Saturday, April 09, 2016

Today's Headlines

Posted by Gary .....at 7:36 PM
Bloomberg:
  • Worst Week in Two Months Rattles Equity Bulls as Earnings Loom. It’s official -- the rally in U.S. stocks that erased the worst-ever start to a year has fizzled, with the biggest weekly slide since February depriving the bull market of momentum ahead of what’s forecast to be the steepest earnings slump since the financial crisis. The Standard & Poor’s 500 Index fell 1.2 percent in the five days to 2,047.60, the second slide in the three weeks since the gauge erased an 11 percent loss for the year. The period was tumultuous, with the average daily swing of 0.8 percent the most in a month, while three days of 1 percent moves ended a 15-day stretch of calm, the longest since March 2015. The Chicago Board Options Exchange Volatility Index capped its biggest weekly advance since January.
  • China State Researcher Sees Downside Risks in Property Sales. There are downside risks for the China property market in the second quarter because of the tightening measures that have been reintroduced to some cities, a Chinese government researcher said. The curbs in first-tier cities are limiting property sales’ growth, Zhang Changcai, deputy director general at the Information Research Department of the State Council, said at a conference in Beijing Saturday.
  • Brazil Heads for Cliffhanger on Impeachment in Decisive Showdown. Brazil’s drawn-out political crisis is moving into a decisive phase next week with two key votes in Congress that could seal the fate of President Dilma Rousseff’s political future. A special committee in the lower house began a marathon session on Friday in order to decide by Monday whether to move forward with an impeachment request against Rousseff. The full Chamber of Deputies could vote as early as April 17, either killing impeachment or setting the stage for Rousseff’s ouster in the Senate.
  • ECB's Mersch Warns of Diminishing Returns in Central Bank Action. Central banks’ extraordinary measures to spur growth may eventually show diminishing returns while a key part of the European Central Bank’s quantitative easing program carries a “certain risk” that has been mitigated, ECB Executive Board member Yves Mersch said. Mersch, in a speech to the Ambrosetti Workshop in Cernobbio Italy, on Saturday, reviewed the various policy instruments that the ECB and other central banks have used to aid economic recovery. 
  • Spanish Bonds' Slide Shows Shortcomings of Expanded ECB Stimulus. (graph) The first full week of the European Central Bank’s expanded bond buying highlighted the program’s limitations in the face of heightened political risks in the euro area. The extra yield, or spread, that investors get for holding Spain’s 10-year bonds instead of similar-maturity German securities widened to the most in two months. That was even as the ECB increased the size of its monthly bond purchases to 80 billion euros ($91 billion) from 60 billion euros starting April 1 and officials signaled they were ready to further ease monetary policy to support a flagging economy and boost inflation.
  • The Yen's Puzzling Surge, Explained in One Morgan Stanley Theory.
  • SAP Sales Miss Estimates as Some Deals Slip to Next Quarter. SAP SE reported sales that missed analysts’ estimates as some deals in the Americas region were signed later than expected, though the software maker reiterated its forecast for the year. Revenue rose 5.1 percent to 4.73 billion euros ($5.4 billion) in the first quarter, compared with analysts’ average estimate of 4.82 billion euros, according to data compiled by Bloomberg. Operating profit was 1.1 billion euros, Walldorf, Germany-based SAP said in a statement, compared with analysts’ estimate of 1.15 billion. The announcement of results Friday night in Germany came ahead of SAP’s full first-quarter report scheduled for April 20.
  • Three Oil Majors Have Debt Ratings Cut by Moody's on Price Rout. Three of the world’s largest energy companies had their credit ratings lowered by Moody’s Investors Service on the expectation that oil prices will stay low for longer and cause leverage concerns. Chevron Corp. and Royal Dutch Shell Plc had their ratings reduced by one level, while Total SA’s was cut two steps, according to statements by the New York-based rating company on Friday. Chevron will generate negative cash flow amid rising debt for at least the next two years, while Shell will have elevated leverage following its acquisition of BG Group Plc, Moody’s said. Prices are expected to stay low through this year and next and continue to pressure Total’s operating cash flows and credit metrics, Moody’s said.
  • Paulson's Advantage Funds Each Tumbled 15% in First Quarter. (video) Billionaire John Paulson is joining some of the most recognizable hedge fund managers in posting big losses in the first quarter despite a rebound in global equities. Paulson & Co.’s Advantage and Advantage Plus funds, which wager on companies going through corporate events including spinoffs and bankruptcies, tumbled 15 percent in the first quarter, according to a person familiar with the matter. Both funds fell 7 percent last month, missing the 6.8 percent rally in the Standard & Poor’s 500 Index.
Wall Street Journal:
  • Cruz Collects Most Colorado Delegates. Sen. Ted Cruz of Texas swept up a fresh cache of delegates in Colorado on Friday as his supporters won a majority of the state’s 37 slots at the Republican National Convention even before the state’s full GOP convention meets here Saturday. In a series of party meetings by congressional district over the last week, Mr. Cruz’s supporters shut out his rivals to win all 21 delegate slots–3 from each of the state’s 7 congressional districts. The last meeting was Friday, in advance of the state convention that will award another 13 delegates tomorrow; 3 remaining slots are filled by top state party officials.
  • Belgium Terror Suspect Is Said to Confess in Airport Attack. Mohamed Abrini confesses to being ‘man in hat’ at Brussels airport, prosecutors say; second person present at Maelbeek metro station identified. Terrorist suspect Mohamed Abrini confessed Saturday to being the third attacker at the Brussels national airport as Belgium’s probe into the suicide bombings last month took a leap forward.
  • Apple(AAPL) Stores See Shrinking Share of iPhone Sales. More buyers are buying directly from telecom carriers.
  • Bernie Sanders Wins Wyoming’s Democratic Caucuses. Delegates to be distributed proportionally; Hillary Clinton maintains lead. Sen. Bernie Sanders won the Wyoming caucuses on Saturday, adding to a string of recent victories and giving his underdog campaign a shot of momentum heading into the more important New York primary this month. The Associated Press projected that Mr. Sanders would beat front-runner Hillary Clinton with 96% of the precincts reporting.
Barron's:
  • Had bullish commentary on (DIS), (TOL), (OI), (STX) and (AAPL).
CNBC:
Zero Hedge:
Business Insider:
Reuters:
  • Financial turmoil at SunEdison(SUNE) imperils solar projects worldwide. In November, solar energy giant SunEdison Inc  reported that its project pipeline had grown by 75 percent in just a year, the result of an aggressive growth strategy. Now, five months later, many of those projects are imperiled as SunEdison reportedly prepares to declare bankruptcy.
The Telegraph:

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