The markets opened lower as expected and have traded sideways throughout the morning on light volume. The overwhelming investor view of the FMOC statement at 2 pm is not favorable among investors polled this morning all citing various views why the Fed is in a lose, lose situation.
By noon not a lot was happening as we await the FMOC statement. The U.S. Dollar is trading just below 100.00 as oil consolidates below 44.77 which was a key support.
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
PARIS/SEATTLE (Reuters) - Planemakers Airbus and Boeing have stepped up pressure on French supplier Zodiac Aerospace over persistent delays in the delivery of aircraft seats that are disrupting jetliner assembly, industry sources said.
NEW YORK (Reuters) - The Federal Reserve on Wednesday will likely discard a pledge to remain "patient" before hiking rates, replacing it with the word "flexible," said widely followed investor Jeffrey Gundlach, co-founder of DoubleLine Capital.
MOSCOW (Reuters) - General Motors Co will shut its Russian factory and wind down its Opel brand in the country to try to survive a deepening downturn in the auto market, the U.S. carmaker said on Wednesday.
BUENOS AIRES/NEW YORK (Reuters) - Argentina will not allow Citigroup Inc. to exit its local custody business, a senior source in the government said on Wednesday, a day after the bank said it planned to do so after a U.S. judge denied it permission to process some sovereign debt payments.
NEW YORK (Reuters) - As Alibaba was preparing to sell shares to U.S. investors for the first time, Jerry Verseput tried to persuade his clients not to throw money at the giant China-based e-commerce company because he thinks IPOs are a gamble, especially those with a lot of hype.
Universal programs financed by broader taxes could appear unfair, but targeted social insurance financed by progressive taxes is likely to be politically weak. Above, Senator Edward M. Kennedy, right, and others celebrated the 20th birthday of Medicaid and Medicare in 1985.
(Reuters) - Herbalife Ltd won the dismissal of a lawsuit that claimed the maker of weight-loss and nutritional products fraudulently portrayed itself as a legitimate company, and that shareholders lost money because it was actually an illegal pyramid scheme.
Talk of a massive bubble in the red hot world of private tech companies is getting louder of late. As we noted last week, Prem Watsa recently highlighted what he called excessive "speculation" in tech stocks and predicted that at the end of the day, habitually slapping billion-dollar valuations on unproven companies that often have little more than an app and a dream will end "very badly." This comes on the heels of Mark Cuban's warning that stretched valuations in private tech companies are far more dangerous than any perceived Nasdaq bubble 2.0, as at least with overvalued publicly traded firms there's liquidity.
Well, now that everyone is jumping on the "there's no way that app is worth $50 billion" bandwagon, Bloomberg is out with a startling revelation: "Snapchat, the photo-messaging app raising cash at a $15 billion valuation, probably isn't actually worth more than Clorox."
No, probably not, but it sure is more fun than doing laundry, which is why it absolutely makes sense that the number VCs are putting on the app makes absolutely no sense. Here's Bloomberg:
Here's the secret to how Silicon Valley calculates the value of its hottest companies: The numbers are sort of made-up. For the most mature startups, investors agree to grant higher valuations, which help the companies with recruitment and building ...
FRANKFURT (Reuters) - A German regional court on Wednesday issued a nationwide ban on online taxi service Uber, barring it from operating commercial services and levelling stiff fines for any violations of the country's local transport laws.
Greece, as a country, represents 2% of Europe's GDP. The country lied in its financial to enter the EU. Since that time, it's been officially bankrupt since 2010.
The country has since gone through a series of "bailouts" and experienced a 25% collapse in GDP (roughly equivalent to what Argentina experienced in its 2001 implosion).
And yet, despite all the bailouts and claims that Greece was "fixed," the country is set to default on some of its debt this Friday.
How on earth does this farce continue? How can Greece be broke FIVE years after it was first allegedly "fixed"?
The answer is very simple. Greece was never fixed. The Greek bailout was about getting money to German and French banks, many of which would go broke if Greece defaulted on its debts.
This story has been completely ignored in the media. But if you read between the lines, you will begin to understand what really happened during the previous Greek bailouts.
1) Before the second Greek bailout, the ECB swapped out all of its Greek sovereign bonds for new bonds that would not take a haircut.
2) Some 80% of the bailout money went to EU banks that were Greek bondholders, not the Greek economy.
Regarding #1, going into the second Greek bailout, the ECB had been allowing European nations and banks to dump sovereign bonds onto its balance sheet in exchange for cash. This occurred via two schemes called LTRO 1 and LTRO 2 which happened in December 2011 and February 2012 respectively. Collectively, these moves resulted in EU financial entities and nation ...
WASHINGTON (Reuters) - The Federal Reserve on Wednesday is expected to lay the groundwork for its first interest rate hike in nearly a decade, as it continues to weigh whether the U.S. recovery can hold up against collapsing oil prices and a soaring dollar.
Following last night's massive 10.5mm barrel build (according to API), this morning's DOE inventories data was highly anticipated (with an expectation of just over 5 million barrels). It did not disappoint... printing at 9.622 million barrel inventory build, this is now the fastest inventory build on record... with record total inventory and record Supplies at Cushing. Storage concerns are growing. But, despite the collapse in rig counts, high-grading and cash-flow deparation remains as crude production also hit a new record high.
10th weekly inventory build in a row... the biggest in 10 weeks ever...
and Production continues to rise...
For a sense of just how crazy this level of inventory is...
NEW YORK (Reuters) - U.S. stocks fell in early trading on Wednesday ahead of a highly anticipated statement and news conference by the Federal Reserve later in the session, with the Fed expected to give clearer clues on how soon it plans to tighten monetary policy.
WTI is now down over $2 from the massive API inventory build last nihgt and is testing down to a $41 handle. The latest leg is not halped by Saudi officials' comments that it "will not interfere with the oil market," and that "the oil market will fix itself," as they continue the line taken at the last OPEC meeting and pressure US Shale even further.
*SAUDI ARABIA WON'T SOON INTERFERE IN OIL MARKET: PRINCE TURKI
*OIL MARKET WILL FIX ITSELF: SAUDI ARABIA'S PRINCE TURKI
*SAUDIS WILL CONTINUE LINE TAKEN AT OPEC MEETING: PRINCE TURKI
BRUSSELS (Reuters) - European Union countries will have to share information on tax deals agreed with major corporations under European Commission plans to limit the ability of big business to avoid tax across the 28-nation bloc.
Dear Greek readers: the writing is now on the wall, and it is in very clear 48-point, double bold, and underlined font: when the ECB "leaks" that it is modelling a Grexit, something Draghi lied about over and over in 2012 and directly in our face too, take it seriously, because it is time to start planning about what happens on "the day after." And incidentally to all those curious what the fair value of peripheral European bonds is excluding ECB backstops, the ECB has a handy back of the envelope calculation: a 95% loss.
Which also is the punchline, because while the ECB is making it very clear what happens next in the case of a "Graccident", it has yet to provide an explanation how it will resolve the billions of Greek debt held on its own balance sheet which are about to be "marked-to-default"...
... and on which it is prohibited from suffering a loss, or else Draghi will have to fabricate even more on the run rules about how the ECB balance sheet is loss-proof... expect in this case, or that, or the other.
Draghi, we have a problem. Despite the omnipotent buying power of the all-knowing ECB, peripheral European bond spreads are blowing out again (and stocks dropping) as Grexit fears start to spread contagiously across the continent. As Greece's cash crunch looms ever closer (with capital controls looming) and bulls "throw in the towel" on the "nuts" Greeks, the IMF has come out and rubbed Mediterranean salt into that wound by telling the Eurogroup that Greece is the most unhelpful country the organization has dealt with in its 70-year history. As Bloomberg reports, in a short and bad-tempered conference call on Tuesday, officials from the 'Troika' complained that Greek officials aren't adhering to a bailout extension deal leaving Dijsselbloem hinting at Cypriot templates for Greece.
The 'Troika' is not happy... International Monetary Fund officials told their euro-area colleagues that Greece is the most unhelpful country the organization has dealt with in its 70-year history, according to two people familiar with the talks. As Bloomberg reports,
In a short and bad-tempered conference call on Tuesday, officials from the IMF, the European Central Bank and the European Commission complained that Greek officials aren't adhering to a bailout extension deal reached in February or cooperating with cr ...
Less than three weeks ago, when the PBOC proceeded with its latest "surprise" rate cut, we showed a chart that should scare everyone who is hoping that China will avoid a hard-landing would prefer would never have been revealed: the annual collapse in Chinese home prices is now so sharp and so widespread, that it has surpassed the housing collapse in the aftermath of the Lehman collapse."
Overnight things went from bad to worse, when China's National Bureau of Statistics reported that contrary to hopes for a modest rebound, China's average new home prices fell at the fastest pace on record in February from a year earlier.
As Reuters reported earlier, average new home prices in China's 70 major cities dropped 5.7 percent last month from a year ago, the sixth consecutive fall, following January's 5.1 percent decline. It was the biggest annual decline in the nationwide survey since it began in 2011.
The monthly fall in February from January was 0.4 percent, the same as in the previous month, and pointing to sustained risks to the government' ...
Ahead of The Fed's 'impatience' today, and amid a tumbling EUR, the oldest central bank in the world has decided it is time to go further into the illustrious ranks of NIRP/QE'ers:
*RIKSBANK CUTS KEY RATE TO -0.25%, TO BUY GOVT BONDS FOR SK30 BLN
So as opposed to Denmark's roundabout "bizarro QE", Sweden just jumps in and monetizes that debt direct by expanding their QE program and shifts from small NIRP to bigger NIRP. All this while suggesting the labor market is strengthening and inflation has bottomed out. The reaction - SEK is plunging and OMX surges.
*RIKSBANK CUTS KEY RATE, TO BUY GOVT BONDS FOR SK30 BLN
*RIKSBANK EXPANDS QE PROGRAM
*RIKSBANK BUYS GOVT. BONDS FOR SK30B
*RIKSBANK: SIGNS INFLATION HAS BOTTOMED OUT, ALTHOUGH STILL LOW
*RIKSBANK SAYS LABOR MKT IS STRENGTHENING GRADUALLY
Having already cut to -0.1% in Feb, Riksbank is at it again.
Here is the full Riksbank statement:
There are signs that inflation has bottomed out and is beginning to rise, but the recent appreciation of the krona risks breaking this trend. The Executive Board of the Riksbank has decided to make monetary policy even more expansionary by cutting the repo rate by 0.15 p ...
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