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Daily Highlights: 2.24.10
- Asian shares fall for first time in three days on US consumer confidence.
- Dollar weakens versus Euro on speculation Fed to hold rates.
- German business confidence unexpectedly drops as snow hampers retail sales.
- Hong Kong raises tax on luxury homes to cool market after 29% price gain.
- Japan January export growth accelerates to 40.9% as overseas demand drives recovery.
- Oil hovers below $79 in Asia after US crude supplies drop, suggesting demand up.
- Treasury said it will borrow $200B and leave money on deposit with the Fed.
- US banks posted their sharpest decline in lending since 1942 at the end of last year.
- Australia's Woodside Petroleum said 2009 profit rose 2.1% to $1.62B on FX gains.
- Autodesk swings to Q4 profit of $50.1M despite 7% fall in revs to $$456.1M.
- Bank of America gets approval to increase number of common shares to 11.29B from 10B.
- Barnes & Noble's Q3 net drops 5.4% to $80.4M, f'casts lower same-store sales for 2010.
- Blockbuster seeks to cut debt of as much as $1B, examines alternatives.
- China's Bank of Communications plans to raise $6.15B in a rights issue.
- Exco Resources beats by $0.07, posts Q4 EPS of $0.29. Revs fell 60.9% to $106.6M.
- GM Hummer sale to Sichuan said to be imperilled as China withholds approval.
- Google subject of a EU antitrust probe, following complaints of 3Internet firms there.
- Heineken, Carlsberg to continue to cut costs this year in a bid to maintain profits.
- Hertz's Q4 loss narrowed to $30.9M on absence of charges. Revs fell 2.2% to $1.74B.
- Hyundai's US unit ordered a halt to the sales of its 2011 Sonata sedan jamming door locks.
- News Corp. to pay $70M for a stake in a media company owned by Prince Alwaleed Bin Talal.
- Office Depot's Q4 loss narrowed from year-ago's $1.54B to $77M. Revs fell 6% to $3.1B.
- Retailers Home Depot Inc. and Macy’s Inc. forecast rising sales this year.
- RR Donnelley to acquire Bowne & Co for $481M in cash; posts Q4 EPS of $0.46 as revs fell 7.6% to $2.58B.
- Target's Q4 profit rises 54% to $936M as revs grew 3.2% to $20.18B.
- Toll Brothers' Jan. net loss was $89M last year and $41M this year.
- Total SA is abandoning a steam-assisted oil-sands project in Alberta, Canada.
- Toyota may not know cause in 70% of unintended acceleration, US chief, Lentz says.
- Xerox sues Yahoo, Google for patent infringement.
- Zale Corp. in focus on news of Apollo Mgmt LP proposing to acquire a stake in the company.
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Treasury said it will borrow $200B and leave money on deposit with the Fed.
TD...Jesse's Caffe had an article that the Fed will then use the 200 billion to buy toxics from the banks..any thoughts on this?
From Jesse:
This Treasury Supplemental Financing Program is designed to provide public funds for the Fed's efforts to purchase and then liquidate toxic assets and derivatives from the financial sector, effectively absorbing their losses and monetizing them.
The Treasury creates new notes and sells them on the open market. The money obtained in these sales is deposited at an account at the Federal Reserve. The Federal Reserve uses this money to purchase toxic assets from the banks at its own discretion and pricing, subject to little oversight and market discipline.
Senator Chris Dodd said "the Fed could become an 'effective Resolution Trust Corporation,' purchasing and ultimately disposing of depreciated assets.
It looks very much like a stealth bailout. It is even more of a scandal because of the Fed's resistance to any disclosures on the principles and specifics by which they are allocating taxpayer money.
Where this gets even more interesting is that the Fed in turn is buying Treasury debt after issuance through its primary dealers, debt that was issued by the Treasury to provide funds to the Fed.
Even more than a stealth bailout, this is starting to smell like 'a money machine.' Money machines are what Bernanke euphemistically called 'a printing press.' What is odious about this particular printing press is that the output is being given directly to a few big banks by a private organization which they own.
I believe that it is still illegal, by the letter of the statutes, for the Fed to directly purchase Treasury paper. But in this case, the Fed is buying Treasury paper with money supplied by the Treasury. Since the paper is passing through the marketplace, and the Primary Dealers are taking their commissions, it may be in conformance with the letter of the law. But it looks like it violates the spirit of the law.
And given that in many cases the Primary Dealers are the principal beneficiaries of the subsidy programs, selling their toxic debt to the Fed at non-market prices, this starts to appear like a right proper daisy chain of self-dealing and fraud.
turbo timmy is stealing taxpayer money and giving it to his bankster masters so that their bonuses can rise from ridiculous to even more ridiculous
could it be more obvious? NO
send that tax cheat to jail
BAC to increase number of shares to 11.2 billion - Again?
It's a race between C and BAC to see who can issue the most shares in the shortest time.
Let 'em. As long as the FED or Treasury (or it's surrogates) don't buy the shares, let the gamblers lose it all.
Is the Fed borrowing from us? Or are they like one of those professional shoppers that you pay to shop for you?
Smelly, smelly.
Since primary dealers must buy at auctions, technically auctions cannot fail, correct?
However on the other hand that couldn't stop the PDs from bidding at say a 99% yield.
Isn't this amusing?
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Oil hovers below $79 in Asia after US crude supplies drop, suggesting demand up.
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Why not . . . Oil hovers below $79 after US crude supplies drop, suggesting crude production down.
http://www.youtube.com/watch?v=lq61CzUS3dY
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