FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

11Mar2015 Pre-Market Commentary: U.S. Dollar Rises To 99.46, Euro Sinks To 12 Year Low, Futures Up Fractionally

Written by Gary

The Euro sinks to a 12 year low as the U.S. Dollar reaches 99.49 this morning exacerbating international corporations financial woes. Falling oil prices and China's Industrial Production just saw its weakest year-over-year reading ever outside the global financial crisis.

However, futures are set for a fractional rebound after yesterday's sharp decline, but the session direction will follow oil. Investors are still questioning when the Fed's were going to raise rates and are they going to affect U.S. equities negatively?

Here is the European Market Open from CNN Money

European markets are broadly higher today with shares in France leading the region. The CAC 40 is up 1.84% while Germany's DAX is up 1.77% and London's FTSE 100 is up 0.06%.

Gold is trading up at 99.15, WTI is trading sideways at 48.70 and gold is trading down at 1157.30. The closing disparity of the Euro and U.S. Dollar is causing widespread concern in the world's financial system.

What Is Moving the Markets

Here are the headlines moving the markets.

Frontrunning: March 12

Euro sinks to 12-year lows as yield gap grows (Reuters)

Get Ready for Oil Deals: Shale Is Going on Sale (BBG)

EIA raises 2015 US oil production forecast, cuts 2016 outlook (Reuters)

How Falling Oil Prices Are Hindering Iraq's Ability to Fight Islamic State (WSJ)

China economic data weaker than expected, fuels policy easing bets (Reuters)

ECB â€'Chasing Own Tail' as Bond Rates Turn Negative, SocGen Says (BBG)

Areva says to cut 1,500 jobs in Germany

PARIS (Reuters) - Areva plans to cut 1,500 jobs in Germany between 2015 and 2017, a spokeswoman for the French state-controlled nuclear company said on Wednesday.

Brent oil hits one-month low below $56 on dollar rally

LONDON (Reuters) - Brent crude oil slipped to a one-month low below $56 a barrel on Wednesday before steadying as a rally in the U.S. dollar and global oversupply weighed.

China Reports Worst Industrial Production Data Ever Outside Of The Global Financial Crisis

Following two clear recessionary indicators out of the US in the form of the recently reported factory orders...

and Wholesale Trade...

Overnight it was China's turn to remind the US that things can always get worse when it reported retail sales, industrial production and fixed asset investment all of which slid about as fast as the China Industrial production would allow them, and wildly missed expectations, suggesting that China will strugle significantly even with hitting its downward revised 7% growth bogey. Putting this ugly data in context, China's overall industrial production just saw its weakest year-over-year reading ever outside the global financial crisis.

Here is Goldman's summary:

Industrial production (IP): 6.8% yoy in Jan-Feb (GS and Bloomberg consensus: 7.7%); December: 7.9% yoy. Sequential IP growth (Jan-Feb over Dec) -4.4% annualized (seasonally adjusted b ...

Bits Blog: Google C.F.O. Is Retiring to Spend More Time With Family (No, Really)

While watching a sunrise from the highest point in Africa, Patrick Pichette decided it was time to "hit the road" with his wife and find his bliss, he wrote in a goodbye note.

Futures point to modest rebound after selloff

NEW YORK (Reuters) - U.S. stock index futures were slightly higher on Wednesday, implying a modest rebound from a sharp decline in the previous session, though questions remains about when the Federal Reserve would adjust its rate policies.

Euro In Freefall, Dollar Surge Accelerates; Futures Rebound On USDJPY Rise; Greece On The Ropes

While the dollar strength this morning, which has pushed it to a fresh 13 year high and has accelerated the EURUSD plunge to under 1.06 - a drop of over 300 pips since the start of the week - has been a recap of yesterday's trading action, the main difference is that unlike yesterday, the USDJPY has managed to find a strong bid in the overnight session, pushing not only the Nikkei up by 0.4%, but also lifting US equity futures as the entire global marketplace is now merely a sandbox in which the central banks try to crush their currencies as fast as possible.

And it isn't just Europe: overnight, China reported property sales in the first two months of 2015 which dropped by the most in three years amid a glut of housing supply, and real estate investment growth eased. Retail Sales (10.7%, Exp 11.66%) and Industrial Output also missed, rising 6.8% for the Jan/Feb period, below estimates of 7.7%. Even Goldman was shocked: "Activity data for the combined January-February period (the NBS releases these two months together given the difficulty of adjusting for Chinese New Year effects) was significantly weaker than expected across IP, FAI, and retail sales. For overall industrial production, this was the weakest year-over-year reading ever (China's IP data starts from 1995) outside the global financial crisis.

This follows news that China plans to merge its big state-owned enterprises, telling thousands of SOEs "that they need to rely less on state life support and g ...

Emirates airline COO says gets 787, A350 improvements as mulls big order

DUBAI (Reuters) - Emirates airline's [EMIRA.UL] chief operating officer said on Wednesday that both Boeing and Airbus had made improvements to its respective 787 and A350 aircraft in response to requests from the Dubai-based carrier.

Legal Tender Coins Shed Clues On Bullion Racket, Part I

...................Jeff Nielson for Sprott Money

One of the "mysteries" of our modern (i.e. fraudulent) precious metals markets is explaining the face-value of our gold and silver minted coins, meaning relating their nominal price to their actual value. The face-value on U.S./Canadian silver 1-oz coins is $5, and the face-value for our 1-oz gold coins is $50. For those investors (including this analyst) who began using precious metals as a vehicle for wealth-protection at a relatively late date; the face-value of these coins seems totally arbitrary.

However, given the endemic nature of both the price-manipulation and brainwashing employed by the crime syndicate which rules over us (the One Bank), the choice of prices for any asset class is rarely (if ever) arbitrary. An "explanation" for the nominal face-values of these coins has materialized, albeit in a particularly circuitous manner.

We start this analysis by first looking not at the nominal face-value of our gold coins, but rather our silver coins. The reason for this is because as detailed by precious metals historian Charles Savoie (in his chronology "The Silver Stealers"), it is the banksters themselves who consider silver to be the more important of these two monetary metals.

Euro sinks to 12-year lows as yield gap grows

LONDON (Reuters) - The euro dived to its lowest since early 2003 against the dollar on Wednesday, dragging other European currencies with it on the back of the huge differences developing in market interest rates between Europe and the United States.

Brother Industries Offers to Acquire British Printer Maker for $1.55 Billion

Domino Printing Sciences, based in Cambridge, said that its board of directors intended to unanimously recommend that shareholders accept the offer.

Credit Suisse new boss could ax 2,900 investment bank jobs: analyst

LONDON (Reuters) - Credit Suisse's new boss Tidjane Thiam could cut almost 3,000 jobs from its investment bank, or 15 percent of staff, as part of a shift of capital away from trading desks to private banking in Asia, analysts said.

For Chinese Economy, Strengths Are Now Weaknesses

Traditional drivers of growth â€" like steel making and real estate â€" are now among the biggest threats to China's economy, slowing faster than the market can be transformed.

Hyundai Motor plans to boost U.S. capacity as SUV sales rise: sources

DETROIT/SEOUL (Reuters) - Hyundai Motor Co plans to expand its U.S. factory, three people familiar with the matter said, hoping to ramp up production of sport utility vehicles (SUVs) as lower oil prices boost demand for gas-guzzling trucks.

Exclusive: UBS poaches Bank of Montreal oil banking team - sources

NEW YORK/TORONTO (Reuters) - UBS AG has poached a U.S. team of some 15 oil and gas investment bankers from Bank of Montreal (BMO), significantly weakening the energy dealmaking capacity at Canada's fourth-largest bank, people familiar with the matter said.

Epoch of Belief, Epoch of Incredulity (7): Compromising Positions

Written by Adam Whitehead,

Greek attempts to compromise the united opposition of the Eurozone nations spectacularly backfired, forcing Finance Minister Varoufakis to play his final card. This card involved requesting a bridging loan in order to meet the country's current liabilities.

Investors see higher yields as U.S. jobs data resets Fed calculus

NEW YORK (Reuters) - Before last Friday, many investors opined that the U.S. Federal Reserve would probably raise interest rates only once this year. Making the first hike in about nine years would be almost symbolic, as if the central bank was showing it still knew how.

Google in initial talks to buy Indian startup InMobi: source

MUMBAI (Reuters) - Google Inc is in early talks to buy Bangalore-based start-up InMobi, in a move that would strengthen its offering in the increasingly competitive mobile advertising space, a source with direct knowledge of the matter said.

Weapons of Mass Destruction

Written by Frank Li

A few months ago, I laid a framework called WMDs, Germs, and Economies. Since then, I have published on civilizations, human races, religions, and people. It's time to discuss WMDs.

U.S. banks' buybacks, dividends may be no reason for shareholder celebrations

NEW YORK (Reuters) - Big U.S. banks, including JPMorgan Chase & Co and Citigroup Inc , are expected to win Federal Reserve backing on Wednesday to buy back more shares and increase their dividends in the coming year, but the approvals may be as much about the institutions' financial engineering as any improvement in their health.

Berkshire's railroad revamps service with billions, fewer cars

NEW YORK (Reuters) - Stung by customer backlash over last winter's patchy service, Berkshire Hathaway's BNSF Railways invested billions in shoring up its operations.

Central-Bank Moves Spook Investors

The euro slid closer to parity with the dollar, long-term eurozone bond yields nudged closer to zero and U.S. stocks tumbledâ€"a stark demonstration of the reordering of the world's financial system by its central banks.

U.S. airlines group expects busiest spring season in 7 years

(Reuters) - U.S. airlines are expected to carry more passengers this spring than they have in seven years, Washington-based trade group Airlines for America said on Wednesday.

Lessors see demand for Boeing 757 jet replacement

PHOENIX (Reuters) - Aircraft leasing companies are encouraging Boeing to build a jet to replace its discontinued 757, but stress the priority of all planemakers must be to deliver on existing orders for bread-and-butter models after a series of delays.

Next Mega-Bailout On Deck: White House Studying "New Bankruptcy Options" For Student-Loan Borrowers

A quick reminder of what the biggest debt bubble currently facing America's population is.

Why is this a problem? Because as the TBAC revealed a few months back, the default risk from the $1 trillions in student loans is several orders of magnitude above the 9% student loans which the Fed has revealed as currently "in default", as one has to add those 12% of loans in deferment and 11% in forbearance to the entire risk pool. In short: a third of all student loans are likely to end up unrepaid!

And, the punchline: according to the TBAC's worst case scenario of the future of student debt, this gargantuan load will triple over the next decade, to as much as $3.3 trillion by 2024.

This means ...

90% of the Developed World Has Eased … But We've Still Got Deflation?

What should we make of the fact that core inflation in the U.S. is just as low as in the Eurozone if measured on the same basis? (Can you say "depression", boys and girls?)

David Rosenberg - former chief economist for Merrill Lynch, and now chief economist for Gluskin Sheff - comments:

I don't know whether to feel good or uneasy about the fact that 90% of the industrialized world economy is now anchored by near-zero or negative short-term rates. At one level, this should be supportive of risk assets; at another level, it is a symbol of how fixed-income investors and central banks see the world — deflation at a time of ultra-low rates is certainly not a confidence builder.

Remember, quantitative easing actually leads to deflation in the long-run.

Earnings Summary for Today

Earnings Calendar provided by

leading Stock Positions

Leading Stock Quotes powered by

Current Commodity Prices

Commodities are powered by

Current Currency Crosses

The Forex Quotes are powered by

To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

Click here for Historical Releases Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

Econintersect Live Market

Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved