15Apr2016 Pre-Market Commentary: US Futures Down Fractionally, WTI Crude Sliding In The Low 40’s, US Dollar Remains Weak, More Talk Of A Coming Recession Is Becoming Popular

Here is the current market situation from CNN Money

European markets are lower today with shares in France off the most. The CAC 40 is down 0.55% while Germany’s DAX is off 0.48% and London’s FTSE 100 is lower by 0.45%.

Stocks, dollar and oil cool ahead of Doha meeting

LONDON (Reuters) – Reassuring Chinese GDP data helped stocks, commodity markets and the dollar consolidate strong weekly gains on Friday, as the focus turned to a meeting of top oil producers about a potential output freeze.

Citigroup’s quarterly profit plunges 27 percent

(Reuters) – Citigroup Inc’s quarterly profit plunged 27 percent as bank set aside money to cover losses on energy loans and its costs related to shrinking some businesses rose.

Chinese economy shows signs of debt-fueled recovery

BEIJING (Reuters) – China posted its slowest economic growth since 2009 but a surge of new debt appears to be fueling a recovery in factory activity, investment and household spending in the world’s second largest economy.

Italy’s Atlas fund struggles to stop sky falling on banks

MILAN (Reuters) – Italy has dubbed its new bank bailout fund Atlas, after the mythical Greek titan, because it is meant to hold up the sky above the nation’s lenders. But some of the fund’s own investors doubt that it can do the job.

Komodo commerce: e-tailers battle in Southeast Asia

SINGAPORE/JAKARTA (Reuters) – With its $1 billion buy of online retailer Lazada, Alibaba has signaled Southeast Asia as a regional e-commerce battleground – with 600 million people, and no shortage of logistical headaches.

Exclusive: Valeant calls in investment banks to weigh options – sources

(Reuters) – Valeant Pharmaceuticals International Inc has brought in investment banks to review its options amid interest from buyout firms and other companies in a number of its businesses, according to people familiar with the matter.

Policymakers fret as storm clouds gather over world economy

WASHINGTON (Reuters) – World financial leaders sounded a sour note on the global economy on Thursday, pointing to Britain’s possible exit from the European Union as a serious threat alongside China’s bumpy growth path and dissent over interest rates in the euro zone.

Cruise Automation ex-partners sue each other after GM deal

SAN FRANCISCO (Reuters) – General Motors Co’s pending acquisition of self-driving car startup Cruise Automation has touched off a legal spat between two former collaborators over their ownership stakes in the company.

‘Let them sell their summer homes’: NYC pension dumps hedge funds

NEW YORK (Reuters) – New York City’s largest public pension is exiting all hedge fund investments in the latest sign that the $4 trillion public pension sector is losing patience with these often secretive portfolios at a time of poor performance and high fees.

Trump Asks “How Has The ‘System’ Worked Out For You?”

Authored by Donald Trump, Op-Ed via The Wall Street Journal,

On Saturday, April 9, Colorado had an “election” without voters. Delegates were chosen on behalf of a presidential nominee, yet the people of Colorado were not able to cast their ballots to say which nominee they preferred.

A planned vote had been canceled. And one million Republicans in Colorado were sidelined.

In recent days, something all too predictable has happened: Politicians furiously defended the system. “These are the rules,” we were told over and over again. If the “rules” can be used to block Coloradans from voting on whether they want better trade deals, or stronger borders, or an end to special-interest vote-buying in Congress—well, that’s just the system and we should embrace it.

Let me ask America a question: How has the “system” been working out for you and your family?

I, for one, am not interested in defending a system that for decades has served the interest of political parties at the expense of the people. Members of the club—the consultants, the pollsters, the politicians, the pundits and the special interests—grow rich and powerful while the American people grow poorer and more isolated.

No one forced anyone to cancel the vote in Colorado. Political insiders made a choice to cancel it. And it was the wrong choice.

Responsible leaders should be shocked by the idea that party officials can simply cancel elections in America if they don’t like what the voters may decide.

The only antidote to decades of ruinous rule by a small handful of elites is a bold infusion of popular will. On every major issue affecting this country, the people are right and the governing elite are …

Default Cycle Now In Full Swing As Goodrich Petroleum Is Latest To File Chapter 11

The energy bankruptcy wave has been officially unleashed.

After just yesterday Energy XXI became the latest shale company to seek bankruptcy protection, this morning another troubled energy producer, Goodrich Petroleum announced a prepackaged Chapter filing meant to implement a financial reorganization after struggling to restructure its debt amid declining energy prices.

In its press release, the company announced, that “through the Chapter 11 restructuring, the Company will eliminate approximately $400 million in debt from its balance sheet, substantially deleverage its capital structure and strategically position the Company for long-term performance in an anticipated improving commodity price environment. The RSA eliminates all of the Company’s prepetition funded indebtedness other than its first lien reserve based loan facility, which currently has approximately $40 million outstanding, resulting in a significantly deleveraged balance sheet upon the Company’s emergence from the Chapter 11 bankruptcy process. “

The filing, just like EXXI’s is not a surprise: Goodrich earlier this month reached an agreement with creditors to use its œbest efforts to file for Chapter 11 with a prepackaged plan to reorganize and emerge from court as an operating business. That agreement came after the company’s debt-for-equity exchange offer failed to gain enough traction among debt holders.

As Bloomberg reminds us, on March 16, Goodrich delayed releasing its annual report, citing a large loss that auditors have determined may affect the company’s ab …

Frontrunning: April 15

Global stocks, dollar and oil cool ahead of Doha meeting (Reuters)

Oil Falls Before Doha as Global Markets Brace for Weekend Risk (BBG)

China Growth Slows; Revival Policies Appear to Gain Traction (WSJ)

White House hopefuls Clinton, Sanders joust in Brooklyn brawl (Reuters)

Trump talks up ‘New York values’ as protesters demonstrate against him (Reuters)

Sanders Can’t Clarify Wall Street Plan in Testy Clinton Debate (BBG)

Goldman’s Blankfein Said to Push Deepest Cost Cuts in Years (BBG)

Italy’s Atlas fund struggles to stop sky falling on banks (Reuters)

Obama to Back Anti-Brexit Campaign on Trip to U.K. Next Week (BBG)

Valeant calls in investment banks to weigh options (Reuters)

Activist Hedge Funds Wounded by Former Shale-Boom Star (

Why the Car Market Isn’t All About Speed

First-quarter European car sales show strong, if slowing growth. But investors shouldn’t get too hung up on sales statistics in an increasingly margin-focused sector.

China’s Economy Faces Recovery Without Legs

The more China’s nascent economic rebound is fueled by debt and property, the more concerned Beijing will be that it is pushing the gas too hard.

Bank of America vs. Wells Fargo: Will the Last Be First?

Earnings from BofA and Wells Fargo continued to reassure investors that things aren’t so bad for banks. They still aren’t great, either.

MarketWatch First Take: The IMF is turning into the ZeroHedge of economics

The IMF has sounded a very dark tone about the global economy. But it may not reflect the reality, writes Steve Goldstein.

Market Extra: Beware the dollar before chasing emerging-market stock rally

Emerging market equities have rallied sharply from their January low, but betting on the continuation of the rally is risky, according to some analysts

This nasty oil rivalry is why a genuine output freeze is a long shot

Investors awaiting Sunday’s meeting of major oil producers in Doha are eyeing signs of a deal that could freeze oil production in a bid to stabilize prices.