- 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)
“Bail-in” means that the bank’s owners - the shareholders, and creditors - the bondholders and now even depositors, will be line to absorb losses banks will incur, before outside sources of finance may be called upon. Deposit confiscation cometh ...
While the law has been something the US government and General Motors have been willing to 'bend' or break in the past (absolute priority 'shifts' in bankruptcy), we suspect this latest move by Mary Barra's new GM will do more PR damage. Simply put, as many suspected given Barra's testimony and comments in the past, Reuters reports that General Motors Co will ask a bankruptcy court to block any litigation of the alleged deaths associated with the ignition switch problem since they are related to the automaker's pre-2009 bankruptcy. Of course, as we noted here, the Feds are probing the company over whether they knowingly committed bankruptcy fraud.
- Ukraine Says Russia Exporting ‘Terror’ Amid Eastern Push (BBG)
- Civil War Threat in Ukraine (Reuters)
- China Shoe Plant Strike Disrupts Output at Nike, Adidas Supplier (BBG)
- Mt Gox to liquidate (WSJ)
- Ex-Co-Op Bank Chairman Charged With Cocaine Possession (BBG)
- Goldman Sachs plans to jump-start stock-trading business (WSJ)
- Credit Suisse first-quarter profit falls as trading tumbles (Reuters)
- U.K. Unemployment Rate Falls to Five-Year Low (BBG)
- Lawmakers Back High-Frequency Trade Curbs in EU Markets Law (BBG)
- Yahoo's growth anemic as turnaround chugs along (Reuters)
- Spain ETF Grows as Rajoy Attracts Record U.S. Investments (BBG)
Pension funds over exposure to paper assets and lack of diversification has cost pension holders dearly in recent years. This will continue in the coming years with attendant consequences for pensions ...
- Ukraine forces move against separatists (FT)
- China GDP Gauge Seen Showing Deeper Slowdown (BBG)
- China Is Losing Its Taste for Gold (WSJ)
- Regulators Weigh Curbs on Trading Fees (WSJ)
- Obama, Putin Talk as Unrest Roils Eastern Ukraine (WSJ)
- Japan PM talks with BOJ chief, does not push for easing (Reuters)
- BRICS countries to set up their own IMF (RBTH)
- IMF Members Weigh Options to Sidestep U.S. Congress on Overhaul (WSJ)
- Zebra to Buy Motorola Solutions Unit for $3.45 Billion (BBG)
- Chinese Thunder God Herb Works as Well as Pain Therapy (BBG)
One can see that while the traditional 6:00 AM USDJPY buy program is just duying to resume aggressive upward momentum ignition, futures are still leery and confused by the recent post-open high beta selloffs. Then again, things like yesterday's ridiculous no news 3:30pm ramp happen and confused them even more just as momentum is about to take a downward direction. Stocks in Asia (ex-China) advanced amid a reversal in sentiment after Citigroup (+4.15%) inspired positive close on Wall Street, however Shanghai Comp (-1.4%) underperformed as concerns over GDP data on Wednesday following weak money supply data weighed on sentiment. Stocks remained on the back foot (Eurostoxx50 -0.42%), with Bunds supported by the release of lower than expected German ZEW survey and also ongoing concerns surrounding the stand-off between Ukraine/Russia. Short-Sterling bear steepened after UK CPI fell to its lowest level since October 2009, but house prices across Britain posted its biggest rise since June 2010, reviving concerns over an overheating market.
Late last night we asked if, as the Russian media had reported and only the Russian media, CIA director John Brennan had secretly visited Kiev over the weekend: "Brennan landed in Ukraine on Saturday under an assumed name and held a "series of secret meetings" with the country's "power bloc" Interfax reported, citing an unidentified official in the Ukrainian parliament. The person who said this to Interfax in a phone talk added that John Brennan came to Ukraine not under his real name. According to some yet unconfirmed information, the decision to suppress protesters in Slavyansk, a city in Ukraine's east, with force was advised to Ukraine's authorities by Brennan." One can further admit the meeting was "secret" - if only in intent - not only because of Brennan's assumed fake name (why the secrecy? but because until Russian Interfax- of all places - had reported about what is certainly a key meeting in a nation in which disinformation and counterpropganda is rife - Brennan's meeting was completely unmentioned by the US press. Until today, when moments ago White House speaker Jay Carner confirmed that indeed the CIA director was in Kiev last weekend.
Wheat, gas and palladium surge 3.3%, 2.4% and 1.7% respectively. Palladium surged for a fifth straight session to its highest since August 2011 on growing fears that supply would be hurt by more U.S. sanctions on top producer Russia and prolonged labour strikes in world number two producer, South Africa.
As was expected, so called Russian separatists completely ignored Ukraine's 0600 GMT ultimatum to hand over their weapons and give up, which means Ukraine now is in the clear, according to its leaders, to engage in the previously warned military "anti-terrorist" operation. As a result, as Reuters updates, "towns in eastern Ukraine on Monday braced for military action. As the 9 a.m. (07.00 a.m. BST) deadline issued by authorities in Kiev expired, a Reuters reporter in the flashpoint city of Slaviansk, where armed men had seized two government buildings, said there was no outward sign the rebels were complying with the ultimatum." Subsequent reports indicated that since the deadline passed, at least 4 people have been killed however since virtually no "factual" propaganda news out of Ukraine is to be believed, we would heavily discount this update.
- 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)
Futures are treading water once more now that Ukraine has stormed to center stage from the backburner after everyone was convinced Putin would let the situation cool off after annexing Crimea. Guess not. Adding the renewed geopolitical jitters to what has already been a beta stock bloodbath into a holiday shortened week assures some high volatility fireworks. Cautious sentiment was observed over in Asia (Nikkei 225 -0.36%) amid renewed fears that geopolitical tensions in Ukraine will flare up again following reports of exchange gunfire with pro-Russian militants. This sentiment carried over into the European session with stocks lower across the board (Eurostoxx50 -0.71%). EUR is lower after ECB’s Draghi said any further strengthening of the EUR would warrant further action by the ECB, including non-standard measures such as quantitative easing - it is amazing how frequently and often the Virtu algos still fall for Draghi's jawboning trick which has now become all too clear will never be implemented and certainly not if he keeps talking about it daily, as he does.
Ukraine Mobilizes Military, Gives Separatists Ultimatum; Russia Slams Escalation As "Criminal", Yanukovich Warns Of Civil WarSubmitted by Tyler Durden on 04/13/2014 21:29 -0400
If Russia's intention was to give Ukraine enough "escalation" rope with which to hang itself once again, it may have succeeded when a little over an hour ago acting president Oleksander Turchinov said in a televized address that Ukraine has mobilized its armed forces to launch a "full-scale anti-terrorist operation" against pro-Russian separatists. Furthermore, knowing the only real escalation Kiev can engage in is in the war of words department, Ukraine set an 0600 GMT Monday deadline for pro-Russian separatists to give up their weapons and leave buildings they have occupied in the east of the country, a presidential decree said. It is unclear if this would be the catalyst to launch the military operation, but should Kiev indeed bring in the army it is certainly clear that Russia will respond in kind.
Read Seymour Hersh’s devastating account of Obama’s Red Lines and Rat Lines and weep for the Republic. It is no more.
Ever since Goldman's anti-HFT Op-Ed less than a month ago, and since the even more recent full-hearted support by Goldman of Michael Lewis' most recent entry into the anti-HFT crusade (one promoting the Goldman-supported IEX exchange), one thing has been clear: the days of market structure in its current format are numbered. This was further confirmed after Goldman exited both its legacy Spear Leeds & Kellogg designated market making post at the NYSE, and is said to be winding down its market-dominating dark pool, Sigma X. Sure enough, Post reports that just three weeks after the Gary Cohn Op-Ed, the SEC is "preparing to remove some high-frequency trading firms."