Toyota

Feds Probe GM Over Ignition Problem Bankruptcy Fraud

Not only is GM facing record high inventories of slow-to-sell cars and the recall of million sof its cars (and a sale halt), Reuters reports that the terrible ignition switch problem - that has caused 13 deaths - may have been known about (and not disclosed) prior to the bankruptcy (and subsequent taxpayer bailout). The Justic Department is investigating whether GM understated (or hid) the information from regulators and committed bankruptcy fraud.

Frontrunning: March 21

  • Australia says nothing spotted in search for plane (AP)
  • Putin looks to Asia as West threatens to isolate Russia (Reuters)
  • China Billionaire Builds Metals With Dreyfus, Glencore Hires (BBG)
  • China Beige Book Says Economy Slowing (BBG)
  • Caterpillar Said to Be Focus of Senate Overseas Tax Probe (BBG)
  • US Cancels Summit With Divided Group of Gulf Nations (WSJ)
  • Cyprus defense minister suffers aneurysm (AP)
  • Abe to zero in on economy as tax hike looms (Nikkei)
  • Europe strikes deal to complete banking union (Reuters)

Frontrunning: March 20

  • Possible debris off Australia a 'credible lead' for missing Malaysia jet (Reuters)
  • Maldives and Afghanistan: Theories Blossom for Airliner (BBG)
  • Ukraine Military Concedes on Crimea as Russia Takes Hold (BBG)
  • Asia Stocks Drop on Fed; H-Share Index Enters Bear Market (BBG)
  • Scientists say destructive solar blasts narrowly missed Earth in 2012 (Reuters)
  • GM’s Ignition Victims Need Help From Bankruptcy Judge (BBG)
  • U.S. Alleges Inside Traders Used Spycraft, Ate Evidence (WSJ)
  • God Meets Profit in Obama Contraceptive Rule Court Case (BBG)

Frontrunning: March 19

  • How Putin Parried Obama's Overtures on Crimea (WSJ)
  • West Readies Tighter Sanctions After Russia Seals Crimea Claim (Bloomberg)
  • Putin says U.S. guided by 'the rule of the gun' in foreign policy (Reuters)
  • JPMorgan Said to Agree on Commodities Unit Sale to Mercuria (BBG)
  • Short Sellers Target Chinese Developers as Rout Deepens (BBG)
  • HFT finally under the spotlight: High-Speed Trading Firms Face New U.S. Scrutiny (WSJ)
  • Chinese Dollar Bond Investors Demand Higher Yields After Default (BBG)
  • According to Joe LaVorgna it's the snow's fault: Deutsche Bank Said to Plan Job Cuts at Investment Bank (BBG)
  • Israeli airstrikes kill 1 Syrian soldier, wound 7 (AP)

Frontrunning: March 17

Putin Is No Mad Man to Russians as Power Play Trumps Economy (BBG)
Alibaba picks U.S. for IPO; in talks with six banks for lead roles (Reuters)
Russia hearts selling German energy: Billionaire Fridman’s L1 Buys RWE Unit for $7.1 Billion (Bloomberg)
Malaysia plane search straddles continent as police focus on crew (Reuters)
Saudi Crown Prince’s visit to China set to bolster investment (Al-Awsat)
Bugatti-Driving 26-Year-Old Tied to Penny-Stock Website (BBG)
Vodafone agrees $10 billion deal to buy Spain's Ono (Reuters)
The Hidden Rot in the Jobs Numbers (WSJ)
SocGen Ex-Trader Kerviel Walks to Forget Loss as Judgment Looms (BBG)
U.S. Banks’ $75 Billion Payout at Stake in Fed Tests (BBG)

How Bitcoin's Not So Secret Satoshi Nakamoto Was Discovered (Hint: Phone Book)

Newsweek claims to have identified the mysterious creator of Bitcoin. Satoshi Nakamoto - long believed to be a pseudonym - was hunted down through searches, conversations, and national archives: "It was only while scouring a database that contained the registration cards of naturalized U.S. citizens that a Satoshi Nakamoto turned up whose profile and background offered a potential match. But it was not until after ordering his records from the National Archives and conducting many more interviews that a cohesive picture began to take shape."  

Some remain skeptical that Newsweek have found him but making such a bold claim is aggressive and comments from Bitcoin lead developer Gavin Anderson suggest this is the real Satoshi.

 

Frontrunning: March 4

  • No need to use military force in Ukraine for now: Putin (Reuters)
  • Russia Orders Drill Troops Back to Bases (WSJ)
  • Ukraine premier agrees to reforms for aid package (FT)
  • Japan Base Wages Rise for First Time in Nearly Two Years (WSJ)
  • Only the algos are trading: Citigroup Joins JPMorgan in Seeing Trading-Revenue Drop  (BBG)
  • Vietnam sends blogger to prison for critical posts (AP)
  • At White House, Israel's Netanyahu pushes back against Obama diplomacy (Reuters)
  • Obama to offer new tax breaks for workers in election year budget pitch (Reuters)
  • China Banks Show Too-Connected-to-Fail Link to Shadow Loans (BBG)
  • Ex-BOK Deputy Lee Named to Head South Korea Central Bank (BBG)
  • No mortgage origination problem in the UK: Mortgage approvals climb to six year high (Telegraph)

A Tale Of Two Winters

Presenting the US car market this cold, stormy, sunny, dry, and rainless winter according to "The Haves... and The Have-Nots..."

Frontrunning: February 13

  • Comcast Agrees to Buy Time Warner Cable for $45.2 Billion (BBG)
  • Italian leadership squabble weighs as shares halt hot run (Reuters)
  • Russia says Syria aid draft could open door to military action (Reuters)
  • China trust assets rise 46% in 2013  (WSJ), China Trust Assets Surge to $1.8 Trillion Amid Default Risks  (BBG)
  • Australian Unemployment Jumps to 10-Year High (BBG)
  • Tea Party Scorns Republicans as House Lifts Debt Ceiling (BBG)
  • Peso plunge forces Argentine soya hoarding (FT)
  • BNP Paribas Net Falls After $1.1 Billion U.S. Legal Charge (BBG)
  • Hacking Joins Curriculum as Businesses Seek Cyber Skills (BBG)
  • Android's 'Open' System Has Limits (WSJ)
  • Blackstone-Fueled Single-Family Home Boom Lifts Chicago (BBG)

Porsche Sales Surge To Record - 3 Years Ahead Of Plan

It seems yet another (luxury) car maker did not get the "but it's the weather" memo. Following Mercedes record sales in January, Porsche has announced today that expects to hit a target of selling more than 200,000 sports cars next year, three years earlier than originally scheduled. As Reuters reports, Volkswagen-owned Porsche is entering the lucrative segment of compact SUVs with its new Macan model, which has already sold out about eight months of production ahead of its arrival at German dealerships on April 4. Wealth effect, of course, is all that matters... and the promise of higher minimum wages and a Maserati in every garage.

Frontrunning: February 12

  • Anti-Euro Party’s Le Pen Gains Supporters, French Poll Shows (BBG)
  • Carney Renews BOE Low-Rate Pledge to Fight Slack in Economy (BBG)
  • Bank of England hints at 2015 rate rise (Reuters)
  • ECB bond-buying intact and ready after court decision-Coeure (Reuters)
  • Canada scraps millionaire visa scheme, dumps 46,000 Chinese applications (SCMP)
  • Scrap this then? Vancouver facing an influx of 45,000 more rich Chinese (SCMP)
  • China's January Exports Power Higher, Up 10.6% (WSJ) ... and nobody believes the number
  • Emerging-Market Shakeout Putting Reserves Into Focus (BBG)
  • Wall Street's most eligible banker Fleming waits for suitor (Reuters)
  • Kazakh Devaluation Shows Currency War Stirring as Ruble Dips (BBG)

Frontrunning: February 11

  • Frustrated by Karzai, U.S. Shifts Afghanistan Exit Plans (WSJ)
  • Yellen Testimony Guide From Payrolls Report to Emerging Markets (BBG)
  • Gold hits three-month high, shares up ahead of Yellen (Reuters)
  • Tightfisted New Owners Put Heinz on Diet (WSJ)
  • Senator describes "gruesome" bin Laden photos (Reuters)
  • More reasons for the ongoing economic contraction: U.S. Winter Storm Seen Spreading Snow, Sleet Across South (BBG)
  • Barclays Cuts Up to 12,000 Jobs as Quarterly Profit Falls  (BBG)
  • Boeing Considering 787-Size Medium-Range Jetliners (WSJ)
  • AOL Chief Apologizes for ‘Distressed Babies’ Comment (BBG)

Frontrunning: February 10

  • Yellen's first test (Reuters)
  • Let weak banks die, says eurozone super-regulator (FT)
  • Yellen, Carney Face Explaining Policy as Benchmarks Near (BBG)
  • Commerzbank Said Seeking Debt Buyers in $6.8 Billion Spain Exit (BBG)
  • Junk Yield Premiums Soar on China’s Looming First Default (BBG)
  • Millions Trapped in Health-Law Coverage Gap (WSJ)
  • Mandel Tops Best-Earning Hedge Funds for Clients in 2013 (BBG)
  • Swiss Brace for Sour EU Relations After Immigration Vote (BBG)
  • Detroit Bankruptcy Talks to Resume (WSJ)

Frontrunning: February 5

  • Goldman to Fidelity Call for Calm After Global Stock Wipeout (BBG)
  • Turnabout on Global Outlook Darkens Investor Mood (Hilsenrath)
  • EU Said to Weigh Extending Greek Loans to 50 Years (BBG)
  • Second Storm Hitting Northeast Halts Planes, Schools (BBG)
  • Small Banks Face TARP Hit (WSJ)
  • As Sony prepares PCs exit, pressure mounts for reboot on TVs (Reuters)
  • IBM Uses Dutch Tax Haven to Boost Profits as Sales Slide (BBG)
  • ECB faces dilemma with inflation drop (FT)
  • London Subway Strike Snarls Traffic as Union Opposes Cuts  (BBG)

Markets On Edge, Follow Every USDJPY Tick

It is still all about the Yen carry which overnight tumbled to the lowest level since November, dragging the Nikkei down by 4.8% which halted its plunge at just overf 14,000, only to stage a modest rebound and carry US equity futures with it, even if it hasn't helped the Dax much which moments ago dropped to session lows and broke its 100 DMA, where carmakers are being especially punished following a downgrade by HSBC of the entire sector.  Also overnight the Hang Seng entered an official correction phase (following on from the Nikkei 225 doing the same yesterday) amid global growth concerns and has filtered through to European trade with equities mostly red across the board. Markets have shrugged off news that ECB's Draghi is seeking German support in the bond sterilization debate, something which we forecast would happen a few weeks ago when we pointed out the relentless pace of SMP sterilization failures, with analysts playing down the news as the move would only add a nominal amount of almost EUR 180bln to the Euro-Area financial system. Elsewhere, disappointing earnings from KPN (-4.3%) and ARM holdings (-2.5%) are assisting the downward momentum for their respective sectors.