Style Outperformer:
Sector Outperformers:
- Coal +1.88% 2) Gold & Silver +1.68% 3) Tobacco +1.19%
Stocks Rising on Unusual Volume:
- V, COG, RRC, RALY, FLTX, FB, USU, OKE, SPR, BIDU, IMAX, TEAR, APD, FFIV, AMCC, BSX, UA, ETFC, TRIP, ORLY, ITMN, BC, GNC, MJN, IM and CMO
Stocks With Unusual Call Option Activity:
- 1) NRG 2) TRIP 3) SAI 4) CROX 5) BSX
Stocks With Most Positive News Mentions:
- 1) CCE 2) NOC 3) UTX 4) STX 5) POT
Charts:
Evening Headlines
Bloomberg:
- China Wrings Price Cuts in Public Campaign on Graft-to-Collusion. Behind
China’s expanding anti-corruption probe of international drugmakers is a
populist campaign to drive down drug prices as China, like the U.S.,
seeks to expand health care to the poor and uninsured. The pressure on
multinationals comes as the country faces a slowing economy that
threatens its promise to deliver rising living standards and as
President Xi Jinping has made affordable health care a key part of the
Communist Party’s agenda.
- Beijing Sells Residential Land at Record on Luxury Home Demand. Beijing sold a high-end residential
land parcel for a record price as developers sought to tap
rising demand for luxury homes even as the government maintains
its property curbs. The number of apartments sold for more than 10 million yuan
in the Chinese capital jumped 81 percent to 1,388 in the first
half from a year earlier, as wealthy buyers favored bigger
properties under the government’s purchase restrictions, Bacic &
5i5j said. China’s new home prices rose in all but one city in
June, official data showed this month, underscoring Premier Li
Keqiang’s struggle to make housing affordable even as the
economy cools.
- Japan Seen Needing $50 Billion to Cushion Sales-Tax Rise. Japanese Prime Minister Shinzo Abe,
now sitting on the biggest parliamentary majority in six years,
faces the threat of political dissent within months as a planned sales-tax rise threatens to arrest an economic rebound. The
world’s third-largest economy has 30 percent odds of tipping into the
fourth recession since 2008 should Abe bump the consumption levy to 8
percent in April from 5 percent, according
to the median of 23 estimates in a Bloomberg News survey.
- China Stocks Fall as Technology, Small Companies Drop; CSR Gains.
Chinese stocks fell as technology and small-company shares slumped
after a three-day rally, overshadowing gains for industrial companies.
BOE Technology Group Co. slid 4.6 percent, sending a
measure of technology shares to the biggest loss among the 10
industries in the CSI 300 Index. CSR Corp., the nation’s biggest
trainmaker, and China Railway Construction Corp. jumped more
than 5 percent. The government yesterday announced measures to
accelerate railway construction, cut taxes for small companies
and support exporters by reducing administrative fees. The Shanghai Composite Index (SHCOMP) fell 0.1 percent to 2,031.75
at 10:49 a.m. local time.
- Asian Stocks to Won Slip on Stimulus Bets; Kiwi Gains.
Asian stocks fell the most in more than two weeks and emerging-market
currencies weakened as investors weighed the withdrawal of Federal
Reserve stimulus. Metals and oil retreated, while New Zealand’s dollar
rallied. The MSCI Asia Pacific Index lost 0.7 percent to 135.99 as of 12:15 p.m. in Tokyo, the most since July 8. South Korea’s won and Thai baht weakened at least 0.4 percent, while New Zealand’s dollar gained 0.6 percent.
- Spanish Train Crash Kills 77, Biggest Toll Since Madrid Bombing. A
train derailment near the
northwestern Spanish city of Santiago de Compostela killed at least 77
people, the highest death toll in a rail incident since the 2004 Madrid
bombing. The number of fatalities may increase because parts of the wreckage are difficult to access, said a spokeswoman for the
high court of the region of Galicia. She requested anonymity
citing the policy of the court, which is involved in the legal
procedures surrounding the crash.
Wall Street Journal:
- Stalled Project Shows Why China's Economy Is Wobbling. The $91 Billion Caofeidian Industrial Zone Is Mired in Debt and Unfulfilled Promise. A $91 billion industrial project here, mired in debt and unfulfilled
promise, suggests part of the reason why China's economy is wobbling –
and why it will be hard to turn around. The steel mill at the heart of Caofeidian, which is outside the city
of Tangshan, about 225 kilometers (140 miles) southeast of Beijing, is
losing money. Nearby, an office park planned to be finished in 2010 is a mass of steel
frames and unfinished buildings. Work on a residential complex was
halted last Christmas, after workers completed the concrete frames.
There is even a Bridge to Nowhere: a six-lane span abandoned after 10
support pylons were erected. "You only need to look around to see how things are going," said Zhao
Jianjun, a worker at a plant that hasn't produced its steel-reinforced
plastic pipes for months. "Look north, west, east," he said, gesturing
to empty buildings. Chen Gong, chairman of Beijing Anbound Information, a
Chinese think tank, says Caofeidian shows the flaws of the Chinese
economic-growth model, in which the government plans investment and
companies are expected to follow suit, regardless of market conditions.
Chinese local governments are "driven by the blind pursuit of GDP," said
Mr. Chen.
- Bond Investors Turn to Cash. Investors are cashing out of bonds but remain hesitant to plunge into stocks. Investors are cashing out of bonds but remain hesitant to plunge into
stocks, preferring instead to buy money-market mutual funds despite
their low returns. The surprise move highlights persistent investor
anxiety with equities even as stock indexes reach new highs.
CNBC:
- Facebook(FB) earnings beat; shares jump 20%.
Facebook reported second-quarter earnings and revenue that beat Wall
Street forecasts on a growing mobile ad business, sending shares surging
in
late trading. The social media giant reported revenue of $1.81 billion,
up 53 percent from $1.18 billion a year earlier.
- 'Neighbor vs. neighbor' in US cities, Whitney says. Meredith Whitney painted a dire picture in a CNBC interview Wednesday of
cities slashing services and communities battling for mere survival. The financial advisor and analyst said the financial woes facing
bankrupt Detroit will become common around the country as local
governments do whatever they can to escape onerous debt burdens.
- Overseas wealthy slow purchases of US real estate. Foreign purchases of real estate in the U.S. dropped 17 percent in
the 12 months ended in March compared with the same period a year ago,
according to the National Association of Realtors. The high end of the
market felt the brunt of it. Sales of homes priced at $1
million or more to overseas buyers dropped to about 6.5 percent of sales
from 10 percent—the sharpest drop in any price category.
Zero Hedge:
Business Insider:
LA Times:
- Kaiser's rising premiums spark employer backlash. State bill would force HMO to reveal details on rates, spending. Some of Kaiser's biggest customers are complaining that the company is
no longer a bargain and, even worse, standing in the way of controlling
healthcare costs. Critics say the company is so entrenched in the
workplace that it refuses to negotiate rates or to fully explain why its
premiums keep rising.
CBS News:
- CBS News poll finds more Americans than ever want Obamacare repealed. According to the poll, 36 percent of Americans want Congress to expand
or keep the health care law while 39 percent want Congress to repeal it -
the highest percentage seen in CBS News polls. The poll also found a
majority of Americans - 54 percent - disapprove of the health care law,
36 percent of Americans approve of it and 10 percent said they don't
know about it.
Market News International:
- Time for China RRR Cut 'Isn't Here Yet:' MNI Cites PBOC Source.
Any move to cut banks' reserve requirement ratio is way off, citing a
source close to the People's Bank of China. China's foreign exchange
position is likely to deteriorate in coming months as the beginning of
the Federal Reserve's tapering of its quantitative easing program nears,
the report citing people close the the State Administration of Foreign
Exchange as saying.
Reuters:
- Is China's debt nightmare a province called Jiangsu? The nightmare
scenario for China's leaders as they try to wean the country off a diet
of easy credit and breakneck expansion is a local government buckling
under the weight of its own debt. Few provinces fit that bill quite like Jiangsu, home to China's most indebted local government.
Hefty borrowings through banks, investment trusts and the bond market
by Jiangsu's provincial, city and county governments have saddled the
province north of Shanghai with debt far higher than its peers, public
records show. Many of the province's mainstay industries, including
shipbuilding and the manufacturer of solar panels, are drowning
in overcapacity. Profits are dwindling, and the government's tax
growth is braking hard.
That leaves Jiangsu vulnerable as President Xi Jinping and Premier Li
Keqiang slow the country's giant economy to push through reforms aimed
at reducing its reliance on the massive investment that made the country
the factory to the world in favour of more services- and
consumption-led growth. As part of that, Beijing has ordered a clamp
down on
provincial government borrowing and land sales, the mainstay
income for many local administrations. But equally, Beijing
expects local governments to absorb much of the cost of
downsizing many industries, leaving provinces like Jiangsu
caught between a rock and a hard place.
- DOJ probes fracking market over antitrust -Baker Hughes(BHI). The Department of Justice is examining potential antitrust issues in the
market for pressure pumping services, which are used in hydraulic
fracturing, according to Baker Hughes Inc , owner of the third-largest pressure pumping fleet. The market for pressure pumping equipment has been
oversupplied for more than a year because a prolonged slump in natural
gas prices led to a slowdown in gas-directed drilling. But in 2011,
there was an industry-wide push to add capacity in response to a ramp-up
in fracking around the country.
- Japan finmin Aso: Need to take steps for fiscal consolidation. Japanese Finance Minister Taro
Aso said on Thursday that it is important to take steps to pare
down government debt and ensure that the country's public
finances are improving.
"We need to take steady steps toward fiscal consolidation.
We must maintain market confidence in Japan's fiscal
sustainability," Aso said at a seminar in Tokyo. Japan's public debt burden is the worst among major
countries at more than twice the size of its $5 trillion
economy. The government must decide by this autumn whether to raise
its sales tax, which is an important first step toward improving
public finances.
- U.S. IRS pursuing 'stateless income' tax enforcement -official. The U.S. Internal Revenue
Service is pursuing tax enforcement cases against companies over
the issue of "stateless income," a senior agency official said
on Wednesday in a reference to corporate profits that are not
taxed by any country. Erik Corwin, an IRS deputy chief counsel, said there were
international tax disputes with companies, "most involving
consequences of complex restructurings designed either to create
stateless income or to affect a tax efficient repatriation."
- Louisiana agency sues big oil firms for hurting wetlands. A Louisiana agency sued 97
oil companies - including BP Plc, Exxon Mobil Corp
, Chevron Corp and Royal Dutch Shell Plc
- in state court on Wednesday for allegedly damaging hundreds of
miles of sensitive wetlands by cutting through them with
pipelines and transportation canals. Governor Bobby Jindal quickly accused the agency of
overreach and said the filing should be withdrawn.
- Visa(V) raises outlook as card spending accelerates. Visa Inc's quarterly profit beat
estimates as people spent more using its cards, and the largest
credit and debit card network raised its full-year outlook for
revenue and earnings. Visa also authorized a $1.5 billion share buyback program,
sending its shares up about 3 percent in after-hours trading.
China Securities Journal:
- China Won't Ease Deposit Rate Limit in 2013, 2014. China won't
loosen the deposit rate cap through next year, citing Wu Xiaoling, a
former vice governor of the People's Bank of China.
Shanghai Securities News:
- China Steel, Ship Overcapacity Curb Plan Submitted. China's plan
to resolve overcapacity in the steel, cement, aluminum and shipping
industry has been submitted to the State Council and won't take long for
its official release, citing person close to National Development and
Reform Commission. China Petroleum and Chemical Industry Federation will
be holding meetings to study overcapacity in the petrochemical
industry, citing an unidentified researcher from the federation.
The Economic Observer:
- SMEs' Chronic Credit Crunch. With China’s economic slowdown, small- and medium-sized enterprises are
facing huge strains in finding the capital they need to stay afloat.
Banks are aggressively calling in loans and refusing to issue new loans
to these enterprises, leaving them with few places to turn.
Evening Recommendations
Night Trading
- Asian equity indices are -.75% to -.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 141.0 +11.5 basis points.
- Asia Pacific Sovereign CDS Index 104.25 +4.75 basis points.
- NASDAQ 100 futures +.11%.
Morning Preview Links
Earnings of Note
Company/Estimate
Economic Releases
8:30 am EST
- Initial Jobless Claims are estimated to rise to 340K versus 334K the prior week.
- Continuing Claims are estimated to fall to 3025K versus 3114K prior.
- Durable Goods Orders for June are estimated to rise +1.4% versus a +3.6% gain in May.
- Durables Ex Transports for June are estimated to rise +.5% versus a +.7% gain in May.
- Cap Goods Orders Non-defense Ex Air for June are estimated to rise +.6% versus a +1.1% gain in May.
11:00 am EST
- Kansas City Fed Manf. Activity for July is estimated to rise to 0.0 versus -5.0 in June.
Upcoming Splits
Other Potential Market Movers
- The UK gdp report, 7Y T-Note auction and the weekly Bloomberg Consumer Comfort Index could also impact trading today.
BOTTOM LINE: Asian indices are lower, weighed down by industrial and commodity
shares in the region. I expect US stocks to open modestly higher
and to weaken into the afternoon, finishing mixed. The Portfolio is
50% net long heading into the day.
Broad Equity Market Tone:
- Advance/Decline Line: Lower
- Sector Performance: Most Sectors Declining
- Volume: Slightly Below Average
- Market Leading Stocks: Underperforming
Equity Investor Angst:
- Volatility(VIX) 13.45 +5.45%
- Euro/Yen Carry Return Index 137.94 +.58%
- Emerging Markets Currency Volatility(VXY) 8.95 +2.05%
- S&P 500 Implied Correlation 53.30 +4.51%
- ISE Sentiment Index 88.0 +10.0%
- Total Put/Call .97 +1.04%
Credit Investor Angst:
- North American Investment Grade CDS Index 76.66 +2.20%
- European Financial Sector CDS Index 143.22 -2.40%
- Western Europe Sovereign Debt CDS Index 91.0 -.54%
- Emerging Market CDS Index 293.17 +5.2%
- 2-Year Swap Spread 15.75 -1.75 bps
- 3-Month EUR/USD Cross-Currency Basis Swap -9.25 +.5 bp
Economic Gauges:
- 3-Month T-Bill Yield .02% unch.
- China Import Iron Ore Spot $132.10/Metric Tonne +.15%
- Citi US Economic Surprise Index -7.50 +1.4 points
- Citi Emerging Markets Economic Surprise Index -30.80 -.9 point
- 10-Year TIPS Spread 2.15 -3 bps
Overseas Futures:
- Nikkei Futures: Indicating -16 open in Japan
- DAX Futures: Indicating -23 open in Germany
Portfolio:
- Slightly Higher: On gains in my biotech sector longs, index hedges and emerging markets shorts
- Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my (EEM) short, then covered some of them
- Market Exposure: 50% Net Long
Bloomberg:
- Rolls-Royce China Sales Flatline Amid Xi Austerity Drive.
Rolls-Royce, the ultra-luxury car
brand owned by Bayerische Motoren Werke AG (BMW), expects sales growth
to slow in China this year as an austerity push by President Xi Jinping
damps luxury demand. Sales volumes in the company’s second-largest market will be little changed from 2012, Paul Harris, Asia-Pacific regional director for the brand, said in Sydney yesterday. By comparison, Rolls-Royce sales rose 16 percent to 998 vehicles last year, according to estimates at research firm LMC Automotive. Slowing
growth in China for the maker of the $380,000 Phantom mirrors the slide
in demand this year for sorghum liquor, hand-made tea and Bordeaux
wines, as economic expansion cools and the country’s new administration
acts to curb spending by government officials. More high-end goods such
as luxury cars and yachts may be taxed as part of reform plans this
year, the China Daily reported in May, citing an official at the top
economic planning agency.
- Brazil Unemployment Rate Jumps More Than Expected to 6%.
Brazil’s unemployment rate rose in June to the highest since April
2012, signaling a weakening labor market after five quarters of
below-forecast economic growth in Latin America’s biggest economy. The jobless rate jumped to 6 percent last month from 5.8 percent in May, according to a report today on the National
Statistics agency’s website. That was higher than expected by
all but 1 of 27 economists surveyed by Bloomberg, whose median
forecast was for a 5.8 percent rate. The rate also rose from 5.9
percent the year before, the first rise in June since 2009.
- Brazil Rues Rousseff Growth at 24-Year Low Amid Lula Pleas. The return to power of Luiz Inacio Lula da Silva, the mentor and predecessor of Brazil President
Dilma Rousseff, is gaining traction among her supporters as her
party faces a 2014 election having delivered the slowest average
growth in 24 years. Rousseff’s poll approval ratings have plummeted to the
lowest of her term, and since mid-June she was showered with
boos at a sold-out soccer game and by dozens of mayors at a
public event. More than 1 million Brazilians took to the streets
as the cost of living soars and economic growth forecasts drop.
Protests escalated from anger over bus fare increases to
discontent over corruption, the quality of public services and
government spending priorities.
- Spanish Pension Raids Spell Bad News for Bond Sales: Euro Credit. Spain’s
Treasury may find one of its best customers less eager to buy its bonds
as budget woes lead Prime Minister Mariano Rajoy to raid a government
piggy-bank for a second year. Created in 2000 to guarantee pension
payments in times of hardship, the 59.3 billion-euro ($78 billion) Fondo
de Reserva was tapped for the first time in December for 7 billion
euros to fund Christmas bonuses and a monthly increase for retirees.
Further withdrawals will have taken an additional 4.5 billion euros by
the end of this month, helping to pay for pensioners’ summer bonuses and
tax refunds. “The fund isn’t in a position to accumulate assets
anymore, it may even have to sell,” said Jose Antonio Herce, a partner
at consultancy firm Analistas Financieros Internacionales in Madrid.
“There are more and more pensions to
pay and less and less money coming into the Social Security, the
fund will melt quickly now that we’ve started taking money out
of it.”
- EU Attacks MasterCard’s(MA) ‘Mad Campaign’ to Derail Card-Fee Curbs. MasterCard
Inc. (MA:US) waged a “mad campaign” to derail caps on card fees, the
European Union’s financial services commissioner said today as he
unveiled plans to slash charges by 6 billion euros ($8 billion) a year. Michel Barnier said MasterCard used misleading information
in its lobbying against proposals to cap interchange fees at 0.2
percent for debit card payments and 0.3 percent for credit
cards. The limits target card systems also operated by Visa
Europe Ltd. where banks charge each other interchange fees, or
swipe fees, for handling payments.
- Europe Stocks Rise on Earnings, Euro-Area Manufacturing.
European stocks rose to an almost eight-week high as data signaled
Germany is leading a revival in euro-area manufacturing and companies
posted results that exceeded estimates.Volvo AB (VOLVB) advanced the
most in 10 months after the world’s second-largest truckmaker reported
second-quarter earnings that beat forecasts. EasyJet climbed 3.7 percent
after saying quarterly sales rose 11 percent on higher capacity
utilization and revenue per seat. Syngenta (SYNN) AG fell 4 percent
after posting
first-half profit and revenue that trailed forecasts. The Stoxx Europe 600 Index added 0.6 percent to 301.1 in
London, the highest close since May 30.
- Treasuries Extend Decline on Weaker-Than-Average 5-Year Auction. Treasuries extended a two-day
decline after the U.S. sale of $35 billion in five-year notes
was met with weaker than-average demand amid speculation the Federal Reserve will reduce its bond purchases this year.
The debt’s bid-to-cover ratio, which gauges demand by comparing total
bids with the amount of securities offered, was 2.46, down from an
average of 2.8 for the past 10 sales. The
sale follows lower than demand at yesterday’s $35 billion
auction of two-year notes. The U.S. will sell $39 billion in
seven-year notes tomorrow.
- Americans Gambling on Rates With Most ARMs Since 2008. In the second year of the U.S. housing recovery, the loans that helped
trigger the housing bust are making a comeback. Applications in late
June rose to the highest level since 2008 after the Federal Reserve sent
fixed rates surging by signaling it may curtail bond buying credited
with pushing borrowing costs to the cheapest on record.
- Caterpillar(CAT) Cuts Forecast as Mining Equipment Demand Drops.
Caterpillar Inc. (CAT) cut its earnings forecast and posted profit that
trailed analysts’ estimates for a third straight quarter as
mining-equipment sales declined on slower commodity demand from emerging
markets. Earnings in 2013 will be about $6.50 a share on sales of $56 billion to $58 billion, the Peoria, Illinois-based company
said today in a statement. That’s lower than analysts’ estimates
and down from the company’s April projection of about $7 a share
on revenue of $57 billion to $61 billion.
- WTI Falls on U.S. Crude Output Gain, China Manufacturing. WTI
oil for September delivery slipped $1.89, or 1.8 percent, to $105.34 a
barrel at 11:57 a.m. on the New York Mercantile Exchange. The contract traded at $106.40 before the release of the EIA report at 10:30 a.m. in Washington. The
volume of all futures traded was 18 percent less than the 100-day average for the time of day.
Wall Street Journal:
- New York Probes Bloomberg Reporters' Access to Information. New York Attorney General Eric Schneiderman's office is looking into how much access Bloomberg LP news reporters may
have had to information about the media and technology company's
customers, said people familiar with the inquiries. Officials in the New York Attorney General's investor protection unit
in recent weeks have queried Bloomberg about reporters' knowledge of
terminal subscribers' activities, said the people. The Attorney
General's office has not opened a formal investigation into the
Bloomberg practices, said one of the people familiar with the probe.
MarketWatch:
CNBC:
Zero Hedge:
Business Insider:
New York Times:
- Asian Economies Encounter Stiff Winds. “The music has stopped playing,” said Frederic Neumann, a co-head of
Asian economics at HSBC, which on July 9 slashed its growth forecasts
for Asia, outside of Japan, to 6.1 percent for this year and 6.5 percent
next year. The bank had projected 7.2 percent growth for both years.
CNN:
- Borrowers in Obama housing program re-defaulting, watchdog says.
Borrowers who received help through the government's main foreclosure
prevention program are re-defaulting on their mortgages at alarming
rates, a federal watchdog said in a report released Wednesday. Nearly
1.2 million mortgage modifications have been completed since the Home
Affordable Modification Program (HAMP) was first launched four years
ago. Yet more than 306,000 borrowers have re-defaulted on their loans
and more than 88,000 are at risk of following suit, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) found in its quarterly report to Congress.
Value Walk:
Real Clear Politics:
Reuters:
- EU finance arm curbs loans to coal-fired power plants. The European Investment Bank, the EU's finance arm, said it would stop lending to most coal-fired power stations to
help the 28-nation bloc reduce pollution and meet climate targets, a
move that may put pressure on other lenders.
- Credit market suggests European bank shares vulnerable on earnings. European
bank shares driven
higher by strong earnings from U.S. lenders may be set for a fall as
their own results season begins, with credit markets reflecting wariness
about risks glossed over by equity investors. Forecast-beating earnings from Bank of America and Citigroup lifted shares in European banks last week.
However, the market for insurance against banks defaulting on their
loans shows more caution over the European sector, which is still
struggling with bad debts in the euro zone periphery and regulatory
costs. Thomson Reuters StarMine data shows the second-quarter earnings season is set to disappoint, relative to that in the
United States. Early reports have not seen much of a bounce in
the shares of those European banks that beat expectations. "The credit is a lot more cautious than equity... and
European financials are a major culprit from the equity
standpoint: they're running ahead of the underlying risks,"
Chris Parkinson, head of research at Christopher Street Capital,
part of GFI Group, said.
AP:
- LG's profit falls on weak TV demand, handset costs. LG Electronics' latest quarterly report underlined challenges facing
global electronics makers as weak TV demand and stiffer competition in
smartphones undermine profit. The results Wednesday showed an 8
percent decline in April-June net profit to 155.5 billion won ($140
million) even as LG's revenue rose 10 percent from a year earlier to
15.2 trillion won ($13.6 billion). Operating profit fell 9 percent from a
year earlier to 479 billion won.
Financial Times:
- Market turbulence revives fears over ETF structural issues.
Falling
equity markets have resulted in the highest level of failed trades in
the $2tn exchange-traded fund (ETF) market for nearly two years –
reviving a debate about the structure and liquidity of the popular
investment vehicles in times of volatility. The total value of settlement failures for 30 of the biggest
ETFs surged to $3.96bn on June 26, according to an analysis of data
from the US securities regulator, carried out by the Basis Point Group.
Echoing fears that
European policymakers remain in a state of cognitive dissonance –
recognizing the need for root-and-branch overhaul of peripheral banks,
but backtracking on joint liability plans – Christopher Flowers, the
legendary FIG investor who now runs the £2.3 billion ($3.5 billion)
private equity group JC Flowers, sounded the alarm over the negative
sovereign-bank feedback loop.
In a shot across the bows of market bulls, who cite the return of
capital flows to weaker eurozone states, Flowers issued a stark warning:
"There is a scenario where we have a Lehman-type event: we wake up some
Thursday and a big country is in trouble.
"And the ECB will have to decide to support banks x, y, z. And then the
ECB will, in fact, decide to own bank x, y, z.
While we want you to share, we ask you use the functions on-site rather than copy/paste. See T's & C's for details. http://www.euromoney.com/Article/3211790/CurrentIssue/88924/Restructuring-Flowers-slams-Europe-over-inaction.html?copyrightInfo=true
Repubblica:
- IMF Italy Chief Says Credit Crunch EU's Key Problem. EU banking
union project needs to go forward quickly, Andrea Montanino, executive
director of the IMF in Italy said in an interview. Banks' loans to
companies and families need to be looked at and if needed banks should
boost capital. The ECB should cut rates further to help recovery.
Xinhua:
- China
to Crack Down on Arbitrary School Charges. Ministry of Education bans
local govts, institutions, schools to charge for school admissions, bars
illegal recruitment, citing guideline jointly released by finance,
education ministries, NDRC, audit office, broadcasting &
publication regulator.
- China Caps Number of Singing-Competition TV Shows. State General
Administration of Press, Publication, Radio, Film & TV tells
satellite broadcasters to stop investing in any new singing competition
shows, citing news release. Regulator seeks to prevent homogeneous TV
schedules. Broadcasters must be "thrifty" with program production, avoid
ostentation in line with govt's frugality campaign.
Style Underperformer:
Sector Underperformers:
- 1) Gold & Silver -5.11% 2) Coal -4.54% 3) Homebuilders -3.34%
Stocks Falling on Unusual Volume:
- SZYM, FCF, FBP, CVE, PBR, VIV, EVC, GTN, CKSW, SEAC, JBLU, SRPT, PNRA, BRCM, RUSHA, SLRC, OC, HTS, HCI, ZOLT, CEVA, USNA, ATMI, GWAY, WLT, IRBT, NSC, STX, MSI, ROL, MGI, LAD, GNTX, MTH, NEOG, NSR, CMO, TA, JOY, RLGY, MFRM, TROW, RPRX, ATI and MSI
Stocks With Unusual Put Option Activity:
- 1) EMC 2) BRCM 3) PNRA 4) NUE 5) WDC
Stocks With Most Negative News Mentions:
- 1) PCAR 2) VCLK 3) ATI 4) CP 5) MUR
Charts:
Style Outperformer:
Sector Outperformers:
- Airlines +1.57% 2) Software +.89% 3) Defense +.75%
Stocks Rising on Unusual Volume:
- VMW, AFOP, EA, UIS, AAPL, PWRD, EZCH, GDP, IRE, FMER, MFB, USU, EVR, HBI, ILMN, LL, ARW, EMC and RKT
Stocks With Unusual Call Option Activity:
- 1) QLIK 2) SRPT 3) VMW 4) BRCM 5) DG
Stocks With Most Positive News Mentions:
- 1) LMT 2) ALTR 3) JNPR 4) SVU 5) LLY
Charts:
