Bloomberg:
- Putin Points Muslim Rage at Cold War Foes as Jihadis Vow Attacks. Hundreds of thousands of Muslims vented their anger in unison, shouting “Allahu Akbar!” as their leader condemned supporters of the satirical French magazine Charlie Hebdo after militants murdered five of its cartoonists. The protest against caricatures of Muhammad and the policies of the U.S. and its allies was organized by the state and televised live across the country for more than an hour, but it wasn’t in Iran or Pakistan. It was in Russia, where Vladimir Putin came to power vowing to “wipe out” Muslim extremists, even “in the outhouse.” Fifteen years on, Putin is now seeking to turn Muslim anger to his advantage by pushing for a united front against what he sees as a U.S.-led conspiracy to dominate the world.
- Greece May Ask for a Six Month Loan Extension. (video)
- Chinese Local Debt Shunned as 50,000 Auditors Probe Provinces. Global investors are wary of Chinese local government debt just as the nation’s provinces start going overseas for fundraising amid state scrutiny. Qingdao City Construction Investment Group Co., a local government financing vehicle on the country’s east coast, sold a debut issue of U.S. dollar-denominated bonds on Feb. 5, raising $800 million in a two-tranche sale. Some 20 percent of the $500 million portion was bought by money managers, compared with an average 54 percent take-up for a $1 billion offshore deal by Beijing Infrastructure Investment Co. in November, people familiar with the matter said. China has mobilized about 50,000 auditors to probe local government debt, according to Mizuho Securities Asia Ltd., after borrowings swelled to 17.9 trillion yuan ($2.9 trillion) as of June 2013, from 10.7 trillion yuan at the end of 2010.
- Bank of Japan Keeps Record Stimulus as Country Crawls Out of Recession. The Bank of Japan maintained unprecedented monetary stimulus, as Governor Haruhiko Kuroda aims to stoke a recovery from recession and counter a slowdown in inflation. The central bank will boost the monetary base at an annual pace of 80 trillion yen ($670 billion), it said in a statement on Wednesday in Tokyo, as forecast by all 35 economists surveyed by Bloomberg News.
- Russia Lures Asia Oil Buyers as Mideast Scraps Over Share. Middle East oil producers already scrapping for share in Asia must now contend with more supply from Russia. Russia, the world’s second biggest crude producer, boosted sales to China, Japan and South Korea by 25 percent last year, increasing its portion of shipments to 8.7 percent, from 7.2 percent in 2013, according to government data compiled by Bloomberg. Saudi Arabia accounted for 24 percent, down from 26 percent, while Qatar and Kuwait also ceded market share.
- Asian Stocks Head for Five-Month High on Optimism About Greece. Asian stocks rose after U.S. shares climbed to a record amid speculation Greece will reach a resolution with its creditors. The MSCI Asia Pacific Index gained 0.3 percent to 143.65 as of 9:15 a.m. in Tokyo, heading for its highest since Sept. 19.
- Oil rally seen reversing as unstoppable US supply deepens glut. The rebound in oil will reverse because rising US production is deepening the global supply glut, according to UBS AG, Bank of America Corp. and Commerzbank AG. Brent futures entered a bull market this month as US drillers stopped using a record number of rigs, companies cut at least US$40 billion from spending plans and hedge funds turned the most bullish in seven months. None of that will stop Brent slipping back to US$45 a barrel or lower within the next three months, from about US$61 now, the banks' analysts say. Prices fell as low as US$45.19 on Jan 13. The highest US oil production in three decades won't be curtailed by the idling of rigs and inventories will keep expanding, according to UBS. The rally has been based on sentiment rather than the fundamentals of supply and demand, Commerzbank says. As storage space fills up, producers will need to discount to sell barrels, Bank of America predicts.
- Fighting in Ukrainian Transport Hub of Debaltseve Threatens Cease-Fire. Rebel Attacks on the Town Pose a Dilemma for Ukraine’s President. President Petro Poroshenko denounced the advance of Russian-backed separatists into a strategic transport hub as a violation of a cease-fire, but Russian President Vladimir Putin said Ukraine’s troops were surrounded and should surrender. The street-to-street fighting as militants entered the town of Debaltseve Tuesday further darkened hopes for a European-brokered truce that was negotiated last week and left Mr. Poroshenko with narrowing options.
- U.S. to Give Some Syria Rebels Ability to Call Airstrikes. After training, moderate rebels to get pickups with gear to call for American B-1B bombers. The U.S. has decided to provide pickup trucks equipped with machine guns and radios for calling in U.S. airstrikes to some moderate Syrian rebels, defense officials said. But the scope of any bombing hasn’t been worked out—a reflection of the complexities of the battlefield in Syria. Military officials point to U.S. airstrikes, called in by Kurdish fighters, that helped drive
- Pressure Builds to Weaken the Yuan. Traders have been pushing the currency lower, against central bank efforts to stabilize it.
- Americans Borrowing More, but Fissures Appear. Delinquencies climbed in auto and student lending. Overall debt rose $117 billion in 4th quarter.
- After Boom, Bust Could Be Upon Apartment REITs. Rise in vacancies seen in Houston, Washington, Charlotte and Austin, Texas. After a banner year in 2014, the party might be coming to an end for real-estate investment trusts that specialize in residential apartment buildings. Last year, the category produced total returns, including dividends, of 39.7%, the best among all real-estate stocks, according to the National Association of Real Estate Investment Trusts. REITs overall recorded a total return of 28% last year, as the economy improved and interest rates stayed low.
- The Too Little, Too Late Presidency by
John Bolton. Obama’s temporizing has been his foreign-policy trademark, from Iran and Syria to Libya and Ukraine.
CNBC:
- What top US hedge funds are buying and selling. (video)
- Greece faces resistance to extra emergency funds for banks: sources. (video) The European Central Bank faces resistance from Germany to allowing any extra emergency lending for Greek banks, people familiar with the matter said, increasing pressure on Athens to sign up to an extended aid-for-reform program. After talks between Greece and euro zone creditors broke down acrimoniously on Monday, the ECB's policymaking governing council will review on Wednesday how far the country may support its weak banks, which face rising deposit outflows.
- Forget Hacking - CIA Accuses Russia Of "Manipulating The World's Weather". (graph)
- Is Japan Preparing For War?
- State Dept: "We Can't Beat ISIS By Killing Them..." They Need Jobs. (video)
- Retail Sales & The Market's Looming "Gotcha" Moment. (graph)
- Stocks Close At Record Highs; Shrug Off Schaeuble Shocker. (graph)
- Nigel Farage On "The Great Game Of Poker Over The Future of The Euro". (video)
- "In The End Capital Controls Will Probably Have To Be Imposed" - Eurogroup Official.
- Gary Shilling says oil is going to $10.
- Big hedge funds have unloaded Alibaba(BABA).
- Big-time hedge funds bailed on oil companies.
- Five reasons why Greece will leave the eurozone this year.
- Barack Obama wants you to know that he reads all the mean things you write about him.
- REPORT: Snapchat is raising another round at a $16-$19 billion valuation.
- Putin is rubbing it in over Ukraine.
- Greece faces resistance to extra emergency funds for banks -sources. The European Central Bank faces resistance from Germany to allowing any extra emergency lending for Greek banks, people familiar with the matter said, increasing pressure on Athens to sign up to an extended aid-for-reform programme. After talks between Greece and euro zone creditors broke down acrimoniously on Monday, the ECB's policymaking governing council will review on Wednesday how far the country may support its weak banks, which face rising deposit outflows.
- Tensions rise as the eurozone plays hardball with Greece. Is the eurozone contemplating Grexit in order to encourage voters in other European countries to redouble their efforts to stay in the euro?
- Grexit fears mount as Athens leaders refuse to 'accept psychological blackmail'. Analysts have warned that financial markets are not taking the risk of a Greek euro exit seriously enough, as talks with the country's creditors fail to make progress.
- Greece Should Exit Euro, Return to Drachma, Sinn Says. Greece is broke and is already in bankruptcy negotiations, Hans-Werner Sinn, president of Germany's IFO economic research institute, says. Debt relief won't make the country competitive and would be like trying to fill a bottomless barrel. Greece has become too expensive as a result of a credit bubble induced by the euro and low interest rates and needs to become cheaper that will only be achieved by a return to the drachma. Last 5 years have been a denial of reality. Any concessions to Tsipras would be dangerous, would be a stimulus for other popular movements and would suggest "anyone can do what he wants".
- None of note
- Asian equity indices are unch. to +.75% on average.
- Asia Ex-Japan Investment Grade CDS Index 105.0 unch.
- Asia Pacific Sovereign CDS Index 66.75 unch.
- S&P 500 futures +.04%.
- NASDAQ 100 futures +.07%.
Earnings of Note
Company/Estimate
- (H)/.21
- (FLR)/1.10
- (ACT)/3.91
- (DUK)/.87
- (MAR)/.65
- (WMB)/.24
- (CAR)/.20
- (IPI)/.02
- (MIC)/.24
- (MRO)/.03
- (SCTY)/-1.27
- (CRMT)/.77
- (SNPS)/.62
8:30 am EST
- Housing Starts for January are estimated to fall to 1070K versus 1089K in December.
- Building Permits for January are estimated to rise to 1069K versus 1032K in December.
- PPI Final Demand for January is estimated to fall -.4% versus a -.2% decline in December.
- PPI Ex Food and Energy for January is estimated to rise +.1% versus a +.3% gain in December.
- Industrial Production for January is estimated to rise +.3% versus a -.1% decline in December.
- Capacity Utilization for January is estimated to rise to 79.9% versus 79.7% in December.
- Manufacturing Production for January is estimated to rise +.4% versus a +.3% gain in December.
- Minutes from Jan. 27-28 FOMC Meeting.
- Net Long-Term TIC Flows for December.
- (CNC) 2-for-1
- The weekly MBA mortgage applications report, US weekly retail sales reports, Barclays Industrial Conference, (TPX) investor day and (SMG) analyst meeting could also impact trading today.
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