Tag: finance

via Zero Hedge http://ift.tt/1l5gcw5 williambanzai7

Most people in the world believe you get what you pay for. Furthermore, the dream of a meritocratic society remains alive and well in the corporate world. As the following chart shows, however, the US (and perhaps even the world) better hope that they don’t get what they are paying for…

 

 

As Bloomberg’s Niraj Shah notes, Mario Draghi was paid $518,264 last year, according to the ECB’s annual accounts released yesterday. That is more than twice as much as the $201,700 Janet Yellen is set to receive and the $235,400 earned by Haruhiko Kuroda. Mark Carney is paid the most of the major central bankers – earning a total of $1.46 million.

 

Of course, such comaprisons are absolutely idiotic when one considers the cost of living in various countries, something “1st tier” economists are completely unable to grasp when they compare wages (and minimum salaries) across nations.

via Zero Hedge http://ift.tt/1gQZCwp Tyler Durden

Six months ago a “glitch” halted all ATM withdrawals, and Credit and Debit card transactions for Russia’s largest bank but today, the CEO of the huge bank has no such “glitch” to blame:

• *SBERBANK SEES RUN ON ITS BANK MACHINES IN UKRAINE, GREF SAYS
• *UKRAINE SITUATION IS PRESSURING RUBLE: SBERBANK CEO GREF
• *SBERBANK HALTS LENDING IN UKRAINE, GREF SAYS

We suspect that whether an agreement is in place or not, this will continue.

 

 

via Zero Hedge http://ift.tt/1gQZCg3 Tyler Durden

Six months ago a “glitch” halted all ATM withdrawals, and Credit and Debit card transactions for Russia’s largest bank but today, the CEO of the huge bank has no such “glitch” to blame:

• *SBERBANK SEES RUN ON ITS BANK MACHINES IN UKRAINE, GREF SAYS
• *UKRAINE SITUATION IS PRESSURING RUBLE: SBERBANK CEO GREF
• *SBERBANK HALTS LENDING IN UKRAINE, GREF SAYS

We suspect that whether an agreement is in place or not, this will continue.

 

 

via Zero Hedge http://ift.tt/1gQZCg3 Tyler Durden

Several hours ago, and a day after the latest truce lasted about a few minutes before the the shooting returned and resulted in the bloodiest day of Ukraine’s protests so far, there was hope that the situation in Ukraine may finally be getting resolved, when Ukraine’s President Viktor Yanukovich announced plans for early elections in a series of concessions to his pro-European opponents. As Reuters reported earlier, Russian-backed Yanukovich, under pressure to quit from mass demonstrations in central Kiev, promised a national unity government and constitutional change to reduce his powers, as well as the presidential polls. He made the announcement in a statement on the presidential website without waiting for a signed agreement with opposition leaders after at least 77 people were killed in the worst violence since Ukraine became independent 22 years ago. This comes in the aftermath of S&P’s announcement overnight that the Ukraine will default in absence of favorable changes.

So is this the favorable change that everyone has been expecting. Nope.

First, it was Russia’s turn to remind everyone that it is Russia’s decision whether or not it will allow the nations that has the bulk of its European gas pipelines crossing its territory to leave its sphere of influence. To wit, Russia announced that it plans to wait before issuing additional financial support to Ukraine’s govt under $15b package, FinMin Anton Siluanov says in interview in Hong Kong, adding that Ukraine’s central bank may be wasting intl reserves defending hryvnia. Almos as if Russia would like the Ukraine to become insolvent and thus even more dependent on its good graces.

And then it was Europe’s turn. As WSJ reported, Polish Prime Minister Donald Tusk told reporters that “A lack of credibility will hang over all negotiations with Yanukovych’s participation. It seems the atmosphere in Kiev, especially after the death of so many people, may prompt the people in the Maidan to say: ‘We won’t discuss anything anymore with Yanukovych’.… The situation is changing so dramatically that this [deal] doesn’t necessarily need to be accepted by the Maidan, which considering thousands of people there make it the main reference point in Ukraine. … It’s too early for optimistic conclusions.”

He also said Poland’s efforts in Ukraine are an “investment in our security.” “It seems an increasing number of Poles understand that for a secure Poland an independent Ukraine is needed,” he said.

“It would be naive to assume Yanukovych has any good will—there’s nothing behind him but the wall. I don’t know anyone in the world who could say he trusts President Yanukovych. …

“I understand people in the Maidan who say ‘We don’t trust this man’ and that his departure is a condition for this deal. Those people need to be understood—bodies of people killed the other night are still there.

“But in order not to jeopardize this effort, in spite of myself I’m saying: ‘President Yanukovych should be at the table.’”

It was unclear as of this moment whether Yanukovich was at the table but what is clear is the following:

• UKRAINE PACT SIGNING DELAYED, WSJ SAYS, CITING DIPLOMATS
• GERMAN, POLISH MINISTERS RETURN TO MEETING W/UKRAINE PRESIDENT

Did they take him out?

And some more details from Dow Jones:

• Signing of Anticrisis Pact in Ukraine Delayed — Diplomats and Officials
• Ukraine Opposition Leaders, EU Diplomats in Talks With Protesters on Pact Terms
• Polish PM Tusk: Some Protesters Seeking Immediate Yanukovych Resignation
• Poland’s Tusk: “There’s Nothing Behind (Yanukovych) but the Wall”
• Poland’s Tusk: “In Spite of Myself, I’m Saying Yanukovych Should Be at the Table”

In other words, no deal, as the confusion and escalation will go on, until either a CIA-installed, pro-Western puppet government is installed (with the aid of said West of course – see Victoria Nuland leaked phone conversation), or until the Ukraine taps out and demands unconditional help from Putin.

At this point there does not appear to be a middle ground.

Ukrainian lawmakers scuffle in the country’s Parliament after the speaker
delayed debate on a resolution to reduce the powers of President Viktor
Yanukovych. – Reuters

via Zero Hedge http://ift.tt/Oikhzx Tyler Durden

Several hours ago, and a day after the latest truce lasted about a few minutes before the the shooting returned and resulted in the bloodiest day of Ukraine’s protests so far, there was hope that the situation in Ukraine may finally be getting resolved, when Ukraine’s President Viktor Yanukovich announced plans for early elections in a series of concessions to his pro-European opponents. As Reuters reported earlier, Russian-backed Yanukovich, under pressure to quit from mass demonstrations in central Kiev, promised a national unity government and constitutional change to reduce his powers, as well as the presidential polls. He made the announcement in a statement on the presidential website without waiting for a signed agreement with opposition leaders after at least 77 people were killed in the worst violence since Ukraine became independent 22 years ago. This comes in the aftermath of S&P’s announcement overnight that the Ukraine will default in absence of favorable changes.

So is this the favorable change that everyone has been expecting. Nope.

First, it was Russia’s turn to remind everyone that it is Russia’s decision whether or not it will allow the nations that has the bulk of its European gas pipelines crossing its territory to leave its sphere of influence. To wit, Russia announced that it plans to wait before issuing additional financial support to Ukraine’s govt under $15b package, FinMin Anton Siluanov says in interview in Hong Kong, adding that Ukraine’s central bank may be wasting intl reserves defending hryvnia. Almos as if Russia would like the Ukraine to become insolvent and thus even more dependent on its good graces.

And then it was Europe’s turn. As WSJ reported, Polish Prime Minister Donald Tusk told reporters that “A lack of credibility will hang over all negotiations with Yanukovych’s participation. It seems the atmosphere in Kiev, especially after the death of so many people, may prompt the people in the Maidan to say: ‘We won’t discuss anything anymore with Yanukovych’.… The situation is changing so dramatically that this [deal] doesn’t necessarily need to be accepted by the Maidan, which considering thousands of people there make it the main reference point in Ukraine. … It’s too early for optimistic conclusions.”

He also said Poland’s efforts in Ukraine are an “investment in our security.” “It seems an increasing number of Poles understand that for a secure Poland an independent Ukraine is needed,” he said.

“It would be naive to assume Yanukovych has any good will—there’s nothing behind him but the wall. I don’t know anyone in the world who could say he trusts President Yanukovych. …

“I understand people in the Maidan who say ‘We don’t trust this man’ and that his departure is a condition for this deal. Those people need to be understood—bodies of people killed the other night are still there.

“But in order not to jeopardize this effort, in spite of myself I’m saying: ‘President Yanukovych should be at the table.’”

It was unclear as of this moment whether Yanukovich was at the table but what is clear is the following:

• UKRAINE PACT SIGNING DELAYED, WSJ SAYS, CITING DIPLOMATS
• GERMAN, POLISH MINISTERS RETURN TO MEETING W/UKRAINE PRESIDENT

Did they take him out?

And some more details from Dow Jones:

• Signing of Anticrisis Pact in Ukraine Delayed — Diplomats and Officials
• Ukraine Opposition Leaders, EU Diplomats in Talks With Protesters on Pact Terms
• Polish PM Tusk: Some Protesters Seeking Immediate Yanukovych Resignation
• Poland’s Tusk: “There’s Nothing Behind (Yanukovych) but the Wall”
• Poland’s Tusk: “In Spite of Myself, I’m Saying Yanukovych Should Be at the Table”

In other words, no deal, as the confusion and escalation will go on, until either a CIA-installed, pro-Western puppet government is installed (with the aid of said West of course – see Victoria Nuland leaked phone conversation), or until the Ukraine taps out and demands unconditional help from Putin.

At this point there does not appear to be a middle ground.

Ukrainian lawmakers scuffle in the country’s Parliament after the speaker
delayed debate on a resolution to reduce the powers of President Viktor
Yanukovych. – Reuters

via Zero Hedge http://ift.tt/Oikhzx Tyler Durden

• RBS plans dramatic scaling back, to fire 30,000 of its 120,000 workers (FT)
• Zuckerberg’s Data Stance Faces Privacy Backlash in Europe (BBG)
• WhatsApp Shows How Phone Carriers Lost Out on $33 Billion (BBG)
• Markets flooded with cash, should Fed prep to stamp out risk? (Reuters)
• Venezuela threatens to expel CNN over protest coverage (BBC)
• Firm Stops Giving High-Speed Traders Direct Access to Releases (WSJ)
• Obama Budget to Delete Proposal to Limit Social Security (BBG)
• Energy Holdings Prepares for a Breakup (WSJ)
• EU Struggles to Streamline Bank-Failure Plan for Weekends (BBG)
• Madoff said JPMorgan executives knew of his fraud (Reuters), and JPM admitted as much when it settled with the DOJ
• China Hard Landing War-Gamed for World Economy (BBG)
• Google Borrows $1 Billion With First Bond Sale in Three Years (BBG)
• Big Banks Take Hits on Trusty Oil Hedge (WSJ)
• IMF Calls for Indian Emergency Rupee Plan in Taper Warning (BBG)

 

Overnight Media Digest

WSJ

THE GLOBE AND MAIL

* Liberal Party leader Justin Trudeau took a series of shots at his opponents in Ottawa and Quebec City in his opening address to more than 2,000 delegates, accusing other party leaders of exploiting the economic worries of Canadians for their own political gains.

* Executives at Loblaw Companies Ltd, the country’s largest supermarket chain, said on Thursday the company was passing on to consumers higher costs of purchasing U.S. fresh food and some general merchandise, while at the same time cutting prices of other goods to lure bargain-hungry customers.

Reports in the business section:

* The Parti Québécois government plans to give Quebec-incorporated companies powerful weapons to fend off hostile takeovers. The measures, should Quebec businesses choose to use them, would make it nearly impossible for a corporate predator to acquire a public company against the will of its board of directors.

NATIONAL POST

* Liberal leader Justin Trudeau said that his party was the only one capable of seriously offering Quebecers a place at the heart of government.

* Peter Blaikie, co-founder of Heenan Blaikie LLP, has sent staff an internal email in which he attributes the law firm’s demise to controversial business dealings in Africa.

FINANCIAL POST

* Royal Dutch Shell Plc is leading an industry pushback against the scope of British Columbia’s proposed tax on liquefied natural gas exports, extending a standoff over fiscal terms for the upstart sector.

* Canada’s grocery price war continues to take a toll on Walmart Canada, which reported on Thursday its fourth-consecutive quarter of falling same-store sales and customer traffic but improved its market share.

 

FT

Germany revises stringent rules imposed on regional airports that offer sweetheart deals to low-cost carriers in an attempt to find a middle way to reduce state support to the airline industry.
   
The influence of the European Parliament is seen growing since the revamp of the City of London’s regulatory regime in 2008, especially in the EU-backed rules governed financial sector.
   
Anglo-Dutch oil company Royal Dutch Shell said on Friday it has agreed to sell its Australian downstream businesses to oil trader Vitol SA for about A$2.9 billion ($2.6 billion).
   
Royal Bank of Scotland is expected to announce its withdrawal from many investment banking activities as well as much of its international business in a move that is  expected to reduce staff numbers by at least 30,000 over the next three to five years.
   
Business Wire will no longer let high-frequency trading companies buy potentially market-moving press releases directly from the Berkshire Hathaway Inc  unit.

 

NYT

* Facebook Inc’s agreement to buy the messaging start-up WhatsApp for up to $19 billion is risky, but follows a trend in valuing the number of users over revenue.

* Since the financial crisis, the Fed has engaged in an aggressive stimulus campaign, which has helped lift stock and bond markets, greatly enriching Wall Street in the process. Even so, a surprisingly large number of investors and bankers remain deeply skeptical – and even angry – about what the Fed is doing.

* Chickie’s & Pete’s, a chain of sports bars based in Philadelphia, has agreed to pay $6.8 million in back wages and damages for improperly taking tips from waiters and bartenders and for violating minimum wage and overtime laws, the Labor Department announced Thursday.

* Brookdale Senior Living and Emeritus Corp announced on Thursday that they would merge in a deal valued at $2.8 billion, including about $1.4 billion of Emeritus mortgage debt.

* A former hedge fund analyst has been charged with stealing confidential computer data from his previous employer, the latest crackdown by the Manhattan district attorney on suspected violations of cyber security.

* Juniper Networks, the networking equipment company, said on Thursday that it had reached an agreement with the hedge fund Elliott Management to nominate two new directors to its board and return more money to shareholders, avoiding a possible proxy fight with the hedge fund.

* Nutritional supplements company Herbalife Ltd will conduct a briefing on Friday to educate congressional staff members about its business in what appears to be an effort to ramp up its lobbying efforts in Washington.

* Sequoia Capital, the venture capital firm which invested in WhatsApp, is poised to make as much as 50 times its money on the Facebook deal, according to an estimate by DealBook and a person briefed on the matter.

* Engaged Capital, the activist hedge fund that has been pushing for change at Abercrombie & Fitch Co, stepped up its fight on Thursday by nominating five director candidates despite changes that the retailer had announced in recent weeks.

 

Canada

THE GLOBE AND MAIL

* Liberal Party leader Justin Trudeau took a series of shots at his opponents in Ottawa and Quebec City in his opening address to more than 2,000 delegates, accusing other party leaders of exploiting the economic worries of Canadians for their own political gains.

* Executives at Loblaw Companies Ltd, the country’s largest supermarket chain, said on Thursday the company was passing on to consumers higher costs of purchasing U.S. fresh food and some general merchandise, while at the same time cutting prices of other goods to lure bargain-hungry customers.

Reports in the business section:

* The Parti Québécois government plans to give Quebec-incorporated companies powerful weapons to fend off hostile takeovers. The measures, should Quebec businesses choose to use them, would make it nearly impossible for a corporate predator to acquire a public company against the will of its board of directors.

NATIONAL POST

* Liberal leader Justin Trudeau said that his party was the only one capable of seriously offering Quebecers a place at the heart of government.

* Peter Blaikie, co-founder of Heenan Blaikie LLP, has sent staff an internal email in which he attributes the law firm’s demise to controversial business dealings in Africa.

FINANCIAL POST

* Royal Dutch Shell Plc is leading an industry pushback against the scope of British Columbia’s proposed tax on liquefied natural gas exports, extending a standoff over fiscal terms for the upstart sector.

* Canada’s grocery price war continues to take a toll on Walmart Canada, which reported on Thursday its fourth-consecutive quarter of falling same-store sales and customer traffic but improved its market share.

 

China

SHANGHAI SECURITIES NEWS

– China’s central bank has told financial institutions they should be more responsive to its credit policy on investment in key areas including agricultural development, technology and green cars, sources said.

CHINA SECURITIES JOURNAL

– China Securities Regulatory Commission said on its official microblog that “naked short selling” is strictly forbidden in margin trading.

21ST CENTURY BUSINESS HERALD

– All third-party payment service providers registered in Shanghai with an online payment license are qualified to conduct cross-border renminbi-payment, according to a document issued by the central bank.

– Great Wall Motor Co Ltd will set up a financial company in late March in Tianjin to provide financing for car buyers, sources said.

CHINA DAILY

– External intervention will only further divide Ukraine and it is for the Ukrainians themselves to solve the country’s political crisis, it said in an editorial.

PEOPLE’S DAILY

– China should be confident on its political system but at the same time push ahead with ongoing reforms, an editorial said.

 

Britain

The Telegraph

STANDARD LIFE TO WARN OF RISKS OF SCOTTISH INDEPENDENCE

Standard Life is poised to warn that Scottish independence poses a significant risk to its business in yet another blow to Alex Salmond and the SNP.

SAM LAIDLAW FUELS SPECULATION OVER CENTRICA EXIT AND HINTS BRITISH GAS COULD CUT PRICES

Sam Laidlaw fuelled speculation over his exit from Centrica on Thursday by refusing to say how long he anticipated remaining at the energy giant’s helm, as he unveiled a 2 percent fall in annual profits.

The Guardian

LLOYDS CREATES HOLDING COMPANY FOR TSB BANK FLOAT

Lloyds Banking Group is gearing up for the flotation of its TSB arm later this year by registering a new holding company in advance of the 1 billion pound share sale.

UK PRODUCTIVITY GAP WITH DEVELOPED NATIONS NOW WIDEST FOR 20 YEARS

Britain’s productivity gap with its main developed country rivals is at its widest in 20 years, following the flat-lining of the economy after the deep recession of 2008-09.

The Times

LLOYDS BONDHOLDERS SHAKEN BY TALK OF CHEAP BANK BUYBACK

Lloyds Banking Group is facing a run-in with retail and institutional bond investors after threatening to buy back billions of its high-interest-bearing debts at less than their face value.

BOOTS TO SELL E-CIGARETTES IN DEAL WITH IMPERIAL TOBACCO

Boots the chemist, founded by Quakers in 1849, has signed an exclusive deal with a subsidiary of Imperial Tobacco that means the high street chain will be selling electronic cigarettes from Monday.

Sky News

RBS PLOTS OVERHAUL OF CORPORATE BANKING ARM

Royal Bank of Scotland will next week launch a radical restructuring of its corporate banking division as part of a wider overhaul of the taxpayer-backed lender.

CITY HEAVYWEIGHT’S FURY OVER ESSAR ENERGY BID

A major City investor in Essar Energy, Capital Research Global Investors, which owns about 3.5 percent of Essar Energy , is furious at a proposed 70 pence a share bid from a vehicle controlled by the Ruia family.

 

Fly On The Wall 7:00 AM Market Snapshot

ECONOMIC REPORTS

Domestic economic reports scheduled include:8
Existing home sales for January at 10:00-consensus down 4.1% to 4.67M

ANALYST RESEARCH

Upgrades

AEGON (AEG) upgraded to Strong Buy from Outperform at Raymond James
Basic Energy (BAS) upgraded to Market Perform from Underperform at Raymond James
CommScope (COMM) upgraded to Buy from Hold at Jefferies
EMC Insurance (EMCI) upgraded to Outperform from Market Perform at Keefe Bruyette
EV Energy (EVEP) upgraded to Buy from Hold at Wunderlich
Rex Energy (REXX) upgraded to Accumulate from Neutral at Global Hunter
Seadrill (SDRL) upgraded to Overweight from Neutral at HSBC
Seagate (STX) upgraded to Outperform from Sector Perform at RBC Capital
Signet Jewelers (SIG) upgraded to Buy from Neutral at Sterne Agee
Total (TOT) upgraded to Neutral from Sell at Goldman

Downgrades

Columbia Sportswear (COLM) downgraded to Sell from Hold at McAdams Wright
Essent Group (ESNT) downgraded to Market Perform from Outperform at Keefe Bruyette
Groupon (GRPN) downgraded to Underperform from Sector Perform at RBC Capital
InterContinental Hotels (IHG) downgraded to Underperform from Neutral at Credit Suisse
Mohawk (MHK) downgraded to Market Perform from Strong Buy at Raymond James
Montage Technology (MONT) downgraded to Equal Weight from Overweight at Barclays
National CineMedia (NCMI) downgraded to Hold from Buy at Stifel
National CineMedia (NCMI) downgraded to Neutral from Buy at B. Riley
Nordstrom (JWN) downgraded to Hold from Buy at Stifel
Oil States (OIS) downgraded to Neutral from Buy at Guggenheim
PSEG (PEG) downgraded to Hold from Buy at Jefferies
Performant Financial (PFMT) downgraded to Market Perform from Outperform at Wells Fargo
Philip Morris (PM) downgraded to Market Perform from Outperform at First Global
Philips (PHG) downgraded to Underperform from Neutral at Exane BNP Paribas
Sunoco Logistics (SXL) downgraded to Neutral from Buy at UBS

Initiations

A.V. Homes (AVHI) initiated with a Neutral at Sterne Agee
BioCryst (BCRX) initiated with an Overweight at Piper Jaffray
FleetCor (FLT) initiated with a Buy at Jefferies
Freescale (FSL) initiated with a Buy at Dresdner
International Rectifier (IRF) initiated with a Buy at Stifel
Mattson (MTSN) initiated with an Outperform at Cowen
Nielsen (NLSN) initiated with a Neutral at RW Baird
ON Semiconductor (ONNN) initiated with a Buy at Drexel Hamilton
Power Solutions (PSIX) initiated with an Overweight at Piper Jaffray
RSP Permian (RSPP) initiated with a Buy at Jefferies
Restoration Hardware (RH) initiated with a Buy at BB&T
Sprouts Farmers Markets (SFM) initiated with a Perform at Oppenheimer
Susser Holdings (SUSS) initiated with an Outperform at Macquarie
Susser Petroleum Partners (SUSP) initiated with an Outperform at Macquarie
The Fresh Market (TFM) initiated with a Perform at Oppenheimer
The Pantry (PTRY) initiated with a Neutral at Macquarie
WCI Communities (WCIC) initiated with a Buy at Sterne Agee
WEX Inc. (WEX) initiated with a Buy at Jefferies
Whole Foods (WFM) initiated with an Outperform at Oppenheimer

COMPANY NEWS

Brookdale Senior Living (BKD), Emeritus (ESC) announced merger valued at $2.8B
Shell (RDS.A) to sell Australia downstream business to Vitol for $2.6B
Juniper (JNPR) to restructure, reduce cost base
Business Wire (BRK.A) to no longer license feed to high frequency trading firms
Amazon (AMZN) CEO Bezos sold 1M shares at average selling price of $351.03
HP (HPQ) CEO Whitman: “Significant progress” made on five-year turnaround plan
Eastman Chemical (EMN) approved additional $1B share repurchase plan
Groupon (GRPN) to release new widget-based e-mail system
Navistar (NAV) to cut 280 jobs, consolidate engine manufacturing

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
DISH (DISH), Agrium (AGU), Kindred Healthcare (KND), Pilgrim’s Pride (PPC), eHealth (EHTH), Bill Barrett (BBG), Aruba Networks (ARUN), Shutterstock (SSTK), Marvell (MRVL), Alexander & Baldwin (ALEX), CommScope (COMM), WebMD (WBMD), priceline.com (PCLN), Groupon (GRPN), HP (HPQ)

Companies that missed consensus earnings expectations include:
Thompson Creek (TC), Newmont Mining (NEM), SJW Corp. (SJW), Maxwell (MXWL), MRC Global (MRC), Emeritus (ESC), Universal Truckload (UACL), Acacia Research (ACTG)

Companies that matched consensus earnings expectations include:
Cabot Oil & Gas (COG), Express Scripts (ESRX), Exelixis (EXEL), Allscripts (MDRX), Mattson (MTSN), Envestnet (ENV), Tile Shop (TTS), Datalink (DTLK), Intuit (INTU)

NEWSPAPERS/WEBSITES

Royal Bank of Scotland (RBS) plans significant resizing, may cut headcount by at least 30,000 in coming years, FT reports
Anixter (AXE) working with Goldman Sachs (GS) on potential sale, Bloomberg reports
Google (GOOG) was willing to outbid Facebook (FB) for WhatsApp, The Information reports
NYSE (ICE), others seek to end ‘maker-taker’ rebate system, Bloomberg reports
JPMorgan (JPM) holder pulls chairman proposal, WSJ reports
Yahoo (YHOO) aims to develop an improved Siri (AAPL), Mashable reports
Ford (F) expects 1M-plus vehicle sales in China this year, WSJ reports
General Motors (GM) expects China sales up as much as 10% this year, Bloomberg reports
Noble Energy (NBL) hired Lazard (LAZ) to sell stake in China oil field, WSJ reports
Amazon (AMZN) in talks with retailers for listings, WSJ reports
NYSE (ICE), others seek to end ‘maker-taker’ rebate system, Bloomberg reports

SYNDICATE

Diamondback Energy (FANG) 3M share Secondary priced at $62.67
Progenics (PGNX) files to sell common stock
Selmer Scientific (SMLR) 1.43M share IPO priced at $7.00

via Zero Hedge http://ift.tt/1fmvtEW Tyler Durden

This was one of the all too real Bloomberg headlines posted overnight: “Asian Shares Rally as U.S. Manufacturing Data Beats Estimates.” Odd: are they refering to the crashing Philly Fed, or the just as crashing Empire Fed data? Wait, it was the C-grade MarkIt PMI that nobody ever looks at, except to confirm that where everyone else sees snow, the PMI saw sunshine and growth. Remember: if the data is weak, it’s the snow; if it’s strong, it’s the recovery. Odder still: one would think Asian shares care about manufacturing data of, say, China. Which happens to be in Asia, and which two nights ago crashed to the lowest in months. Or maybe that only impact the SHCOMP which dropped 1.2% while all other regional markets simply do what the US and Japan do – follow the USDJPY, which at one point overnight rose as high as 102.600, and brought futures to within inches of their all time closing high. Sadly, it is this that passes for “fundamental” analysis in this broken market new normal…

In other news,, heading into the North American cross over stocks in Europe are seen somewhat mixed, with the FTSE-100 index outperforming amid touted reinvestment flows by passive fund managers related to Vodafone/Verizon M&A deal. Financials and basic materials underperformed this morning, weighed on by negative broker recommendation by JPM on Glencore and uncertainty surrounding the future on the OMT programme. Of note, expiring equity options throughout the day will likely lead to higher than avg. volatility both in Europe and the US.

Looking elsewhere, the cautious price action supported Bunds, which also benefited from touted short covering and month-end related flows, with USTs also better bid from better buying out of Asia. Going forward, market participants will get to digest the release of the latest inflation data from Canada and existing home sales data from the US.

Headline bulletin summary from Bloomberg and RanSquawk

• Treasuries headed for third consecutive weekly loss amid gains in stocks and as investors attributed weaker-than-forecast economic data to snow and ice storms across the United States.
• China’s stocks fell the most in six weeks, while the yuan headed for its biggest weekly slide since 2011 as a manufacturing slowdown fueled concerns the economic expansion is weakening
• Ukrainian President Viktor Yanukovych agreed to a plan for resolving the political crisis that threatened to split the country after meeting through the night with  European officials
• Yanukovych in statement on web site calls for early presidential elecion, forming government of “national trust”
• U.K. retail sales fell more than economists forecast in January with the biggest drop in almost two years, led by lower demand at food and clothing stores
• The Obama administration plans to propose new limits on multinational companies’ ability to take advantage of gaps between countries’ tax rules, an administration official said
• Matteo Renzi, Italy’s prime minister-designate, plans to meet President Giorgio Napolitano today to accept the mandate to form a new government, an official in his Democratic Party said
• Sovereign yields mostly lower. EU peripheral spreads tighter. Asian stocks mostly higher; Nikkei +2.88%, Shanghai -1.2%. European stocks mixed, U.S. stock-index futures rise. WTI crude, copper and gold

US Event Calendar

• 10:00am: Existing Home Sales, Jan., est. 4.68m (prior 4.87m); m/m, Jan., est. -3.9% (prior 1%)
• 1:10pm: Fed’s Bullard speaks on economy in St. Louis, Mo.
• 1:45pm: Fed’s Fisher speaks in Austin, Texas Supply
• 11:00am: POMO – Fed to purchase $1b-$1.25b in 2036-2044 sector

Asian Headlines

Bank of Japan minutes from January 21st-22nd meeting stated that many members called for a need to clearly explain that QE is not strictly limited to 2-year time frame. Members also agreed that the positive economic cycle is to remain in place after the sales tax hike and that inflation expectations are rising on the whole. (BBG/RTRS)

EU & UK Headlines

UK Retail Sales Ex Auto (Jan) M/M -1.5% vs Exp. -1.2% (Prev. 2.8%, Rev. 2.7%) – According to ONS, Jan. weakness due to supermarket sales, but strong sales of furniture, electricals and DIY goods.

UK Public Finances (PSNCR) (Jan) M/M -25.4bln vs. Exp. -31.0bln (Prev. 9.0bln, Rev. to 9.1bln)

Analysts at BNP Paribas believe that the ECB is to start QE with EUR 300-500bln worth of bond purchases in H2 2014 to combat deflation risks, adding that Euro government bond markets will probably start pricing in ECB QE from now on.

Fitch affirmed Austria at AAA; outlook stable, and affirmed Ireland at BBB+; outlook stable. (BBG) Moody’s are due to issue their judgement on the Spanish sovereign rating today – they are currently rated Baa3; Outlook stable.

Barclays preliminary pan-Euro agg month-end extensions: (+0.07y) (12m avg. +0.07y)

Barclays preliminary Sterling month-end extensions:(+0.05y) (12m avg. +0.06y)

US Headlines

US Treasuries remain a major investment target for China’s foreign exchange reserves, with China facing the problem that there is no better tool for investment than US bonds, according to unsourced reports. (People’s Daily) This week’s TIC flow data showed China sold USD 48bln of Treasuries in January – the most in one month for two years.

Barclays preliminary US Tsys month-end extensions:(+0.12y) (12m avg. +0.07y)

Equities

French listed Kering shares came under pressure following the release of somewhat less than impressive earnings, with particular focus on weak earnings by Gucci which posted slowest sales growth in four years. Elsewhere, RBS shares rose just over 2% following reports that the bank is to cut at least 30,000 jobs in next 3-5 years, including 18,500 jobs from

Citizens sale in US and 11,000 jobs in investment banking.

Hewlett-Packard shares traded up just over 2% in after-market hours yesterday after the company reported Q1 Adj. EPS USD 0.90 vs. Exp. USD 0.84. Q1 rev. USD 28.15bln vs. exp. USD 27.18bln.

FX

The release of weaker than expected UK retail sales was offset by better than expected public finances data, which in turn prevented a sustained move lower by GBP. At the same time, GBP remained supported by touted M&A related flow (Vodafone/Verizon). USD/JPY failed to hold onto gains made overnight, as out performance by Bunds during the first half of the European trading session buoyed demand for safe-haven assets.

Commodities

Iraq plans to cut Kirkuk March crude exports to 16 cargoes, plans to export 250,323bpd in March vs. 319,643bpd in February. (BBG)

Chinese January Iranian imports are at 564,536bpd, up 82% Y/Y and 11.2% M/M. (RTRS)

According to a senior US military officer, China has been training for a ‘short, sharp war’ against Japan in the East China Sea. (FT) The officer based the comments on war games conducted by Chinese forces in 2013, said to prepare the PLA for any seizure of the Senkaku Islands.

Brazil has temporarily reduced its Aluminium import tariff, to 2%, down from 6%, valid for 180 days. (MetalBulletin) China Jan. primary aluminium imports rose 214.7% Y/Y to 54,878 tonnes. (RTRS)

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We conclude with the traditional recap from Jim Reid of DB

With the weather still dominating discussion about the data, the key release yesterday was the better than expected US Markit PMI (56.7 vs 53.6 expected) which provided some hope that the recovery will survive the record cold patch recently seen in the US. Markets picked up after this and recovered losses from the earlier weak Chinese and slightly weak European data. There was also a poor US Philly Fed (-6.3 v 8.0) in what was the first negative print in 9 months, but the report did again cite weather as a factor. Elsewhere in the US, inflation remained tame with the latest January reading coming basically in line with expectations (+0.1% mom/+1.6%yoy).

Data aside some major M&A news in the Tech space also added to the bid tone. The S&P 500 (+0.60%) pretty much retraced all of Wednesday’s losses with all ten major sectors finishing higher on the day. Facebook’s US$19bn acquisition of mobile messaging application WhatsApp clearly dominated the corporate headlines. The news certainly created a lot of buzz but to put things in a little bit of context, WhatsApp’s US$19bn valuation is greater than the market caps of some major household names such as News Corp, Alcoa and Tiffany. In fact if WhatsApp was a stand-alone company in the S&P 500 index, it would be ranked somewhere around 228 out of 500 in terms of market cap. Asian markets overnight are following the US lead with majority of the regional bourses in the green. The Nikkei, KOSPI and the NIFTY are up +2.8%, +1.3% and +0.8% as we type. China is key exception with the Shanghai Composite (-1.4%) suffering its biggest one day drop since early January. The Chinese
weakness is also reflected in its currency with the CNY set for its biggest fall since September 2011 in offshore trading. The flash manufacturing PMI weakness is perhaps still influencing sentiment there.

Back to yesterday it was a relatively softer day for European assets (Stoxx600 -0.05%, DAX -0.43%) although they did recover from the morning lows. Much of this was perhaps due to the disappointing February euro-area flash PMI which was largely dragged down by France. At the composite level the index fell 0.2pts to 52.7 whilst the market was looking for a small increase to 53.1. Notably the fall on the manufacturing index (53.0 v 54.0 prev) appears consistent with the weakening trend we’ve seen from China. Indeed at the country level, the French composite index fell 1.3pts to 47.6, which more than offset a stronger reading in Germany (up 0.6pt to 56.1). The bigger than expected decline in the latest January French CPI (-0.6% mom v -0.4% mom consensus) was also a worry.

Moving on to the EM side, Ukraine yesterday saw violent clashes erupt once again in the capital city of Kiev yesterday while EU foreign ministers also approved sanctions against the country. The sanctions include asset freezes and visa bans for those deemed responsible for violence. The ministers also agreed to ban exports to Ukraine of equipment that could be used for internal repression, but a proposal to ban arms exports to the country was said to have been dropped. Away from Ukraine, the riots in Venezuela continued yesterday which saw six more dead with the hotspots largely concentrated in the western Andean states of Tachira and Merida, which have been especially volatile since hardline opposition leaders called supporters onto the streets in early February.

Looking ahead we have a relatively muted day as far as key economic data
is concerned. Existing home sales in the US and Germany PPI are perhaps
the notable releases. The Fed’s Fisher and Bullard are also scheduled
to speak at some point later today. The G20 finance ministers meeting in
Sydney this weekend will also be a key near term event in the region so
expect plenty of headlines.

via Zero Hedge http://ift.tt/1dX3XOi Tyler Durden

From Paul Mylchreest of Monument Securities

Coffee was up another 12% yesterday! After introducing myself to ADM’s Sugar trading team, I thought I’d better introduce myself to our Coffee team pronto, who were equally friendly I have to say. Feedback  – besides the dry weather in Brazil, there are also unsubstantiated rumours of a trading house getting in to trouble – which might not be surprising given the scale of the recent move. Here is the Coffee chart since the beginning of 2013.

 

Not sure if ADM trades Lean Hogs (must be out of Chicago if we do), but did you see them fly (!) during the last couple of days? Terrible.

 

We highlighted the CRB/BLS Spot Foodstuffs Index last week. It’s continuing to rise but still remains lower year-on-year at this point.

The question is whether this is the start of a broadly-based period of food price inflation?

So what about the Food Retailing stocks?

I was watching the S&P 500 Food & Staples Retailing sector yesterday. It rose 1.3% versus a 0.7% fall in the S&P 500.

After all their travails from intense competition and over-investment, maybe some food price inflation is just what the UK Food Retailers need…if they can pass it on in the current environment!

If we look back to a more “normal” period for these stocks, e.g. from 1996-2007, the Food Retailers did do well during periods of rapidly escalating food prices – although often with a lag.

via Zero Hedge http://ift.tt/1l3AuG3 Tyler Durden

Submitted by Mike Krieger of Liberty Blitzkrieg blog,

Last week, I highlighted the fact that the latest Press Freedom Index showcased a 13 point plunge in America’s press freedom to an embarrassing #46 position in the global ranking. If the authoritarians in the Obama Administration have their way, this country is set to fall much further in next year’s index.

Incredibly, the Federal Communications Commission (FCC) is set to roll out something called the Critical Information Needs study, which will embed government “researchers” into media organizations around the nation to make sure they are doing their job properly.

No this isn’t “conspiracy theory.” It is so real, and represents such a threat to the First Amendment, that a current FCC commissioner, Ajit Pai, recently wrote an Op-Ed in the Wall Street Journal, warning Americans of this scheme. He writes:

News organizations often disagree about what Americans need to know. MSNBC, for example, apparently believes that traffic in Fort Lee, N.J., is the crisis of our time. Fox News, on the other hand, chooses to cover the September 2012 attacks on the U.S. diplomatic compound in Benghazi more heavily than other networks. The American people, for their part, disagree about what they want to watch.

 

But everyone should agree on this: The government has no place pressuring media organizations into covering certain stories.

 

Unfortunately, the Federal Communications Commission, where I am a commissioner, does not agree. Last May the FCC proposed an initiative to thrust the federal government into newsrooms across the country. With its “Multi-Market Study of Critical Information Needs,” or CIN, the agency plans to send researchers to grill reporters, editors and station owners about how they decide which stories to run. A field test in Columbia, S.C., is scheduled to begin this spring.

The purpose of the CIN, according to the FCC, is to ferret out information from television and radio broadcasters about “the process by which stories are selected” and how often stations cover “critical information needs,” along with “perceived station bias” and “perceived responsiveness to underserved populations.”

I have no idea what country I am living in at this point.

How does the FCC plan to dig up all that information? First, the agency selected eight categories of “critical information” such as the “environment” and “economic opportunities,” that it believes local newscasters should cover. It plans to ask station managers, news directors, journalists, television anchors and on-air reporters to tell the government about their “news philosophy” and how the station ensures that the community gets critical information.

 

Participation in the Critical Information Needs study is voluntary—in theory. Unlike the opinion surveys that Americans see on a daily basis and either answer or not, as they wish, the FCC’s queries may be hard for the broadcasters to ignore. They would be out of business without an FCC license, which must be renewed every eight years.

 

Should all stations follow MSNBC’s example and cut away from a discussion with a former congresswoman about the National Security Agency’s collection of phone records to offer live coverage of Justin Bieber‘s bond hearing? As a consumer of news, I have an opinion. But my opinion shouldn’t matter more than anyone else’s merely because I happen to work at the FCC.

I am simply speechless.

Read the full Op-Ed here.

via Zero Hedge http://ift.tt/1ec32EZ Tyler Durden