- Ukraine Pushes On With Offensive as Russia Warns on Vote. Ukraine pushed on with an operation to flush separatists from their eastern holdouts a day after Russia warned the violence jeopardizes this month’s elections. Government troops eliminated two rebel bases near the towns of Slovyansk and Kramatorsk, acting President Oleksandr Turchynov said today in parliament in Kiev. Militants vowed to expel the military from the region. Russian Foreign Minister Sergei Lavrov said yesterday that Ukraine is sliding into a civil war, making legitimate voting impossible. “The anti-terrorist operation can stop after weapons are surrendered and hostages released,” Turchynov said. “We’re conducting dialogue with those who’re prepared for conversation and cooperation. We’re working on changes to the constitution to expand powers to local self-government. At the same time, those who conduct war will receive an adequate answer.”
- Putin Emboldened on Instability Arc by EU Defense Divide. Confronted by the prospect of a new Iron Curtain in Russia’s borderlands, the European Union’s largest countries are turning the other way. Germany, France, Italy and Spain are all cutting back on defense just as a swath of countries on the EU’s eastern flank from the Baltic Sea to Romania ramp up arms spending. Estonia, which borders Russia, spent a greater share of its national output on defense than France in 2013 for the second year running, NATO figures show.
- French Recovery Stalls as Taxes Dent Consumer Spending. France’s economic recovery stalled in the first quarter as tax increases used by President Francois Hollande to cut the budget deficit squeezed consumers. Gross domestic product was unchanged in the period, compared with a revised 0.2 percent gain in the previous three months, national statistics office Insee said in an e-mailed statement. That’s below the median estimate of 28 economists in a Bloomberg survey for a 0.1 percent increase. “The biggest factor right now is consumer spending,” said Dominique Barbet, an economist at BNP Paribas SA in Paris. “What’s worrying beyond the first quarter is that the level of growth is weak. There’s no acceleration. We don’t have the recovery that other countries are seeing.”
- Italian GDP Unexpectedly Falls Threatening Recession Exit. Italy’s economy unexpectedly contracted last quarter, signaling the country’s failure to sustain a pullout from its longest recession on record. Gross domestic product in the three months through March decreased 0.1 percent from the fourth quarter, when it rose 0.1 percent, the national statistics institute Istat said in a preliminary report in Rome today. The decrease contrasts with the median forecast of a 0.2 percent expansion in a Bloomberg survey of 21 economists. From a year earlier, output shrank 0.5 percent. “Italy GDP surprised on the downside,” said Annalisa Piazza, a fixed-income strategist at Newedge Group in London. “Italian activity continues to contract and the already ample output gap keeps widening."
- European Stocks Fall as Euro-Area Growth Misses Estimates. European stocks fell the most in a month as first-quarter euro-area economic growth missed forecasts, while companies including Deutsche Post AG and Thomas Cook Group Plc (TCG) slid after posting results. Deutsche Post lost the most in two years after first-quarter earnings before interest and taxes missed projections. Thomas Cook sank the most in more than two years after saying sales in the first-half retreated 6.6 percent. Cie. Financiere Richemont (CFR) SA gained the most in a year after the maker of Cartier jewelry said it will raise its dividend. Hennes & Mauritz AB climbed the most since September after reporting higher-than-forecast sales for April. The Stoxx Europe 600 Index dropped 0.9 percent to 338.5 at the close of trading.
- Consumer Comfort in U.S. Shows Biggest Weekly Drop Since October. Consumer confidence last week suffered its biggest one-week drop since the federal government shutdown in October as attitudes toward the buying climate and personal finances soured. The Bloomberg Consumer Comfort (COMFCOMF) Index declined by 2.2 points, the most since Oct. 13, to 34.9 for the period ended May 11. The gauge has declined since reaching 37.9 during the week ended April 27, the second-highest level since January 2008. Limited wage gains, costlier food and elevated gasoline prices may help explain the deterioration in sentiment among all age and income groups last week.
- Stubborn Bond Bears Double Down on Money-Losing Wager. These bond bears just won’t go away. Some even appear to be doubling down as their losses mount. Exhibit A: As the ProShares UltraShort 20+ Year Treasury (TBT) fund plunged 21.6 percent this year, investors have responded by plowing $525.3 million into the exchange-traded fund, which uses leverage and derivatives. Exhibit B: Investors have boosted short wagers on Treasuries using futures contracts trading on the Chicago Board of Trade to 56 percent more than their five-year average. A few weeks ago, there were the most since March 2008.
- Wal-Mart(WMT) Forecast Misses Estimates as Sales Slump Lingers. Wal-Mart Stores Inc. (WMT), the world’s largest retailer, forecast second-quarter profit that missed analysts’ estimates as the company copes with slow sales in the U.S., especially at its Sam’s Club warehouse stores.
- GM’s(GM) Latest Recalls Bring Automaker’s 2014 Total to 11.1 Million. General Motors Co. (GM:US) is recalling an additional 2.7 million vehicles, including models with faulty brake lights that have led to hundreds of complaints, pushing the automaker’s total number of cars and trucks called back for fixes in the U.S. this year to 11.1 million.
- Carlyle's Rubenstein says 'markets are not cheap'.
- Watch Art Cashin: Why stocks are getting slammed. (video)
- Russia Dumps 20% Of Its Treasury Holdings As Mystery "Belgium" Buyer Adds Another Whopping $40 Billion. (graph)
- Subprime 2.0: 125% LTV Loans Are Coming Back.
- How Malinvestment Poisons The Entire Economy.
- Meat Prices Surge Most In 11 Years. (graph)
- European Bonds Tumble Most In 15 Months, Stocks Slammed. (graph)
- S&P 500 Breaks Below "Key" Technical Level. (graph)
- Russia Will Hold Massive Air Drill Along Ukraine Border On Ukraine Presidential Election Day.
- Philly Fed Declines Led By Drops In New Orders, Shipments, And Employee Workweek. (graph)
- Homebuilder Confidence Plunges To 12-Month Lows. (graph)
- Industrial Production Plunges By Most In 5 Years (Biggest Miss In 3 Years). (graph)
- Initial Claims Plunge To Lowest Since May 2007. (graph)
- Europe's "Very Disappointing" Q1 GDP In Charts. (graph)
- The FCC Just Approved A Proposal That Will Completely Change The Internet As We Know It.
- Philippines Releases Photos Of China Building Something On Disputed Reef.
- Anti-Chinese Protests Have Broken Out In Vietnam — Here's Why It Could Be The Start Of Something Bad.
- France's Sale Of Warships to Russia Shows Why The West Can't Stop Putin.
Financial Times:
- US banks aim to cut pay of financial advisers. After cutting the pay of traders, bank executives in the US are manoeuvring to reduce their payroll for a 50,000-strong army of brokers who sell stocks and bonds to retail customers.
- Merkel Says Euro Crisis Not Over, Warns of 'Deceptive Calm'. German Chancellor Angela Merkel in interview says she shares the assessment of IMF Managing Director Christine Lagarde, who has warned of a "deceptive calm" in financial markets and flagging zeal for reforms in Europe.
No comments:
Post a Comment