Complete Hedge Fund Q3 13F Holdings And Position Changes Summary

Here is a summary of the key stock additions, sales, initiations and liquidations conducted by the most prominent US hedge funds in the third quarter.

APPALOOSA

  • Boosted Stakes in HCA, HUN, CE, LCC, TEX in 3Q
  • Cut Stakes in SPY, BRCM, BAC, HTZ, SNDK in 3Q
  • Exited Stakes in CMCSA, MSFT, WFT, CHKP, NTAP in 3Q
  • Took Stakes in JCP, FCX, INGR, CYH, THC in 3Q

BERKSHIRE HATHAWAY

  • Boosted Stakes in SU, V.N, USB, BK in 3Q
  • Cut Stakes in COP, DTV, GSK, SNY in 3Q

BP CAPITAL

  • Boosted Stakes in PXD, WFT, HAL, VLO, APC in 3Q
  • Exited Stakes in APA, WLL, SU, BCEI, SM in 3Q
  • Cut Stakes in GDP, TSO, PSX, BAS, YCS in 3Q
  • Took Stakes in XOM, ATHL, EQT, XON in 3Q

ETON PARK

  • Cut Stakes in FOXA, DG, DLTR, ELN, EBAY, BIDU in 3Q
  • Exited Stakes in NLSN, PCLN, ULTA, VC, CHTR in 3Q
  • Took Stakes in FDO, STZ, BID, EQIX, AUCN, MNK in 3Q

FAIRHOLME CAPITAL

  • Cut Stakes in JOE, C, WFC, HIG in 3Q
  • Boosted Stakes in SHLD in 3Q

GATES FOUNDATION

  • Boosted Stakes in BRK/B, BP in 3Q
  • Took Stakes in APD in 3Q

GREENLIGHT CAPITAL INC

  • Boosted Stakes in WPX, OIS, SPR in 3Q
  • Cut Stakes in AET, AHL, LM, NCR, CI in 3Q
  • Exited Stakes in OAK, STBZ, CBF in 3Q
  • Took Stakes in XON, TPX, NVR in 3Q

HIGHFIELDS

  • Boosted Stakes in MSFT, FDX, VOD, QCOM, Vodafone 3Q
  • Cut Stakes in FOXA, SLM, UPS, THI, ups, aet in 3Q
  • Exited Stakes in ILMN, ORCL, JPM, LPS, ORCL TEVA 3Q
  • Took Stakes in ASH, NWSA, MU, CF, MU, NWSA in 3Q

ICAHN ASSOCIATES

  • Boosted Stakes in FDML, IEP, CHK, NUAN in 3Q

LONE PINE CAPITAL

  • Boosted Stakes in MON, QCOM, DG in 3Q
  • Exited Stakes in ISRG, RL, HTZ, GRA, TMO in 3Q
  • Took Stakes in BIDU, MA, DVA, P, AMZN in 3Q
  • Cut Stakes in GOOG, PUN, EBAY, CHTR, HRB in 3Q

OMEGA ADVISORS

  • Boosted Stakes in SD, C, EXXI, CZR, PMT in 3Q
  • Cut Stakes in UNE, KMI, ESRX, QCOM, WMB in 3Q
  • Exited Stakes in OXY, WFC, CROX, ASNA, ORCL in 3Q
  • Took Stakes in S, FCX, HCA, RLGY, CMCSK in 3Q

PAULSON

  • Boosted Stakes in VOD, FDO, KOG, MTB, AET in 3Q
  • Cut Stakes in RLGY, CIE, LIFE, IOC, LEAP in 3Q
  • Exited Stakes in MJN, ELN, FRP in 3Q
  • Took Stakes in TWC, S, MNK, FDX, WLL in 3Q

PERSHING SQUARE

  • Boosted Stake in APD in 3Q
  • Exited Stake in MATX, JCP in 3Q
  • Cut Stakes in GGP, PG, CP in 3Q

RELATIONAL

  • Boosted Stakes in SPW, TKR, HES, PM., TKR, BG in 3Q
  • Cut Stakes in HPQ, DGX, SPY, MDY in 3Q
  • Exited Stakes in A, EMN, TEX, IWS in 3Q
  • Took Stakes in TLM, VSI in 3Q

SAC CAPITAL

  • Boosted Stakes in YHOO, APD, ISRG, ISO in 3Q
  • Cut Stakes in CLR, AMZN, SLB, FB, GPS in 3Q
  • Exited Stakes in PETM, MT, GDX, PF in 3Q
  • Took Stakes in PNRA, ZNGA, TRN, NOK, PRGO in 3Q

SOROS FUND

  • Exited Stakes in DAL, UAL, SFLY, ACTG in 3Q
  • Boosted Stakes in CF, DXJ, PVA, SEMG in 3Q
  • Cut Stakes in GOOG, HO, AIG, STZ in 3Q
  • Took Stakes in MSFT, FDX, TEVA, HAL in 3Q

THIRD POINT LLC

  • Boosted Stakes in BID, CCE, STZ, APC, CF in 3Q
  • Cut Stakes in YHOO, DIS, TMO, COG, FOXA in 3Q
  • Exited Stakes in TIF, WCC, WMB in 3Q
  • Took Stakes in FDX, GOOG, EQT, XON, ATVI in 3Q

TRIAN FUND MANAGEMENT LP

  • Boosted Stakes in LM in 3Q
  • Cut Stakes in IR in 3Q
  • Exited Stakes in STT, BID in 3Q

Source: RanSquawk


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/rMhg9esxPjg/story01.htm Tyler Durden

S&P 1800 Or Bust As Futures Ramp Continues

The overnight global scramble to buy stocks, any stocks, anywhere, continued, with the Nikkei soaring higher by 2% as the USDJPY rose firmly over 100, to levels not seen since May as the previously reported speculation that more QE from the BOJ is just around the corner takes a firm hold. Sentiment that the liquidity bonanza would accelerate around the world (with possibly more QE from the ECB) was undented by news of a surge in Chinese short-term money market rates or the Moody’s one-notch downgrade of four TBTF banks on Federal support review. The release of more market-friendly promises from China only added fuel to the fire and as a result S&P futures are now just shy of 1800, a level which will almost certainly be taken out today as the multiple expansion ramp continues unabated. At this point absolutely nobody is even remotely considering standing in front of the centrally-planned liquidity juggernaut that has made “market” down days a thing of the past.

Market Re-Cap

Stocks traded mixed in Europe this morning, with the FTSE-100 in the UK outperforming where Antofagasta traded up over 2%, recovering from losses made yesterday and Hargreaves Lansdown, which was initiated with an overweight rating by JPMorgan Cazenove advanced 1%. Analysts noted that the company’s product offering positions it well to continue to exploit structural growth opportunities in the UK for many years to come. Broad based JPY weakness which ensued overnight on Thursday following comments from Japanese Finance Minister Aso and in turn saw USD/JPY move above 100.00 yesterday for the first time since early Sep continues to be observed across the board today. The price action going forward is expected to remain supported by large option expiries at 100.00 level, good sized strikes are also said to expire next week. Overall, the price action was somewhat muted, but volumes are expected to pick up, as market participants digest the release of the latest Empire Manufacturing and Import Price data reports. Of note, various equity options and futures expiries may result in sharp, albeit brief volume spikes.

US data docket

  • US: Empire State Manufacturing Index, cons 5.00 (8:30)
  • US: Industrial production m/m, cons -0.4% (9:15)

Overnight news bulletin from RanSquawk and Bloomberg:

  • China party reform document: to encourage overseas investment by individuals and companies, to ease one-child policy.
  • Fitch said China is only at the start of a busy policy making calendar leading up to the national people’s congress in March.
  • EU says no Euro-area 2014 budget plan in serious non-compliance. Calls on Italy to take necessary measures on 2014 budget and says that Spain may miss 2014 budget-deficit target.
  • Treasuries advance, with all maturities headed for a weekly gain, after Yellen yesterday signaled she would continue with stimulus and downplayed risks that QE is inflating asset price bubbles.
  • Yellen left open the possibility that the central bank could reduce the interest rate on reserves as a way of aiding the economy
  • Germany argued against a joint backstop for struggling euro-area banks as European finance ministers renewed their debate on how to handle the costs of managing failed lenders
  • China’s Communist Party pledged to loosen its family planning policy, allowing couples to have two children if either parent is an only child; will also abolish the practice of  re-education through labor, allow non-state  investment in state projects, Xinhua reports
  • China’s benchmark money-market rate jumped the most in almost five months as the central bank drained cash from the financial system for a second week
  • Americans seeking cheap insurance on the Obamacare health exchanges may be in for sticker shock if they get sick next year, as consumers trade lower premiums for out-of-pocket costs that can top $6,000 a person
  • Just hours after Obama announced a one-year reprieve for canceled insurance plans, industry executives warned it would cost taxpayers and consumers while state officials split on their support for it
  • Sovereign yields mostly higher, EU peripheral spreads widen. Asian and European stocks, U.S. equity-index futures higher. WTI crude, copper and gold lower

Asian Headlines

China party reform document: to encourage overseas investment by individuals and companies, to ease one-child policy.
– To greatly reduce government intervention in resource allocation
– To scrap residence restrictions in small cities and townships.
– To lift restrictions on residence registration in orderly manner in mid-sized cities.

Fitch said China signals long term reform, but implementation is key. Fitch said China is only at the start of a busy policy making calendar leading up to the national people’s congress in March.

Japanese Economy Minister Amari says trying to avoid new debt issuance for coming stimulus package.

EU & UK Headlines

EU says no Euro-area 2014 budget plan in serious non-compliance. Calls on Italy to take necessary measures on 2014 budget and says that Spain may miss 2014 budget-deficit target. EU’s Rehn said that government debt set to stabilise, economy at turning point on road to recovery.
Eurozone CPI (Oct F) Y/Y 0.7% vs. Exp. 0.7% (Prev. 0.7%)
Eurozone CPI (Oct) M/M -0.1% vs. Exp. -0.1% (Prev. 0.5%)
Eurozone CPI Core (Oct F) Y/Y 0.8% vs Exp. 0.8% (Prev. 0.8%)

According to sources, potential buyers of Spain’s rescued banks, which include foreign investors, are pressuring the government to sweeten sales with more state aid.
ECB says banks to repay EUR 3.155bln from 1st 3y LTRO and EUR 431mln from 2nd 3y LTRO.

US Headlines

President Obama, trying to quell a growing furor over the rollout of his health care law, bowed to bipartisan pressure on Thursday and announced a policy reversal that would allow insurance companies to temporarily keep people on health plans that were to be cancelled under the new law because they did not meet minimum standards.

US Senate Banking Committee could vote on Yellen nomination for Fed chair as early as next week, according to a committee aide.

Equities

Stocks moved higher in recent trade, supported by the release of China party reform document which revealed that the country is to encourage overseas investment by individuals and companies, to ease one-child policy. Even though the meeting by Chinese leaders concluded earlier in the week, lack of details on highly-awaited reforms following the meeting initially weighed on the sentiment as market participants questioned any immediate action by China to spur growth.

Moody’s concluded a review of eight large US banks; said outlook stable on all eight bank holdings and their main operating units; Moody’s cut; Goldman Sachs long term senior debt to Baa1 from A3, JP Morgan long term senior debt to A3 from A2, Bank of New York Mellon long term senior debt to A1 from Aa3. Moody’s confirmed; Wells Fargo’s, Bank of America’s and Citigroup’s long term senior debt.

Also, NY Times reported that US is investigates currency trades by major banks. Although the investigation is at an early stage, authorities are already signaling the likelihood of a legal crackdown.

FX

Broad based JPY weakness which ensued overnight on Thursday following comments from Japanese Finance Minister Aso and in turn saw USD/JPY move
above 100.00 yesterday for the first time since early Sep continues to be observed across the board today. As a reminder, Japanese Finance Minister Aso said Japan must always be ready to send signal to markets to curb excessive and one sided FX moves. He added that it is important that Japan has intervention as FX policy option. The price action going forward is expected to remain supported by large option expiries at 100.00 level, good sized strikes are also said to expire next week.

Analysts at HSBC see more weakness for EUR going forward, though maintained year-end forecast of 1.3000 and 1.2400 for end-2014.

Elsewhere, SNB’s Danthine says CHF cap remains an essential instrument and low interest rates not without risks.

Commodities

Hedge fund Paulson & Co maintained its stake in SPDR Gold Trust, the world’s biggest gold-backed exchange-traded fund, in the Q3 after slashing its stake by more than half in the Q2 when prices fell.

China’s nickel pig iron output (NPI) is expected to rise by as much as one third in 2013, on strong demand and new capacity coming on stream, according to Antaike analyst Wang Chongfeng. Furthermore, China’s molybdenum sector is unlikely to find support in domestic demand but policy changes could bolster the market in the future.

US President Obama says we do not want Iran having nuclear weapons, would destabilise entire region and trigger nuclear arms race; leaving all options on table to deal with it.

Iran has only marginally expanded uranium enrichment capacity at Natanz plant since August according to a UN report. According to an official, the drop in supplies from Libya following protests at oil ports has cost the country USD 6bln.

Royal Dutch Shell and Sinopec are reported to be drilling exploration wells to test the shale potential of an unexplored area in central China.

DB’s Jim Reid complete the overnight recap:

Taking a look at markets this morning, demand for carry is the main theme as markets price in a lower probability of tapering in 2013. EM Asian sovereign credit is the main beneficiary of this theme overnight. Indonesian government bonds are around half a point to 1 point higher across the curve and Indo 5yr CDS is around 17bp tighter. Asian EM FX is a focus with selling of USDMYR (- 0.2%) and USDKRW (-0.1%). In the equities space, Asian stocks are performing strongly led by a 1.7% gain in the TOPIX after USDJPY broke through the 100 mark yesterday. USDJPY is currently hovering around 100.2 which is a near four-month high and it comes after comments from the Japanese finance minister yesterday that FX intervention is a tool at Japan’s disposal. Chinese Ashares are around 2.5% firmer after underperforming since the country’s Third Plenary meeting concluded on Tuesday and there is chatter that the government will release further detail on market reforms in the next few days.

Coming back to yesterday, again it was Yellen who provided the spark for markets. Indeed equities were headed south before Yellen spoke, but sentiment bottomed soon after the start of her testimony and the S&P500 rallied 0.6% in the hours following. 10yr USTs yields had a volatile day after rallying on the back of the Senate hearing; tracking higher again after a lacklustre 30yr auction before rallying again into the close to finish 1bp lower on the day at 2.69%. EM assets in EMEA and LATAM performed strongly across equities, FX and fixed income. After the NYSE close, Moody’s announced that it had concluded its review of eight large US banking groups and had decided to downgrade the credit rating of four bank holding companies: BONY Mellon, Goldman Sachs, JPMorgan Chase and Morgan Stanley. The downgrades reflected the rating agency’s view of the reduced probability of US government support for bank holding company debt after what Moody’s describes as “substantive progress in establishing a credible framework to resolve a large, failing bank”. Senior credit spreads on the affected banks jumped up a couple of basis points following the headline but there appeared to be minimal flow given the late timing of the Moody’s announcement. It will be interesting to see how sub-debt trades later today.

In terms of the data flow, there was some focus on the Euro area Q3 GDP. Euro Q3 GDP expanded at 0.1% QoQ which was in line with consensus (-0.4% YoY), but France was the underperformer (-0.1% vs 0% expected). Germany (+0.3%), Spain (+0.1%), Italy (-0.1%) growth numbers were all consistent with market expectations. DB’s Gilles Moec writes that the details of the French GDP report are depressingly consistent with the usual stereotypes of the French economy’s weaknesses, in particular a deeply negative contribution from net exports (-0.7 pp qoq, worst since Q1 2011). Back in the US, initial jobless claims for the week November 9 fell -2k to 339k after the prior week was revised up +5k to 341k. Though the latest week’s jobless claims were above the 330k expected, it had the effect of lowering the 4-week moving average -6k to 344k—which DB’s Joe Lavorgna points out is the lowest level since Oct 12 (338k).

Looking at today’s calendar, the focus returns to the data flow. Starting with Europe, final Eurozone CPI numbers will be published today. Recall that the preliminary number was -0.1% MoM, a number which preceded the ECB’s recent rate cut. Across the Atlantic, a number of important manufacturing-related data releases are scheduled. The first of these is the NY Fed Empire Manufacturing survey where consensus is expecting a bounce to 5.0 in November from 1.52 last month. Industrial production follows shortly afterwards, and wholesale inventories round out this week’s dataflow. In Europe today, there is some expectation that EU finance ministers will today agree on putting in place some form of national backstop for banks, before the ECB’s latest stress tests are completed next year.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/ieNgIg1jc6M/story01.htm Tyler Durden

S&P 1800 Or Bust As Futures Ramp Continues

The overnight global scramble to buy stocks, any stocks, anywhere, continued, with the Nikkei soaring higher by 2% as the USDJPY rose firmly over 100, to levels not seen since May as the previously reported speculation that more QE from the BOJ is just around the corner takes a firm hold. Sentiment that the liquidity bonanza would accelerate around the world (with possibly more QE from the ECB) was undented by news of a surge in Chinese short-term money market rates or the Moody’s one-notch downgrade of four TBTF banks on Federal support review. The release of more market-friendly promises from China only added fuel to the fire and as a result S&P futures are now just shy of 1800, a level which will almost certainly be taken out today as the multiple expansion ramp continues unabated. At this point absolutely nobody is even remotely considering standing in front of the centrally-planned liquidity juggernaut that has made “market” down days a thing of the past.

Market Re-Cap

Stocks traded mixed in Europe this morning, with the FTSE-100 in the UK outperforming where Antofagasta traded up over 2%, recovering from losses made yesterday and Hargreaves Lansdown, which was initiated with an overweight rating by JPMorgan Cazenove advanced 1%. Analysts noted that the company’s product offering positions it well to continue to exploit structural growth opportunities in the UK for many years to come. Broad based JPY weakness which ensued overnight on Thursday following comments from Japanese Finance Minister Aso and in turn saw USD/JPY move above 100.00 yesterday for the first time since early Sep continues to be observed across the board today. The price action going forward is expected to remain supported by large option expiries at 100.00 level, good sized strikes are also said to expire next week. Overall, the price action was somewhat muted, but volumes are expected to pick up, as market participants digest the release of the latest Empire Manufacturing and Import Price data reports. Of note, various equity options and futures expiries may result in sharp, albeit brief volume spikes.

US data docket

  • US: Empire State Manufacturing Index, cons 5.00 (8:30)
  • US: Industrial production m/m, cons -0.4% (9:15)

Overnight news bulletin from RanSquawk and Bloomberg:

  • China party reform document: to encourage overseas investment by individuals and companies, to ease one-child policy.
  • Fitch said China is only at the start of a busy policy making calendar leading up to the national people’s congress in March.
  • EU says no Euro-area 2014 budget plan in serious non-compliance. Calls on Italy to take necessary measures on 2014 budget and says that Spain may miss 2014 budget-deficit target.
  • Treasuries advance, with all maturities headed for a weekly gain, after Yellen yesterday signaled she would continue with stimulus and downplayed risks that QE is inflating asset price bubbles.
  • Yellen left open the possibility that the central bank could reduce the interest rate on reserves as a way of aiding the economy
  • Germany argued against a joint backstop for struggling euro-area banks as European finance ministers renewed their debate on how to handle the costs of managing failed lenders
  • China’s Communist Party pledged to loosen its family planning policy, allowing couples to have two children if either parent is an only child; will also abolish the practice of  re-education through labor, allow non-state  investment in state projects, Xinhua reports
  • China’s benchmark money-market rate jumped the most in almost five months as the central bank drained cash from the financial system for a second week
  • Americans seeking cheap insurance on the Obamacare health exchanges may be in for sticker shock if they get sick next year, as consumers trade lower premiums for out-of-pocket costs that can top $6,000 a person
  • Just hours after Obama announced a one-year reprieve for canceled insurance plans, industry executives warned it would cost taxpayers and consumers while state officials split on their support for it
  • Sovereign yields mostly higher, EU peripheral spreads widen. Asian and European stocks, U.S. equity-index futures higher. WTI crude, copper and gold lower

Asian Headlines

China party reform document: to encourage overseas investment by individuals and companies, to ease one-child policy.
– To greatly reduce government intervention in resource allocation
– To scrap residence restrictions in small cities and townships.
– To lift restrictions on residence registration in orderly manner in mid-sized cities.

Fitch said China signals long term reform, but implementation is key. Fitch said China is only at the start of a busy policy making calendar leading up to the national people’s congress in March.

Japanese Economy Minister Amari says trying to avoid new debt issuance for coming stimulus package.

EU & UK Headlines

EU says no Euro-area 2014 budget plan in serious non-compliance. Calls on Italy to take necessary measures on 2014 budget and says that Spain may miss 2014 budget-deficit target. EU’s Rehn said that government debt set to stabilise, economy at turning point on road to recovery.
Eurozone CPI (Oct F) Y/Y 0.7% vs. Exp. 0.7% (Prev. 0.7%)
Eurozone CPI (Oct) M/M -0.1% vs. Exp. -0.1% (Prev. 0.5%)
Eurozone CPI Core (Oct F) Y/Y 0.8% vs Exp. 0.8% (Prev. 0.8%)

According to sources, potential buyers of Spain’s rescued banks, which include foreign investors, are pressuring the government to sweeten sales with more state aid.
ECB says banks to repay EUR 3.155bln from 1st 3y LTRO and EUR 431mln from 2nd 3y LTRO.

US Headlines

President Obama, trying to quell a growing furor over the rollout of his health care law, bowed to bipartisan pressure on Thursday and announced a policy reversal that would allow insurance companies to temporarily keep people on health plans that were to be cancelled under the new law because they did not meet minimum standards.

US Senate Banking Committee could vote on Yellen nomination for Fed chair as early as next week, according to a committee aide.

Equities

Stocks moved higher in recent trade, supported by the release of China party reform document which revealed that the country is to encourage overseas investment by individuals and companies, to ease one-child policy. Even though the meeting by Chinese leaders concluded earlier in the week, lack of details on highly-awaited reforms following the meeting initially weighed on the sentiment as market participants questioned any immediate action by China to spur growth.

Moody’s concluded a review of eight large US banks; said outlook stable on all eight bank holdings and their main operating units; Moody’s cut; Goldman Sachs long term senior debt to Baa1 from A3, JP Morgan long term senior debt to A3 from A2, Bank of New York Mellon long term senior debt to A1 from Aa3. Moody’s confirmed; Wells Fargo’s, Bank of America’s and Citigroup’s long term senior debt.

Also, NY Times reported that US is investigates currency trades by major banks. Although the investigation is at an early stage, authorities are already signaling the likelihood of a legal crackdown.

FX

Broad based JPY weakness which ensued overnight on Thursday following comments from Japanese Finance Minister Aso and in turn saw USD/JPY move above 100.00 yesterday for the first time since early Sep continues to be observed across the board today. As a reminder, Japanese Finance Minister Aso said Japan must always be ready to send signal to markets to curb excessive and one sided FX moves. He added that it is important that Japan has intervention as FX policy option. The price action going forward is expected to remain supported by large option expiries at 100.00 level, good sized strikes are also said to expire next week.

Analysts at HSBC see more weakness for EUR going forward, though maintained year-end forecast of 1.3000 and 1.2400 for end-2014.

Elsewhere, SNB’s Danthine says CHF cap remains an essential instrument and low interest rates not without risks.

Commodities

Hedge fund Paulson & Co maintained its stake in SPDR Gold Trust, the world’s biggest gold-backed exchange-traded fund, in the Q3 after slashing its stake by more than half in the Q2 when prices fell.

China’s nickel pig iron output (NPI) is expected to rise by as much as one third in 2013, on strong demand and new capacity coming on stream, according to Antaike analyst Wang Chongfeng. Furthermore, China’s molybdenum sector is unlikely to find support in domestic demand but policy changes could bolster the market in the future.

US President Obama says we do not want Iran having nuclear weapons, would destabilise entire region and trigger nuclear arms race; leaving all options on table to deal with it.

Iran has only marginally expanded uranium enrichment capacity at Natanz plant since August according to a UN report. According to an official, the drop in supplies from Libya following protests at oil ports has cost the country USD 6bln.

Royal Dutch Shell and Sinopec are reported to be drilling exploration wells to test the shale potential of an unexplored area in central China.

DB’s Jim Reid complete the overnight recap:

Taking a look at markets this morning, demand for carry is the main theme as markets price in a lower probability of tapering in 2013. EM Asian sovereign credit is the main beneficiary of this theme overnight. Indonesian government bonds are around half a point to 1 point higher across the curve and Indo 5yr CDS is around 17bp tighter. Asian EM FX is a focus with selling of USDMYR (- 0.2%) and USDKRW (-0.1%). In the equities space, Asian stocks are performing strongly led by a 1.7% gain in the TOPIX after USDJPY broke through the 100 mark yesterday. USDJPY is currently hovering around 100.2 which is a near four-month high and it comes after comments from the Japanese finance minister yesterday that FX intervention is a tool at Japan’s disposal. Chinese Ashares are around 2.5% firmer after underperforming since the country’s Third Plenary meeting concluded on Tuesday and there is chatter that the government will release further detail on market reforms in the next few days.

Coming back to yesterday, again it was Yellen who provided the spark for markets. Indeed equities were headed south before Yellen spoke, but sentiment bottomed soon after the start of her testimony and the S&P500 rallied 0.6% in the hours following. 10yr USTs yields had a volatile day after rallying on the back of the Senate hearing; tracking higher again after a lacklustre 30yr auction before rallying again into the close to finish 1bp lower on the day at 2.69%. EM assets in EMEA and LATAM performed strongly across equities, FX and fixed income. After the NYSE close, Moody’s announced that it had concluded its review of eight large US banking groups and had decided to downgrade the credit rating of four bank holding companies: BONY Mellon, Goldman Sachs, JPMorgan Chase and Morgan Stanley. The downgrades reflected the rating agency’s view of the reduced probability of US government support for bank holding company debt after what Moody’s describes as “substantive progress in establishing a credible framework to resolve a large, failing bank”. Senior credit spreads on the affected banks jumped up a couple of basis points following the headline but there appeared to be minimal flow given the late timing of the Moody’s announcement. It will be interesting to see how sub-debt trades later today.

In terms of the data flow, there was some focus on the Euro area Q3 GDP. Euro Q3 GDP expanded at 0.1% QoQ which was in line with consensus (-0.4% YoY), but France was the underperformer (-0.1% vs 0% expected). Germany (+0.3%), Spain (+0.1%), Italy (-0.1%) growth numbers were all consistent with market expectations. DB’s Gilles Moec writes that the details of the French GDP report are depressingly consistent with the usual stereotypes of the French economy’s weaknesses, in particular a deeply negative contribution from net exports (-0.7 pp qoq, worst since Q1 2011). Back in the US, initial jobless claims for the week November 9 fell -2k to 339k after the prior week was revised up +5k to 341k. Though the latest week’s jobless claims were above the 330k expected, it had the effect of lowering the 4-week moving average -6k to 344k—which DB’s Joe Lavorgna points out is the lowest level since Oct 12 (338k).

Looking at today’s calendar, the focus returns to the data flow. Starting with Europe, final Eurozone CPI numbers will be published today. Recall that the preliminary number was -0.1% MoM, a number which preceded the ECB’s recent rate cut. Across the Atlantic, a number of important manufacturing-related data releases are scheduled. The first of these is the NY Fed Empire Manufacturing survey where consensus is expecting a bounce to 5.0 in November from 1.52 last month. Industrial production follows shortly afterwards, and wholesale inventories round out this week’s dataflow. In Europe today, there is some expectation that EU finance ministers will today agree on putting in place some form of national backstop for banks, before the ECB’s latest stress tests are completed next year.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/ieNgIg1jc6M/story01.htm Tyler Durden

China Releases Third Plenum Reform Pledges, Sends Stocks To Fresh Highs

The initial disclosures from the much anticipated and recently completed Third Chinese Plenum were a dud. Which, in a world where all the upside comes from hope and faith in the future (since the present continues to get worse), meant at least 20-30 S&P points left on the table just because the quality of promises, pledges and emotional words out of the Chinese Communist Party was not strong enough. So in order to change that, Xinhua has just pre-released a document summarizing all the party reform initiatives, this time with the promises taken up to the next level.

Some of the disclosures via Bloomberg:

  • CHINA COMMUNIST PARTY SAYS IT WILL DEEPEN REFORMS: XINHUA
  • CHINA TO ACHIEVES GOALS MENTIONED IN DECISION BY 2020: XINHUA
  • CHINA TO LOOSEN ONE-CHILD POLICY FOR MORE FAMILIES: XINHUA
  • CHINA TO ACCELERATE YUAN CONVERTIBILITY: XINHUA
  • CHINA TO TRANSFER 30% STATE-ASSET PROFITS TO STATE: XINHUA
  • CHINA TO ALLOW TRANSFER OF NON-FARMING RURAL LAND: XINHUA
  • CHINA TO ESTABLISH DEPOSIT INSURANCE SYSTEM: XINHUA
  • CHINA TO REDUCE SCALE OF LAND ACQUISITION FROM FARMERS: XINHUA
  • CHINA TO ABOLISH REEDUCATION-THROUGH-LABOR SYSTEM: XINHUA
  • CHINA TO SET UP MORE COS. TO MANAGE STATE ASSETS: XINHUA
  • CHINA TO SET UP NATIONWIDE DATA PLATFORM FOR PROPERTY: XINHUA
  • CHINA TO ACCELERATE PROPERTY TAX: XINHUA
  • CHINA TO BUILD OPEN MARKETS WITH NEGATIVE LIST SYSTEM: XINHUA
  • CHINA TO EXEMPT MOST COS. PROJECTS FROM GOVT APPROVALS: XINHUA
  • CHINA TO STRENGTHEN ANTI-CORRUPTION CHAIN OF COMMAND: XINHUA
  • CHINA PLENUM DOCUMENT TO INCLUDE PROPERTY TAX: CAIXIN

Keep in mind that some of these, sich as the end of the one-child policy, were pre-pre-announced before, and nothing happened. But far be it for us to suggest a communist superpower will make promises and not deliver. All that matters is that the announcement has sent futures to fresh record highs. Just keep BTFATH – Bernanke and Yellen pledge that this time central-planning works.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/7KY8kHgDwLA/story01.htm Tyler Durden

Brickbat: Nude Teen Girl

Miami Township, Ohio, has agreed to pay
$100,000 to settle a lawsuit brought by the family of a 17-year-old
girl who was forced to strip naked then hosed
down
 by former deputy police chief John DiPietro. He did
this ostensibly to decontaminate her after she was pepper-sprayed.
DiPietro also photographed a tattoo on the girl’s back and sent it
to a friend, but he insisted she was not naked when he did
that.

from Hit & Run http://reason.com/blog/2013/11/15/brickbat-nude-teen-girl
via IFTTT

House Democrat On Obamacare "I Don't Know How Obama Fucked This Up So Badly"

For five years, congressional Democrats have sprung to his defense when Obama’s been in trouble. Now though, amid the dismal reality of Obamacare, Politico reports a familiar refrain from Democratic sources: Obama’s “if-you-like-it-you-can-keep-it” promise on insurance policies is his “Read my lips, no new taxes” moment — a reference to the broken promise that came to damage President George H.W. Bush’s credibility with his fellow Republicans. His one-time allies are no longer sure that it’s wise to follow him into battle, leaving Obama and his law not only vulnerable to existing critics, but open to new attacks from his own party. Democratic sources say, Obama can expect that lawmakers will be quicker to criticize him — and distance themselves from his policies.

 

Via Politico,

[Instead of his “fix” and talking points for Obamacare], the White House chief of staff might have been better off revealing a U.S. map with the president’s plan for saving congressional Democrats’ seats — or just apologizing for letting so many Democrats walk out in public and repeat wildly inaccurate White House claims about the health of the enrollment website and Americans’ ability to keep their insurance plans if they liked them.

 

 

President Barack Obama’s credibility may have taken a big hit with voters, but he’s also in serious danger of permanently losing the trust of Democrats in Congress.

 

 

“I don’t know how he f—-ed this up so badly,” said one House Democrat who has been very supportive of Obama in the past.

 

The first test of unity: how many Democrats vote for a bill Friday penned by Michigan Republican Rep. Fred Upton. The legislation would allow people to keep their canceled insurance plans through 2014.

 

 

Congressional Democrats are on the line in 2014. Many of them voted for Obamacare, defended it in 2010 and will have to stand in front of voters next year and explain the problems.

 

 

Even some Democrats who have been big supporters of the Affordable Care Act told McDonough that Obama’s plan for an administration fix to address health plan cancellations isn’t enough for them. They need a bill to get behind. Translation: In addition to skepticism about the policy, it’s not good politics for them to just fall in line behind Obama on the fix.

 

 

Democrats who are leaning toward voting for a GOP bill, due on the House floor Friday, that would address the cancellation issue in much broader fashion than Obama would like.

 

“We don’t have a policy problem,” Pelosi told her Democrats in the private meeting, a defense of the law written by Congress. “We have a website problem.”

 

 

No one expects Obama to lose the majority of Democrats on the GOP bill Friday, but even a few dozen defections would be a telling indication that lawmakers are no longer as worried about hurting him as they once were.

 

 

Rep. Jim Moran (D-Va.), who passionately defended the law in the closed-door meeting Thursday, acknowledged in an interview that the White House was probably a “little too overconfident and the rhetoric, perhaps, got a little hyperbolic in terms of how perfect this is.” But he also acknowledged it is more difficult for House Democrats to sign onto the White House’s promises right now, particularly the assurances that the website will be fixed by the end of the month.

 

“We’re not going to all get behind a Nov. 30 date, which is probably not going to be realized…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/3b8kgWCwt3M/story01.htm Tyler Durden

House Democrat On Obamacare “I Don’t Know How Obama Fucked This Up So Badly”

For five years, congressional Democrats have sprung to his defense when Obama’s been in trouble. Now though, amid the dismal reality of Obamacare, Politico reports a familiar refrain from Democratic sources: Obama’s “if-you-like-it-you-can-keep-it” promise on insurance policies is his “Read my lips, no new taxes” moment — a reference to the broken promise that came to damage President George H.W. Bush’s credibility with his fellow Republicans. His one-time allies are no longer sure that it’s wise to follow him into battle, leaving Obama and his law not only vulnerable to existing critics, but open to new attacks from his own party. Democratic sources say, Obama can expect that lawmakers will be quicker to criticize him — and distance themselves from his policies.

 

Via Politico,

[Instead of his “fix” and talking points for Obamacare], the White House chief of staff might have been better off revealing a U.S. map with the president’s plan for saving congressional Democrats’ seats — or just apologizing for letting so many Democrats walk out in public and repeat wildly inaccurate White House claims about the health of the enrollment website and Americans’ ability to keep their insurance plans if they liked them.

 

 

President Barack Obama’s credibility may have taken a big hit with voters, but he’s also in serious danger of permanently losing the trust of Democrats in Congress.

 

 

“I don’t know how he f—-ed this up so badly,” said one House Democrat who has been very supportive of Obama in the past.

 

The first test of unity: how many Democrats vote for a bill Friday penned by Michigan Republican Rep. Fred Upton. The legislation would allow people to keep their canceled insurance plans through 2014.

 

 

Congressional Democrats are on the line in 2014. Many of them voted for Obamacare, defended it in 2010 and will have to stand in front of voters next year and explain the problems.

 

 

Even some Democrats who have been big supporters of the Affordable Care Act told McDonough that Obama’s plan for an administration fix to address health plan cancellations isn’t enough for them. They need a bill to get behind. Translation: In addition to skepticism about the policy, it’s not good politics for them to just fall in line behind Obama on the fix.

 

 

Democrats who are leaning toward voting for a GOP bill, due on the House floor Friday, that would address the cancellation issue in much broader fashion than Obama would like.

 

“We don’t have a policy problem,” Pelosi told her Democrats in the private meeting, a defense of the law written by Congress. “We have a website problem.”

 

 

No one expects Obama to lose the majority of Democrats on the GOP bill Friday, but even a few dozen defections would be a telling indication that lawmakers are no longer as worried about hurting him as they once were.

 

 

Rep. Jim Moran (D-Va.), who passionately defended the law in the closed-door meeting Thursday, acknowledged in an interview that the White House was probably a “little too overconfident and the rhetoric, perhaps, got a little hyperbolic in terms of how perfect this is.” But he also acknowledged it is more difficult for House Democrats to sign onto the White House’s promises right now, particularly the assurances that the website will be fixed by the end of the month.

 

“We’re not going to all get behind a Nov. 30 date, which is probably not going to be realized…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/3b8kgWCwt3M/story01.htm Tyler Durden

China Repo Spikes Most In 5-Month Highs; Japanese Stocks Soar As TEPCO Finds Another Leak

While the Dow has quietly added over 200 points in the last 2 days, the potential for Kuroda and Abe to embark on QQQE has sent Japan’s Nikkei 225 up a magnificently suitable (given the utterly dismal macro data from yesterday) 700 points in the same period. Somehow this jerk higher to near the big collapse-day highs in May makes sense to someone (as TEPCO announces yet another leak). Meanwhile, across the sea, Chinese money-markets are exploding. The last 2 days have seen a combination of no operations yesterday and a big lift in rates today which spiked overnight repo-rates to 5.32% – the highest in 5 months if it closed there – as clearly smaller banks are desperate for liquidity. FX markets are seeing weakness continue in Indonesia, Thailand, and the Philippines. So, all-in-all, total chaos…

 

TEPCO first  – because that is just a fucking shambles:

  • *TEPCO FINDS NEW LEAK FROM FUKUSHIMA FLANGE-TYPE TANK: KYODO
  • *TEPCO SAYS TANK WATER LEAK ABOUT A DROP IN 4 SECONDS
  • *TEPCO PLANS TO PAY PART OF DECONTAMINATION COSTS, KYODO REPORTS

 

But Japanese stocks are soaring… makes perfect sense after last night’s total #fail for Abenomics… USDJPY is back over 100… so that must be good (Venezuela here we come)…

 

as The NKY plays catch-up to The Dow once again…

 

And while the world is awash in liquidity, the locals in China are getting restless – as overnight repo sees the bigggest 2-day spike in 5 months on the back of a non-reverse-repo day and modest tightening by the PBOC on its rates…

 

Charts: Bloomberg


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/LKMI3qNeRq8/story01.htm Tyler Durden

How JP Morgan Bribed The Chinese Prime Minister's Daughter Using A Fake Name

Submitted by Michael Krieger of Liberty Blitzkrieg blog,

Allegations of JP Morgan’s use of clever tactics to bribe Chinese officials recently received mainstream attention when Salon journalist Alex Pareene mentioned it in a comical and classic interview on CNBC (you need to watch the video before reading this) with presstitute Maria Bartiromo. When Mr.Pareene mentioned these claims against the TBTF bank, CNBC mocked him for the fact that his information had come from the New York Times. Well it appears the paper has now given CNBC a taste of its own medicine; with some actual real reporting, something the clownish financial-tv channel drowning in a zero ratings death spiral doesn’t seem all that interested in doing.

This article from the New York Times details how JP Morgan paid $75,000 a month to an obscure consulting firm called Fullmark Consultants, which had only two employees. The firm was run by a woman named Lily Chang, which in reality was the alias used by Wen Jiabao’s only daughter Wen Ruchun. Wen Jiabao was the Prime Minister of China at the time.

Unsurprisingly, many lucrative deals followed for the JP Morgan in China. How about we #AskJPM about that.

More from the NY Times:

To promote its standing in China, JPMorgan Chase turned to a seemingly obscure consulting firm run by a 32-year-old executive named Lily Chang.

 

Ms. Chang’s firm, which received a $75,000-a-month contract from JPMorgan, appeared to have only two employees. And on the surface, Ms. Chang lacked the influence and public name recognition needed to unlock business for the bank.

 

But what was known to JPMorgan executives in Hong Kong, and some executives at other major companies, was that “Lily Chang” was not her real name. It was an alias for Wen Ruchun, the only daughter of Wen Jiabao, who at the time was China’s prime minister, with oversight of the economy and its financial institutions.

 

JPMorgan’s link to Ms. Wen — which came during a time when the bank also invested in companies tied to the Wen family — has not been previously reported. Yet a review by The New York Times of confidential documents, Chinese public records and interviews with people briefed on the contract shows that the relationship pointed to a broader strategy for accumulating influence in China: Put the relatives of the nation’s ruling elite on the payroll.

 

Now, United States authorities are scrutinizing JPMorgan’s ties to Ms. Wen, whose alias was government approved, as part of a wider bribery investigation into whether the bank swapped contracts and jobs for business deals with state-owned Chinese companies, according to the documents and interviews. The bank, which is cooperating with the inquiries and conducting its own internal review, has not been accused of any wrongdoing.

Of course not, don’t be ridiculous!

For Ms. Wen’s consulting firm, Fullmark Consultants, the JPMorgan deal was lucrative. While many Hong Kong investment bankers were earning as much as $250,000 a year, JPMorgan paid Ms. Wen’s firm $900,000 annually from 2006 to 2008, records show, for a total of $1.8 million.

 

A spokesman for JPMorgan declined to comment. In a previous regulatory filing, the bank disclosed that authorities were examining “its business relationships with certain related clients in the Asia Pacific region and its engagement of consultants.”

 

The children of China’s ruling elite, according to experts, have occasionally used government-approved aliases to protect their privacy while studying or traveling abroad. Ms. Wen used her alias for both schooling and business. According to government records, Ms. Wen holds two national identity cards with matching birth dates, one issued in Beijing under the name Wen Ruchun and a second issued in the northeastern city of Dalian, as Chang Lily.

 

JPMorgan’s contract with Fullmark called for the consultant to “to promote the activities and standing” of the bank in China. According to Fullmark’s letter to JPMorgan, the consulting firm had three main tasks. One, it helped JPMorgan secure the underwriting job on the China Railway deal. It also advised JPMorgan about forming a joint venture with a Chinese securities firm and provided counsel on the “macroeconomics policy in mainland China.”

 

The letter, sent around the time of the financial crisis, struck an optimistic tone. “We hope JPMorgan Chase will grasp the opportunities and become to be the winner in the financial crisis,” it read.

Well we all know how that turned out…

Full article here.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/E-89yBbr7uc/story01.htm Tyler Durden