese Premier suggesting that the government will keep its policy settings unchanged, and a press conference from Russia’s President Putin in which the Russian president as expected, has refused to back down, has put a small dampener on sentiment today. Add the fact that due to Good Friday April equities Op-Ex will take place today and trading in the next 9 hours promises to be more unrigged than ever, especially if the NY Fed trading desk manages to slam the VIX into single-digit territory