Sirius XM

• Foreign Hostages Die in Algeria’s Battle With Terrorists (Bloomberg)
• The latest bank to soon join the currency wars: McCafferty Says BOE Must Keep Open Mind on New Policy Tools (Bloomberg)
• US debt talks complicated by timing (FT)
• BOJ eyes open-ended asset buying, agrees new inflation goal (Reuters)
• AmEx Says U.S. Card Income Fell 42% as Loss Provisions Increased (BBG)
• Call to raise age for US’s Medicare (FT)
• Obama Promise to Raise Middle Class Living Already Seen in Peril (BBG)
• China Exits Slowdown as Quarterly Growth Tops Forecasts (BBG) - actually, as new Politburo says to make it appear that way
• Britain to drift out of European Union without reforms (Reuters)
• Republicans weigh interim debt-limit hike (FT)
• Abe's aide says Japan shouldn't fret if yen falls to 100 vs dlr (Reuters) ... and it was 90 just a few days ago
• PBOC May Seek More Liquidity Operations (Dow Jones)

Expiring tax and expenditure policies, if not addressed, will likely trigger a US recession in early 2013 that will affect every citizen in the nation. It seems, however, that no matter how much the mainstream media talks about the cliff and its implications, the average-joe is still focused on who will win X-Factor and whether Maria Carey and Nikki Minaj will have a knock-down drag-out fight on American Idol. Into this breach - to educate everyone - steps Bloomberg Briefs' Joe Brusuelas with this excellent primer on the US Fiscal Cliff and its Debt. Notably the senior economist outlines the upcoming risks to the economy, from the pending fiscal shock and why those risks may be greater than policy makers or investors are acknowledging.

Back in the summer of 2010, when the SEC was still desperate to (laughably) scapegoat the May 6 Flash Crash on Waddell and Reed, in an attempt to telegraph to the public that it was in control of the HFT takeover of the stock market (an attempt which has since failed miserably as days in which there are no occult trading phenomena have become the outlier and have resulted in the wholesale dereliction of stock trading by retail investors), we first presented and endorsed the Nanex proposal that the flash crash was an "on demand" (either on purpose or by mistake) event, one which occurred as a result of massive quote stuffing which prevented regular way trading from occuring and resulting in a 1000 DJIA point plunge in minutes  (the audio track to which is still a must hear for anyone who harbor any doubt the market is "safe"). It turns out that in the nearly 3 years since that fateful market crash, not only has nothing been done to repair the market (ostensibly broken beyond repair and only another wholesale crash, this time without DKed trades, and bailed out banks, could possible do something to change the status quo) but the Denial of Service (DoS) attacks that HFT algos launch, for whatever reason, have become a daily occurrence as the following demonstrations from Nanex confirm beyond a shadow of a doubt.

• CEOs most optimistic on US profits since 1999 in bull signal for S&P 500: Bloomberg.
• China is 'available' to support Portugal through financial crisis, Hu says.
• China's trade surplus likely rebounded in October after narrowing in September.
• ECB rejects request for files on Greek derivative use, cites 'acute' risks.
• Euro falls as concern over Irish bond sales, Greece damps investor demand.
• G-20 conflict risk eases as US says current-account targets unrealistic.
• Oil extends longest rally since April as US jobs report beats forecasts.
• World Bank Chief: G20 should consider adopting a global reserve currency based on gold as part of structural reforms.
• World Bank’s IFC plans to offer benchmark debt in US dollars.
• AIG hopes to complete its government exit before year end. Posts $2.4B loss in Q3.

Missed the first Ira Sohn west conference? Here is your chance to catch the complete notes via BTIG's Mike O'Rourke. Presenters included John Burbank of Passport, Barry Rosenstein of Jana, Brian Zied of Bridge Capital, Mitch Julis of Canyon, Jeffrey Ubeen of ValueAct, Robert Rosner of Buena Vista Fund, John Taylor of the John Taylor Rule, Chris Chabris, and Richard Farber of Kayne Anderson. Ideas discussed include the future of the world, Dutch company TNT, Charles River Labs, Sirius XM, Valiant Pharma, Taiwan Semi, the Libor-OIS spread, Natty and Patriot Coal. So for all those who still hold on to the illusion that alpha is possible in this market, read on.

• Asian stock mostly higher on Monday with investors inspired by US gains on Friday.
• China: Will continue to buy Greek govt debt when the country reintroduces open sale.
• Dubai's Cityscape realty exhibition to start Monday amid oversupply fears.
• Europe put on terror raid alert; US & UK issue warnings to public and travellers.
• Greece's 2011 budget seeks reduction in deficit, return to bond markets.
• Silver advances to $22.21, highest level since 1980, on investor demand.
• Wen says China to boost local demand, maintain holdings of European bonds.

• Asian stocks rally as growth in US retail sales eases concern.
• China bought a record $7.9B in short-term Japanese debt in May
• EU stress tests will cover 91 banks, accounting for 65% of the area's banking industry. Assume bond value drop.
• Hoenig, Fisher say stimulus isn't needed to assure recovery.
• IMF sees rising risks slowing recovery pace.
• Japan's Machinery orders slump 9.1%, most since 2008.
• AES Corp announces a $500M stock repurchase program.
• BP aims to fix leaking Gulf of Mexico oil well by 27 July

• Asia may need capital controls to curb fx rise - ADB.
• China sees inflation quickening this Month to 3% 'trigger' point for rates: State agency.
• China's holdings of US Treasury securities totalled $895.2B in March, up 2% from Feb levels.
• EU finance ministers seek deficit cuts to ward off debt crisis threat.
• Euro weakens to near four-year low on economy; Most Asian stocks decline.
• FDIC has inherited CDOs with a face value of more than $400M from failed lending institutions.
• German governing parties call for financial transaction tax in Europe.

• Foreign investment in China up 25% in April amid growing interest in rebounding economy.
• Euro breaks 14-month low as debt-cutting steps may hurt growth.
• Hong Kong economy expands 2.4 percent in 1Q, fourth straight quarter of growth.
• India inflation eases to 9.6 percent in April, but food and fuel costs remain troublesome.
• Oil prices fell below $74/bbl amid expectations a slower economic recovery in Europe.
• Sales at U.S. retailers probably rose in April for a seventh straight month: Survey.

• Asia stocks, commodities fall on China tightening speculation.
• China’s stocks decline to five-week low on tightening concern.
• Debate brewing in OPEC over what its post-recession production might look like.
• EU finance chiefs to weigh Greek rescue as ministers seek to avoid bailout.
• Euro near 5-week high versus Yen on Greece bailout, BOJ policy.
• Consumer tax hikes hit Greece as EU to discuss debt crisis.
• The Federal Aviation Administration ordered airlines to perform an emergency inspection of some 600 Boeing 737 airplanes.

• Asian stocks advance for the first time in three days on higher metal prices, weak Yen.
• China money rates rise to the highest this year on signs government to rein in stimulus.
• Chinese Regulator orders some Chinese banks to limit loans due to insufficient capital.
• Chinese regulators expect its banks to issue about $1.1 trillion in new loans this year.
• Chinese shares fall on stimulus concern; Euro at four-month low on Greece.
• Euro slumped to four-month lows.
• Federal Housing Administration to announce more-stringent lending requirements, higher borrower fees on Wednesday.

• Asian markets rise after Wall Street rallies on positive economic data; HK up nearly 2 pct.
• Australia's central bank raises growth forecast, strongly hints at more rate hikes.
• China blasts US anti-dumping tariffs on steel pipe imports ahead of Obama visit.
• China criticizes US over pipe duties, launches auto probe ahead of first Obama visit.
• China shares rise for sixth day on better corporate earnings, ending week up 5.6 percent.
• Congress passes economic package helping jobless, homebuyers.

An amusing reminder of just how different opinions can be among (conflicted) finance professionals, was today's disclosure by risk evaluator Audit Integrity, which has put together a list of the twenty companies with a market cap over $1 billion most likely to file for bankruptcy. Among them: none other than Goldman Conviction Buy candidate, Textron Inc.

• Must read: California notice of defaults and foreclosures skyrocketing (Dr Housing Bubble)
• Canada decries "rising tide" of US protectionism (Reuters)
• Ahmadinejad re-elected; protests flare; JPM can not gun SPY as market closed (

• IG11: 206/208; S&P Fut below 800
• Trump files for bankruptcy (Bloomberg)
• Sirius XM gets $530 million investment from Liberty Media (Bloomberg)
• California, almost broke, nears brink (