$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.
The 28 participants in the June Livingston Survey predict higher output growth for the second half of 2015 than they did in the December survey. The forecasters, who are surveyed by the Federal Reserve Bank of Philadelphia twice a year, project that the economy's output (real GDP) will rise at an annual rate of 0.9 percent during the first half of 2015 and 3.1 percent during the second half of 2015, followed by growth of 2.9 percent (annual rate) in the first half of 2016.
One week ago we took delight in one particular headline in which Fed vice-chair Stanley Fischer was quoted as saying that bankers "should be punished for financial crimes."
We doubt we need to explain the virtually infinite circularity of irony contained in this quote, suffice to say that for the Fed to admit that the US judicial system is broken and that not a single banker has gone to prison following years of abuse, nearly a third of a trillion in legal settlements and charges by US commercial banks many of which have been now found to criminally manipulate markets (of which none more so than JPMorgan, whose CEO Jamie Dimon is now a billionaire as a result), and that the Fed has enabled and encouraged all of this with its policies, is... well, frankly we don't even have the right word for it.
Today, the irony goes a notch higher when another central banker, this time former Goldman partner and current Bank of England head, Mark Carney doubled down on Fischer's commentary.
Moments ago Carney said that prison sentences for market manipulating traders and bankers should be extended from 7 to 10 years. He added that so-called "rolling bad apples" or individuals who are fired from financial firms ...
LONDON (Reuters) - HSBC's investment bank could shed more than a fifth of its clients and plans to reduce its credit and interest rates businesses by $100 billion over the next two years in its bid to improve profitability.
Bank of Japan Governor Kuroda has managed to do it again. In his now daily missives on "deflation mindset being over", "economy is on the right track", "QQE is working", and his best yet "BoJ has no plan to finance government debt", Kuroda unleashed the ultimate idiocy last night when he proclaimed "it is desirable for FX to move in a stable manner." USDJPY has fallen over 2 handles for the biggest surge in JPY strength in 6 months... to which Amari noted "Kuroda didn't intend to move market with his remarks."
The biggest surge in JPY (drop in USDJPY) in 6 months!
TOKYO (Reuters) - Tokio Marine Holdings Inc said on Wednesday it had agreed to buy U.S. specialty insurer HCC Insurance Holdings Inc for $7.5 billion, in what would be the biggest M&A deal this year by a Japanese company.
NEW YORK (Reuters) - Oil rallied for a second straight day on Wednesday as U.S. government data confirmed a big weekly drawdown in domestic crude stockpiles, although profit-taking by players who had bet on the draw pulled the market back from its highs.
BRUSSELS/ATHENS (Reuters) - Greece and its creditors moved closer to the brink on Wednesday with the leaders of Germany, France and the European Commission holding back planned meetings with Prime Minister Alexis Tsipras to press for more concessions from the Greek side.
While we await for Germany to deny the latest "Greece is fixed" report which came out moments ago according to which Merkel "may be satisfied with Greece committing to at least one economic reform sought by creditors to open the door to bailout funds" as Bloomberg reported earlier citing "two people familiar with Germany's position" - a move which would be seen as Germany blinking to Greek demands and may well lead to Schauble's resignation if confirmed - below is a quick update of what is going on with Greek bank liquidity.
It is not good.
As the chart below shows, following last week's "massive" surge in Greek bank runs, which soared on Friday as pessimism returned with a bang that another "can kicking" deal may not get done after all, Greek Emergency Liquidity Assistance, or ELA, use soared by â‚¬2.3 billion according to Bloomberg, the single biggest weekly increase since February, rising to â‚¬83 billion. This, of course, is happening as Greek bank deposits continue their dramatic drop and which according to recent reports by Kathimerini had dipped under below â‚¬130 billion.
Which brings up the question of the "other" parity: while everyone has opined on when/if the EURUSD will hit 1.00, for Greece a far more relevant question is whether the ECB's generous ELA funding of insolvent Greek banks will reach parity with the amount of Greek deposits in the bank system.
Below is a chart showing the history of Greek ELA increases.
"The people in this building are just as upset over that piss as you are."
That's what 22-year NYPD veteran Eric Adams told a rookie cop when the two entered an elevator in a New York public housing project. The puddle of urine in the corner prompted the new recruit to offer the following appraisal: "these people are all animals; they don't deserve anything."
Adams â€" who was a captain by the time he retired five years ago to pursue a career in politics â€" is African American and says police too often stereotype entire communities based on the offenses committed by a "numerical minority." One might be inclined to view minorities' disproportionate share of lethal police shootings involving unarmed suspects as evidence of this dynamic.
Some suggest that hiring more African American police officers would help to ameliorate the situation.
The problem, according to NYPD commissioner William Bratton, is simple: too many African Americans have spent time in prison. The Guardian has more:
What an officer does, in essence, can make or break community trust â€" and even keep black applicants away from the NYPD. Even as the NYPD is more diverse over all than it's ever been, in late June the police academy will graduate one of its smallest percentage of black males since the 1960s..
While increasing numbers of Hispanics and Asians, especially men, are joining the NYPD, the future looks bleaker for black applicants. One number in particular is jarring: black males make up only 6. ...
While we are well aware of the decay-ridden denigration of VXX (the VIX ETF), today's plunge (on heavy volume) nears a new record low for the NYFed's best friend. With 51.695 million shares short (and just 60.5 million shares oustanding) according to Bloomberg data, one can only imagine what happens if we get a true 'event' that is allowed to happen.
VXX nears record lows... 18.50 vs 18.45 lows on May 22nd
As VIX futures push back towards the most short in 2 years...
And actual short spec contracts (at over 201,000) are close to record highs.
STOCKHOLM (Reuters) - Swedish telecom operator TeliaSonera is buying into music streamer Spotify for a slice of the fast growth and rapid innovation typical of online companies, investing as competition heats up in Spotify's industry.
After all the sound and fury from Schaeuble, we are now to believe he is ready to back down...
*GERMANY SAID TO CONSIDER SETTLING FOR ONE GREEK REFORM UP FRONT, OFFERING GREECE STAGGERED DEAL ON AID
Stocks and the Euro have resurged on the news. We await Germany's denial within the next 30 minutes (and the subsequent FBI investigation)
As Bloomberg reports,
Chancellor Angela Merkel's government may be satisfied with Greece committing to at least one economic reform sought by creditors to open the door to bailout funds, according to two people familiar with Germany's position.
While the Germans still insist on a package of steps that includes higher taxes, state asset sales and less generous retirement benefits, they may settle for a clear commitment by the Greek government to a measure up front to unlock aid, said the people, who asked not to be identified discussing the government's negotiating stance.
* * *
We wish Frau Merkel the best of luck getting this passed!
We wonder if the 2 sources are Tsipras and Varoufakis?
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