Bloomberg:
- Slovenia Plans Tax Increases as Debt Sale Eases Concern Over Aid. Slovenia plans to increase taxes to
make up for the swelling budget shortfall as the country works
to recapitalize its banks after its first international debt
sale this year. The government will increase the sales tax and introduce a
“crisis” tax on wages, Prime Minister Alenka Bratusek told
reporters yesterday in Brdo, Slovenia. The country’s largest
banks need 900 million euros ($1.2 billion) by the end of July,
according to the government. That capital boost will widen the
budget deficit to 7.8 percent this year from 4 percent at the
end of 2012, Bratusek said.
- Enel Profit Falls as Europe’s Economic Slump Cuts Power Demand.
Enel SpA (ENEL), Italy’s largest utility, said first-quarter profit
dropped 26 percent as Europe’s economic slump cut electricity sales. Net
income slid to 852 million euros ($1.12 billion) from 1.15 billion
euros a year earlier after 125 million euros of
writedowns, according to a stock-exchange statement. The Rome-
based company said revenue fell 1.5 percent to 21 billion euros. Economic stagnation in the company’s main markets in Italy
and Spain is hurting earnings as clients reduce energy
consumption. Enel said electricity sales in the quarter fell 7.1
percent to 76.7 terrawatt hours, while gas sales remained flat
at 3.4 billion cubic meters.
- Europe Stocks Rise as SocGen, Commerzbank Results Beat.
European stocks climbed, extending a near five-year high for the
region’s benchmark gauge, as financial companies from HSBC Holdings Plc
(HSBA) to Allianz SE reported results that topped analysts’ estimates.
- China Said to Tighten Approvals for Local Government Bond Sales. China has ordered greater scrutiny of
bond sales by local government finance vehicles with higher
levels of debt, three people with knowledge of the matter said. The
National Development and Reform Commission, which approves bond sales by
companies that local governments set up to finance projects, will more
strictly review applications for
debt with credit ratings below AA+ sold by issuers with debt-to-
asset ratios exceeding 65 percent, said the people, who asked
not to be identified as they weren’t authorized to speak
publicly about the order.
- North Korea Threatens Retaliation as South’s Leader Visits U.S. North
Korea threatened “immediate counteractions” if shells fired as part of
military drills hit its waters, as the U.S. an South Korea conducted
annual anti- submarine exercises in the region. U.S. and South Korean
forces are trying “to push the
present state of war to an actual war,” the official Korean
Central News Agency said today. The two allies on April 30
concluded the annual two-month Foal Eagle exercises, which
rehearse ground-based operations.
- Pentagon Report on Cyber Attack ’Irresponsible,’ Xinhua Says. A Pentagon report that accuses China
of a cyber espionage campaign is irresponsible and harmful to
the mutual trust, the official Xinhua News Agency said, citing a
military researcher. The Pentagon report said the Chinese military has targeted
U.S. government computers with intrusions that seek sensitive
data. It was irresponsible for the Pentagon to make such an
assertion as the Chinese government and armed forces have never
sanctioned hacking activities, Xinhua cited Wang Xinjun as
saying. Wang is a researcher at the Academy of Military Sciences
of the Chinese People’s Liberation Army. “It is an allegation based on presupposition,” Wang said,
according to Xinhua. “The groundless accusations reflect the
U.S. distrust of China.”
- Copper Falls From Three-Week High on Chinese Concerns. Copper
futures fell from a three-week high on concern that trade data this
week in China, the world’s top user of industrial metals, will add to
evidence that the
country’s economy is slowing.
- Gold Futures Decline as Haven Demand Ebbs.
Gold futures for June delivery fell 1.7 percent to $1,442.60 an ounce
at 10:17 a.m. on the Comex in New York. Bullion dropped 7.7 percent last
month, including the biggest two-day drop in 33 years, as some
investors lost faith in the precious metal as a
store of value.
- Einhorn Increases Apple Bet, Praises Plan to Return Capital. Hedge
fund manager David Einhorn said
he increased his bet on Apple Inc. (AAPL) and that the iPhone maker took
a “major step forward” by issuing debt (AAPL) so it could return cash
to investors. Einhorn anticipates more innovations from the Cupertino,
California-based technology company, he said on a conference call
today held by his Greenlight Capital Re Ltd. (GLRE) reinsurer. “Our
thesis remains that Apple has a terrific operating
platform,” he said. “Its loyal, sticky and growing customer
base will make repeated purchases of a growing portfolio of
Apple products.”
- Emerson(EMR) Trims 2013 Forecast as Sluggish Economy Curbs Demand. Emerson Electric
Co. (EMR), a maker of parts for refrigerators and air conditioners, cut
its 2013 earnings forecast after a sluggish worldwide economy curbed
demand in the first quarter. “Economies around the world are struggling for momentum,”
Chief Executive Officer David Farr said in the statement.
“Demand slowed in the second half of the quarter as overall
global business confidence deteriorated. We do not see a
catalyst to economic growth over the next six to nine months.”
Wall Street Journal:
- NY Fed Warns of Continued Risk to Financial System. The Federal Reserve Bank of New York said in a paper
released Tuesday that a key short-term funding market remains vulnerable to
destabilizing runs that can threaten the broader health of the financial
system. “Limited tools are available to mitigate the risk of pre-default fire sales,”
the paper’s authors warned. What’s more, “no established tools currently exist
to mitigate the risk of post-default sales.”
Fox News:
- Islamist militia linked to Sept. 11 Benghazi attack operates freely in city. The Ansar al Sharia Brigade, the Islamist terror group linked to the
Sept. 11, 2012, attack on the U.S. diplomatic compound in Benghazi,
continues to operate freely in that Libyan city, according to U.S.
military officials. The group remains active in the Mediterranean
port city, operating
patrols and checkpoints, and earlier this year reached an agreement with
other Islamist groups allowing it to operate openly, said military
officials familiar with intelligence reports from North Africa. The
group "continues to spread its ideology in the Benghazi area,
particularly targeting youth," said one official, who noted that the
lack of central government security was the key reason the militia has
not been suppressed.
MarketWatch:
Zero Hedge:
Business Insider:
The Truth About Cars:
- Sub-Prime: Fitch Sends Shot Across Bow Of Auto Lenders.
Seeing delinquencies and credit losses going up while used car sales
and lending standards deteriorate, rating agency Fitch warned today that
“U.S. auto lenders will likely report further weakening in asset
quality metrics this year.” Translated into English, lenders will become increasingly dependent on sub-prime loans and exposed to their perils.
Fitch saw average credit losses go up 16 basis points in the first
quarter, delinquencies rose 67 basis points. Double-digit increases in
auto leasing volumes may boost auto sales, but Fitch views this “with
caution, particularly since used car values will likely return to more
typical levels after recent rises.” Translated into English: Their residual value assumptions are based on fantasy, and there will be a rude awakening.
Reuters:
- Vale CEO sees trouble in Brazil's currency, fast-rising wages. Brazil
has enjoyed years of prosperity but its competitiveness is now hindered
by fast wage growth and a currency that looks "out of place," said
Murilo Ferreira, chief executive of giant mining company Vale SA , at an event on Tuesday. Those
two factors are the "cost, although very low," of the social and
economic progress that is bolstering Latin America's largest economy, Ferreira said.
- Long-term investors bet on commodity currencies falling. The Australian,
Canadian and New Zealand dollars may be set for a decline, dragged down
by a slowdown in China and a sharp fall in commodity prices.
The Week:
Style Outperformer:
Sector Outperformers:
- 1) Oil Tankers +2.92% 2) Steel +.89% 3) Networking +.79%
Stocks Rising on Unusual Volume:
- EOG, ROSE, DTV, IDT, SKM, CHTR, MKTG, HIMX, DWRE, MXWL, ININ, MELI, STE, SNTS, FOSL, NSM, PODD, EOG, VNTV, ALNY, ANF, SGY and DFT
Stocks With Unusual Call Option Activity:
- 1) DG 2) NRG 3) HOLX 4) NSM 5) FOSL
Stocks With Most Positive News Mentions:
- 1) DTV 2) FOSL 3) EOG 4) APC 5) TRN
Charts:
Evening Headlines
Bloomberg:
- Pentagon Accuses China of Cyberspying on U.S. Government.
The Chinese military has targeted U.S. government computers with
intrusions that seek sensitive data, according to a report in which the
Pentagon for the first time directly accuses China of a cyber espionage
campaign. The incursions “appear to be attributable directly to the
Chinese government and military,” the Pentagon said yesterday in a report to U.S. lawmakers on security issues involving China. The information
targeted could be used to bolster China’s defense and technology
industries and to support military planning, the Defense Department
report said. “China is using its computer network exploitation capability to support
intelligence collection against the U.S. diplomatic, economic, and
defense industrial base sectors that support U.S. national defense
programs,” the report said.
- China Quake Zone Absent Men Show Labor Supply Curbing Growth.
When Zhang Youneng’s house was flattened by an earthquake last month,
the Chinese factory worker had no choice but to travel 2,000 kilometers
(1,240 miles) back home to help his wife deal with the aftermath. Like
rural communities across China, Zhang’s village in southwestern Sichuan
province is home these days mainly to the old, the weak and the young.
Able-bodied men have left to seek work in the cities, and some of the
women have gone, too. The dearth of workers in the area struck by a 6.6-magnitude temblor
illustrates how China is approaching the limits of its supply of cheap
labor.
Wall Street Journal:
- Hezbollah Steps Up in Syria as Israel Tries to Ease Tension. Hezbollah fighters joined Syrian government forces in the siege of a
rebel-held town inside the war-torn country, local residents said,
deepening the Iran-backed group's involvement in Syria's civil war and
raising alarm among U.S. officials.
- Virus's Toll in Saudi Arabia Raises Fears of Faster Spread. Saudi Arabia Reports 7 Deaths in Outbreak of SARS-Like Disease. Saudi Arabia's announcements in the past five days of seven new deaths from a
SARS-like virus have heightened fears that the Mideast outbreak is entering a
more-aggressive phase.
Fox News:
- Cops arrest 3 people after 3 Ohio women missing for a decade found alive. Three people are in custody after three women who vanished about a
decade ago in separate cases were found alive Monday in a residential
area just south of downtown Cleveland, within a few miles of where they
disappeared. Police said a 52-year-old man was among those arrested, but released
no names and gave no details about the others arrested or what charges
they might face. They described one of the suspects as a Hispanic male
but said they planned to provide more information at a news conference
Tuesday. Cheering crowds gathered Monday night on the street near the home
where police said Amanda Berry, Gina DeJesus and Michelle Knight were
found earlier in the day. A 6-year-old also was found in the home,
according to authorities.
- Democrat Menendez introduces bill in Senate to arm Syria opposition. A top Senate Democrat nudged the Obama administration to provide
weapons to the Syrian opposition, introducing a bill Monday that would
explicitly allow the U.S. to provide arms, military training and
non-lethal aid to the rebels. Sen. Bob Menendez of New Jersey, chairman of the Senate Foreign
Relations Committee, introduced the legislation on the heels of U.S.
intelligence claims that chemical weapons likely were used in the
country.
"The Assad regime has crossed a red line that forces us to consider
all options," Menendez said in a written statement. "The greatest
humanitarian crisis in the world is unfolding in and around Syria, and
the U.S. must play a role in tipping the scales toward opposition groups
and working to build a free Syria."
CNBC:
- Anonymous to US: 'We Will Wipe You Off the Cyber Map'.
Anonymous claims it will launch cyberattacks against banking and
government websites on Tuesday. The group is calling the planned attacks
OperationUSA or OpUSA and said in a message on pastebin.com that the
they are in response to social and political injustices. "Anonymous
will make sure that's this May 7 will be a day to remember. On that day
anonymous will start phase one of operation USA. America you have
committed multiple war crimes in Iraq, Afghanistan, Pakistan, and
recently you have committed war crimes in your own country," the hackers
said last month in a statement. "We will now wipe you off the cybermap.
Do not take this as a warning."
Zero Hedge:
Business Insider:
Washington Post:
- Special ops halted from responding to Benghazi attacks, U.S. diplomat says. As the weakly protected U.S. diplomatic compound in eastern Libya
came under attack the night of Sept. 11, 2012, the deputy head of the
embassy in Tripoli 600 miles away sought in vain to get the Pentagon to
scramble fighter jets over Benghazi in a show of force that he said
might have averted a second attack on a nearby CIA complex. Hours
later, according to excerpts of the account by the U.S. diplomat,
Gregory Hicks, American officials in the Libyan capital sought
permission to deploy four U.S. Special Operations troops to Benghazi
aboard a Libyan military
aircraft early the next morning. The troops were told to stand down.
New York Times:
- G.O.P. Is Readying a New Offensive Over Health Law.
As the administration struggles to put in place the final, complex
piece of President Obama’s signature health care law — an endeavor on a
scale not seen since Medicare’s creation nearly a half-century ago —
Democrats are worried about major
snags in the face of Republican plans to use the law as a weapon in next
year’s midterm elections.
LA Times:
- Google's(GOOG) YouTube poised to enter subscription business for some content. The next time you click on a YouTube video, you might be asked to pony up some cash before it plays. The Google-owned online video site is getting ready to
enter the subscription business, according to people with knowledge of
the situation. The Internet's dominant source for online videos will allow content
creators to charge a monthly fee to bring a broader range of
entertainment to the platform, these people said.
Reuters:
- China reports four more bird flu deaths, toll rises to 31. Four more people
in China have died from a new strain of bird flu, bringing to 31 the
number of deaths from the mysterious H7N9 virus, with the number of
infections rising by two to 129, according to Chinese health
authorities.
Among the deaths, two occurred
in the eastern province of Jiangsu; one was from eastern Zhejiang; while
another was from central Anhui, based on a Reuters analysis of the data
provided by Chinese health authorities on Monday.
Financial Times:
- Pension fund sues banks over CDS ‘dominance’. A
pension fund for Ohio-based sheet metal workers is challenging big
banks’ “collective dominance” of the $27tn market for so-called credit
default swaps. The class action antitrust suit filed by the pension fund accuses
banks including Citigroup, Deutsche Bank and JPMorgan of engaging in
“anti-competitive conduct” when it comes to CDS contracts. The fund, the
Sheet Metal Workers Local No. 33 Cleveland
District Pension Plan, said it had entered into CDS deals with
Citigroup.
Telegraph:
21st Century Business Herald:
- April
new loans were 245b yuan at Industrial & Commercial Bank of China
Ltd., China Construction Bank Corp., Bank of China Ltd. and Agricultural Bank of China Ltd., citing people familiar with the matter. China end-March outstanding non-performing loans in commercial banks rose 20.7% on year to 524.3b yuan.
JTA:
- With Netanyahu in Shanghai, China rips Syrian airstrikes. As Israeli Prime Minister Benjamin Netanyahu began a five-day visit
to China, the Chinese Foreign Ministry criticized the military strikes
on Syria without singling out Israel. "We oppose the use of military force and believe any country's
sovereignty should be respected," Chinese Foreign Ministry spokeswoman
Hua Chunying said Monday. She did not mention Israel by name. "China also calls on all relevant parties to begin from the basis of
protecting regional peace and stability, maintain restraint and avoid
taking any actions that would escalate tensions and jointly safeguard
regional peace and stability."
Evening Recommendations
Night Trading
- Asian equity indices are -.25% to +.75% on average.
- Asia Ex-Japan Investment Grade CDS Index 101.0 -1.5 basis points.
- Asia Pacific Sovereign CDS Index 82.25 -1.75 basis points.
- NASDAQ 100 futures -.03%.
Morning Preview Links
Earnings of Note
Company/Estimate
Economic Releases
10:00 am EST
- JOLTs Job Opening for March are estimated to fall to 3770 versus 3925 in February.
3:00 pm EST
- Consumer Credit for March is estimated to fall to $15.5B verss $18.139B in February.
Upcoming Splits
Other Potential Market Movers
- The Eurozone Industrial Production data, weekly retail sales reports, 3Y T-Note auction, IBD/TIPP Economic Optimism Index for May, Jefferies Tech/Media/Telecom Conference, Robert W. Baird Growth Stock Conference, BofA Merrill Smid-cap Conference, (LXK) analyst meeting, (DNKN) analyst day, (KBH) analyst conference and the (MUR) analyst meeting could also impact trading today.
BOTTOM LINE: Asian indices are mostly higher, boosted by automaker and financial shares in the region. I expect US stocks to open modestly higher and weaken into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.
Broad Market Tone:
- Advance/Decline Line: Modestly Higher
- Sector Performance: Mixed
- Market Leading Stocks: Outperforming
Equity Investor Angst:
- ISE Sentiment Index 80.0 -24.5%
- Total Put/Call .77 -13.48%
Credit Investor Angst:
- North American Investment Grade CDS Index 70.50 -1.52%
- European Financial Sector CDS Index 131.04 -.42%
- Western Europe Sovereign Debt CDS Index 92.26 +1.82%
- Emerging Market CDS Index 230.15 -.64%
- 2-Year Swap Spread 14.5 +.5 bp
- TED Spread 24.50 +1.55 bps
- 3-Month EUR/USD Cross-Currency Basis Swap -16.50 unch.
Economic Gauges:
- 3-Month T-Bill Yield .03% -2 bps
- China Import Iron Ore Spot $128.10/Metric Tonne unch.
- Citi US Economic Surprise Index -3.1 -3.4 points
- 10-Year TIPS Spread 2.31 +1 bp
Overseas Futures:
- Nikkei Futures: Indicating +545 open in Japan
- DAX Futures: Indicating +7 open in Germany
Portfolio:
- Slightly Higher: On gains in my retail/tech sector longs
- Market Exposure: 50% Net Long
Bloomberg:
- Euro-Area Services Output Shrinks as Retail Sales Drop: Economy. Euro-area services and manufacturing
output shrank for a 15th straight month in April and retail
sales fell in March as the 17-nation economy struggled to emerge
from recession. A composite index based on a survey of purchasing managers
in the manufacturing and services industries increased to 46.9
last month from 46.5 in March, London-based Markit Economics
said in a report today. While above an initial estimate of 46.5
published on April 23, it was still below 50, indicating
contraction. Retail sales declined for a second month in March,
another report showed. The euro-area economy will shrink more than previously
estimated in 2013 as part of a two-year slump that has pushed
unemployment to a record high, the European Commission said on
May 3. “The financial markets appear to have survived (EUGNEMUQ) the government debt crisis, but the leading economic indicators have
recently declined,” said Joerg Kraemer, chief economist at
Commerzbank AG in Frankfurt. There is “a significant risk that,
contrary to analysts’ expectations, the economy will not pick up
in the spring,” he said.
- Draghi Says ECB Ready to Cut Interest Rates Again If Needed. European Central Bank President Mario Draghi said policy makers are ready to cut interest rates again
if needed after reducing them to a record low last week. “We will be looking at all the data that arrives from the
euro-area economy in the coming weeks and if necessary, we are ready to act again,” Draghi said in a speech in Rome today.
“Monetary policy will remain accommodative.”
- Euro Declines After Draghi Says ECB Prepared to Act.
The euro fell against the majority of its 16 most-traded peers as
European Central Bank President Mario Draghi said policy makers are
ready to cut interest rates again if needed after reducing them to a
record low last week. The 17-nation currency fell 0.3 percent to $1.3077
as of 2:37 p.m. New York time.
- Copper Futures Drop on Bets Demand Will Ebb on European Woes. Copper futures fell for the first time
in three sessions on concern that demand will slump in Europe as
global supplies increase. Euro-area services and manufacturing output shrank in April
for a 15th straight month, a report from London-based Markit
showed today. The European Commission said on May 3 that the
region’s economy will contract more than estimated. Copper
stockpiles monitored by the London Metal Exchange are close to
the highest since 2003. “All the data we’re seeing suggests no rebound in Europe,
as well as slowing in China and sub-par growth in the U.S.,”
Frank Lesh, a trader at FuturePath Trading in Chicago, said in a
telephone interview. “We’re still not seeing any inordinate
demand for copper, and supplies are adequate.”
- Rio(RIO) Said to Pursue $5 Billion Iron-Ore Expansion as Glut Looms. Rio Tinto Group (RIO), the world’s second-
biggest miner, will probably pursue a $5 billion expansion of
its iron-ore output in Australia, Chief Executive Office Sam Walsh said, according to two people present at a meeting with
investors and analysts. The board is expected to approve in the fourth quarter an
increase in annual production to 360 million metric tons from
290 million tons unless there are significant changes to the
global demand-supply situation, Walsh told the gathering, the
people said.
- Bain, Golden Gate Agree to Buy BMC(BMC) for $6.9 Billion.
Bain Capital LLC and Golden Gate
Capital agreed to acquire BMC Software Inc., a struggling technology
provider that failed to find a buyer last year, for $6.9 billion in the
third-largest private-equity deal of 2013.
- MBIA(MBI) Surges After Report Insurer Settled with Bank of America. MBIA Inc. surged as much as 57 percent
after Dow Jones Newswires reported Bank of America Corp. will
pay $1.6 billion of cash as part of a settlement with the bond
insurer of mortgage-bond litigation. MBIA was up 43 percent to $14.10 at 12:25 p.m. in New York
after earlier climbing to as high as $15.45. The intraday jump
is the most ever. The settlement includes a $500 million line of credit, Dow
Jones reported today, citing people familiar with the matter.
- Fed Loan Officer Survey Says Business Loans Lead Credit Thaw. U.S. banks eased standards and terms
on loans to businesses as commercial lending led a credit thaw,
according to a Federal Reserve survey.
Wall Street Journal:
Fox News:
- FBI arrests Minnesota man believed to be plotting terror attack. The
FBI has taken into custody a Minnesota man who was believed to be
plotting a terrorist attack. Buford Rogers, 24, of Montevideo, was
arrested Friday after
authorities searched his home and found guns and explosive devices,
according to an FBI news release. The Associated Press reports Molotov
cocktails, suspected pipe bombs and a Romanian AKM assault rifle were
among the weapons found. An affidavit said Rogers admitted firing the
weapon at a gun range in Granite Falls.
Zero Hedge:
Business Insider:
New York Times:
- New York to Sue Wells Fargo(WFC) and Bank of America(BAC) Over Settlement Violations.
New York’s top prosecutor plans to sue Bank of America and Wells Fargo
over claims that they violated terms of a $26 billion mortgage
settlement, his office said on Monday.
Eric T. Schneiderman,
New York’s attorney general, paved the way for a lawsuit against
both
banks over what he said was “repeatedly violating” the terms of the
National Mortgage Settlement, a sweeping pact brokered last year between
five of the nation’s biggest banks and 49 state attorneys general over
foreclosure abuses.
- Slovenia Falls From Economic Grace, Struggling to Avert a Bailout. As fears grow that Slovenia could follow Cyprus and become the sixth
euro zone country to seek a bailout, his rise and fall have come to
symbolize the way easy and cheap credit, combined with Balkan-style
crony capitalism and corporate mismanagement, fueled a banking crisis
that has unhinged a country previously praised as a regional model of
peaceful prosperity.
Washington Times:
- Senate Democrats fleeing ‘Obamacare’.
The exodus started quietly at first. Sen. Max Baucus said last month he
fears the president’s signature health care reform law is quickly
turning into a “train wreck.” How bad is it? The Montana Democrat, head
of the Senate Finance Committee and an author of the law, has decided
not to seek re-election. Why? Because Obamacare isn’t yet up and
running. The true effects won’t be felt until 2014 and beyond. So Mr.
Baucus will disappear into the night a hero, long before the nightmare
comes.
Reuters:
- Italy's Letta sees anti-EU surge if no answers to crisis. Europe risks a wave of anti-EU
votes in 2014 European parliamentary elections unless a June
summit of European Union leaders offers a concrete response to
economic crisis, Italian Prime Minister Enrico Letta said on
Monday.
"If the European summit in June... results in a
bureaucratic, routine, formal conclusion, with a great abstract
plan that needs two years to be implemented...we risk creating a
climate in Europe in which the winning parties will be
anti-European," Letta said.
- EMERGING MARKETS-Brazil stocks slip on China, euro zone data.
Financial Times:
Telegraph:
- Policy battle rages in China as slowdown feeds 'sense of crisis'. Pressure is building for yet another burst of easy credit, even though the "economic
efficiency" of debt is collapsing. The output gained from each extra
yuan of credit has fallen from a ratio of 0.8 to 0.35 since 2008, a warning
sign that the cycle has played out. Fitch downgraded China's debt in April, warning that credit has already jumped
from 125pc to 200pc of GDP in four years, much of it in shadow banking.
While another burst of loans may boost growth in the short run, it risks
storing up ever greater problems.
- Warren Buffett sees 'brutal' damage for savers from central bank money printing. Veteran investor Warren Buffett has warned that savers and bondholders are
suffering a "brutal" erosion of their money as the US Federal
Reserve and other central banks force yields to historic lows.
Expansion:
- Mirrlees Says Spain Still Needs to Exit Euro. Spain needs to return
to the peseta, print money, and dedicate it to public investments to
solve economic crisis, Nobel Laureate James Mirrlees said. "My fear is
that the improvement of the credit market is coming too late," he said.
Les Echos:
- Germany's Schaeuble Tells Les Echos Reforms Must Continue. France and Germany are working well together and have a particular duty to the rest of Europe, Schaeuble said in an interview. High public debts and loss of competitiveness are the reasons for the problems face by some EU states, he said.
Valor Economico:
- Brazil Central Bank Wants Holders to Bail Out
Banks. Central bank is preparing proposal for shareholders, bondholders
and depositors to bail out banks instead of using govt resources, citing director Sidnei Correa Marques.
Style Underperformer:
Sector Underperformers:
- 1) Utilities -1.26% 2) Drugs -1.08% 3) Computer Services -.76%
Stocks Falling on Unusual Volume:
- MNST, PM, LINE, BRY, BBEP, LNCO, TG, NRGM, TSN, SCL, ATHN, MTGE, GEOS, EC, CYNO, HGSH, GK, WCG, YELP, AWR, SYY, OIS, KOF, MSTR, QRE, HPY, REGN, TESO and RPXC
Stocks With Unusual Put Option Activity:
- 1) EA 2) MMM 3) BMC 4) XLP 5) GMCR
Stocks With Most Negative News Mentions:
- 1) OIS 2) PCAR 3) MNST 4) REGN 5) PCAR
Charts:
