STOCK MARKET WATCH -- Wednesday, 17 September 2014

[Tansy_Gold]

[font size=3]STOCK MARKET WATCH, Wednesday, 17 September 2014[font color=black][/font]

SMW for 16 September 2014

AT THE CLOSING BELL ON 16 September 2014
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Dow Jones 17,131.97 +100.83 (0.59%)
S&P 500 1,998.98 +14.85 (0.75%)
Nasdaq 4,552.76 +33.86 (0.75%)


[font color=red]10 Year 2.59% +0.02 (0.78%)
30 Year 3.37% +0.03 (0.90%) [font color=black]


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[font size=2]Market Conditions During Trading Hours[/font]
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(click on link for latest updates)
http://tools.investing.com/market_quotes.php?
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[font size=2]Euro, Yen, Loonie, Silver and Gold[center]

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[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font]
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Economic Calendar
Marketwatch Data
Bloomberg Economic News
Yahoo Finance
Google Finance
Bank Tracker
Credit Union Tracker
Daily Job Cuts
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[font color=black][font size=2]Handy Links - Economic Blogs:[/font][/font]
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The Big Picture
Financial Sense
Calculated Risk
Naked Capitalism
Credit Writedowns
Brad DeLong
Bonddad
Atrios
goldmansachs666
The Stand-Up Economist
The Automatic Earth
Wall Street on Parade
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[font color=black][font size=2]Handy Links - Essential Reading:[/font][/font]
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Matt Taibi: Secret and Lies of the Bailout


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[font color=black][font size=2]Handy Links - Government Issues:[/font][/font]
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LegitGov
Open Government
Earmark Database
USA spending.gov
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[font color=black][font size=2]Handy Links - Videos:[/font][/font]
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Charlie Rose talks with Roubini
Charlie Rose talks with Krugman
William Black: This Economic Disaster
Bill Moyers with Kevin Drum and David Corn
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[font color=red]Partial List of Financial Sector Officials Convicted since 1/20/09 [/font][font color=red]
2/2/12 David Higgs and Salmaan Siddiqui, Credit Suisse, plead guilty to conspiracy involving valuation of MBS
3/6/12 Allen Stanford, former Caribbean billionaire and general schmuck, convicted on 13 of 14 counts in $2.2B Ponzi scheme, faces 20+ years in prison
6/4/12 Matthew Kluger, lawyer, sentenced to 12 years in prison, along with co-conspirator stock trader Garrett Bauer (9 years) and co-conspirator Kenneth Robinson (not yet sentenced) for 17 year insider trading scheme.
6/14/12 Allen Stanford sentenced to 110 years without parole.
6/15/12 Rajat Gupta, former Goldman Sachs director, found guilty of insider trading. Could face a decade in prison when sentenced later this year.
6/22/12 Timothy S. Durham, 49, former CEO of Fair Financial Company, convicted of one count conspiracy to commit wire and securities fraud, 10 counts of wire fraud, and one count of securities fraud.
6/22/12 James F. Cochran, 56, former chairman of the board of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and six counts of wire fraud.
6/22/12 Rick D. Snow, 48, former CFO of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and three counts of wire fraud.
7/13/12 Russell Wassendorf Sr., CEO of collapsed brokerage firm Peregrine Financial Group Inc. arrested and charged with lying to regulators after admitting to authorities he embezzled "millions of dollars" and forged bank statements for "nearly twenty years."
8/22/12 Doug Whitman, Whitman Capital LLC hedge fund founder, convicted of insider trading following a trial in which he spent more than two days on the stand telling jurors he was innocent
10/26/12 UPDATE: Former Goldman Sachs director Rajat Gupta sentenced to two years in federal prison. He will, of course, appeal. . .
11/20/12 Hedge fund manager Matthew Martoma charged with insider trading at SAC Capital Advisors, and prosecutors are looking at Martoma's boss, Steven Cohen, for possible involvement.
02/14/13 Gilbert Lopez, former chief accounting officer of Stanford Financial Group, and former controller Mark Kuhrt sentenced to 20 yrs in prison for their roles in Allen Sanford's $7.2 billion Ponzi scheme.
03/29/13 Michael Sternberg, portfolio mgr at SAC Capital, arrested in NYC, charged with conspiracy and securities fraud. Pled not guilty and freed on $3m bail.
04/04/13 Matthew Marshall Taylor,fmr Goldman Sachs trader arrested, charged by CFTC w/defrauding his employer on $8BN futures bet "by intentionally concealing the true huge size, as well as the risk and potential profits or losses associated."
04/04/13 Matthew Taylor admits guilt, makes plea bargain. Sentencing set for 26 June; faces up to 20 years in prison but will likely only see 3-4 years. Says, "I am truly sorry."
04/11/13 Ex-KPMG LLP partner Scott London charged by federal prosecutors w/passing inside tips to a friend in exchange for cash, jewelry, and concert tickets; expected to plead guilty in May.
08/01/13 Fabrice Tourré convicted on six counts of security fraud, including "aiding and abetting" his former employer, Goldman Sachs
08/14/13 Javier Martin-Artajo and Julien Grout charged with wire fraud, falsifying records, and conspiracy in connection with JP Morgan's "London Whale" trade.
08/19/13 Phillip A. Falcone, manager of hedge fund Harbinger Capital Partners, agrees to admit to "wrongdoing" in market manipulation. Will banned from securities industry for 5 years and pay $18MM in disgorgement and fines.
09/16/13 Javier Martin-Artajo and Julien Grout officially indicted on charges associated with "London Whale" trade.
02/06/14 Matthew Martoma convicted of insider trading while at hedge fund SAC (Stephen A. Cohen) Capital Advisors. Expected sentence 7-10 years.
03/24/14 Annette Bongiorno, Bernard Madoff's secretary; Daniel Bonventre, director of operations for investments; JoAnn Crupi, an account manager; and Jerome O'Hara and George Perez, both computer programmers convicted of conspiracy to defraud clients, securities fraud, and falsifying the books and records.
05/19/14 Credit Suisse, which has an investment bank branch in NYC, agrees to plead guilty and pay appx. $2.6 billion penalties for helping wealthy Americans hide wealth and avoid taxes.
09/08/14 Matthew Martoma, convicted SAC trader, sentenced to 9 years in prison plus forfeiture of $9.3 million, including home and bank accounts







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[font size=3][font color=red]This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.[/font][/font][/font color=red][font color=black]

[Demeter]

1. Only the mentally ill confuse abuse with love

[Tansy_Gold]

3. Unfortunately

That's not true.

[Crewleader]

2. A good interview of PCR with King World News

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2014/9/13_Dr._Paul_Craig_Roberts_files/Dr.%20Paul%20Craig%20Roberts%209%3A13%3A2014.mp3

[westerebus]

30. Interesting.

Keeping the price on metals range bound like the volume of a radio turned down to just within earshot. Nothing ruckus. Slightly reassuring. Measured. Understated.
Mean while, if the FED can't raise rates and banks will not pay out on savings, where would one find a means to push up rates of return on conservative bonds? Push muni's out the door and let's see how fast a quarter percent happens. A half? Pension funds aren't money good in some states. Municipal services? Real estate? Shore line property open to exploration?
Which in turn would push more fed funds into red states as red states voters go over the cliff voting for their own demise. The circular firing squad never goes out of style for some folks.
As for Mr. Putin, he's been out on the ice before, this time base camp may just pick up and leave him adrift. National pride is all well and good comrade, but messing with the money is not conducive to one's longevity. Czar or not.

[Crewleader]

31. Very good to see your post friend.

[xchrom]

4. French Economy Minister: The Country 'Is Sick'

http://www.businessinsider.com/french-economy-minister-the-country-is-sick-2014-9

Crisis-hit France is "sick", the country's new economy minister said on Wednesday, urging immediate reforms to tackle sky-high unemployment and an economy that has failed to grow in six months.

"France is sick. It's not well. We have to describe the situation as it is," Emmanuel Macron told French radio.

"There has been a fever for several years in this country which is called mass unemployment ... there is no choice but to reform the economy," stressed Macron, a 36-year-old former Rothschild banker, who was a surprise choice for economy minister.

France, the eurozone's second-largest economy, is suffering from a record high unemployment rate -- over 10 percent -- and has registered no economic growth in the past two quarters.



Read more: http://www.businessinsider.com/french-economy-minister-the-country-is-sick-2014-9#ixzz3DZKX86F6

[xchrom]

5. 10 Things You Need To Know Before The Opening Bell

http://www.businessinsider.com/opening-bell-sept-17-2014-2014-9

Two new polls have the Scottish independence referendum almost neck and neck. Both the polls by ICM and Opinium have the No campaign very narrowly ahead, with 52% to 48% for the Yes campaign. But both polls show a significant number of people still undecided, and everything is left to play for in Thursday’s vote.

The UK labour market is still powering ahead. Unemployment figures beat analyst expectations, and the rate dropped to 6.2%. British businesses hired 774,000 people on net in the year to July. Despite the labour market strength, Bank of England minutes this morning show no rush to raise interest rates, with only two of the nine monetary policymakers pushing for a hike.

Eurozone inflation is a little higher than we thought. Inflation in the Eurozone came in at 0.4% for August, slightly up from the 0.3% recorded in the flash estimate. Turns out services price pressure was a little higher than Eurostat thought. So instead of being the lowest inflation reading since 2009, August’s print is just the joint-lowest inflation reading since 2009.

Sony is not having a good 2014. The electronics colossus is forecasting annual losses 300% higher than it previously had. It’s now expecting to be in the red by about $2.14bn in the current fiscal year. Previously the Japanese giant thought losses would run to about $50m.

Microsoft hiked its dividend 11% and appointed two new board members. The massive computer firm raised its per share quarterly dividend to $0.31. Teri List-Stoll, Kraft CFO, and Visa CEO Charles Scharf will both join the board in October.



Read more: http://www.businessinsider.com/opening-bell-sept-17-2014-2014-9#ixzz3DZL34CnO

[xchrom]

6. Economists Warn We're On The Brink Of Disaster And Markets Are Nonchalant

http://www.businessinsider.com/r-market-calm-over-scottish-vote-at-odds-with-disaster-warnings-2014-9

LONDON (Reuters) - The big question about investor anxiety over Scotland's independence referendum is not whether it's warranted, but why it took so long to materialize and why it's still so marginal.

Even now, with opinion polls showing a near-equal split in Thursday's vote for and against Scotland's secession from the United Kingdom, market moves have been modest at most - especially when you strip out influences such as domestic interest rate speculation and the wider global economic pulse.

Against the prospect of a potentially messy break-up of the world's sixth largest economy, the relative calm is eye-opening, whether due to detached calculations about the outcome and risks, or a worrying nonchalance and perhaps even puzzlement.

For all the banner headlines of market fright surrounding the issue - mostly trumpeted by unionists - sterling's value against a trade-weighted basket of world currencies is still a full two percent higher in 2014 so far, even after its recent retreat from midsummer peaks.



Read more: http://www.businessinsider.com/r-market-calm-over-scottish-vote-at-odds-with-disaster-warnings-2014-9#ixzz3DZLTE8az

[xchrom]

7. The Federal Reserve Reportedly Isn't Too Crazy About Credit Suisse's Loan Business

http://www.businessinsider.com/r-credit-suisse-loans-under-us-fed-scrutiny-wsj-2014-9

(Reuters) - The U.S. Federal Reserve has asked Credit Suisse Group AG <csgn.vx> to immediately address problems relating to the bank's underwriting and sale of leveraged loans, or high-interest-rate loans used by private-equity firms to finance deals, the Wall Street Journal reported, citing a source familiar with the matter.

Officials at the Federal Reserve and the Office of the Comptroller of the Currency are using private communications with banks to rein in relaxed underwriting and debt-laden deals and plan to take action on a firm-by-firm basis if required, WSJ reported. (http://on.wsj.com/1m9jAbC)

In a letter to Credit Suisse, known as a Matters Requiring Immediate Attention, found problems with the bank's adherence to guidance issued last year, warning banks to avoid deals that included too much debt or too few protections for the lenders in case of a default, the report said citing the person familiar with the matter.



Read more: http://www.businessinsider.com/r-credit-suisse-loans-under-us-fed-scrutiny-wsj-2014-9#ixzz3DZNCicET

[xchrom]

8. China's Central Bank Is Reportedly Pumping $81 Billion Into Major Banks

http://www.businessinsider.com/r-china-cenbank-injects-81-billion-into-major-banks-to-support-economy-reports-2014-9

SHANGHAI (Reuters) - China's central bank is injecting a combined 500 billion yuan ($81.35 billion) of liquidity into the country's top banks, according to media reports, a sign that authorities are stepping up efforts to shore up a faltering economy.

Global shares and commodity prices rose on the reported move, although local money market rates climbed on the day, reflecting continued tightness in liquidity. [MKTS/GLOB]

The Wall Street Journal, citing an unnamed Chinese bank executive, said the People's Bank of China (PBOC) is pumping in 100 billion yuan each into China's top five banks via standard lending facility in the form of 3-month loans.

When contacted by Reuters, a PBOC spokesman said: “We will make an announcement if we have any news.”



Read more: http://www.businessinsider.com/r-china-cenbank-injects-81-billion-into-major-banks-to-support-economy-reports-2014-9#ixzz3DZNoQfMD

[xchrom]

9. French Government Calls For End To Air France Strike

http://www.businessinsider.com/r-french-government-calls-for-end-to-air-france-strike--2014-9

PARIS (Reuters) - The French government called for an end to the Air France pilots strike, now in its third day, as the dispute over cost cuts threatened 60 percent of the airline's flights on Wednesday.

"This strike is weighing heavily on Air France, as well as on its finances, and on the attractiveness and the image of our country," Prime Minister Manuel Valls said during an interview with France Inter radio.

"No one understands what this strike is about," he added.

Budget Minister Emmanuel Macron similarly called for a swift resolution, telling Europe 1 radio that "we cannot accept that a country gets blocked because of just a few".



Read more: http://www.businessinsider.com/r-french-government-calls-for-end-to-air-france-strike--2014-9#ixzz3DZSdBGAE

[xchrom]

10. New York's Pension System Has $5.6B In Hedge Funds — And It's Currently 'Reviewing' Whether To Keep

http://www.businessinsider.com/new-york-currently-reviewing-its-hedge-fund-investments-2014-9

New York's Pension System Has $5.6B In Hedge Funds — And It's Currently 'Reviewing' Whether To Keep Them

A major New York State pension fund is "reviewing" whether it should follow California's lead and pull out of its hedge fund investments.

"We are currently reviewing our asset allocations with the goal of maximizing our risk-adjusted return on investments," a spokesman for state Comptroller Tom DiNapoli told Business Insider on Tuesday.

California Public Employees' Retirement System, the nation's largest pension fund, unexpectedly announced on Monday it would eliminate hedge fund investments. The system's chief investment officer said hedge funds are "certainly a viable strategy for some" but, "at the end of the day, when judged against their complexity, cost, and the lack of ability to scale" were an impractical investment for the state.

Business Insider subsequently reached out to both DiNapoli and New York City Comptroller Scott Stringer to find out if they would follow the Golden State's example. The consulting firm Towers Watson in 2012 ranked the city's and state's retirement systems the 16th-largest and 14th-largest pension systems in the world respectively. DiNapoli's office says he oversees almost $177 billion; Stringer's office says he oversees about $140 billion.



Read more: http://www.businessinsider.com/new-york-currently-reviewing-its-hedge-fund-investments-2014-9#ixzz3DZUpkciE

[xchrom]

11. A Russian Billionaire's Arrest Is Sending Shockwaves Through The Country's Elite

http://www.businessinsider.com/afp-russian-tycoons-arrest-sparks-fears-of-second-yukos-2014-9



Moscow (AFP) - The detention of billionaire Vladimir Yevtushenkov on money-laundering charges sent shock waves through Russia's business and political circles on Wednesday and prompted comparisons with past crackdowns on powerful oligarchs.

The Investigative Committee, which reports directly to President Vladimir Putin, announced late Tuesday that Yevtushenkov had been placed under house arrest and was being investigated for misappropriation or embezzlement linked to an oil deal.

The move is reminiscent of the prosecution of Mikhail Khodorkovsky, then head of oil company Yukos, who spent a decade in jail up to 2013 on what he says were politically motivated charges.

The probe into 65-year-old Yevtushenkov, who is Russia's 15th richest man with a fortune of $9 billion (7 billion euros) according to Forbes magazine, centres on how Yevtushenkov's company, AFK Sistema, acquired oil company Bashneft.



Read more: http://www.businessinsider.com/afp-russian-tycoons-arrest-sparks-fears-of-second-yukos-2014-9#ixzz3DZVNcZP3

[xchrom]

12. CUTS TO FOOD STAMPS WILL ONLY HIT 4 STATES

http://hosted.ap.org/dynamic/stories/U/US_FOOD_STAMPS_CUTS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-09-17-03-27-33

WASHINGTON (AP) -- Cuts to the nation's food stamp program enacted this year are only affecting four states, far from the sweeping overhaul that Republicans had pushed, an Associated Press review has found.

As a result, it's unclear whether the law will realize the estimated $8.6 billion in savings over 10 years that the GOP had advertised.

A farm bill signed by President Barack Obama in February attempted to save money by scaling back what lawmakers called a loophole in the food stamp program that entitles low-income families to more food aid if they participate in a federal heating assistance program. States were giving some people as little as $1 a year in heating assistance so they could get more food aid. It's called "heat and eat."

Among the 16 states that allow the practice or some form of it, 12 governors have taken steps to avoid the food stamp cuts.

[xchrom]

13. survey finds skepticism about trade's benefits

http://hosted.ap.org/dynamic/stories/U/US_GLOBAL_TRADE_SURVEY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-09-16-19-00-35

WASHINGTON (AP) -- Americans, Japanese and many Europeans aren't sold on the benefits of trade. They doubt that global economic ties create jobs or raise wages, an international survey conducted by the Pew Research Center shows.

But people China and other low- and middle-income countries are far more convinced that trade delivers jobs and higher wages, Pew said Tuesday in releasing the results of its survey of 48,643 people in 44 countries.

The center found that 50 percent of Americans say trade destroys jobs, while just 20 percent say it creates them. Only Italians - 59 percent of whom see trade as a job killer - have a more negative view. The French and Japanese are also far more likely to view trade as a job destroyer than as a job creator.

Similarly, Americans are far more likely (45 percent to 17 percent) to say trade reduces wages, instead of raising them. The French, Italians, Japanese and Greeks agree.

[xchrom]

14. TRADE, INVESTMENT HOPES AS CHINA'S XI VISITS INDIA

http://hosted.ap.org/dynamic/stories/A/AS_INDIA_CHINA?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-09-17-07-29-08

AHMEDABAD, India (AP) -- Chinese President Xi Jinping landed in the Indian prime minister's home state of Gujarat on Wednesday for a three-day visit expected to focus on India's need to improve worn out infrastructure and reduce its trade deficit.

Xi was greeted on the tarmac by a throng of news photographers and state officials carrying fringed umbrellas to guard him from the sun in Gujarat's main financial city of Ahmedabad.

Prime Minister Narendra Modi is expected to court Chinese business and seek investment to upgrade creaky infrastructure, banking on China's track record at building highways, railways, and industrial zones. India is also eager to address the imbalance in their annual trade, which now totals around $65 billion but is skewed toward imports of Chinese electrical equipment and parts.

Modi and the Gujarat government are staging a lavish welcome for Xi, with billboards across Ahmedabad showing a smiling Modi and Xi. A banquet dinner was being held Wednesday night on the banks of the Sabarmati River in Ahmedabad. Modi was also celebrating his 64th birthday.

[xchrom]

15. BILLIONAIRE'S HOUSE ARREST SENDS STOCKS CRASHING

http://hosted.ap.org/dynamic/stories/E/EU_RUSSIA_BILLIONAIRE_ARRESTED?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-09-17-04-53-57

MOSCOW (AP) -- The arrest of a Russian billionaire on Wednesday sent shares in his holding company into a tailspin, wiping away more than $2.5 billion in market capitalization.

Vladimir Yevtushenkov, who is worth $9 billion according to the Russian Forbes magazine, was placed under house arrest late Tuesday in a money-laundering case which has drawn comparisons with a government crackdown on the Yukos oil company in 2003.

Shares in Sistema, a company which Yevtushenkov controls and manages, collapsed by 38 percent in Moscow, cutting the company's market capitalization by over $2.5 billion in less than a day. Earlier in the morning, the MICEX stock exchange had temporarily suspended trading in the shares due to the heavy losses.

Sistema controls Russia's largest mobile phone operator MTS, oil company Bashneft as well as other lucrative assets. MTS was down 9 percent. The stock exchange suspended trading for Bashneft when it dropped 23 percent early afternoon on Wednesday.

[xchrom]

16. WORLD STOCKS MOSTLY HIGHER AHEAD OF FED STATEMENT

http://hosted.ap.org/dynamic/stories/F/FINANCIAL_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-09-17-04-40-11

KEEPING SCORE: France's CAC 40 was up 0.4 percent at 4,425.75 and Germany's DAX added 0.3 percent to 9,665.27. Britain's FTSE 100 rose 0.1 percent to 6,798.69. Wall Street was set for a flat open. Dow Jones and S&P 500 futures were both barely changed.

FED WATCH: Some investors are hoping that the statement from the Fed meeting that ends Wednesday will maintain the phrase "considerable time" to remain in its plan to raise interest rates. Some analysts said the recent rally in the U.S. dollar, which may dampen some areas of the U.S. economy, has become a reason for the Fed to turn cautious. The Fed has held the rate close to zero for more than five years, and stocks have surged against that backdrop.

CHINA BANKS: Sentiment was boosted by news reports that China's central bank will inject a total of 500 billion yuan ($81 billion) into the five biggest state banks over three months. Additional financial system liquidity would build on targeted measures to shore up growth, amid a bout of weak economic data. There was no official confirmation of the reports.

ASIA'S DAY: Tokyo's Nikkei 225 fell 0.1 percent to 15,888.67 and Hong Kong's Hang Seng surged 1 percent to 24,376.41. China's Shanghai Composite added 0.5 percent to 2,307.89 and Seoul's Kospi gained 1 percent to 2,062.61. Australia's S&P/ASX 200 lost 0.7 percent to 5,407.30. Markets in Taiwan, India and Southeast Asia were higher.

THE QUOTE: Chinese support for banks if confirmed "is likely to snap Asian equities out of their Fed-induced slumber," said Evan Lucas, market strategist with IG in Australia. "However I again reiterate that the Fed is still the main driving force in the market currently."

[xchrom]

17. Health Care Is Still for the Rich or Lucky

http://www.bloombergview.com/articles/2014-09-16/health-care-is-still-for-the-rich-or-lucky

Today's Census Bureau report on health insurance in 2013 shows that on the eve of Obamacare, whether you had coverage was largely a question of how much money you made:




Obamacare can't fix all of that. Just two-thirds of adults who were eligible for Medicaid in 2009-2010 signed up, according to a 2012 study from the Urban Institute, and even with the law's individual mandate there will still be some people who don’t enroll. The same goes for the state insurance exchanges, whose subsidies will draw in some -- but not all -- of the uninsured in higher income brackets.

But the chart above is still one of the best possible arguments for the necessity of Obamacare, by demonstrating that the government programs preceding the law are too narrow to cover the poor. It shows that even with the existence of Medicaid, the Children's Health Insurance Program and other assistance, health coverage in the U.S. remains a luxury good -- one that the rich can afford but others struggle, in proportion to their income, to obtain.

So here’s the question that ought to define the Obamacare debate: Is that situation acceptable? Conservatives' fixation on the law's real or perceived flaws -- its constitutionality, its clarity of intent, its effect on the deficit, its technological screw-ups, its privacy threats -- avoid dealing with that question. Today's numbers underline why the law's opponents should be pressed to address it -- and make clear what they would offer in its place.

[xchrom]

18. Dark Pools Confront More Transparent Future Amid Threats

http://www.bloomberg.com/news/2014-09-17/dark-pools-confront-more-transparent-future-amid-threats.html


Whether they like it or not, banks are opening up their dark pools, the private venues that host 17 percent of trading in the $24 trillion U.S. stock market.

Off-exchange markets accounting for more than 40 percent of dark-pool volume have publicly disclosed rules of operation that were previously hidden. They’re taking the step amid New York Attorney General Eric Schneiderman’s accusation that Barclays Plc (BARC) misled clients about the presence of high-frequency traders in its private stock market.

Banks and brokers that own the markets are finding it harder to maintain the cloak of secrecy that used to define the venues. Schneiderman is scrutinizing the biggest dark pools, according to a person familiar with the matter, while the U.S. Securities and Exchange Commission is probing the industry. The Financial Industry Regulatory Authority’s board meets this week to decide whether to make private venues give it more data.

Reacting to the controversy, customers are demanding more information about how orders are processed, according to John Cosenza, co-head of electronic trading at Cowen & Co., a New York-based brokerage.

[xchrom]

19. Citigroup Embraces Derivatives as Deals Soar After Crisis

http://www.bloomberg.com/news/2014-09-17/citigroup-embraces-derivatives-as-deals-soar-after-crisis.html

In the past five years, the firm that took the largest U.S. bank bailout of the financial crisis increased the total amount of derivatives on its books by 69 percent, surpassing most U.S. peers and closing the gap with the market leader, JPMorgan Chase & Co. (JPM) At the end of June, Citigroup had $62 trillion of open contracts, up from $37 trillion in June 2009, company filings show. JPMorgan trimmed its holdings 14 percent to $68 trillion.

Citigroup is expanding as regulators try to rein in instruments that helped fuel the 2008 credit contraction. The third-largest U.S. lender has amassed the largest stockpile of interest-rate swaps, a type of derivative that can swing in value when central banks raise rates. More than 92 percent of the bank’s derivatives don’t trade on exchanges, making it harder for regulators to spot dangers in the market.

“Risk-taking is in their DNA,” said Arthur Wilmarth, a law professor at George Washington University, who wrote a 2013 paper describing failures that led New York-based Citigroup to seek a $45 billion bailout and more than $300 billion in asset guarantees during the crisis. Even taking the winning side of a derivative carries a risk the other party can’t pay, he said. It’s “basically a speculative trading business.”

[xchrom]

20. Turkey Raising Specter of Bank Collapse as Asya Targeted

http://www.bloomberg.com/news/2014-09-17/turkey-raising-specter-of-bank-collapse-as-asya-targeted.html

Turkey faces the prospect of its first bank collapse in at least a decade as Bank Asya (ASYAB) struggles to maintain market confidence amid pressure from President Recep Tayyip Erdogan over its ties to exiled preacher Fethullah Gulen.

The Istanbul-based lender has lost 42 percent of its market value since trading resumed on Sept. 15 after a five-week suspension. Asya said yesterday it’s seeking 225 million liras ($102 million) of fresh capital from shareholders after the loss of deposits and government contracts depleted its finances.

Bank Asya is caught in a political battle after Erdogan accused U.S.-based Gulen of starting a corruption probe against members of his government in December. The feud has spilled into business, where companies with links to Gulen such as Asya and mining company Koza Altin Isletmeleri AS (KOZAL) say they’ve been subject to negative regulatory actions and news reports.

“Companies that are partnered with an entity that has strong connections to or is managed by the Gulen movement may risk disruptions to business and financial loss,” Anthony Skinner, head of analysis at U.K.-based risk forecasting company Maplecroft, said by e-mail. “Capital market investors with interests in Gulen-linked companies may also take a hit.”

[xchrom]

21. Europe Stocks Rebound From Two-Week Low Before Fed Update

http://www.bloomberg.com/news/2014-09-17/europe-stock-index-futures-climb-before-fed-policy-update.html

An eight-day winless streak in European stocks ended today as optimism that central bankers around the world will continue to support economic recovery helped the Stoxx Europe 600 Index rebound from a two-week low. U.S. index futures were little changed, while Asian shares rose.

Air France-KLM Group gained 3.4 percent after France’s prime minister asked its pilots to end a strike. DS Smith Plc advanced 5.4 percent after saying sales are increasing at a faster pace than last year. Daily Mail and General Trust Plc dropped to an 11-month low after saying a delayed release of its risk-management-solutions product will result in an impairment and higher costs. Cie. Financiere Richemont SA fell 3.7 percent after five-month sales growth missed estimates.

The Stoxx Europe 600 Index climbed 0.6 percent to 344.82 at 12:01 p.m. in London. The gauge had declined 1.7 percent since Sept. 4 when the European Central Bank’s surprise decision to cut interest rates and start buying securitized debt sent European equities to a two-month high. Standard & Poor’s 500 Index futures added less than 0.1 percent today, while the MSCI Asia Pacific Index rose 0.2 percent.

“A strong U.S. economy will reassert itself as the engine for global growth,” said James Butterfill, London-based head of global equity strategy at Coutts & Co., which manages 28.7 billion pounds ($47 billion). “The Fed will probably say they will continue to taper quantitative easing to have it end in October or November, and continue low rates for long. I don’t think we’ll have clarity on when the first rate hike will be. They will leave that one open purely because there have been a few weaker data points.”

[xchrom]

22. Why Draghi QE Signaled in Crashing German Yield Forecasts

http://www.bloomberg.com/news/2014-09-16/crashing-bund-forecasts-signal-qe-to-follow-loans-euro-credit.html


Banks are cutting their bund-yield forecasts at a record pace as they bet the European Central Bank’s latest stimulus program will be expanded to buying the sovereign debt of member states.

The ECB will allot the first funds under its four-year lending program, or targeted longer-term refinancing operations, at 11:15 a.m. tomorrow in Frankfurt. President Mario Draghi said this month the ECB will also buy asset-backed securities and covered bonds to boost its balance sheet to 2012 levels, meaning an increase of as much as 1 trillion euros ($1.29 trillion). Investors are watching this year’s tenders for signs of whether the latest measures will contribute enough to achieve that goal.

“It plays into this idea of 1 trillion euros of expansion of the ECB balance sheet and how much of that is going to have to be done by ABS,” said Anthony O’Brien, a fixed-income strategist at Morgan Stanley in London. If TLTRO take-up “is a lower number, does that mean they’re going to have to do more of a full-scale quantitative-easing program to get the balance sheet up?”

Since announcing the new loans in June, the ECB has cut interest rates as well as announced its asset-purchase program. The yield on bunds has halved this year, falling below 1 percent in August, enriching investors who have clung to the security of Europe’s benchmark bonds.

[xchrom]

23. Hedge-Fund Performance Eases Calpers Divesting: Chart of the Day

http://www.bloomberg.com/news/2014-09-17/hedge-fund-performance-eases-calpers-divesting-chart-of-the-day.html



Hedge funds’ relatively poor performance during a bull market in stocks may have made the California Public Employees’ Retirement System’s decision to sell off its fund holdings easier.

The CHART OF THE DAY shows how the HFRX Global Hedge Fund Index compares with the MSCI World stock index and the Barclays Global Aggregate bond index since March 2009, when share prices started climbing. The latter two gauges track total returns, including equity dividends and interest payments on debt.

While the HFRX index gained 22 percent through last week, the MSCI World -- an index consisting of stocks in 23 developed markets -- almost tripled. The hedge-fund barometer also lagged behind a 32 percent advance in the Barclays Global Aggregate, comprised of investment-grade bonds.

Hedge-fund holdings by the pension manager, known as Calpers, returned 7.1 percent for the fiscal year that ended June 30. The return was far less than the 18.4 percent for the entire fund, although it surpassed the HFRX index’s 5 percent gain for the same period.

[xchrom]

24. Poverty in U.S. Falls for First Time Since Before Recession

http://www.bloomberg.com/news/2014-09-16/poverty-in-u-s-declines-for-first-time-since-before-recession.html

The economic expansion that’s now in its sixth year is finally showing signs of trickling down to the poorest Americans.

The U.S. poverty rate eased to 14.5 percent in 2013 from 15 percent in the prior year, the first decline since 2006, the year before the last recession began, according to Census Bureau data released today. The decrease came as child poverty dropped by the most since 1966.

Faster economic growth and a jobless rate that dropped to 7.4 percent on average in 2013 from 9.3 percent in 2009 have helped to reduce the rate of poverty. Even so, there were 45.3 million impoverished Americans, little changed from 2012, and the rate remains higher than 12.5 percent in 2007.

“We’re certainly seeing an increase in year-round, full-time employment,” Chuck Nelson, an assistant division chief at the Census Bureau said on a conference call after the release. “It seemed to accelerate a little bit in 2013, which is why we’ve seen this drop in poverty.”

[xchrom]

25. Romney-Sized IRAs Scrutinized as Government Studies Taxes

http://www.bloomberg.com/news/2014-09-16/romney-sized-iras-scrutinized-as-government-studies-taxes.html


About 9,000 U.S. taxpayers have each accumulated at least $5 million in individual retirement accounts, said the Government Accountability Office, raising questions about some investors’ tax-advantaged returns.

The preliminary report attaches data to an issue that drew attention during the 2012 presidential campaign, when Republican nominee Mitt Romney reported an IRA worth $20 million to $102 million.

Senate Finance Committee Chairman Ron Wyden said many of these “massive” accounts come from deals available only to executives who can quickly turn “dirt cheap” stocks into gold.

“The IRA was never intended to be a tax shelter for millionaires,” Wyden, an Oregon Democrat, said at a hearing today in Washington. “With limited resources, it’s crucial to use taxpayer dollars as wisely as possible.”

[Hotler]

26. I'm going to come right out and say it and own it....

and I don't care what folks here on DU or elsewhere think.
.
.
.
.
.
I will not vote Hillary Clinton.

[Fuddnik]

28. Are you just trying to be agreeable?

'Cause I ain't either.

My battle cry in 2008 was "No Hillary, No How, No way". Still stands.

[Hotler]

29. You are too kind. n/t

[Demeter]

27. I'm conflicted about this one

because a person can be disliked because he is a TERRIBLE leader....it depends on who is doing the disliking....take as an example the Market Basket Boycott....