Daily Highlights: 8.21.09

• 6 S.Korean banks to take $4B worth problem loans from financial institutions' books.
• Asian stock markets were lower Friday on report China might tighten bank lending.
• Australian spot iron ore cash price to China slumps 9.3% on steel decline.
• China said to plan tightening of bank capital requirements as stocks rally.
• China's economy may grow 8.5% this quarter: State Information Center.
• Mexico’s GDP contracted 10.3% last quarter - fastest pace in more than 25 years.
• Sales of Existing US houses probably increased in July as prices dropped.
• US banks hit by amounts of toxic loans and securities they bought from other banks.
• US government's "cash for clunkers" incentive program will end Monday at 8 p.m.
• Accenture to trim executive work force, sees $247M charge.
• Advanta Corp. says credit-card defaults falling from June peak.
• Barnes & Noble's qtrly net falls 20%, sales slips 5.3% to $1.16B.
• Bombardier terminated a $1.5B deal with Jet Republic for 110 Learjets.
• Brocade Comm posts Q3 revs of $493.3M, up 34.9%, but shy of cons est. of $503.7M.
• Dollar General Corp., owned by KKR, registered to sell $750M worth of stock via IPO.
• Fortis Bank's 1H net falls 38% to €338M on loan losses, lower margins.
• Gap's Q2 net flat at $228M; revs down 7.3% to $3.25B.
• GM to advance cash to dealers for Clunker rebates, while they are processed by govt.
• GM Board said to meet to consider 2 bids, insolvency for Opel unit today.
• Holcim's Q2 net falls 35% to $563.3M as demand fell in mature markets.
• Hormel Foods' Q3 net jumps 49% to $77.2M amid lower costs. Revs slip 6.2%.
• Industrial & Commercial Bank of China Ltd. posted higher-than- est Q2 profit at $4.6B.
• Japan Airlines, shipper Nippon Yusen plan to integrate air-cargo units.
• Las Vegas Sands' subsidiary files IPO application with Hong Kong's stock exchange.
• Oracle wins US government approval for $7.4B Sun Micro takeover.
• Porsche offices raided on suspicion of VW-related market manipulation.
• Sears Hldg swings to Q2 loss of $94M as revenue declined 10% to $10.55B.
• Tribune ownership may fall to lenders.
• Westpac Banking Corp's Q3 cash earnings were about $914M; lending rose 1.3%.

Economic Calendar: Data on Existing Home Sales to be released today.

Recent Egan-Jones Rating Actions
BALDOR ELECTRIC CO (BEZ)
GAP INC/THE (GPS)
ETHAN ALLEN INTERIORS INC (ETH)
TECH DATA CORP (TECD)
CONSTELLATION ENERGY GROUP INC (CEG)
KEYCORP (KEY)
LABORATORY CORP OF AMERICA (LH)
BB&T CORP (BBT)
ALLIANT ENERGY CORP (LNT)
LTD BRANDS INC (LTD)
WASTE MANAGEMENT INC (WM)
WORTHINGTON INDUSTRIES INC (WOR)
SEARS HOLDINGS CORP (SHLD)

Data provided by Egan-Jones Ratings And Analytics

Comments

[HEHEHE]

The developments in China will be interesting to watch.  It will be the first attempt by a government to put the brakes on all this stimulus.  You'll likely see yet another stimulus package by them when the resulting downside drop in asset prices from the  tightening becomes "unacceptable".   The new reality: assets become harder and harder to price as governments keep d*cking around with the money/debt supply.

[Ghettomedic]

I don't know why China is so humble with GDP figures. Why not really blow us out with some jaw dropping stats from the stat factories in Zhejiang. "Comrade workers! Our factories products one billion pieces of cutlery this quarter. 7.6 million iPhones. And our brave economy grew at a rate of 9,004%." Shit man. If you're going to lie, as I think the Chinese have in these numbers, at least put some literary license into it. A little fiction to make the story exciting.

[acrneer (not verified)]

fortunately World Trade will continue, chasened a bit, but the better for it, and 'Trading Stocks' will, too, continue -

good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions

[Anonymous]

http://www.chartoftheday.com/20090821.htm?T

look at that chart for current p/e!!!

and more on earnings here

http://news.goldseek.com/GoldSeek/1250697600.php

[Cheeky Bastard]

good morning ZHers

book recommendations ( Apocalypse Now, and D.O.D, I know you'll love thin one ). Contextual read for present developements. Enjoy.

http://www.scribd.com/doc/17640042/Problems-of-Rationality

http://www.scribd.com/doc/13900945/fall-of-roman-republic

[Sqworl]

Morning CB...thanks...

[Apocalypse Now]

Thanks Cheeky, enjoyed the others you linked to - nice to pull out and look at the forest.

• The perpetual peace needs perpetual prosperity to succeed
• The golden ratio must be a component of the elusive single unifying theory hinted at in God's Equation since we see it in all fields so it's in the blueprints.  The universe may be spherical or cylindrical like.  Since galaxies far away are traveling away from us at 95% the speed of light, that is close to the speed of current/electricity in a bare copper wire and dark matter is estimated to be 95% of the energy in the universe (probably a perfect conductor at the speed of light but slowed down by 5% energy which is contained by baryonic matter, which leads me to believe this has to do with repulsed electro-magnetism) and the shape of the galaxy might be based on some structure we can find on earth.  Radio wave heat map shows fairly consistent temperatures but it appears the universe is rotating around a central axis like the earth.  Planets farther from our sun orbit slower than the planets close to the sun.  Perhaps we are orbiting the center of the universe and are closer to the center than the universes farther away - as we orbit faster along with nearby universes, the farther out universes would appear to be moving away faster but it could really be us moving faster as we orbit closer to the center of the universe. Just a thought.

I think you'll like this latest martin armstrong piece:

http://economicedge.blogspot.com/2009/08/martin-armstrong-cycles-pattern...

[I need more cowbell]

Gold blasts up $15; USD/EUR around 1.44. Another interesting day in bizarro world. Must kill dollar, must prop markets ( well, today at least ).

[Anonymous]

http://www.infomine.com/investment/metalprices/

What is the main vector difference between above prices and real business (convexity vs concavity) .....speculation

http://railfax.transmatch.com/

[rigger mortice]

'Mexico’s GDP contracted 10.3% last quarter - fastest pace in more than 25 years'.

eeeeeeekk!

[Raymond Shaw]

Did anyone see China's H1 Current Account figures?

http://www.guardian.co.uk/business/feedarticle/8665519

Is all that money on the Pai Gow tables, I mean the Chinese stock market?

[texpat]

Isn't that part of the 40% drop in exports to the US that our fine citizens restrained themselves from spending on lead-based drinking straws and three-headed dog turds?

[Icarus]

I love how no one cares about Canada or Mexico.  (No one really cares where the US exports go in general - that would involve making money, not assuming more credit)

Canada, by far the largest trading partner of the US, is never mentioned on this site.  They get 20% of exports, 15% of imports.

Mexico, 12% of exports, 12% of imports.

China, 6% of exports, 19% of imports.

Oh, everyone focus on China, it's not like the US will be able to find another country willing to export to us.....

Mexico contracting by 10%?  No problem, there are so many other countries out there that will pick up those lost exports.

[HEHEHE]

Mexico's a few dead bodies from becoming a narco-terrorist state.  My brother has to travel to the maquiladore's in Chuihuahua.  He said the quality of life has declined dramatically the past several years as the violence has escalated.  Used to be you could go out at night to local restaurants.  Now you're a prisoner in the hotels.  Co-worker saw a shootout in a hotel lobby last year.

[Mos]

"China's economy may grow 8.5% this quarter: State Information Center"

Ah, the magical 8%.  Never lets you down.

[steve from virginia]

Jeff Mackie disintegrates:

http://www.privateworld.com/archives/213-Career-ending-moments-in-show-b...

[acrneer (not verified)]

I suppose that number depends a lot on the average rate on debt, immigration, and employement rate.

good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions

[earnyermoney]

There were some interesting quotes by Mr. Yu in this article from Bloomberg

http://www.bloomberg.com/apps/news?pid=20601110&sid=aR242y98WzNY

The portion of the article dealing with Geithner's Grilling was telling.

[Ducky]

shoppers abandon purchases before paying

http://news.yahoo.com/s/ap/20090821/ap_on_re_us/us_shopping_cart_abandonment

"The Container Store, which sells storage items, has seen its online abandonment rate rise to 68 percent. The company has launched an e-mail campaign to remind shoppers of their abandoned purchases and a service that lets shoppers pick up online purchases at the store to avoid shipping costs."