The nation’s largest privately held company, Cargill, has agreed to purchase Norwegian-based EWOS, one of the world's largest suppliers of feed and nutrition for farmed fish. The $1.5 billion deal signals Cargill’s entry into salmon and trout markets and is the company’s second aquaculture deal in the past two months after it announced a $30 million shrimp feed facility project in Equador with Naturisa.
Just two years after Toy'R'Us attempted (and failed) to IPO, Bloomberg reports that insurance companies are cutting back on their coverage of the firm's suppliers. Without this 'insurance', which protects suppliers in case a retailer fails to pay them for merchandise - as in the event of a bankruptcy - the risks of shipping to the retail chain soar. Toys'R'Us bonds have collapsed to lows as investors recognize that credit insurers sometimes cancel existing policies if a company’s performance declines precipitously enough to place its ability to keep operating in doubt. That occurred in the months before bankruptcy filings at RadioShack, Borders, and Circuit City.
Justice in America is not all it’s cracked up to be. On paper, you may be innocent until proven guilty, but in actuality, you’ve already been tried, found guilty and convicted by police officers, prosecutors and judges long before you ever appear in a courtroom. Chronic injustice has turned the American dream into a nightmare.
What have the bailouts achieved? Well, the Greek economy is doing worse than ever, and the people are poorer than ever; and both have a lot more bad ‘news’ to come. The bailouts needed to be as big as they were to 1) successfully make the international banks ‘whole’ that had lent as much as they had into the Greek economy, 2) get the IMF involved, 3) and absolve the notorious -and cooperative- domestic oligarchy from any pain. And make all the usual suspects a lot more money in the process. It therefore doesn’t look at all unlikely that Greece was saddled with an artificially raised deficit, and that the intention behind that, all along, was to get the Troika ‘inside’ for the long run. So the country could be stripped of all its assets.
"Japanese day traders, colloquially and collectively known as 'Mrs Watanabe', are buying the yen as it nears eight-year lows," Nikkei reports. For their part, private equity firms are cashing out at what they figure may be the top for Japanese stocks.
- Shale Oil Boom Could End in May After Price Collapse (BBG)
- Oil above $58 on U.S. shale output report, Mideast (Reuters)
- Ackman Says Student Loans Are the Biggest Risk in the Credit Market (BBG)
- Alibaba Disputes U.S. Group’s Claim it Tolerates Fake Goods on Taobao (WSJ)
- Petrobras takes steps to avert a technical default (FT)
- Yen’s Drop Is Approaching Its Limit, Says Abe Adviser Hamada (BBG)
- 'Slicing and dicing': How some U.S. firms could win big in 2016 elections (Reuters)
- Fed official warns ‘flash crash’ could be repeatedv (FT)
- 'Glimmer of hope' for Ukraine after deal at Minsk peace summit (Reuters)
- Ruble Rebounds, Russian Stocks Surge on Ukraine Cease-Fire Deal (BBG)
- Greek PM Tsipras in Brussels as clock ticks on EU bailout (Reuters)
- Emerging-Market Currencies Rout Not Over for Traders (BBG)
- Little noticed, new Saudi king shapes contours of power (Reuters)
- In Wake of Financial Crisis, Goldman Goes It Alone (WSJ)
- AmEx Is Losing Its Millionaires (BBG)
- Thousands to Lose Health Insurance Over Residency Questions (WSJ)
- Methodology change sees Indian economy grow faster than China's (Reuters)
- Can Greek Businesses Even Survive? (WSJ)
- Putin to travel to Minsk talks raising hopes of a deal over Ukraine (Euronews)
- Ukraine contact group representatives deny ceasefire deal in Minsk (Reuters)
- Moar buybacks! Hedge Fund-Backed Investor Puts Himself Up for G.M. Board (NYT)
- Ukraine peace summit overshadowed by some of war's worst fighting (Reuters)
- Time for non-non-GAAP excluding China: Tesla CEO threatens firings after dismal China sales - sources (Reuters)
- Jon Stewart leaving Comedy Central's 'The Daily Show' (Reuters)
The End Of Guitar Center (And An Irrational Addiction To Growth & The Scourge Of Unregulated Structured Finance)Submitted by Tyler Durden on 02/05/2015 21:15 -0400
The fact is, the die is cast. In a couple of weeks, Guitar Center will need to report its Christmas performance to its bondholders. If things do not look good, its bonds will be ripped apart like RadioShack’s. Here’s what this really means: it’s the end of big box retail, an irrational addiction to growth, and the scourge of unregulated structured finance. For a few years, unwise urban planning and unregulated banks created a new bubble in the American suburbs. The objective truth is that the growth of the last decade was financed by banking fraud, and that financial trickery of this sort only fools people in the short-term. Eventually, you must have a product people demand, sold by competent people who care about the business, financed in a way that makes sense.
- Fed seen remaining patient with rate guidance amid global turmoil (Reuters)
- National Weather Service apologizes for blizzard forecast miss (CBS)
- Greek PM Tsipras pushes on with radical change, markets tumble (Reuters)
- Obama Drops Plan to Raise Taxes on ‘529’ College Savings Accounts (WSJ)
- Hard Choices on Easy Money Lie Ahead for Fed Chief (Hilsenrath)
- Debt That Once Boosted Its Cities Now Burdens China (WSJ)
- Skymark Said to File for Bankruptcy After Airbus Deal Flops (BBG)
- Heavy Fighting Drains Ukraine Government’s Options and Finances (WSJ)
A week ago, we were surprised to learn that one of the most prominent critics of HFT, Joseph Stiglitz, had been barred from an SEC Panel that will "advise regulators on issues facing U.S. equity markets." Today, a day after the SEC busted DirectEdge for failing to "accurately describe the order types being used on the exchanges" namely the infamous Hide not Slide, even after said order had repeatedly made the front page of the WSJ, the SEC finally announced the full list of members of the "New Equity Market Structure Advisory Committee" which will focus on the structure and operations of the U.S. equities markets. Alas most of the committee members are, sadly, placeholding figureheads. Because there is only one person on the list whose participation matters, and whose presence is not at all surprising...
Despite the authorities' best efforts to keep everything orderly, we know how this global Game of Geopolitical Tetris ends: "Players lose a typical game of Tetris when they can no longer keep up with the increasing speed, and the Tetriminos stack up to the top of the playing field. This is commonly referred to as topping out."
"I’m tired of being outraged!"
- Moody’s Downgrades Japan’s Credit Rating (WSJ)
- China Factory Gauge Drops as Shutdowns Add to Slowdown (BBG)
- Euro zone factory growth stalls in November as new orders sink (Reuters)
- Espírito Santo Faces Money-Laundering Investigations (WSJ)
- Oil at $40 Possible as Market Transforms Caracas to Iran (BBG)
- Hong Kong warns protesters not to return after clashes close government HQ (Reuters)
- Bond Secrets Decoded 9,539 Miles From Wall Street in Lot (BBG)
- Ruble Rally Turns to Rout as Fortunes Tied to Sinking Oil (BBG)
- Loans Made in Blink as Banks, Funds Vie for LendingClub Clients (BBG)
- Grand jury expected to resume Ferguson police shooting deliberations (Reuters)
- PBOC Bounce Seen Short Lived as History Defies Bulls (BBG)
- Home prices dropped in September for the first time since January (HousingWire)
- UPS Teaches Holiday Recruits to Fend Off Dogs, Dodge NYC Taxis (BBG)
- US oil imports from Opec at 30-year low (FT)
- Hedge Funds Bet on Coal-Mining Failures (WSJ)
- Putin Woos Pakistan as Cold War Friend India Buys U.S. Arms (BBG)
- How the EU Plans to Turn $26 Billion Into $390 Billion (BBG)
- The $31 Billion Bet Against Brazil’s New Finance Minister (BBG)
- No Sign of Thaw in Obama’s Brief Encounters With Putin (BBG)
- Japan Lawmakers Prepare for Snap Elections as Abe Mulls Tax (BBG)
- Global stocks rise, Brent crude hits four-year low (Reuters)
- U.S., China to Drop Tariffs on Range of Tech Products (WSJ)
- ‘Too-Big-to-Fail’ Rule Would Raise Bar for Bank Capital (WSJ) ... and mean even bigger taxpayer bailouts
- Pot in New York: $100 Ticket. No Charges. No Record. No Nothing (BBG)
- Microsoft unveils first Lumia smartphone without Nokia name (Reuters)
- Davos-Man Ackermann Lured to Cyprus Bank by Billionaires (BBG)
- Alibaba, Apple Talks on Payments Tie-Up Focused on China (WSJ)