Tag: news

From Paula Dean and twerking to Drones and Duck Dynasty with a peotic sprinkling of Mandela, Thatcher, “if you like it you can keep it”, and government shutdown; UBS’ avuncular floor director Art Cashin unleashes his latest ode with a subtle reminder of the most important ‘word’ for 2013 – FOMO – “fear of missing out.”

 

Via Art Cashin,

‘Tis two days yet to New Year

but despite what you’re hopin’

The folks in the Board Room

say “the full Eve we’ll stay open”

 

So we’ll buy and we’ll sell

as the tape crawls along

And though “Bubbly’s” verboten

we may still sing a song

 

Two Thousand Thirteen

had some spots of high hopes

They may get fumbled away

by those Washington dopes

 

A brief government shutdown

pushed sides further apart

Let’s all hope things improve

as the New Year we start

 

“If you like it you can keep it”

we heard the President quip

When that didn’t work out

in the polls he did slip

 

We lost special people

as we seem to each year

It just makes us treasure

each one that’s still here

 

Mandela and Thatcher

they reshaped their times

They’ll now regale the angels

backed by heavenly chimes

 

And Peter O’Toole

with his steely blue eyes

Joined the great Joan Fontaine

in God’s still bluer skies

 

Jean Stapleton’s “Edith”

has joined Archie on high

And author Tom Clancy

chose October to die

 

Ed Koch now asks angels

his set quote, “How’m I doin”

Gone is Hugo Chavez

who brought his nation to ruin

 

Helen Thomas asks questions

of St. Peter these days

Also Frank Lautenberg

left his senator’s ways

 

Jim Hall, jazz guitarist,

played his final great note

Richie Havens, quite different

is now in the same boat

 

Ray Harryhausen, who

created creatures unreal

Joined Jonathan Winters

every scene he would steal

 

Van Cliburn’s piano

angels hear without faults

As Patti Page sings them

the old Tennessee Waltz

 

And Frost re-met Nixon

midst the clouds they’ll debate

While Tony Soprano

while in Rome met his fate

 

Scott Carpenter and angels

now together will sup

Roger Ebert gave the harp

a quite hearty thumbs up

 

Esther Williams swam off

Eydie Gorme took a bow

And Annette Funicello

has joined them both now

 

And Doctor Joyce Brothers

bid her clients goodbye

While “Dear Abby” Van Buren

gives advice from on high

 

In Boston, two brothers

put some bombs in a crowd

Although hundreds were injured

that great town stayed unbowed

 

Wild fires aplenty

burned in state after state

Elsewhere came tornadoes

seems Mother Nature’s irate

 

The Philippines saw a cyclone

winds of 200 miles

Caused immense devastation

to those once lovely isles

 

A Bangladesh building

did collapse in the spring

Though a thousand folks died

few reforms did it bring

 

In Syria, chemicals

wiped out a whole town

In a mall in Nairobi

scores of folks were mowed down

 

FOMO is a slogan

it’s “fear of missing out”

Now we’re all self-absorbed

that’s what that’s all about

 

Wall Street saw stocks soar

but Main Street stayed slow

As the Fed starts to taper

we’ll see just how things go

 

Jeff Bezos announced

a new delivery drone

Edward Snowden revealed

that we’d tapped Merkel’s phone

 

Prince George did arrive

of pictures there was no lack

and sweet tooths were quite pleased

to see Twinkies come back

 

Paula Deen fell from grace

for some things she once said

The Duck Dynasty guy

made some people turn red

 

Former Hannah Montana

shocked some fans with a twerk

In Toronto the mayor

some folks called a jerk

 

Let not this year’s memories

of sadness or sleaze

Disturb you this day

just give your heart ease

 

Have faith that this New Year

will bring a new sign

And believe in yourself

it will all work out fine

 

Just lift up your spirits

and some fruit of the vine

And kiss ye a loved one

and sing Auld Lange Syne

 

And late Tuesday evening

as you watch the ball fall

Wish yourself all the best

Happy New Year to All!!

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/ZvdHyoteC8Q/story01.htm Tyler Durden

From Paula Dean and twerking to Drones and Duck Dynasty with a peotic sprinkling of Mandela, Thatcher, “if you like it you can keep it”, and government shutdown; UBS’ avuncular floor director Art Cashin unleashes his latest ode with a subtle reminder of the most important ‘word’ for 2013 – FOMO – “fear of missing out.”

 

Via Art Cashin,

‘Tis two days yet to New Year

but despite what you’re hopin’

The folks in the Board Room

say “the full Eve we’ll stay open”

 

So we’ll buy and we’ll sell

as the tape crawls along

And though “Bubbly’s” verboten

we may still sing a song

 

Two Thousand Thirteen

had some spots of high hopes

They may get fumbled away

by those Washington dopes

 

A brief government shutdown

pushed sides further apart

Let’s all hope things improve

as the New Year we start

 

“If you like it you can keep it”

we heard the President quip

When that didn’t work out

in the polls he did slip

 

We lost special people

as we seem to each year

It just makes us treasure

each one that’s still here

 

Mandela and Thatcher

they reshaped their times

They’ll now regale the angels

backed by heavenly chimes

 

And Peter O’Toole

with his steely blue eyes

Joined the great Joan Fontaine

in God’s still bluer skies

 

Jean Stapleton’s “Edith”

has joined Archie on high

And author Tom Clancy

chose October to die

 

Ed Koch now asks angels

his set quote, “How’m I doin”

Gone is Hugo Chavez

who brought his nation to ruin

 

Helen Thomas asks questions

of St. Peter these days

Also Frank Lautenberg

left his senator’s ways

 

Jim Hall, jazz guitarist,

played his final great note

Richie Havens, quite different

is now in the same boat

 

Ray Harryhausen, who

created creatures unreal

Joined Jonathan Winters

every scene he would steal

 

Van Cliburn’s piano

angels hear without faults

As Patti Page sings them

the old Tennessee Waltz

 

And Frost re-met Nixon

midst the clouds they’ll debate

While Tony Soprano

while in Rome met his fate

 

Scott Carpenter and angels

now together will sup

Roger Ebert gave the harp

a quite hearty thumbs up

 

Esther Williams swam off

Eydie Gorme took a bow

And Annette Funicello

has joined them both now

 

And Doctor Joyce Brothers

bid her clients goodbye

While “Dear Abby” Van Buren

gives advice from on high

 

In Boston, two brothers

put some bombs in a crowd

Although hundreds were injured

that great town stayed unbowed

 

Wild fires aplenty

burned in state after state

Elsewhere came tornadoes

seems Mother Nature’s irate

 

The Philippines saw a cyclone

winds of 200 miles

Caused immense devastation

to those once lovely isles

 

A Bangladesh building

did collapse in the spring

Though a thousand folks died

few reforms did it bring

 

In Syria, chemicals

wiped out a whole town

In a mall in Nairobi

scores of folks were mowed down

 

FOMO is a slogan

it’s “fear of missing out”

Now we’re all self-absorbed

that’s what that’s all about

 

Wall Street saw stocks soar

but Main Street stayed slow

As the Fed starts to taper

we’ll see just how things go

 

Jeff Bezos announced

a new delivery drone

Edward Snowden revealed

that we’d tapped Merkel’s phone

 

Prince George did arrive

of pictures there was no lack

and sweet tooths were quite pleased

to see Twinkies come back

 

Paula Deen fell from grace

for some things she once said

The Duck Dynasty guy

made some people turn red

 

Former Hannah Montana

shocked some fans with a twerk

In Toronto the mayor

some folks called a jerk

 

Let not this year’s memories

of sadness or sleaze

Disturb you this day

just give your heart ease

 

Have faith that this New Year

will bring a new sign

And believe in yourself

it will all work out fine

 

Just lift up your spirits

and some fruit of the vine

And kiss ye a loved one

and sing Auld Lange Syne

 

And late Tuesday evening

as you watch the ball fall

Wish yourself all the best

Happy New Year to All!!

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/ZvdHyoteC8Q/story01.htm Tyler Durden

As we observed two weeks ago, Europe’s year-end liquidity situation is dire and deteriorating. On December 17, the ECB failed to sterilize its cumulative €184 billion in SMP bond purchases by a whopping €32 billion, the second such failure in one month. Since then things have gotten progressively worse, as banks, already scrambling for year-end liquidity, and eager to preserve their windows well-dressed by having crisp European currency on their balance sheet instead of sterilized ECB bonds on December 31, have led to two more sterilization failures, first a week ago when 103 bidders only indicated interest for €140 billion of SMP bonds, leaving a €39 billion shortfall, culminating with the sterilization failure from this morning, when a tiny 89 banks submit bids for only €104.8 billion in ECB purchased bonds, leaving a record unsterilized gaping hole of €74 billion.

Remember when the ECB’s bond purchases were quote unquote sterilized? If this pace continues, in early 2014 the ECB’s bond purchases may remain on its balance sheet fully unsterilized. But that’s ok – now even Germany is slowly starting to habituate to central bank activity with no fears what this may mean for future inflation. Because it, like subprime, is contained.

Finally, since even the theatrics of ECB’s bond buying sterilization are fading, can it be long before the ECB proceeds to monetize debt outright, and unsterilized? According to BNP, the answer is a resounding no.

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Fcjd43A2_Rs/story01.htm Tyler Durden

For the second time in a week, the market is running (not walking) away from the USD. Despite all the equity market exuberance over the taper, the USD is now unchanged from the FOMC decision and in relative free-fall for the world’s reserve currency – on a scale we saw during last Friday’s craziness… Treasuries are modestly bid this morning, equities are flat and precious metals are lower (thogh gold is recovering as the USD sinks)…

 

It seems the need to repatriate JPY and EUR into year-end is weighing heavy on the USD once again

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/TGRZYvzZmK4/story01.htm Tyler Durden

The release schedule is relatively light in the current week, without major central planning meetings. Nonetheless, there will a number of speeches from US FOMC members at the annual American Economic Association meeting. In terms of economic data releases we have manufacturing surveys from the US (Tuesday and Thursday), China (Wednesday and Thursday) and Europe (Thursday and Friday). On balance, slightly softer prints are expected for most of these releases when compared to the previous data points. However, consensus expects US consumer confidence to pick up significantly in December.  Also of interest: harmonized inflation numbers from Spain and Italy on Friday, as low inflation remains an issue for ECB policy. Consensus expectations are for a small increase in the former and decrease in the latter.

Monday, 30 December

• Chile MPC minutes (Dec)
• US Pending Home Sales (Nov): consensus +1.0%, previous -0.6%
• Italy Business Confidence (Dec): consensus 99.0, previous 98.1

Tuesday, 31 December

• US Consumer Confidence (Dec): consensus 76.3, previous 70.4
• US Chicago PMI (Dec): consensus 61.0, previous 63.0
• US S&P Case Shiller Home Price Index (Oct): consensus +0.9%, previous +1.0%

Wednesday, 1 January

• China Manufacturing PMI (Dec): consensus 51.2yoy, previous 51.4yoy
• South Korea Trade Balance (Dec): consensus +3.6bn yoy, previous USD+4.8bn yoy
• Also interesting: Indonesia Trade Balance (Nov)

Thursday, 2 January

• US Manufacturing ISM Survey (Dec): consensus 56.9, previous 57.3
• US Construction Spending (Nov): consensus +0.6%, previous +0.8%
• US Initial Jobless Claims: consensus 345K, previous 338K
• Euro Area Manufacturing PMI (Dec, final): consensus 52.7, previous 52.7
• China HSBC PMI (Dec): consensus 50.5, previous 50.8
• UK Manufacturing PMI (Dec): consensus 58.4, previous 58.4
• Sweden PMI (Dec): consensus 55.2, previous 56.0
• Brazil Trade Balance (Dec): consensus USD+1.35bn, previous USD+1.74bn

Friday, 3 January

• US Fed speakers: Bernanke, Plosser (FOMC 2014 voter)
• Colombia MPC minutes (Dec)
• Spain Harmonized CPI (Dec, flash): consensus +0.4%yoy, previous +0.3%yoy
• Italy Harmonized CPI (Dec, flash): consensus +0.6%yoy, previous +0.7%yoy
• Switzerland Manufacturing PMI (Dec): consensus 56.2, previous 56.5
• UK Construction PMI (Dec): consensus 62.0, previous 62.6
• Also interesting: US Motor Vehicle Sales (Dec), UK Mortgage Approvals (Nov), UK Nationwide House Prices (Dec)

Saturday, 4 January

• US Fed speakers: Dudley (FOMC 2013, 2014 voter), Rosengren (FOMC 2013 voter), Plosser (FOMC 2014 voter) and Kocherlakota (FOMC 2014 voter

Source: GS

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/0aJWD5lJbI8/story01.htm Tyler Durden

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

Austerity and crisis are not negative–they are the only dynamics that force smart thinking and the re-alignment of values, resources and strategic goals.

Unsurprisingly, the status quo position on austerity (real or imagined)–that it's terribly, horribly negative–is precisely backwards: austerity is the one essential positive motivator of productive strategic planning, prioritization and decision-making.

By austerity, I mean a broad-based definition: when resources are not up to the demands of the status quo. In other words, austerity is a relative term; for the household accustomed to a lifestyle that requires $15,000 a month, a cut to $10,000 a month is a drastic austerity budget, even though the $10,000 per month budget is insanely bloated to those managing on $3,000 per month.

The dynamic of austerity being required to force productive planning, prioritization and decision-making is scale-invariant: that is, it applies to every bit of the spectrum, from individuals to couples to households to small enterprises to communities to corporations to government agencies to nation-states.

For a military machine accustomed to expanding outlays and a $700+ billion annual budget, a cut of $50 billion is viewed as extreme austerity–even though it wasn't that long ago that the Pentagon budget was well under $500 billion.

An insightful article in the latest issue of Foreign Affairs describes how austerity has in the past forced the U.S. military to realign resources with goals via hardnosed, realistic, productive strategic thinking: How Budget Crises Have Improved U.S. Strategy.

When there is funding for every program and response to every potential threat, money is thrown around without regard to strategic planning, which is the process of assessing and ranking risks and threats and formulating a strategy that prioritizes resources and goals: in other words, smart planning.
the author of the essay neatly summarizes this process:
 

"In World War II, the paucity of the resources on hand actually forced U.S. policymakers to make tough but smart choices. A combination of austerity and crisis helped forge a core strategic concept, a new threat assessment, an appreciation of the indissoluble links between interests and values, and a calibration of priorities."

The dynamic of austerity coupled with crisis is the key driver of smart, strategic planning for individuals, households, communities, organizations, enterprises and nations; without austerity/crisis-driven assessment, prioritizing and planning, resources are squandered on impractical, low-yield distractions that have been jumbled up with key priorities by muddled, politically-expedient thinking.

If you have enough borrowing power to fund everything that every politically potent constituency wants, you are ontologically (inherently) ill-prepared for crisis. Muddled strategic planning leads to a confusion of competing priorities, none of which are integrated in a grand strategy with clear goals, priorities and planning.

Historical analogies abound; here is one. In a previous Musings (When Risk Is Separated From Gain, The System Is Doomed, Musing Report 47, 2011), I discussed Japan's muddled plan for the Midway campaign in World War II, a convoluted political marriage of competing Army and Navy plans. Rather than clarify the goal and prioritize the means to accomplish it, the Japanese high command attempted to please every key power center by combining each constituency's ideas and goals into a complex tactical plan that worked politically but which was militarily diffused and internally inconsistent. Junior officers' well-founded critiques of the plan were suppressed by top brass fearing political blowback.

The end result was a completely avoidable military catastrophe that essentially ended Japan's hope of prevailing in the war: four aircraft carriers sunk, the cream of the Navy's carrier pilot cadre lost. These losses forced a shift of strategy from expansion and victory to defense and a vain hope for a favorable settlement of hostilities.

This failure to force clear strategic thinking was the natural result of Japan's string of early victories, which generated a widespread hubris in the leadership, i.e. the belief that available resources could magically accomplish any goal conjured by central command.

This is a precise analogy to the U.S., not just militarily, but every facet of its society and economy: politically expedient, kick-the-can-down-the-road "no limits on anything" means no strategy, no priorities, no planning and ultimately, no clear thinking at the top, which then guarantees complete failure.

This perfectly captures the essence of the Affordable Care Act (ACA or ObamaCare) monstrosity: a program intended to satisfy or placate every politically powerful constituency is a muddled, complicated mess doomed to systemic failure on multiple levels.The ACA was ultimately a political plan which ignored (thanks to a complete absence of austerity) the actual resources of the nation and its bloated, inefficient, perverse-incentivized healthcare system.

Austerity and crisis are not negative–they are the only dynamics that force smart thinking and the re-alignment of values, resources and strategic goals. Trying to fund everything to please or placate every powerful constituency ends up failing everyone in catastrophic fashion.

This essay was drawn from Musings Report 51, one of the weekly reports sent exclusively to subscribers and major contributors (i.e. those who contribute $50 or more annually).

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/p_u7DaIVJRM/story01.htm Tyler Durden

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

Austerity and crisis are not negative–they are the only dynamics that force smart thinking and the re-alignment of values, resources and strategic goals.

Unsurprisingly, the status quo position on austerity (real or imagined)–that it's terribly, horribly negative–is precisely backwards: austerity is the one essential positive motivator of productive strategic planning, prioritization and decision-making.

By austerity, I mean a broad-based definition: when resources are not up to the demands of the status quo. In other words, austerity is a relative term; for the household accustomed to a lifestyle that requires $15,000 a month, a cut to $10,000 a month is a drastic austerity budget, even though the $10,000 per month budget is insanely bloated to those managing on $3,000 per month.

The dynamic of austerity being required to force productive planning, prioritization and decision-making is scale-invariant: that is, it applies to every bit of the spectrum, from individuals to couples to households to small enterprises to communities to corporations to government agencies to nation-states.

For a military machine accustomed to expanding outlays and a $700+ billion annual budget, a cut of $50 billion is viewed as extreme austerity–even though it wasn't that long ago that the Pentagon budget was well under $500 billion.

An insightful article in the latest issue of Foreign Affairs describes how austerity has in the past forced the U.S. military to realign resources with goals via hardnosed, realistic, productive strategic thinking: How Budget Crises Have Improved U.S. Strategy.

When there is funding for every program and response to every potential threat, money is thrown around without regard to strategic planning, which is the process of assessing and ranking risks and threats and formulating a strategy that prioritizes resources and goals: in other words, smart planning.
the author of the essay neatly summarizes this process:
 

"In World War II, the paucity of the resources on hand actually forced U.S. policymakers to make tough but smart choices. A combination of austerity and crisis helped forge a core strategic concept, a new threat assessment, an appreciation of the indissoluble links between interests and values, and a calibration of priorities."

The dynamic of austerity coupled with crisis is the key driver of smart, strategic planning for individuals, households, communities, organizations, enterprises and nations; without austerity/crisis-driven assessment, prioritizing and planning, resources are squandered on impractical, low-yield distractions that have been jumbled up with key priorities by muddled, politically-expedient thinking.

If you have enough borrowing power to fund everything that every politically potent constituency wants, you are ontologically (inherently) ill-prepared for crisis. Muddled strategic planning leads to a confusion of competing priorities, none of which are integrated in a grand strategy with clear goals, priorities and planning.

Historical analogies abound; here is one. In a previous Musings (When Risk Is Separated From Gain, The System Is Doomed, Musing Report 47, 2011), I discussed Japan's muddled plan for the Midway campaign in World War II, a convoluted political marriage of competing Army and Navy plans. Rather than clarify the goal and prioritize the means to accomplish it, the Japanese high command attempted to please every key power center by combining each constituency's ideas and goals into a complex tactical plan that worked politically but which was militarily diffused and internally inconsistent. Junior officers' well-founded critiques of the plan were suppressed by top brass fearing political blowback.

The end result was a completely avoidable military catastrophe that essentially ended Japan's hope of prevailing in the war: four aircraft carriers sunk, the cream of the Navy's carrier pilot cadre lost. These losses forced a shift of strategy from expansion and victory to defense and a vain hope for a favorable settlement of hostilities.

This failure to force clear strategic thinking was the natural result of Japan's string of early victories, which generated a widespread hubris in the leadership, i.e. the belief that available resources could magically accomplish any goal conjured by central command.

This is a precise analogy to the U.S., not just militarily, but every facet of its society and economy: politically expedient, kick-the-can-down-the-road "no limits on anything" means no strategy, no priorities, no planning and ultimately, no clear thinking at the top, which then guarantees complete failure.

This perfectly captures the essence of the Affordable Care Act (ACA or ObamaCare) monstrosity: a program intended to satisfy or placate every politically powerful constituency is a muddled, complicated mess doomed to systemic failure on multiple levels.The ACA was ultimately a political plan which ignored (thanks to a complete absence of austerity) the actual resources of the nation and its bloated, inefficient, perverse-incentivized healthcare system.

Austerity and crisis are not negative–they are the only dynamics that force smart thinking and the re-alignment of values, resources and strategic goals. Trying to fund everything to please or placate every powerful constituency ends up failing everyone in catastrophic fashion.

This essay was drawn from Musings Report 51, one of the weekly reports sent exclusively to subscribers and major contributors (i.e. those who contribute $50 or more annually).

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/p_u7DaIVJRM/story01.htm Tyler Durden

Just barely hours after we covered the second deadly explosion in the southern Russian city of Volgograd in as many months, this time in its packed train station, the city was rocked by yet another suicide bombing in what is clearly a terrorist campaign to spook Russia and its Sochi winter games visitors just over a month ahead of the olympics.  This time, a bomb ripped apart a trolleybus killing all 14 people aboard, and wounding another 28 in the second deadly attack blamed on suicide bombers.  According to Reuters, “Investigators said they believed a male suicide bomber set off the blast, a day after a similar attack killed at least 17 in the main rail station of a city that serves as a gateway to the southern wedge of Russian territory bounded by the Black and Caspian Seas and the Caucasus mountains.” Even Putin, so far non-committal, is starting to take these daily escalations seriously: “President Vladimir Putin, who has staked his prestige on February’s Sochi Games and dismissed threats from Chechen and other Islamist militants in the nearby North Caucasus, ordered tighter security nationwide after the morning rush-hour blast.”

Sunday’s attack was the deadliest to strike the ethnic Russian heartlands since January 2011, when a male suicide bomber from the North Caucasus killed 37 people in the arrivals hall of a busy Moscow airport.

There is practically no question that the two blasts were coordinated and arranged by the same group: the bomb used was packed with “identical” shrapnel to that in the rail station, indicating they may have been made in the same place and supporting suspicions the bombings were linked, said Vladimir Markin, a spokesman for the investigators. Health Ministry spokesman Oleg Salagai said 14 people were killed and 28 wounded in the bombing on Monday.

And while this could merely be the retaliation by Saudi Arabia, as we reported yesterday, for Russia’s foiling of its Syrian plans and thus merely chess in the grand scheme of thing, to the people on the ground the terrorist escalations are all too real.

A Reuters journalist saw the blue and white trolleybus – a bus powered by overhead electric cables – reduced to a twisted, gutted carcass, its roof blown off and bodies and debris strewn across the street. Windows in nearby apartments were blown out by the explosion, which investigators called a “terrorist act”.

 

“For the second day, we are dying. It’s a nightmare,” a woman near the scene said, her voice trembling as she choked back tears. “What are we supposed to do, just walk now?”

 

“There was smoke and people were lying in the street,” said Olga, who works nearby. “The driver was thrown a long way. She was alive and moaning … Her hands and clothes were bloody,”

 

There was no immediate claim of responsibility.

Perhaps one should seek a comment from Prince Bandar, who during the summer of 2013 implicitly threatened Putin that “the terrorist threat is growing in light of the phenomena spawned by the Arab Spring. We have lost some regimes. And what we got in return were terrorist experiences, as evidenced by the experience of the Muslim Brotherhood in Egypt and the extremist groups in Libya…. As an example, I can give you a guarantee to protect the Winter Olympics in the city of Sochi on the Black Sea next year. The Chechen groups that threaten the security of the games are controlled by us…“

And sure enough, these same Chechen groups have made it quite clear that Saudi Arabia is displeased:

In an online video posted in July, the Chechen leader of insurgents who want to carve an Islamic state out of the swathe of mainly Muslim provinces south of Volgograd, urged militants to use “maximum force” to prevent the Games from going ahead. “Terrorists in Volgograd aim to terrorize others around the world, making them stay away from the Sochi Olympics,” said Dmitry Trenin, an analyst with the Moscow Carnegie Centre.

So now the world looks to Putin:

In power since 2000, Putin secured the Games for Russia and has staked his reputation on a safe and successful Olympics, even freeing jailed opponents including oil tycoon Mikhail Khodorkovsky and the Pussy Riot punk band to remove a cause for international criticism at the event.

 

Putin was first elected after winning popularity for a war against Chechen rebels, but attacks by Islamist militants whose insurgency is rooted in that war have clouded his 14 years in power and now confront him with his biggest security challenge.

 

Police said additional officers were being deployed to railway stations and airports nationwide after the bombing at the Volgograd rail station on Sunday, but the attacks raised questions about the effectiveness of security measures.

 

The police force in Volgograd, a city of a million people on the west bank of the river Volga, has been depleted as some 600 officers were redeployed to Sochi to tighten security around Olympic sites, a police officer told Reuters.

 

More attacks can be expected before the Olympics and cities in southern Russia where the Games are not being held are easier targets than Sochi, said Alexei Filatov, a prominent former member of Russia’s elite anti-terrorism force, Alfa.

 

“The threat is greatest now because it is when terrorists can make the biggest impression,” he said. “The security measures were beefed up long ago around Sochi, so terrorists will strike instead in these nearby cities like Volgograd.”

Perhaps the bigger question is whether Russia will continue to focus on the pawns in the terrorist campaign, or finally shift its attention to the puppetmaster controlling, arming and funding the Islamist militants in the region: one of America’s fondest (at least until recently) allies in the region.

Reuters’ video coverage of the blast is below.

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/9-3fzLTRWDo/story01.htm Tyler Durden

• Americans on Wrong Side of Income Gap Run Out of Means to Cope (BBG)
• Michael Schumacher battles for life after ski fall (Reuters)
• Professors for hire: Academics Who Defend Wall St. Reap Reward (NYT)
• Chinese police kill eight in Xinjiang ‘terrorist attack’ (Reuters)
• How to Prevent a War Between China and Japan (BBG)
• Unemployment Benefits Lapse Severs Lifeline for Longtime Jobless (BBG)
• Japan’s homeless recruited for murky Fukushima clean-up (Reuters)
• China Local-Government Debt Surges to $3 Trillion (WSJ)
• How unexpected: Britons less inclined to pay down mortgage debt (Reuters)
• Paschi Volatile as Owner Wins $4.1 Billion Sale Delay (BBG)
• Schauble: “Low interest rates cannot continue for ever” (Reuters)
• China Says Abe Closed Door to Meetings After Visiting Shrine (BBG)
• Home Prices Back at Peaks in Some Areas (WSJ)
• Turkey Is Biggest Loser in Stocks as Erdogan Crisis Persists (BBG)

 

Overnight Media Digest

WSJ

* Saudi Arabia pledged $3 billion to bolster Lebanon’s armed forces, in a challenge to the Iranian-allied Hezbollah militia’s decades-long status as Lebanon’s main power broker and security force.

* The housing recovery remains uneven as cities that were spared in bust soar, but many others struggle.

* Sales of long-term “junk” bonds are lagging and prices are down, the latest sign that investors are flocking to shorter-term securities that are less vulnerable to rising interest rates.

* Blackstone Group is spending $200 million for preferred stock of struggling footwear company Crocs.

* Amazon.com isn’t that forthcoming with details about its Prime program, but that doesn’t diminish its importance.

* The Securities and Exchange Commission is pushing life insurers to disclose the potential cost if they are forced to halt use of controversial “captive” entities, according to regulatory filings and people familiar with the matter.

* Acer Inc said Monday that three senior executives had recently left the company and some of them won’t be replaced as the embattled personal-computer maker tries to keep costs low.

* As Chesapeake Energy Corp burned through cash in recent years, it raised billions of dollars by selling pieces of its empire: oil and gas properties, pipelines, even royalties from wells yet to be drilled.

* Technology giants Google Inc and Apple Inc are about to expand their battle for digital supremacy to a new front: the automobile.

Next week at the Consumer Electronics Show in Las Vegas, Google and German auto maker Audi AG plan to announce that they are working together to develop in-car entertainment and information systems that are based on Google’s Android software, people familiar with the matter said.

 

FT

Financial regulators in the UK have warned that consumers are increasingly being targeted by “dubious” firms offering investment opportunities in graphene, the carbon-based wonder material with a vast range of potential applications.

Activist hedge funds are fighting for the right to pay bonuses to directors that they place on corporate boards.This comes as 33 US companies have amended their bylaws to disqualify any directors that receive payment from outsiders, in the hope of deterring attacks by activist investors such as Carl Icahn, Bill Ackman and Daniel Loeb.

David Cameron has quietly dropped his support for a new generation of “garden cities” in a move that raises questions over the government’s commitment to tackling Britain’s escalating housing shortage.

Europe is ripe for a surge of leveraged buyout restructurings as banks sell their worst-performing loans to “distress investors” eager to take over the borrowers.

The gold mining sector is braced for asset writedowns and a fall in the amount of reserves in the ground after the precipitous drop in the price of the metal this year

 

NYT

* Emails and other confidential documents show that JPMorgan Chase and Co escalated what it called its “Sons and Daughters” hiring program, adding the children of China’s ruling elite, and tracking how those hires translated into business deals with the Chinese government.

* Democrats are hoping that a push to raise the federal minimum wage and a campaign to place state-level wage proposals on the ballot will help their chances in hotly contested congressional races.

* Media conglomerate Time Warner Inc hopes to spin off its Time Inc unit into a separate public company within the next six months.

* The United States, the country that invented the Internet, is falling dangerously behind in offering high-speed, affordable broadband service to businesses and consumers, according to technology experts and an array of recent studies.

* Twitter Inc is trading at a much higher valuation than proven Internet powerhouses like Facebook Inc and Google Inc. The company, which has released no major news or financial information since its initial public offering, has not stopped investors’ exuberance about its potential to eventually bring in billions of dollars from advertising, coupled with Wall Street’s penchant for hopping onto any fast train, from propelling the shares to nosebleed levels.

 

Canada

THE GLOBE AND MAIL

* Toronto Hydro Chief Executive Anthony Haines said on Sunday that he expected power would be fully restored in the city on Monday.

* Hundreds of people filed into a Montreal funeral home on Sunday to pay their respects to reputed Mafia boss Vito Rizzuto. Rizzuto, the head of a criminal organization with reach across Canada and beyond, died of natural causes in a Montreal hospital last Monday at age 67.

Reports in the business section:

* Big companies such as Royal Bank of Canada and Manulife Financial Corp are getting serious about cutting real estate costs by giving employees less room. That could have a profound impact on the market as developers plan millions of square feet of new space.

* Kinross Gold
Corp will complete a critical study on its Tasiast gold mine in the first quarter of the new year, a step that will determine whether the company will expand its troubled mine in the Mauritanian desert.

* The Mutual Fund Dealers Association of Canada, the watchdog for Canada’s mutual fund dealers, is searching for ways to be less burdensome on its members as increased regulation and changing investor demands reshape a maturing business.

* Aimia Inc is poised to enter a new era in 2014 with Toronto-Dominion Bank as its new partner and long-standing ally CIBC both offering credit cards linked to Aimia’s Aeroplan rewards. However, current customers of CIBC Aerogold Visa cards won’t initially see any change and the companies are saying it won’t be until mid-2014 until the transition is completed.

NATIONAL POST

* The federal government is working on a new way to warn Canadians about the need to protect themselves from the dangers of frigid weather. When the new system is introduced, perhaps as early as in 2014, Canadians will no longer see separate wind chill warnings in Environment Canada forecasts or on its website.

* A top United Nations official is praising Prime Minister Stephen Harper government’s foreign policy initiative to end forced marriage of young girls, even if Canada won’t fund projects that would allow victims access to an abortion. The Conservative government’s practice of not allowing aid dollars to go towards organizations that offer abortions to victimized girls or war-rape victims has sparked heated criticism in some quarters.

FINANCIAL POST

* Tech startups are increasingly inflating job titles to attract much-needed workers, says AdZuna, a young British company that surveys classified ads in the UK, Canada, South Africa, Germany and Brazil.

* Consensus is forming that 2014 will be the economic turning point for the United States and that is traditionally good news for Canada. However, Canada has some headwinds that, until addressed, will likely decouple Canada’s growth from its neighbor’s in the short and medium term

 

China

CHINA SECURITIES JOURNAL

– A front-page editorial emphasizes the importance of the State Council’s recent policy guidelines on protecting small- and medium-sized investors, saying that increased protections are crucial to the healthy development of China’s capital markets.

FINANCIAL NEWS

– China Postal Express & Logistics Co., Ltd withdrew its application for an initial public offering, becoming the latest of 292 companies that have withdrawn applications for IPOs on the Shanghai and Shenzhen stock exchanges.

SHANGHAI SECURITIES NEWS

– A front-page editorial praises the State Council’s policy document on protecting small and medium-sized investors as a historical milestone, particularly the focus on increasing the influence of capital market investors relative to companies raising capital in the market.

CHINA DAILY

– China can play a bigger role in the Arctic, but China is still “far from becoming a power player in the Arctic”, said the head of the polar strategic research division under the Polar Research Institute of China.

PEOPLE’S DAILY

– President Xi Jinping joined diners for dumplings recently, showing his closeness to the people, said a commentary in the paper that acts as the party’s mouthpiece. Such a man-of-the-people work ethic will lead to the satisfaction of the masses and assist in achieving the “China Dreams”, the paper said.

 

Britain

The Telegraph

GOVERNMENT COULD SELLOFF REMAINING LLOYDS STAKE IN 2014

The Government could complete the privatisation of Lloyds Banking Group in 2014 with the sale of the state’s remaining 33 percent holding in the lender, according to sources close to the process.

BURBERRY AND SAINSBURY’S SEENS AS POSSIBLE TAKEOVER TARGETS

Top British companies such as Burberry, J Sainsbury and Chemring have been tipped as takeover targets next year by investment bank UBS

The Guardian

CABLE QUIZES HUNT OVER NHS RISK FROM PRIVATISED PLASMA FIRM

The business secretary, Vince Cable, has asked his cabinet colleague Jeremy Hunt at the Department of Health for assurances that the recent privatisation of the state-owned blood plasma company will not leave the NHS short of life-saving products.

BATTLE FOR FUTURE OF SKIES: BOEING DREAMLINER V AIRBUS A380

Despite a troubled birth a year ago, Boeing’s flagship plane has overtaken the larger A380 in terms of orders.

The Times

COAL PLANTS WILL STAY SHUT DESPITE THREAT OF BLACKOUTS

The Government has ruled out challenging European environmental legislation that has forced the closure of many of Britain’s biggest coal plants and left the country at risk of blackouts within two years.

WE DON’T WANT YOUR HELP, AGENCIES TELL BIG TOBACCO

Tobacco companies should no longer be allowed to fund raids on premises suspected of selling illegal cigarettes, or sponsor the training of sniffer dogs, under new guidelines to be issued next year.

The Independent

INSURANCE BROKERS MAKE CLAIM FOR UNFAIR TREATMENT BY FCA

Britain’s top regulator has been accused of backtracking on a promise to introduce “proportionate” red-tape on insurance brokers after launching 10 industry reviews in nine months.

CBI BOSS CALLS ON FIRMS TO PAY STAFF MORE THAN MINIMUM WAGE

The head of the CBI will today call for companies to start paying their staff more, saying the large number of people working for the minimum wage is a “serious challenge” that business and the Government must address.

 

Fly On The Wall 7:00 AM Market Snapshot

ANALYST RESEARCH

Upgrades

Disney (DIS) upgraded to Buy from Neutral at Guggenheim

Downgrades

Myriad Genetics (MYGN) downgraded to Underperform at JMP Securities
POZEN (POZN) downgraded to Neutral from Strong Buy at Ascendiant

Initiations

Entergy (ETR) coverage resumed with a Neutral at Goldman
Ocera Therapeutics (OCRX) initiated with a Buy at Stifel
StoneCastle (BANX) initiated with a Market Perform at JMP Securities
Westmoreland Coal (WLB) initiated with a Buy at Brean Capital

HOT STOCKS

Crocs (CROX) entered financial partnership with Blackstone (BX), raised buyback plan to $350M, CEO to retire in April
Abbott (ABT) to pay $5.475M to settle DOJ claims
Genzyme (SNY) received Complete Response Letter from FDA on Lemtrada application

NEWSPAPERS/WEBSITES

• Investors are homing in on shares seen as bargains, a shift that bulls say could keep this year’s epic stock rally going in 2014. The “inexpensive” category includes those with relatively low valuations based on earnings forecasts and increasing estimated profits (DAL, BIIB, AAPL), the Wall Street Journal reports 
• BMW and Toyota (TM) agreed to develop a joint platform for sports cars, and with two different vehicles, Reuters reports
• For investors in internet stocks, this year’s gains haven’t been anxiety-free, thanks to uncomfortable memories of the 1999 Internet bubble and subsequent bust. Market strategists and tech experts say the comparison is overblown, Reuters reports
• U.S. regulators’ Dodd-Frank rules properly balance Wall Street’s pursuit of profits with the public’s need for a stable financial system, said Commodity Futures Trading Commission Chairman Gary Gensler, following the American Bankers Association’s court challenge of the Volcker Rule, Bloomberg reports
• Five years after the equity bull market began, U.S. investors returned to stocks in 2013, just in time for the best relative returns versus bonds on record. S&P’s 500 Index rose 29%, beating government debt by 32 percentage points, the widest spread s
  ince at least 1978, Bloomberg reports

BARRON’S

Coca-Cola (KO) could rise 20% or more in 2014
Air France-KLM (AFLYY) shares could rise 25%
Loral Space & Communications (LORL), Wendy’s (WEN), Carmike Cinemas (CKEC), Crocs (CROX), Orient Express Hotels (OEH), Outerwall (OUTR) mentioned positively as small caps
Staple stocks such as Wal-Mart (WMT), Procter & Gamble (PG), Coca-Cola (KO) a good defensive bet against risk of market downswing
Cisco Systems (CSCO), EMC (EMC), NetApp (NTAP), F5 Networks (FFIV), VMware (VMW) underperformed in 2013, likely to “continue to suffer” in 2014
Giant Interactive (GA), China Finance Online (JRJC), Noah Holdings (NOAH) are “stealth” China real estate plays

SYNDICATE

Cobalt (CIE) files automatic mixed securities shelf
Peregrine (PPHM) files to sell $100M of common, preferred stock

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/SEjjPLO0gMI/story01.htm Tyler Durden