Euro Dominos Will Fall Until Currency is Split: Matthew Lynn. Who’s next? First Greece went bust. Now Ireland is on the brink of a bailout from the European Union and the International Monetary Fund. When it happens, we’ll hear plenty of soothing words about how contagion has been stopped, the euro area has been put on a firmer footing, and the single currency saved. There will be a lot of grand rhetoric about the importance of the European project. Stern condemnations of the speculators will ring out across the continent. Don’t listen to a word of it. The euro has turned into a bankruptcy machine. Once the markets have finished with Ireland, they will simply move on to Portugal and Spain, and after that to Italy and France. There is a domino effect at work, and, with each rescue, the fault lines within the euro grow wider and wider. This process isn’t going to stop until the euro is taken apart.
Gap(GPS), Wal-Mart(WMT) Clothing Costs Rise on 'Terrifying' Cotton Prices. Gap Inc., J.C. Penney Co. and other U.S. retailers may have to pay Chinese suppliers as much as 30 percent more for clothes as surging cotton prices boost costs. “It’s a little terrifying to deal with cotton suppliers now,” said Vicky Wu, a sales manager at Suzhou Unitedtex Enterprise Ltd., a closely held, Jiangsu province-based clothes maker that counts Gap and J.C. Penney among its clients.
Sarkozy Under Pressure as French Debt Market Feels Irish Heat: Euro Credit. French President Nicolas Sarkozy, fresh from skirmishes over plans to raise the retirement age, is now under pressure to reduce the government deficit as investors punish nations such as Ireland for having too much debt. The extra yield investors demand to hold 10-year French government bonds instead of German securities of similar maturity reached 50 basis points last week, the most since June. France’s debt costs more to insure against default than in Chile and Malaysia, both of which have lower credit ratings. Its debt will equal about 84 percent of gross domestic product by the end of the year, more than the Netherlands and Germany, according to estimates from the European Commission. “I’ve never liked the liability profile of France because of its over-reliance on shorter maturities,” said Louis Gargour, chief investment officer at LNG Capital LLP, a London- based hedge fund he co-founded in 2006. “If deficits rise or borrowing costs increase, that debt becomes more difficult to refinance.”
Hedge Funds Increase Natural Gas Bets Before Price Decline: Energy Markets. Hedge funds raised bullish bets on natural gas futures to a six-week high the day before prices plunged on record inventories and warmer-than-expected weather. The funds and other large speculators increased wagers that prices will rise by 24 percent in the seven days ended Nov. 9, according to the Commodity Futures Trading Commission’s weekly Commitments of Traders report, which was released yesterday. On Nov. 10, the Energy Department reported that stockpiles rose to 3.84 trillion cubic feet, surpassing last November’s total.
Eton Park, Paulson Sell Stakes in Goldman Goldman Sachs(GS). Eric Mindich’s Eton Park Capital Management LP and John Paulson’s hedge fund sold their stakes in Goldman Sachs Group Inc. during the third quarter. Eton Park previously held 2 million shares of New York- based Goldman Sachs, according to a filing today with the U.S. Securities and Exchange Commission. Paulson & Co. sold 1.1 million shares of the bank, a separate filing shows. Mindich, 43, is a former Goldman Sachs partner who began New York-based Eton Park in 2004 with $3.5 billion, one of the biggest startups in the hedge-fund industry.
Copper Resumes Decline on Concern China Demand May Slow, Dollar's Advance. Copper in London resumed a decline as the dollar’s rebound hurt demand for commodities priced in the U.S. currency amid the potential for slowing demand in China, the world’s largest user. The metal pared early gains in Shanghai. Copper for three-month delivery on the London Metal Exchange fell as much as 0.9 percent to $8,570 a metric ton, and traded at $8,595 a ton by 9:05 a.m. Singapore time.
'Sarah Palin's Alaska' Is Most-Watched Premiere on Discovery's(DISCA) TLC Network. "Sarah Palin’s Alaska," the reality- TV show on Discovery Communications Inc.’s TLC network, drew 4.96 million viewers for its premiere episode last night. The documentary-style series, in which former Alaska Governor Palin explores the state’s wilderness and lifestyle, was the most-watched premiere ever on TLC.
McConnell to Back Ban on 'Earmarks' for Pet Projects. Senate Minority Leader Mitch McConnell, faced with greater influence of lawmakers elected with Tea Party support, dropped his opposition to a plan by House Republican leaders to ban budget “earmarks” for lawmakers’ pet projects.
Pence to Introduce Bill Ending Fed Dual Mandate. U.S. Representative Mike Pence, chairman of the House Republican Conference, said he plans to introduce a bill tomorrow that would end the Federal Reserve’s dual mandate, forcing the central bank to focus on inflation. “The Fed’s dual mandate has failed,” Pence, of Indiana, said in a statement.
Solar panel makers from Arizona to Shanghai face a price crunch in 2011 because they're adding manufacturing capacity just as global demand is poised to fall, Axiom Capital Management Inc. said. The supply of photovoltaic panels may climb to almost triple the level of demand next year, flooding the market and potentially crashing the price, said Gordon Johnson, Axiom's NY-based solar power analyst. "It could be Armageddon," he said in an interview. "Demand is about to fall at a time when you're going to have a significant increase in supply. In a commoditized industry, that is a formula for disaster." Manufacturers have sold a record number of panels this year as developers rushed to connect them to the grid and lock in subsidized power prices before the rates are cut by governments in Germany, Italy and the Czech Republic. In Germany's case, the world's largest panel market, demand will fall in 2011 after the state cuts rates producers earn by 13%, Johnson said. That will glut the market next year for photovoltaic panels, which turn sunlight into electricity, and drive the price manufacturers can charge down to as low as $1.10 per watt from about $1.80 this year, Johnson said.
China's 'State Capitalism' Sparks a Global Backlash. Since the end of the Cold War, the world's powers have generally agreed on the wisdom of letting market competition—more than government planning—shape economic outcomes. China's national economic strategy is disrupting that consensus, and a look at the ascent of solar-energy magnate Zhu Gongshan explains why.
BHP(BHP) to Scale Back its Acquisitions Strategy. After failing three times to execute huge deals, BHP Billiton Chief Executive Marius Kloppers is expected to reveal a change in his acquisitions strategy in favor of buying smaller, more manageable resource companies and focusing less on blockbuster mergers. The Anglo-Australian miner also is likely to increase the size of its $4.2 billion share-buyback program.
U.S. Pursues Wider Role in Yemen. Americans Move to Bring In Equipment and Operatives and Propose New Bases for Fight Against al Qaeda Affiliate.
Illegal Immigrants Win Ruling on College Fees. Illegal immigrants in California may continue to pay the lower in-state fees at public colleges and universities, the state's top court ruled Monday, a decision that saves them as much as $23,000 a year.
California's Destructive Green Jobs Lobby by George Gilder. Silicon Valley, once synonymous with productivity-enhancing innovation, is now looking to make money on feel-good government handouts. California officials acknowledged last Thursday that the state faces $20 billion deficits every year from now to 2016. At the same time, California's state Treasurer entered bond markets to sell some $14 billion in "revenue anticipation notes" over the next two weeks. Worst of all, economic sanity lost out in what may have been the most important election on Nov. 2—and, no, I'm not talking about the gubernatorial or senate races. This was the California referendum to repeal Assembly Bill 32, the so-called Global Warming Solutions Act, which ratchets the state's economy back to 1990 levels of greenhouse gases by 2020. That's a 30% drop followed by a mandated 80% overall drop by 2050. Together with a $500 billion public-pension overhang, the new energy cap dooms the state to bankruptcy.
Google(GOOG) CEO: Android Update "could replace credit cards". The next generation of Android is coming in a few weeks, and that update to the mobile operating system "could replace credit cards," according to Google chief executive Eric Schmidt.
Forbes:
Big Pharma's Comeback? Get ready for plenty of direct-to-consumer advertisements, celebrity awareness campaigns, and big-selling drugs, because Big Pharma appears to have found not just a single hit, but a whole bunch of them.
The Street.com:
David Einhorn Buys Apple(AAPL), Sells EMC(EMC). Hedge fund titan David Einhorn bought more Appleand increased positions in tech stocks during the third quarter, according to the latest regulatory filing with Securities and Exchange Commission.
Politico:
Nancy Pelosi Scrambles to Thwart Rebellion. Nancy Pelosi is getting the first test of her might under the new Democratic reality as she scrambles to extinguish a rebellion against her power to appoint lieutenants to top party posts. Realizing they don’t have the votes to knock the defeated speaker from the top perch in party leadership, moderate Blue Dog Democrats have set their sights a little lower, targeting liberal Pelosi enforcers George Miller (D-Calif.), Rosa DeLauro (D-Conn.) and Louise Slaughter (D-N.Y.), all of whom hold influential jobs because Pelosi has installed them.
Reuters:
Venezuela to Open "Socialist" Securities Exchange. In what President Hugo Chavez described as a blow for "vampire" capitalism, Venezuela will next month open a state-run stock and bond exchange aimed at financing public companies and wooing middle class voters. In recent weeks, Chavez has accelerated his drive to increase the hand of the state in all sectors of the economy including finance, housing and food production. Oil and heavy industry is already largely government run. "The public securities exchange system has been born," Chavez said on his weekly TV show on Sunday in a speech peppered with references to capitalist "vampires" and "vultures." He said it will open in December. "This is not the capitalist exchange, Dracula, this is the socialist exchange. The state and the republic guarantee your money and it will have a good yield."
US Offshore Oil Leasing Could Be Delayed - API. Next year may be the first time in over four decades that the United States does not lease areas in the Gulf of Mexico for oil or gas drilling, because of additional environmental reviews planned by the Obama administration, a major oil lobbying group said on Monday.
Telegraph:
Contagion Hits Portugal as Ireland Dithers on Rescue. The EU authorities have begun to vent their fury against Ireland over its refusal to accept a financial rescue, fearing that the crisis will engulf Portugal and Spain unless confidence is restored immediately to eurozone bond markets.
National Post:
Muslims Told to Reject West: Report. A newly released intelligence report says hard-line Islamist groups want to build a "parallel society" in Canada, which could undermine the country's social cohesion and foster violence. The de-classified Intelligence Assessment obtained by the National Post says extremists have been encouraging Muslims in the West to reject Western society and to live in "self-imposed isolation." The report focuses on groups such as the Muslim Brotherhood and Hizb-ut-Tahrir, which do not advocate terrorist violence but promote an ideology at odds with core Western values. "Even if the use of violence is not outwardly expressed, the creation of isolated communities can spawn groups that are exclusivist and potentially open to messages in which violence is advocated," it says. "At a minimum, the existence of such mini-societies undermines resilience and the fostering of a cohesive Canadian nation."
China Securities Journal:
China will introduce measures to control rising food prices, including limits on how much products may be sold for and subsidies. The government will also increase punishment for speculators in cotton and corn.
21st Century Business Herdald:
China may adjust its economic policies for 2011 on increasing inflation pressure, citing an adviser for the central government's economic work meeting which will be held in December. It is likely that the country will shift to a combination of prudent monetary policy and proactive fiscal policy, citing Yang Tao, a researcher with the Chinese Academy of Social Sciences. There's still space for increasing interest rates and reserve ratios.
China Business News:
Chinese regulators want to remove most risks from loans taken by local government's financing vehicles by the end of 2012. Regulators want to reduce risks by securing repayments and writeoffs. The China Banking Regulatory Commission is asking its local branches to report the result of field checks on financing vehicle loans before Dec. 15.
Evening Recommendations Citigroup:
Reiterated Buy on (EPB), raised target to $38.50.
Reiterated Buy on (ITW), target $58.
Reiterated Buy on (RAI), target $79.
Night Trading
Asian equity indices are -.75% to +.50% on average.
Asia Ex-Japan Investment Grade CDS Index 109.0 +1.0 basis point.
Asia Pacific Sovereign CDS Index 102.0 -.5 basis point.
The Producer Price Index for October is estimated to rise +.8% versus a +.4% gain in September.
The PPI Ex Food & Energy for October is estimated to rise +.1% versus a +.1% gain in September.
9:00 am EST
Net Long-Term TIC Flows for September are estimated to fall to $62.5 Billion versus a $128.7 Billion in August.
9:15 am EST
Industrial Production for October is estimated to rise +.3% versus a -.2% decline in September.
Capacity Utilization for October is estimated to rise to 74.9% versus 74.7% in September.
10:00 am EST
The NAHB Housing Market Index for November is estimated to rise to 17.0 versus 16.0 in October.
Upcoming Splits
(RAI) 2-for-1
(AOS) 3-for-2
Other Potential Market Movers
The Fed's Lockhart speaking, weekly retail sales reports, weekly ABC Consumer Confidence reading, Morgan Stanley Consumer/Retail Conference and the (FFIV) investor meeting could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by financial and real estate shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.
North American Investment Grade CDS Index 91.77 bps -.79%
European Financial Sector CDS Index 112.28 bps +3.87%
Western Europe Sovereign Debt CDS Index 165.66 bps -2.74%
Emerging Market CDS Index 213.41 bps +1.46%
2-Year Swap Spread 20.0 -2 bps
TED Spread 15.0 -1 bp
Economic Gauges:
3-Month T-Bill Yield .13% +1 bp
Yield Curve 239.0 +13 bps
China Import Iron Ore Spot $160.80/Metric Tonne -.62%
Citi US Economic Surprise Index +28.50 -7.5 points
10-Year TIPS Spread 2.09% +1 bp
Overseas Futures:
Nikkei Futures: Indicating +68 open in Japan
DAX Futures: Indicating +9 open in Germany
Portfolio:
Slightly Higher: On gains in my Medical and Biotech long positions
Disclosed Trades: None
Market Exposure: 75% Net Long
BOTTOM LINE: Today's overall market action is mildly bullish as the S&P 500 trades just slightly higher despite a decline in euro sovereign debt angst, buyout activity and mostly positive US economic data. On the positive side, Road & Rail, Education, Gaming, Disk Drive and Oil Tanker Shares are especially strong, rising more than 1%. (XLF) has outperformed throughout the day. Small-cap and cyclical shares are also outperforming. The Spain sovereign cds is declining -4.56% to 254.83 bps, the Portugal sovereign cds is down -2.80% to 438.61 bps and the Ireland sovereign cds is down -4.93% to 525.34 bps. On the negative side, Homebuilding, Networking, Internet, Gold, Ag and HMO shares are under meaningful pressure, falling more than 1.0%. Tech sector shares have underperformed today. Lumber is dropping -1.5%. The Illinois and California municipal cds are up +3.87% and +4.21%, respectively. Another jump in the Euro Financial Sector CDS Index, despite the decline in euro sovereign debt angst, is also a big negative. The euro currency continues to trade poorly. DRAM prices continue to move lower. The Citi Asia Pacific Economic Surprise Index is falling another -2.2 points today to -3.50, which is very near a 52-week low. The 10-year yield continues to rise too much too fast, gaining another +13 bps to 2.92%. Overall investor angst is a big too bullish given recent headwinds and the market's overbought technical state, which is also a negative. I expect US stocks to trade mixed-to-lower into the close from current levels on rising US municipal debt angst, rising long-term rates, profit-taking, more shorting and China hard-landing fears.
Sovereign Bond Default Risk Tumbles in Europe on Ireland Bailout Wagers. The cost of insuring against losses on European government bonds fell on speculation pressure from euro-region central bankers will force Ireland to accept an international bailout that would calm markets. Credit-default swaps on Irish government debt fell for a third day, dropping 58.5 basis points to 488, the lowest level since Oct. 29, according to data provider CMA. The Markit iTraxx SovX Western Europe Index of swaps on 15 governments declined 8.5 basis points to 160.Pressure is mounting on Ireland to follow Greece in turning to the European Union’s rescue fund as the region’s deficit crisis worsens. European Central Bank Vice President Vitor Constancio said today that Ireland would be able to tap the fund to save its banks, while fellow central bank council member Miguel Angel Fernandez Ordonez said the nation should make a “final decision” on an aid plan. Swaps on Ireland reached a record high closing price of 599 basis points last week on concern the ballooning cost of rescuing its banking system is becoming unsustainable. Contagion from Ireland also helped push the cost of insuring Portuguese and Spanish debt to records on Nov. 11. Portugal declined 35 basis points to 401 today and Spain was 15 lower at 246. Italy fell 8.5 to 180, CMA prices show. Swaps on Greece declined 7 basis points to 857, reversing an earlier increase after European Union authorities revised the nation’s budget deficit to 15.4 percent of gross domestic product from 13.6 percent, making it the euro region’s largest shortfall. Contracts on the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings declined 3 basis points to 457, according to JPMorgan Chase & Co. The Markit iTraxx Europe Index of 125 companies with investment-grade ratings decreased 1.75 basis points to 101.5. The Markit iTraxx Financial Index linked to the senior debt of 25 banks and insurers dropped 4.5 to 134 and the subordinated index was 9.5 lower at 210.5.
U.S. Economy: Sales at Retailers Climb by Most in Seven Months. Sales at U.S. retailers climbed in October by the most in seven months, brightening the outlook for holiday shopping even as unemployment holds near 10 percent.Purchases rose 1.2 percent, exceeding the highest forecast among economists surveyed by Bloomberg News, according to data from the Commerce Department issued today in Washington.
California's $25 Billion Budget Gap Looms Over Revenue Notes: Muni Credit. California is selling $10 billion of one-year notes to boost cash on hand, as the state that produces 13 percent of the U.S. gross domestic product tries to assure investors it can repay the loan amid a $25 billion budget gap.
Greek Deficit Tops EU Ranking, Putting Pressure on Papandreou. Greece’s budget deficit was revised to the highest in the euro region, putting pressure on Prime Minister George Papandreou to adopt more austerity measures to meet pledges included in the bailout package that allowed the country to avoid default. Greece’s shortfall last year was revised to 15.4 percent of gross domestic product from 13.6 percent, surpassing Ireland at 14.4 percent, Eurostat, the EU’s Luxembourg-based statistics office said today. The shortfall this year will be 9.4 percent of GDP, more than the 8.1 percent the government announced in May, the Greek Finance Ministry said today in a separate statement.
Manufacturing Growth in New York Region Contracts in November. Manufacturing in the New York region unexpectedly contracted in November for the first time in more than a year, a warning sign the industry that led the economy out of the recession may again be cooling. The Federal Reserve Bank of New York’s general economic index fell to minus 11.1 from 15.7 in October. Readings less than zero signal contractions in the so-called Empire State Index, which covers New York, northern New Jersey and southern Connecticut. Economists forecast the measure would fall to 14 this month, according to the median projection in a Bloomberg News survey.
Caterpillar(CAT) Buys Bucyrus(BUCY) for $7.6 Billion to Growing Mining Range. Caterpillar Inc., the world’s largest maker of construction equipment, agreed to buy Bucyrus International Inc. for $7.6 billion to add shovels and drills to its range of mining machinery. Bucyrus shareholders will receive $92 a share, 32 percent more than the Nov. 12 closing share price, Peoria, Illinois- based Caterpillar said today in a statement.
Mortgage-Bond Yields That Guide Home Loans in U.S. Soar to Four-Month High. Yields on Fannie Mae and Freddie Mac mortgage securities that guide home-loan rates reached their highest levels in four months, suggesting borrowing costs may rise from record lows. Fannie Mae’s current-coupon 30-year fixed-rate mortgage bonds climbed to 3.71 percent as of 9:30 a.m. in New York, tracking 10-year Treasuries today as those yields rose from 3.64 percent to the highest since July 13, according to data compiled by Bloomberg. Yields on the mortgage securities, which typically increase loan rates by similar amounts, have risen from 3.27 percent on Nov. 4. Benchmark Treasury yields have jumped as the Federal Reserve embarks on buying an additional $600 billion of U.S. government debt in a bid to spur economic growth.
Merkel Tells CDU Gathering Europe Can't Afford to Let Shared Currency Fail. German Chancellor Angela Merkel said the euro is the glue that holds Europe together, signaling that an Irish bailout may be the price of preserving European unity. Merkel is “trying to send a clear message that Germany is pro-European, that they are ready to help out Ireland, Portugal and other countries if necessary and they will not put the euro at risk,” Henrik Enderlein, a political economist at the Hertie School of Governance in Berlin, said by phone. She “wants the Irish to take the bailout now to make it clear to everyone that the situation is safe, that markets should calm down.”
Wall Street Journal:
Portugal Finance Minister: Ireland Must Take Account of What is Best for Euro. Portugal's finance minister said the Irish government must take into account what is best for the euro zone as well as the country when it decides whether to seek financial help from the European Union and International Monetary Fund.
SEC to Issue Proposal to Register Hedge Funds. The Securities and Exchange Commission will meet Friday to consider new rules to force hedge funds and other private funds to register with the agency and to undergo exams. The SEC, which placed a notice of the meeting on its website, also will vote on proposing rules to quadruple the threshold for SEC oversight of investment advisers, to $100 million of assets under management from $25 million. Under such a move, thousands of smaller hedge funds and other investment advisers would be overseen by state regulators. The SEC will propose language creating an exemption from registration for venture-capital funds and hedge funds with less than $150 million under management in the U.S.
CNBC:
Bove: Market Doomed Because of QE2? A growing chorus of critics are sounding the alarm about QE2; in fact they think it has the potential to be the downfall of the US. We know that's dramatic but that's effectively what widely followed strategist Dick Bove of Rochdale told us on the Halftime Report. He believes the economic damage generated by QE2 could doom America to a fate similar to the Weimar Republic, which you'll remember disintegrated into Hitler’s chancellorship largely due runaway inflation and a government perceived as grossly inept.
Fed Stimulus Policy is Counterproductive: Economist. The Fed’s stimulus-oriented policy is counterproductive to its mission: boosting jobs and small business confidence, David Malpass, president of Encima Global, an economic research and consulting firm, told CNBC on Monday. “Should the Fed be borrowing $600 billion from banks—banks that otherwise would lend to small businesses and dump it into the federal government?” he said. “It doesn’t make sense; it’s not necessary. And it diverts attention from what should be going on, which is the government getting its act in order.”
Business Insider:
Oh Boy, California Munis Are Getting Crushed Again Today. This is getting scary. Following a week of utter drubbing in the muni, California bonds are getting crushed today. The PIMCO California Municipal Income Fund is down 3%. There's something extremely PIIG-like about the speed of this collapse right now. Bear in mind that California has at least $12 billion in fresh auctions this week.
Putting Money on Lawsuits, Investors Share in the Payouts. Large banks, hedge funds and private investors hungry for new and lucrative opportunities are bankrolling other people’s lawsuits, pumping hundreds of millions of dollars into medical malpractice claims, divorce battles and class actions against corporations — all in the hope of sharing in the potential winnings.
Goldman(GS), JPMorgan(JPM) Lobbyists Top the List With Most Visits to Regulators on FinReg. Since July, financial regulators have had more than 500 meetings with lobbyistsfrom hundreds of companies seeking to shape the interpretation and enforcement of new financial reform law, according to the Los Angeles Times. Most groups in these meetings—more than 90 percent, according to the Times—are banks, hedge funds, and other big companies that rely on the financial industry.
Charlie Rangel Walks Out of Ethics Trial. Complaining bitterly that he was denied the right to have an attorney present, an emotional Rep. Charles Rangel (D-N.Y.) walked out of his highly publicized public ethics trial Monday morning, an unexpected twist in the ethics inquiry has tarnished Rangel’s four-decade congressional career. The ethics panel, after an unexpected 40-minute private session, rejected Rangel’s request to delay the trial and went ahead anyway. The witness chair where Rangel was supposed to sit was empty, a dramatic sign of Rangel’s refusal to participate.
Blue Dogs Target Nancy Pelosi, Democratic Rules. Members of the Blue Dog Coalition of conservative House Democrats are developing a series of amendments to caucus rules that would strip away Democratic leader Nancy Pelosi's power to appoint allies to top party posts. Drafts of the amendments obtained by POLITICO would ensure open elections for the chairmanship of the Democratic Congressional Campaign Committee, the top Democratic slot on the House Rules Committee, the post of assistant to the leader and the co-chairmen of the Democratic Steering and Policy Committee, which hands out committee assignments. A fifth amendment would create new Steering and Policy Committee co-chairmanships for outreach and messaging.
Rasmussen Reports:
58% Favor Repeal of Health Care Law, 37% Oppose Repeal. Voters continue to favor repeal of the new national health care plan, and most continue to believe the law will be bad for the country overall. A new Rasmussen Reports national telephone survey finds that 58% of Likely Voters at least somewhat favor repeal of the health care law. Thirty-seven percent (37%) oppose repeal. These findings include 46% who Strongly Favor Repeal and 30% who Strongly Oppose it.
USA Today:
Napolitano Asks Fliers for 'Patience' on Body Scanners. The nation's Homeland Security chief asked for air travelers' "cooperation" and "patience" with full-body scanning and pat downs this holiday season amid a growing public backlash that the airport tactics are intrusive. "Each and every one of the security measures we implement serves an important goal," Homeland Security Secretary Janet Napolitano writes in a column for today's USA TODAY, which asks the public to be a partner in defending against terrorism. Yet some consumer, civil rights and pilots groups are protesting new Transportation Security Administration (TSA) methods they say go too far. "The public is done with their rights being violated," says Kate Hanni, executive director of the travel group flyersrights.org. "People are just furious" about the body scanners, which peer beneath clothing, and pat downs of their private areas if they refuse to be scanned.
Reuters:
Q+A - How Tough Will US CFTC Be on Speculators? Companies that trade energy, metals and agricultural futures and swaps are closely watching how tough a stance the U.S. futures regulator takes against speculators in new position limits for commodities.
Lenihan 'to seek EU funds for the banks'. Move would let State save face and avoid bailout threat. FINANCE Minister Brian Lenihan is considering asking for money for Irish banks from the EU emergency fund in a bid to fend off a threatened bailout for the State. The Irish Independent understands Mr Lenihan may ask fellow European finance ministers in Brussels tomorrow if it would be possible for the banking sector alone to access money from the rescue fund.
The Post.IE:
Pensions to Be Biggest Hedge Fund Investors. Pension funds will be the biggest net investor in hedge funds in the five years to December 2013, according to research from Bank of New York Mellon. A study by the bank predicted that hedge funds would see net inflows of $252 billion from pension funds during the five-year period.
