STOCK MARKET WATCH -- Thursday, 29 January 2015

[Tansy_Gold]

[font size=3]STOCK MARKET WATCH, Thursday, 29 January 2015[font color=black][/font]

SMW for 28 January 2015

AT THE CLOSING BELL ON 28 January 2015
[center][font color=red]
Dow Jones 17,191.37 -195.84 (-1.13%)
S&P 500 2,002.16 -27.39 (-1.35%)
Nasdaq 4,637.99 -43.50 (-0.93%)


[font color=green]10 Year 1.72% -0.10 (-5.49%)
30 Year 2.29% -0.10 (-4.18%) [font color=black]


[center][/font]

[HR width=85%]

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

[font size=2]Euro, Yen, Loonie, Silver and Gold[center]

[/center]

[center]

[/center]

[HR width=95%]

[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font]
[center]
Economic Calendar
Marketwatch Data
Bloomberg Economic News
Yahoo Finance
Google Finance
Bank Tracker
Credit Union Tracker
Daily Job Cuts
[/center]

[font color=black][font size=2]Handy Links - Economic Blogs:[/font][/font]
[center]
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
[/center]

[font color=black][font size=2]Handy Links - Essential Reading:[/font][/font]
[center]
Matt Taibi: Secret and Lies of the Bailout


[/center]

[font color=black][font size=2]Handy Links - Government Issues:[/font][/font]
[center]
LegitGov
Open Government
Earmark Database
USA spending.gov
[/center]

[font color=black][font size=2]Handy Links - Videos:[/font][/font]
[center]
Charlie Rose talks with Roubini
Charlie Rose talks with Krugman
William Black: This Economic Disaster
Bill Moyers with Kevin Drum and David Corn
[/center]

[div]
[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







[HR width=95%]


[center]

[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]

6. Welcome to SMW

Sounds like you found the right place.

[Demeter]

2. The poor, homeless and mentally ill ARE the footballs in the Economy Game

Last edited Wed Jan 28, 2015, 08:34 PM - Edit history (1)

forgot to include the unemployed...might as well add the pregnant, too, and their children.

And then, there's Obamacare.....ah, hell, call it 90% and be done with it!

[kickysnana]

11. We had a 67 year old guy who had been sent for mind straightening at St Peter Hosp.

He failed the straightening program in 2013 but they let him out anyway labeled as "incompetent". Night before last he took a gun to a new police officer swearing in ceremony in New Hope, the community he was living when he lost his mind, business, property and wife in that order. He shot two officers, they survived, but others put him out of his misery. Not his first go around with police in at least two jurisdictions.

On the front page of the local section was an article noting that due to lawsuits for mishandling the mental ill in Minnesota, Human Services were running a 19.3 million dollar deficit so of course they are going to have to lay off 43 (mental) care workers.

On the front page of the community section was an article from a generation Y explaining how Boomers had messed up them by not helping them succeed and the millennials who had been rewarded for just showing up and want instant gratification won't work. That businesses did not know what to do with the millennials because they won't play the games. I think someone in Greece or Rome a while back said the same thing.

Might have to break down and go to a chiropractor. I was grocery shopping today cause it was warm and twice I was bent over and went to push on something with my right arm and I immediately lost my balance, had to immediately stand up, started tap dancing so as not to fall on my face. All that sand on the sidewalks is hard to pick out of your face. Once is being awkward. Twice means that something is wrong.

[Demeter]

12. Balance issues need more than a chiropractor!

Take care of yourself!

What a sad, horrible story of suicide by cop. Ronald Reagan has a lot to answer for.

[Wellstone ruled]

3. Can you say Margin Call!!!!!!

Biggee's got to settle up on or before the 28th of the month. And,Manged 401's and Pensions,had to do their buys on Monday with the cash from your Pay Check deductions. What a racket.

[Demeter]

7. Welcome to SMW

and thanks for the notice. We don't have anyone tracking margin calls and witching hours and stuff like that on a regular basis--you are welcome to be the point person!

[Demeter]

4. DJIA link repeated

DJIA daily link

[Demeter]

5. Graph of a national disgrace

That initial spike, I don't know what it was...maybe nuclear missile silos? The second spike is most likely the US Highway program which ran for 35 years 1956-1991...I recall lots of road construction in Michigan at that time...some of it federal.

[Demeter]

8. Russia In The Cross Hairs By Paul Craig Roberts

http://www.informationclearinghouse.info/article40828.htm

Washington’s attack on Russia has moved beyond the boundary of the absurd into the realm of insanity. The New Chief of the US Broadcasting Board of Governors, Andrew Lack, has declared the Russian news service, RT, which broadcasts in multiple languages, to be a terrorist organization equivalent to Boko Haram and the Islamic State, and Standard and Poor’s just downgraded Russia’s credit rating to junk status. Today RT International interviewed me about these insane developments. VIDEO BELOW In prior days when America was still a sane country, Lack’s charge would have led to him being laughed out of office. He would have had to resign and disappear from public life. Today in the make-believe world that Western propaganda has created, Lack’s statement is taken seriously. Yet another terrorist threat has been identified–RT. (Although both Boko Haram and the Islamic State employ terror, strictly speaking they are political organizations seeking to rule, not terror organizations, but this distinction would be over Lack’s head. Yes, I know. There is a good joke that could be made here about what Lack lacks. Appropriately named and all that.) Nevertheless, whatever Lack might lack, I doubt he believes his nonsensical statement that RT is a terrorist organization. So what is his game?

The answer is that the Western presstitute media by becoming Ministries of Propaganda for Washington, have created large markets for RT, Press TV, and Al Jazeera. As more and more of the peoples of the world turn to these more honest news sources, Washington’s ability to fabricate self-serving explanations has declined. RT in particular has a large Western audience. The contrast between RT’s truthful reporting and the lies spewed by US media is undermining Washington’s control of the explanation. This is no longer acceptable. Lark has sent a message to RT. The message is: pull in your horns; stop reporting differently from our line; stop contesting the facts as Washington states them and the presstitutes report them; get on board or else. In other words, the “free speech” that Washington and its EU, Canadian, and Australian puppet states tout means: free speech for Washington’s propaganda and lies, but not for any truth. Truth is terrorism, because truth is the major threat to Washington. Washington would prefer to avoid the embarrassment of actually shutting down RT as its UK vassal did to Press TV. Washington simply wants to shut up RT. Lark’s message to RT is: self-censure. In my opinion, RT already understates in its coverage and reporting as does Al Jazeera. Both news organizations understand that they cannot be too forthright, at least not too often or on too many occasions.

I have often wondered why the Russian government allows 20 percent of the Russian media to function as Washington’s fifth column inside Russia. I suspect the reason is that by tolerating Washington’s blatant propaganda inside Russia, the Russian government hopes that some factual news can be reported in the US via RT and other Russian news organizations. These hopes, like other Russian hopes about the West, are likely to be disappointed in the end. If RT is closed down or assimilated into the Western presstitute media, nothing will be said about it, but if the Russian government closes down Washington’s agents, blatant liars all, in the Russian media, we will hear forever about the evil Russians suppressing “free speech.” Remember, the only allowable “free speech” is Washington’s propaganda. Only time will tell whether RT decides to be closed down for telling the truth or whether it adds its voice to Washington’s propaganda...

*****************************************************

The other item in the interview was the downgrading of Russian credit to junk status. Standard and Poor’s downgrade is, without any doubt, a political act. It proves what we already know, and that is that the American rating firms are corrupt political operations. Remember the Investment Grade rating the American rating agencies gave to obvious subprime junk? These rating agencies are paid by Wall Street, and like Wall Street they serve the US government. A look at the facts serves to establish the political nature of the ruling. Don’t expect the corrupt US financial press to look at the facts. But right now, we will look at the facts. Indeed, we will put the facts in context with the US debt situation.

According to the debt clocks available online, the Russian national debt as a percentage of Russian GDP is 11 percent. The American national debt as a percentage of US GDP is 105 percent, about ten times higher. My coauthors, Dave Kranzler, John Williams, and I have shown that when measured correctly, the US debt as a percent of GDP is much higher than the official figure. The Russian national debt per capita is $1,645. The US national debt per capita is $56,952. The size of Russia’s national debt is $235 billion, less than one quarter of a trillion. The size of the US national debt is $18 trillion, 76.6 times larger than the Russian debt. Putting this in perspective: according to the debt clocks, US GDP is $17.3 trillion and Russian GDP is $2.1 trillion. So, US GDP is 8 times greater than Russian GDP, but US national debt is 76.6 times greater than Russia’s debt. Clearly, it is the US credit rating that should have been downgraded to junk status. But this cannot happen. Any US credit rating agency that told the truth would be closed and prosecuted. It wouldn’t matter what the absurd charges are. The rating agencies would be guilty of being anti-american, terrorist organizations like RT, etc. and so on, and they know it. Never expect any truth from any Wall Street denizen. They lie for a living.

According to this site: http://people.howstuffworks.com/5-united-states-debt-holders.htm#page=4 the US owes Russia as of January 2013 $162.9 billion. As the Russian national debt is $235 billion, 69 percent of the Russian national debt is covered by US debt obligations to Russia.

If this is a Russian Crisis, I am Alexander the Great.

ROBERTS MAKES A BOLD AND NIFTY OFFER!


To dramatize the situation, if President Putin will grant me Russian citizenship and allow me to appoint Michael Hudson and Nomi Prins as my deputies, I will take over the operation of the Russian central bank and put the West out of operation.

MUCH MORE FUN AND GAMES AT LINK


Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts' latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.

https://www.youtube.com/watch?x-yt-ts=1422327029&x-yt-cl=84838260&v=lL8FzvaXTcQ&feature=player_embedded

[Wellstone ruled]

9. This whole load of crap is nothing more than

building the Empire of the USA. We want the Oil under the Arctic Ocean,just so happens the Russians have proven reserves and a completed well in that area. Surprise surprise!!

[Fuddnik]

10. Not to mention that a lot of parties have a vested interest in re-igniting a cold war.

[Demeter]

13. Isn't it Friday yet?

Sigh. Freezing rain. And it's not even up to freezing.
Sick kid. Doesn't even stay in school long enough to catch anything, so how did she get sick?

This weekend we poke a stick at George Soros, a good example of the angry old man waving his fists and shouting "Get off my lawn!" Hungarian music for soundtrack.

[xchrom]

14. Greece's Banks Are Now Surging Back After Yesterday's Chaos

http://www.businessinsider.com/greeces-banks-are-now-surging-back-after-yesterdays-chaos-2015-1

After a brutal, amazing sell-off yesterday, Greece's major listed banks are surging back today.

After a 26.8% share price collapse yesterday, Alpha Bank is up by almost 20% today, showing just how volatile and tense Greek markets are at the moment.

All the major banks are back up, by between 8% and 20%. The overall Athens stock index is up just 3% as of 11:50 a.m GMT (6:50 a.m. GMT), showing that this really is a banking phenomenon.

Here's how it looks for Alpha Bank:



Read more: http://www.businessinsider.com/greeces-banks-are-now-surging-back-after-yesterdays-chaos-2015-1#ixzz3QDJ5ioOS

[Demeter]

15. Russia, Iran to Create Joint Bank for Transactions in National Currencies

http://sputniknews.com/business/20150127/1017387265.html




Iran Joins Growing List of Countries to Ditch Dollar in Foreign Trade

Relations between Moscow and Tehran are actively developing, according to Iranian ambassador, so the two countries are planning to trade in national currencies. Russia and Iran plan to create a joint account for national currency trade, Iranian Ambassador to Russia Mehdi Sanaei told RIA Novosti in an interview Tuesday.

"Both sides plan to create a joint bank, or joint account, so that payments may be made in rubles and rials and there is an agreement to create a working group [for this]," Sanaei said.

The Iranian ambassador added that relations between Moscow and Tehran "are actively developing" and that 2014 was "a very fruitful year" for both countries.

The Iranian Central Bank deputy governor announced last week that it suspended the use of the US dollar in foreign trade transactions, adding that bilateral currency swap agreements were under consideration. In November 2014, Russian President Vladimir Putin announced that Russia would quit the "dollar dictatorship," switching to more widespread use of the ruble and the yuan in international transactions. In late December, the Russian state agricultural watchdog said Moscow and Tehran could use their national currencies in food trade. UN sanctions prohibit arms trade with Iran but Moscow and Tehran cooperate in the fields of energy, industry, transport and agriculture.

“I think that in 2015 we need to work on this so that Iran has concrete economic contracts with the EEU…Iran plans to use this opportunity for its exports to Russia and other [countries],” Sanaei said.

“It’s possible that some sort of contract or memorandum on mutual understanding needs to be signed,” the ambassador added.

He said that currently there are high tariffs on Iranian exports to Russia for goods.

MORE

[Demeter]

16. Obama proposes new oil drilling off Atlantic coast while adding limits in Alaska

http://www.washingtonpost.com/national/health-science/obama-proposes-new-oil-drilling-off-atlantic-coast-while-adding-limits-in-alaska/2015/01/27/46246de4-a657-11e4-a7c2-03d37af98440_story.html

DRILL, BABY, DRILL! CONFIRMING MY NIGHTMARE SCENARIO: OBAMA IS "W" IN BLACKFACE.

[xchrom]

17. Deutsche Bank Actually Made Money Last Quarter

http://www.businessinsider.com/afp-deutsche-bank-profit-more-than-doubles-2015-1

Berlin (AFP) - Deutsche Bank, Germany's biggest lender, said Thursday that its net profit for 2014 more than doubled from the previous year, to a better-than-expected 1.7 billion euros ($1.9 billion).

The bank's bosses, who introduced a drive to reduce costs and boost profitability when they took over in 2012, said they were "encouraged" by the group's results but would not take their foot off the pedal.

Analysts polled by Factset had pencilled in a net profit for last year of 1.3 billion euros after the bank had posted 681 million euros in 2013.

The Frankfurt-based banking giant's net revenue in 2014 remained stable at 32 billion euros and in line with expectations, it said.



Read more: http://www.businessinsider.com/afp-deutsche-bank-profit-more-than-doubles-2015-1#ixzz3QDJxwIeN

[Demeter]

18. They better enjoy it while it lasts

[Demeter]

19. SEC pushes for reversal of major U.S. insider trading ruling

IT WOULD TAKE ANOTHER CIVIL WAR, IMO, TO REVERSE THAT LITTLE TBTF PERK

http://www.reuters.com/article/2015/01/26/usa-insidertrading-sec-idUSL1N0V510420150126

The U.S. Securities and Exchange Commission on Monday supported a bid by prosecutors in New York for a shot at overturning a ruling that cleared two hedge fund managers of insider trading and limited the ability of authorities to pursue such cases.

The SEC, in a court filing, backed Manhattan U.S. Attorney Preet Bharara's request that the 2nd U.S. Circuit Court of Appeals reconsider its ruling from December reversing two hedge fund managers' insider trading convictions.

The regulator said the decision "could negatively affect the SEC's ability to protect investors and the markets through meritorious insider trading enforcement actions against both tippers and tippees."

In particular, the SEC said the ruling could impede cases where a tipper's only benefit for disclosing information was a trader's friendship...MORE

[xchrom]

20. Shell Announces Drop In Profits On Sliding Oil Prices

http://www.businessinsider.com/afp-shell-announces-profit-fall-on-sliding-oil-prices-2015-1

London (AFP) - Energy group Royal Dutch Shell on Thursday announced an eight-percent drop in annual net profits owing to a slump in global oil prices and said it would accelerate spending cuts.

Profit after tax dropped to $15.05 billion (13.3 billion euros) in 2014 compared with the Anglo-Dutch company's performance one year earlier, dragged down by plunging earnings in the fourth quarter as the cost of crude tumbled.

"Compared with the fourth quarter 2013, earnings... were impacted by the significant decline in (the price of) oil," Shell said in a statement.

Fourth-quarter net profit plunged 57 percent to $773 million compared with the final three months of 2013.



Read more: http://www.businessinsider.com/afp-shell-announces-profit-fall-on-sliding-oil-prices-2015-1#ixzz3QDKc16Nm

[xchrom]

21. EU Official To Greece: 'Respect The Rest Of Europe'

http://www.businessinsider.com/afp-greek-government-to-hold-first-talks-with-eu-leaders-2015-1

Athens (AFP) - Greece's radical new government is to hold its first talks with a foreign dignitary on Thursday, hosting the head of the European parliament a day after announcing moves to roll back austerity measures.

In sweeping announcements two days after taking power, Prime Minister Alexis Tsipras on Wednesday began reversing many of the unpopular measures that underpin Greece's 240-billion-euro ($269 billion) bailout programme.

His "national salvation" government said it was putting on hold plans to sell a majority stake in the ports of Piraeus and Thessaloniki, and would also halt the privatisation of the top electricity and petroleum companies.

The announcements sent the Athens stock market diving by more than 9.0 percent on Wednesday, with major banks tumbling by a quarter.



Read more: http://www.businessinsider.com/afp-greek-government-to-hold-first-talks-with-eu-leaders-2015-1#ixzz3QDLDPq4O

[Demeter]

22. EU says near deal with Washington on derivatives rules

ONE SHUDDERS TO THINK WHAT THIS DEAL WILL LOOK LIKE.

http://www.reuters.com/article/2015/01/27/us-eu-usa-derivatives-idUSKBN0L02BM20150127

The European Union and the United States are poised to accept each other's rules on financial derivatives trading in a bid to prevent a global market that supports economic growth from fragmenting, a senior EU official said on Tuesday. The two sides are introducing rules to make derivatives such as credit default swaps more transparent after their opacity played a key role in exacerbating the 2007-09 financial crisis. Some of the U.S. rules would force some European banks to comply with American and EU rules, a costly undertaking. The bulk of swaps are traded in London and New York and banks say the prospect of rule clashes is already fragmenting markets.

Olivier Guersent, a top official in the European Commission's financial services unit, said the 18-month long talks became blocked until the arrival of Tim Massad as chairman of the U.S. Commodity Futures Trading Commission (CFTC) regulator last year...The United States has proposed streamlinining registration requirements for non-U.S. derivatives traders...Separately the United States wants the EU to allow European customers to continue using U.S. clearing houses for derivatives trades without having to hold extra capital.

As a deal on ironing out differences in derivatives rules nears, a new potential regulatory clash looms over how market benchmarks should be regulated, Guersent said. The EU is approving a law to regulate market benchmarks after banks were fined for attempting to rig currency and interest rate benchmarks. The United States shows no sign of introducing binding rules and is sticking with implementing globally agreed non-binding principles for the self-regulated sector.

Under the draft EU law, investors in the 28-country bloc can only use benchmarks from elsewhere if they are compiled based on rules that are as strict as those in the EU...The European Parliament is discussing a compromise in a bid to avert European investors being denied the use of U.S. benchmarks.

[Demeter]

25. EU aims to complete capital markets union by 2019

WHAT ARE THE ODDS ON THERE STILL BEING AN EU IN 2019?

http://www.reuters.com/article/2015/01/27/eu-markets-reform-idUSL1N0V61L720150127

The European Union will put in place its "capital markets union" by 2019, starting with quick wins like encouraging direct investment in businesses, an EU document seen by Reuters showed.

The document, co-written by EU financial services chief Jonathan Hill, sets out a timetable for the first time on a core policy of the European Commission to help revive the bloc's flagging economy.

Harmonising rules for capital markets to increase the trade in stocks, bonds and other securities is an important goal for the EU. Many countries on the continent have historically relied more on bank loans than on traded securities to fund their businesses, which can make them vulnerable to shocks to the banking sector. The EU's executive Commission is due on February 18 to publish three papers to kick off its plans.

Sceptics say a fully seamless union of EU capital markets is impossible to achieve. Persuading the 28 EU member states to harmonise their tax and insolvency laws would be politically impossible. Britain, which supervises the EU's biggest capital market in London, has made clear it will not hand over full supervision of the industry to Brussels.

But Brussels believes there are a number of important steps it can take to boost investment and make the continent less vulnerable shocks to its banking sector...


THAT'S THE PROBLEM ON STARTING YOUR LOGICAL THEOREM WITH A FAULTY PREMISE

[Demeter]

23. Yahoo to spin off Alibaba stake

http://www.siliconvalley.com/ci_27406362/yahoo-spin-off-alibaba-stake

Yahoo plans to return $40 billion to its shareholders by spinning off its huge stake in Chinese e-commerce company Alibaba, the company said Tuesday.

"This level of capital return is historic, especially for a company of our size," said CEO Marissa Mayer, announcing a tax-free plan to distribute Alibaba holdings to investors.

Wall Street cheered the decision that avoids a multibillion-dollar tax bill, but the divestment leaves an uncertain future for the Internet search engine pioneer as its struggling core business becomes vulnerable to takeover attempts. The company will transfer its Alibaba holdings into a newly formed, publicly traded investment company called SpinCo.

CATCHY NAME...REALLY SUGGESTIVE

MORE

[xchrom]

24. The Aussie Dollar Is Getting Smoked

http://www.businessinsider.com/aussie-dollar-is-tumbling-2015-1

The Aussie dollar traded up to 0.8026 in early European trade but it has crashed around a cent-and-a-half since then to 0.7886 this afternoon on the back of an article from Terry McCrann saying the RBA is likely to cut next week and is downgrading its growth and inflation forecasts.

There’s also the move from the RBNZ, which this afternoon changed tack on monetary policy.

There could of course be some weakness in the Aussie given the poor close on US stock markets and the obvious uptick in risk aversion.

But the sellers are in and the Aussie looks biased lower again.

Here’s the chart:

http://static6.businessinsider.com/image/54c959ac69bedd141913dd9c-964-440/fx_image%20(53).png

Read more: http://www.businessinsider.com/aussie-dollar-is-tumbling-2015-1#ixzz3QDMBdySI

[Demeter]

26. The real reason China isn’t the world’s biggest economy

http://finance.yahoo.com/news/real-reason-china-isn-t-222704419.html

Chinese leaders have been quick to put on a brave face after the ignominy of missing their economic-growth targets for first time since 1998. But while Premier Li Keqiang was telling global leaders in Davos not to worry about the economy, back at home the head of the country’s statistics bureau was rejecting claims China was already the world’s biggest economy.

Official numbers may have underestimated China’s price levels and overestimated gross domestic product, National Bureau of Statistics chief Ma Jiantang said. This, he added, meant calculations the International Monetary Fund made ranking China’s economy ahead of that of the U.S. on a purchasing-power-parity basis were wrong.

But if the IMF got China’s gross domestic product wrong due to understated prices, what else might be in error?

It is well known that the ruling Communist Party lays great store in its track record of achieving GDP growth rates that the rest of the world can only dream of. This economic success helps underpin the legitimacy of China’s one-party state, now in its 65th year.

These comments by Ma will fuel suspicions that a sizeable part of China’s growth miracle — particularly since 2008 and the nation’s massive stimulus — is simply counting inflation. Put another way, we are not measuring growth but rather the fact that things people were doing before now cost a lot more....MORE

[Demeter]

27. U.S. multinationals hit hard by strong dollar, to bleed further into 2015

http://www.reuters.com/article/2015/01/27/us-usa-earnings-dollar-idUSKBN0L02HO20150127?feedType=RSS&feedName=businessNews

A slew of U.S. multinational companies, from DuPont (DD.N) to Procter & Gamble (PG.N), showed that a strong U.S. dollar hurt their earnings, and several blue-chip exporters said the situation will get worse if the greenback holds its strength.

All told, the resurgent U.S. currency could shave up to $12 billion off U.S. companies' fourth-quarter 2014 revenue alone, according to currency expert Wolfgang Koester, chief executive of FireApps, a data analytics company in Phoenix, Arizona, that examines quarterly reports for currency-related losses.

The pain is hitting multiple sectors, including industrial companies such as 3M Co (MMM.N), technology companies like Microsoft Corp (MSFT.O) and Apple Inc (AAPL.O), airlines such as American Airlines Group Inc (AAL.O), healthcare companies, including Bristol-Myers Squibb Co (BMY.N) and Pfizer Inc (PFE.N), and consumer firms like Procter & Gamble - which all garner a large portion of their sales from outside the United States.

"This is a slow-motion crash," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh. It could take a couple of quarters for currency conversion losses to show up, she said.

MORE

[xchrom]

28. GLOBAL STOCKS, OIL STABILIZE AFTER FED STATEMENT

http://hosted.ap.org/dynamic/stories/F/FINANCIAL_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-01-29-07-55-30

KEEPING SCORE: Germany's DAX rose 0.2 percent to 10,734.45 and France's CAC-40 gained 0.3 percent to 4,625.36. Britain's FTSE 100 fell 0.3 percent to 6,802.70. Wall Street looked set for gains after two days of losses. Dow and S&P 500 futures were up 0.5 percent.

FED MEETING: The Federal Reserve issued its first policy statement of the year, making clear that it would remain "patient" in raising interest rates from near zero, which was expected. But it also strengthened its assessment of the U.S. economy, noting it is expanding at a solid pace and generating strong job growth.

THE QUOTE: "The fact is no one knows when a rate hike will occur," IG's chief market strategist Chris Weston said in a commentary. "And, while the Fed would like to be in a position to raise, the lessons of 1938 still haunt them: raising rates too early caused the second leg of the Great Depression."

EARNINGS: Investors were also keeping an eye on corporate earnings around the world. Oil company Shell saw its shares drop after it warned it would cut spending to cope with the fall in oil prices. Telecoms company Nokia and Germany's Deutsche Bank reported a rise in earnings. In the U.S., the focus will turn to reports from Google, Ford and Amazon, among others.

ALIBABA ALARM: In China, news was dominated by a scathing report by regulators accusing e-commerce giant Alibaba of failing to prevent fake goods from being sold on its websites pushed its share price sharply lower. Further muddying the water was a disclosure that the report was delayed to avoid affecting Alibaba's $25 billion New York stock market listing. Alibaba's shares fell 4.5 percent Wednesday.

[xchrom]

29. FED SEES STRENGTHENING ECONOMY BUT STAYS 'PATIENT' ON RATES

http://hosted.ap.org/dynamic/stories/U/US_FEDERAL_RESERVE?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-01-29-07-21-20

WASHINGTON (AP) -- The Federal Reserve's outlook for the U.S. economy is steadily brightening. Yet the Fed will be "patient" in raising interest rates from record lows.

That was the dual message the central bank sent Wednesday in a statement it issued after its latest policy meeting.

Why is no rate hike likely soon? The main reason, the Fed suggested in its statement, is that inflation remains well below the central bank's target rate.

And it said the pressures holding down inflation - mainly plunging oil prices - have intensified. The Fed said it thinks inflation will decline further before eventually reaching the central bank's 2 percent target rate.

[xchrom]

30. GERMAN UNEMPLOYMENT UP TO 7 PCT IN JAN AMID SEASONAL FACTORS

http://hosted.ap.org/dynamic/stories/E/EU_GERMANY_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-01-29-04-37-09

BERLIN (AP) -- German unemployment rose to 7 percent in January, but the increase was due largely to seasonal factors and the Federal Labor Agency says the job market remains strong.

The rate rose 0.6 percentage points from 6.4 percent in December, with 3.03 million people out of work in January, the agency said in a report Thursday.

When adjusted for seasonal factors, however, the rate dropped to 6.5 percent from 6.6 percent in December.

The agency says the overall rise in January can be attributed to normal winter factors - like when construction work tails off - and that "the employment trend remains clearly upward."

[xchrom]

31. S&P CLOSE TO $1.37B DEAL OVER RISKY MORTGAGE BOND RATINGS

http://hosted.ap.org/dynamic/stories/U/US_SP_MORTGAGE_RATINGS_SETTLEMENT?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-01-28-19-10-43

WASHINGTON (AP) -- Standard & Poor's is close to a $1.37 billion settlement with the Obama administration and U.S. states over allegations it knowingly inflated its ratings of risky mortgage investments that helped trigger the financial crisis.

The credit rating agency is expected to sign an agreement to settle with the Justice Department and about 20 state attorneys general, a person familiar with the matter said Wednesday. The person spoke on condition of anonymity because the settlement isn't finalized and hasn't been announced. It may be completed next week, the person said.

John Piecuch, a spokesman for New York-based S&P, a division of McGraw Hill Financial Inc., said the company declined to comment.

The settlement would resolve civil charges filed nearly two years ago accusing S&P of failing to warn investors that the housing market was collapsing in 2006 because doing so would hurt its ratings business.

[xchrom]

32. Oil Trades Near Six-Year Low With U.S. Supply Highest Since 1982

http://www.bloomberg.com/news/articles/2015-01-29/oil-trades-near-six-year-low-amid-surging-u-s-crude-stockpiles

(Bloomberg) -- Oil traded near the lowest price in almost six years in New York after U.S. crude stockpiles climbed to the highest level since at least 1982.

West Texas Intermediate futures were little changed following Wednesday’s 3.9 percent drop. Crude inventories in the U.S., the world’s biggest oil consumer, expanded by 8.87 million barrels to 406.7 million last week, the Energy Information Administration reported. Royal Dutch Shell Plc said it will cut $15 billion of spending over the next three years.

“The huge build in U.S. crude-oil stocks reported by the EIA yesterday brought stockpiles to an all-time high and weighed on prices,” Michael Poulsen, an analyst at Global Risk Management Ltd. in Middelfart, Denmark, said by e-mail. The attitude among U.S. producers remains “all hands on deck and pump away.”

West Texas Intermediate for March delivery was at $44.41 a barrel in electronic trading on the New York Mercantile Exchange, down 4 cents, at 11:59 a.m. London time. The contract dropped $1.78 to $44.45 on Wednesday, the lowest close since March 2009. The volume of all futures traded was about 26 percent below the 100-day average for the time of day.

[Demeter]

34. begs the question why prices at the pump went up 10-40 cents this week

[xchrom]

33. German Inflation Rate Turns Negative for First Time Since 2009

http://www.bloomberg.com/news/articles/2015-01-29/german-inflation-rate-turns-negative-for-first-time-since-2009

(Bloomberg) -- Germany’s inflation rate turned negative in January for the first time in more than five years, aggravating a slump in consumer prices in the euro area.

Prices in Europe’s largest economy fell 0.5 percent from a year earlier, the Federal Statistics Office in Wiesbaden said today. That’s the lowest rate since September 2009. Economists predicted a drop of 0.2 percent.

The European Central Bank committed last week to spend at least 1.1 trillion euros ($1.2 trillion) on government bonds and other assets to avert deflation in the euro area. Prices in the 19-nation bloc probably dropped this month at the second-fastest rate since the introduction of the single currency.

The outlook for lower inflation is boosting bonds as it preserves the purchasing power of their fixed payments. Underscoring that point, Germany’s 30-year yield fell below 1 percent for the first time on record on Thursday.