A new Nielson survey on global consumer confidence for the 2nd quarter this year reveals that confidence is improving around the world. It works out to 55% of people around the world that believe that we are currently going through a recession, which means that this is the lowest figure surveyed for over two years.
A BP official who led the company before the 2010 incident in the Gulf of Mexico marked his return to the region in a $3.75 billion deal with Houston-based Apache. Apache seemingly said goodbye to the Gulf of Mexico in the deal, opting instead to focus its efforts onshore. Former BP Chief Executive John Browne helped nab 1.9 million net acres in the agreement with Apache last week. Apache's "good run" in the Gulf of Mexico may suggest assets onshore may hold more long-term value for explorers as new drilling technologies have contributed to exponential production gains for onshore oil and natural gas in the United States.
Surplus capital used to be the understood as the primary challenge, but this fell out of favor. This essay seeks to return it to the center of the narrative.
With earnings season in full swing as some 20% of the S&P is expected to report, the quieter macro picture moves to the backburner especially with the Fed now silent for a long time. Looking at key central banks events, at the Turkey central bank meeting this week, Goldman expects that the bank is more likely to deliver a moderately hawkish “surprise” and hike the lending rate by 100bp to 7.5% (7.0% for primary dealers), and leave the key policy (1-week repo) and the borrowing rates unchanged at 4.5% and 3.5%, respectively. Among the other central bank meetings this week, benchmark rates are expected to remain unchanged in New Zealand, Philippines and Colombia, in line with consensus, while a 25bp cut is expected to be announced at the Hungary MPC meeting.
- Earthquake Sends Kiwis Screaming From Wellington Buildings (BBG)
- China quake death toll more than doubles to 54, hundreds hurt (Reuters)
- In 2011, Michigan Gov. Snyder said bankruptcy wasn't an option for Detroit. Two years later, he changed his mind (WSJ)
- GlaxoSmithKline says Chinese laws might have been violated (FT)
- SEC Tries Last Ditch Move to Put SAC’s Cohen Out of Business (BBG)
- Detroit’s Bankruptcy Reveals Dysfunction Common in Cities (BBG)
- Obama to start new offensive on economy (FT)
- As WTI and Brent reunite, Gulf of Mexico faces squeeze, not glut (Reuters)
- Extended Stay Files for Public Offering (WSJ)
- Apple Developer Website Hacked: Developer Names, Addresses May Have Been Taken (MacRumors)
- Treasuries Not Safe Enough as Foreign Purchase Pace Slows (BBG)
It wasn't exactly like rubbing salt into the wounds of a US population that over the past month has learned it has no electronic communication privacy left, but it was close, when last night the US government's Office of the Director of National Intelligence announced that it was granting the secret FISA court - the same 11 people who decide behind closed doors whose email, phone or browser history is of national interest and thus subject to further "examination" - an extension of its telephone surveillance program. This is one of the two data surveillance efforts by the US (in conjunction with all major private telecom and internet companies) that Snowden leaked about. Why do we know this? Because the Obama administration is suddenly serious about being the most transparent ever: "The ODNI said in a statement it was disclosing the renewal as part of an effort at greater transparency following Snowden's disclosure of the telephone data collection and email surveillance programs." In short: "we will continue spying, but at least we are fully transparent about it."
Oil and gas exploration is getting bigger, deeper, faster and more efficient, with new technology chipping away at “peak oil” concerns. While hydraulic fracturing has been the most visible revolutionary advancement, other high-tech developments are keeping the ball rolling - from the next generation of ultra-deepwater drillships, subsea oil and gas infrastructure and multi-well-pad drilling to M2M networking, floating LNG facilities, new dimensions in seismic imagery and supercomputing for analog exploration.
- Detroit ‘Gut Kick’ Poses New Test for Long Suffering City (BBG)
- Florida lawmakers urge overhaul of 'Stand Your Ground' law (Reuters)
- Investors pour huge sums into US equity funds (FT)
- Snowden Standoff Threatens Obama-Putin Moscow Summit (BBG)
- China, U.S. companies' great hope, now a drag (Reuters)
- Morgan Stanley stock traders rebuild burned bridges (Reuters)
- Huawei spied for China, claims ex-CIA head Michael Hayden (FT)
- Gorilla Flipping Homes as Rebound Revives Rapid Trades (BBG)
- BRICS joint action at G20 summit may be wishful thinking (Reuters)
For the second time in a week, a Drone has been destroyed at Tyndall Air Force Base in Florida. This morning's crash - and later self-destruction - of the unmanned QF-4 drone ( a modified F-4 Phantom apparently used for target practice) on the east-side of the base caused Highway 98 to be closed "as a precaution," for the next 24 hours due to fires resulting from the crash and a small self-destruct charge carried on board the drone. The charge is used to destroy the drone if it leaves its pre-approved flight plan. The last drone crash was last Wednesday morning when Tyndall destroyed a drone over the Gulf of Mexico south of Cape San Blas in Gulf County.
- An actual Bloomberg headline: Granny’s Gold Bars Are Key to Vietnam Push to Boost Dong (BBG)
- Gay delivers further body blow to troubled sport (Reuters)
- China Wealth Eludes Foreigners as Stocks Earn 1% in 20 Years (BBG)
- Bernanke Boom Signaled by Yield Surge as Market Recalculates (BBG)
- Portugal's Parties Set Deadline for Pact (WSJ)
- Corporate Spending Set to Surge in U.S. (BBG)... or not at all based on the actual corporate data
- Legal Fears Slowed Aid to Syrian Rebels (WSJ)
- A mega-camp adds to the Boy Scouts’ troubles (Reuters)
- GSK accused of being ‘ringleader’ in China probe (FT)
- 19 Hospitalized in US-Ukraine Army Exercise - Ministry (RIA)
- Egypt Islamists march as senior U.S. official visits (Reuters)
- German spies made use of U.S. surveillance data (Reuters)
Greenwald: "The US Government Should Be On Its Knees Every Day Praying That Nothing Happens To Snowden"Submitted by Tyler Durden on 07/13/2013 19:43 -0400
Edward Snowden may be America's persona most non grata in the entire world, but he has an insurance policy against "accidents": a treasure trove of supposedly damaging secrets about the US that will hit the public domain if something were to happen to the 30 year old whistleblower. A trove is so damaging that according to Glenn Greenwald, Snowden "poses more of a threat to the U.S. than anyone in the country’s history." Well, maybe a threat to the "government" which now only represents the interests of various corporations and Wall Street, but certainly not to what the US was supposed to be before it was hijacked by special interests, lobbies and the creature from Jekyll Island.
The internet is on the verge of transforming manufacturing and China's dominance in this industry will soon be under serious threat.
Those always on the lookout for alternative indicators of economic activity may be in luck.
While everyone is focused on whether Mr. Burns, aka Larry Summers will take over for Ben Bernanke (he won't), lots of peripheral resignations are flying around. the most recent one: that of the U.S. secretary of the $60-billion budget and 240,000 employees Department of Homeland Security - Janet Napolitano, who will be named the next president of the University of California system. As the LA Times reports, "nothing was pushing her out of Washington now, although the Senate’s recently approved compromise plan on immigration faces an uncertain fate in the Republican-controlled House." The good news: we await for UCLA to be promptly upgraded to AAA and issue bonds inside of the US.
Even if the last thing the tapering US "recovery" needed is a surge in energy costs, it may soon be getting them following yet another news flashback, this time to the 2010 GOM disaster. Just headlines for now from Bloomberg:
- U.S. IS RESPONDING TO A LOSS OF WELL CONTROL IN GULF OF MEXICO
- GULF OF MEXICO EVENT OCCURRED AT SHIP SHOAL BLACK 225 PLATFORM
- GULF SITE POSSIBLE SHEEN IS OVER 4 MILES WIDE BY 3/4 MILE LONG
- ENERGY RESOURCES TECHNOLOGY GULF OF MEXICO OWNS PLATFORM: U.S.
- U.S.: COMPANY ASSESSMENT SAYS GAS FLOWING FROM GULF WELL
WTI meanwhile up another $0.70 just shy of $105. Time to rid the world of evil speculators once and for all.