STOCK MARKET WATCH -- Thursday, 23 October 2014

[Tansy_Gold]

[font size=3]STOCK MARKET WATCH, Thursday, 23 October 2014[font color=black][/font]

SMW for 22 October 2014

AT THE CLOSING BELL ON 22 October 2014
[center][font color=red]
Dow Jones 16,461.32 -153.49 (-0.92%)
S&P 500 1,927.11 -14.17 (-0.73%)
Nasdaq 4,382.85 -36.63 (-0.83%)


[font color=green]10 Year 2.21% -0.02 (-0.90%)
30 Year 2.99% -0.02 (-0.66%) [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]

[Crewleader]

1. Divided Voters

[xchrom]

2. The World's Second Biggest Retailer Is Getting Hammered As Profits Collapse 90%

http://www.businessinsider.com/tesco-results-profit-collapse-2014-10

Tesco's results are out today for the first half of the year , and a breakdown of the results shows just how badly they're being hammered. Shares are down more than 5% just as the London Stock Exchange opens Thursday, adding to the last month's brutal sell-off.

Like for like sales are down 4.6%, trading profit is down 41% to £937 million, and revenue is down 4.5%.
Statutory profit before tax is down 91.9% to just £112 million for a business with revenue 300 times that. Dividends per share have collapsed to just 1.16 pence, a 75% decline.

Tesco's embarrassing profit over-estimation has been revised up to £263 million. That's £118 million in the first half of this year, £70 million for 2013-14 and £75 million for previous years
Earnings per share are through the floor. For continuing and discontinued operations, they're down from 10.17 pence to just 0.07 pence, a 99.3% decline.

Chairman Sir Richard Broadbent is standing down. Here's his statement:

"Once this transition is complete and business plans are in place, it will mark the beginning of a new phase for the company and I will begin now to prepare the ground to ensure an orderly process for my own succession at that time. My decision reflects the important principle of accountability on behalf of the Board and will support the company to draw a line under the past as it enters the next phase of its development."


Read more: http://www.businessinsider.com/tesco-results-profit-collapse-2014-10#ixzz3Gxg8aPdp

[xchrom]

3. The 10 Most Important Things In The World Right Now

http://www.businessinsider.com/10-most-important-things-in-the-world-right-now-october-23-2014-2014-10

1. Much of downtown Ottawa was on lockdown on Wednesday after a gunman, identified as Canadian Michael Zehaf-Bibeau, shot and killed a soldier at the National War Memorial on Parliament Hill.

2. Russian prosecutors have detained four Moscow airport workers, which officials say might be responsible for the plane crash that killed the CEO of French oil giant Total, 63-year-old Christophe de Margerie.

3. The World Health Organization updated its Ebola figures, warning that the virus could infect 10,000 people in West Africa by early December, while a total of 4,877 people have died from Ebola so far.

4. The National Institutes of Health has begun early human testing of an Ebola vaccine, called VSV-ZEBOV.

5. Tesco, the world's second-largest retailer, confirmed on Thursday that its first half pre-tax profit had been overstated by £263 million and announced that chairman Sir Richard Broadbent would step down.



Read more: http://www.businessinsider.com/10-most-important-things-in-the-world-right-now-october-23-2014-2014-10#ixzz3GxgiWQ00

[xchrom]

4. French PMI Comes In Horrible, As Europe Collapse Continues

http://www.businessinsider.com/french-pmi-falls-2014-10

France's PMI figure, a common business survey measure, fell to 48 and is now at an 8-month low.

Anything below 50 represents contraction. The current is figure is bad news, indicating that France's economy overall is back in recession.

That is in comparison to Germany, which got a shot in the arm today: Its PMI score is at 54.3, the highest in three months. Manufacturing was particularly good, edging back out of the contraction territory it looked like it was in last month.

France's manufacturing is dreadful in comparison, coming in at 47.3. Economists had expected a 48.5 print.

According to Twitter's Econhedge, the sub-index for new orders is falling even further, down to just 45.2. That's a strong signal that things could get even worse in the months ahead.

What's worse, the employment situation is deteriorating at the fastest pace in about 18 months. France's unemployment is already very high, at over 10%.



Read more: http://www.businessinsider.com/french-pmi-falls-2014-10#ixzz3GxhSGz8E

[xchrom]

5. China Wants Closer Military Ties With Iran

http://www.businessinsider.com/r-china-says-wants-closer-military-ties-with-iran-2014-10

BEIJING (Reuters) - China wants to have closer military ties with Iran, the Chinese defense minister told the visiting head of the Iranian navy on Thursday, state media reported, reaffirming Beijing's diplomatic links with Tehran despite controversy over its nuclear plans.

Chinese Defense Minister Chang Wanquan told Iranian Navy Commander Rear Admiral Habibollah Sayyari that the two armed forces have seen "good cooperation on mutual visits, personnel training and other fields in recent years", the official Xinhua news agency reported.

"Exchanges between the two navies have been fruitful and their warships have paid successful visits to each other," it paraphrased Chang as saying.

"Chang ... stressed China is willing to work with Iran to further pragmatic cooperation and strengthen military-to-military ties."



Read more: http://www.businessinsider.com/r-china-says-wants-closer-military-ties-with-iran-2014-10#ixzz3Gxly8voV

[xchrom]

6. UK Retail Sales Drop In September

http://www.businessinsider.com/uk-retail-sales-september-2014-10

UK retail sales fell by 0.3% in September from August, according to the Office of National Statistics.

However, sales were up 2.7% compared with the same month last year, representing the 18th consecutive month of year-on-year growth.



Read more: http://www.businessinsider.com/uk-retail-sales-september-2014-10#ixzz3GxmNzBci

[xchrom]

7. Two Chinese Manufacturers Are Battling To Sell High Speed Trains To California

http://www.businessinsider.com/r-chinese-trainmakers-set-to-go-head-to-head-for-california-deal-2014-10

SHANGHAI (Reuters) - China's CSR Corp Ltd is keen to supply high-speed trains to California, a company official said, in a move that will pit the trainmaker against domestic rival China CNR Corp Ltd.

China has made no secret of its desire to export its high-speed technology abroad, having built over 12,000 kilometers of track at home in less than a decade. CNR and CSR are China's top locomotive makers, while China Railway Construction Corp Ltd and China Railway Group Ltd build track.

U.S.-based SunGroup USA told Reuters earlier this week that it had teamed up with CNR and its unit Tangshan Railway in a pitch to supply California's $68 billion project with up to 95 trains that can travel as fast as 354 kilometers per hour (221 miles per hour).

"The U.S. is a market that we have been closely watching for many years," said the official from CSR's publicity department, who gave his surname as Xu.



Read more: http://www.businessinsider.com/r-chinese-trainmakers-set-to-go-head-to-head-for-california-deal-2014-10#ixzz3GxnKKXrY

[Hotler]

26. Too bad most of workers here are to lazy to get a job and too bad.......

most of our students coming out of college are dumb and too bad we don't have any manufacturing technology here or we could be designing and building high speed trains and shipping them to other countries. The only thing this country is good at is bombing and kill people in other countries.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

I have no hope. I have no........

[Demeter]

30. Passenger trains are SOCIALISM!

Amtrak! Europe! government monopoly!

I have no hope, AMERICA has no future. Just rocks in the head.

[xchrom]

8. The UK Independence Party Looks Set To Hand David Cameron Another Embarrassing Defeat

http://www.businessinsider.com/the-uk-independence-party-look-set-to-hand-david-cameron-another-embarrassing-defeat-2014-10

The UK Independence Party (UKIP) has surged to a 13 point lead in the Rochester & Strood by-election, according to the latest poll.

The telephone poll by polling group ComRes found 43% of respondents planned to vote for UKIP next month, with the Conservative Party looking a distant second on 30%.

It was widely expected that Rochester & Strood would provide a more difficult challenge for UKIP leader Nigel Farage. Even after UKIP romped home in Clacton to gain its first-ever member of parliament, earlier polls in Rochester put UKIP ahead of the Conservatives by just 9 percentage points. The UKIP lead has now increased to 13 points.

News of a slip in the polls will be particularly embarrassing for the Conservatives as they struggle to hang onto a seat they comfortably won with a majority of 10,000 votes at the last election. Mark Reckless, the man who won it for them in 2010, is now standing as UKIP's candidate after a high-profile defection in September.



Read more: http://www.businessinsider.com/the-uk-independence-party-look-set-to-hand-david-cameron-another-embarrassing-defeat-2014-10#ixzz3GxuEpUyH

[xchrom]

9. Here Are The Breakeven Oil Prices For America's Shale Basins

http://www.businessinsider.com/shale-basin-breakeven-prices-2014-10

The price of a barrel of light sweet crude oil has tumbled from over $100 per barrel this summer to just around $80 per barrel this week.

Analysts have attributed this to slowing demand due to the decelerating global economy and higher supply in large part due to the US shale energy boom.

However, the US shale basins are relatively expensive to tap. And when the price of oil falls below a certain breakeven level, fracking for oil in these unconventional plays becomes uneconomical.

"[O]n a reserve weighted basis, the average breakeven for unconventional plays in the US is $76- 77/bbl, at an asset level," Morgan Stanley's Martijn Rats, Haythem Rashed and Sasikanth Chilukuru write. "At the corporate level, this breakeven is likely to be higher. This too suggests that if oil prices persist at current levels, this would likely lead to a slow down in spending. "

The analysts characterized the downside scenario of persistently low oil prices as the "capex cliff," a scenario in which energy companies cut back sharply on spending. And that in turn could ripple through the economy.

Their report included this chart of the breakeven oil prices for the various US shale basins.



Read more: http://www.businessinsider.com/shale-basin-breakeven-prices-2014-10#ixzz3Gxuth4Ez

[xchrom]

10. INDIA PICKS UP PACE ON ECONOMIC OVERHAUL

http://hosted.ap.org/dynamic/stories/A/AS_INDIA_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-10-23-02-36-32

NEW DELHI (AP) -- After months of criticism for not moving aggressively enough on promises of an economic overhaul, India's new prime minister has announced a string of policies designed to kick-start Asia's third-largest economy.

Over the past week, Prime Minister Narendra Modi has unveiled an overhaul of India's archaic labor laws, freed diesel prices from state control and signed an executive order promising to open India's coal industry to private companies. He also appointed Arvind Subramanian, a respected Washington, DC-based economist, as the country's top economic adviser.

Modi, who led his Bharatiya Janata Party to a landslide election win in May on promises that he would re-energize India's stumbling economy, faced a flurry of criticism after his July budget failed to provide new direction.

But that appears to be changing, reigniting optimism that India can lift its economic game.

[xchrom]

11. TAX SETTLEMENT BOOSTS COMCAST 3RD-QUARTER RESULTS

http://hosted.ap.org/dynamic/stories/U/US_COMCAST_RESULTS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-10-23-07-05-44

NEW YORK (AP) -- Comcast Corp.'s third-quarter net income jumped 50 percent in the third quarter, helped by a one-time tax settlement, growth in Internet subscribers and fewer defectors from its cable service.

Comcast is in the midst of a $45 billion takeover of Time Warner Cable, a deal that is under regulatory review. Cable providers have been consolidating as more viewers shift to watching video on mobile tablets, computers and smartphones rather than through traditional cable TV stations. AT&T Inc. is planning to buy satellite service DirecTV for $48.5 billion in a merger also under review. Meanwhile, channels like HBO and CBS have announced standalone streaming services, signaling the industry is undergoing a sea change.

The nation's largest cable provider says its net income rose to $2.59 billion, or 99 cents per share. That compares with net income of $1.73 billion, or 65 cents per share last year. Excluding a hefty one-time tax settlement, net income totaled 73 cents per share, beating analyst expectations of 71 cents per share, according to FactSet.

Revenue rose 4 percent to $16.79 billion from $16.15 billion last year. Analysts expected $16.8 billion.

[xchrom]

12. EUROPE SHARES UP, ASIA DOWN ON BUSINESS SURVEYS

http://hosted.ap.org/dynamic/stories/F/FINANCIAL_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-10-23-05-50-57

KEEPING SCORE: European markets were mostly higher in morning trade. France's CAC-40 recouped earlier losses to be up 0.4 percent to 4,119.55 and Germany's DAX rose 0.5 percent to 8,983.94. But Britain's FTSE 100 lost 0.5 percent to 6,370.86. Futures indicated gains for Wall Street. Dow futures rose 0.5 percent to 16,505 and S&P 500 futures advanced 0.5 percent to 1,934.40.

CHINA FACTORIES: A preliminary reading of China's massive manufacturing industry for October provided mixed messages. HSBC's factory purchasing managers index rose to 50.4 in October from 50.2 the previous month (figures above 50 indicate expansion) but the output sub-index slipped to a five month low. "While the manufacturing sector likely stabilized in October, the economy continues to show signs of insufficient effective demand," HSBC said.

EUROPE DATA: A stronger than anticipated European economic survey has raised hopes the region may avoid slipping back into recession. Financial information company Markit says its composite purchasing managers index for the 18-country eurozone, a broad gauge of business activity, rose to 52.2 points in October from 52.0 in September.

ENERGY: Oil prices extended losses after the U.S Energy Department reported an increase in oil inventories that was far larger than expected. Benchmark U.S. crude was down 7 cents at $80.45 a barrel in electronic trading on the New York Mercantile Exchange after falling $1.97 on Wednesday. The slide in energy prices in the past two weeks has raised doubts about the strength of the global economy but also offers some upside in Asia where many countries are reliant on imported fuel.

ASIA'S DAY: In Asia, Japan's Nikkei 225 closed down 0.4 percent at 15,138.96 while Hong Kong's Hang Seng fell 0.3 percent 23,333.18. Seoul's Kospi shed 0.3 percent to 1,931.65 and Australia's S&P/ASX 200 dropped less than 0.1 percent to 5,383.10. China's Shanghai Composite was down 1.0 percent at 2,302.42.

[xchrom]

13. EUROPEAN AUTHORITIES AIM TO PURGE WEAK BANKS

http://hosted.ap.org/dynamic/stories/E/EU_EUROPE_BANKS_TEST?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-10-23-06-22-52

FRANKFURT, Germany (AP) -- Europe's biggest banks are facing a day of judgment as the European Central Bank prepares to unveil the results of a yearlong search through the dark corners of their finances.

It's a step that comes none too soon for the struggling economy of the 18-country eurozone.

The ECB review to be unveiled Sunday seeks to identify banks that are too weak to lend to businesses or make it through another recession and force them to strengthen their finances. It includes a detailed look at 130 banks' loans, holdings and investments, as well as a so-called stress test that simulates how banks would fare in a deep economic downturn.

Those that fall short in the tests will have to raise more money - and could have to restructure or be sold to stronger partners.

The purpose: leave banks in better shape to lend to companies, enabling businesses to expand production, hire people and get the economy growing again.

[xchrom]

14. SPANISH JOBLESS FIGURE DROPS AS ECONOMY PICKS UP

http://hosted.ap.org/dynamic/stories/E/EU_SPAIN_UNEMPLOYMENT?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-10-23-06-37-18

MADRID (AP) -- Spain's unemployment rate dropped to 23.7 percent in the third quarter from 24.5 percent in the previous three-month period thanks to a recovering economy and a bumper summer tourism season, official statistics showed Thursday.

The number of jobless people fell by 195,200 July through September, leaving the total number of unemployed at a rounded 5.4 million, Spain's statistics institute said. That's down from 5.6 million in the second quarter.

Most new jobs were created in the services sector, which includes jobs in the country's key tourism industry.

Madrid was the strongest job gainer with the No. 2 and No. 3 spots going to Catalonia and the Balearic Islands, two of Spain's top holiday destination areas.

[xchrom]

15. CORPORATE GIANTS FUNDING STATE BALLOT INITIATIVES

http://hosted.ap.org/dynamic/stories/U/US_MIDTERM_ELECTIONS_BALLOT_MEASURES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-10-23-05-03-37

WASHINGTON (AP) -- Voters may not know it, but the millions of dollars paying for ads on ballot measures they will consider next month come from large companies and national advocacy groups.

Many of the messages are tailored to defend or expand the business interests of companies such as Coca-Cola, Monsanto and ExxonMobil, yet few have their names in the ads.

For example, $6.4 million in ads funded by Coloradans for Better Schools is backed by the Rhode Island-based Twin Rivers Casino in favor of a ballot initiative that would expand gambling to horse tracks. Opponents, calling themselves Don't Turn Racetracks Into Casinos, are backed by a group of Colorado casinos and are helping fund $5.7 million in ads to defend their turf.

Through Oct. 20, TV ad spending on ballot issues totaled roughly $119 million, according to an analysis conducted by the Washington-based Center for Public Integrity, based on preliminary data from media tracking service Kantar Media/CMAG. Four of the five most expensive ballot initiatives - a process designed to give voters a direct say over public policy - feature at least one corporate patron.

[xchrom]

16. CREDIT SUISSE Q3 PROFIT MORE THAN DOUBLES

http://hosted.ap.org/dynamic/stories/E/EU_SWITZERLAND_EARNS_CREDIT_SUISSE?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-10-23-04-57-37

GENEVA (AP) -- Credit Suisse's profits more than doubled in the third quarter as Switzerland's second-largest bank benefited from cost cutting, brisk business in emerging markets and the services it provides for wealthy clients.

Net profit rose to 1.025 billion Swiss francs ($1.07 billion) in the July-September period from 454 million francs a year earlier, the bank said Thursday.

"We delivered a good performance," said CEO Brady Dougan of both the investment banking and wealth management divisions.

Dougan said wealth management profits were aided by the cost cutting, but margins remain subdued and revenue was hurt by low interest rates. The investment banking, he said, showed "robust client activity across many of our businesses," particularly with fixed income trading and equity underwriting.

[xchrom]

17. RULES ON BANK RISK IN MORTGAGE BONDS BEING ADOPTED

http://hosted.ap.org/dynamic/stories/U/US_MORTGAGE_RISK_RULES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-10-22-17-02-49

WASHINGTON (AP) -- Federal regulators are proceeding with new rules that ease guidelines for banks selling mortgage securities and could mean fewer borrowers will need to make hefty down payments.

The Securities and Exchange Commission voted 3-2 Wednesday to adopt the rules, which six federal agencies have been working on since 2011. The SEC'S two Republican commissioners, Daniel Gallagher and Michael Piwowar, opposed adoption. The Federal Reserve governors approved the rules on a 5-0 vote later in the day. Three other agencies adopted the rules Tuesday.

With the financial crisis and subprime mortgage bust receding further into history, the regulators are looking to inject more life into the still-recovering housing market.

The rules govern the amount of risk banks must take on when they package and sell mortgage securities in a multitrillion-dollar market. In the final rules, the regulators have dropped a key requirement: a 20-percent down payment from the borrower if a bank didn't hold at least 5 percent of the mortgage securities tied to those loans on its books.

[xchrom]

18. EU’s Top Banker Warns of Rule Fixation ‘Going Beyond Reason’

http://www.bloomberg.com/news/2014-10-23/eu-s-top-banker-warns-of-rule-fixation-going-beyond-reason-1-.html

Christian Clausen, president of the European Banking Federation, said regulators need to rethink an approach he warned will bury the industry under a mountain of rules with little coherence.

Clausen, who is also the chief executive officer of Nordea Bank AB (NDA), said his group plans to take up the issue with the new European Commission and parliament in an effort to prevent regulators adding more rules to the existing framework.

“We need to have a serious talk,” he said yesterday in an interview in Stockholm. “We need to calibrate, we cannot just add on. I think it is going beyond reason.”

Bankers across Europe are trying to anticipate what regulatory changes might follow the results of stress tests by the European Central Bank and the European Banking Authority, with results due to be released on Oct. 26. The examinations will establish the financial health of Europe’s biggest banks and provide a master document from which the ECB can start its supervisory work on Nov. 4.

[xchrom]

19. Euro-Area Manufacturing Grows as Risk of Recession Eases

http://www.bloomberg.com/news/2014-10-23/european-factories-avoid-contraction-as-demand-drop-shows-risks.html

The euro-area economy may have moved one step away from another recession.

A Purchasing Managers’ Index showed manufacturing in the region unexpectedly grew this month, while Spain’s economy showed signs of a further recovery, with third-quarter unemployment dropping to the lowest level since 2011. In Germany, factories rebounded from a slump in September.

“The euro-zone recovery still has some legs,” said Martin van Vliet, an economist at ING Bank in Amsterdam. “However, even if the recovery has not ground to a complete halt, growth remains much too weak for anyone’s comfort.”

The 18-region economy failed to grow in the second quarter, and European Central Bank President Mario Draghi has warned of a deflationary spiral of falling prices, with households postponing spending. While the PMI reports lifted stocks and the euro, they also highlighted weak spots as manufacturing demand fell and French factories continued to struggle.

[xchrom]

20. Swedish Government Seeks Higher Taxes as Budget Faces Opposition

http://www.bloomberg.com/news/2014-10-23/sweden-pledges-3-4-billion-in-2015-to-restore-welfare-model.html

Sweden’s new minority government faces challenges in pushing through its new budget of tax increases and spending as it seeks to create more jobs and protect the Nordic country’s welfare model.

The new Social Democratic-led government today unveiled its budget for next year, pledging to raise taxes to pay for 25 billion kronor ($3.4 billion) in added spending. The government will raise levies to fund spending on jobs, gender equality, infrastructure and reduced climate impact.

“Greater cohesion and gender equality are crucial for Sweden’s development,” Finance Minister Magdalena Andersson said. “With reforms for jobs, schools, the environment and a functioning Swedish model, Sweden’s economy and labor market can be strengthened and can perform better.”

The Social Democratic and Green Party minority government gained power this month after ousting Fredrik Reinfeldt’s four-party center-right coalition. The government now faces a fight in getting its full plan through parliament, after the anti-immigration Sweden Democrats party surged in September’s election and now holds the balance of power.

[xchrom]

21. Europe Stocks Fall as Disappointing Earnings Outweigh PMI

http://www.bloomberg.com/news/2014-10-23/european-index-futures-drop-before-factory-services-data.html

European stocks declined as disappointing results from companies including Unilever and Michelin & Cie. outweighed data showing manufacturing in the euro area unexpectedly returned to growth. U.S. index futures advanced, while Asian shares fell.

Unilever lost 2.1 percent after posting slower-than-expected sales growth. Michelin fell 5.2 percent after reporting a larger-than-expected quarterly-sales drop and saying it will sell fewer products this year than previously estimated. Tesco Plc slid 5.2 percent after saying it found that accounting irregularities have gone on longer than initially reported. Nokia Oyj rose 4 percent as quarterly profit beat estimates.

The Stoxx Europe 600 Index retreated 0.3 percent to 325.03 at 11:34 a.m. in London, after earlier gaining as much as 0.5 percent and dropping as much as 1.1 percent. European equities have led a rout that erased as much as $5.5 trillion from the value of shares worldwide amid speculation that the European Central Bank’s stimulus measures will not be enough to spur growth. Standard & Poor’s 500 Index futures added 0.4 percent today, while the MSCI Asia Pacific Index dropped 0.4 percent.

“We’re actually pretty positive on the global-growth picture,” said William Hobbs, the London-based head of equity strategy at Barclays Plc’s wealth-management unit. “The U.S. is capable of growing at a faster pace and eventually the rest of the world will feel the warmth. Europe will just continue to make slow progress and nothing has massively changed. We might still need more evidence to convince the doubters.”

[xchrom]

22. Shale Boom’s Allure to Wall Street Tested by Bear Market

http://www.bloomberg.com/news/2014-10-23/shale-boom-s-allure-to-wall-street-tested-by-bear-market.html

Falling oil prices are testing investors’ commitment to the Wall Street-funded shale boom.

Energy stocks led the plunge earlier this month in U.S. equities and the cost of borrowing rose. The Energy Select Sector Index is down 14 percent since the end of August, compared with 3.8 percent for the Standard & Poor’s 500 Index. The yield for 190 bonds issued by U.S. shale companies increased by an average of 1.16 percentage points.

Investors’ sentiment toward the oil and gas industry has “certainly changed in the last 30 days,” said Ron Ormand, managing director of investment banking for New York-based MLV & Co. with more than 30 years of experience in energy. “I don’t think the boom is over but I do think we’re in a period now where people are going to start evaluating their budgets.”

What distinguishes this U.S. energy boom from the way the industry operated in the past is the involvement of outside investors. In 1994, drillers funded 42 percent of their own capital spending, according to an Independent Petroleum Association of America member survey. Today, shale companies are outspending their cash flow by 50 percent thanks to borrowed money, according to the IPAA. They’re selling more than twice as much equity to the public as they did 10 years ago, according to Tudor Pickering Holt & Co., a Houston-based investment bank.

[xchrom]

23. Capital Spending Seen Rising Outside of Energy: Chart of the Day

http://www.bloomberg.com/news/2014-10-23/capital-spending-seen-rising-outside-of-energy-chart-of-the-day.html




Capital spending is poised to rise for most industries even as lower oil prices limit investments by energy producers, according to Tobias Levkovich, Citigroup Inc.’s chief U.S. equity strategist.

The CHART OF THE DAY shows annual spending figures that Levkovich presented in an Oct. 17 report. They are derived from data for more than 670 non-financial companies that Citigroup’s analysts cover.

Spending by companies outside of energy, which the chart displays, is headed for increases of 5.1 percent this year and 3.2 percent next year. The latter contrasts with the projected drop of 4.2 percent for the oil and gas industries, which will limit total growth to 0.1 percent.

“The promise of capital spending is still in place,” Levkovich wrote. Corporate budgets “simply do not imply any major change or worsening of activity,” the New York-based strategist added.

[xchrom]

24. Inflation Shy of Goal Means Fed Can Keep Rates Low: Economy

http://www.bloomberg.com/news/2014-10-22/consumer-prices-in-u-s-rise-0-1-as-inflation-remains-muted.html

The cost of living in the U.S. barely rose in September, restrained by decelerating prices for a broad array of goods and services that signal the Federal Reserve can keep interest rates low well into 2015.

The consumer-price index climbed 0.1 percent after decreasing 0.2 percent in August, a Labor Department report showed today in Washington. Over the past year, costs increased 1.7 percent, the same as in the 12 months through August.

While plunging fuel costs are one reason for the restraint in pricing, clothing retailers, medical-care providers and airlines are also among those keeping a lid on charges. With inflation falling short of the Fed’s goal, policy makers need not rush to raise rates even as the world’s largest economy shows no sign of succumbing to a slowdown in global growth.

“Inflation remains very tame,” said Jim O’Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York, and the top forecaster of the consumer price index over the past two years, according to data compiled by Bloomberg. “For now, it gives the Fed the green light to keeping monetary policy accommodative. Over the long haul, they’d prefer to see inflation go up a little.”

[xchrom]

25. McDonald’s May Sell More Organic Foods to Boost Sales

http://www.bloomberg.com/news/2014-10-21/mcdonald-s-may-sell-more-organic-foods.html


McDonald’s Corp. (MCD), which yesterday posted its fourth straight quarter of falling U.S. same-store sales, may look to sell more organic food to stem the loss of customers to chains known for better-quality fare.

“You’ll see us in some categories looking to different products, possibly organics,” Chief Executive Officer Don Thompson said on a conference call. “We actually are doing it in certain markets.”

The world’s largest restaurant chain already uses organic semi-skimmed milk in McCafe coffees, porridge and Happy Meals in some restaurants in the U.K., said Becca Hary, a company spokeswoman. Organic milk also is sold in Germany, while organic fruit juice is available in Germany and France, she said.

“We have the ability to cater our menu to local and regional tastes and preferences,” Hary said.

[Crewleader]

27. Today's Cartoon

[DemReadingDU]

28. lol!

[mahatmakanejeeves]

29. ETA News Release: Unemployment Insurance Weekly Claims Report (10/23/2014)

Source: Department of Labor, Employment and Training Administration

Read More: http://www.dol.gov/opa/media/press/eta/eta20141967.pdf

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS SEASONALLY ADJUSTED DATA

In the week ending October 18, the advance figure for seasonally adjusted initial claims was 283,000, an increase of 17,000 from the previous week's revised level. The previous week's level was revised up by 2,000 from 264,000 to 266,000. The 4-week moving average was 281,000, a decrease of 3,000 from the previous week's revised average. This is the lowest level for this average since May 6, 2000 when it was 279,250. The previous week's average was revised up by 500 from 283,500 to 284,000.

There were no special factors impacting this week's initial claims.

The advance seasonally adjusted insured unemployment rate was 1.8 percent for the week ending October 11, unchanged from the previous week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending October 11 was 2,351,000, a decrease of 38,000 from the previous week's unrevised level of 2,389,000. This is the lowest level for insured unemployment since December 23, 2000 when it was 2,340,000. The 4-week moving average was 2,381,000, a decrease of 22,750 from the previous week's unrevised average of 2,403,750. This is the lowest level for this average since May 20, 2006 when it was 2,377,750.

UNADJUSTED DATA

....
The total number of people claiming benefits in all programs for the week ending October 4 was 2,073,549, a decrease of 15,056 from the previous week. There were 3,855,710 persons claiming benefits in all programs in the comparable week in 2013.

[Demeter]

31. I delivered my last paper this morning, and it felt good.

A possible candidate to take over the route rode with me, but decided (I think) that it was ridiculous to expect someone who lives 50 miles away to come to Ann Arbor and try to do the route without any staging area for bagging, in the face of winter. They cut the window between press and on porch time down so there's no way driving home to bag and then coming back is feasible (or economical, making 100 mile trips at $2.99/gallon).

I don't know what they are thinking. But that is why I wanted out in the first place--working with morons is extremely hard work. And fruitless.


This weekend is looking for a theme (I have some lame ideas, but nothing truly inspiring).

Post your great suggestions below!

[Crewleader]

32. Whatever theme you come up wiith is top notch!

Demeter, your weekend threads are just the best!