Frontrunning: February 16

Tyler Durden's picture
  • Oil eases off highs after output freeze agreement (Reuters)
  • Saudis and Russia agree to oil output freeze, Iran still an obstacle (Reuters)
  • China Loses Control of the Economic Story Line (WSJ)
  • Obama starts work to pick Supreme Court justice amid political 'bluster' (Reuters)
  • The Never-Ending Story: Europe’s Banks Face a Frightening Future (BBG)
  • Apollo Global to buy security services company ADT for $7 billion (Reuters)
  • Anglo Hastens Retreat From Coal, Iron Ore as Losses Double (BBG)
  • Markets Putting Faith in QE4 (WSJ)
  • Technology stocks selloff may turn IPO chill into IPO freeze (Reuters)
  • Goldman Channels FDR's `Nothing to Fear' With Sell Gold Call (BBG)
  • Not in my backyard? Mainstream Scandinavia warily eyes record immigration (Reuters)
  • Japan’s Banks Brace for Bleeding in Core Business as Negative Rates Kick In (WSJ)
  • Wait Two Years for That $65 Million Gulfstream Personal Jet (BBG)
  • Gordon and Bud Did It. Did You? Insider Trading Gets a Rethink (BBG)
  • Hedge funder’s attack on renminbi draws scrutiny and doubt (FT)
  • Fallen Giants Block Path to S&P Bull Market as Amazon Slumps (BBG)
  • New York police probe assault claim against Eliot Spitzer; lawyer disputes (Reuters)

 

Overnight Media Digest

WSJ

- HSBC PLC 's decision to keep its headquarters in the U.K. rather than move to Hong Kong is prompting soul-searching in this former British colony about its perception on the world stage. (http://on.wsj.com/1PB9NpA)

- General Dynamics Corp, Britain's BAE Systems PLC , and Germany's Rheinmetall AG, are among those lining up for the right to replace Australia's armored vehicles and tanks. (http://on.wsj.com/1PB9BH6)

- Japan's SoftBank Group Corp on Monday moved to bolster its share price beaten down by worries about U.S. mobile subsidiary Sprint Corp, saying it would buy back up to 500 billion Yen, or as much as $4.4 billion, of shares, its biggest repurchase ever. (http://on.wsj.com/1PB9Wtc)

- Brazil's southernmost state halted the use of a mosquito larvicide that an Argentine doctors' group warns could be behind the recent surge of babies born with microcephaly. (http://on.wsj.com/1PBa1gt)

 

FT

UK phone network operator Vodafone Plc and John Malone's cable company Liberty Global Plc agreed on Monday to form a 19 billion euros ($21.23 billion) mobile-and-cable operator in the Netherlands.

The Bank of England has rejected criticism from John Vickers, the chief architect of the UK's banking reforms, by denying that it had gone soft on UK banks or watered down his recommended minimum capital levels for Britain's biggest lenders.

The world's top two oil exporters Saudi Arabia and Russia will hold talks on Tuesday, according to a person familiar with the matter, as producers try to tackle a glut that has pushed prices to their lowest in over a decade.

 

NYT

- Paragon Offshore Plc, which operates offshore drilling rigs from the Gulf of Mexico to the North Sea, filed for Chapter 11 bankruptcy protection. Over the last 16 months, about 60 oil and gas companies have filed for bankruptcy as commodity prices slide, and that figure is expected to double in the coming months if prices remain low. (http://nyti.ms/1PNQeIO)

- Turmoil in global markets is making the yen rise in value again. That has resulted in big hits to the Japanese stock market and has raised worries among economists that Prime Minister Shinzo Abe will not be able to deliver the economic growth his country needs to get back on track. (http://nyti.ms/1Tkti8n)

- Leo Van Munching Jr, whose stewardship of the importing company started by his father made the Dutch-brewed beer Heineken and its low-calorie sibling, Amstel Light, familiar brand names in the United States, passed away on Sunday. (http://nyti.ms/1mEhn8J)

- The multinational media and telecommunications conglomerate SoftBank said on Monday that it would buy back shares worth 500 billion yen ($4.36 billion), the biggest share repurchase it has ever made. (http://nyti.ms/1StTmiv)

 

Canada

 

 

Britain

The Times

The president of the European Central Bank rallied stock markets by pledging that it was "ready to do its part" to shore up the European economy from a rising tide of financial turmoil. (thetim.es/215xpYz)

Royal Dutch Shell reiterated its confidence in the North Sea oil industry as it sealed a 35 billion pound ($50.52 billion) acquisition of its rival BG Group and promised a rapid boost in output from Brazil. (thetim.es/1QhPCAx)

The Guardian

Mining giant Anglo American Plc's debt has been downgraded further into junk territory by Moody's, which cited a deterioration in commodities market conditions and doubts over how long it will take the company to reduce debt levels. (bit.ly/246aYFg)

Living standards in the UK have finally made up the ground lost as a result of the financial crash following the boost to incomes provided by rising employment and falling inflation, according to the Resolution Foundation. (bit.ly/1Lql2gD)

The Telegraph

Vodafone has agreed a deal with US cable giant Liberty Global to merge their Dutch operations. The UK mobile giant will pay Liberty, owned by billionaire John Malone, 1 billion euro ($1.12 billion) to "equalize ownership in the joint venture", according to a statement released on Monday night. (bit.ly/1Tk7nhO)

A botched set of negotiations on Britain's membership in the European Union could damage the eurozone, the European Central Bank president has warned. (bit.ly/1oF6Tr9)

Sky News

Supermarket chain Aldi will create 5,000 new jobs and open 80 new stores as part of its expansion plans in the UK. (bit.ly/20VDg6d)

Hornby shares have jumped by over a third after the company announced that it is parting company with Chief Executive Richard Ames. (bit.ly/1QEw3N8)

The Independent

HSBC could switch up to 1,000 jobs to Paris if Britain votes to exit the EU in the forthcoming referendum. (ind.pn/1SPXp9o)

 

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nmewn's picture

Pro forma senate, no recess Mitch, you fucktard. 

Cognitive Dissonance's picture

Deciding who will be the next SCOTUS judge will change the story line....but not the story.

<Regardless who is chosen, SCOTUS will always defend the state over the slaves. ALWAYS.>

open-range's picture
open-range (not verified) nmewn Feb 16, 2016 9:24 AM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.wallstreet34.com

overmedicatedundersexed's picture

how many members must the supreme court have??

well it's not quite cut and dry..ask ol FDR.

lawyers are held in high reguard for a good reason.

FranSix's picture

"Watsa’s new bet is on deflation.

Essentially, he bought several large derivative contracts that pay out if the consumer price index in certain countries dips below a specific number in the life of the contract.

Think of it like it’s an insurance deal. Watsa spends a fractionally small amount (approximately $650 million) to get paid $109 billion if deflation hits the United States, European Union, United Kingdom, or France in a major way by the year 2022. Sure, $650 million is a lot of money, but it’s way less than 1% of the projected payout. And the $109 billion potential payday will make a huge difference to a stock with a current market cap of $16.2 billion."

Click on the reader button as the page loads, or use an ad-free browser:

http://business.financialpost.com/investing/investing-pro/will-prem-wats...

Janet Shalom Bernanke's picture

For those investors who want to put a size 14" shoe up the ass of this corrupt central bank and the devastation they continue to cause,  learn about BEAR PUT SPREADS.

Where you BUY A PUT OPTION, and SELL A LOWER PUT OPTION to offset the cost of the put option that you bought.  It allows you to profit from a declining market, have a known maximum risk and reward, and allow peace of mind in the event that they animals are able to keep levitating this bubble market.   This can be done with OPTIONS on S&P 500 MINI FUTURES, or OPTIONS on the SPX, or via individual stocks (which I prefer least).

For example:

here is a trade which has a net potential profit of $850 per set, and a risk of $150 per set.

Buy a September 26 1820 Mini S&P PUT for a cost of $500 and Sell a September 26 1800 Mini S&P PUT and receive $350, 

If the market closes at or below 1800 by September 26, you collect $850 for each set you do, and if the market doesnt close below 1820, your max risk is $150 for each set that you do.

 

Read about options, and seek the help of a trained commodity trading advisor before investing since any trading involves risk of loss.  

 

NoPension's picture

Trade this market? Seriously, dude. Go to a casino. It's more fun, your odds are better and there is a buffet.

I remember signing for my first options trading account. I signed in about 10 differant spots, all basically saying the same thing, " I understand I'm an idiot, most likely will lose money, and do not hold the company responsible"

I'm an idiot. I'm and idiot. I'm an idiot. Trade this market? Oh yeah, go fuck the shit out of em, sport.

Edit; all that being so....if a wad of money came my way.... I'd trade futures and options so fast it would make your head spin.
It's a sickness.

Cautiously Pessimistic's picture

As expected, Turks and Saudis getting their fannies kicked in Syria.  As such, they are becoming desperate and will reach 'for a bridge too far' and then it will be on like donkey kong.  Funny how none of the mainstream media news channels say a word about any of this.  Yet, they seem to think it more important to report about Kanye's new album or who was best dressed at the Grammys.  Sometimes I wish I were like the clueless zombies all around me, either not aware, or just plain apethetic to things that we will all be made to care about.  I guess ignorance really is blissful??  Sigh.... 

Catullus's picture

30 years later and still no one knows what "insider trading" is. Because it's not a crime. It harms exactly no one. There's no tort. Even the other end of the trade you execute, that's a trade between consenting adults. Who cares what you think they know at the time of the trade. And if the other end of that trade is some algo, then fuck them. That's what you get for letting a computer trade for you.

NoPension's picture

It's just better information.

Martha Stewart musta pissed somebody off.

Free Jon Corzine.

CheapBastard's picture

View from Calgary: The bleeding continues in the oilpatch

http://business.financialpost.com/news/energy/view-from-calgary-the-blee...