Bloomberg:
- Greece Struggles to Make Debt Math Work Amid Bailout Standoff. As talks over the disbursement of bailout funds for Greece drag on into their seventh consecutive month, the deadlock threatens to pull the country back into a recession this quarter, or even a possible default within weeks. Greece needs to refinance or repay about 6.5 billion euros ($7.2 billion) in debt and interest in the next three weeks, including Treasury bill redemptions, according to data compiled by Bloomberg. To top that, its budget forecasts a 2.1 billion cash deficit in March. A shortfall in tax revenue already opened a cash hole of 217 million euros in January, derailing budget targets.
- China Lowers Growth Target to About 7% as Headwinds Intensify. China set the lowest economic growth target in more than 15 years as leaders tackle the side effects of a generation-long expansion that has spurred corruption, fueled debt risks and polluted skies and rivers. The goal of about 7 percent -- down from last year’s aspiration of about 7.5 percent -- was given in a work report that Premier Li Keqiang will deliver to the annual meeting of the legislature today in Beijing. The inflation target was set at about 3 percent.
- Brazil Raises Rate to Highest Since 2009 After Prices Surge. Brazil raised borrowing costs for a fourth straight meeting to the highest level in almost six years after monthly inflation jumped the most since 2003. The board, led by President Alexandre Tombini, in a unanimous vote maintained the pace of monetary policy tightening with a half-point increase to 12.75 percent, as expected by 59 of 63 economists surveyed by Bloomberg. Four analysts forecast a quarter-point increase. Policy makers took into consideration “the macroeconomic scenario and the inflation outlook,” according to the central bank statement, which was virtually unchanged from the prior meeting.
- Islamic Militancy Rises in Blood-Stained Bangladesh Orchards. The widening polarization in Bangladesh threatens to hobble an economy that is now the world’s second-biggest exporter of garments after China. It also may swell the ranks of Islamic militant groups in the predominately Muslim country, where a U.S. blogger who wrote about religious tolerance was hacked to death with a machete last week in Dhaka, the capital.
- China’s Stocks Fall After Government Cuts Economic Growth Target. China’s stocks fell, led by financial and industrial shares, after the government set the lowest economic growth target in more than 15 years and concern grew that new share offerings will divert funds from existing equities. China Railway Construction Corp. and China Eastern Airlines Corp. dropped more than 2 percent to pace declines for industrial companies. Bank of China Ltd. and China Life Insurance Co. both slid 1.8 percent. PetroChina Co. dropped for a fourth day. Drugmakers surged for a second day, with Jiangsu Hengrui Medicine Co. jumping 2.7 percent. The Shanghai Composite Index slid 0.6 percent to 3,259.27 at 9:45 a.m.
- Asia Stocks Fall as Investors Weigh China Growth Goal, U.S. Data. Asian stocks fell as China set the lowest economic growth target in more than 15 years and investors assessed American data on jobs and service industries. The MSCI Asia Pacific Index slipped 0.2 percent to 145.32 as of 9:04 a.m. in Tokyo.
- Another Slushy Mess Due for New York From Late Winter Snowstorm. New York might get 4 to 7 inches of snow and Washington as much as 6 from a large winter storm dumping ice, sleet and snow from Texas to New England. Northern New Jersey could get 6 inches before the storm ends Thursday, said David Roache, a National Weather Service meteorologist in Upton, New York. Rain was forecast to turn to ice and then snow overnight, threatening a messy morning commute.
- Iran Flexes New Clout Beyond Its Borders. But influence comes with commitments that strain domestic economy, and risks fueling sectarian divide. Not long ago, Qasem Soleimani, head of Iran’s elite troops known as the Quds Force, was one of the spy world’s most covert operators. Now, his smiling face is everywhere.
- Justices Divided at Health-Law Argument. Liberals grill plaintiffs, conservatives tough on government in case concerning Affordable Care Act subsidies; focus turns to Justice Anthony Kennedy, Chief Justice John Roberts.
- Obama’s Iran Entitlement. What has Obama done to earn trust for this unilateral deal? As the Obama administration moves toward the March 24 deadline for a nuclear-arms deal with Iran, what becomes ever more clear is that no other American president has so confused personal entitlement with political trust. In David Axelrod’s memoir of his time with Barack Obama, he relates how the freshman senator from Illinois remarked on his impending presidential run:
- US ambassador to South Korea injured in razor attack. (video) The U.S. ambassador to South Korea was injured by a man wielding a razor Thursday morning in Seoul, and his assailant was immediately detained. Mark W. Lippert was rushed to a nearby hospital with cuts to his face and wrist, the South Korean news agency Yonhap reported, and appeared to be splattered with blood but was on his feet, TV images show. He was on his way to attend a morning lecture in central Seoul when the attack took place shortly before 8 a.m.
- Defense secretary takes issue with 3-year timeline in Obama’s ISIS plan. (video) New Defense Secretary Ash Carter already is showing an independent streak, speaking out against the three-year timeline included in President Obama’s formal request for military force against the Islamic State. Testifying before a House subcommittee on Wednesday, Carter called that timeline “political.”
Zero Hedge:
Business Insider:
Telegraph:
- Liquidity evaporates in China as 'fiscal cliff' nears. Unless China changes course, it is set to tighten fiscal policy by 5.5pc of GDP this year, five times Britain's austerity dose annually since the Lehman crisis.
- China Must Resolve Local Debt Problem. The global economic situation is "complex and challenging" this year, citing Vice Finance Minister Zhu Guangyao. China must resolve problems from past large-scale stimulus, such as the local debt problem, the report said.
- None of note
- Asian equity indices are -.75% to unch. on average.
- Asia Ex-Japan Investment Grade CDS Index 102.0 +1.0 basis point.
- Asia Pacific Sovereign CDS Index 62.75 +1.25 basis points.
- S&P 500 futures unch.
- NASDAQ 100 futures -.02%.
Earnings of Note
Company/Estimate
- (CIEN)/.02
- (COST)/1.18
- (JOY)/.36
- (KR)/.90
- (COO)/1.55
- (SINA)/.18
- (TFM)/.51
7:30 am EST
- Challenger Job Cuts for February.
- Final 4Q Non-Farm Productivity is estimated to fall -2.3% versus a prior estimate of a -1.8% decline.
- Final 4Q Unit Labor Costs are estimated to rise +3.3% versus a prior estimate of a +2.7% gain.
- Initial Jobless Claims are estimated to fall to 295K versus 313K the prior week.
- Continuing Claims are estimated to fall to 2395K versus 2401K prior.
- Factor Orders for January are estimated to rise +.2% versus a -3.4% decline in December.
- None of note
- The ECB rate decision, BoE rate decision, Draghi press conference, weekly EIA natural gas inventory report, weekly Bloomberg Consumer Comfort Index, (P) investor day, (LB) business update and the BofA Merrill Refining Conference could also impact trading today.
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