STOCK MARKET WATCH -- 2 December 2014

[Tansy_Gold]

[font size=3]STOCK MARKET WATCH, Tuesday, 2 December 2014[font color=black][/font]

SMW for 1 December 2014

AT THE CLOSING BELL ON 1 December 2014
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Dow Jones 17,776.80 -51.44 (-0.29%)
S&P 500 2,053.44 -14.12 (-0.68%)
Nasdaq 4,727.35 -64.28 (-1.34%)


[font color=red]10 Year 2.23% +0.07 (3.24%)
30 Year 2.96% +0.07 (2.42%) [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. Stop what you are doing....and go see citizenfour!

This real-time documentary by Linda Poitras brings you there as Edward Snowden undertakes his perilous mission to bring the Truth to We the People, and We the World.

It was gripping. I'm glad I skived off work.

The story is told in chronological, unrelenting order, and we meet the principal players. There's even a surprise ending.

I found that while I've been following the story as best I can, there's so much more to it.

This is your chance to get a complete version!

[Crewleader]

2. Holidays and Homeless

[xchrom]

3. Plunging Energy Prices And The Ukraine Crisis Killed Russia's $40 Billion Gas Pipeline Project

http://www.businessinsider.com/r-russias-south-stream-pipeline-falls-victim-to-ukraine-crisis-energy-rout-2014-12

SINGAPORE/LONDON (Reuters) - Russia's $40 billion South Stream gas pipeline project has fallen victim to plunging energy prices, stalling European demand and the political standoff between the European Union and Moscow over the crisis in Ukraine.

Russia on Monday said it had scrapped the project to supply gas to Europe without crossing Ukraine, citing EU objections, and named Turkey as its preferred partner.

South Stream planned to supply 63 billion cubic meters (bcm) of natural gas a year, equivalent to more than 10 percent of European demand, from Russia via the Black Sea into the EU toward the end of this decade, cementing Russia's role as the region's dominant supplier.

But it came under increasing fire this year. The crisis over Ukraine led to Brussels freezing its approval process, and the pipeline also hit trouble over weak European gas demand and energy prices, undermining its economics.



Read more: http://www.businessinsider.com/r-russias-south-stream-pipeline-falls-victim-to-ukraine-crisis-energy-rout-2014-12#ixzz3KjuZQSlU

[xchrom]

4. Islamic Banks Are Growing Fast But May Still Be Missing Out

http://www.businessinsider.com/r-islamic-banks-grow-but-may-miss-out-on-global-footprint-study-2014-12

(Reuters) - Islamic banking is growing faster than its conventional counterpart but is focused in a few core markets and risks missing an opportunity to build a global footprint, the EY consultancy said in a report on Tuesday.

Islamic banks across six core markets of Qatar, Indonesia, Saudi Arabia, Malaysia, the United Arab Emirates and Turkey held $625 billion at the end of 2013 or 80 percent of the global Islamic finance market, the report said. The figure was 95 percent when Bahrain, Pakistan and Kuwait are included. Estimates exclude Iran which has a distinct model for Islamic finance, which follows religious guidelines such as a ban on interest and on pure monetary speculation.

The report estimated the combined Islamic banking assets in the six core markets will reach $1.8 trillion by 2019, buoyed by growth which has been 1.9 times faster than that of conventional banks over the 2009-2013 period.

The six core markets now comprise 82 percent of the global industry, and this could rise even further, said Ashar Nazim, a partner at EY's global Islamic banking center.



Read more: http://www.businessinsider.com/r-islamic-banks-grow-but-may-miss-out-on-global-footprint-study-2014-12#ixzz3Kjv6oML1

[xchrom]

5. Oil Is Slipping Again After Yesterday's Rally

http://www.businessinsider.com/oil-is-struggling-2014-12

Oil prices are dipping a little after a significant rally during US trading hours yesterday.

Brent crude rose by more than $1 on early Tuesday morning, peaking at $72.96 at 9 a.m. GMT.

It has slowed down since, and it is currently trading at $72.15 (-0.54%). Here it is a little earlier



This morning WTI is trading at $68.31, down 1% from its daily peak at $69, but still a good $5 higher than the depth sit was trading early Monday.



Read more: http://www.businessinsider.com/oil-is-struggling-2014-12#ixzz3Kjvvitjk

Read more: http://www.businessinsider.com/oil-is-struggling-2014-12#ixzz3KjvjXDl3

[xchrom]

6. Eurozone Producer Prices Fall At Sharpest Rate In A Year

http://www.businessinsider.com/r-euro-zone-producer-prices-fall-at-sharpest-rate-in-a-year-2014-12

BRUSSELS (Reuters) - Euro zone factory prices fell at their sharpest monthly rate in a year in October as the cost of energy and non-durable goods such as food dropped sharply, putting pressure on the European Central Bank to do more to lift the bloc's depressed economy.

Prices at factory gates in the 18 countries sharing the single currency declined by 0.4 cent from September, the European Union's statistics office Eurostat said on Tuesday.

Economists polled by Reuters had forecast a 0.3 percent drop.

The figure was pulled down most by a 0.9 percent drop in energy costs and by a 0.6 percent decline of non-durable goods prices, depressed by the slide in oil and commodity prices.



Read more: http://www.businessinsider.com/r-euro-zone-producer-prices-fall-at-sharpest-rate-in-a-year-2014-12#ixzz3KjwSs28y

[xchrom]

7. REPORT: China Is Cracking Down On Tax Avoidance By Foreign Companies

http://www.businessinsider.com/r-china-to-crack-down-on-tax-avoidance-by-foreign-firms-xinhua-2014-12

SHANGHAI (Reuters) - China will toughen its stance on tax avoidance by foreign firms to prevent tax payments being directed overseas, the official Xinhua news agency has said, after Beijing levied $140 million in back taxes from U.S. firm Microsoft Corp <msft.o> last week.

Beijing will closely monitor the profit levels of foreign firms operating in China to ensure companies do not shift profits to other regions where taxes are lower, a practice known as "base erosion and profit shifting" (BEPS), the Xinhua report late on Monday said.

China is cracking down on business practices by overseas firms in China, with a series of probes by anti-trust regulators prompting business lobbies to say multinational firms were being singled out by Beijing.

Xinhua reported last week that a U.S. company whose name starts with "M" must pay the Chinese government 840 million yuan ($137 million) in back taxes and interest, as well as more than 100 million yuan in additional taxes a year in the future.



Read more: http://www.businessinsider.com/r-china-to-crack-down-on-tax-avoidance-by-foreign-firms-xinhua-2014-12#ixzz3Kjx0DExn

[xchrom]

8. European Stocks Are Climbing And The DAX Just Hit 10,000

http://www.businessinsider.com/market-update-dec-2-2014-2014-12

Here's the scorecard:

France's CAC 40: +0.75%

Germany's DAX: +0.65%

UK's FTSE 100: +0.66%

Spain's IBEX: +0.33%

Italy's FTSE MIB: +0.62%

Asian markets closed up too. Japan's Nikkei finished 0.42% and Hong Kong's Hang Seng climbed 1.23% from Monday's drop.

US futures are up too: the S&P is 4.25 points higher and the Dow is up 42 points ahead of Tuesday's opening.

It's a light day for data but several senior Federal Reserve figures are giving speeches later: watch out for news lines from chair Janet Yellen, Stanley Fischer and Lael Brainard, which could give some indication as to the Fed's current stance.



Read more: http://www.businessinsider.com/market-update-dec-2-2014-2014-12#ixzz3KjxQZt8y

[xchrom]

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

http://www.businessinsider.com/10-most-important-things-in-the-world-dec-2-2014-12

1. Russia has dropped its $40 billion South Stream gas pipeline, which would have run under the Black Sea to central Europe, due to plummeting energy prices.

2. The three original founders of Hong Kong's pro-democracy demonstrations announced on Tuesday they would surrender by turning themselves into the police.

3. Islamist terrorist group Boko Haram attacked two state capitals in northern Nigeria on Monday, including a suicide bombing at a crowded market.

4. The World Bank said Tuesday that the fallout from the the Ebola virus will send Guinea and Sierra Leone into recession next year.

5. Oil company TransCanada has halted the construction of a terminal on a major pipeline along the St. Lawrence River after identifying a nearby population of endangered beluga whales.



Read more: http://www.businessinsider.com/10-most-important-things-in-the-world-dec-2-2014-12#ixzz3Kjxpp3ib

[xchrom]

10. S&P Doubts Shinzo Abe Can Repair Japan's Tattered Finances

http://www.businessinsider.com/r-sp-doubts-japan-government-will-have-detailed-fiscal-consolidation-plan-2014-12

TOKYO (Reuters) - Standard & Poor's cast doubt on Japan Prime Minister Shinzo Abe's ability to repair the country's tattered finances, a day after Moody's tarnished the government's economic record less than two weeks away from a major election.

Abe's decision to delay a sales tax increase by 18 months may help the economy in the short term, but there is still no guarantee taxes will rise because the political dynamic could change after the election, Takahira Ogawa, director of sovereign ratings at S&P, told Reuters.

The growing reservations about Japan come at an awkward time for Abe as he has called an election on Dec. 14 that has become a vote on whether he has done enough to fundamentally improve the prospects for growth.

"I might be wrong, but judging by history I'm not optimistic about getting a detailed fiscal plan," Ogawa said.



Read more: http://www.businessinsider.com/r-sp-doubts-japan-government-will-have-detailed-fiscal-consolidation-plan-2014-12#ixzz3Kk0QKJWx

[xchrom]

11. STOCK MARKETS KEPT IN CHECK BY DOUBTS OVER GROWTH

http://hosted.ap.org/dynamic/stories/F/FINANCIAL_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-12-02-03-59-10

KEEPING SCORE: In early European trading, France's CAC 40 was up 0.6 percent at 4,402.22 and Germany's DAX gained 0.2 percent to 9,983.22. Britain's FTSE 100 jumped 1 percent to 6,723.19. Wall Street was set to recover some of the ground it lost Monday. Dow futures were up 0.4 percent at 17,821 and S&P 500 futures gained 0.3 percent to 2,057.20.

GLOBAL GLOOM: Markets were absorbing a number of unsettling trends including further weakness in China's economy, weak holiday retail sales in the U.S. and the slump in oil prices. Faltering recoveries in Europe and Japan add to the picture of an anemic global economy. Meanwhile, the drop in oil prices from above $100 a barrel to below $70 is putting stress on oil-exporting nations, Russia particularly, which is already under strain from Western sanctions over its backing of the rebellion in eastern Ukraine.

THE QUOTE: "There continue to be questions around whether this is merely a dead cat bounce. Given the wild swings we saw yesterday, this could certainly be the case and I don't think anyone would be surprised to see these gains reverse again tomorrow," said IG strategist Stan Shamu. "The reality is global growth concerns are a real threat and unless central banks step up easing efforts, things are likely to get worse before getting better."

ASIA'S DAY: Asian stocks started out in negative territory but many markets reversed their losses. Japan's Nikkei 225 stock average closed up 0.4 percent at 17,663.22 and Hong Kong's Hang Seng added 1.2 percent to 23,654.30. Seoul's Kospi was little changed at 1,965.83 Australia's S&P/ASX 200 rose 1.4 percent to 5,281.30 as metal prices rose off recent lows. Markets in Singapore, the Philippines and Indonesia were higher while Thailand and India fell.

[xchrom]

12. RUSSIA WARNS OF RECESSION NEXT YEAR

http://hosted.ap.org/dynamic/stories/E/EU_RUSSIA_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-12-02-06-06-18

MOSCOW (AP) -- The Russian government has for the first time acknowledged that the country will fall into recession next year, battered by the combination of Western sanctions and a plunge in the price of its oil exports.

The economic development ministry on Tuesday revised its GDP forecast for 2015 from growth of 1.2 percent to a drop of 0.8 percent. Disposable income is expected to decline by 2.8 percent against the previously expected 0.4 percent growth.

Russia's economy has been damaged by low oil prices, a key export and the backbone of the state budget, as well as Western sanctions over its role in eastern Ukraine. The sanctions are hurting Russian banks and investment sentiment is down. The national currency, the ruble, has dropped by more than 40 percent this year, raising concerns of a spike in inflation that can hurt spending.

The release of the forecast on Tuesday afternoon reversed a modest rally in the Russian market, bringing the ruble 2 percent lower against the dollar, to 52.30 per dollar.

[xchrom]

13. FRENCH GOVT CRITICIZES COMPANIES FOR NOT HIRING

http://hosted.ap.org/dynamic/stories/E/EU_FRANCE_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-12-02-06-59-47

PARIS (AP) -- France's Socialist government is criticizing companies for not hiring despite major tax cuts designed to encourage job creation.

Economy Minister Emmanuel Macron said Tuesday that a government plan dubbed a "pact of responsibility" has been a "failure." The pact announced by President Francois Hollande in January aims to ease payroll taxes by up to 40 billion euros ($50 billion) by 2017. In exchange, companies were expected to hire.

Macron said on Radio Classique that "the Parliament has voted the tax cuts," and asked employers to start negotiations with unions especially on hiring and investment in order to "get results."

Business owners argue the government's efforts don't go far enough to reduce labor costs. Thousands of business owners protested Monday in the streets of Paris and Toulouse against taxes and regulations.

[xchrom]

14. TURKEY, RUSSIA LOOK TO SHAKE UP GAS MARKET

http://hosted.ap.org/dynamic/stories/E/EU_EUROPE_RUSSIA_PIPELINE?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-12-02-06-57-17

ANKARA, Turkey (AP) -- Turkey and Russia are looking to shake up the energy market in southeastern Europe, after Moscow scrapped a multibillion dollar pipeline project that was to cross the region and instead sought to create a link to Turkey.

Spiraling tensions between Europe and Russia were behind Moscow's decision to scrap the South Stream pipeline, which would have traveled through many Balkan states. Countries in the region on Tuesday were counting the political and financial cost of the shift.

Turkey stands to benefit from the prospect of becoming a major transit country for Russian gas. Turkish Energy Minister Taner Yildiz said Tuesday his government will study the Russian proposal.

Yildiz said the proposal would boost Turkish aims of becoming a world energy hub but said it was too early to "pronounce a final word."

[xchrom]

15. Draghi Powerless on ECB Path Toward QE Without Reforms

http://www.bloomberg.com/news/2014-12-02/draghi-treads-path-of-ecb-powerlessness-toward-qe-without-reform.html

Looking out from the top of the European Central Bank’s new tower in Frankfurt, it’s easy to find dark clouds on the horizon.

The view for policy makers is of a euro-zone populace so weary of years of economic turmoil that it’s increasingly electing politicians who say no to pan-European cooperation, and spurn reforms that the ECB says are vital to revive the economy. Trapped by their mandate to prevent deflation, officials fret they might soon be forced to roll out quantitative easing that can never succeed by itself.

In speech after speech, central bankers led by President Mario Draghi have urged governments from Paris to Rome to complement ECB stimulus by overhauling economies and bolstering investment. The response -- national foot-dragging on reform and an infrastructure plan from European Commission President Jean-Claude Juncker that won’t deliver spending until well into next year -- has disappointed.

“The ECB might just be powerless,” said Daniel Gros, Director at the Centre for European Policy Studies in Brussels. “There are domestic political constraints about which, at the EU level, they can do nothing. The crowd which is yelling for stimulus is basically southern Europe. They say the ECB should do its duty, whatever the governments do.”

[xchrom]

16. European Banks Seen Afflicted by $82 Billion Capital Gap

http://www.bloomberg.com/news/2014-12-02/european-banks-seen-afflicted-by-82-billion-capital-gap.html

Europe’s latest bank stress test was flawed, and dozens of the region’s lenders, including Deutsche Bank AG (DBK) and BNP Paribas SA, aren’t sufficiently capitalized to improve the economy’s anemic growth or withstand a repeat of the 2008 financial crisis.

Those are the conclusions of analysts at Keefe, Bruyette & Woods Inc. and the Danish Institute for International Studies who looked at what would have happened if the European Central Bank had applied a leverage minimum that will be introduced next year. A third study by the Brussels-based Centre for European Policy Studies showed Deutsche Bank and BNP Paribas above the cutoff, while 28 other banks that passed the stress test failed.

The new standard requires banks around the world to have capital equal to 3 percent of total assets, complementing a system that weights them for risk. If the ECB had used that yardstick and demanded the highest quality capital, 12 big European banks that passed the stress test would need to raise an additional 66 billion euros ($82 billion), according to Jakob Vestergaard, a senior researcher at the Danish institute.

“Relying on risk-based measures only isn’t enough because it’s always what we thought wasn’t risky that ends up blowing up during a crisis,” said Vestergaard, who examined data collected by the ECB at the request of Bloomberg News and has published papers on leverage. “The ECB wanted to appear tough, but it still couldn’t show big German, French banks as undercapitalized for political reasons.”

[xchrom]

17. Hedge Funds Shut as Managers Struggle in Year of Two Percent Returns

http://www.bloomberg.com/news/2014-12-01/hedge-funds-see-worst-year-for-closures-since-2009.html

Hedge funds are shutting at a rate not seen since the financial crisis, as many managers post disappointing returns and an elite group of firms dominate money raising.

The $37 billion Brevan Howard Asset Management LLP is the latest firm to close a fund. Last week it pulled the plug on its $630 million commodity fund managed by Stephane Nicolas after it had tumbled 4.3 percent this year through the end of October, according to a person with knowledge of the firm.

In the first half of the year, 461 funds closed, Chicago-based Hedge Fund Research Inc. said. If that pace continues, it will be the worst year for closures since 2009, when there were 1,023 liquidations.

“Most hedge funds have not performed extraordinarily well,” said Stewart Massey, chief investment officer at Massey Quick & Co. in Morristown, New Jersey, which invests in the private partnerships. He expects that redemptions will hit small-and medium-sized firms this year, reducing assets to a level where “they will have to make a decision whether to carry on or not.”

[xchrom]

18. Bank of Tokyo-Mitsubishi Among Japan Banks Cut by Moody’s

http://www.bloomberg.com/news/2014-12-02/bank-of-tokyo-mitsubishi-among-japan-banks-cut-by-moody-s.html


Mitsubishi UFJ Financial Group Inc. (8306) units were among five Japanese lenders downgraded by Moody’s Investors Service today after it cut the nation’s credit rating.

Bank of Tokyo-Mitsubishi UFJ Ltd. and Mitsubishi UFJ Trust and Banking Corp., part of Japan’s biggest banking group, were lowered one level to A1 with a stable outlook, Moody’s said in a statement. Sumitomo Mitsui Banking Corp. (8316), Shizuoka Bank Ltd. and Chugoku Bank Ltd. also had their long-term debt ratings cut.

Moody’s yesterday lowered Japan’s rating to A1, the fifth-highest grade, citing uncertainty over whether Prime Minister Shinzo Abe’s administration will achieve its deficit-reduction goals and succeed in boosting growth. Investors will be watching whether Standard & Poor’s follows suit, said credit analyst Yusuke Ueda.

“There may be risk that transaction terms in the derivative markets will deteriorate and overseas funding costs may rise for the lenders” if S&P acts, Ueda, who works at Bank of America Corp. in Tokyo, said by phone today.

[xchrom]

19. EON Split to Fortify German Green Energy Transformation

http://www.bloomberg.com/news/2014-12-01/eon-split-to-fortify-german-green-energy-transformation.html


EON SE’s plan to spin off its fossil-fuel plants marks a watershed moment in Germany’s renewables effort that will likely bolster the country’s already leading position in green energy.

EON’s announcement is the culmination of a push to wind, solar and other alternative energy forms that the German government began 14 years ago with subsidies to reduce the country’s reliance on fossil fuels for power production. That plan gained added momentum in 2011 with a decision to close the country’s nuclear reactors following the Fukushima accident.

Chancellor Angela Merkel’s bold move is already beginning to pay off, with Europe’s largest economy for the first time getting more electricity from renewables this year than any other source. About a quarter of Germany’s power now comes from green energy, compared with 6.2 percent in the U.S. and 4.8 percent in France.

“We are in the midst of a giant transformation process of our energy system,” Deputy Environment Minister Jochen Flasbarth told reporters yesterday in Berlin. “Renewables are the increasingly dominant factor in the German energy mix. EON’s decision is a piece of the puzzle.”

[xchrom]

20. Venice Glassmakers’ Ancient Art Shattered by Slump, Taxes

http://www.bloomberg.com/news/2014-12-01/venice-glassmakers-ancient-art-shattered-by-weak-demand-taxes.html


Daniele Mazzuccato’s life has become as fragile as the famed Murano chandeliers he makes.

The glassmaker has sold his apartment to keep his factory going and now sleeps in the back room of his foundry on the tiny island of Murano, a mile north of the Italian canal city of Venice. The 47-year-old, who comes from a family of glassmakers, says lack of credit, an economic slump and crisis-driven tax increases are killing the island’s centuries-old traditions.

“We are just waiting to die,” Mazzuccato, whose father was a glassmaker and whose mother came from a long line of Murano artisans, said as he chain-smoked in his office that was strewn with invoices and glass ashtrays.

Murano craftsmanship has been passed on from generation to generation. So renowned were the island’s master glassmakers that in the 17th century Louis XIV brought some of them to France to steal their secrets and help adorn the “Hall of Mirrors” at the Versailles Palace. Murano chandeliers hang from ceilings of the Pera Palace Hotel in Istanbul, which has played host to the likes of Ernest Hemingway and Alfred Hitchcock and was the last stop of the legendary Orient Express.

[xchrom]

21. Billionaire Shale Pioneer Sees Drilling Slowdown on Oil Price Drop

http://www.bloomberg.com/news/2014-12-01/billionaire-shale-pioneer-says-drilling-will-slow.html

Billionaire wildcatter Harold Hamm, a founding father of the U.S. shale boom whose personal fortune has fallen by more than half in the past three months, said U.S. drilling will slow as producers cut back amid falling oil prices.

Declining activity from Texas to North Dakota won’t be as harmful to the industry as some have feared, the chairman and chief executive officer of Continental Resources Inc. said. OPEC’s refusal to curb output last week bodes well for U.S. producers that can outlast countries in the cartel, which depend on higher oil prices.

“Will this industry slow down? Certainly,” Hamm said yesterday in a telephone interview. “Nobody’s going to go out there and drill areas, exploration areas and other areas, at a loss. They’ll pull back and won’t drill it until the price recovers. That’s the way it ought to be.”

Investors have been spooked as oil has declined to a five-year low. The downturn comes after prices above $100 a barrel sparked a boom in output from U.S. shale formations that helped create a glut of supply.

[xchrom]

22. Irish Flock to Tax-the-Rich Protest Party Amid Crisis

http://www.bloomberg.com/news/2014-12-01/irish-flock-to-party-with-ira-past-as-crisis-pain-lingers.html


Sitting in a community center in Tallaght, a sprawling, working-class suburb at the foot of Dublin’s mountains, Debbie Byrne sees little sign she’s living in the euro region’s fastest-growing economy.

The government is “trying to say things are on the climb,” said Byrne, 38, a homemaker who helps people who drop in grapple with drug addiction and a jobless rate soaring above the national average. “Show me where things are on the climb in these areas. There are people going hungry.”

Almost a year since Ireland exited its international bailout program, there’s growing discontent among people who say they feel no connection with the economic numbers and bond prices telling them the worst is over. The result is that the Irish are adding to the phalanx of Europeans who are decamping to political parties previously on the electoral fringes.

Disillusioned with the leaders she helped usher into power at Ireland’s 2011 election, Byrne counts herself among the new supporters of Sinn Fein, the party that for much of the 1980s and 1990s was the Irish Republican Army’s political wing fighting against British rule in Northern Ireland.

[Hotler]

23. Did you guys see this???

Lawrence Of Arabia - Archaeologist & Brit Nemesis Of The Ottoman Empire
http://www.democraticunderground.com/?com=view_post&forum=1017&pid=229576

[Hotler]

24. Todays toon......

Just watch, the PTB (shadow government) will install Christi in the White House. I hope not, but it would not surprise me.

[Demeter]

28. I doubt that

It would leave too obvious a mark.

More likely the least popular candidates: Hillary or Jeb. Not sure which would be worse, myself.

[Hotler]

31. Now that I think about it.....

it will be Hillary or Jeb.

[DemReadingDU]

25. NYSE Investor Credit and the Market Chart

Looks ominous

[DemReadingDU]

26. The Oil-Drenched Black Swan, Part 1

12/1/14 The Oil-Drenched Black Swan, Part 1
Charles Hugh Smith

The term Black Swan shows up in all sorts of discussions, but what does it actually mean? Though the term has roots stretching back to the 16th century, today it refers to author Nassim Taleb's meaning as defined in his books, Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets and The Black Swan: The Impact of the Highly Improbable:

"First, it is an outlier, as it lies outside the realm of regular expectations, because nothing in the past can convincingly point to its possibility. Second, it carries an extreme 'impact'. Third, in spite of its outlier status, human nature makes us concoct explanations for its occurrence after the fact, making it explainable and predictable."

Simply put, black swans are undirected and unpredicted. The Wikipedia entry lists three criteria based on Taleb's work:

1. The event is a surprise (to the observer).

2. The event has a major effect.

3. After the first recorded instance of the event, it is rationalized by hindsight, as if it could have been expected; that is, the relevant data were available but unaccounted for in risk mitigation programs.

It is my contention that the recent free-fall in the price of oil qualifies as a financial Black Swan. Let's go through the criteria:

more...
http://www.oftwominds.com/blogdec14/oil-black-swan12-14.html

[Demeter]

29. The only thing that's TRULY Highly Improbable Is a True Progressive, Rule of Law candidate running

(I wouldn't even dare to hope for winning!)

[DemReadingDU]

27. The Oil-Drenched Black Swan, Part 2: The Financialization of Oil

12/2/14 The Oil-Drenched Black Swan, Part 2: The Financialization of Oil
Charles Hugh Smith

The pundits crowing about the stimulus effect of lower oil prices on consumers are missing the real story, which is the financialization of oil. Financialization is another word that is often bandied about without the benefit of a definition.

Here is my definition:

Financialization is the mass commodification of debt and debt-based financial instruments collaterized by previously low-risk assets, a pyramiding of risk and speculative gains that is only possible in a massive expansion of low-cost credit and leverage.

That is a mouthful, so let's break it into bite-sized chunks.

Home mortgages are a good example of how financialization increases financial profits by jacking up risk and distributing it to suckers who don't recognize the potential for collapse and staggering losses.

In the good old days, home mortgages were safe and dull: banks and savings and loans issued the mortgages and kept the loans on their books, earning a stable return for the 30 years of the mortgage's term.

Then the financialization machine appeared on the horizon and revolutionized the home mortgage business to increase profits. The first step was to generate entire new families of mortgages with higher profit margins than conventional mortgages. These included no-down payment mortgages (liar loans), no-interest-for-the-first-few-years mortgages, adjustable-rate mortgages, home equity lines of credit, and so on.

This broadening of options and risks greatly expanded the pool of people who qualified for a mortgage. In the old days, only those with sterling credit qualified for a home mortgage. In the financialized realm, almost anyone with a pulse could qualify for one exotic mortgage or another.

The interest rate, risk and profit margins were all much higher for the originators. What's not to like? Well, the risk of default is a problem. Defaults trigger losses.

more...
http://www.oftwominds.com/blogdec14/financialized-oil12-14.html

[Tansy_Gold]

30. Not the 'toon I posted.

When SMW went up yesterday afternoon, THIS was the 'toon.