• Sprott Money
    03/27/2015 - 04:54
    At first glance, the title to this commentary seems facile, especially to those readers in higher income brackets. The reality, however, is that “investing in food” is a risk-free means of generating...

Wells Fargo

Tyler Durden's picture

Overnight Sentiment: Lower





There was little in terms of overnight newsflow to spook algos, but the tone is decidedly sour this morning following a lack of either the now traditional Japan or Europen-open buying ramps. The primary reason for this may well be the ongoing decline in the USDJPY which failed to breach the 100 barrier yesterday, coming as close as 99.95 before the Mrs. Watanabe onslaught had to be called off despite some more jawboning from Kuroda whose headlines are now summarily ignored, and which appears to have set a line in the sand for Japan, whose market naturally closed lower following this strengthening in its currency. Similarly troubling was the dip in the SHCOMP which closed down -0.58%, this despite the epic M2 and credit injection reported yesterday: if new liquidity can't send the market higher, what can?

 
rcwhalen's picture

Bank Earnings Taxed by QE2, Massive Regulation





Cost reductions and layoffs are the drivers for bank earnings... Watch those ski tips.  

 
Tyler Durden's picture

Frontrunning: April 11





  • Obama to report to his bosses today: Obama Meets With Blankfein, Dimon and Moynihan Today (BBG)
  • 2007 is here all over again: Seeking Relief, Banks Shift Risk to Murkier Corners (NYT)
  • Kuroda Calls BOJ Inflation Target 'Flexible' (WSJ)
  • Lagarde warns over three-speed world (FT)
  • N. Korea’s Retro Propaganda Calls U.S. Boiled Pumpkin (BBG)
  • Luxembourg To Ease Bank Secrecy Rule, Share Data In 2015 (BBG)
  • Bank of Korea Keeps Policy Steady (WSJ)
  • BOE Stimulus Dilemma Persists as Inflation Seen Higher (BBG)
  • EU Sounds Alarm on Spain (WSJ)
  • Qatar gives Egypt $3bn aid package (FT)
  • RBNZ Says Deposit Insurance May Increase Risk of Bank Failure (BBG)
  • Plosser Calls for Reducing QE Pace Citing Gains in Labor Market (BBG)
  • Obama budget aims to kick start deficit-reduction talks (Reuters)
 
Tyler Durden's picture

Fed Releases Names Of Early FOMC Minutes Recipients: Include Employees Of ECB, Goldman, Barclays, JPM, Law And PE Firms





We will release the full list of named recipients once we get it, but here is what we now for now, via BBG and CNN:

  • EMPLOYEES AT GOLDMAN SACHS, BARCLAYS, JP MORGAN, CITI, NOMURA, UBS, HSBC RECEIVED FED MINUTES EARLY YESTERDAY
  • MOST OF THE BANK EMPLOYEES APPEAR TO WORK IN GOVERNMENTAL RELATIONS (Lobbies)
  • ABA, SIFMA, SENATE STAFFERS RECEIVED FED MINUTES EARLY
  • FED NAMES 154 RECIPIENTS OF EARLY RELEASE OF FOMC MINUTES
  • FED MINUTES SENT EARLY TO BANKS, LAW FIRMS, PRIVATE EQUITY
  • FED EARLIER SAID RELEASE WENT MAINLY TO CONGRESS, TRADE GROUPS
  • NONE OF THE PEOPLE ON THE LIST ALERTED THE FED THAT THEY RECEIVED NONPUBLIC INFO A DAY EARLY

In other words: absolutely everyone who trades risk assets for a living.

 
Tyler Durden's picture

The Banks' "Penalty" To Put Robosigning Behind Them: $300 Per Person





Back in late 2010, there was much hope that as a result of the unfolding robosigning "Linda Green" scandal, not only would banks would be forced to fix their ways by incurring crippling civil penalties (because not even the most optimistic hoped any bankers would ever face criminal charges for anything), but that the US housing market may even reprice to a fair price as for a brief moment there nobody had any idea who owned what mortgage. Ironically, what did end up happening was to provide banks with a legal impetus to slow down the foreclosure process to such a crawl that an artificial backlog of millions and millions of houses at the start of the foreclosure process  formed, bottlenecking the foreclosure exits even more and in the process providing an artificial, legal subsidy to housing prices manifesting itself best in what is erroneously titled a "housing recovery" for many months now. What this did was to allow banks to aggressively reprice the mortgage-linked "assets" on their balance sheets much higher, and in the process unleash much capital, primarily for bonus and shareholder dividend purposes. Yet this epic self-benefiting act did not come without a cost. Yes, it turns out the banks will have to fork over some out-of-pocket change to put not only the robosigning scandal behind them but the indirect housing subsidy from which they have benefited to the tune of hundreds of billions. That quite literally change, which is what the final cost of the release and bank indemnity amounts to, is roughly $300 for each of the affected borrowers!

 

 
Tyler Durden's picture

Overnight Levitation Returns As The Elephant In The Room Is Ignored





With every modestly positive datapoint being desperately clung to, now that even Goldman's Hatzius has once more thrown in the economic towel after proclaiming an economic renaissance in late 2012 just like he did in late 2010 only to issue a mea culpa a few months later (and just as we predicted - post coming up shortly), the key prerogative is to ignore the elephant in the room. That, of course, is that the JPY 1 quadrillion bond market had to be halted for the second day in a row as the Japanese capital markets are fast becoming a very big and sad joke. The resulting flight to safety from Japanese investors, who sense that their own bond market is on the verge of breaking down completely, has managed to send French and Belgian bonds to record lows, the Spanish 2 Year to sub 2%, the German 6 month bill negative in the primary market, the US 10/30 year constantly bid and so on. The immediate result is that the bond-equity disconnect continues to diverge until one day we may get negative 10 Year rates coupled with an all time high stock market. Gotta love the fake New Normal market, in which the Japanese penny stock market was up another 2.8% to well over 13,000 even as the Shanghai Composite plumbs ever redder territory for 2013 on fears the birdflu contagion will hurt the already struggling economy even more.

 
Tyler Durden's picture

Frontrunning: April 5





  • George Soros: 'What Japan is doing is actually quite dangerous because" (BBG)
  • North Korea lacks means for nuclear strike on U.S., experts say (Reuters)
  • Yellen latest to hint about slowing of QE3 (FT)
  • Hollande approval rating hits new low (FT)
  • Hollande Dismisses Reshuffle as Crisis Hits Popularity (BBG)
  • Japan Upper house approves full 5 year term for BOJ gov. Kuroda (BBG)
  • US: Plan to Cap Tax Breaks Is Gaining Steam (WSJ)
  • BOE Says Investors May Be Taking ‘Too Rosy’ a View of Stress (BBG)
  • Kiwis Say ‘Ni Hao’ as China Ties Trump Australia Sales (BBG)
  • Obama Avoids Trading Threats With North Korea’s Kim (BBG)
 
Tyler Durden's picture

Frontrunning: April 4





  • Helicopter QE will never be reversed (Evans-Pritchard)
  • Bank of Japan Launches Easing Campaign under new leadership (WSJ)
  • Draghi Considers Plan B as Sentiment Dims After Cyprus Fumble (BBG)
  • Spain threatened by resurgent credit crunch (FT)
  • U.S. Dials Back on Korean Show of Force (WSJ)
  • Gillard Urges Aussie Firms to Emulate German Deutschmark Success (BBG)
  • Bank watchdog warns on retail branches (FT)
  • Xi's Russia visit confirms continuity of ties (China Daily)
  • Portuguese Government Survives No-Confidence Vote (WSJ)
  • Mortgage rates set for fall, Bank of England survey shows (Telegraph)
  • Russia’s bank chief warns on economy (FT)
  • Fed member hints at summer slowing of QE3 (FT)
 
Tyler Durden's picture

Frontrunning: April 3





  • Cyprus leader invites family firm probe (FT)
  • How the Fed fueled an explosion in subprime auto loans (Reuters)
  • Wal-Mart Customers Complain Bare Shelves Are Widespread (BBG)
  • JC Penney CEO gets no bonus, stock award after dismal year (Reuters)
  • New Bird Flu Virus Kills 2 in China, Sparking WHO Probe (BBG)
  • Algorithms Play Matchmaker to Fight 7.7% U.S. Unemployment (BBG)
  • Fed hawk Lacker and dove Evans face off over inflation (Reuters)
  • Infamous silver market "cornerer" WH Hunt Becomes Billionaire on Bakken Oil After Bankruptcy (BBG)
  • Japan Auto Sales Fall on Subsidy End as Korea Extends Drop (BBG)
  • Black Hawks Near North Korea Show Risk in U.S. Command Shift (BBG)
  • SEC Embraces Social Media (WSJ)
  • Tesla Touts ‘True Out of Pocket’ Financing for Model S (BBG)
  • U.K. Banks Try to Dodge Bonus Caps by Defining Risk-Taker (BBG)
 
Tyler Durden's picture

Frontrunning: April 2





  • The revolving door continues: Mary Schapiro joins Promontory Financial (WSJ)
  • First Peek at Health-Law Cost (WSJ)
  • Abe warns over Japan inflation target: warns 2% inflation target may not be reached within two years (FT)
  • BoJ's Kuroda tested by divided board (Reuters)
  • Nanjing poultry butcher fourth person infected with H7N9 bird flu (SCMP)
  • What time do top CEOs wake up? (Guardian)
  • Cyprus Seeks More Time to Meet Targets in Talks With Troika (BBG)
  • Investors Ignore Negativity at Their Peril (WSJ)
  • Apple bows to Chinese pressure (FT)
  • One can only laugh: North Korea to restart nuclear reactor in weapons bid (Reuters)
  • Visa Demand Jumps (WSJ)
  • Bloomberg's refutation of Stockman: yes, yes but... look over there, stocks are up! (BBG)
 
Tyler Durden's picture

Frontrunning: April 1





  • Goldman's Mario Draghi convinced Italy president Napolitano not to resign (Reuters)
  • David Stockman Warns of Crash Of Fed-Fueled Bubble Economy (BBG)
  • Cyprian archbishop calls on Central Bank's head, Finance Minister to resign (Voice of Russia)
  • Cyprus Parliament President Says Country Should Exit Eurozone (Zero Hedge)
  • Cyprus seeks to find people behind bank crisis (FT)
  • Argentina sticks to its guns over holdout creditor payments (FT)
  • 40% of all trading is now done in dark pools and off exchanges (NYT)
  • Sequester Impact Remains Elusive (WSJ)
  • China’s Home Prices Increase Most in 26 Months, SouFun Says (BBG)
  • Beijing, Shanghai Add to Home Curbs as China Acts to Cool Market (BBG)
  • Two men die in Shanghai in first human cases of bird flu strain (SCMP)
  • Economics will catch up with the euro  (FT)
  • How much gold is there in the world? (BBC)
  • Fannie Mae Regulator Sets No-Doc Modifications for Borrowers (BBG)
 
Tyler Durden's picture

Frontrunning: March 28





  • Lines Form as Cyprus Banks Reopen (WSJ)
  • Greek Bets Sank Top Cyprus Lenders - Banks at Heart of Cyprus Mess Were Bullish on Athens as Other Investors Fled (WSJ)
  • Hollande Economic Woes Masked by Cyprus Fig Leaf (BBG)
  • M&A Stumbles Amid March Deal Drought (BBG) ... but any minute now
  • Train hauling Canadian oil derails in Minnesota  (Reuters) - must be an evil pipeline riding first class
  • Slovenian Austerity After Cyprus Fails to Stem Yield Gain (BBG)
  • Banks Seek to Overturn Judge’s Ruling in Critical Mortgage Case (NYT)
  • Ships Costing U.S. $37 Billion Lack Firepower, Navy Told (BBG)
  • OECD still gloomy on eurozone recovery (FT)
  • BOJ's Kuroda says asset purchase limit already broken (Reuters)
  • Kuroda warns Japan debt ‘not sustainable’ (FT)
  • BOJ’s Kuroda Vows to Continue Easing Until 2% Target Achieved (BBG)
  • South Korea cuts economic forecast (FT)
 
Tyler Durden's picture

Frontrunning: March 27





  • What bread... What circuses... JPMorgan Chase Faces Full-Court Press of Federal Investigations (NYT)
  • European Regulators to Charge Banks Over Derivatives (WSJ) ... but forgive us if we don't hold our breath
  • Cyprus readies capital controls to avert bank run (Reuters)
  • Damage ripples through Cypriot economy (FT)
  • G4S readies guards as Cypriot banks prepare to open (Reuters)
  • Global pool of triple A status shrinks 60% (FT)
  • Customers Flee Wal-Mart Empty Shelves for Target, Costco (BBG)
  • BOE Says U.K. Banks Have Capital Shortfall of $38 Billion (BBG)
  • U.K. Banks Facing Capital Shortfall (WSJ)
  • Cyprus Details Bank Revamp (WSJ)
  • Kazumasa Iwata Joins Kuroda Naysayers as BOJ to Meet (BBG)
  • BRICS Nations Need More Time for New Bank, Russia Says (BBG)
 
Tyler Durden's picture

Frontrunning: March 25





  • Cyprus Salvaged After EU Deal Shuts Bank to Get $13B (BBG)
  • Last-minute Cyprus deal to close bank, force losses (Reuters)
  • Anxious, angry Cypriots face uncertain future (Reuters)
  • Spain Brings the Pain to Bank Investors (WSJ)
  • First Switzerland now... U.S. Seeks Answers in Liechtenstein on Tax Cheats (BBG)
  • Rebel Free Syrian Army founder loses leg in Syria blast (Reuters)
  • European Stocks Rise on Cyprus Deal as Italian Bonds, Crude Gain (BBG)
  • Michael Dell Likely to Sweeten Buyout Bid to Save Legacy (BBG)
  • Bankers’ pay premium is narrowing (FT)
  • Surgery Restoring Penis After Prostate Cancer Increasing (BBG)
  • Silent or supportive, conservatives give gay marriage momentum (Reuters)
 
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