- Putin Doesn't Rule Out Sending Troops (WSJ)
- Japan Cuts Economic View on Tax Rise (WSJ)
- No "harsh weather" in Chipotle restaurants where comp store sales rose 13.4% (PR)
- No sanctions for you: EU sanctions push on Russia falters amid big business lobbying (FT)
- Consumer Spending on Health Care Jumps as Obamacare Takes Hold (BBG)
- China Seen Cracking on Property Controls (BBG)
- Google, IBM results raise questions about other tech-sector companies (Reuters)
- California city evacuation lifted after military ordnance found (Reuters)
- For Obama, Standoff With Moscow Jumbles Plans at Home and Abroad (WSJ)
- Three dead in shootings at Kansas Jewish centers; man to face charges (WSJ)
- Sanctions Blowback in Russia Targets Burgers to Movies (BBG)
- Deadly Virus's Spread Raises Alarms in Mideast (WSJ)
- China group buys $6bn Glencore Peru copper mine (BBG)
- Iran lodges complaint against United States over U.N. envoy ban (Reuters)
- Russian assets down sharply on Ukraine conflict fears (Reuters)
- ECB comments knock euro, but not much (Reuters)
- World-Leading $25 Hourly Wage Roils Swiss Businesses (BBG)
After a selloff as violent as that of last night, usually the overnight liftathon crew does a great job of recovering a substantial portion of the losses. Not this time, which coupled with the sudden and quite furious breakdown on market structure, leads us to believe that something has changed rather dramatically if preserving investor confidence is not the paramount issue on the mind of the NY Fed trading desk. Nikkei 225 (-2.38%) suffered its worst week since March'11 amid broad based risk off sentiment following on from a lower close on Wall St. where the Nasdaq Biotech index suffered its largest intra-day decline since August 2011. Negative sentiment carried over into European session, with stocks lower across the board (Eurostoxx50 -1.17%) and tech under performing in a continuation of the recent sector weakness seen in the US. JP Morgan (JPM) due to report earnings at 7:00AM EDT and Wells Fargo (WFC) at 8:00Am EDT.
- Nato chief defends eastern advance (FT)
- Russia looks east as it seeks to rebalance trade interests (FT)
- Plane from Guinea briefly quarantined in Paris after Ebola scare (AFP)
- US attacks Japan’s stance on Trans-Pacific Partnership (FT)
- Thank you IMF: Ukraine PM says will stick to austerity despite Moscow pressure (Reuters)
- U.S. Army seeks motive for Fort Hood shooting rampage (Reuters)
- China Slowdown Adds to Emerging-Market Growth Hurdles, IMF Says (BBG)
- Top investors press Allianz to step up oversight of Pimco (Reuters)
- U.S. to Evaluate Role in Mideast Peace Process, John Kerry Says (WSJ)
- Scientists dismiss claims that Yellowstone volcano about to erupt (Reuters)
- Ukraine detains 12 riot police on suspicion of 'mass murder' (Reuters) - on CIA orders?
As the Ukrainian crisis festers and other dangers in the Pacific and the Mideast grow, an odd consensus among alternative analysts is taking hold — namely the belief that President Vladimir Putin and Russia represent some kind of opposition to globalization and the rule of corporate financiers. Perhaps moments in Putin’s rhetoric have seduced elements of the Liberty Movement into assuming that Russia is a “victim” in the grand schemes of Western oligarchy and that Russia is truly the "white knight", the underdog willing to stand up against the New World Order. We're sorry to say that nothing could be further from the truth. Russia is just as much a tool of the global elite today as it was after the Bolshevik Revolution, and Vladimir Putin is just as much a socialist puppet as Barack Obama.
- Russia says expects answers on NATO troops in eastern Europe (Reuters)
- Dealers say GM customer anxiety rising, sales may take hit (Reuters)
- China Unveils Mini-Stimulus Measure (WSJ)
- Londoners Priced Out of Housing Blame Foreigners (BBG)
- New earthquake in Chile prompts tsunami alerts (Reuters)
- Ukrainian Billionaire Charged by U.S. With Bribe Scheme (BBG)
- Chinese Investments in U.S. Commercial Real Estate Surges (BBG)
- Old Math Casts Doubt on Accuracy of Oil Reserve Estimates (BBG)
- US secretly created 'Cuban Twitter' to stir unrest (AP)
- US, Russia talks fail to end Ukraine deadlock (AP)
- Russian forces 'gradually withdrawing' from Ukraine border (AFP)
- Turkish PM Erdogan tells enemies they will pay price after poll (Reuters)
- And Goldman arrives: Credit markets open to Argentina for first time in years (Reuters)
- Regulators Twice Failed to Open GM Probes (WSJ)
- Bad loan writedowns soar at China banks (FT)
- Investors Breathe Life Into European Banks' Bad Loans (WSJ)
- Euro zone inflation drops to lowest since 2009 (Reuters)
- Yellowstone National Park rattled by largest earthquake in 34 years (Reuters)
- Putin Threatened With More Sanctions as Russia Out of G-8 (BBG)
- China Faces ‘Mini Crisis’ on Debt Defaults, Ex-PBOC Adviser Says (BBG)
- Don't laugh too hard: Obama to propose ending NSA bulk collection of phone records (Reuters)
- SEC Is Probing Dealings by Banks and Companies in Loan Securities (WSJ)
- Japan GPIF asset review not aimed at supporting domestic stocks (Reuters)
- Chinese families clash with police, slam Malaysia over lost plane (Reuters)
- Russian Capital Flight Surges in First Quarter, Fueled by Ukraine Crisis (WSJ)
- Democrats ditch Nate Silver after data whiz predicts dismal midterm outcome (DN)
- China’s Urbanization Loses Momentum as Growth Slows (BBG)
With the list of high-ranking US officials running dry, it appears Russia has turned its attention, in the tit-for-tat sanction battle, to Canada. Following Canada's sanctions against 10 top Russian an Ukrainian officials last week, Russia has placed travel bans on 13 Canadian lawmakers and officials.
- *RUSSIA SETS SANCTIONS AGAINST 13 CANADIANS IN RETALIATORY STEP
The list includes aides to PM Harper and the head of the Ukrainian Canadian Congress, and is, according to Russia's foreign minister, a response to the "unacceptable action by the Canadian side that has inflicted serious damage to bilateral relations."
It was another day of ugly overnight macro data, all of it ouf of China, with industrial production (8.6%, Exp. 9.5%, Last 9.7%), retail sales (11.8%, Exp. 13.5%, Last 13.1%) and fixed asset investment (17.9% YTD vs 19.4% expected) all missing badly and confirming that in a world of deleveraging, the Chinese economy will continue to sputter. Which is precisely what the "bad news is good news" algos needs and why futures levitated overnight: only this time instead of latching on to the USDJPY correlation pair, it was the AUDJPY which surged after Australia - that Chinese economic derivative - posted its third best monthly full-time jobs surge in history! One can be certain that won't last. But for now it has served its purpose and futures are once again green. How much longer will the disconnect between deteriorating global macro conditions and rising global markets continue, nobody knows, but sooner rather than later the central planner punch bowl will be pulled and the moment of price discovery truth will come. It will be a doozy.
Moments ago, the Senate was supposed to vote through Debo Adegbile, Obama's nominee for the civil rights division at the Department of Justice and who represented cop killer Mumia Abu-Jamal. It failed, when the Democrats in the Senate couldn't get enough votes to pass a simple majority with 8 Democrats voted against Adegbile: Casey, Coons, Donnelly, Manchin, Walsh, Heitkamp, Pryor. Reid voted no in order to reconsider nom later.
For the second night in a row, China, and specifically its currency rate which saw the Yuan weaken once more, preoccupied investors - and certainly those who had bet on endless strenghtening of the Chinese currency - however this time it appeared more "priced in, and after trading as low as 2000, the SHCOMP managed to close modestly green, which however is more than can be said about the Nikkei which ended the session down 0.5%. Still, the USDJPY was firmly supported by the 102.00 "fundamental" fair value barrier and as a result equity futures, which had to reallign from tracking the AUDUSD to the old faithful Yen carry, have been propped up once more and are set to open at all time highs. If equities fail to breach the record barrier for the third time in a row and a selloff ensues after the open in deja vu trading, it will be time to watch out below if only purely for technical reasons.
- Carl Icahn wins again: Actavis to Buy Forest Labs for $25 Billion (WSJ)
- ECB governing council member attacks German court ruling on OMT (FT)
- China Tackles $1 Trillion Data Gap as Xi Changes Metrics (BBG)
- FX Traders Facing Extinction as Computers Replace Humans (BBG)
- BOJ Boost to Loan Programs Signals Room for More Easing (BBG) - actually no it doesn't as it was "factored in"
- Four killed in Thai clashes; PM to face charges over rice scheme (Reuters)
- Goodbye unsterilized SMP: Bundesbank Backs Measure to Boost Funds in Banking System (WSJ)
- Iranian Hacking to Test NSA Nominee Michael Rogers (WSJ)
- Ukraine Clashes Leave Dozens Wounded as Putin Resumes Bailout (BBG)
XKCD published this cartoon in reference to ESPN and the like, but it’s even more applicable to CNBC and its ilk. Just to be clear, I’m not slamming these hosts and traders. I’m sure that they are overwhelmingly smart, honest people who believe that what they say are useful truths from their own perspectives. They are not hypocrites. But they are performers. And like any performer, there is a larger game being played with their words. The larger meaning of the statements made on CNBC has absolutely nothing to do with specific investment advice or news. CNBC really could not care less about the actual content of what is being said. The purpose of CNBC’s game is not to tell you WHAT to think, but HOW to think, that thinking about investing in terms of some sell-side analyst’s anodyne story about fundamentals or some trader’s breathless story about open option interest is smart or wise or what all the cool kids are doing. Why? Because CNBC can create inexpensive content essentially at will to fill this demand, allowing them to sell advertisements and take cable carriage fees.
Confirming the floating rumor from last week that yet another Wall Streeter from a bailed out company is going to set US economic policy, moments ago the Treasury announced that indeed the Citigroup economist Nathan Sheets - the bank's global head of international economics - will start working next week as a counsellor to U.S. Treasury Secretary Jack Lew. This is the same Sheets, who ten days ago wrote that "our empirical work presents evidence that over the next few years, 10-year U.S. Treasury yields are likely to move toward 5 percent (slightly above our projections for nominal GDP growth) and to stabilize near that level. Our work suggests that Japanese rates may be on a sharply rising trajectory as well, if policymakers there get traction in taming the deflationary demons that have plagued the economy." We already know why the Treasury likes him so much.