8.5%

While New Zealand's stock market is the 3rd smallest among AsiaPac exchanges, it is not immune from the "glitches" even the largest exchanges have become used to in the new normal era of 'liquidity providers'. For the 2nd time this month, equities trading in New Zealand (the entire market) is halted after a "technical fault" at the operator of the exchange. As one trader noted understatedly, "there seems to be a reasonably regular occurrence of issues, which is a bit of concern."

When one thinks of millionaires and billionaires, the countries USA, China and UK usually come to mind. And while in terms of absolute numbers of millionaires and ultra high net worth individuals (those with more than $100 million in assets) this would be correct (and since these countries also have the greatest number of poor people too, it merely confirms the record gap between the rich and poor), a very different view emerges when observing the world's uber wealthy not on an absolute but relative basis. In that case, when ranked by millionaires as a proportion of the population, the top three nations are Qatar, Switzerland and Singapore where millionaires account for more than 10% of all households, while a ranking of the most UHNW individuals per 100,000 households gives Hong Kong, Switzerland and Austria in the top three spots.

Every now and again the apparatchiks who dutifully tend Washington’s statistical sausage factories accidently let loose a damning picture of what actually goes on inside. In that vein the BLS has just published the equivalent of a smoking gun. Namely, a study showing that in 2013—the year of 32% stock returns—the business sector of the US economy generated no more labor hours than it did way back in Bill Clinton’s blue dress period (1998) yet purportedly produced 42% more output in real terms... Stated different, the truth about the Fed’s dangerously misguided ZIRP policy is that it generates a ZIRP economy.

As reported yesterday, Former Microsoft CEO Steve Ballmer appears set to be the new owner of the LA Clippers, or Clippys as they are now known, paying the record-shattering price for a basketball team of $2 billion, which is the second largest price ever paid for a US team second only to the $2.1 billion paid for the Dodgers. Considering recently Forbes estimated the value of the same team at $575 million, Ballmer appears set to overpay massively, with a premium that matches any of the ridiculous social networking deals we have seen in recent months. But is this the first time that Ballmer, either as an individual or as a CEO, has overbid? Hell no. In fact, as the following list by WSJ's Paul Vigna shows, the only question when analyzing Ballmer's horrendous track record at estimating fair value of underperforming assets is "where does one begin."

The IMF has lied (about 'not' proposing a 71% income tax) and has been shown as a serial over-optimistic forecaster (world growth disappointments and hockey sticks) but the simply incredible hope that Christine Lagarde's PhDs created in their growth expectations for Ukraine make their Greece "Oops" moment look like nothing. As CFR rebukes, we see the IMF’s growth forecasts for Ukraine and Greece not as forecasts at all, but rather as assumptions necessary to justify the IMF’s interventions. Credibility -> 0.

After 'billing' Ukraine this morning, Gazprom must be jubilant this evening as news exudes from Washington that...

• *IMF APPROVES UKRAINE LOAN OF $17 BLN OVER TWO YEARS
• *UKRAINE EXPECTS FIRST TRANCHE OF IMF AID MAY 5-MAY 8: FIN MIN

But,

• *IMF SAYS IMMEDIATE UKRAINE LOAN DISBURSEMENT TO BE $3.2 BLN

So that won't even cover the $3.49bn they already owe to Gazprom? (In fact, $2.2bn is approved for dissemination to Gazprom)

Just weeks after the Fed signed off on CCAR and ackowledged how great the US banking system is, Bank of America (after being slapped with another $13bn RMBS suit demand) has ackowledged things are not quite as risy as they appeared.

BOFA HAD INCORRECT ADJUSTMENT ON TREATMENT OF SOME NOTES; BOFA SUSPENDS CAPITAL ACTION PLAN ON CHANGE IN CAPITAL RATIOS
BAC SEES REVISED CAPITAL ACTIONS LESS THAN PREVIOUSLY ANNOUNCED; BAC WILL ENGAGE THIRD PARTY TO REVIEW PROCESSES

So no buyback boost... no dividend boost... The question now is - how do we (or The Fed) trust any of the numbers?

The coming week will be busy in terms of data releases in the US; highlights include an improvement in consumer confidence, anemic 1Q GDP growth, and solid non-farm payrolls (consensus expects 215K). Wednesday brings advanced 1Q GDP - consensus expected a pathetic 1.1% qoq, on the back of what Goldman scapegoats as "weather distortions and an inventory investment drag", personal consumption (consensus 1.9%), and FOMC (the meeting is not associated with economic projections or a press conference). Thursday brings PCE Core (consensus 0.20%). Friday brings non-farm payrolls (consensus of 215K) and unemployment (6.6%). Other indicators for the week include pending home sales, S&P/Case Shiller home price index, Chicago PMI, ADP employment, personal income/spending, and hourly earnings.

• Ukraine's leaders say have U.S. backing to take on 'aggressors' (Reuters)
• Goldman Sachs Stands Firm as Banks Exit Commodity Trading (BBG)
• Obama reassures Japan, other allies on China as Asia trip begins (Reuters)
• China Challenges Obama’s Asia Pivot With Rapid Military Buildup (BBG)
• Google’s Stake in $2 Billion Apple-Samsung Trial Revealed (BBG)
• No bubble here: Numericable Set to Issue Record Junk Bond (WSJ)
• 'Bridgegate' scandal threatens next World Trade Center tower (Reuters)
• Supreme Court Conflicted on Legality of Aereo Online Video Service (WSJ)
• Barclays May Cut 7,500 at Investment Bank, Bernstein Says (BBG)

There’s been some buzz recently about a pick-up in business lending. Unlike some pundits, though, we’re not convinced that a surge in business credit is such a good thing. We don’t doubt that more lending to small businesses, in particular, might do some good if it doesn’t go too far. Lending to large corporations, on the other hand, is a different story. Corporations are already borrowing at a pace that’s only before been seen near cyclical peaks...

After a solid day for risk yesterday, surging higher on a continuation of the rumor that Japan's economy will deteriorate so much the BOJ will have to print more money (even though overnight ex BOJ governor Sekido said Kuroda won't print more) we have a more cautious tone this morning heading into the Easter long weekend. A double earnings miss from Google and IBM following the US market close, comments from the Chinese Premier suggesting that the government will keep its policy settings unchanged, and a press conference from Russia’s President Putin in which the Russian president as expected, has refused to back down, has put a small dampener on sentiment today. Add the fact that due to Good Friday April equities Op-Ex will take place today and trading in the next 9 hours promises to be more unrigged than ever, especially if the NY Fed trading desk manages to slam the VIX into single-digit territory

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.

After warning that hardware is dead, my thesis has foreshadowed the slashing of the equity values of Apple, Blackberry, Samsung, Nokia and HTC despite the fact that the sell side has said otherwise. Now I've enabled the whole world to profit on the premise

The hedge fund slaughter continued for a second week in a row, and now we know at least one of the parties that was liquidating - curious which hedge fund is unwinding (the first of many)? Here is the answer: "On an investor call Thursday, Mr. Citrone said Discovery had reduced the amount of risk it was taking and that he remained confident that U.S. growth was accelerating." More importantly, for those curious where the pain will continue to be focused as the HF unwind accelerates, here are the most held long hedge fund positions which if indeed the unwind has begun, will be slaughtered in the coming days.

• GM enters harsh spotlight as Congress hearings begin (Reuters)
• Facebook's Zuckerberg earns $3.3bn through share options (BBC)
• Sheryl Sandberg has sold more than half her stake in FaceBook (FT)
• Chinese Dragnet Entangles Family of Former Security Chief, Zhou Yongkang (WSJ)
• NHTSA chief: GM did not share critical information with U.S. agency (Reuters)
• Citigroup uncovered rogue trading in Mexico, fired two bond traders (Reuters)
• Corporate America’s overseas cash pile rises to $947bn (FT)
• Thai anti-government protester killed, rekindling political crisis (Reuters)
• China Milk Thirst Hands U.S. Dairies Record 2014 Profits (BBG)
• Caterpillar accused of ‘shifting’ profits (FT)
• New iPhone 6 screens to enter production as early as May (Reuters)