would like to thank the Academy
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Before I posted that news, the headlines were all along these lines:
The euro hit its highest level in over a year on Wednesday and shares, oil and metals were also on the rise, as confidence in the global economic outlook strengthened ahead of European data and the U.S. Federal Reserve's latest policy decision.
Um....OOOPS!
I would like to know WHAT the heck was making people confident? The unemployment numbers throughout all of Europe have been RISING over the last few months, retail sales have been DOWN, and housing has pretty much collapsed. What the heck is making anyone CONFIDENT?
Oh yeah, get a load of these quotes:
The Fed is expected to maintain asset buying at $85 billion a month when it concludes its meeting later and retain its commitment to hold interest rates near zero until unemployment falls to at least 6.5 percent
Strong U.S. housing data on Tuesday and China's promising economic growth forecast for 2013 also supported the upbeat mood and raised expectations for robust demand for fuel and industrial commodities, underpinning oil prices and lifting copper.
Um....Housing data MISSED! WTF is up with these people?
Oh, but the FED will keep pumping printed money into the market, so all is good.
Just plain stupid.
Spain Recession Deepens More Than Forecast Amid Austerity
By Angeline Benoit - Jan 30, 2013 1:03 PM GMT+0430.
Spain’s recession deepened more than economists forecast in the fourth quarter as the government’s struggle to rein in the euro region’s second-largest budget deficit weighed on domestic demand.
Gross domestic product fell 0.7 percent in the three months through December from the previous quarter, when it declined 0.3 percent, the Madrid-based National Statistics Institute said today. That is more than the 0.6 percent contraction the Bank of Spain predicted on Jan. 23. GDP fell 1.8 percent in the fourth quarter from a year earlier and 1.37 percent over the full year from 2011, INE said.
The European Commission this week signaled it may recommend easing Spain’s budget goals for the fourth time in a year as unemployment in the euro region’s fourth-largest economy rose to a record 26 percent at the end of Prime Minister Mariano Rajoy’s first year in power.
“We should be circumspect; the domestic demand contraction is severe and more of the same is likely in the first half of 2013,” said Guillaume Menuet, a senior economist at Citigroup Inc. in London. “The current market momentum is such that investors have to chase the rally, masking economic fundamentals to a large degree.”
Yield Falls
The yield on Spain’s 10-year benchmark fell to 5.14 percent at 9:18 a.m. in Madrid from a euro-era high of 7.75 percent in July. The spread with German borrowing costs has narrowed around 45 percent to 3.44 percentage points. Investors see bonds from so-called EU periphery countries offering even more gains than last year after European Central Bank President Mario Draghi pledged to do whatever is needed to save the 17-nation euro.
Citigroup forecasts GDP will shrink 2.2 percent this year with a budget deficit at 6.3 percent of output and unemployment at an average 26.9 percent.
The Bank of Spain said last week that domestic demand may have dropped 3.9 percent from a year earlier in 2012, nearly twice as sharply as in 2011, as output suffered from five austerity rounds in less than a year. The last cut public wages and unemployment benefits while increasing value-added tax.
Sales Slip
Data show retail sales fell 10.7 percent in December from a year ago, more than economists expected, while home mortgage loans slid 32 percent in November, twice the previous monthly drop. Missed payments as a proportion of total loans at Spanish banks rose to a record 11.4 percent in November.
The International Monetary Fund last week cut its forecast for Spain’s economy and predicts a 1.5 percent contraction this year as the only drivers left weaken amid a European slowdown. The number of tourists visiting in December dropped from a year earlier, with an 11 percent decline from U.K. holidaymakers, the largest group. Exports fell in November.
Spanish retailers such as El Corte Ingles SA, Cortefiel SA and discounter DIA have reacted by lowering prices. Darty Plc (DRTY) is considering exiting the country while the world’s second-largest mobile-phone company, Vodafone Group Plc (VOD), and building-material producer Cementos Portland Valderrivas SA are reducing headcount. Materis Paints, Europe’s third-biggest maker of decorative paint, last month predicted sales in Spain will drop 18 percent this year.
More Jobless
Public-job cuts are boosting unemployment as the nation’s 17 semi-autonomous regions race to divide their combined budget deficit by five in the two years through 2013. A third of all jobless people in the euro area are in Spain.
MORE - http://www.bloomberg.com/news/2013-01-30/spain-recession-deepens-more-than-forecast-amid-austerity.html
How goes the bliss with Red? Did she find the secret stash of Playboys yet?
Things happen for a reason! It was a higher cosmic power saying it was just NOT the right woman for you.
Or........
You need to buy a chainsaw, duct tape, garbage bags, and a shovel.
Funny, I was THINKING about going with some lotto puts, but the option chain prices were BRUTAL. The FUNNIER part, is that AMZN totally missed on its earnings, which is what I pretty much figured on. What I did NOT figure on, was the price to go UP. Add to that, the ANALysts are all raising their target price of AMZN, and making it a BUY. WTF???
Off for a quick afternoon meeting, and then a RUN. Hope to see everyone before the open. Keep making the big bucks out there!
Nothing is worse than dental pain. Swish some GOOD Scotch in your mouth every 15 minutes, and swallow. Pain will be gone.
Trust me, I knew someone in college who was thinking of maybe going to medical school, so I get it from GOOD authority.
Wow! And at Aqueduct, in my beautiful city I miss so much!
Talk about a LONGshot. Like the odds of YOU with 2 supermodels.
Big earnings on Tuesday: Amazon.com, Ford, Pfizer
By MarketWatch
SAN FRANCISCO (MarketWatch) — Among the companies whose shares are expected to see active trade in Tuesday’s session are Amazon.com Inc., Ford Motor Co., and Pfizer Inc.
Amazon.com (NASDAQ:AMZN) is expected to report fourth-quarter earnings of 27 cents a share, according to analysts surveyed by FactSet.
Ford (NYSE:F) is projected to post fourth-quarter earnings of 25 cents a share.
Pfizer (NYSE:PFE) is forecast to post fourth-quarter earnings of 44 cents a share.
Eli Lilly and Co. (NYSE:LLY) is likely to report earnings of 79 cents a share in the fourth quarter.
AK Steel Holding Corp. (NYSE:AKS) is projected to report a loss of 37 cents a share in the fourth quarter.
Boston Scientific Corp. (NYSE:BSX) is forecast to post fourth-quarter earnings of 11 cents a share.
Broadcom Corp. (NASDAQ:BRCM) is expected to post earnings of 74 cents a share in the fourth quarter.
Corning Inc. (NYSE:GLW) is likely to report earnings of 33 cents a share in the fourth quarter.
D.R. Horton Inc. (NYSE:DHI) is forecast to post first-quarter earnings of 14 cents a share.
Harley-Davidson In. (NYSE:HOG) is projected to report fourth-quarter earnings of 32 cents a share.
JetBlue Airways Corp. (NASDAQ:JBLU) is expected to post fourth-quarter earnings of 2 cents a share.
Peabody Energy Corp. (NYSE:BTU) is likely to report fourth-quarter earnings of 25 cents a share.
Valero Energy Corp. (NYSE:VLO) is forecast to post fourth-quarter earnings of $1.22 a share.
Heeeeeeeeeeeeeeres EZ!
It is late afternoon here, but I still got my cup of Fogchaser in hand.
How have the ponies treated you lately?
Numb from drinking and DANCING all night?
EZ,
Great GMCR article here on Seeking Alpha:
http://seekingalpha.com/article/1138971-green-mountain-coffee-roasters-3-0?source=feed
Hey Larry! Pretty good so far. I have been on a work out and diet regimen, I am looking SUPER SEXY lately! I told my wife it is all for her to use as she sees fit.
Stock index futures point to slightly lower start
5:02am EST
LONDON (Reuters) - Stock index futures pointed to a slightly lower open on Wall Street on Tuesday, with futures for the S&P 500 down 0.1 percent.
Futures for the Dow Jones were flat, while contracts on the Nasdaq 100 shed 0.2 percent at 04.47 a.m. EST.
European shares edged up to hover near two-year highs, with strong earnings reports and a brightening economic outlook lifting sentiment, although technical factors could limit gains in the near term.
Yahoo Inc (YHOO.O: Quote, Profile, Research, Stock Buzz) said it forecasts a modest uptick in revenue for the current year, sending shares in the Internet group 3 percent higher in after hours trade.
The second-largest U.S. automaker, Ford, is expected to report earnings per share of $0.26, up from $0.20 one year earlier, when it unveils fourth-quarter results at 1200 GMT. Ford, which is heavily reliant on its pickup trucks for profits, is bound to benefit from an uptick in construction this year.
Drugmaker Pfizer is expected to report EPS of $0.44, down from $0.50 in the previous year, on plunging U.S. sales of its Lipitor cholesterol drug - which is facing generic competition since November 2011 - and disappointing demand for its Prevnar vaccine against childhood infections.
Online retailer Amazon.com (AMZN.O: Quote, Profile, Research, Stock Buzz) reports results for the holiday quarter. They were expected to show strong sales growth, tempered by little to no profit as the world's largest Internet retailer spent heavily on its Kindle mobile gadget platform, cloud computing service and its rapidly expanding chain of shipping warehouses.
Standard & Poor's releases its S&P Case/Shiller Home Price Index for November at 1400 GMT. Prices are expected to have continued their recovery, up 0.6 percent on a seasonally adjusted basis, pointing to a housing market that is mending.
The Conference Board releases January consumer confidence figures at 1500 GMT, expected to have fallen to 64 from 65.1. The market will be looking for any impact from the "fiscal cliff" debate or the payroll tax increases at the beginning of the year.
The Federal Reserve's Open Market Committee begins two days of meetings on interest rates. Traders speculated more solid U.S. growth indicators might see the Fed pull back on its aggressive easing stimulus, which has played a key role in fuelling an equity market rally since the second half of last year.
Elon Musk has long considered Tesla Motors Inc (TSLA.O: Quote, Profile, Research, Stock Buzz) the bold, nimble answer to the auto industry's cautious culture. Now the electric car maker's top executive has extended his help to another industrial giant: Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz).
Pentagon and industry officials said on Monday a manufacturing problem was the most likely cause of an engine failure that led to the grounding of all 25 Marine Corps versions of the Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz) F-35 fighter jet 10 days ago.
The Dow Jones industrial average .DJI closed down 14.05 points, or 0.10 percent, at 13,881.93 on Monday. The Standard & Poor's 500 Index .SPX was down 2.78 points, or 0.18 percent, at 1,500.18. The Nasdaq Composite Index .IXIC was up 4.59 points, or 0.15 percent, at 3,154.30.
(Reporting By Francesco Canepa; Editing by Catherine Evans)
Analysis: Stuck in reverse, Detroit edges closer to bankruptcy
(A liberal BASTION, what our country is heading towards. - COHIBA comment)
By Nick Carey, Bernie Woodall and Karen Pierog
DETROIT (Reuters) - At the Detroit Auto Show earlier this month, luxury was in the air. Pricey new Bentleys and Maseratis glittered - including a Maserati 2014 Quattroporte with a $132,000 price tag; U.S. Cabinet Secretaries and dignitaries rubbed shoulders; and many of the well-heeled attendees ponied up for a $300-a-ticket black-tie charity ball.
But in a city that is slowly dying, the glitz didn't extend much beyond the Cobo Center exhibition hall.
General Motors Co (GM) and Chrysler (FIA.MI), which along with Ford Motor Co (NYS:F) gave the Motor City its identity, survived near-death experiences after filing for bankruptcy during the financial crisis. Now, Detroit itself is edging closer to a similar precipice, only unlike the automakers, its chances of getting a federal bailout are almost nonexistent.
The story of Detroit's decline is decades old: Its tax revenue and population have shrunk and labor costs have remained out of whack. But the city's budget problems have deepened to such an extent that it could run out of cash in a matter of weeks or months and ultimately be forced into what would be the largest-ever Chapter 9 municipal bankruptcy filing in the United States.
Frustrated by the lack of concrete progress, Michigan Governor Rick Snyder, a Republican, last month appointed a team to scour the city's books. The audit could result in a state takeover of Detroit's finances through the appointment of an emergency financial manager. Such a manager, who would seize control of the city's checkbook, could then propose federal bankruptcy court as the best option.
Snyder, who has called the situation "a crisis in terms of financial affairs," said the team would deliver its report in February.
"Detroit is teetering on the verge of bankruptcy after the City Council has failed to make the necessary cuts to deal with having a smaller population," said Rick Jones, chairman of the Republican majority caucus in the state Senate.
Jones, who has indicated he does not favor a bankruptcy, said he would like to see an emergency manager installed to fix the city's problems. If that failed, there would be a case for finding a way to shrink the Detroit municipal area, he argued.
Detroit's population is now just over 700,000 - down 30 percent since 1990 - but the city still has to provide services to an area encompassing more land than San Francisco, Boston and the borough of Manhattan.
While Democratic Mayor Dave Bing and the Detroit City Council have moved to reduce spending and initiate some reforms to stave off a takeover, including layoffs and wage and benefit cuts, the progress may not be enough for Michigan officials and lawmakers.
STREETS WITHOUT LIGHTS
In the booming post-Second World War era, Detroit was America's fifth-largest city. Today, it ranks 18th. In addition to a sharp population decline, it suffers from high unemployment related to a loss of businesses, a flood of home foreclosures and a cut in state funding. That has led to shriveling revenue, leaving the city unable to afford a workforce of more than 10,000 and the surging health and pension costs that go with them and with its retirees. As a result, credit ratings on Detroit's approximately $8.2 billion of outstanding debt have sunk deeper into junk territory.
The city's labor costs, including health care and pensions, are shrinking in absolute terms but rising as a share of the budget. They are slated to drop to $968 million, or nearly 49.5 percent of the operating budget, in the fiscal year ending June 30 versus $1.14 billion, or 45.5 percent, a year earlier.
Signs of decline are everywhere - in a rising crime rate, streets without lights and block after block of abandoned buildings. The murder rate of one per 1,719 people last year was more than 11 times the rate in New York City. The jobless rate is above 18 percent, more than twice rate for the country as a whole.
COLLISION COURSE
A bankruptcy would be messy.
The interests of creditors would likely collide with those of labor unions wanting to protect workers' benefits, said Eric Scorsone, a Michigan State University economist who has written papers on municipal bankruptcy and on the state's emergency manager laws.
MORE - http://finance.yahoo.com/news/analysis-stuck-reverse-detroit-edges-215233048.html?l=1#
Asian shares rally, eye Fed, U.S. data
By Chikako Mogi
TOKYO (Reuters) - Asian shares rallied on Tuesday as recent selling drew bargain hunters ahead of more U.S. economic data and a Federal Reserve policy decision later in the week that may offer clues to the Fed's stimulus plans.
European markets were seen following Asia higher, with financial spread-betters predicting London's FTSE 100 .FTSE, Paris's CAC-40 .FCHI and Frankfurt's DAX .GDAXI would open up as much as 0.3 percent.
U.S. stock futures were up 0.1 percent, hinting at a firm Wall Street start. .L.EU.N
Solid U.S. earnings and an improving U.S. business spending gauge have combined with a recent run of positive global economic data, along with signs of easing financial stress in the euro zone, putting upwards pressure on Treasury yields.
Further signs of brightening U.S. growth prospects would fuel speculation the Fed may consider pulling back on aggressive easing stimulus. The Fed ends a two-day policy meeting on Wednesday.
The first estimate of U.S. fourth-quarter gross domestic product also will be released on Wednesday, followed by non-farm payrolls on Friday.
Few expect any immediate change to the Fed's very accommodative monetary stance while other central banks such as the Bank of Japan also embark on fresh easing to help spur economic activities. India's central bank cut interest rates on Tuesday for the first time in nine months.
The MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rallied 0.9 percent to snap a four-day losing streak, led by a 1.1 percent jump in Australian shares to a fresh 21-month high on gains in financial shares.
"It seems that a lower interest rate environment is starting to improve confidence among the Australian business community. Mix this in with the China rebound and we have a sharp rise in confidence," said Ben Taylor, sales trader at CMC Markets.
South Korean shares .KS11, which slumped to an 8-week low on Monday, rebounded 0.8 percent.
Japan's Nikkei stock average .N225 reversed earlier declines and closed up 0.4 percent, buoyed by optimism over earnings of major banks. .T
"With yields on U.S. Treasury and German government bonds inching higher, one might say investors may be shifting funds to riskier assets from safe-havens," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.
The benchmark U.S. 10-year note yield briefly pierced 2 percent on Monday for the first time since last April, and inched up 2.5 basis points (bps) in Asia from New York close. The 10-year Japanese government bond yield also rose.
Naka Matsuzawa, fixed income strategist at Nomura Securities, said in research note that a sell-off in 5-year Treasury notes over the last two days "would not have occurred unless expectations of an economic recovery have gained ground to the extent that the monetary policy outlook begins to change."
"The market is aware that risks are toward more hawkish FOMC statements in the future rather than dovish ones," considering a pick-up in the U.S. economic recovery and stock market rally, as well as the underlying global risk-on trend, he said.
STUBBORN YEN
Yen selling paused, helping to bolster the benchmark South Korean stock index which is vulnerable to exchange rate swings as exporters lead market capitalization.
The dollar fell 0.1 percent to 90.78 yen after touching 91.32 on Monday, its highest level since June 2010, while the euro recouped earlier losses against the yen to steady around 122.10 yen after hitting 122.91 on Monday, its highest point since April.
The euro was at $1.3450, not far from an 11-month high of $1.3480 hit on Friday.
MORE - http://www.reuters.com/article/2013/01/29/us-markets-global-idUSBRE88901C20130129?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29
Gold Rebound Toward $1,800 Seen Before Drop: Technical Analysis
By Nicholas Larkin - Jan 29, 2013
Gold probably will stay above $1,630 an ounce in the next several months and may rally to at least $1,800 before starting a decline in the second half of this year, according to technical analysis by Societe Generale SA.
The $1,630 area consists of the highs reached last summer, support levels from a declining trend channel since October and a rising support line since May, the bank said. If prices climb above the $1,703-$1,706 area, they’ll probably rally and peak between $1,800 and $1,921 in the second half, before starting a gradual decline to as low as $1,500 by next year, it predicts.
Bullion rose a 12th straight year in 2012, the best run in at least nine decades, as central banks from Europe to China pledged more stimulus to bolster economic growth. While gold failed to set a new all-time high last year for the first time since 2007, investors are holding a near-record amount in exchange-traded products. Goldman Sachs Group Inc. and Credit Suisse Group AG are among banks that say prices will probably peak this year as economies improve.
“All the technical indicators are not calling for a big correction yet,” said Stephanie Aymes, a technical analyst at Societe Generale in London. “The trend is starting to become mature. There should be a final rise, and in this final rise that will attract fresh sellers.”
Bullion for immediate delivery fell 0.8 percent to $1,661.34 an ounce in London this year, after adding 7.1 percent in 2012, the smallest gain in four years. The metal set a record $1,921.15 in September 2011 and traded as high as $1,796.05 last year. ETP holdings at 2,610 metric tons are about 0.8 percent below the Dec. 20 all-time high, data compiled by Bloomberg show.
Bearish Channel
The $1,703-$1,706 area consists of the top of the bearish channel since October, Aymes said. Prices peaked near $1,800 in November 2011 and in February and October last year. Since the end of 2011, the metal traded in a $273 range, with the mid- point being about $1,659.
“We’ve been in a range for more than a year and now we’re in the middle of that range,” Aymes said. Prices above $1,800 means there is a “significant risk of a plummet,” she said.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index. Common indicators analyzed range from moving averages to Fibonacci levels to Ichimoku charts, as well as previous highs and lows and trend channels.
Gold generally only earns returns for investors through price gains. The Bank of Japan (8301) said Jan. 22 it will buy about 13 trillion yen ($143 billion) in assets per month from January 2014. Federal Reserve minutes released Jan. 3 showed some policy makers favored ending $85 billion in monthly bond purchases this year. The U.S. economy will accelerate from the second quarter through the start of 2014, economists’ forecasts compiled by Bloomberg show.
Goldman Outlook
Goldman said Jan. 18 that it expects gold to climb to $1,825 in the next three months, while restating a forecast for prices to peak this year and be weaker in the second half. Credit Suisse expects the metal will average a record $1,740 this year, before declining in 2014.
MORE - http://www.bloomberg.com/news/2013-01-29/gold-rebound-toward-1-800-seen-before-drop-technical-analysis.html
Kind of figured as much. GMCR has been selling Keurigs for YEARS, it would be a rough slog to sell a whole new machine. Heck, we got 5 Keurigs in our little HQ alone.
Hello Lottos, BACK FROM THE DEAD. (Well, travelling)
Took me all damn day to catch up on e-mail yesterday, and I tried to catch up on the market. I see it just keeps on keeping on, thanks to EZ buying everything in sight with his offshore gold holdings.
Hope everyone is doing well and kicking butt out there.
Notable earnings after Tuesday’s close: $ACE, $AMZN, $BNNY, $BRCM, $BXP, $CSE, $DLB, $FSL, $HA, $HLIT, $MPW, $POL, $RHI, $RYL, $UIS, $VRTX
Thanks Stuff! Hello again Lottos! Back from travels, only to hit the ground running with our replacements that are doing a recon, and MORE travels next week. Hope everyone is making loads of moolah out there.
See you all later before the open, need to open up some of the BBQs we are having on the camp tonight for New years. Will be drinking some near beer, so I may be a little tipsy after.
Interesting tweet on stocktwits:
Billionaire George Soros recently sold off 420,000 shares of $C 701,400 shares of $JPM and 120,000 shares of $GS & bought $120,000,000 $GLD
Mmmmm, what time will that stew be ready? I LOVE a good hearty beef stew, and you Texans know how to make it right. I'll bring cold beers if you got hot stew.
Morning Briefing: 10 Things You Should Know http://t.co/GzICjvNc $DUF $AAPL
Ah! Gonna pop open a fine bottle of Mad DOg 20/20, or Night Train. I usually like the good stuff on the holidays myself, lol.
I hope you have fun, and you crazy kids BEHAVE yourselves! All the crazy kids here are driving me to drinking (Near Beer) with all the damn squeaky noisemakers they got going. 8.5 hours til midnight for us out here.
Hedge Funds Cut Bullish Bets to Lowest Since June: Commodities
By Elizabeth Campbell - Dec 31, 2012
Hedge funds cut bullish commodity bets to a six-month low as mounting concern that slowing economic growth will erode demand drove prices toward the first fourth-quarter retreat since the global recession.
Speculators reduced net-long positions across 18 U.S. futures and options by 11 percent to 675,625 million contracts in the week ended Dec. 24, the lowest since June 19, U.S. Commodity Futures Trading Commission data show. Gold holdings reached a four-month low, while those for copper dropped for the first time in five weeks. Investors are the most bearish on natural gas since May.
The Standard & Poor’s GSCI Spot Index of 24 raw materials fell 3.5 percent since Sept. 30, the first retreat for the period since 2008. Japan and the 17-nation euro area are already back in recessions and the Congressional Budget Office has warned the U.S. risks going the same way unless policy makers agree on averting more than $600 billion of automatic tax increases and spending cuts scheduled to start next month.
“We don’t have sustained, healthy global growth,” said Walter “Bucky” Hellwig, who helps manage $17 billion of assets at BB&T Wealth Management in Birmingham, Alabama. “It’s easier to not to make that bullish bet and either just sit on the sidelines or go on the short side of a ledger.”
2012 Returns
The S&P GSCI is down 0.3 percent this year. The MSCI All- Country World Index of equities climbed 13 percent, while the dollar slid 0.5 percent against a basket of six trading partners. Treasuries returned 2.3 percent, a Bank of America Corp. index shows.
The Conference Board’s index of U.S. sentiment fell to 65.1 from 71.5 in November, the lowest in four months, figures from the New York-based private research group showed Dec. 27. The gauge was projected to drop to 70, according to the median in Bloomberg’s survey of economists. Sales of new houses rose less than forecast in November, the Commerce Department said Dec. 27.
The French economy grew less than initially reported in the third quarter, while Japan’s industrial output in November tumbled more than forecast to the lowest since the aftermath of the 2011 earthquake, separate government reports showed Dec. 28. Contracts outstanding across the members of the S&P GSCI are headed for the biggest monthly contraction since June.
Stimulus Measures
Increasing government and central bank stimulus measures will bolster commodity demand, said Evan Smith, who helps manage about $500 million of assets at U.S. Global Investors Inc. in San Antonio.
Japan’s premier Shinzo Abe said Dec. 26 he would push for “bold monetary easing.” Minutes of the Bank of Japan (8301)’s November meeting showed that a board member suggested conducting open-ended asset purchases. The Federal Reserve said Dec. 12 it would buy $45 billion of Treasury securities a month from January, adding to $40 billion a month of existing mortgage-debt purchases. The European Central Bank and China have also pledged to do more to bolster growth.
Chinese industrial companies’ profits rose for a third month in November, the National Bureau of Statistics said Dec. 27. The Asian country, the biggest consumer of commodities from copper to soybeans, is poised to snap a seven-quarter slowdown as growth accelerates to 7.8 percent in the three months ending today, according to the median of 35 economist estimates compiled by Bloomberg. They expect China to keep accelerating for at least the next six months.
China Growth
Manufacturing in China expanded at a faster pace in December, according to the final reading of a Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics released today. The 51.5 figure is the highest since May 2011 and compares with the 50.9 preliminary reading published Dec. 14 and 50.5 in November. A reading above 50 indicates expansion.
MORE - http://www.bloomberg.com/news/print/2012-12-30/hedge-funds-cut-bullish-bets-to-lowest-since-june-commodities.html
Are you and Bear going to be drinking up champagne and watching the ball drop?
I am sure there are PLENTY of pissed off cows out there now, looking forward to a little time off.
Most European Stocks Fall as U.S Budget Talks Stall
By Namitha Jagadeesh - Dec 31, 2012
Most European stocks fell amid concern U.S. lawmakers won’t reach a budget deal in time to prevent automatic tax increases and spending cuts from coming into effect tomorrow. U.S. index futures signaled a lower opening for equities and Asian shares were little changed.
Iberdrola SA (IBE), Spain’s largest utility, slid 1.5 percent after Bolivia nationalized four of its business units. Bankia SA (BKIA) rallied 5 percent, rebounding from its record low.
The Stoxx Europe 600 Index (SXXP) declined less than 0.1 percent to 278.71 at 9:23 a.m. in London, as nine of the 18 western European markets including Germany and Switzerland were closed. The U.K. market will close at 12:30 p.m., while France, Belgium, Spain and the Netherlands will close by about 1 p.m.
“Democrat and Republican lawmakers will meet again today to present a potential deal to Senate lawmakers but time is running out and hopes are rapidly receding for a deal later today,” said Ishaq Siddiqi, a market strategist at ETX Capital in London. “Traders are taking no chances on the final trading day of the year as such, removing cash off the table in the likely event that the fiscal cliff will be triggered tonight.”
Futures on the Standard & Poor’s 500 Index signaled the U.S. benchmark index may fall for a sixth day. The contracts expiring in March traded at 1,390.6, or 0.8 percent lower compared with the equity gauge’s close on Dec. 28. The MSCI Asia Pacific Index added less than 0.1 percent today.
The volume changing hands in companies on the U.K.’s FTSE 100 Index was 65 percent lower than the average of the last 30 days, according to data compiled by Bloomberg. The volume on France’s CAC 40 was 81 percent lower.
2012 Performance
The Stoxx 600 is heading for a gain of 14 percent this year, the biggest since 2009, as the European Central Bank and the Federal Reserve boosted asset purchases. Sky Deutschland AG, the German pay-TV operator half-owned by Rupert Murdoch’s News Corp., nearly tripled this year for the best performance on the gauge. Bankia was the worst performer, plunging 88 percent.
The U.S. Senate will convene at 11 a.m. Washington time today to discuss measures to avert more than $600 billion in automatic tax increases and spending cuts, also called the fiscal cliff.
Private talks between Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell that began Dec. 28 stalled yesterday because of disputes over income tax rates, the estate tax and other issues.
McConnell said he spoke by phone to Vice President Joe Biden at least twice yesterday. House Speaker and Republican John Boehner brought his members back to Washington yesterday. He has said the House won’t act unless the Senate sends over a proposal.
Merkel Comments
In Europe, German Chancellor Angela Merkel said the economic environment will be more difficult in 2013 compared with this year.
“The reforms that we’ve agreed on are starting to take effect,” Merkel said in a New Year’s television speech to the nation, sent today in advance by e-mail. “Nevertheless, we still need a lot of patience. The crisis is far from over.”
China’s manufacturing unexpectedly expanded at the fastest pace in 19 months, a report showed today. The final reading of a Purchasing Managers’ Index was 51.5 in December, according to a statement from HSBC Holdings Plc and Markit Economics. That compares with the 50.9 preliminary reading on Dec. 14 and a final 50.5 in November. A level above 50 indicates expansion.
MORE - http://investorshub.advfn.com/boards/post_new.aspx?board_id=7793
LOL, too bad! Great name.
Hope you have fun tonight, and the bubbly flows. Got me a few cans of the good Near Beer! BBQ later on.
My wife bets on their names. She finds a name she likes, throws the $2 on it, and screams like a banshee. the first time out, I brought her to Yonkers, and she won the first three races she bet on! After that, she got addicted, and actually does pretty good whenever we hit the track.
Damn! Hope you had a few bucks on that sucker!
Will Gold Prices Hit $2,000? http://t.co/sBYeX46i
China’s Manufacturing Expands at Fastest Pace in 19 Months
By Bloomberg News - Dec 30, 2012
China’s manufacturing unexpectedly expanded at the fastest pace in 19 months in December, boosting optimism that a recovery in the world’s second-biggest economy is gaining traction.
The final reading of a Purchasing Managers’ Index was 51.5 in December, according to a statement from HSBC Holdings Plc and Markit Economics today. That compares with the 50.9 preliminary reading on Dec. 14 and a final 50.5 in November. A level above 50 indicates expansion.
China’s economy may have rebounded after a seven-quarter slowdown as the government increased spending on infrastructure and accelerated investment-project approvals. The nation’s budget deficit may increase by 50 percent next year, a person familiar with the matter told Bloomberg News last week, helping to boost domestic demand and sustain growth as exports struggle to improve.
“Momentum is likely to be sustained in the coming months when infrastructure construction runs into full speed and property market conditions stabilize,” Qu Hongbin, chief China economist at HSBC in Hong Kong, said in the statement. Output and purchasing accelerated, even as new export orders showed a “slight fall” on weak demand in Europe, Japan and the U.S., HSBC said.
The median forecast of 14 economists surveyed by Bloomberg News was for a final reading of 50.9.
Government PMI
A separate, government-backed purchasing managers’ index probably rose to 51 in December from 50.6 the previous month, according to the median estimate in a Bloomberg News survey of 25 economists ahead of the report due tomorrow. That would be the highest reading in eight months.
The benchmark Shanghai Composite Index of stocks advanced 0.8 percent as of 10:01 a.m. local time. The gauge had risen 14 percent as of Dec. 28 since this year’s closing low on Dec. 3 as a pledge by the nation’s new leaders to promote the development of towns and cities boosted optimism corporate earnings will improve.
MORE - http://www.bloomberg.com/news/2012-12-31/china-s-manufacturing-expands-at-fastest-pace-since-may-2011.html