Thread: Bank failure(s)

The S&P closed up 0.2%; Latin America was flat to up 1.5% (Brazil); Asia today is narrowly mixed; Europe has opened 0.25% lower. The dollar is +/- 0.25%, little changed.

BBC News - China's exports up 46% in February
BBC News - Greece welcomes Obama support on speculators
Posen Says BOE Hopes Bond Plan Has
Japanese Machinery Orders Declined 3.7% in January (Update2) - Bloomberg.com
Singapore
Senate Said to Weigh $50 Billion Fund to Wind Down Failed Firms - Bloomberg.com
Citigroup Selling TruPS After Repaying Bailout: Credit Markets - Bloomberg.com
China's Geely secures financing to buy Volvo: report | Reuters
NY state debt in red zone, should cut $20 billion: study | Reuters
January trade deficit widens as exports fall | Business | guardian.co.uk

US small business optimism index fell to 88.0 in February from 89.3 in January; the forecast index fell sharply to the lowest level since March 2009. Chinese exports grew 45.7% year-on-year in February and imports grew 44.7% as the currency in real terms continues to depreciate. Japanese machinery orders fell 3.7% month-on-month in January after the extraordinary 20.1% rise in December.

The S&P closed 0.5% higher yesterday; Latin America was flat (Mexico) to up 0.6%; Asia today is narrowly mixed except Japan up 1%; and Europe has opened 0.5% lower. The dollar is flat against the majors, up to 0.5% higher against some emerging market currencies. I'll offer a more general take some profits recommendation at these levels.

BBC News - Carlos Slim overtakes Bill Gates in world rich list
BBC News - Chinese inflation hits 16-month high
BBC News - Japan's economic growth rate revised down
BBC News - Greece hit by third general strike in a month
BBC News - US budget deficit hits record $221bn
BP Pays $7 Billion for Devon Assets in Brazil, Gulf (Update1) - Bloomberg.com
U.S. bailout watchdog criticizes Treasury over GMAC | Reuters
Volcker rule gets lift in Senate amid reform talks | Reuters

US wholesale inventories fell 0.2% month-on-month in January after a revised 1.0% fall in December. The inventory-to-sales ratio is 1.1, the lowest recorded since the series began in 1992. This would indicate that businesses have not only the scope but probably the need to boost stocks as demand stabilises, which itself produces a one-off boost to gdp growth, presumably in Q1 but possibly in both Q1 and Q2 2010. China's CPI rose 2.7% year-on-year in February, up from 1.5% year-on-year in January, confirming that growth is creating inflationary pressures and some further tightening moves are required. The most logical response would be to let the currency appreciate, but the dirigiste Chinese leadership won't choose that option yet. German exports fell 6.3% month-on-month in January, worse than expected. Swedish industrial production rose 1.6% month-on-month in January. Japanese Q4 gdp growth was an annualized 3.8%, down from the Q3 rate of 4.6%.

Slowly, Americans are regaining their lost wealth - Yahoo! Finance=

Julie Arnheim, 43, of Los Altos Hills, Calif., returned to work a year ago because the economy had beaten down her and her husband's finances. Now, thanks to the stock market's rebound, their net worth has come all the way back from a 30 to 35 percent drop.
"We've lost a year and a half of growth, but it's easy to be upbeat," says Arnheim, an entrepreneur. "There's a lot of retired people I know who were hurt, and they don't have the longevity for the market to come back and keep growing."

A 43 year old, retired, entrepeneur who lives in one of the most expensive, most awesome, enclaves in the SF Bay Area was interviewed for an article on how Americans were slowly recovering?

I guess to be fair, I did see a beat up foreclosure up there listed for $1.4mil recently, cheapest house on the MLS in that area at the time.

The S&P closed up 0.4%; Latin America was flat to up 0.5%; Asia today is marginally down, with China -1.4% and Japan +0.8% the extremes; Europe has opened narrowly mixed. The dollar is typically 0.25% lower but flat against the yen.

BBC News - Lehman Brothers' former heads criticised for lapses
BBC News - China rejects Barack Obama's call to change yuan policy
BBC News - Warning on public sector pensions
BBC News - US trade deficit shrinks as oil imports fall
Ukraine
BOJ May Cushion Balance-Sheet Contraction Next Week (Update2) - Bloomberg.com
Hyundai Motor Names Heir Apparent as Board Member (Update2) - Bloomberg.com
Yellen Said to Be Obama
White House
Asia stocks head for 5th straight week of gains | Reuters

The US trade deficit was $37bn in January after $40bn in December. Net exports are improving, as you would expect in this point in the cycle, which adds to gdp growth. Brazil's Q4 gdp was up 4.3% year-on-year after a 1.2% decline of Q3 gdp year-on-year; net trade was a drag on growth as the relatively strong domestic economy increased net imports. Brazilian retail sales grew 10.4% year-on-year in January after a 9.2% rise in December, better than expected. Canada's new home prices grew 0.4% month-on-month in January, matching December's rise, the seventh straight monthly rise and putting year-on-year prices back up to year ago levels. As we start into February US stats, we'll probably see some relative weakness due to the exceptionally bad weather, with catch-up for the March stats.

Re L2L's comment above, yesterday's US Fed Flow of Funds report showed net wealth rose by $700bn to $54.2trn in Q4 09, smaller than the $2.7trn gain in Q3 but still notably positive. Since the bottom, households have added $5.7trn in wealth, which is about 1/3rd of what they lost on the way down.

The S&P closed flat on Friday: Latin America between Argentina (up 1%) and Brazil (down 0.8%); Asia today is mostly lower, between India up 0.2% and Taiwan down 1.5%; and Europe has opened 0.25% lower. The dollar is typically 0.25% higher, but odd currencies like the Canadian and New Zealand dollars are stronger. The S&P failed to break out above previous highs on Friday in lower than expected volume, so I keep my take profits advice for the US.

BBC News - Chinese oil firm buying 50% stake in Argentine group
BBC News - Vauxhall and Opel get
BBC News - Warning on public sector pensions
U.S., U.K. Move Closer to Losing AAA Debt Rating, Moody
China
Money Rates Rising Hint Treasury Losses Amid Fed Exit (Update1) - Bloomberg.com
Dodd Faces
http://www.isuppli.com/News/Pages/Se...-a-Decade.aspx

US retail sales ex autos rose 0.8% month-on-month in February, after 0.5% in January, and better than expected. US business inventories were unchanged in February, with the inventory to sales ratio at 1.25 which it reached at its lows in 2005 and 2007 (note, this is all-businesses rather than the wholesale number in post #1083). Canada added 21k jobs in February after 43k in January, with the jobless rate falling to 8.2%: the Canadian dollar hit a one-year high. Eurozone industrial production rose 1.7% month-on-month in January, much better than expected. India's industrial production rose 16.7% year-on-year in February with capital goods up 56% year-on-year.

The S&P, having been down during the day, closed flat; Latin American markets were down around 0.5%; Asia today is mixed, with China up 0.5% and Japan down 0.3%; and Europe has opened 0.5% higher, having closed more than 1% down yesterday during Wall Street's lows. The dollar is little changed.

BBC News - European finance minister agree Greece rescue plan
U.S. Working With EU to
China
Dodd
CLOs to End 12-Month Drought in Citigroup Deal: Credit Markets - Bloomberg.com
Wall Street Dominance of Swaps Clearing Must End, Brokers Say - Bloomberg.com
Fed seen renewing low rates, extended period vow | Reuters

US industrial production rose 0.1% month-on-month in February, with sales, orders and employment all rising and capacity utilization rose to 72.7%. Production is back to pre-crisis levels but capacity utilization is not. It had been expected to be weak because of the weather. India's Wholesale Price Index (WPI) rose 9.9% year-on-year in February after 8.6% in January. Singapore's retail sales rose 5.8% month-on-month and 2.3% year-on-year in January, following a 4.9% decline year-on-year in December.

The Fed meets today with a known policy change in that Fed purchases of mortgage-backed bonds comes to an end at the end of March. Some tinkering with the mechanics of rate setting is likely over the next few months, but given the ending of the mortgage market support, this is unlikely to be seen today.

The S&P closed 0.8% higher last night; Latin America was up 0.5%-1.2% (Argentina); Asia is up 0.8% - 2.2% (Korea); and Europe has opened 0.5% higher. The dollar is around 0.25% lower, but the yen and sterling are weaker than the dollar. The S&P has indeed pushed out beyond its previous high, so my "take profits" warning may have been too cautious, but I stick with it for the moment.

BBC News - Japan's central bank seeks to boost lending
BBC News - Standard & Poors backs plans to cut Greece's deficit
Bean Says U.K. Inflation Has Been
Russia Wields Three-Pronged Policy to Steer Recovery (Update1) - Bloomberg.com
U.K. Public-Sector Workers Plan to Strike March 24 Over Cuts - Bloomberg.com
Asian Stocks, Commodity Prices Rise on Fed Pledge, BOJ Lending - Bloomberg.com
Fed Unconvinced Recovery Strong Enough to Warrant Higher Rates - Bloomberg.com
Korea Life gains; buoys hopes for Samsung Life IPO | Reuters
Intel, global chip shares jump | Reuters
World Bank tells China to tighten policy | Reuters

The Fed's language did not change for their statement from last time, and there was some expectation it would change the wording for the period from "extended period". Japan has extended its monetary easing measures. China, India, Brazil and Australia are moving in the opposite direction, but slowly. These are likely to be the source of surprises.

US housing starts were 575k in February after 615k in January due to the weather. Canada's manufacturing sales rose 2.4% month-on-month in January and labour productivity rose 1.4% quarter on quarter in Q4 09, both better than expected. Korea's department store sales rose 15.2% year-on-year in February with discount store sales rising 30.8% year-on-year. Australia's housing starts rose 15.1% quarter-on-quarter in Q4 09 and Q3's rise was revised up to 11.0%; prices were up 11.0% year-on-year in December.

The S&P closed up 0.6% yesterday; Latin America was narrowly mixed; Asia today is also mixed, from Japan -1% to Taiwan +0.5%; and Europe has opened 0.25% lower. The dollar is between 0.1% higher against the Euro and 0.5% lower against the yen.

BBC News - Nissan Leaf electric car to be built in Sunderland
Euro Drops on Greece Concerns; Asia Stocks, Crude Oil Decline - Bloomberg.com
China Conducts Yuan Stress Tests, Trade Chamber Says (Update2) - Bloomberg.com
Japan Commercial Land Prices Slump to Record on Economy, Credit - Bloomberg.com
Geely May Take Control of London Black-Cab Maker Manganese - Bloomberg.com
Hartford to Raise $2.25 Billion in Stock Sale, Repay Government - Bloomberg.com
New York City to Sell BABs as Yields Fall to Five-Week Low - Bloomberg.com

US PPI fell 0.6% month-on-month in February after a 1.4% rise in January. Canada's wholesale prices rose 3.0% month-on-month in January. In both cases automobile prices were the leading risers. Brazil left its official interest rate unchanged, a surprise to markets. Singapore's non-oil exports rose 23.4% year-on-year in February, better than expected.

Edit:
Jobless Claims in U.S. Decreased By 5,000 Last Week (Update1) - Bloomberg.com

China: the coming costs of a superbubble / The Christian Science Monitor - CSMonitor.com

The S&P closed flat; Latin America was +/-0.5%; Asia today is flat to up 0.8%; and Europe has opened 0.5% higher. The dollar is marginally lower today except against the yen and sterling, which has taken a 1% drop against most currencies. I think we might have a modest setback in global equity markets now from these levels.

BBC News - Government borrowing less than forecast
Merkel Favors IMF in Greece Crisis as Germans Oppose Bailout - Bloomberg.com
Rio Tinto Case Mixes Politics, Law in China
Fed May Boost Discount Rate Before Next Meeting, Economists Say - Bloomberg.com
Yuan Poised to Become Reserve Currency, Goldman
Samsung, LG see growth, but know rivals are catching | Reuters

US leading indicators rose 0.1% month-on-month in February. US consumer prices were flat month-on-month in February, up 2.1% year-on-year. Core prices were only up 1.3% year-on-year and there is little breadth of price rises. The US current account deficit widened to $115.6bn in Q4 09. China's Guangdong province (the one round Hong Kong and a major manufacturing centre) raised minimum wage by 21% effective in May. This is the biggest rise since the minimum wage was instituted in 1995. Canada's foreign investment flows were C$11.8bn in January, higher than expected. UK public borrowing for February was lower than expected, and January's number was revised down materially (see article above). Tax rises are producing an increase in revenue in the short term (VAT and Bank tax on bonuses)

On Friday the S&P closed 0.5% lower; Latin America was between 1.25% lower (Brazil) and 0.3% higher (Argentina); Asia today is around 1% lower with Hong Kong (-2.0%) and China (+0.2%) the outliers; Europe today has opened 0.5% lower [edit:-1% by midday]. The dollar is 0.25% higher except against the Swiss Franc and the Canadian dollar. Friday's action in the S&P was, technically, a key reversal on the quadruple witching day (options and futures expiry) and confirms my cautious short-term view.

BBC News - Shell and PetroChina ready to pay $4.3bn for Arrow
Japan Said to Consider Unlimited Guarantees for Samurai Bonds - Bloomberg.com
Indian Stocks, Bonds Decline After Central Bank Raises Rates - Bloomberg.com
House Approves Landmark U.S. Health-Care Overhaul Legislation - Bloomberg.com
Bernanke Says Public Shouldn
U.S. employer healthcare costs up 7.3 percent in 2009 | Reuters
Europe divided on aid to Greece before summit | Reuters

Japan's all-industry activity index rose 3.8% month-on-month in January. Canada's core CPI rose 2.1% year-on-year in February after 2.0% in January. Canadian retail sales rose 0.7% month-on-month in January after a 0.4% rise in December, boosted by the expiry of a housing renovation tax credit. India raised its official interest rates by 0.25%, unexpectedly triggered by the high inflation number announced for February: the market expected 0.5% at the next central bank meeting. Taiwan's exports rose 36.3% year-on-year in February, the fifth consecutive monthly year-on-year rise, indicating strong electronic components demand.

The S&P closed 0.5% higher yesterday; Latin America was up between 0.3% (Argentina) and 1.3% (Brazil); Asia today is +/-0.5%; and Europe has opened 0.5% higher. The dollar is modestly stronger except against Asian currencies. The US markets tested their intra-day highs again yesterday but failed to go above them.

Greek Impasse Deepens as Trichet Rejects Loan Subsidy (Update1) - Bloomberg.com
Companies have cash and mergers and acquisitions will continue:
Babcock to Buy VT for $2 Billion to Expand Services (Update1) - Bloomberg.com
Equity markets continue to provide plenty of capital to companies:
Dai-ichi Life Raises $11 Billion in Japanese IPO (Update1) - Bloomberg.com
China continues to try to delay the inevitable:
China
China May See March Trade Deficit, Bolstering Yuan Resistance - Bloomberg.com
The removal of US government support from those institutions it rescued is being actively considered:
Treasury
GMAC Registers Securities Owned by Treasury, General Motors - Bloomberg.com
Emerging markets continue to be the source of most growth, even for "home" companies:
GM Expands Brazilian Factories to Meet Growing Vehicle Demand - Bloomberg.com

US Chicago Fed activity index fell to -0.64 in February from -0.04 in January, indicating below-trend activity in weather-hit February. Hong Kong's CPI was up 2.8% year-on-year in February after 1.0% in January, more signs of emerging market inflation. A developer in Hong Kong, Cheung Kong, also limited the number of apartments that could be bought by one buyer in its latest development, an indicator of over-heating in that property market.

Debate on the future of Fannie, Freddie heats up - Yahoo! Finance

In September 2008, the government seized control of Fannie and Freddie...

AAA rating? Who cares...

http://www.bloomberg.com/apps/news?p...uaUhD1jM&pos=4

This type of thinking is just...inexplicable, and inexcusable for a nation state...(sorry OF )

The S&P was up 0.7% yesterday; Latin America was up between 0.5% and 1%; Asia today is flat to up 0.5% and Europe has opened 0.25% higher [Edit: down 0.5% by lunchtime] . The dollar is 0.25% to 0.75% higher against most currencies, but flat against several Asian currencies.

BBC News - French government backs down on carbon tax plan
BBC News - US pay tsar cuts rewards for bosses at bailed-out firms
BBC News - US homes sales fall for the third straight month
BBC News - VW shares plunge on stock offer
Germany, France Back IMF Greek Role, Official Says (Update1) - Bloomberg.com
Euro Declines as Greece Draws in International Monetary Fund - Bloomberg.com
Japan Revives Plan to Sell Its Postal Service (Update1) - Bloomberg.com
Americans Say They Missed 73% Rise in S&P 500 as Economy Surged - Bloomberg.com
Fiat seen cutting 5,000 jobs with new plan | Reuters
Rio trial showcases steel mogul's struggle | Reuters

US existing home sales fell 0.6% month-on-month in February to 5.02m homes, another weather-affected area of the economy. The level of sales seems to have stabilised post the tax credit expiry, but no further recovery. The Richmond Fed index rose from 2 in January to 6 in February, with new orders and expectations of new orders strong. Canada's leading indicators rose 0.8% month-on-month in February. Brazil's credit growth was 16.8% year-on-year in February, up from 15.9% in January, the twelth consecutive month of credit growth. DRAM prices are back to previous highs seen in 2005 and 2006.

The S&P was down 0.6% yesterday; Latin America was typically down 0.5% but Argentina was up 1%; Asia today is mixed with China and Hong Kong down 1% but India up 0.5%; and Europe has opened flat. The dollar is down around 0.25%. US government bond yields rose yesterday, blowing out of the range relative to German government bonds (Bunds) that had been established during the crisis. The yen, in contrast, broke down from its trend against the US dollar, indicating the dollar may strengthen against the yen over a period of months.

BBC News - Dubai World gets $9.5bn government backing
BBC News - Electrolux bids for Daewoo Electronics
Goldman Says IMF, Greece May Negotiate EU20 Billion Aid Program - Bloomberg.com
Sun Hung Kai, Henderson Join Cheung Kong in Home Cap (Update2) - Bloomberg.com
Samurai Guarantees Spur Most Bond Sales Since 2001 (Update1) - Bloomberg.com
U.S. Treasury Said to Have Preset Plan to Sell Citigroup Shares - Bloomberg.com

US new home sales fell 2.2% month-on-month in Februaryto 308k. US durable goods orders ex-transportation rose 0.9% month-on-month in February. German IFO confidence index rose to 98.1 in March from 95.2 in February. Portuguese government debt rating was downgraded to AA- by rating agency Fitch with a negative outlook (expecting it to decline further), reflecting insufficient actions yet taken by that government. The UK's outgoing government announced a no-action, slightly political budget that gives no details of the forecast cuts in government expenditure beyond this fiscal year.

The US market closed flat, having been up 1% at its high; Latin America was flat to down 1.2% (Argentina); Asia today is mostly strong, up 0.5%-1.5%; and Europe has opened down 0.5%, having closed yesterday near the US' highs, up 1.25% yesterday. The dollar is mixed, but down against European currencies which are generally 0.5% higher on the Greek agreement.

BBC News - Japan's consumer prices continue to fall
BBC News - New Open Skies air deal to bring bigger EU-US stakes
UK budget truth comes out as the detail is released. Future spending cuts will have to be "more severe than under Thatcher" say Chancellor yesterday: BBC News - Government cuts to total
EU agrees IMF key component of potential rescue plan for Greece -
BBC News - Deal reached over Greece debts at Brussels summit
EU Steers Greece to IMF, Pledges Loans in Last-Resort (Update1) - Bloomberg.com
Financial protectionism alongside reluctance to revalue, linked issues:
China May Resume Yuan Float, Avoid Sharp Revaluation (Update1) - Bloomberg.com
China
Biggest bank in China (the world?) needs more capital after lending boom:
ICBC
Taiwan Plans to Accelerate Withdrawal of Liquidity (Update1) - Bloomberg.com
U.S. Said to Widen Homeowner Aid, Subsidize Mortgage Reductions - Bloomberg.com
Oracle
Nikkei hits 18-month high; weaker yen helps | Reuters

US initial jobless claims fell from 456k to 442k in the latest week, bringing the 4-week average down by 11k. UK retail sales ex autos rose 1.6% month-on-month in January. French consumer spending fell 1.2% month-on-month in February after a 2.5% fall in January. Japanese consumer prices fell 1.1% year-on-year in February. Brazil's jobless rate rose to 7.4% in February from 7.2% in January, but this is not seasonally adjusted and reflects a normal seasonal pattern; consumer confidence rose to 112 in March from 111 in February.

Wall Street ended flat on Friday; Latin America was narrowly mixed; Asia today is mostly better, with a range of -0.3% (Korea) to +1.1% (Hong Kong); Europe has opened around 0.25% better but Ireland is down 1.5%. The dollar is around 0.5% higher with the Aussie and NZ dollars strong and the yen weaker.

BBC News - Rio Tinto executives handed lengthy jail terms
BBC News - Japan retail sales boosted by government stimulus
Papandreou Faces $21 Billion Burden After Aid Plan (Update1) - Bloomberg.com
China
Verizon Said to Be in Talks With Vodafone on Wireless Business - Bloomberg.com
Allied Irish Falls Most in Five Months as State to Raise Stake - Bloomberg.com
RBA Says House Prices
Treasuries Find Greenspan
Iceland hopes for IMF review within weeks | Reuters

US Q4 09 gdp was revised down to 5.6% quarter-on-quarter annualized from 5.9% as first announced with lower consumption and higher prices; profits were stronger than first estimate, up 8% quarter-on-quarter and 31% year-on-year. Japanese retail sales were up 0.9% month-on-month in February and 4.2% year-on-year after 2.3% year-on-year growth in January. China's leading indicator peaked at 105.4 in October and was 104.7 in both January and February. Singapore's industrial production was up 19.7% year-on-year in February, down from 39.2% in January, but this just reflects year-ago conditions and the restart of the economy this time last year; and the monthly number reflects continuing strong growth, particularly in electronics.

I thought this was kind of interesting:

The Lobby: Intel's anti-antitrust push - Mar. 26, 2010

Especially the R&D tax part.

Wall Street was up 0.6% last night; Latin America was up between 0.6% and 1.8% (Brazil); Asia today is between India flat and Japan up 1.0%; Europe has opened 0.25% higher except for Ireland. The dollar is 0.25% lower except against the yen and some emerging market currencies.

BBC News - Irish bank stocks fall before government announcement
BBC News - Japan industrial output falls for first time in a year
BBC News - Greece raises 5bn euros from bond issue
NAB, Axa SA Agree to A$13.3 Billion Axa Asia Takeover (Update2) - Bloomberg.com
Vale, BHP End Annual Ore Talks; Vale Wins 90% Jump (Update2) - Bloomberg.com
Japan Banks May Sell Record Subordinated Bonds, Citigroup Says - Bloomberg.com
China economists urge renewed yuan rise | Reuters

US personal spending rose 0.3% month-on-month in February while incomes and core CPE were flat month-on-month. Core CPE was up 1.3% year-on-year. The Dallas Fed manufacturing index rose from -0.1% in February to +7.2% in March, reflecting a decent recovery from weather-affected February. Japanese manufacturing production fell 0.9% month-on-month in February after an exceptionally strong +2.7% in January, and is up 31% year-on-year. German consumer prices rose 1.3% in February on a strong energy component. Hong Kong and New Zealand signed a free trade agreement, Hong Kong's first outside China.

Pew Charitable Trust estimates that the US State employees' pension schemes are in deficit in total of $450bn. Andrew Biggs of the American Enterprise Institute in contrast says the deficit is $3trn once you put a more realistic equity return assumption in the calculations than the steady 8% per annum assumed by the schemes. Articles & Commentary

Wall Street was flat on the day yesterday; Latin America was unchanged to down 0.5%; Asia today is flat to down 0.7% (Australia); and Europe has opened marginally higher with Ireland recovering 0.7%. The dollar is 0.25% lower against European currencies but 0.25% higher against Asian and emerging market currencies, including 0.5% higher against the yen.

BBC News - Anglo Irish Bank to get 8.3bn euros in fresh bailout
Irish Banks Need $43 Billion on
BBC News - Peabody bids $3bn for Australia's Macarthur Coal
Carlyle
Japan export orders hit 6-year high, earnings slip | Reuters

US consumer confidence rose to 52.5 in March from 46.4 in February; and Case-Shiller house prices rose 0.3% month-on-month in January, the 8th consecutive rise. Australia's retail sales fell 1.4% month-on-month in February after the first interest rate rises impacted. Australia's building approvals fell 3.3% month-on-month in February after the previous month's 5.5% fall, though housing approvals rose while commercial buildings took a sharp fall. China has approved margin trading, short selling and an index future will start trading from 16th April. Hong Kong's retail sales rose 35.8% year-on-year in February after a 6.5% annual gain in January: taking the two months together gives a 19% rise with a 55% rise in car sales.

U.S. Stocks Fall as Jobs, Purchasing Data Signal Slower Growth - Bloomberg.com

Citigroup Revamps Trading Algorithms Amid

Greece May Be Heading Back to

Wall Street was down 0.3% yesterday; Latin America was between 1.3% down (Argentina) and 0.4% up (Brazil); Asia today is between 0.7% (India and Australia) and 1.6% (Korea) higher; Europe has opened 0.75% higher. The dollar is around 0.25% higher but +0.5% against the yen, +0.7% against the Korean won and +1% against the NZ dollar. Yesterday saw the end of the Fed's programme of purchasing MBS (Mortgage-Backed Securities).

BBC News - Barack Obama eases offshore oil drilling ban
BBC News - German banks to pay into financial protection fund
BBC News - Eurozone unemployment rate rises to 10%
California Debt Beats Greece
China, Japan Manufacturing Improve as Asia Leads Global Rebound - Bloomberg.com
Lihir Gold Rejects A$9.2 Billion Offer From Newcrest (Update3) - Bloomberg.com
Dai-ichi
Buy Singapore Dollar on Appreciation Bet, Goldman Sachs Says - Bloomberg.com
M&A Creeps Higher on Cross-Border, Hostile Deals (Update1) - Bloomberg.com
RIM Drops After Selling Prices Slip, Revenue Misses Estimates - Bloomberg.com

US factory orders rose 0.6% month-on-month in February, with January revised up from +1.7% to +2.5% month-on-month. Eurozone unemployment rose to 10.0% February from 9.9% in January. Canadian gdp rose 0.6% in January month-on-month after 0.5% in December, the fifth straight monthly rise. China's PMI was 55.1 in March, up from 52.0 in February, indicating strong exports in March.

Edit:
Manufacturing in U.S. Expands by Most Since 2004 (Update2) - Bloomberg.com
U.S. Stocks Gain on Global Manufacturing, Jobless Claims Data - Bloomberg.com

Oh Geithner.

Geithner: Disparity in recovery 'deeply unfair' - Yahoo! Finance

The guy has always been a politician first and economist second (even at university!), but sheeze...no wonder he gets laughed at.

On Monday the S&P was up 0.8%; Latin America was up 0.2% (Brazil) to 3.2% (Argentina); Asia today (Tuesday) is between -0.5% (Japan) and +1.0% (Australia); and Europe has opened around 0.25% higher except Ireland up 1% and Norway up 2%. The dollar is widely mixed in a currency market of sizeable changes with the dollar up 1.3% against the Euro and 1% up against the NZ dollar, and down 0.8% against the Canadian dollar, the Indian Rupee and the Malaysian Ringgit.

BBC News - Australian interest rates rise to 4.25%
BBC News - Oil price up amid jobs joy in US
BBC News - US Treasury delays China currency report
Euro Declines Amid Concern Greece Will Struggle to Raise Funds - Bloomberg.com
Peabody Raises Macarthur Coal Bid; Battles Noble (Update3) - Bloomberg.com
Greek worries return to hit euro; world shares flat | Reuters
Argentine country risk narrows on debt swap hopes | Reuters

The US added 162k jobs in March, the largest monthly addition in three years, and there was a 62k upward revision to the last month's numbers. Both manufacturing and private sector services have added jobs in each of the last three months, and an additional 48k public sector jobs were created by the census. The household survey shows the unemployment rate having fallen by 0.2% in the last three months, a stronger pace than that indicated by the payroll numbers. The payroll proxy for incomes in Q1 10, hours worked times hourly earnings, indicates a rise of 3.8% annualized. In the UK mortgage lending was subdued in February, mortgage approvals declining to 47.0k from 48.1k in January and lending was stable at £1.6bn in February after £1.5bn in January. UK Q4 09 gdp was revised upwards to +0.4%. In Japan the jobless rate was stable at 4.9% in February with that for women falling 0.7% in the first two months of 2010.

The S&P closed 0.2% higher yesterday; Latin America was between -0.3% (Brazil) and +1.5% (Argentina); Asia today is mostly flat but Hong Kong is up 1.8%; and Europe is narrowly mixed mid-morning. The dollar is up 0.3% against European currencies but down a similar amount against Asian ones. After the Easter weekend and the news of the postponement of the US currency manipulation report, markets are now discounting a Chinese 5% revaluation in the summer. Raw materials, particularly energy, have risen in dollars to reflect the anticipated future ability of China to pay higher prices.

BBC News - Daimler, Nissan and Renault announce three-way tie-up
BBC News - AOL plans to sell or shut down Bebo
BBC News - Eurozone growth lowered to zero
BBC News - Oil prices hit new 18-month high
Greece May Find Lukewarm U.S. Response to Dollar Bond (Update1) - Bloomberg.com
Emerging-Market Stocks Rally for Ninth Day; Greek Bonds Rebound - Bloomberg.com
Geithner Says China to Pursue

US non-manufacturing ISM rose to 55.4 in March from 53.0 in February. US home prices rose 8.2% month-on-month in February after a 7.8% fall in January. The UK construction PMI rose to 53.1 in March from 48.5 in February. The Reserve Bank of Australia (RBA) raised official interet rates by 0.25% to 4.25%. Japanese preliminary leading indicators rose to 97.9 in February from 96.9 in January.

Ahhh...thank god, all is well in the universe again.

The S&P was down 0.6% yesterday; Latin America was down between 0.4% (Brazil) and 1.3% (Argentina); Asia today is down betwen 0.2% (Hong Kong) and 1.1% (Japan) except for Korea, up 0.4%; Europe has opened around 1% lower. The dollar is 0.25% higher against nearly all currencies except the yen and Thai baht. The yuan revaluation and continuing fall-out of the Greek financial crisis are dominating markets for the moment. Political unrest in Thailand and Kyrgystan support the dollar. Geithner's unscheduled trip to Hong Kong (China with a formal dollar currency tie) and Beijing indicate the currency issue is real.

Revamped ECB Lending Rules May Give Greece More Pain Than Gain - Bloomberg.com
Kyrgyz Opposition Claims Power as President Ousted (Update3) - Bloomberg.com
Geithner Travels to China Bearing
UAL
BA, Iberia seal long-awaited merger deal | Reuters
Geithner to meet top HK official as yuan talk mounts | Reuters
BBC News - Greek financial troubles mount as IMF arrives

US consumer credit declined $11.5bn in March after a revised increase of $10.6bn in February. Deleveraging is still the trend, but increased consumer confidence is starting to boost demand. Canada's PMI was 57.8 in March up from 51.9 in February. Japan's machinery orders were down 5.4% in March after a 3.7% decline in January. Brazil's vehicle sales were 354k in March, up from 221k in February.

The S&P closed up 0.3%; Latin America closed between -0.2% (Mexico) and up 1.4% (Brazil); Asia today is mostly higher (China and Hong Kong up 1.5%) but Korea is down 0.4%; Europe has opened 1% higher, having closed at the US lows yesterday. The dollar is typically down 0.25% but the yen, Brazilian real and Taiwanese dollar are flat. Markets are still focussed on Greece being forced into borrowing from the IMF (market rates for Greek debt having risen further in the last week) because of the cost of borrowing effect on their deficit; and on China specifically and other emerging markets generally being forced into revaluing their currencies against the majors to mitigate inflation and switch demand growth more to consumers.

BBC News - Macarthur Coal rejects takeover bid from New Hope
BBC News - UK car sales see further big increase
U.K. Economy Kept 0.4% Growth Pace in First Quarter, Niesr Says - Bloomberg.com
Vodafone, Bharti May Each Pay $3 Billion in Auction (Update1) - Bloomberg.com
China May Post Trade Deficit, Undermining Yuan Case (Update1) - Bloomberg.com
China
Reminders of how we got into this and the hangover problems we're now dealing with:
Korea Sells 9% Stake in Woori for 1.16 Trillion Won (Update1) - Bloomberg.com
Prince, Rubin Defend Roles as Panel Criticizes Citi (Update1) - Bloomberg.com
U.S. Banks Hid Risk by Lowering Debt Before Reporting, WSJ Says - Bloomberg.com
Hartford Ex-CEO Gets $39.9 Million Pension Payout After Bailout - Bloomberg.com
Fed officials again pledge low rates, slow asset sales | Reuters

US chain store sales rose 9.0% year-on-year in March after a 3.7% y-o-y rise in February. Eurozone retail sales fell 1.1% year-on-year in February after a 0.6% y-o-y fall in January. Brazil's inflation rose to 5.2% year-on-year in March, up from 4.8% in February.