I contend that Lewis should have done a lot more to identify the parties involved and tell the full story of latency arbitrage in Sigma X.
Apparently doing away with diplomatic pleasantries, the Chinese have been directly clear with Chuck Hagel as he lays the groundwork for President Obama's Asia trip later this month (scheduled to visit Japan, Malaysia, and the Philippines - all in direct territorial conflicts with China). As Reuters reports, "Obama needs to pay serious consideration to this issue when he comes to Asia... China has already put this message across during the meetings with Hagel," said Ruan Zongze, a former diplomat with the China Institute of International Studies in Beijing, a think tank linked to the Foreign Ministry. "The United States is moving in a direction we don't want to see, taking sides with Japan and the Philippines, and China is extremely unhappy about this."
Another day another dismal headline of some killing spree and while the American people is becoming almost numb to these dreadful occurrences, this one was different. As Reuters reports, twenty people were injured, at least nine seriously, when a student at a Pittsburgh-area high school went on a stabbing rampage early on Wednesday. We are sure the administration is closely watching the events and considering what actions to take to ensure this does not happen again. The good news, for now, is that no one has died but indications are that these are very serious injuries.
Russia's Gazprom and China are poised to conclude a gas supply contract in coming weeks, the first in a series of energy projects planned between the two countries. "We’re working now to sign a gas contract in May," said Deputy Prime Minister Arkady Dvorkovich. "Consultations are continuing and Gazprom's leaders are holding talks with Chinese partners on the contract terms. We hope to conclude the contract in May and believe it should come into effect by the year end.
Symbolism is important and Putin may be sending the U.S. a message, in the aftermath of JP Morgan unilaterally deciding to block an official Russian wire transfer, regarding how they might use gold as a geopolitical weapon should economic and currency wars deepen ...
Another week, another Chinese default. A month after Chaori Solar's default turned on its head a long-held assumption that even high-yielding debt carried an implicit state guarantee, yet another Chinese firm has succumbed to the inevitable logic of lack of cash flows. As a reminder, a technical default late last month by a small construction materials firm, Xuzhou Zhongsen Tonghao New Board Co Ltd, was the first in China's high-yield bond market. However, in that case the guarantor of that bond eventually agreed to fund the required interest payment, resulting in the first bailout of the first high yield default. Still if Xuzhou doesn't want the distinction of the first Chinese HY default, many are lining up for that particular prize - such as a small manufacturer of polyester yarn based in China's wealthy Zhejiang province has declared bankruptcy, threatening its ability to meet an interest payment on a high-yield bond due in July.
- Top Medicare Doctor Paid $21 Million in 2012, Data Shows (BBG)
- Separatists build barricades in east Ukraine, Kiev warns of force (Reuters)
- Greece launches sale of five-year bond (FT)
- High-Frequency Trader Malyshev Mulls Accepting Outside Investors (BBG)
- U.S. defense chief gets earful as China visit exposes tensions (Reuters)
- GM Workers Who Built Defective Cars Fret About Recall (BBG)
- Kerry, Congress Agree: Superpower Status Not What It Was (BBG)
- Crimeans Homeless in Ukraine Seek Solace in Kiev Asylums (BBG)
- JPMorgan's Dimon says U.S. banks healthy, Europe lagging (Reuters)
Accounting tricks and manipulation of economic data is taking place globally and will contribute to people being misled regarding the true state of national economies and the global economy. The false sense of security seen before the global financial crisis has returned ... it can only end in tears ...
Update: as expected the denial of the propaganda didn't take long: PROTESTERS IN LUHANSK, UKRAINE, DENY HAVING EXPLOSIVES AND HOLDING HOSTAGES IN STATE SECURITY BUILDING
While the source of the most recent developments in the Ukraine is the country's state security services and should thus be taken with the usual mine of salt, Reuters is reporting that pro-Russian separatists have placed explosives in a building they seized in the eastern city of Luhansk and are using weapons to hold around 60 people against their will.
Despite Russia's veiled threat that any ongoing action against pro-Russian demonstrators had the potential to instigate civil war and bring action by the Russian forces, Ukraine's interior minister Arsen Avakov has announced, Reuters reports, that Ukraine has launched an "anti-terrorist" operation in the eastern city of Kharkiv and about 70 "separatists" have been arrested for seizing the regional administration building. Is this the red-line that Putin laid down last night?
- Russia's Gazprom says Ukraine did not pay for gas on time (Reuters)
- Ukraine Moves to Keep Control in East (BBG)
- Banks Set to Report Lower Earnings as Debt Trading Slumps (BBG)
- More DeGeners and Obama selfies needed: Samsung's lower first-quarter estimate highlights smartphone challenges (Reuters)
- Citi Is Bracing to Miss a Profit Target (WSJ)
- Another slam from GM? Safety group calls for U.S. probe of Chevy Impala air bags (Reuters)
- Japan drugmaker Takeda to fight $6 billion damages imposed by U.S. jury (Reuters)
- EU court rules against requirement to keep data of telecom users (Reuters)
- White House may ban selfies with president after Ortiz-Obama photo promotes Samsung (Syracuse)
“George Osborne is facing a backlash over plans to give his government unprecedented powers to dip into taxpayers’ bank accounts to seize unpaid tax debts.” The surreptitious and somewhat underhand manner in which the legislation was slipped in should give pause for concern. In that way, the measures are similar to the developing bail-in legislation in the UK which is gradually coming into place without any public debate or informed discussion.
The blog posts and defenses of high frequency trading in the past week have come with dizzying high frequency. Flash Boys has struck many a nerve; the truth can be a bitter pill at times. And of course, the pro-HFT defenses are all made by many who are very, very staked in the status quo of our market structure. Now, bloggers using twitter is one thing; conflicted insiders using television to make their HFT defenses are another.
There is a reasonably quiet start to the week before we head into the highlights of the week including the start of US reporting season tomorrow, FOMC minutes on Wednesday and IMF meetings in Washington on Friday. On the schedule for today central bank officials from the ECB including Mersch, Weidmann and Constancio will be speaking. The Fed’s Bullard speaks today, and no doubt there will be interest in his comments from last week suggesting that the Fed will hike rates in early 2015.
- The counter-HFT-attack begins with first target - dark pools: Dark markets may be more harmful than high-frequency trading (Reuters)
- Malaysia Jet Team Hears Pings Consistent With Black Box (BBG)
- At Toyota as Humans Steal Jobs From Robots (BBG)
- ‘Reverse Auctions’ Draw Scrutiny (NYT)
- Death knell sounds for Brazil’s economic strategy (FT)
- Technology Traders Head for the Exit as Put Trades Surge (BBG)
- NSA Uses Corporate News to Spread Propaganda and Silence Dissent (TruthDig)
- Holcim, Lafarge agree to merger to create cement giant (Reuters)
- Any minute now: Investment Jump Seen From Macy’s to Berkshire After 2013 Fizzle (BBG)
- India kicks off world's biggest election in remote northeast (Reuters)