Tag: finance

via Zero Hedge http://ift.tt/1g20bDS williambanzai7

Another quarter, and another attempt at predicting the future by the people whose predictions have become the biggest butt of all economics jokes, even more so than Paul Krugman columns.

We are talking, of course, about the IMF’s World Economic Outlook update.

It is here we learn that, at the same time as IMF chief economist Olivier Blanchard was saying that the global economy is stronger and broader, the IMF… cut its 2014 global GDP outlook from 3.7% to 3.6%. Perfectly sensible of course, because it is the same mostly US-funded policy perpetuating economists that added that “sooner is better than later on ECB moves” – moves which naturally entail moar QE, the same QE which IMF staffers last night said has “costs that now otherwise its benefits.” One can’t even keep the lies straight any more, let along the truth.

In any case, aside from cut to global GDP, the IMF kept the and China US unchanged, boosted the Eurozone (we wonder how many more changes to the definition of what makes up European GDP will be required for that prediction to come true), and finally slashed Japan by 0.3% to just 1.4% in 2014 and 1.0% in 2015. Hardly the glowing testament that is the gift to people everywhere which is Abenomics, that Abe would like to hear.

Here are the charts showing not only the most recent forecast but the history of revisions in the past two years:

Global:

 

US:

 

Eurozone:

 

China:

 

But the best chart, and the one that actually does matter, if not for the absolute level, but for the trendline, is that of world trade. Because while QE may manipulate relative asset prices and “wealth effects”, in the absence of growth to global trade, and certainly contraction, there is only one possible outcome: global economic deterioration. Sadly, the trendline in historic and future global trade is very clear.

via Zero Hedge http://ift.tt/1g208bh Tyler Durden

Overnight weakness on the back of disappointment in the BoJ and PBOC was ignored entirely in the few minutes into and past the US open this morning. Perhaps it was the IMF’s outlook? Perhaps it was just algos desperate to get back to VWAP to enable institutional sellers out? Whatever it was, the insta-vert-ramp in stocks at the open – entirely disconnecting from bonds, FX carry, and credit – has now reversed. Biotech’s early 0.6% gain, gone. S&P’s early 5 point rally, gone… and JPY crosses are no help at all as USDJPY tests 102 lows…

 

WTF moment of the day at the open…

 

And Biotechs gave it all back…

via Zero Hedge http://ift.tt/1g207nK Tyler Durden

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

We're being Fed to the sharks, every day, one morsel at a time. What a way to go….

What can we say about the Federal Reserve's policies that hasn't been said a million times? How about simplifying the two primary purposes of Fed policies? I will cover one today and the second one tomorrow. Both involve feeding the 99.5% to the financier/ Wall Street/bank sharks.

Longtime readers are familiar with Harun I.'s incisive analysis. Two of his recent commentaries can be found in Resolution #1: Let's Call Things What They Really Are in 2014 (January 15, 2014) and Doomed If We Do, Doomed If We Don't (February 12, 2014)

In the above entries, Harun explained how the Fed's money creation has leveraged a global bubble in assets. At 72-to-1 leverage, the Fed's $3.3 trillion money expansion has generated inflation as well as asset bubbles, though the Fed and its cronies deny both asset bubbles and inflation.

Inflation is the Fed's explicit, stated goal. The Fed wants prices to go up because that raises GDP (gross domestic product) and makes debt cheaper to service every year.

But alas, real income isn't keeping pace–it's declining. Median household income is down 7% since 2000, but if we strip out the top 1% households, the decline for the bottom 99% would be more than 7%. And if we strip out the top 10% households, the decline of the bottom 90% of households is much more than 7%.

Household income for the bottom 90% has been stagnant for four decades:

So the Fed is robbing the purchasing power of our money as a matter of policy. In simple terms, the Fed is stealing purchasing power and delivering the stolen wealth to the financiers and banks, who borrow money from the Fed for near-zero rates of interest.

And what do the banks do with the money the Fed stole from us? They loan it back to us at 16% (or more). Those of us who haven't just emerged from bankruptcy get offers from banks on a weekly basis: for transfers of credit card debt, new credit cards, cash advances, auto loans, home equity lines of credit, you name it.

A recent offer from a Too Big to Fail bank offered a teaser rate of 0% for a few months, after which the credit card's interest rate reverted to 16%.

This is how the Fed rebuilds the TBTF banks' insolvent balance sheets: it strips purchasing power from wage earners and savers and gives the banks free money which they loan to debt-serfs for somewhere between 5% and 24%, depending on the length of the loan and the collateral (or lack thereof).

As Harun explained, the Fed steals our wealth, transfers it to the banks who then loan our money back to us at 16%.

It almost makes you wish the Fed would just steal the money openly and give it to the banks and top .01% of financiers directly, without the sleight of hand of inflation and zero interest rate policy (ZIRP).

The Fed implicitly claims (and many foolishly believe the propaganda) to be the ultimate financial power in the Universe:

If the Fed is so powerful, why is it so cowardly and fearful that it has to cloak its theft of our money and its transfer of the wealth to the banks? What's it so afraid of? That we might wake up to the fact that we're being Fed to the sharks, every day, one morsel at a time?

Of related interest:

The Federal Reserve's Nuclear Option: A One-Way Street to Oblivion (February 5, 2014)

Want to Reduce Income/Wealth Inequality? Abolish the Engine of Inequality, the Federal Reserve (January 28, 2014)

via Zero Hedge http://ift.tt/1edW9Kd Tyler Durden

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Some out there were waiting on the International Monetary Fund’s new World Economic Outlook report to be issued today. Some were waiting. Most didn’t care, since it was going to contain a tissue of inter-woven statements that probably say what we have already been thinking (at least we could have hoped that they might be that honest) about the dire straits of the world economy.

Apparently we are told that the world recovery is strengthening. Although in the face of figures that clearly show contradictory belief to that, with China’s economic growth slowing decidedly this year, below the forecasts that are being targeted by the Chinese administration. Some are predicting as low as 7.3% for growth this year. Others (World Bank) that are more optimistic believe that China will have a growth prospect of 7.6% (rather than previously-believed 7.7%).

Christine Lagarde already stated last week that the global economy was on track for “sub-par growth” for years to come, warning that the world could fall into the “low-growth trap”. She went on to speak of the EU’s situation: “A potentially prolonged period of low inflation can suppress demand and output, and suppress growth and jobs.” She spoke of “policy ambition” to get the world moving again. But, there is only one type of ambition in the world today. That’s to get the lion share of the market, forgetting that we trade today with others and that eras of isolated economic boom, just can’t happen.

The US is tapering and seems little worried as to the state of the finances or the economies of the emerging markets or the Federal Reserve’s effect on the rest of the global economy, just as long as the Dollar comes back to the good old US of A. Greater cooperation of policymakers never existed in the past and certainly is unlikely to exist today. But, there will one day be a regurgitation of the problem caused, in overt insouciance, and it will be vomited in the face of the US economy.

The IMF Outlook Summary:

• “Recovery is strengthening”.
• 3.6% 2014 in the world.
• 3.9% for 2015, up from 3.0% in 2013.
• Advanced economies: 2.2% in 2014, up from 1.3% in 2013. “Substantial improvement”.
• “Recovery that was starting to take hold is becoming stronger and broader”.
• “Investors are feeling less worried about sustainability”. 
• “Far from full recovery”. 
• Recovery is strongest in the USA: growth for 2014 forecast at 2.8%.
• UK and Germany – imbalances still exist – 2.9% for former and 1.7% for latter 
• Japan: 1.4% growth in 2014 and “fiscal stimulus has played a large role”.
• Eurozone – for the 1st time in 2 years, southern countries have positive growth. “Exports are strong, internal demand is weak. Must become stronger if it is to be sustained”.
• Emerging economies: “will continue to have strong growth”. 4.9% across the board, up from 4.7% in 2013.
• Growth for China of 7.5% this year is forecast.
• India is 5.4%.
• South Africa growth of 5.4%.
• “Bumps can be expected”.
• “Acute risks have decreased, but they have not disappeared”. 
• Adjustment and recovery in southern Europe cannot be taken for granted, especially in the context of the deflation fears. 
• Geo-political risks have increased. 
• “Potential growth is very low in advanced economies”. 
• “Measures to increase growth are more important today: increased competition in productivity, rethinking the size of government, examining the role of public investment. 
• “Potential growth in emerging economies is also decreasing”. 
• “Rising inequalities are present and a central issue today. Until recently they had little implication for macro-economic developments”. But, this is clearly not the case. “They will be art of our agenda for a long time to come”.

Today, the world has reached its economic end, governed by the pitiless, over-bearing few and masses and yet that still remains weak. There’s not enough of the lion’s share to go around anymore and society just mirrors what we are witnessing in the world economy. There are a few that are down-treading the many. The wealthy have the most and the many have nothing or very little to rejoice for. It’s the same in the global economy. The USA, China and the EU are battling it out today to get the biggest part of the pie, preferably with the cherry on top and the dollop of cream. Those that are the many are just scrabbling around to peck at the crumbs that are left. There’s no longer a tide, let alone a rising tide. There are very few boats that haven’t already capsized or that are having difficulty navigating. This is not the thirty glorious years, but the succession of events that have caused a chain-reaction of bubbles bursting, markets inflating and deflating at double-quick digital speed and debt after debt after debt.

What the leaders, the economists, the World Bank, the International Monetary Fund haven’t realized is that when the few becomes so restricted that it’s getting smaller and smaller and there’s only a handful left, then it’s time for collapse to occur. Society regenerates into something else and so will the world economy. But, the power of the economy is concentrated in fewer and fewer hands, so much so, that the time is nearing when it must end.

Originally posted: IMF: Economic Outlook

 

via Zero Hedge http://ift.tt/1edNE1G Pivotfarm

Having hit their most hopeful levels in seven years in January, small business hiring plans have collapsed at the fastest rate since Lehman in the ensuring 2 months. Despite the headlines proclaiming the modest rise and beat in the headline NFIB data, capex spending plans dropped and hiring expectations dropped to lows seen 11 months ago. We can only assume the small businesses are expecting more winter storms through the spring…

 

 

Charts: Bloomberg

via Zero Hedge http://ift.tt/1mYHRg7 Tyler Durden

Are you saying it took the highbrow economist cadre five years to figure out what we said in 2009, and for which we received endless ridicule, abuse and accusations of fringe insanity? Yes. We are saying that.

First, from the “erudite” economists at the IMF, and its just released report titled “Monetary Policy in the New Normal“:

Should unconventional policy tools become conventional? During the crisis, central banks employed unconventional tools (such as bond purchases and forward guidance) to provide economic stimulus as the policy rate approached zero, and to ensure transmission despite disrupted financial markets. This raises the question of whether unconventional tools should also be used in tranquil times. We conclude that with the exception of forward guidance, the costs seem to exceed the benefits.

And then, from the “erudite” journalists at The Economist:

When QE was first announced, it was the equivalent of emergency surgery. Then, further rounds were needed to help the economic patient recover. The third step was for the Bank of England to hand back to the Treasury the interest it earned on government bonds, in the name of good accounting. And now what was originally a temporary arrangement has been turned into something more permanent.

 

All along, the authorities have denied that this process represents “monetisation” (the monetary financing of government debt), which is something of a taboo in central banking. But the cumulative impact is similar. The British government has in effect ended up with an interest-free loan from its central bank, financed by money creation. The debt has not been formally cancelled, but it might as well have been.

…

[A]nother reason why monetisation has always been frowned upon is that it is an easy option. Why should governments finance spending with unpopular taxes or borrow from suspicious bond investors when they can get the money from a friendly central bank? The process makes democratic leaders less accountable; by boosting asset prices, which are mostly owned by the rich, it may well have led to a rise in inequality, without the sanction of any vote. Perhaps in ten or 20 years’ time, recent events will be seen as the moment the world crossed a line.

Wait a minute, that is what we said five years ago!

So, based on the preceding, all we can conclude is: “Those damn tinfoil-hat, conspiratorial, fringe bloggers at the IMF and the Economist.”

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

Despite Russia's veiled threat that any ongoing action against pro-Russian demonstrators had the potential to instigate civil war and bring action by the Russian forces, Ukraine's interior minister Arsen Avakov has announced, Reuters reports, that Ukraine has launched an "anti-terrorist" operation in the eastern city of Kharkiv and about 70 "separatists" have been arrested for seizing the regional administration building. Is this the red-line that Putin laid down last night?

 

As Russia made clear last night, as ITAR-TASS reports,

The Russian Foreign Ministry urged Ukraine to halt any interior military preparations, which could instigate a civil war in the country, the ministry was quoted as saying on its Facebook.com account.

 

“According to our information, units of the Interior troops and Ukraine’s national guards as well as militants from the illegal armed formation ‘The Right Sector’ are being amassed in the southeastern parts of Ukraine and in the city of Donetsk,” the ministry said.

 

“We are particularly concerned that the operation involves some 150 American mercenaries from a private company Greystone Ltd., dressed in the uniform of the [Ukrainian] special task police unit Sokol,” the ministry said.

But, in the interests of stability,  as Ukraine also made clear yesterday, Reuters reports that

Ukraine has launched an "anti-terrorist" operation in the eastern city of Kharkiv and about 70 "separatists" have been arrested for seizing the regional administration building, Ukrainian Interior Minister Arsen Avakov said on Tuesday.

 

On his Facebook page, Avakov said: "An anti-terrorist operation has been launched. The city center is blocked along with metro stations. Do not worry. Once we finish, we will open them again."

 

Ukraine's Interior Ministry was quoted as saying by Interfax-Ukraine news agency that those detained were suspected of "illegal activity related to separatism, the organization of mass disorder, damage to human health" and breaking other laws.

So, it is clear that Ukraine's crackdown – with US mercenaries or not – has begun. The question is how long will Putin stand for it?

via Zero Hedge http://ift.tt/1jql9Ni Tyler Durden

Over the past few days we have been following, with great interest, the events in the most popular “hedge fund hotel” names on both the long and the short side. Specifically, over the weekend we learned that the mauling that hedge funds suffered in the last week of March, which was also the worst week for HF performance since 2001 excluding “world ending” weeks such as Lehman and the US debt crisis, spilled over into last week as well.

As a reminder, for those with Bloomberg (and the proper permissions) the easiest way to track the performance of the most popular hedge fund names is using the BBG ticker GSTHHVIP, and especially its performance against the S&P. But for those who don’t have access, or are too lazy or depressed to type anything into their terminal today, here it is, straight from Goldman’s sales and trading mouth, summarizing yesterday’s market poundage:

Our HF VIP basket underperforms the SPX by over 100bps, 3 standard dev move and the worst since June 2012.

Oops.

And since we enjoy being helpful, for those who want to keep the pain on the hedge fund space the easiest way to do this is to keep selling and/or shorting the names the comprise said Goldman GSTHHVIP basket, something we suggested is the right trade two weeks ago. The breakdown is as follows (sorry General Motors and your latest airbag inquiry):

 

Why trade this? Because recall that hedge fund leverage, as indicated by the following leverage table of one of the “more” levered smart money participants, Balyasny, has never been greater and is now 3.5x – 4.0x.

In other words, either hedge funds rapidly deleverage once the margin calls finally slam the hammer on the smart money, which will crash stocks further, or hedge funds sell the widest held stocks over fears of what other hedge funds do, which also will crash stocks further.

Unless, of course, the Fed’s plunge protection team finally steps in as it has always done at key market inflection points in the past 5 years and restores upward market momentum.

Then again, with the market at the same forward multiple as at the last bubble peak, and with increasingly more Fed members screaming “bubble” this time may be different…

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

• Russia’s Gazprom says Ukraine did not pay for gas on time (Reuters)
• Ukraine Moves to Keep Control in East (BBG)
• Banks Set to Report Lower Earnings as Debt Trading Slumps (BBG)
• More DeGeners and Obama selfies needed: Samsung’s lower first-quarter estimate highlights smartphone challenges (Reuters)
• Citi Is Bracing to Miss a Profit Target (WSJ)
• Another slam from GM? Safety group calls for U.S. probe of Chevy Impala air bags (Reuters)
• Japan drugmaker Takeda to fight $6 billion damages imposed by U.S. jury (Reuters)
• EU court rules against requirement to keep data of telecom users (Reuters)
• White House may ban selfies with president after Ortiz-Obama photo promotes Samsung (Syracuse)
• SEC  Goldman Lawyer Says Agency Too Timid on Wall Street Misdeeds (BBG)
• Beleaguered Thai PM pleads for justice, fair treatment (Reuters)

 

Overnight Media Digest

WSJ

* The U.S. Federal Reserve said on Monday that it would give banks two years of extra time to conform certain debt holdings with the Volcker rule, but stopped short of granting an exception the industry had been seeking. The Fed said banks would have two additional years to make sure their collateralized loan obligations do not fall under the rule’s ban on speculative investments. (http://ift.tt/PJNi7C)

* Citigroup Inc is warning investors it may miss a key profitability target after the U.S. Federal Reserve rejected the bank’s capital plan last month, people familiar with the matter say. (http://ift.tt/1irOgO0)

* If regulators approve, AT&T Inc customers in Carbon Hill, Alabama, would eventually have to switch to wireless or high-speed service. New customers would not be allowed to sign up for traditional, landline-based service at all, ushering in one of the biggest technological changes since Alexander Graham Bell’s first telephone. (http://ift.tt/1irOip9)

* A federal judge on Monday gave a boost to the Federal Trade Commission’s push to police corporate cybersecurity, allowing the agency to move forward with a lawsuit alleging that Wyndham Worldwide Corp failed to make reasonable efforts to protect consumer information.

* Mallinckrodt Plc agreed to buy Questcor Pharmaceuticals Inc for about $5.6 billion in cash and stock, in the latest sign of consolidation in the specialty pharmaceuticals business. (http://ift.tt/1irOgO3)

* IMAX Corp plans to sell a 20 percent stake in its Chinese business to two China-focused investor groups in an $80 million deal that the big-movie-screen operator hopes will pave the way for expansion and an eventual public listing. (http://ift.tt/1irOgO5)

 

FT

A new technique of measuring Britain’s economy to be adopted by the Office for National Statistics this autumn is likely to present the United Kingdom as a nation with an increase in the size of the economy and a higher level of public debt.

Property firm Globalworth Real Estate Investments is witnessing a strong increase in investments across central and eastern Europe in countries such as Prague, Hungary and Romania.

Britain is facing objections from member states including Czech Republic, Denmark and Copenhagen on the fine print of a common rulebook on what kind of support a state can provide to a lender in the event of a bailout of a struggling bank.

FTSE-100 company BG Group has said it is shifting its liquefied natural gas trading unit to Singapore from the United Kingdom three weeks after announcing staff lay offs at its headquarters in Reading, UK.

Chancellor George Osborne said the Bank of England will extend support to exporters in an attempt to lower the cost of export finance loans.

 

NYT

* The stock market fell again on Monday, extending a sharp sell-off that began last week. Biotechnology and internet stocks pulled the market lower on Friday, and it was companies that sell consumer discretionary goods and services that drove down the market this week. (http://ift.tt/1irOeG5)

* Comcast Corp’s $45 billion deal with Time Warner Cable Inc will come up for its first Senate hearing this Wednesday. U.S. regulators are likely to focus on how the merger will affect the market for high-speed Internet, also known as broadband, and how it will affect cable TV service. (http://ift.tt/1irOgh3)

* Questcor Pharmaceuticals Inc said it will be bought by Mallinckrodt Pharmaceuticals for about $5.6 billion in cash and stock. Based on the closing price of Mallinckrodt shares last Friday, the deal is worth $86.08 per share, representing a 27 percent premium to Questcor’s Friday close. (http://ift.tt/1irOhBx)

* Citigroup Inc will pay $1.13 billion to settle claims by investors who demanded that it buy back billions in residential mortgage-backed securities. The bank said on Monday that it has reached a pact with 18 institutional investors to make a binding offer to the trustees of 68 Citi-sponsored trusts that bundled some $59.4 billion in home loans into securities from 2005 to 2008. The offer – subject to approval by trustees and the court – would release Citi from having to buy back mortgages sold to the trusts. (http://ift.tt/1irOgh7)

* The Laclede Group said it will buy Energen Corp’s natural gas utility in Alabama in a deal valued at about $1.6 billion. Laclede is paying $1.28 billion in cash and assuming about $320 million in debt. (http://ift.tt/1irOhBz)

* The Manischewitz Company, whose matzo and gefilte fish are a staple of Seder tables around the world, is expected to announce on Tuesday that it has been sold to Sankaty Advisors, an arm of private equity firm Bain Capital. The deal may help the 126-year-old company expand beyond the kosher aisle. (http://ift.tt/PJNeVF)

* SAC Capital Advisors has changed its name to Point72 Asset Management. The retirement of the SAC name happened quietly over the weekend. SAC’s old website is no longer accessible. The new site which went live on Monday afternoon, is fairly minimalistic. (http://ift.tt/PJNeVH)

* Financial journalist Michael Lewis’ new book, “Flash Boys: A Wall Street Revolt” has revived a debate on taxing financial transactions. Supporters argue that the tax would reduce risk and volatility in the market and would also raise revenue for public coffers. (http://ift.tt/1irOgh9)

* The World Wrestling Entertainment said on Monday its subscription-only streaming video service is showing strong support among its core audience, but reaction from Wall Street investors was less enthusiastic when the company’s stock dropped 14.7 percent on Monday. The company expects to exceed one million subscribers within the next year. (http://ift.tt/PJNhAB)

 

Canada

THE GLOBE AND MAIL

* The Parti Quebecois’s hopes of rekindling debate on Quebeck’s sovereignty by using wedge politics was strongly rejected by Quebeckers Monday night, with voters giving the Quebec Liberal Party a majority government. The Liberals garnered 41.5 percent of the popular vote and won 70 of 125 ridings. (http://ift.tt/1hnUQZx)

* Pauline Marois’s tenure as the first female Premier of Quebec was short-lived. After only 18 months in office, her minority government was ousted in no uncertain terms. She even lost her own riding of Charlevoix-Cote-de-Beaupre – and announced she is quitting politics after a seven-year stint as party leader. (http://ift.tt/1ioFFdC)

Reports in the business section:

* An Ontario court decision ordering Deloitte & Touche to pay $85-million for negligence in its audit of defunct theatre company Livent Inc could open the door to many new lawsuits against audit firms, especially when the cases are carefully structured to fit similar legal circumstances, legal experts said Monday. (http://ift.tt/1ioFFdK)

NATIONAL POST

* The raised fist of Parti Quebecois’ billionaire star candidate Pierre Karl Peladeau, awkwardly signifying revolutionary resistance and solidarity with the oppressed, was supposed to be the moment that clinched victory for its leader Pauline Marois. Instead, it marked the moment power began to slip from her grasp, as her party lost in Quebec’s provincial elections. (http://ift.tt/1ioFFdM)

* The board that polices Canadian MPs’ spending is expected to tell the New Democratic Party that, effective immediately, it can no longer use House of Commons funds to pay staff in “satellite” branches of Thomas Mulcair’s Office of the Leader of the Opposition. (http://ift.tt/1hnUTog)

FINANCIAL POST

* In his first major speech since being named Canada’s Finance Minister last month, Joe Oliver vowed Monday that once the budget has been eliminated next year, the government’s first order of business will be to lower taxes for “hard-working Canadian families.” (http://ift.tt/1hnURfZ)

* Sales in Canada’s corporate sector are set to grow during the next 12 months – helped by a strengthening U.S. economy and a weaker Canadian dollar – and the outlook for investment growth remains positive, as are hiring plans by businesses, according to the Bank of Canada’s survey of the sector, released Monday. (http://ift.tt/1hnUTEC)

 

China

CHINA SECURITIES JOURNAL

– The China Securities Regulatory Commission (CSRC) has rolled out information disclosure rules for preferred shares.

– A series of growth-stabilizing measures are expected from April to achieve the economic target set for this year, with a further push to infrastructure construction in the middle and western parts of China and a mildly easing monetary policy expected by analysts, sources said.

– China’s southwestern province of Yunnan has been permitted to conduct electricity price liberalisation experiments, with the direct trading price, one of the three components of the final electricity price to be reached under the negotiations between consumers and providers, sources said.

SECURITIES TIMES

– Measures to achieve higher returns for stock investors are likely to be unveiled soon, sources said. About 25 of the 1090 Shanghai- and Shenzhen-listed companies, which have released their 2013 annual reports so far, had declared higher dividend rates than the annualized yield of Yuebao, Alibaba’s <IPO-ALIB.N> monetary market fund, according to data pooled recently.

CHINA DAILY

– Experts have urged China to invest more in fixed-wing search aircraft after the search for the disappeared flight MH370 revealed weak capabilities of the transport aircraft China sent to support the search.

– China is planning a new nuclear security law, with the first draft expected to be produced this year, said Sun Qin, a member of the Environmental Protection and Resources Conservation Committee of the National People’s Congress.

SHANGHAI DAILY

– The Shanghai exchange is considering to create a new board to host technology IPOs to compete with the Shenzhen exchange’s ChiNext board.

PEOPLE’S DAILY

– China’s Central Commission for Discipline Inspection and Supervision Department opened a reporting channel for Internet users to facilitate the supervision and punishment of CCP members’ misbehavior.

Britain

The Telegraph

MPS RECALL CABLE OVER ROYAL MAIL SALE

(http://ift.tt/1eb7Q4j)

Vince Cable has been recalled to the Business Select Committee to answer publicly the National Audit Office’s charge that Royal Mail was sold on the cheap.

ONS CHANGES WILL INSTANTLY TURN UK INTO NATION OF SAVERS

(http://ift.tt/1qhiciR)

The Office for National Statistics is to shake up the way it measures the economy, in a move that will instantly turn the UK into a nation of savers. The new accounting standards, which will take effect from September, follow similar changes in the United States, Canada and Australia.

The Guardian

GEORGE OSBORNE ANNOUNCES EXPORT CREDIT SCHEME

(http://ift.tt/1eb7Q4n)

Banks will have access to a Bank of England facility to make it less risky for them to finance exports under a new scheme to boost Britain’s trade announced by George Osborne on Monday.

MIKE ASHLEY SURPRISES CITY BY SELLING SPORTS DIRECT SHARES WORTH 200 MLN STG

(http://ift.tt/1qhieHC)

Sportswear tycoon Mike Ashley turned the tables on the City last night with a surprise sale of shares worth more than 200 million pounds. The move came days after investors threw out a bonus scheme that would have handed Ashley 72 million pounds of free stock.

The Times

MISSED DEADLINE PILES THE PRESSURE ON CO-OP BANK

(http://ift.tt/1qhiciW)

The crisis engulfing the Co-operative movement deepened yesterday when the Co-op Bank failed to meet a second deadline for publishing its accounts.

HOUSE PRICE BOOM SPREADS ACROSS BRITAIN

(http://ift.tt/1qhieHE)

The “London effect” of rising property prices has spread to two-thirds of the country, prompting fresh concerns about the housing market. It said that prices had risen by up to 6 per cent in some areas.

Sky News

ASDA PLANS 12,000 NEW JOBS OVER FIVE YEARS

(http://ift.tt/1qhiciY)

Asda has announced it will create up to 12,000 jobs over five years as part of its latest UK expansion plans. The announcement was made on a visit to the UK by the chief executive of parent company Walmart, Doug McMillon.

ENERGY COMPLAINTS SOAR BY STAGGERING 224 PCT

(http://ift.tt/1eb7QkK)

Complaints about energy companies have trebled in the first quarter of this year, according to the energy sector’s ombudsman who is calling for “increased transparency.”

 

 

Fly On The Wall 7:00 AM Market Snapshot

ECONOMIC REPORTS

Domestic economic reports scheduled today include:
JOLTs job openings for February at 10:00 am–consensus 4.02M

ANALYST RESEARCH

Upgrades

ARM Holdings (ARMH) upgraded to Market Perform from Underperform at Bernstein
Allegiant Travel (ALGT) upgraded to Buy from Hold at Deutsche Bank
Eli Lilly (LLY) upgraded to Market Perform from Underperform at BMO Capital
Estee Lauder (EL) upgraded to Outperform from Market Perform at Bernstein
Harman (HAR) upgraded to Strong Buy from Outperform at Raymond James
Hawaiian Electric (HE) upgraded to Outperform from Neutral at Macquarie
Hub Group (HUBG) upgraded to Buy from Hold at BB&T
Mallinckrodt (MNK) upgraded to Outperform from Market Perform at BMO Capital
Nike (NKE) upgraded to Buy from Hold at Stifel
Sprouts Farmers Markets (SFM) upgraded to Buy from Neutral at UBS
US Ecology (ECOL) upgraded to Buy from Hold at KeyBanc
US Ecology (ECOL) upgraded to Outperform from Market Perform at Wells Fargo
WABCO (WBC) upgraded to Conviction Buy from Buy at Goldman
Yelp (YELP) upgraded to Buy from Neutral at SunTrust

Downgrades

American Eagle (AEO) downgraded to Neutral from Buy at Janney Capital
Antero Resources (AR) downgraded to Neutral from Buy at Citigroup
BOK Financial (BOKF) downgraded to Underperform from Market Perform at BMO Capital
Banc of California (BANC) downgraded to Market Perform at Raymond James
Cisco (CSCO) downgraded to Hold from Buy at Wunderlich
Gigamon (GIMO) downgraded to Sector Perform from Outperform at Pacific Crest
Questcor (QCOR) downgraded to Hold from Buy at Jefferies
Spirit Realty (SRC) downgraded to Equal Weight from Overweight at Morgan Stanley

Initiations

1st United Bancorp (FUBC)  initiated with a Neutral at Macquarie
Avista (AVA) initiated with a Fair Value at CRT Capital
Castlight Health (CSLT) initiated with a Neutral at Goldman
Castlight Health (CSLT) initiated with an Outperform at Raymond James
Cempra (CEMP) initiated with an Equalweight at Barclays
Coca-Cola (KO) initiated with a Buy at BTIG
JinkoSolar (JKS) initiated with an Overweight at Barclays
Lumenis (LMNS) initiated with a Buy at Goldman
Lumenis (LMNS) initiated with an Outperform at Wells Fargo
National Retail Properties (NNN) initiated with an Overweight at Morgan Stanley
PepsiCo (PEP) initiated with a Buy at BTIG
Realty Income (O) initiated with an Underweight at Morgan Stanley
Teekay (TK) initiated with an Outperform at Raymond James
Twitter (TWTR) initiated with a Buy at Janney Capital

COMPANY NEWS

Nokia (NOK) and Microsoft (MSFT) received approval from China for Devices & Services transaction
Citigroup (C) said it would resolve certain private-label securitization repurchase claims for $1.125B
The Federal Reserve announced an extension on some CLOs (BAC, C, GS, JPM, MS, USB, WFC)
IMAX (IMAX) sold a 20% stake in IMAX China to strategic Chinese investors for $80M
James River Coal (JRCC) filed for Chapter 11 bankruptcy
Gigamon (GIMO) cut its Q1 revenue outlook, which the company attributed to one expected large transaction from an existing customer that did not materialize
Tesla (TSLA) announced the launch of leasing for business owners

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Team (TISI), Zep Inc. (ZEP)

NEWSPAPERS/WEBSITES

Citigroup (C) may miss return-on-tangible-common-equity goal, WSJ reports
Tech firms (AAPL, GOOG), INTC, ADBE) may find no-poaching deals costly, NY Times reports
Apple (AAPL) may release iWatch in Q3, DigiTimes reports
Microsoft (MSFT) ending support for Windows XP today, AP reports
Citigroup (C) says to close one third of Korea branches, Reuters reports
General Motors (GM) to invest $450M in electric cars, WSJ says
FDA extension of MannKind’s (MNKD) Afrezza PDUFA not a surprise, Barron’s says
Amazon (AMZN) believes Fire TV will fill gap in mid-market games, Re/code reports

SYNDICATE

Nordic American Tanker (NAT) 12M share Spot Secondary priced at $8.62
Pacira Pharmaceuticals (PCRX) files to sell $100M of common stock
ParkerVision (PRKR) files to sell 2.67M shares for holders
Starwood Property (STWD) files to sell 22M shares of common stock
Voxeljet (VJET) files to sell 4M American Depositary Shares

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