- Global Stocks Bounce Back After Market Selloff; Asia Stumbles (WSJ)
- New Hampshire Bucks the Establishment to Back Trump and Sanders (BBG)
- Trump shows his U.S. presidential bid is no mere publicity stunt (Reuters)
- Clinton Is Outdone by a Competitor Once Considered a Fringe Candidate (WSJ)
- Deutsche Bank Jumps as Lender Said to Consider Bond Buyback (BBG)
- Bank Executives Leading Surge of Insider Buying Amid Stock Rout (BBG)
- January Jobs Report Closely Watched for Momentum, Wages (WSJ)
- Oil prices steady, weak fundamentals weigh after volatile week (Reuters)
- How Much Global Oil Output Halted Due to Low Prices? Just 0.1% (BBG)
- Congress Tweet 'Unfortunate,' Lawyer Says as Shkreli Goes Online (BBG)
- Syrians Flee Aleppo to Escape Damascus Offensive Against Rebels (WSJ)
- Dollar Set for Biggest Weekly Loss Since 2009 Before Jobs Data (BBG)
- EU Slashes 2016 Inflation Forecast to 0.5% as Growth Seen Slower (BBG)
- Bank of England cuts UK growth forecasts (FT)
- Investors Cast Wary Eye on Fed Rate Increases (WSJ)
- U.N. halts Syria talks as government closes in on Aleppo (Reuters)
- Credit Suisse Drops as Investment Bank Slump Deepens Losses (BBG)
- Six OPEC states ready for emergency meeting with non-OPEC members — Venezuela's minister (TASS)
As go the markets, so go the movies. According to the WSJ, Hollywood just had its biggest-ever year at the box office in 2015, collecting $11.1 billion in ticket sales, up 7% from the previous year and surpassing the record of $10.92 billion set in 2013. All of the growth, however, occurred at the top of the heap, or in other words, 2015 was a record year "thanks to a handful of blockbusters that left a whole lot of duds in the dust." In other words, just like in the stock market, a record high portion of Hollywood "gains", or rather box office ticket sales, came from just five movies.
- Splintered Spanish vote points to fraught coalition talks (Reuters)
- Brent Oil Falls to 11-Year Low in London as Global Glut Persists (BBG)
- Oil prices hit lowest since 2004 as supply balloons (Reuters)
- U.S. Probes Theranos Complaints (WSJ)
- Driver plows onto Las Vegas Strip sidewalk 'like bowling ball', one dead (Reuters)
- Yellen, Bull Markets and Extinction in a Seven-Year Stock Rally (BBG)
- How Iranian general plotted out Syrian assault in Moscow (Reuters)
- China FX reserves post record quarterly fall as cenbank steps up yuan support (Reuters)
- MSF calls for independent inquiry into U.S. attack on Afghan hospital (Reuters)
- Yen Advances as Bank of Japan Refrains From Adding to Stimulus (Reuters)
- Abu Dhabi Said to Explore Asset Sales After Slump in Oil Price (BBG)
- U.S. Oil Approaching $50 Boosts Stocks as Emerging Markets Surge (BBG)
That hasn’t stopped many gold bears from using this as an opportunity to disparage gold. A recent article points out that the gold rout has cost China and Russia $5.4 billion. An amount that would sound colossal were it not for the fact that U.S. media companies such as Disney and Viacom collectively lost over $60 billion for shareholders in as little as two days last week ...
During the most recent quarter debt issuance by US companies reached an all-time high, raising a question as to why companies still need to borrow so much after selling $7 trillion of U.S. debt securities since 2008. This weeks S&P Media index swoon leaves no doubt as to the answer. Companies have not been borrowing to grow; they have been borrowing in order to flush cash into the casino. Charles Ponzi once had a scheme that was not essentially different. Yes, and it worked until it didn’t.
“People are shooting first and asking questions later...this indiscriminate selling, to me, is just nuts," exclaims on billion-dollar AUM hedge fund CIO as media stocks faced a bloodbath this week. Small (illiquid) doors and large crowds do not mix well as Bloomberg reports, hedge funds own an average 9.7% of the 15 companies in the S&P Media Index - which has tumbled over 8% in 2 days - its biggest loss since 2008. Exuberant return chasing on merger speculation has reversed into panic-selling as Disney, Time Warner Inc., Fox, CBS and Comcast Corp. erased almost $50 billion of value in two days.
Here comes today's main event, the July non-farm payrolls - once again the "most important ever" as the number will cement whether the Fed hikes this year or punts once again to the next year, and which consensus expects to print +225K although the whisper range is very wide: based on this week's ADP report, NFP may easily slide under 200K, while if using the non-mfg PMI as an indicator, a 300K+ print is in the cards. At the end of the day, it will be all in the hands of the BLS' Arima X 12 seasonal adjusters, and whatever goalseeked print the labor department has been strongly urged is the right one.
It is unclear what catalyzed today's dump. Futures were briefly green at the open, then as if all hell broke loose and without an explicit catalyst (although the technical collapse of numerous "story stocks" which had been market leaders for months, both today and in recent weeks has not helped) the E-mini, and individual stocks, just took out level after level of bids and at last check the Dow has dropped to 6 month lows, the S&P is just barely green for the year, while the biggest pain is in the Nasdaq which has dropped as much as 2% intraday. Below we lay out the biggest losers from today's market drop.
- Only update software on down days: NYSE, SEC Suspect Software Update Triggered Trading Halt (BBG)
- Trade halts add to China’s Potemkin market problem (Reuters)
- Why Beijing’s Efforts Have Failed to Tame China’s Stock Market (WSJ)
- Irrational Exuberance Triggers Chaos as China Watchdog Sidelined (BBG)
- China bounce ends five-day losing streak for stocks (Reuters)
- Fear Grows in Greece as Decisive Hour Nears (WSJ)
- Once Swarming with Greek Visitors, a Bulgarian Town Reels as Business Languishes (WSJ)
- Greece Shuts Markets Through July 13 as Officials Debate Bailout (BBG)
- Germany calls for European defence sector consolidation (Reuters)
After Viacom's "Shocker", These Companies Are Most At Risk Of Early Terminating Their Stock Buyback ProgramsSubmitted by Tyler Durden on 04/07/2015 19:01 -0500
Yesterday afternoon Viacom revealed that as part of its "Strategic Realignment to Create Efficiencies and Drive Long-Term Growth" it would do something which the market loathes: it would stop its buybacks. Specifically it said that "Viacom will temporarily pause share purchases under its current $20 billion stock repurchase program in order to stay within its target leverage ratio." What Viacom meant was that just like IBM, its net debt ratio had likewise soared in the past several years, and had reached a level where the Baa2/BBB-rated company was on the verge of being cut to junk status. So is Viacom a harbinger for the broader market, a market which as we reported previously only, had a tremendous month of February only because of a record $100 billion in announced stock buybacks? The answer: a resounding yes.
- Israel, U.S. Lawmakers Press Case Against Iran Nuclear Deal (WSJ)
- Rand Paul tries to broaden libertarian appeal (Reuters)
- Fewer Oil Trains Ply America’s Rails (WSJ)
- Chicago voters go to polls in first ever mayoral runoff (Reuters)
- FedEx to buy TNT to expand Europe deliveries (Reuters)
- Mohamed El-Erian Has Most of His Money in Cash (BBG)
- In Surprise Move, Australia Holds Rates (WSJ)
- Oil falls as Iran, China discuss more supply (Reuters)