Category: zerohedge

In a case of supreme poetic justice, the SEC probe into Valeant which was reported on Monday and which led to a 20% plunge in the price the company’s shares and resulted in Pershing Square’s -19.9% performance through the end of February, was started by Valeant itself following its request of an SEC investigation into short-seller Citron’s claims which made the rounds last fall, and which were among the numerous catalysts that precipitated the historic drop in the price of VRX stock.

As Reuters reports, the regulatory probe of Valeant Pharmaceuticals International, disclosed by the company on Monday, is focused on the drugmaker’s relationship with specialty pharmacy Philidor RX Services and was triggered by Valeant’s own request that regulators investigate a short seller’s allegations, people familiar with the matter said.

Pearson said the SEC review was a continuation of an investigation, requested by Valeant, of a short seller that raised questions about Valeant’s business model and ethics, the people said.

 

In October, Valeant invited the regulator to investigate what it called “completely untrue” allegations from Andrew Left, a short seller and founder of Citron Research, that Valeant used its relationship with Philidor as part of an effort to book false revenues.

 

The SEC probe that resulted has placed focus on Philidor but has also looked into other areas of Valeant’s operations, the people said.

As Reuters adds, this is separate from an existing investigation into Salix Pharmaceuticals, which was purchased by Valeant last year. Ironically, it was none other than Jim Cramer who one year ago said “Valeant’s Not Done Going Higher, Buy on Salix Acquisition.”

In that matter, the SEC is primarily focused on whether the former executives misled investors about inventory levels for certain key drugs.

Reuters’ report is based on private conversations that Michael Pearson has had with analysts, which some have suggested may be a violation of Reg-FD: “Some of the people interview by Reuters said that Valeant Chief Executive Michael Pearson described the Philidor link to some brokerage analysts during one-on-one conversations on Monday and Tuesday. “

Valeant told analysts it planned on revealing the SEC investigation in its 2015 annual 10-K report, which has not yet been filed after being delayed by the company, the people said.

As a reminder, just last week Valeant said that Philidor relationship which would lead to the restatement of results, would have a nominal effect on the compnay’s bottom line.

As of this moment the SEC appears to disagree, but the best explanation of this snafu comes from the Twitter account of @JeopardyStocks which summarizes the poetic irony as follows:

“What is: Valeant?” $VRX http://pic.twitter.com/Mld2yypX67

— Jeopardy! Stocks (@JeopardyStocks) March 2, 2016

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

Bail-In Regulation To Blame For “Bank Turmoil” In EU?

The Financial Times recently looked at how the new bail-in resolutions in the EU, U.S. and most of the western world and asked whether they may be leading to “bank turmoil” and increased concerns about banks and the banking sector in the EU. As is typically the case with coverage of the bail-in regime, the important article was little noticed.

Despite this lack of coverage, we believe bail-ins remain one of the greatest financial risks to investors, savers and indeed companies today. Yet they remain the most poorly covered financial risk and remain largely ignored by financial advisers, brokers and not surprisingly banks.

Bail-Ins – Key Considerations

Indeed, media internationally has ignored this growing and substantial financial risk and the risk that it poses to the deposits of savers, investors and companies and indeed to our respective economies. In a world already beset with huge deflationary pressures, bail-ins and confiscating deposits from savers including the capital of companies would be extremely deflationary and would likely contribute to serious recessions and potentially another global depression.

This is something we warned of when we first conducted our extensive research on the developing bail-in regimes in November 2013.

It is interesting and encouraging that the new government in Italy is aware of the risks of bail-ins and looks prepared to go against the new international deposit confiscation rules. Hopefully, it may at long last engender a real debate about the pros and significant cons of bail-ins and their risks and ramifications and contribute to people being prepared for bail-ins.

From the FT:

When Brussels last month trumpeted the launch of its new rule book on failing banks, it could hardly have imagined the political backlash would come so swiftly, or that the regime could be blamed for so much market turmoil.

At the time they were agreed in 2014, these so-called “bail-in” reforms secured unanimous backing from EU governments, which wanted to shift the burden of bank rescues away from taxpayers and on to investors and depositors. 

But the nascent regime is now under sustained attack from Italy for being ill-thought through, rushed and destabilising. Some analysts also cited it as one of several factors driving this week’s volatility in European bank stocks. A messy round of forced bondholder writedowns at Portugal’s Novo Banco last month heightened creditor jumpiness.

With European bank shares facing another tempestuous day on Thursday, these issues will be on the agenda of eurozone finance ministers at their regular Brussels gathering.

The full FT article is worth a read and can be accessed here: ‘Bank Turmoil: Are Europe’s New Bail-In Rules To Blame?’
 

LBMA Gold Prices
02 Mar: USD 1,229.35, EUR 1,131.53 and GBP 881.54 per ounce
01 Mar: USD 1,240.00, EUR 1,141.70 and GBP 886.09 per ounce
29 Feb: USD 1,234.15, EUR 1,131.46 and GBP 890.95 per ounce
26 Feb: USD 1,231.00, EUR 1117.58 and GBP 878.87 per ounce
25 Feb: USD 1,235.40, EUR 1,121.41 and GBP 887.10 per ounce

Gold and Silver News and Commentary
Gold extends losses on robust U.S. data, higher stocks – Reuters
Gold holds steady in Asia as markets assess likely next Fed move – Investing.com
Gold ends lower as stocks rally after upbeat economic data – Marketwatch
Last Time Gold ETF Flows Were Higher QE Was Just Starting – Bloomberg
Gold, Silver Soar in February; US Mint Bullion Coin Sales Strong – Coin News

Best And Worst Performing Assets Of February And 2016 – Zero Hedge
How to Prepare Your Investments for a Market Crash – Telegraph
As Mervyn King warns that the project is doomed, is it time for the Eurozone to be broken up? – City AM
Classic Video: Margaret Thatcher On The Euro And “Federal Europe” In 1990 – Dollar Collapse
How Much More Loopy Can Financial System Get? – Money Week
Read more here

 

‘7 Real Risks To Your Gold Ownership’ – New Must Read Gold Guide Here

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Via Dana Lyons' Tumblr,

After resolving its former “most interesting” chart status with a massive breakdown in January, Brazil’s Bovespa is back testing that breakdown level in an equally interesting development.

On September 4 of last year, we labeled the Brazilian Bovespa stock index “The Most Interesting Chart In The World”. You’ll recall that, at the time, global equity markets were knee deep in one of those “markets in turmoil” phases, to borrow a term from alarmist financial television. Thus, to be granted such a title, the Bovespa must have been a real doozy. Well, we’re chart geeks, but we thought it was special.

Specifically, at the time the Bovespa was involved in an epic bull/bear battle, pitting the following chart forces against one another:

• In The Bull Corner: the 61.8% Fibonacci Retracement of the Bovespa’s 2008-2010 rally around 46,150, which the index held a half dozen times over the prior half decade.
• In The Bear Corner: a potential massive head-&-shoulder pattern formed over the prior 2 years, with the the 61.8% Fibonacci touches serving as the neckline.

Which scenario would be victorious in this epic, and interesting, battle? We had no idea. As I told many people: “I’m confident it is going to move BIG…I just don’t know which way yet.” The irony was that, in the post’s aftermath, the Bovespa trodded along the line of bull/bear demarcation for nearly 4 months, refusing to reveal its grand decision. Thus, for 4 months, the Bovespa transformed into essentially the least interesting chart in the world.

Then things got interesting again. On the first day of 2016, the Bovespa broke, and broke hard as we suspected it eventually would. It lost 3% on that first day and wouldn’t look back. By 3 weeks in, it was down over 14% for the year. Things looked hopeless for the Bovespa.

Then another interesting thing happened. The index bounced – and has continued to bounce up through today’s action. Now, just about 5 weeks after hitting its -14% YTD rock bottom, the Brazilian Bovespa is actually up for the year.

This is where it gets “most interesting chart in the world” type of interesting again. The Bovespa is now testing the lower bounds of its massive head-&-shoulders/Fibonacci breakdown level that marked the chart’s “most interesting” status in the first place.

 

 

Here it is up close:

 

 

What makes the chart so interesting now? It is essentially setting up a similar scenario as in September, i.e., a likely very large move – in either direction. The previous setup involved either a substantial up-move off of massive, multi-year support – or a substantial drop should that support fail to hold, with the added pressure of a multi-year head-&-shoulders pattern. Well, the head-&-shoulders scenario won out, as we mentioned, leading to that immediate 14% plunge to begin the year.

Now, the scenario revolves around the confirmation, or rejection, of that massive head-&-shoulders breakdown. Either of the 2 outcomes could, again, have monumental consequences and entail substantial moves as a result.

A confirmation of the breakdown (i.e,, this area acts as resistance) should lead to another large decline, and very likely lower lows than those seen in January. Conversely, a rejection of the breakdown (i.e., price rises above the breakdown zone), would constitute a false breakdown. False breakdowns often lead to up moves every bit as powerful as the potential breakdown would have been. Considering the magnitude of support and the scale of the head-&-shoulders formation that was broken, should it turn out to be a false breakdown, the potential upside probably could not be overstated.

So what level should we key on to instruct us as to which scenario wins? No level should ever be taken as gospel, so we are considering a range of potential levels that could encompass the Bovespa’s “test” of its breakdown. That range would essentially extend from former lateral support around 44,000, which the index is testing today, up to the diagonal extension of the hypothetical head-&-shoulders neckline, currently just above 47,000. The reaction at this area could set the tone of the Brazilian stock market for the next several months, or possibly even years to come.

We don’t always focus on Brazilian stocks; but when we do, we prefer dos posiblementes grandes.

*  *  *

More from Dana Lyons, JLFMI and My401kPro.

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And the CapEx hits just keep on coming.

Two weeks after Goldman reported something troubling, namely that there is a massive gap of nearly 20% between sellside CapEx estimate for what US oil companies will spend on CapEx and what implied guidance suggests as shown in the table below…

… moments ago Rex Tillerson, the CEO of world’s formerly biggest by market cap company, Exxon, confirmed that the great CapEx drought of 2016 will be a definite reality, one which will subtract billions from U.S. 2016 GDP in the form of fixed investment, also known as Capital Expenditures, when it announced that it now expected full year 2016 capex to decline by 25% from 2015 to just $23 billion.

To be sure, Tillerson tried to spin the attempt to preserve some $7 billion in cash in a positive light:

“We remain steadfast in our mission to create superior long-term shareholder value,” Tillerson said at the company’s annual analyst meeting at the New York Stock Exchange. “We have the financial flexibility to pursue attractive opportunities and can adjust our investment program based on market demand fundamentals.”

The confirmation:

ExxonMobil anticipates capital spending of $23 billion in 2016, down 25 percent from 2015. The company continues to selectively advance its investment portfolio, building upon attractive longer-term opportunities.

 

“We are focused on maximizing benefits across the energy value chain,” Tillerson said. The company captures unique value from its diverse, high-quality resource base from exploration, development and production all the way through to the fuels, lubricants and petrochemical products used by consumers.

Among the other noted highlights, is that “ExxonMobil generated $33 billion of cash flow from operations and asset sales and $6.5 billion of free cash flow in 2015.” Of course, the company wants to keep generating billions in cash, hence the need for dramatic capex cuts.

Which brings us to the one point which Goldman made in mid-February, looking at the odd discrepancy between plunging capex and barely declining oil production, bringing up the question just how much more CapEx can the majors cut without suffering material oil production, and thus revenue, hits?

We will find out soon, but not before the U.S. economy is hit with the double whammy of hundreds of thousands of well-paid and now laid off energy workers contributing nothing to consumption, and the ongoing collapse in CapEx by virtually every energy company, a drop which according to some will subtract up to $100 billion in fixed investment from US 2016 GDP.

We wonder how many seasonal adjustments the US BEA will need to cover up that latest recessionary indicator.

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

A massive 8.2 magnitude earthquake has just shaken Indonesia. 

The country has issued an early tsunami warning.

Here’s the data from the USGS:

 

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After surprisingly jumping in December, ADP’s employment report fell back to a more normal 200k ish level in January and now in Feb it rises once again to 214k (from 193k in Jan – revised down from 205k – and better than expectations of 190k). Manufacturing jobs, according to ADP remain relatively flat for the last year (down 9k in Feb – the second largest drop in 5 years), despite a collapse in ISM Manufacturing’s Employmet index. Job gains surged across all company sizes and Mark Zandi is cock-a-hoop: “America’s job machine is in high gear.”

Dear Mark Zandi, please explain this:

 

The numeric breakdown:

 

As ADP reports, Goods-producing employment rose by 5,000 jobs in February, just over a quarter of January’s upwardly revised 19,000. The construction industry added 27,000 jobs, which was slightly above January’s upwardly revised 26,000. Meanwhile, manufacturing lost 9,000 jobs, the second largest drop in five years.

Service-providing employment rose by 208,000 jobs in February, up from a downwardly revised 174,000 in January. The ADP National Employment Report indicates that professional/business services contributed 59,000 jobs, up sharply from January’s downwardly revised 38,000. Trade/transportation/utilities grew by 20,000, down from a downwardly revised 26,000 the previous month. The 8,000 new jobs added in financial activities were the least in that sector since August 2015.

“Large businesses showed surprisingly strong job gains in February, despite the continuation of economic trends that negatively impact big companies like turmoil in international markets and a strengthening dollar,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “The gains were mostly driven by the service sector which accounted for almost all the jobs added by large businesses.”

Mark Zandi, chief economist of Moody’s Analytics, said,

“Despite the turmoil in the global financial markets, the American job machine remains in high gear. Energy and manufacturing remain blemishes on the job market, but other sectors continue to add strongly to payrolls. Full-employment is fast approaching.”

Some further detail:

Change in Nonfarm Private Employment

 

Change in Total Nonfarm Private Employment

 

Change in Total Nonfarm Private Employment by Company Size

 

Change in Total Nonfarm Private Employment by Selected Industry

 

Finally here is the full breakdown:

Great news!! March rate hike anyone?

Charts: Bloomberg

via Zero Hedge http://ift.tt/1Lx5Nb3 Tyler Durden

Yesterday, there was some confusion as algos and humans tried to explain to themselves why they are buying at such a furious pace that yesterday’s torrid surge resulted in the biggest March 1 S&P500 surge in history. The truth is that there should be no confusion: as we previews, and explained, first thing yesterday, “Gartman Is Again “Selling The Markets Short” Just Two Days After Turning Bullish.”

This, as we also said, followed a note just two days prior which we correctly forecast, put the “rally in jeopardy“, when Gartman decided to turn long on Friday in the process halting the market’s momentum, and leading to two days of declines.

And then, around 3pm yesterday, we reported the scariest rumor any bull could hear: Gartman was about to flop bullish again:

Rumor Gartman turning bullish again

— zerohedge (@zerohedge) March 1, 2016

Sure enough, it was true, and in such spectacular fashion that the following excerpt from his overnight commentary is nothing short of sheer poetry.

SHARE PRICES HAVE RISEN BY THEIR HISTORICAL MOST and we were stunningly, shockingly, stupidly, and utterly wrong in having sold the market short yesterday. We cannot ever have recalled making a singularly worse trade in our four decades of being involved in markets, but we stepped in the front of a reserve cutting freight train and the only thing to do when that happens is to run to the sidelines as soon as one can; admit one’s error and live to fight another day. We begin this morning then by saying without equivocation that we must needs cover the trade we put on yesterday having sold the US, the Japanese and the European stock markets short. What nonsense was that? How utterly wrong? How badly timed can a trade be?

 

In our retirement funds here at TGL we moved swiftly to cover our short positions and we moved just as swiftly to buy what we could, when we could and where we could. We covered our derivatives positions and we urge everyone to do the same… immediately. We held on to our long positions in tanker stocks and we actually bought some of the oldest of the old guard dividend paying stocks mid-day just  because the market was loudly telling us that we had no choice but to do so.

There was a little something for everyone, including the gold bulls:

Further, as noted above, because we respect “reversals” in equities and commodities, the fact that the shares of the largest gold mining operation in North America opened higher and then closed lower upon the day, taking out and closing below the previous day’s lows… an “outside” reversal as they are known… we ran to cover our US dollar denominated gold position mid-day and we shall argue strongly that those still long of gold in US dollar terms, as noted above, should do the same.

Or the opposite, if they actually want to make money.

But the punchline is that despite being short into the biggest March 1 rally in history, and being long gold miners, his daily loss was just 1%. Recall from yesterday:

On balance we’ve done very little in the past few days and we are up a bit more than 10%… 10.3% to be precise…for the year-to-date.

And this is where he is today:

As of the close of trading last evening, we are up 9.3% for the year-to-date…

Ah, math. As for Gartman’s latest reco, sorry bulls.

via Zero Hedge http://ift.tt/1OPb095 Tyler Durden

Following weeks of fertile speculation whether it will or won’t file for bankruptcy, this morning Colorado-based Sports Authority, whose name graces the home stadium to the Super Bowl champion Denver Broncos, put all doubts to rest when it filed Chapter 11 in Delaware bankruptcy court (Case 16-10527) listing $0-$50,000 in assets and between $1 and 10 billion in liabilities in its bankruptcy filing, adding that it will close as many as 140 of its 463 locations. As part of its bankruptcy process, the bankrupt retailer reported that it has access to a $595 million in debtor in possession financing loan.

In its summary of the company’s recent, troubled and overlevered history Bloomberg writes that Sports Authority has fallen far since a $1.3 billion buyout in 2006 piled it with debt. “In 2006, the chain was even with Dick’s Sporting Goods Inc. in sales. Today, Dick’s has hundreds more locations and takes in almost twice as much per store, making it the U.S. leader in selling athletic gear, while Englewood, Colorado-based Sports Authority’s debt load has hampered its ability to expand or innovate.”

“We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry,” said Michael E. Foss, chief executive officer of Sports Authority. “We intend to use the Chapter 11 process to streamline and strengthen our business both operationally and financially so that we have the financial flexibility to continue to make necessary investments in our operations.”

In many ways this outcome was inevitable: in 2015, sales at U.S. retailers were the weakest since 2009, according to the U.S. Commerce Department. But as big-box giants and online merchants encroached on clothing stores and consumer electronics chains, sports were one of the few healthy areas. And, as BLoomberg adds, while companies including Target Corp. and Gap Inc. shored up sales by expanding their fitness offerings, American Apparel Inc. and Quiksilver Inc. last year all sought creditor protection.

Sports Authority has about 200 fewer stores than Dick’s. The company said that in addition to the retail store closures, distribution centers in Denver and Chicago will be shut down or sold. This also means a big victory for Dick’s which will be faced with far less local competition, unless of course shoppers head straight to Amazon. 

In any event, straddled with too much debt to manage after the buyout, Sports Authority hasn’t been able to make the kind of improvements seen at its larger rival.

One area where it’s lagged is presentation, according to Joe Feldman, an analyst at Telsey Advisory Group. Dick’s excels in layouts and displays and has partnered with manufacturers including Nike Inc. and Under Armour Inc., which operate in-store shops. Those improvements have helped Dick’s pull in about $10 million a year in sales from the average store, while Sports Authority collects about $5.75 million, according to Steven Ruggiero, a credit analyst at RW Pressprich & Co.

We anticipate the bankruptcy filing will further weaken those commercial real estate loans and CMBS issues for locations where SA was a tennant as its rent payments will now cease; we also expect many other retailers to follow suit as the troubled US consumer has far less discretionary cash to spend courtesy of soaring health insurance premiums and record asking rents, or as the Fed calls it, deflation.

The full bankruptcy filling is below.

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

• Trump, Clinton capture key wins on Super Tuesday (Reuters)
• Hillary Clinton Triumphs in Delegate-Rich Super Tuesday States (WSJ)
• S&P 500 Futures Follow Oil Lower, Erase Gain After Super Tuesday (BBG)
• Oil below $37 as U.S. inventory rise counters output freeze plan (Reuters)
• Wall Street’s big short: President Donald J. Trump (Reuters)
• Ex-Chesapeake CEO McClendon Indicted Over Lease Bid Rigging (BBG)
• Port Sale Highlights Western Australia’s Sinking Fortunes (WSJ)
• Texas abortion case goes before shorthanded U.S. Supreme Court (Reuters)
• Valeant CEO Races to Repair Drug Maker’s Reputation (WSJ)
• The Rise and Fall of Commodities Hedge Fund King Willem Kooyker (BBG)
• U.S. Shoppers Heeding Loonie’s Call Flock to Canada’s Websites (BBG)
• Chinese Hedge-Fund Firms Head for Hong Kong (WSJ)
• Mexicans Are Disappearing From Texas in Latest Twist on Oil Bust (BBG)
• Crime Wave Lashes Venezuela’s Already Battered Farms (WSJ)
• Molotovs and Death Threats: Russian Debt Collectors Go Medieval (BBG)
• Ranks of World’s Wealthiest Thin Most Since the Financial Crisis (BBG)
• Elections gains unlikely to shift Iran power balance fast (Reuters)
• Alibaba Affiliate Ant Financial Seeks Stake in Caixin Media (WSJ)

 

Overnight Media Digest

WSJ

– Republican front-runner Donald Trump won seven Super Tuesday presidential contests, while Ted Cruz won two to ensure the GOP race will stretch into the spring. For the Democrats, Hillary Clinton took seven delegate-rich states and Bernie Sanders claimed four others in the biggest voting day of the primary season. (http://on.wsj.com/1LU4xd3)

– Aubrey McClendon, one of the pioneers of the U.S. shale boom, was indicted by a federal grand jury Tuesday on charges of conspiring with an unnamed company to rig the price of oil and gas leases in Oklahoma. (http://on.wsj.com/1LU5d24)

– FBI director James Comey conceded that a mistake was made in the early days of the investigation into the San Bernardino, California, attack, making it harder to get data from one of the shooters’ phones. (http://on.wsj.com/1LU5e6c)

– Canadian Pacific Railway Ltd recently revived its efforts to buy CSX Corp in the latest sign of its eagerness to bring consolidation to the industry. (http://on.wsj.com/1LU5q5h)

– The Sports Authority plans to file for Chapter 11 bankruptcy protection and shut down in the coming weeks if the struggling retailer can’t find a buyer for its business. (http://on.wsj.com/1LU5nXe)

 

FT

New York Stock Exchange owner ICE said it may make a rival bid for London Stock Exchange, raising the prospect of a takeover battle with Deutsche Boerse.

South African retailer Steinhoff International’s unit, Conforama, is considering a possible cash offer for UK-listed white goods chain Darty Plc

Schroders Plc, Britain’s biggest listed fund manager, is set to announce Chief Executive Michael Dobson will step down.

 

NYT

– The head of the FBI acknowledged on Tuesday that his agency lost a chance to capture data from the iPhone used by one of the San Bernardino attackers when it ordered that his password to the online storage service iCloud be reset shortly after the rampage.(http://nyti.ms/1REntkx)

– The Justice Department announced Tuesday night that it had charged Aubrey McClendon, an Oklahoma wildcatter who turbocharged the shale revolution by buying up gas fields across the United States, with conspiring to suppress prices paid for oil and natural gas leases.(http://nyti.ms/1XZBITD)

– Brazilian federal police arrested a Facebook executive on Tuesday after the company failed to turn over information from a WhatsApp messaging account that a judge had requested for a drug trafficking investigation. (http://nyti.ms/21Bph61)

– The Hachette Book Group has reached an agreement to buy Perseus Books Group’s publishing business, 18 months after its previous attempt to acquire the company fell through. The financial terms of the deal were not disclosed. (http://nyti.ms/1T79hUf)

 

Britain

The Times

Shares in Barclays Plc slumped 8 per cent yesterday after the bank cut its dividend in half and pledged to speed up its restructuring as it struggles to boost growth. (thetim.es/24zOn4c)

Intercontinental Exchange Inc, owner of the New York Stock Exchange, confirmed in a statement yesterday that it was “considering making an offer” for the LSE, although no approach has been made and “no decision has yet been made as to whether to pursue such an offer”. (thetim.es/1oNzQ3Y)

The Guardian

Sports Direct International Plc has been relegated from the FTSE 100 following a torrid three months in which 1.6 billion stg has been wiped from the retailer’s value after a Guardian investigation into working conditions and a slump in trading at its stores. (bit.ly/24z4rD5)

The chairman of Barclays Plc has hit out against the 20 billion stg in fines and taxes imposed on the bank in recent years as it chopped its dividend and announced it was scaling back in Africa to focus on the UK and U.S. (bit.ly/1QIys9m)

The Telegraph

Europe’s deep economic malaise is the result of “deliberate” policy choices made by EU elites, according to the former governor of the Bank of England. (bit.ly/1Tm4EpV)

Sky News

Britain’s six lenders – including Barclays, HSBC Holdings Plc, and the state-backed Lloyds Banking Group Plc – are preparing to submit a proposal to the Treasury under which they would guarantee around 17 billion stg of financing to the purchasers of the B&B loans. (bit.ly/21AZYkh)

Greggs Plc is cutting up to 355 jobs as it shuts three of its bakery sites under a 100 million stg restructuring plan. (bit.ly/1ONxPKd)

The Independent

Britain’s largest developers have been accused of profiteering on the back of the country’s housing crisis by restricting the supply of new houses to keep prices unnecessarily high. Latest figures reveal that a record half a million homes in England now have planning permission granted but have yet to be built. (ind.pn/1TPXJnn)

 

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It was a “super” Tuesday indeed for Donald Trump and Hillary Clinton who both moved closer to securing the nomination for their respective parties yesterday evening.

Trump won 7 out of eleven states in what he called “an amazing evening.” The billionaire and presumptive nominee took Georgia, Alabama, Tennessee, Massachusetts, Arkansas, Virginia, and Vermont in what amounted to a rout of the field.

“I feel awfully good,” he told reporters in Florida.

And the rest of the field feels “awfully bad,” because the previously unthinkable is now a foregone conclusion for all intents and purposes. Barring some kind of dramatic shift in sentiment, Donald Trump is going to be to Republican nominee.

Meanwhile, Hillary is on the verge of extinguishing “The Bern,” so to speak. The Vermont senator put up a good fight, but it now appears the “Clinton” brand is simply too much for the firebrand socialist to overcome. There’s a palpable backlash against Clinton in America but frankly, the polls suggest it isn’t palpable enough to keep her out of The White House. Here’s how things stand after Tuesday night:

Marco Rubio and John Kasich tried to convey a false sense of confidence. “Two weeks from tonight, right here in Florida, we are going to send a message loud and clear,” Rubio said. When this election moves north, fasten your seat belts … When I win Ohio, it will be a whole new day I can promise you that,” Kasich remarked.

But that’s all just bluster. The deck is stacked, although Cruz still has a shot.

This is “the beginning of Donald Trump bringing the Republican Party together,” New Jersey Governor Chris Christie, who endorsed Trump last week said, heralding Trump’s victories in Florida but looking decidedly nervous about what he’s signed up for. 

Chris Christie is signalling for help. #DonaldTrump #trump #GOP #SuperTuesday https://t.co/dHvFddWfz4

— Fruit Saladstar (@FailedProtostar) March 2, 2016

Trump called Rubio “the biggest loser of the night,” but congratulated Cruz on his wins in Texas and Oklahoma. Clearly, that indicates that the GOP frontrunner views Rubio as a bigger threat. Rubio is an establishment candidate. If he could only manage a few wins, he would have the support of the Party. Trump knows this. If he can keep the Florida senator out of contention, the nomination is virtually assured. 

America is about to witness a showdown between a career politician voters don’t trust and a billionaire promising things he can’t possibly deliver. Which is great for entertainment value, but unequivocally bad for the future of American politics. That’s not to say we think any of the alternatives were prefereable. They’re not.

“We are NOT going to hand over our party to a dangerous con artist,” Marco Rubio said on Tuesday evening. 

Yes, Marco. Yes, you sure are.

via Zero Hedge http://ift.tt/1oYk9Ym Tyler Durden