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The USD Index is up 0.3% this morning driven mainly by EUR weakness. The USD Index’s break above recent highs (around 8amET) coincided with US equity and Treasury weakness but is having an even more significant impact on commodities.
US Dollar strength…
Led to Bond and Stock weakness in the US…
And a commodity dump..
Charts: Bloomberg
via Zero Hedge http://ift.tt/1s8bTUr Tyler Durden
Greek 10Y yields, up 6 days in a row, have surged in the last few days to 2-month highs (bond price lows). The significant shift in sentiment appears related to two main factors. First, The Independent reports that Europe is considering pulling Troika (its economic oversight committee) – which has been likened to German Nazi occupation – out of Greece, forcing local politicians to come up with their own reforms by the start of 2015 (which clearly the market is not believing). Perhaps even more concerning is Goldman Sachs shift to neutral on European peripheral bonds, warning that “at current spread levels we think there is not enough of a buffer for investors to take credit risk in intermediate and long-dated peripheral sovereign bonds.” Time for some more ‘whatever it takes’ we think.
Greek Bonds are tumbling…
Brussels is considering pulling the troika out of Greece to allow Athens to pursue its own plan to improve the economy, European officials have told Reuters.
The move seems to be partly a reaction to political pressure from Greek anti-troika political parties set to do well in polls.
The discussion, still in its early stages, will gather pace as Greece and its euro zone backers chart a new course for the country with its second European bailout programme due to end later this year.
Dismantling the troika, which has been likened by some in Greece to the German Nazi occupation, would probably be central to the new plan for Athens, news agency Reuters added without saying where it learnt of the plan.
…
Switching to a ‘reform-for-debt-relief’ scheme with lighter supervision could sooth public frustration and help bolster the coalition government at the expense of far-left political party Syriza, which has promised to tear up Greece’s international bailout agreement and is leading in the polls.
…
“There must be Greek ownership of reform. The Greeks have until October to come up with a programme, which would be decided by December for the start of 2015.”
As a fall back, Greece could be given a precautionary credit line – like Portugal…, however…
“It was a mistake not to give Portugal a precautionary credit line,” the official said, referring to Lisbon’s conclusion of its bailout without such back-up. “You couldn’t make the same mistake with Greece.”
So more free money in case they screw up.
* * *
Troika or no Troika, it seem beggars remain choosers in Europe – despite the hardships of the people.
* * *
But investors may be less patient… (via Goldman Sachs)
At current spread levels we think there is not enough of a buffer for investors to take credit risk in intermediate and long-dated peripheral sovereign bonds and to position for further spread tightening. Given our strategic view on core bonds, we expect EMU peripheral yields to increase in coming months and the curves to steepen alongside the Bund curve.
Furthermore, the market should begin to discriminate more across peripheral issuers and country-specific factors are likely to play an increasing role in investment decisions, while, so far, the backstop provided by the central bank was all that mattered. Given the macro implications of higher yields for growth and debt sustainability, an increase in core rates is likely to have a stronger effect in `weaker countries`.
In this context, we are more concerned about Italy where, over the past few months, economic activity data has continued to surprise on the downside and institutional and structural reforms have not yet been delivered. In Q1, GDP growth was negative and the signal from high-frequency indicators for Q2 continues to be weak. The Italian government is struggling to pass changes to the electoral law and the Senate, and to implement liberalization reforms that can spur growth and attract foreign investors. The fiscal outlook is deteriorating, spending cuts and privatization plans are stalling. Until the country delivers on some of these dimensions and growth comes back, an increase in core yields is likely to lead investors to demand more compensation for holding BTPs as higher interest rates will carry a greater economic and credit risk.
Finally on Portugal, we do not expect that 10-year spread to Bunds to compress further as we previously wrote. There is now more clarity on the Banco Espirito Santo Group to guide our strategic views. The bail-in procedure announced on August 3 fits into the new template of achieving a separation between banks and sovereign`s liabilities and this is a positive for the outlook of Portuguese bonds. That said, the fact that the cash buffer available from the EU/IMF program to recapitalize banks is shrinking and evidence that, even after the Troika has been in the country for three years, there was a non-trivial governance problem in the second largest bank of the country that might leave some legacy in terms of institutional transparency and credibility.
* * *
So, the Greeks are on their own to manage their economy (that worked out well before) and investors are losing faith in Draghi’s ability to hold rates down forever… at the same time as European growth expectations are collapsing…
via Zero Hedge http://ift.tt/1ARfxEE Tyler Durden
While in the US there has been nothing but political propaganda and a constant Obama defense of John Kerry over his disastrous, to date, handling of the deteriorating situation in the middle east, in the UK the internal discord has finally moved beyond merely posturing and has claimed the first political career, when overnight a minister in the Foreign Office, Baroness Warsi, announced she has resigned from the government, saying its policy on the crisis in Gaza is “morally indefensible”, is not in Britain’s national interest and will have a “long term effect on our reputation internationally and domestically”.
She adds that the decision “has not been easy” but there is “great unease” within the Foreign Office over “the way recent decisions are being made.” According to BBC, Lady Warsi, who was previously chairman of the Conservative Party, became the first female Muslim cabinet minister when David Cameron took office in 2010. The prime minister thanked her for her “excellent work”, adding that he wanted an “unconditional ceasefire” in Gaza.
Labour backed Lady Warsi’s comments, but Chancellor George Osborne called her resignation “disappointing and frankly unnecessary”.
More:
Lady Warsi grew up in Dewsbury, West Yorkshire, and worked as a solicitor before entering politics. She was demoted from the cabinet to a middle-ranking Foreign Office post in 2012, being made minister for faith and communities at the same time.
She wrote on Twitter on Tuesday: “With deep regret I have this morning written to the Prime Minister & tendered my resignation. I can no longer support Govt policy on #Gaza.”
Several backbench Conservative MPs have called on Mr Cameron to take a more robust line with Israel amid concerns its actions in Gaza are “disproportionate”.
According to a BBC analysis of her departure, the minister has “chosen a day when the prime minister is away to hand in her resignation. She is the first minister in four years of coalition government to resign over a matter of policy.”
She clearly believes – as probably the most prominent British Muslim politician in the country – that she can no longer stand by a prime minister and a government that she feels is using a “morally indefensible” policy when it comes to Israel and the ongoing conflict in Gaza.
She has made it clear that her Muslim faith and her personal beliefs must come before her political beliefs and career.
The Conservatives, traditionally, have close ties to the Israeli government and it is far more difficult for David Cameron and those at the top of his party to speak out more strongly about Israel than others, who have a different policy.
In other words, acting based on her beliefs instead of ulterior lobby interests: strange. Her full letter below:
Dear Prime Minister
For some weeks, in meeting and discussion, I have been open and honest about my views on the conflict in Gaza and our response to it.
My view has been that our policy in relation to the Middle East Peace Process generally but more recently our approach and language during the current crisis in Gaza is morally indefensible, is not in Britain’s national interest and will have a long term detrimental impact on our reputation internationally and domestically.
Particularly as the Minister with responsibility for the United Nations, The International Criminal Court and Human Rights I believe our approach in relation to the current conflict is neither consistent with our values, specifically our commitment to the rule of law and our long history of support for International Justice. In many ways the absence of the experience and expertise of colleagues like Ken Clarke and Dominic Grieve has over the last few weeks become very apparent.
This decision has not been easy. It has been a privilege to serve for 3 years in your Shadow Cabinet and over 4 years in your Cabinet. Introducing you in Blackpool in 2005 as you made your bid for leadership I had the pleasure of being there at the start of the journey and it would have been rewarding to have been there til the end.
The last decade has given me the opportunity to work with some of the best in the Conservative Party and indeed in Government. William Hague was probably one of the finest Foreign Secretaries this country has seen and has been inspirational. He dismantled foreign policy making by sofa government and restored decision making and dignity to the Foreign Office. There is however great unease across the Foreign Office, amongst both Minister and senior officials, in the way recent decisions are being made.
Eric Pickles has supported me tirelessly in our work on combating hate crime. Challenging anti-Semitism and Islamaphobia and the pioneering work of celebration faith in the public sphere. This new found confidence in Government has allowed me to take the very public International lead on religious freedom, specifically on the ever growing crisis of the persecution of Christians. However, early evidence from the Home Office and others shows that the fallout of the current conflict and the potential for the crisis in Gaza and our response to it becoming a basis for radicalisation could have consequences for us for years to come.
From both Eric and William I learnt the art of reconciling passion and idealism with pragmatism and realism, but I always said that long after life in politics I must be able to live with myself for the decisions I took or the decisions I supported. By staying in Government at this time I do not feel I can be sure of that.
It is therefore with regret that I am writing to resign.
You will continue to have my personal support as leader of the Conservative party as you continue to ensure that our Party evolves to meet the challenges we face in Britain today and ensure that the Party is relevant and responsive to all communities that make up today’s Britain.
Yours sincerely
Sayeeda
via Zero Hedge http://ift.tt/1ARfoRB Tyler Durden
While in the US there has been nothing but political propaganda and a constant Obama defense of John Kerry over his disastrous, to date, handling of the deteriorating situation in the middle east, in the UK the internal discord has finally moved beyond merely posturing and has claimed the first political career, when overnight a minister in the Foreign Office, Baroness Warsi, announced she has resigned from the government, saying its policy on the crisis in Gaza is “morally indefensible”, is not in Britain’s national interest and will have a “long term effect on our reputation internationally and domestically”.
She adds that the decision “has not been easy” but there is “great unease” within the Foreign Office over “the way recent decisions are being made.” According to BBC, Lady Warsi, who was previously chairman of the Conservative Party, became the first female Muslim cabinet minister when David Cameron took office in 2010. The prime minister thanked her for her “excellent work”, adding that he wanted an “unconditional ceasefire” in Gaza.
Labour backed Lady Warsi’s comments, but Chancellor George Osborne called her resignation “disappointing and frankly unnecessary”.
More:
Lady Warsi grew up in Dewsbury, West Yorkshire, and worked as a solicitor before entering politics. She was demoted from the cabinet to a middle-ranking Foreign Office post in 2012, being made minister for faith and communities at the same time.
She wrote on Twitter on Tuesday: “With deep regret I have this morning written to the Prime Minister & tendered my resignation. I can no longer support Govt policy on #Gaza.”
Several backbench Conservative MPs have called on Mr Cameron to take a more robust line with Israel amid concerns its actions in Gaza are “disproportionate”.
According to a BBC analysis of her departure, the minister has “chosen a day when the prime minister is away to hand in her resignation. She is the first minister in four years of coalition government to resign over a matter of policy.”
She clearly believes – as probably the most prominent British Muslim politician in the country – that she can no longer stand by a prime minister and a government that she feels is using a “morally indefensible” policy when it comes to Israel and the ongoing conflict in Gaza.
She has made it clear that her Muslim faith and her personal beliefs must come before her political beliefs and career.
The Conservatives, traditionally, have close ties to the Israeli government and it is far more difficult for David Cameron and those at the top of his party to speak out more strongly about Israel than others, who have a different policy.
In other words, acting based on her beliefs instead of ulterior lobby interests: strange. Her full letter below:
Dear Prime Minister
For some weeks, in meeting and discussion, I have been open and honest about my views on the conflict in Gaza and our response to it.
My view has been that our policy in relation to the Middle East Peace Process generally but more recently our approach and language during the current crisis in Gaza is morally indefensible, is not in Britain’s national interest and will have a long term detrimental impact on our reputation internationally and domestically.
Particularly as the Minister with responsibility for the United Nations, The International Criminal Court and Human Rights I believe our approach in relation to the current conflict is neither consistent with our values, specifically our commitment to the rule of law and our long history of support for International Justice. In many ways the absence of the experience and expertise of colleagues like Ken Clarke and Dominic Grieve has over the last few weeks become very apparent.
This decision has not been easy. It has been a privilege to serve for 3 years in your Shadow Cabinet and over 4 years in your Cabinet. Introducing you in Blackpool in 2005 as you made your bid for leadership I had the pleasure of being there at the start of the journey and it would have been rewarding to have been there til the end.
The last decade has given me the opportunity to work with some of the best in the Conservative Party and indeed in Government. William Hague was probably one of the finest Foreign Secretaries this country has seen and has been inspirational. He dismantled foreign policy making by sofa government and restored decision making and dignity to the Foreign Office. There is however great unease across the Foreign Office, amongst both Minister and senior officials, in the way recent decisions are being made.
Eric Pickles has supported me tirelessly in our work on combating hate crime. Challenging anti-Semitism and Islamaphobia and the pioneering work of celebration faith in the public sphere. This new found confidence in Government has allowed me to take the very public International lead on religious freedom, specifically on the ever growing crisis of the persecution of Christians. However, early evidence from the Home Office and others shows that the fallout of the current conflict and the potential for the crisis in Gaza and our response to it becoming a basis for radicalisation could have consequences for us for years to come.
From both Eric and William I learnt the art of reconciling passion and idealism with pragmatism and realism, but I always said that long after life in politics I must be able to live with myself for the decisions I took or the decisions I supported. By staying in Government at this time I do not feel I can be sure of that.
It is therefore with regret that I am writing to resign.
You will continue to have my personal support as leader of the Conservative party as you continue to ensure that our Party evolves to meet the challenges we face in Britain today and ensure that the Party is relevant and responsive to all communities that make up today’s Britain.
Yours sincerely
Sayeeda
via Zero Hedge http://ift.tt/1ARfoRB Tyler Durden
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Everyone is watching the Supreme Court to see
whether it will accept the petition challenging the federal
subsidies in the 36 states that refused to set up an exchange,
forcing Uncle Sam to do so. But, notes Reason Foundation Senior
Analyst Shikha Dalmia, regardless of whether this petition wins or
loses, a postponed tsunami of discontent awaits ObamaCare, just
around the time the president exits office.
That’s because the administration postponed implementation of
the more painful aspects of the program till after the president is
safely out of office—partly through the original law and partly by
altering the law through executive fiat.
So the Obamacare wars are going to continue for a while,
throwing into doubt the future of President Obama’s signature
initiative. This is the inevitable result of passing the law with
zero Republican support.
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Russia has been quiet, too quiet, since the EU and US unleashed their latest set of sanctions. However, as military drills and troop build-ups occur on Ukraine’s borders, Reuters reports that Russian Prime Minister Medvedev is considering a significant retaliation, “any unfriendly measures by the EU, including those in the area of air transportation, we’ll be studied and won’t remain without a response.” Russian business daily Vedomosti quoted unnamed sources as saying the foreign and transport ministries were discussing possible action which might force EU airlines into long and costly detours and put them at a disadvantage to Asian rivals by restricting or banning European airlines from flying over Siberia on busy Asian routes. Costs? Over $1.3bn for every months for Lufthansa, BA, and Air France…
The Russian business daily Vedomosti quoted unnamed sources as saying the foreign and transport ministries were discussing possible action which might force EU airlines into long and costly detours and put them at a disadvantage to Asian rivals.
Russia may restrict or ban European airlines from flying over Siberia on busy Asian routes, a newspaper reported on Tuesday, following Western sanctions which have grounded one Russian carrier and a billionaire’s private jet.
This would not be the first time…
At the height of the Cold War, most Western airlines were barred from flying through Russian airspace to Asian cities, and instead had to operate via the Gulf or the U.S. airport of Anchorage, Alaska on the polar route.
Costs could be considerable…
Blocking flights by Western airlines over Siberia would add an average an hour and a half to the travel time, Oleg Panteleev, head of the analytical department of the Aviaport agency told Vedomosti. It will result in higher fuel and labor costs, and more strain on technical equipment.
Vedomosti quoted one source as saying a ban could cost carriers including Lufthansa, British Airways and Air France 1 billion euros ($1.3 billion) over three months. Restrictions would lead to longer flights, higher fuel use and other additional costs.
Lufthansa said it operates about 180 flights a week through Siberian airspace but declined further comment, as did British Airways.
* * *
Though both ministries refused to officially comment, a person close to the Ministry of Foreign Affairs said that “any unfriendly measures by the EU, including those in the area of air transportation, we’ll be studied and won’t remain without a response.”
* * *
How long before Europe breaks away from Washington? And the land-for-gas deal becomes reality?
via Zero Hedge http://ift.tt/1oo0jwW Tyler Durden
All the latest news on the worst Ebola epidemic in history, sourced over the past 24 hours.
via Zero Hedge http://ift.tt/1sqIy69 Tyler Durden
Overnight Media Digest
WSJ
* A rush of newly insured patients using health services has boosted hospital operators’ fortunes but has racked up costs that insurers didn’t anticipate, corporate filings and interviews with executives show. (http://on.wsj.com/1zPE63s)
* Israel and Hamas agreed to a 72-hour cease-fire in Gaza starting Tuesday as Israeli forces were winding down their month-long campaign in the Palestinian territory. The deal followed Israel’s pullout of most of its forces from the Gaza Strip over the weekend. (http://on.wsj.com/1o6bfVL)
* Sand prices are rising and companies are racing to build new mines in South Dakota and other locations as demand intensifies for the silica crystals that energy companies use to frack oil and gas wells. Sand is a key ingredient in items from solar panels to smartphones, but in recent years billions of pounds of it have been poured down wells to help coax more fuel out of the ground. (http://on.wsj.com/1kjHzUa)
* Moody’s Investors Service warned New York officials and investors Monday that the state’s much-improved rating is at risk as the federal government tries to claw back nearly $1.3 billion in Medicaid payments. Moody’s said the potential Medicaid repayment is a “credit negative” for the state. The “repayment would result in an unwelcome drain on the state’s cash balances,” the report said, and future repayments would “pinch the state’s liquidity.” (http://on.wsj.com/1kjIQur)
* The Securities and Exchange Commission said in federal court on Monday that it is seeking up to $750 million in sanctions from Texas entrepreneur Sam Wyly and the estate of his deceased brother, Charles Wyly. (http://on.wsj.com/1qUTafs)
* As regulators try to untangle the financial mess surrounding Espírito Santo International SA, multiple threads lead back to a small Swiss company whose business interests are intermingled with the powerful Portuguese conglomerate. (http://on.wsj.com/1luFfoG)
* A federal investigation into the handling of an anti-corruption commission by New York Governor Andrew Cuomo’s office appears to have damaged the rising Democratic star’s standing at home without hurting his chances at re-election, according to a new poll. (http://on.wsj.com/1zPAePY)
* FedEx Corp and United Parcel Service Inc are increasingly moving their own packages through the U.S. Postal Service, putting pressure on the quasi-governmental agency and raising questions about whether the USPS is charging enough for the service. (http://on.wsj.com/1o9dV48)
* China is using its six-year-old antimonopoly law to put foreign businesses under increasing pressure, a development that experts say will intensify as Beijing seeks greater sway over the prices paid by Chinese companies and consumers. (http://on.wsj.com/1luGc0c)
* LinkedIn Corp said Monday it paid nearly $6 million in back wages and damages to 359 current and former employees who the U.S. Labor Department says weren’t properly paid for overtime worked between February 2012 and February 2014. (http://on.wsj.com/1pUZBsC)
* General Motors Co must turn over documents related to its subprime auto-lending under a subpoena issued by the U.S. Justice Department, the Detroit auto maker disclosed in a regulatory filing Monday. (http://on.wsj.com/1s86AAT)
* France will likely miss its deficit reduction targets due to weaker-than-hoped economic growth and risks the government will fail to implement spending cuts fully, Moody’s Investors Service said Monday. (http://on.wsj.com/WXRHYM)
* Two insurers are teaming up to create health-information exchanges, making the medical records of about nine million plan members available to participating doctors and hospitals. Blue Shield of California and WellPoint Inc’s Anthem Blue Cross said they would spend $80 million to fund the first three years of the California Integrated Data Exchange. The new entity, set to be announced on Tuesday, will be set up as an independent nonprofit organization, though each insurer is appointing a member of its board. (http://on.wsj.com/1xZYsEg)
FT
Governor of the Bank of Portugal Carlos Costa has blamed the former board of Banco Espirito Santo for the troubled lender’s problem, after the country committed to spend 4.9 billion euros ($6.58 billion) to rescue its largest listed bank.
British drugmaker AstraZeneca Chairman Leif Johansson wants to banish ideas popularised by supporters of U.S.-listed Pfizer who claimed he and the company’s board were unaccommodating in the way they handled a takeover approach from the rival firm.
Australia’s Treasury Wine Estates said it will engage in talks with KKR & Co LP after the world’s largest listed winemaker received a revised takeover bid from the private equity firm.
British engineering firm Weir Group fired Bank of America Merrill Lynch as one of its two lead corporate brokers and kept on board Swiss bank UBS, after the former investment bank took on the same role for a rival firm.
Highlighting a widespread industry concern, HSBC Chairman Douglas Flint warned that the fear of punishment for making mistakes was causing employees at Europe’s largest bank to become too risk-averse.
Britain’s competition authorities should keenly investigate the wholesale gas market as they probe the country’s biggest energy suppliers to determine whether the domestic energy sector is sufficiently competitive, said Tim Yeo, the chairman of the parliament’s energy select committee.
NYT
* Federal prosecutors have begun a civil investigation of General Motors Co and other companies’ subprime auto lending practices, focusing on the packaging and selling of questionable loans to investors. In the inquiry, federal prosecutors are looking for potential violations of Financial Institutions Reform Recovery and Enforcement Act. (http://nyti.ms/1o7NCfA)
* Banco Espirito Santo SA is not just battling with financial problems but also legal ones. Portuguese and European prosecutors and regulators are investigating possible accounting fraud, abuse of privileged information and accusations that the bank funneled dubious loans to parts of the Espirito Santo business empire, which includes hotels, hospitals, farms and more.(http://nyti.ms/1tQaceZ)
* The Chinese government warned Microsoft Corp not to interfere with its antitrust investigation, days after officials conducted surprise raids on four of the technology giant’s offices across the country. (http://nyti.ms/1soTDVB)
* Chegg Inc said that it has teamed with the Ingram Content Group, a big book distributor, to handle the business of physically storing and shipping textbooks. The deal is meant to free the company to continue building out its digital operations. (http://nyti.ms/WXIHme)
* McDonald’s Corp said that a scandal over a meat supplier in China was hurting sales in the region and that its global sales forecast for 2014 was “at risk.” The company said in a regulatory filing that there was “significant negative impact” in China, Japan and other affected markets, which make up about 10 percent of McDonald’s revenue. (http://nyti.ms/1soAFx6)
* Google is sponsoring an elite conference this week at a golf resort in Sicily, with a guest list of chief executives, investors and celebrities, all of whom were invited to bring their families. On the agenda are high-minded discussions of global issues – along with relaxation by the Mediterranean Sea. The Google conference projects an aura of exclusivity – its existence has not previously been disclosed. It is called, simply, the Camp. (http://nyti.ms/UXRjYj)
* With Time Warner Inc’s rejection last month of an $80 billion bid by Rupert Murdoch’s 21st Century Fox, the mating ritual had begun, or so it seemed. But Time Warner’s unyielding stance has at least some analysts wondering if an acquisition really is inevitable. (http://nyti.ms/1AQcAUV)
* The Gannett Co Inc is near a deal to buy the 73 percent of Cars.com that it does not already own for $1.8 billion, giving the media company complete control over the online car-sales website. (http://nyti.ms/UPj31s)
* The State of Texas and SpaceX, the technology company led by Elon Musk have announced that the company will build the first commercial site for orbital launches on the state’s southernmost tip. (http://nyti.ms/1zPsYDK)
* Seeking to head off a costly election-year fight over oil and gas drilling that could threaten vulnerable Colorado Democrats, Governor John Hickenlooper said Monday that he had reached a deal to keep two anti fracking measures off November’s ballots. (http://nyti.ms/1pzRNil)
* Warburg Pincus said on Monday that it planned to invest up to $600 million in Zenith Energy, a company that aims to build oil and natural gas terminals abroad. (http://nyti.ms/1kBnppb)
* Fosun International Ltd, the Chinese investment group that likens itself to Warren Buffett’s Berkshire Hathaway Inc, said it was making its first push into the oil and natural gas business, with a $441 million bid for Roc Oil Co Ltd of Australia. (http://nyti.ms/1tOfZBF)
* Shares in the world’s biggest pork producer, WH Group Ltd of China, soared in their trading debut in Hong Kong on Tuesday, signaling renewed appetite among investors for Chinese initial public offerings. WH Group’s sizzling debut on the Hong Kong market came just three months after it scrapped plans for a $5.3 billion share sale. (http://nyti.ms/1mhr9an)
Canada
THE GLOBE AND MAIL
* The Canadian government’s secretive electronic intelligence agency, Communications Security Establishment Canada, is not disclosing how long it can hold onto Canadians’ communications, even though its leaders have said that “firm” time limits are in place to protect privacy. (http://bit.ly/1onyQLX)
* Canadian National Railway Co says it is still negotiating with the Gitxsan First Nation, as the deadline passed to vacate land along the Skeena River in northwestern British Columbia that is claimed by the Gitxsan. (http://bit.ly/1pVnCzH)
Reports in the business section:
* Amid mounting public concern over the link between pesticides and the decline of insect pollinators, the industry group that represents the makers of the chemicals says restricting use of the crop protection would “handcuff” farmers in their battle against insects. (http://bit.ly/UQcpIg)
NATIONAL POST
* An official of the city of Nunavut says a plan to douse Iqaluit’s dump fire, which has been curling northern nostrils for months, has been delayed by the city’s attempt to get someone else to pay for it. The fire has been fouling air with chemicals since May 20. (http://bit.ly/1pVoVhU)
* Smoke from Canada’s wildfires, which have burned vast tracks of forest in British Columbia and the Northwest Territories, has been spotted as far away as Portugal. And its travel is fuelled in part by incredible clouds created by the fires, that act like chimneys funnelling smoke and ash as high as 10 to 15 kilometres into the atmosphere. (http://bit.ly/1kCiJzn)
FINANCIAL POST
* Air Canada says it may resume flights to Venezuela that were suspended in March, if outstanding issues such as the payment of funds from ticket revenues are addressed by the South American country. (http://bit.ly/1zQ7Yg0)
* A boardroom shake-up at Cliffs Natural Resources Inc has raised the likelihood that its international assets will hit the market, creating some intriguing buying opportunities for Canadian miners in their own backyard. These assets include a troubled iron ore mine in Quebec and a huge chromite deposit in Northern Ontario’s “Ring of Fire”. (http://bit.ly/1AQDWKu)
China
CHINA SECURITIES JOURNAL
– State-owned enterprise Aluminium Corp of China (CHALCO) and privately-owned Jinjiang Group (Hangzhou) have entered into a joint venture, as China looks to accelerate mixed ownership reforms.
SHANGHAI SECURITIES NEWS
– New loans issued by China’s “big four” banks, Bank of China Ltd, China Construction Bank Corp, Industrial and Commercial Bank of China Ltd and Agricultural Bank of China Ltd, increased by 210 billion yuan ($33.99 billion) in July. Their deposits fell by about 1.5 trillion yuan, reversing from a 2.2 trillion yuan growth in June.
CHINA BUSINESS NEWS
– The seismic belt of China’s Sichuan-Yunnan Region is currently active, geologist Yang Yong said.
CHINA DAILY
– China’s railway building boom is expected to boost the country’s struggling steel, cement, glass and other heavy industries in the second half of this year.
– More than 4,000 workers in Microsoft Corp’s Nokia division may lose their jobs in the company’s global downsizing plan, China Daily said, citing a person familiar with the situation.
PEOPLE’S DAILY
– China’s economy grew at a “new normal” rate in the first six months of this year, with its former high-speed growth slowing but still maintaining a sustainable rebound, the newspaper said in a commentary. Adapting to these “new normal” conditions will be good for the economy, it said.
Britain
The Times
‘CHARNEY CAME UP CLEAN SO WE INVESTED,’ SAYS INVESTOR LEA
Lyndon Lea, the millionaire polo-playing boss of British private equity group Lion Capital, has defended his decision to invest in American Apparel, the U.S. fashion retailer that is embroiled in a bitter dispute with its founder.
DEMAND FOR HOUSES FUELS BOOM IN BUILDING
House building in Britain is increasing at the fastest rate in more than a decade, creating record numbers of jobs as demand for property continues to soar, according to the Chartered Institute of Purchasing and Supply.
BT SPURNED IN 5 BLN STG BATTLE OF AIRWAVES
BT has been shunned by the government for a lucrative deal to upgrade the way the emergency services communicate during a major incident in a bitter disappointment for the country’s oldest telecoms operator.
The Guardian
EAST COAST MAINLINE PAYS TAXPAYERS 1 BLN STG SPARKING FRESH REPRIVATISATION FURY
Anger is growing over the return of the east coast mainline to private hands after it emerged that it had generated 1 billion pounds for UK taxpayers since 2009.
PENSION EXPERT CALLS FOR TAX-FREE ISAS TO BE MADE LIFETIME SAVINGS ACCOUNTS
Tax-free Isas should be transformed into “lifetime” savings accounts topped up with Treasury cash, according to Michael Johnson, a research fellow at the Centre for Policy Studies think tank.
HELP FOR HOUSING COSTS IS FORCING UP THE UK BENEFITS BILL, WARNS LABOUR
The growing housing benefit bill, particularly for those in work, is responsible for much of the increase in welfare costs, rather than out of work benefits for the idle poor, Labour will say on Tuesday.
The Telegraph
FRANCOIS HOLLANDE’S CUTS LEAVE FRANCE TRAILING BEHIND THE UK, SAYS MOODY’S
Francois Hollande’s efforts to tackle France’s ballooning deficit and kick-start its flagging economy have left the country trailing behind rivals such as the UK, Moody’s has warned.
MET SIGNS 90 MLN STG IT DEAL WITH LOCKHEED-CAPITA-KPMG PARTNERSHIP
Defence group Lockheed Martin, along with out-sourcer Capita and consultancy KPMG, has signed a 17-year, 90 million pound ($152 million) deal to upgrade the Metropolitan Police’s command-and-control system.
Sky News
RAC GEARS UP FOR FLOAT WITH RAKE APPOINTMENT
CBI President Mike Rake is in talks to become chairman of the RAC breakdown recovery service ahead of a potential 2 billion pound stock market listing.
EX-WILLIAM HILL CHIEF BACKS SCOTTISH YES VOTE
The former boss of Britain’s biggest bookmaker, Ralph Topping, will declare his support on Tuesday for an independent Scotland, arguing that pro-union campaigners have been guilty of “political posturing” whose arguments lack economic logic.
Fly On The Wall Pre-market Buzz
ECONOMIC REPORTS
Significant domestic economic reports scheduled for today include:
Markit services PMI for July at 9:45–consensus 60.8
ISM non-manufacturing index for July at 10:00–consensus 56.5
Factory orders for June at 10:00–consensus up 0.6%
ANALYST RESEARCH
Upgrades
CGG SA (CGG) upgraded to Hold from Sell at Canaccord
CTI BioPharma (CTIC) upgraded to Buy from Hold at WallachBeth
Clayton Williams (CWEI) upgraded to Buy from Accumulate at Global Hunter
Comerica (CMA) upgraded to Neutral from Negative at Susquehanna
Fresenius Medical (FMS) upgraded to Buy from Neutral at UBS
Himax (HIMX) upgraded to Buy from Neutral at BofA/Merrill
Kite Realty Trust (KRG) upgraded to Strong Buy from Outperform at Raymond James
MYR Group (MYRG) upgraded to Outperform from Neutral at RW Baird
Mercer (MERC) upgraded to Outperform from Sector Perform at RBC Capital
Mueller Water (MWA) upgraded to Buy from Hold at Brean Capital
Telephone and Data (TDS) upgraded to Strong Buy from Outperform at Raymond James
U.S. Cellular (USM) upgraded to Strong Buy from Outperform at Raymond James
Downgrades
Five9 (FIVN) downgraded to Sector Perform from Outperform at Pacific Crest
ITT Educational (ESI) downgraded to Market Perform from Outperform at William Blair
ITT Educational (ESI) downgraded to Underperform from Neutral at BofA/Merrill
Iliad (ILIAF) downgraded to Neutral from Buy at UBS
Ocwen Financial (OCN) downgraded to Perform from Outperform at Oppenheimer
RetailMeNot (SALE) downgraded to Sector Perform from Outperform at RBC Capital
Tenet (THC) downgraded to Neutral from Positive at Susquehanna
Initiations
Alcobra (ADHD) initiated with an Overweight at Piper Jaffray
ServiceMaster (SERV) initiated with a Buy at Jefferies
ServiceMaster (SERV) initiated with an Outperform at RW Baird
ServiceMaster (SERV) initiated with an Overweight at Piper Jaffray
COMPANY NEWS
Gannett (GCI) to acquire remaining 73% interest in Classified Ventures, which owns Cars.com, from A.H. Belo (AHC) and McClatchy (MNI) for $1.8B
Gannett (GCI) to spin-off publishing business to shareholders
AIG (AIG) agreed to $960M settlement in lawsuit over allegedly misleading investors
Moody’s changed U.K. banking outlook to negative from stable (HSBC, BCS, ING, CS, UBS, LYG, DB, SAN, RBS)
GT Advanced (GTAT), which reported Q2 results, narrowed FY14 guidance and backed its FY16 EPS target, reported that the build-out of the company’s Arizona facility is nearly complete
Chegg (CHGG) formed a strategic alliance with Ingram Content Group
ITT Educational (ESI) CEO Kevin Modany to resign, Eugene Feichtner named COO
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Regeneron (REGN), Cinemark (CNK), Time Inc. (TIME), Akorn (AKRX), Integra LifeSciences (IART), Zebra Technologies (ZBRA), Atlas Pipeline Partners (APL), Marathon Oil (MRO), EPAM Systems (EPAM), Otter Tail (OTTR), Northwest Pipe (NWPX), Bristow Group (BRS), EarthLink (ELNK), Allied Nevada Gold (ANV), TPG Specialty Lending (TSLX), Heritage Insurance (HRTG), ChannelAdvisor (ECOM), Emerald Oil (EOX), Endurance Specialty (ENH), Protective Life (PL), Checkpoint Systems (CKP), Interactive Intelligence (inin), McDermott (MDR), Tenet (THC), Alleghany (Y), Advanced Energy (AEIS), PharmAthene (PIP), Five9 (FIVN), Limelight Networks (LLNW), Concur (CNQR), WageWorks (WAGE), Douglas Dynamics (PLOW), Rudolph Technologies (RTEC), TriNet (TNET), Varonis (VRNS), Comstock Resources (CRK), Tessera (TSRA), Pioneer Natural (PXD), Acura Pharma (ACUR), Nautilus (NLS), Kforce (KFRC), Chegg (CHGG), PetroQuest (PQ), Borderfree (BRDR), AIG (AIG), RigNet (RNET), Sykes Enterprises (SYKE), Argo Group (AGII)
Companies that missed consensus earnings expectations include:
Northwest Natural Gas (NWN), Allot Communications (ALLT), Northern Tier (NTI), Western Refining Logistics (WNRL), Western Refining (WNR), Vantage Drilling (VTG), Endeavour (END), Landauer (LDR), Landauer (LDR), Nortek (NTK), Mid-Con Energy (MCEP), Vectren (VVC), Willbros Group (WG), American Capital Senior Floating (ACSF), Dresser-Rand (DRC), Albany International (AIN), FairPoint (FRP), LeapFrog (LF), Vanguard Natural (VNR), PHH Corp. (PHH), Cubic (CUB), Approach Resources (AREX), ONE Gas (OGS), GT Advanced (GTAT), RealPage (RP), Carmike Cinemas (CKEC), Greenlight Capital (GLRE), Orion Energy (OESX), Imprivata (IMPR), CTI BioPharma (CTIC), Cutera (CUTR), RetailMeNot (SALE), Wesco Aircraft (WAIR)
Companies that matched consensus earnings expectations include:
Sucampo (SCMP), Hi-Crush Partners (HCLP), Mazor Robotics (MZOR), MDU Resources (MDU), Rosetta Resources (ROSE), Sun Hydraulics (SNHY), Mueller Water (MWA), Solar Capital (SLRC), Texas Roadhouse (TXRH), Kaman (KAMN), Kona Grill (KONA), MTS Systems (MTSC), Axcelis (ACLS)
NEWSPAPERS/WEBSITES
Fox (FOXA) anticipated to press for Time Warner (TWX) agreement Wednesday, Reuters reports
Triangle Petroleum (TPLM) seeks adviser for potential sale of unit, Bloomberg reports
Pandora (P) mulls talk radio to attract more car listeners, Bloomberg reports
Verizon (VZ) defends policy of slowing data speeds for some customers, Re/code reports
Newly insured patients boosting income for hospital operators, WSJ reports
Berkshire Hathaway (BRK.A) looks like a buy, Barron’s says
Investors should hold off on Michael Kors (KORS), Barron’s says
SYNDICATE
Berry Plastics (BERY) files to sell 14.73M shares for holders
Extended Stay America (STAY) files to sell 21M paired shares for holders
Physicians Realty Trust (DOC) files to sell 4.52M shares for holders
via Zero Hedge http://ift.tt/1oo0msx Tyler Durden
It is unclear how much of this morning’s momentum-busting weakness in futures is the result of China’s horrendous Service PMI, which as we reported last night dropped to the lowest print on record at the contraction borderline, but whatever low volume levitation was launched by the market after Europe’s close yesterday may have fizzled out if only until Europe close (there is no POMO today). Still, futures may have been helped by yet another batch of worse than expected European data, namely the final Eurozone PMI prints, which in turn sent the EURUSD to day lows and the offsetting carry favorite USDJPY to highs, helping offset futures weakness. Because in the New Normal there is nothing like a little bad macro data to goose the BTFATH algos…
Speaking of the final European July PMI, here is what was reported a few hours ago, via Goldman: July Euro area Final Composite PMI came in at 53.8, 0.2pt weaker than the Flash estimate. Relative to June, the Composite PMI increased by 0.9pt. The country breakdown showed improvements in Germany, France and Spain, but a decline in Italy.
The Final manufacturing PMI (released last Friday) came in 0.1pt lower than the Flash estimate. Today’s data showed that the Final Services PMI printed 0.2pt below the Flash. The July data showed that the Manufacturing PMI remained stable at 51.8 for the month. In contrast, the Services PMI rose 1.3pt to 54.2. The Manufacturing PMI rose above the Services PMI in late 2013, but this relative outperformance has reversed of late (Chart 1).
Today’s data showed differing developments in Italy and Spain. Following June’s robust gain, the Italian Composite PMI fell 1.1pt in July to 53.1, as both the Manufacturing and Services PMI eased around 1pt. The Spanish Composite PMI rose 0.5pt to 55.7 in July: the 0.7pt decline in the Manufacturing subcomponent was more than offset by a robust (1.4pt) increase in the Services PMI. Overall, both Spanish and Italian Composite PMIs remain high relative to historical standards (Chart 2). At 53.8, the Euro area PMI is consistent with growth of around +0.5%/+0.6%qoq in early Q3, broadly similar to the Q2 average. The early reading of our Current Activity Indicator (CAI) for July points to a rate of expansion of around 1.3%, slightly below the Q2 average.
Aside from the PMI data, European equities benefited from strong earnings, with outperformance in the benchmark CAC and DAX indices after Credit Agricole, BMW and Deutsche Post reported better-than-expected metrics. Furthermore, M&A news buoyed Vivendi as Telefonica tabled a bid for the Co.’s Brazilian GVT unit, lessening the likelihood of an offer for Telecom Italia’s TIM Brazil unit. As a result, Telecom Italia shares were halted limit down halfway through the trading day. 17 out of 19 Stoxx Europe 600 sectors rise; chemicals, media outperform, telcos, travel & leisure underperform. 73.2% of Stoxx 600 members gain, 24.5% decline. Eurostoxx 50 +0.5%, FTSE 100 +0.5%, CAC 40 +0.6%, DAX +0.6%, IBEX +0.2%, FTSEMIB -0.4%, SMI +0.9%
Turning to Asia, the Chinese data has sent the AUD (-0.17%) and Copper (-0.2%) a touch lower overnight. In Japan, Reuters is reporting that BOJ officials are concerned about increasing signs of weakness in the Japanese economy following a recent sales tax increase. The article says that the central bank’s Board will discuss at their policy meeting this week whether to downgrade their outlook for exports and industrial production. This comes after a number of Street forecasters have downgraded their Japan Q2 GDP growth estimates. In EM Asia, Indonesia has proposed limiting the amount of government-subsidised fuel to the public, which is expected to benefit the government’s fiscal position. The IDR is 0.3% stronger against the greenback today. The RBA has kept policy unchanged at today’s meeting. Asian stocks fall with the Sensex outperforming and the Nikkei underperforming. MSCI Asia Pacific down 0.6% to 147. Nikkei 225 down 1%, Hang Seng up 0.2%, Kospi down 0.7%, Shanghai Composite down 0.2%, ASX down 0.4%, Sensex up 0.7%
Staying in Asia, Bloomberg is reporting that the HK Monetary Authority has again intervened in the FX market to defend the USDHKD peg after recent local currency strength. The HKMA bought $925m yesterday, adding to the $8.4bn it purchased in July. Bloomberg is saying that some Russian companies are converting cash holdings to HKD in case of a further development of tensions between Russia and the West. Apart from a recent inflow of Russian cash, the article also notes that expectations of an improvement in Chinese growth and local corporate activity have been driving up demand for HKD.
US stock futures trade flat as markets await earnings from Walt Disney, CVS Caremark and Emerson Electric.
Looking at the day ahead, the rest of the global service PMIs and ISMs are the main highlights on the data docket. With the service sector’s importance to the overall employment outlook, today’s US non-manufacturing ISM will be closely followed with a Street consensus of 56.5. Euroarea retail sales for June will be released this morning. US factory orders round out the data docket. The European corporate reporting calendar rolls on with updates from BMW and InterContinental followed by UniCredit SpA. About 5% of BMW’s revenues are exposed to Russia according to the WSJ – so will the company join the growing chorus of European corporates warning about the effect of sanctions on revenue?
Market Wrap
Bulletin Headline Summary from Bloomberg and RanSquawk
US Event Calendar
ASIAN HEADLINES
Asia-Pacific equities closed lower (Nikkei 225 -1.0%, Shanghai Composite -0.15%) as China’s July HSBC Services PMI fell to the lowest rate on record, indicating that the Chinese services sector failed to grow at all for the first time in nine years. Japanese markets were led lower by Fast Retailing (the largest weighted stock in the Nikkei 225) after domestic Uniqlo sales posted their first decline in 9 months.
FIXED INCOME
After UK PMIs beat expectations (59.1 vs. Exp. 58.0), UK gilts are seen underperforming, dragging German bund futures even lower after European fixed income products had already sustained selling pressure after the open on the back of mixed EU PMIs, stronger equities and ahead of supply from Germany tomorrow.
EQUITIES
Equities benefited from strong earnings, with outperformance in the benchmark CAC and DAX indices after Credit Agricole, BMW and Deutsche Post reported better-than-expected metrics. Furthermore, M&A news buoyed Vivendi as Telefonica tabled a bid for the Co.’s Brazilian GVT unit, lessening the likelihood of an offer for Telecom Italia’s TIM Brazil unit. As a result, Telecom Italia shares were halted limit down halfway through the trading day.
US stock futures trade flat as markets await earnings from Walt Disney, CVS Caremark and Emerson Electric.
FX
GBP outperformed its peers, following the release of better than expected UK Services PMI which came in at its highest level this year, together with somewhat mixed EU based PMIs, which also sent EUR/USD below 1.3400 level. Elsewhere, AUD/USD recovered off the lowest levels of the session following the release of mixed Australian and weak Chinese macroeconomic data, as the RBA left it benchmark rate unchanged at 2.5% and retained its neutral tone.
COMMODITIES
Gold has seen a bid tone in European trade, which originated in Asia, after the metal reached lows yesterday as geo-political concerns regarding Israel abated, increasing physical demand from east Asia.
WTI crude futures trade up USD 0.10 at USD 98.40, after snapping their 5-day decline during yesterday’s session and ahead of today’s API inventory report due at 2135BST/1535CDT
* * *
DB’s Jim Reid concludes the overnight recap
We wake this morning to a pretty bad HSBC Chinese services PMI which may take the edge off the restored calm. The number printed significantly below last month’s reading (50.0 vs 53.1). Put in context, the print of 50.0 is the lowest since the series began in November 2005 and the talk is that the decline reflects a property slowdown in many cities. So there may be some disappointment this morning in markets but it may be cushioned by the likely further stabilisation of global bond yields.
Back to yesterday, there was no new news on the US economy, improvements in the geopolitical situation and a sigh of relief that the BES situation has come to a head even if sub bondholders and equity holders are losing out. As we discussed yesterday there was clearly going to be relief that senior bondholders escaped somewhat with bonds over 10 points higher yesterday and back above par. This is important for the sector as the overall situation was big enough to potentially cause widespread Euro funding fears if senior bondholders were punished.
The lessening of funding fears underpinned the outperformance of European senior financial credit yesterday. iTraxx Fin Senior rallied more than three basis points to 73bp, which was a decent achievement on a day when the European Main index closed virtually unchanged at around 67bp. The spread between the two has narrowed to just under 6bp – the tightest spread since July 7th which was just two days before Banque Privee Espirito Santo disclosed that ESI had missed repayment dates on some debt sold to its clients.
Interestingly European bank equities (+0.47%) were one of the best performing sectors yesterday in the context of a 0.23% fall in the Stoxx600. The news also helped Portuguese bond yields which rallied 7bp, benefiting other peripherals including Spain (-6bp) and Italy (-6bp). The S&P500 (+0.72%) staged a fairly impressive intraday recovery from the early lows, helped by the strong performance of market-heavyweight Berkshire Hathaway (+2.8%) after its recent earnings announcement and the late day news of a temporary truce in Gaza. An Egyptian plan for a 72 hour truce between Israeli and Hamas forces was agreed late yesterday and came into effect today at 0500 GMT. Israeli and Palestinian authorities have also reportedly agreed to talks in Cairo aimed at securing a longer term ceasefire agreement. Reuters is reporting that Israeli troops have destroyed the last Hamas built tunnel from Gaza into Israeli territory, providing a glimpse of hope that “Operation Protective Edge” may be drawing to a close.
US high yield enjoyed a relief rally on Monday, aided by last Friday’s benign non-farm payrolls and the relative stability of US rates (10yr yield -1bp to 2.48%). Indeed, the CDX High Yield index posted a gain of three-quarters of a point, which was its best performance since May 22nd and the iBoxx USD Liquid High Yield index rallied 8bp in yield terms to 5.90%. Over the past month, the latter has sold off by just under 100bp in yield terms, which leaves the index at pretty much flat on the year. We suspect that this repricing of risk is a welcome development at the Fed who has warned repeatedly about the froth in the lower-rated parts of the credit market in recent months.
With all the recent focus on HY outflows, especially from the ETF sector, markets may take some comfort from the latest daily fund flow data for the iShares iBoxx HY Corporate Bond ETF. On Monday the ETF recorded its first daily inflow in almost four week (July 7th). Though the amount of inflows yesterday was relatively modest at +$129m, it’s the largest since May 30th. It’s still clearly one days worth of data, but perhaps this represents the start of more balanced fund flows following a sustained month of withdrawals, or perhaps valuations are now more balanced with yields higher and positioning lighter relative to four weeks ago. The other large HY ETF, the SPDR Barclays HY Bond ETF, recorded a $81m outflow yesterday though which was its fifth consecutive daily withdrawal.
On a related note, the Fed’s quarterly loan officer survey released yesterday suggested a further easing in lending standards across various types of borrowing. Nearly one in four U.S. banks said they had eased mortgage-lending standards for borrowers with strong credit during the second quarter, the largest such movement by lenders since before the financial crisis. The survey of 75 domestic and 23 foreign banks operating in the U.S. also showed that banks are continuing to ease standards for various commercial and industrial loans.
Turning to Asia, the Chinese data has sent the AUD (-0.17%) and Copper (-0.2%) a touch lower overnight. In Japan, Reuters is reporting that BOJ officials are concerned about increasing signs of weakness in the Japanese economy following a recent sales tax increase. The article says that the central bank’s Board will discuss at their policy meeting this week whether to downgrade their outlook for exports and industrial production. This comes after a number of Street forecasters have downgraded their Japan Q2 GDP growth estimates. In EM Asia, Indonesia has proposed limiting the amount of government-subsidised fuel to the public, which is expected to benefit the government’s fiscal position. The IDR is 0.3% stronger against the greenback today. The RBA has kept policy unchanged at today’s meeting.
Staying in Asia, Bloomberg is reporting that the HK Monetary Authority has again intervened in the FX market to defend the USDHKD peg after recent local currency strength. The HKMA bought $925m yesterday, adding to the $8.4bn it purchased in July. Bloomberg is saying that some Russian companies are converting cash holdings to HKD in case of a further development of tensions between Russia and the West. Apart from a recent inflow of Russian cash, the article also notes that expectations of an improvement in Chinese growth and local corporate activity have been driving up demand for HKD.
Looking at the day ahead, the rest of the global service PMIs and ISMs are the main highlights on the data docket. With the service sector’s importance to the overall employment outlook, today’s US non-manufacturing ISM will be closely followed. DB is calling for a print of 56.0, slightly below the Street consensus of 56.5. Euroarea retail sales for June will be released this morning. US factory orders round out the data docket. The European corporate reporting calendar rolls on with updates from BMW and InterContinental due as we go to print, followed by UniCredit SpA. About 5% of BMW’s revenues are exposed to Russia according to the WSJ – so will the company join the growing chorus of European corporates warning about the effect of sanctions on revenue?
via Zero Hedge http://ift.tt/WYDfj6 Tyler Durden