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Frontrunning: April 27

Tyler Durden's picture




 
  • Hilsenrath: What to Watch in Fed Statement: ‘Inflation Expectations' (WSJ)
  • Japan Debt Outlook Cut to ‘Negative’ by S&P on Reconstruction (Bloomberg)
  • China’s Wen to Spur Investment, Tap Resources in Southeast Asia (Bloomberg)
  • Holding Bernanke Accountable (David Leonhardt)
  • Hong Kong Exchange And Clearing Chief Prepares for 'Seismic Change' From China (WSJ)
  • Because Europe is not enough...China Seeks Bigger Role in Australia Economy (WSJ)
  • Tank convoy seen moving around Damascus (Reuters)
  • Syria Protests Crackdown Leaves '453 Dead' (SkyNews)
  • NATO Aims to Rattle Qaddafi With Bombs Falling Close to Home (Bloomberg)
  • Karzai Told to Dump U.S. (WSJ)
  • France Backs Draghi for ECB Presidency (FT)
  • Greek Budget Gap Exceeds Forecasts (WSJ)
  • Can China really dump the dollar? (Fundmastery)
  • U.K. Economy Grew 0.5% in First Quarter on Services Rebound (Bloomberg)

European Economic Highlights:

  • Euro-Zone Industrial New Orders NSA 21.3% - lower than expected.Consensus 21.8%. Previous 21.9%.
  • Germany GfK Consumer Confidence Survey for May 5.7 – lower than expected. Consensus 5.8. Previous 5.9.
  • Germany CPI - Saxony for April 0.4% m/m 2.5% y/y.Previous 0.5% m/m 2.0% y/y.
  • Germany CPI - Brandenburg for April 0.2% m/m 2.2% y/y.Previous 0.5% m/m 2.0% y/y.
  • Germany CPI - Hesse for April 0.3% m/m 2.1% y/y.Previous 0.4% m/m 1.8% y/y.
  • Germany CPI - North Rhine-West for April 0.3% m/m 2.5% y/y.Previous 0.5% m/m 2.0% y/y.
  • France Consumer Confidence Indicator for April 83 – in line with expectations.Previous 83.
  • Italy Consumer Confidence Ind. sa for April 103.7 – lower than expected.Previous 105.1.
  • UK GDP 0.5% q/q 1.8% y/y – in line with expectations.Previous -0.5% q/q 1.5% y/y
  • UK Index of Services (3mth/3mth) -0.3% - in line with expectations.Previous -0.6%.
  • UK Index of Services 0.6% m/m - higher than expected.Consensus 0.2% m/m. Previous 1.1% m/m.
  • UK BBA Loans for House Purchase 31,660 – higher than expected.Consensus 30,450. Previous 30,178.

Summary highlights courtesy of Egan-Jones:

  • Japan’s sovereign-rating outlook was cut to “negative” from “stable” by S&P.
  • Japanese retail sales slump most in 13 years after Quake, Nuclear crisis.
  • Oil drops below $112 in Asia as traders eye Bernanke comments on
    interest rates, economy.
  • UK economy grew 0.5% in Q1 as services rebounded.
  • 3M reported a 16% increase in Q1 net; raised earnings forecast for the full year.
  • Altra Hldgs beats by $0.07, beats on revs; raises FY11 EPS, rev guidance above cons.
  • Atlas Pipeline Partners with Chevron unit to buy 20% interest in NGL pipeline for $85M.
  • Boeing's earnings for March rise from $519M to $588M.
  • Cabot beats by $0.06, reports Q2 EPS of $0.81. Revs rose 11.1% to $791M.
  • Coca-Cola's profit grew 18% as revs leaped 40% on acquisition of bottling operations.
  • Costco Wholesale Board approved a $4B share repurchase program.
  • Credit Suisse's Q1 net drops 45%, misses est., on lower earnings at invt bank, debt charge.
  • Delta Air Lines' Q1 loss widens to $318M on higher fuel costs. Revs rose 13% to $7.75B.
  • Ford posts Q1 profit of $2.55B - largest for the period in 13 yrs, helped by rising demand.
  • General Dynamic's March net income up from $597M to $618M.
  • Humana sees Q1 EPS at $1.86 vs. its Feb f'cast of $1.15-1.20. Ups share repurchase
    program to $1B (prev $250M).
  • IBM's board approved a 15% increase in its cash dividend and an $8B share repurchase.
  • J&J agrees to buy Synthes for $21.3B in cash, stock.
  • Justice Dept gave antitrust clearance to Southwest Airlines' acquisition of AirTran Hldgs.
  • Marathon Oil, Nexen agree to jointly explore shale acreage.
  • Nalco misses by $0.05, beats on revs; guides FY11 EPS below consensus.
  • Nokia plans to consolidate research and development sites, cut about 4,000 employees
    by the end of 2012.
  • TransCanada to sell 25% interest in GTN and Bison to TC PipeLines, LP for $605M.
  • US Airways Grp Q1 loss widened to $114M on higher fuel cost. Revs up 12% at $2.96B.
  • US Steel posts 9th straight loss, cites 63% surge in pension exps, and higher input costs.
  • Volkswagen Q1 earns soar to $2.5B on increasing global auto sales.
  • WellPoint reports 1st-quarter profit increase of nearly 6% to $926.6M.
  • Whirlpool 1Q net income rises 3% to $169M on reduced costs, increased prices.
 

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Wed, 04/27/2011 - 07:57 | 1210714 snowball777
snowball777's picture

This lame theatre bores me...send in a SEAL team and double-tap Qaddafi and his spawn already.

Wed, 04/27/2011 - 08:02 | 1210727 augie
augie's picture

Sorry a people's revolution from tyranny bores you... maybe there is something on TV?

Wed, 04/27/2011 - 08:06 | 1210740 cossack55
cossack55's picture

I prefer a people's revolution into another form of tyranny to be exciting and demonstrative.

Wed, 04/27/2011 - 08:20 | 1210772 augie
augie's picture

I would agree with you if foreign influence is allowed to play any further part in this. Hence my pissy comment above towards the idea (not the poster) of the U.S. having any further involvement.

I suppose i'm just being naive. The rebels have no shot against oil money.

Wed, 04/27/2011 - 08:22 | 1210783 Bubbles...bubbl...
Bubbles...bubbles everywhere's picture

We are hopeless...

 

HONG KONG—The first yuan-denominated share to list on the Hong Kong stock exchange is laying the groundwork for a "seismic change" when China allows its citizens to invest abroad more freely, the exchange's head said.

In an exclusive interview with The Wall Street Journal, Charles Li, chief executive of Hong Kong Exchanges & Clearing Ltd., said exchange officials are preparing for much greater outbound investment from China that would drive demand for yuan-linked products in Hong Kong. He also outlined his ambitions to build up a DERIVATIVES business that would act as a bridge between Chinese customers and international commodity ...

Wed, 04/27/2011 - 08:22 | 1210789 slaughterer
slaughterer's picture

Derivatives, ETFS, and algos.  Come join us in Dante's seventh circle, Hong Kong.

Wed, 04/27/2011 - 08:32 | 1210814 bigdumbnugly
bigdumbnugly's picture

satan rubbing his hands together whilst throwing his head back and laughing maniacally...

Wed, 04/27/2011 - 08:24 | 1210796 slaughterer
slaughterer's picture

"Delta Air Lines' Q1 loss widens to $318M on higher fuel costs. Revs rose 13% to $7.75B"  Margin compression? check.

Wed, 04/27/2011 - 08:28 | 1210802 HedgeFundLIVE
HedgeFundLIVE's picture

At some point, the decline in USD has to end. I believe Bernanke’s speech tomorrow will be read as bullish for the USD. 

http://www.hedgefundlive.com/blog/eurusd-analysis-bernanke-effect-on-equities

Wed, 04/27/2011 - 08:33 | 1210819 Broomer
Broomer's picture

From Hong Kong Exchange And Clearing Chief Prepares for 'Seismic Change' From China (WSJ)

HONG KONG—The first yuan-denominated share to list on the Hong Kong stock exchange is laying the groundwork for a "seismic change" when China allows its citizens to invest abroad more freely, the exchange's head said.

(...)

One result is Hui Xian Real Estate Investment Trust, the first yuan-denominated stock issued outside mainland China, which begins trading on the Hong Kong exchange this Friday. The offering, backed by properties in Beijing owned by billionaire Li Ka-shing, has raised 10.48 billion yuan (US$1.61 billion).

Someone here is with a serious need of capital. Bubblicious Chinese REIT, why I'm not surprised...

Wed, 04/27/2011 - 09:13 | 1211007 magpie
magpie's picture

How do you say "bagholder" in Cantonese or Mandarin ?

Wed, 04/27/2011 - 08:39 | 1210846 Broomer
Broomer's picture

From Can China really dump the dollar? (Fundmastery)

In terms of foreign currencies, I believe there are only two other actual currencies — the Euro and the Japanese Yen — that China could look to other than the dollar.  China’s financial reserves are big enough that the Chinese government has to have its foreign assets denominated in a very large, liquid currency. And, there are not too many of those around other than the U.S. dollar, the Euro and the Yen. For a variety of historical and cultural reasons, I doubt if the Chinese would seriously entertain putting most of their foreign currency and foreign assets holdings in the Japanese Yen, so the currency choice is between the dollar and the Euro.

Gold and silver, anyone?

Wed, 04/27/2011 - 09:00 | 1210926 disabledvet
disabledvet's picture

What?  No "Greece is collapsing" today?  Lies, lies, lies....imagine that.

Wed, 04/27/2011 - 09:05 | 1210954 Broomer
Broomer's picture

Collapse of Greece is no longer a news item.

Wed, 04/27/2011 - 10:00 | 1211096 Miles Kendig
Miles Kendig's picture

David Leonhardt gets to an important observation this morning with his selection of question to ask his grand poopah'dness, Missa Chairistan hizzelf, Ben Bernanke.

Why has Mr. Bernanke decided to accept widespread unemployment for years on end, even though he believes he has the power to reduce it?

The answer seems obvious enough.  As David notes, if the fed were really interested in reducing unemployment it would do so.  The facts that have unmistakably amassed over time indicate quite clearly that there has been substantial effort expended at doing everything possible to massage expectations and the data points that would support & advance the thesis that the unusual departure from the norms of employment will be long lasting while also working to express marginal improvements that will bolster consumption.  Massaging that include workforce participation, birth-death modeling, trade deficit numbers that don't mirror our trading partners, using the powers granted to the DNI to massage corporate P&L, "stabilizing" pension fund & RRE balance sheets (the wealth effect), inflation expectations via the University of Michigan farce and more.  I suspect that these efforts, coupled with the efforts of the federal reserve in total, that must include FX swap lines, proxy buying, supporting stabilization of bank balance sheets (especially with the massive support of MBS), the measures employed to funnel as much liquidity to the TBTF institutions through various ongoing securitized mortgage restructuring and more all indicate a federal reserve that is doing all it can to manage its "exposed fuel rods" in a very TEPCO/Fukushima like exercise writ large.  If unemployment were returned to levels more closely associated with normalcy then the federal reserve would be unable to employ all of the emergency & exigent measures it has to date and obviously believes is necessary to continue into the future without suffering a massive meltdown.  So what we are witnessing are efforts to maintain social order through massaging of data and employment of fiscal measures including emergency unemployment compensation ad infinitum, food stamp expansion, stimulus construction and other short term employment measures and other forms of dropping blocks of WIC cheese by helicopter en masse over the survivors clinging to their roof tops a la Katrina while the fire brigades work feverishly behind the scenes to continue actions (akin to using sea water in reactor cooling operations) in a vain attempt to return stability to a situation that can only be described at FUBAR.

The simple fact that we are even getting a presser and a greater flow of whatever from the federal reserve system says much about how desperately FUBAR the situation is.  On cue Richard Koo chimes in on BBG .....

Wed, 04/27/2011 - 19:53 | 1214186 Element
Element's picture

Because Europe is not enough...China Seeks Bigger Role in Australia Economy (WSJ)

 

Problem is Australians are not keen on this at all and Govt and non-govt polling has made that fact very clear to Canberra, so less Chinese investment involvement is more likely ... people just don't trust authoritarian thugs with deep pockets ... founded on USD Fiat ... can't imagine why.

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