- Microsoft prepares U-turn on Windows 8 (FT), Microsoft admits failure on Windows 8 (MW), After Bumpy Start, Microsoft Rethinks Windows 8 (NYT)
- China reports four more bird flu deaths, toll rises to 31 (Reuters)
- Republicans shift stance on US budget (FT)
- NYC Tallest Condo Corridor Gets New Entrant With Steinway (BBG)
- U.S. Says China's Government, Military Used Cyberespionage (WSJ)
- China rejects Pentagon charges of military espionage (Reuters)
- Bank of China Cuts Off North Korean Bank (WSJ)
- Libya defense minister quits over siege of ministries by gunmen (Reuters)
- London Recruiter Says City Job Vacancies Rose 19% (BBG)
- Colleges Cut Prices by Providing More Financial Aid (WSJ) or, said otherwise, loans
- Jeweler agrees to plead guilty in KPMG insider-trading case (LA Times)
- Physical demand up: U.S. Mint Sales of Gold Coins Jump to Highest in Three Years (BBG)
- Paper demand down: Gold ETP Holdings Cap Record Drop as $17.9 Billion Wiped Out (BBG)
- It's May 1 not April 1: Fed Seen Slowing Stimulus With QE Cut by End of This Year (BBG)
- Another great step for Abenomics: Sony leadership to forgo bonuses after broken promise on profits (FT)
- High-Speed Traders Exploit Loophole (WSJ)
- It's peanut Breaburn jelly time: How Google UK clouds its tax liabilities (Reuters)
- Frowny face day at the Mark Zandi household: Obama Said to Choose Watt to Lead Fannie Mae Regulator (BBG)
- Russia’s 20 Biggest Billionaires Keep Riches From Putin (BBG)
- China Affair With Cheap Diamonds Heats Mass Market (BBG)
- China's emotional ties to North Korea run deep in border city (Reuters)
- US companies must use cash piles for capex (FT) ... and yet they aren't. Tax anyone who doesn't spend for CapEx!
- Chinese Way of Doing Business: In Cash We Trust (NYT)
Over the years, Jim O'Neill, former Chairman of GSAM, rose to fame for pegging the BRIC acronym (no such luck for the guy who came up with the far more applicable and accurate PIIGS, or STUPIDS, monikers, but that's neither here nor there). O'Neill was correct in suggesting, about a decade ago, that the rise of the middle class in these countries and their purchasing power would prove to be a major driving force in the world economy. O'Neill was wrong in his conclusion as to what the ultimate driver of said purchasing power would be: as it has become all too clear with the entire world drowning in debt (and recently China), it was pure and simply debt. O'Neill was horribly wrong after the Great Financial Crisis when he suggested that it would be the BRIC nation that would push the world out of depression. To the contrary, not only is the world not out of depression as the fourth consecutive year of deteriorating economic data confirms (long since disconnected with the actual capital markets), but it is the wanton money (and bad debt) creation by the central banks of the developed world (as every instance of easing by China has led to an immediate surge of inflation in the domestic market) that has so far allowed the day of reckoning, and waterfall debt liquidations, to take place (and certainly don't look at the stock index performance of China, Brazil, India or Russia). Despite his errors, he has been a good chap having taken much of the abuse piled upon him here at Zero Hedge somewhat stoically, as well as a fervent ManU supporter, certainly at least somewhat of a redeeming quality. Attached please find his final, farewell letter as Chairman of the Goldman Asset Management division, as he moves on to less tentacular pastures.
- Gold Bears Defy Rally as Goldman Closes Short Wager (BBG)
- Still stuck on central-bank life support (Reuters)
- Ebbing Inflation Means More Easy Money (BBG)
- So much for socialist wealth redistribution then? François Hollande to woo French business with tax cut (FT)
- Billionaires Flee Havens as Trillions Pursued Offshore (BBG)
- Companies Feel Pinch on Sales in Europe (WSJ)
- Brussels plan will ‘kill off’ money funds (FT)
- Danes as Most-Indebted in World Resist Credit (BBG)
- Syria says prime minister survives Damascus bomb attack (Reuters)
- Syria: Al-Qaeda's battle for control of Assad's chemical weapons plant (Telegraph)
- Nokia Betting on $20 Handset as It Loses Ground on IPhone (BBG)
- Rapid rise of chat apps slims texting cash cow for mobile groups (FT)
- Calgary bitcoin exchange fighting bank backlash in Canada (Calgary Herald)
The United States is a deeply unhappy place. We are a nation that is absolutely consumed by fear, stress, anger and depression. It isn't just our economy that is falling apart - the very fabric of society is starting to come apart at the seams and it is because of what is happening to us on the inside. We are overwhelmed by anxiety, and much of the time the ways that we choose to deal with those emotions lead to some very self-destructive behaviors. Americans have experienced a standard of living far beyond the wildest dreams of most societies throughout human history, and yet we are an absolutely miserable people. Why is this? Why is America #1 in so many negative categories? There is vast material wealth all around us. So why can't we be happy?
- China’s Recovery Falters as Manufacturing Growth Cools (BBG)
- Gloomy eurozone output points to rate cut (FT)
- Limit Austerity, EU appartchik Barroso Says (WSJ)
- Regulators Get Banks to Rein In Bonus Pay (WSJ)
- SEC looks to ease rules for launching ETFs (Reuters)
- Easy come, easy go: U.S. Seizes $21 Million From Electric Car Maker Fisker (WSJ)
- Japan nationalists near disputed isles (Reuters)
- OECD in fresh warning on Japan debt (FT)
- S&P says more than one-third chance of Japan downgrade, cites risks to Abenomics (Reuters)
An attempt to look ahead at the drivers of the capital markets in the week ahead.
Participants don’t see them. Outsiders shake their heads, until they get sucked in. Central banks create them, but deny their existence. Risks no longer exist. Take natural gas.
- Apple reportedly stops placing Mac component orders (DigiTimes)
- Apple Ordered to Remove Obscene Content From China Store (BBG)
- Texas Ammonia-Plant Blast Kills as Many as 15 People (Reuters)
- Boston Probe Said Focused on Person Dropping Bag at Site (BBG)
- The Chinese cold trade war comes come to roost: US becomes Japan’s top export market (FT)
- Berlusconi, Bersani back Marini in presidential vote (Ansa)
- German parliament backs Cyprus bailout (Reuters)
- China Vows Wider Yuan Movement (WSJ)
- Morgan Stanley Sees Core Earnings Weaken (WSJ)
- Gold Miners Lose $169 Billion as Price Slump Adds ETF Pain (BBG)
- G-20 Draft Affirms Pledge to Avoid Competitive Devaluations (BBG)
- IMF warns on risks of excessive easing (FT)
- The battle for the Swiss soul (Reuters)
- Korean Nuclear Worries Raised (WSJ)
- Och-Ziff, With Strategy from a 30-Year-Old Debt Specialist, Racks Up Big Score (WSJ)
- Japan's big "Abenomics" gamble: how to tell if it's paying off (Reuters)
- Kuroda walks a two-year tightrope (FT)
- China Rebound at Risk as Xi Curbs Officials’ Spending (BBG)
- BOJ Said to Consider Boosting Outlook for Inflation (BBG) - for energy prices? Absolutely: by double digits
- Cyprus May Loosen Bank Restrictions in Days (WSJ)
- Cyprus mulls early EU structural funds (Reuters)
- Russia slashes 2013 growth forecast (FT)
- Japan, U.S. Agree on Trade-Talks Entry (WSJ)
- IMF Trims U.S. Growth Outlook in Draft Report Citing Fiscal Cuts (BBG)
- Mexico Is Picking Up the Peso (WSJ)
Among the surprises of the week: the dollar has not gone above JPY100, JGB yields have risen this week, Portuguese bond yields have fallen.
Disparities, bailouts, and a slow-motion blowup.
It Would Cost Less Than Half To Put Inmates On Carnival Cruise Ships Than To Keep Them Locked Up In JailSubmitted by Tyler Durden on 04/10/2013 17:52 -0400
Virtual currencies are not the only ones having a bad day, at least in USD-denominated terms (which for all those bullish BitCoin, or Gold, or Silver the fiat-alternative currency, not the asset, should make all the difference in the world - alas most people still don't grasp the difference). Another entity that has seen better times is the terrifying accident-magnet also known Carnival Cruises. Following what seemed an endless barrage of TV crews scouring Carnival cruise ships, bringing a new definition to the term "poop deck", the inevitable has finally happened: CCL has been forced to admit that absent changing something very drastically, it is doomed. And since it can't or won't afford to spend billions on CapEx to actually repair and modernize its assets (like virtually every other S&P500 company), it has done the only thing it can: crush prices, and pray to make up for this in volume and impulse purchases what it is about to lose in cruise revenues. As Bloomberg reports, in order to "entice" customers to come back to the good life, Carnival is now offering a cruise at the low, low price of $38 a night, or less than a stay at a Motel 8.
The week ahead is light on major market moving data releases. From a policy perspective and in light of the recent moves in treasuries, FOMC minutes are likely to be followed by markets. Retail sales in the US are likely to print below consensus both on the headline and on the core metrics. That said, this needs to be seen against the backdrop of first quarter retail consumer spending data surprising to the upside. Producer prices are also likely to come in on the soft side of market expectations. Finally, do not expect large surprises from the U of Michigan consumer confidence.
If the economy is getting better, then why does poverty in America continue to grow so rapidly? Yes, the stock market has been hitting all-time highs recently, but also the number of Americans living in poverty has now reached a level not seen since the 1960s. Yes, corporate profits are at levels never seen before, but so is the number of Americans on food stamps. Yes, housing prices have started to rebound a little bit (especially in wealthy areas), but there are also more than a million public school students in America that are homeless. That is the first time that has ever happened in U.S. history. So should we measure our economic progress by the false stock market bubble that has been inflated by Ben Bernanke's reckless money printing, or should we measure our economic progress by how the poor and the middle class are doing? Because if we look at how average Americans are doing these days, then there is not much to be excited about. Unfortunately, that bubble of false hope is not going to last much longer. In fact, we are already seeing signs that it is getting ready to burst.