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01Apr2015 Pre-Market Commentary: ADP Reports Lower Jobs Added Last Month, Iran Deal Still Being Worked On As Investors Still Worried About Greece

Written by Gary

Big news this morning is the U.S. private employers, ADP, only added 189,000 jobs last month, way below economists' expectations and the lowest since January 2014, a report by a payrolls processor showed on this morning. Oil immediately spiked and the U.S. Dollar fell dramatically, but has since started to move back to where they were.

The markets are slated to open fractionally lower this morning as investors are concerned to the Iran 'deal' in progress and the possible 'Grexit'.

Here is the current market situation from CNN Money

European markets are higher today with shares in France leading the region. The CAC 40 is up 0.99% while London's FTSE 100 is up 0.67% and Germany's DAX is up 0.58%.

What Is Moving the Markets

Here are the headlines moving the markets.

March 2015 ADP Job Growth at 189,000 - The Beginning of a Slower Growth Trend?

Written by Steven Hansen

ADP reported non-farm private jobs growth at 189,000. Although disappointing and below forecasts - the year-over-year rates of growth is statistically the same as last month. The rolling averages of year-over-year jobs growth remain solid.

Read more ...

U.S. private sector adds 189,000 jobs in March -ADP

NEW YORK (Reuters) - U.S. private employers added 189,000 jobs last month, below economists' expectations and the lowest since January 2014, a report by a payrolls processor showed on Wednesday.

ADP Employment Misses By Most In 4 Years, Lowest In 14 Months

After missing expectations in a dismally weak February print, March turned out even worse. Despite Mark Zandi's reassurances that Feb was a weather-related blip, March ADP employment change was a mere 189k (against expectations of 225k) dropping to its lowest since January 2014. Large business hiring was the worst, adding a mere 19k. Zandi said in Feb that "jobs growth is strong but slowing," but now it appears weak and accelerating lower. And the now recurring punchline: manufacturing jobs -1,000.


The breakdown:

The worst month in over a year:

The comparison between ADP and BLS:

Job changes by com ...

Sears to raise $2.5 billion by selling stores to REIT

(Reuters) - Sears Holdings Corp said it would raise more than $2.5 billion by selling stores to a real estate investment trust it is setting up, in the latest move to shore up its finances.

Gold Flat In Quarter In Dollars But 11% and 5% Higher In Euro and Pounds

Gold Flat In Quarter In Dollars But 11% and 5% Higher In Euro and Pounds

Gold essentially flat with fall of just $2 or 0.0017% in dollar terms

Euro was the worst performing major currency in Q1

Gold one of strongest currencies after silver, dollar and Swiss franc

Silver surges 6.5% in dollars and 19% and 12% in euros and pounds

Oil and most commodities declined on economic concerns

U.S. stocks eked out minor gains to new record highs and look toppy

Gold performance impressive given strength of dollar and equities, oil collapse and negative sentiment


Gold was essentially flat with a fall of just $2 or 0.0017% in dollar terms in the quarter. While gold was essentially flat in the quarter in dollar terms, it is important to note that gold was 11% and 5% higher in euro and sterling terms - building on the respective 13% and 6% gold price gain seen in 2014.

Silver surged and was third strongest market relative to other major markets globally - including currencies, financial assets, stocks and commodities - rising 6.4% in dollar terms and 19% and 12% in euro and ...

Israel applies to join China-backed AIIB investment bank

TEL AVIV (Reuters) - Prime Minister Benjamin Netanyahu has signed a letter of application for Israel to join the China-led Asian Infrastructure Investment Bank (AIIB), the Israeli Foreign Ministry said on Wednesday.

The Bank Of Japan's Liquidity Crisis In One Chart

It's by now no secret that the Bank Of Japan's mammoth QE effort is creating distortions in the JGB market where the central bank is on a mission to monetize the entirety of gross issuance. A lack of liquidity (which three fourths of dealers see but somehow Governor Kuroda does not) creates widening bid asks which in turn inhibits price discovery and creates volatility. As we've said on a number of occasions, this is very, very bad for the BoJ as a sustained spike in yields could quickly deteriorate into a fiscal crisis as the entire ponzi scheme collapses on itself (don't take our word for it, BlackRock said the same thing). Indeed it was just last week that JGBs suddenly collapsed as yields blew out on surging Treasury yields and disappointing economic data.

But if you needed further proof that asset purchases are sapping liquidity, look no farther than the following chart from BofAML which shows bank JGB trading volume:

Here's BofAML to elaborate:

A key indicator of that will be the trading activity of the city banks. Liquidity has become the hot topic after the BOJ's recent release of the results of its bond ...

Frontrunning: April 1

Oil holds around $55 as Iran nuclear talks drag on (Reuters)

Bob Diamond's African Banking Venture Runs Into Problems (WSJ)

Iran Nuclear Talks Resume With Lavrov Saying Deal at Hand (BBG)

Wal-Mart Ratchets Up Pressure on Suppliers to Cut Prices (WSJ)

Renegades of Junk: The Rise and Fall of the Drexel Empire (BBG)

Explosion at Yemen factory kills at least 25: residents, medics (Reuters)

Macerich Rejects Simon Property's $16.8 Billion Takeover Bid (WSJ)

Reckoning Arrives for Cash-Strapped Oil Firms Amid Bank Squeeze (BBG)

Bufett Says Greek Exit From Euro â€'May Not Be a Bad Thing' (BBG ...

China says Taiwan welcome to join AIIB with appropriate name

BEIJING/TAIPEI (Reuters) - China welcomes Taiwan's decision to apply to join the Beijing-led Asian Infrastructure Investment Bank (AIIB) as long as the self-ruled island uses an appropriate name, state news agency Xinhua reported on Wednesday.

World Bank sees protracted recession in Russia

MOSCOW (Reuters) - Russia faces a protracted recession as the impact of Western sanctions lingers and oil prices stay low, the World Bank said in a report published on Wednesday.

Whiplash Session Sees Furious Buying Of Futures To Defend 50-DMA As New Quarter Begins

It has been another whiplash, rollercoaster, illiquid session which saw US equity futures tumble early overnight driven by a bout of USDJPY and Nikkei selling, only to regain all losses as European, and BIS, traders walked in, and promptly BTFD. In fact at last check, it was as if all the fireworks that took place just a few short hours ago and sent the ES as low as 2037, and below what has become the key support level, the 50-DMA...

... never happened.

So here is what happened: overnight Asian stocks mostly fell with the exception of Chinese bourses, following a negative Wall Street close which saw the DJIA post its first quarterly decline for 2yrs. Nikkei 225 led the rout after breaking below 19,000, following a disappointing BoJ Tankan survey, with saw capex expectation at the lowest since Q1' 2013. This prompted a sharp technical-led slump across US index futures which saw both the S&P 500 (-0.8%) and DJIA (-0.8%) E-mini futures break below their 50 DMAs. Hang Seng and Shanghai Comp rose, the latter posting yet another fresh 7yr high underpinned by higher than expected Chinese Official/HSBC Mfg. PMIs.

On the first trading day of the month ...

Oil holds around $55 as Iran nuclear talks drag on

LONDON (Reuters) - Brent crude oil futures held around $55 a barrel as speculation continued over whether a preliminary deal over Iran's nuclear programme would be reached, opening the way for more Iranian crude to come into world markets.

Weak demand hits China factory, services firms in March, more easing seen

BEIJING/SHANGHAI (Reuters) - Surveys of China's factory and services sectors showed stubborn weakness in the world's second-biggest economy in March, adding to bets that Beijing will have to roll out more policy support to avert a sharper slowdown.

Solid start to second quarter for European stocks, dollar

LONDON (Reuters) - European stock markets made solid starts to the second quarter on Wednesday as data pointing to a gradual recovery in the euro zone economy gave investors fresh impetus after their blowout first few months of the year.

European factories buoyant but weak Asia adds to stimulus calls

(Reuters) - Companies struggled in China and much of the rest of Asia in March, suggesting central banks may have to resort to more stimulus, just as factories in the euro zone begin to reap rewards from ultra-easy policy there.

Trucking and Rail Industries Turn State Troopers Into Unwitting Lobbyists

A proposal to allow bigger trucks on highways, which could be costly to railroads, has put law enforcement officers at the forefront of a safety debate.

France Moves in the Direction of Banning Cash

..........Written by Nathan McDonald

Long has the government waged war on the privacy and freedom of its citizens. Government has an insatiable appetite for more power and control. This is ultimately how it expands itself and exerts its dominance and ability to tax / steal the wealth of its people.

Increasingly, governments are becoming more interested in the ability of its citizens to spend uninhibited amounts of money in the form of cash. Cash, although fiat, at least grants the ability of some privacy to its user and is typically readily converted into most other forms of fiat money.

Gold, which also holds these positive characteristics of cash, has already suffered under a long-term campaign by western governments, in which they have sought to discredit and label it as a relic.

Despite their best efforts, gold has persevered and will continue to do so in the future, as it cannot be readily printed into infinity by any one government who wishes to see its destruction.

Unfortunately, fiat money does not possess these qualities that gold possesses. Fiat can and has been in the past, printed into infinity. Inflation has ruined peoples lives and evaporated the savings of its holder, time and time again.

At least compared to the new emerging form of "electronic money" (i.e. debit cards, credit cards, online banking, etc.), cash at least still holds onto that one positive quality, which is the privacy it can offer its user.

Oil Price Forecast Update: The Role Of Exchange Rates

How much of the drop in oil prices is simply due to the rising dollar? That question has important implications for the future of oil prices.

Japan's Sony Corp. halves stake in Olympus

TOKYO (Reuters) - Japan's Sony Corp has halved its stake in camera and endoscope maker Olympus Corp and is no longer its top shareholder, according to Olympus.

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