Google

I'll let the numbers and facts speak for themselves as the #FanBois grope for something to retort... It's "knowledge how", not "knowledge that"!!!

With minutes to go, this is what the world (according to the Google machine) is thinking ahead of Apple's earnings... and what the market expects...

As the video denotes below, here we have big brother traded on an exchange

Heading into the North American open, equities are trading in minor negative territory, led lower by banks as markets look forward to the first LTRO repayment, as well as lingering concerns that losses from derivatives contracts by Monte Paschi (entered with Nomura) may undermine the lender’s earnings. Monte Paschi shares opened 8% lower and were halted by the exchange to prevent a further slide in share price. As a result, even though EUR/USD is trading higher and peripheral bond yield spread are tighter, Bunds are trading in minor positive territory. Of note, Spain’s Iberian neighbour Portugal opened books for its 2017 bond and books are said to be around EUR 10bln, with guidance at MS+395bps (down from original MS+410bps). EUR/USD has also benefited from the decision by the Portuguese Treasury to tap capital markets only a day after a successful placement by Spain yesterday. Looking elsewhere, even though USD/JPY has bounced off earlier lows, implied vols continue to trade heavy as option decay and re-positioning post the BoJ decision weighs on prices. So much so that R/R has slipped to Sep levels, but still favours bets on further JPY depreciation.

• Doubt Greets Bank of Japan's Easing Shift (WSJ)
• Japan hits back at currency critics (FT)
• Japan upgrades economic view for first time in eight months (Australian) - only to lower them in a few months again
• GOP critics get opportunity to grill Secretary Clinton on Benghazi (Hill)
• Global economy set for ‘slow recovery’ (FT)
• Obama to back short debt limit extension (FT)
• Unfinished Luxury Tower Is Stark Reminder of Las Vegas’s Economic Reversal (NYT)
• Draghi Says ‘Darkest Clouds’ Over Europe Have Subsided (BBG)
• High-Speed Dustup Hits a Clubby Corner (WSJ)
• U.S. Budget Discord Is Top Threat to Global Economy in Poll (BBG)
• Sir Mervyn King says abandoning inflation target would be 'irresponsible' (Telegraph)
• Spain Says It May Cover 13% of 2013 Funding in January (BBG)

With the market basking in glow of good earnings results yesterday, mostly out of IBM, and to a lesser extent GOOG, which missed on the top line but beat on EPS squeezing some recent inbound shorts, S&P500 futures have yet to post a solid move to the upside. Perhaps a big reason for this is the recent recoupling of risk based on not one but two carry signals: the first is the well-known EURUSD pair, while the second is the recent entrant, the USDJPY, and it is the latter that continues to see a cover of the massive short interest accumulated over the recent 1000 pip move higher on what upon ongoing reflection has been a disappointing announcement out of the BOJ. Needless to say, the Nikkei whose recent surge higher was all due to currency weakness has tumbled overnight despite corporate fundamentals, if not economic data, which continues to post substantially subpar prints.

The algos have gone nuts after hours, but here are the numbers:

• GOOGLE 4Q REV. EX TAC $11.34B, Exp. $12.36
• GOOGLE 4Q AVERAGE COST-PER-CLICK FELL 6% VS YEAR AGO
• GOOGLE 4Q EPS EX ITEMS $10.65, EST. $10.50

The Great Recession had one effect on Americans you don’t hear much about - regular illicit drug use increased by approximately 2.5 million users in 36 months, from 2007 to 2010.  The year 2011 (the most recent data available) saw a slight decline to an estimated 8.7% (from 8.9%) of all Americans regularly using illegal drugs, but, as ConvergEx's Nick Colas notes, this is still 19.5 million people who would find it difficult to pass a pre-employment drug test.  Drug use and testing does not (of course) explain the still high levels of national unemployment on their own.  Issues of cyclical sluggishness and select structural issues still hold the reins here.  But as policymakers struggle to keep the country’s unemployment rate on a downward trajectory, it does seem clear that national drug policy and state-level lawmaking are working at cross-purposes.  With drug use among the unemployed at levels double their full-time employed peers (17% versus 8%), and marijuana use on a solid uptrend, national drug policy and macroeconomic priorities appear to be on different – and conflicting – tracks.

I actually post a model that allows you to value your college education, ROI, NPV. In Twitter parlance, #FeelingsHURT! Then that VIRAL VIDEO detailing what??? Let's dig thought some facts...

The two month wait is over and the most overtelegraphed central bank news since November 2012 finally hit the tape when the BOJ announced last night what everyone knew, namely that it would proceed with open-(y)ended asset purchases and a variety of economic targets, key of which was 2% inflation. However, the response so far has been one of certainly selling the pent up news, especially since as was further detailed, the BOJ will do virtually nothing for 12 months, except to increase the size of its existing QE (is the current episode QE 10 or 11?) by another €10 trillion for the Bills component. The USDJPY dropped as much as 170 pips lower than its overnight kneejerk highs hit just after the news.

• With array of challenges, Obama kicks off second term at public inauguration (Reuters)
• Uneasy in the Political Climate, Mickelson Talks Like Someone Ready to Step Away (NYT)
• BOJ Should Slow Easing If Yen Weakens Too Much, Hamada Says (BBG)
• Spain Recession Scars Exposed as Jobless Seen at 6 Mln (BBG)
• Davos Doom Loses to Merkel-Draghi as Euro Defies Roubini (BBG)
• Algeria finds dead Canadian militants as siege toll rises (Reuters)
• Beijing tries to clean up its act (FT)
• Investigators probe Boeing 787 battery maker (Reuters)
• Netanyahu Gets Landslide in Markets Masking No Peace Process (BBG)
• Google aims to replace passwords with ID ring (Telegraph)
• Kim Dotcom launches new upload site (FT)
• Dell Said to Hire Evercore to Seek Higher Bids After Buyout (BBG)
• Hostess Bakers Union Hires Investment Bank Gordian in Asset Sale (BBG)

An overview of the key factors and events that are shaping the investment climate in the week ahead.  It looks at some emerging market developments as well.  These are the main talking points and considerations that ought to be on your radar screen as investors or pundits.  

 I used to like DealBreaker, I really did. Alas that was in my younger years before I made a (very) small name for myself and before I took the red pill offered to me by ZeroHedge's Tyler Durden. Now I realize that sarcastically apologizing for the nefarious character of the financial world is pretty much the same as just plain-old apologizing for it... except funnier. Case in point, here is an excerpt from an article published on DealBreaker a few hours ago entitled "Regulators Close Aquarium Door Behind Escaped Whale":

We are not epidemiology experts, but something tells us the US flu (or is that communist?) epidemic is getting worse, not better.