STOCK MARKET WATCH, Monday 23 January

[ozymandius]

Monday January 23, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 1092 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1859 DAYS
WHERE'S OSAMA BIN-LADEN? 1559 DAYS
DAYS SINCE ENRON COLLAPSE = 1520
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 3
Other Arrests of Execs = 54


U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON January 20, 2006

Dow... 10,667.39 -213.32 (-1.96%)
Nasdaq... 2,247.70 -54.11 (-2.35%)
S&P 500... 1,261.49 -23.55 (-1.83%)
30-Year Bond 4.53% -0.02 (-0.40%)
10-Yr Bond... 4.36% -0.02 (-0.41%)
Gold future... 554.00 -5.00 (-0.90%)






GOLD, EURO, YEN, Dollars and Loonie


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Tim W. Wood

THE DOW REPORT
The Good News and the Bad

The good news continues to be that the Industrials remain in gear with the Transports on a Secondary level. This occurred earlier this month when the Industrials bettered their March 2005 Secondary high point, as is represented by the blue trend lines on the chart below. It is bad news that the Industrials are currently negative for the month in relation to the January Barometer. It is bad that the Industrials have failed to hold above their breakout point, which again is represented by the blue trend line in the lower window of the chart below. Violation of the short term lows made in December will be bad. According to Dow theory the secondary trend remains bullish, which obviously is good news for the market. From a cyclical perspective, this is now changing.

-cut-

The bottom line is that the Secondary Trend does in fact remain bullish. But, the erosion that is beginning to appear in the different Transportation sectors is not good news for the overall Transportation average or the Industrials. Add to that the fact that we have the Retailers also warning, intermediate term cycle tops coming due, a 4-year cycle top due and the Primary Dow theory non-confirmation still at large, all may be bullish on a Secondary level, but the underlying technical picture isn’t quite so rosy.

more...

http://www.financialsense.com/Market/wrapup.htm

[ozymandius]

2. One report today

Jan 23 10:00 AM Leading Indicators Dec
Briefing Forecast 0.2%
Market Expects 0.2%
Prior 0.5%

[UpInArms]

40. U.S. Dec. leading economic indicators up 0.1%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38740.4172901505-858155493&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- The U.S. index of leading economic indicators rose 0.1% in December, the Conference Board said Monday. This is the third straight monthly gain. The rise was slightly below expectations. The consensus forecast of Wall Street economists had expected a 0.2% rise. The index rose a revised 0.9% in November, up sharply from the initial estimate of a 0.5% gain. The coincident index rose 0.2%, while the lagging index rose 0.1%.

10:00am 01/23/06 U.S. NOV. LEADING INDEX REVISED TO UP 0.9% VS RISE 0.5% PREV

10:00am 01/23/06 SIX OUT OF 10 U.S. LEADING INDICATORS RISE IN DEC.

10:00am 01/23/06 U.S. DEC. LEADING ECONOMIC INDICATORS UP 0.1% VS 0.2% EXPECT

[ozymandius]

3. Oil flat after topping $69, supply fears multiply

SINGAPORE (Reuters) - Oil was steady on Monday after briefly topping $69 for the first time since Hurricane Katrina hit the U.S. Gulf Coast, as traders added Russia's natural gas exports to a growing list of global supply anxieties.

An intensifying militants' campaign against Nigeria's foreign oil companies and rising tensions over Iran's nuclear program have helped push oil prices up more than $10 since late December, drawing within sight of a record $70.85 a barrel hit on August 30.

U.S. light sweet crude for March delivery was down 18 cents at $68.30 a barrel by 0655 GMT, after having briefly touched $69.20, its highest since September 2, the day the International Energy Agency (IEA) agreed to release emergency government oil stockpiles to offset the outages caused by Hurricane Katrina.

-cut-

Gas supplies from Russia, disrupted at the start of the year by a pricing dispute with Ukraine, returned to the spotlight at the weekend after explosions knocked out the main pipeline to Georgia. Exports to Europe were already running below normal due to bitterly cold conditions in Russia.

more...

[ozymandius]

26. Countdown to 100$ oil (21bis) - long term vs short term worries

Ozy: This diary presents new data from credible sources. It also emphasizes the fact that oil/gasoline prices have become unfettered to the laws of supply and demand.

by Jerome a Paris

This is an updated version of a diary front paged yesterday on the European Tribune (Countdown to 100$ oil (21) - 8-page extravaganza in the Independent: 'we're doomed'). Given the most recent news on the oil markets (restatement of reserves in Kuwait, unrest in Nigeria, tensions over Iran), it is not surprising that prices are coming, again, very close to their record highs (in fact, they are higher than at any time other than in the immediate aftermath of Katrina), but the article discussed below makes a compelling case that, in fact, oil prices do not reflect the underlying worries about peak oil.

On Friday, the Independent published a very long and very detailed article on peak oil (original link now behind firewall; a copy can be found here) and its likely consequences which I can only encourage you to read in full - but be warned that you'll likely end up horribly depressed from that reading. It's damning, it's terrifying, and it's all true. It's written by Jeremy Leggett, an eminent geologist and one of the grand names of the ASPO (Association for the study of Peak Oil).

The killer paragraph:

The biggest oilfields in the world were discovered more than half a century ago, either side of the Second World War.

The peak of oil discovery was as long ago as 1965.

There were a few more big discovery years in the 1970s, but there have been none since then.

The last year in which we discovered more oil than we consumed was a quarter of a century ago.

Since then there has been an overall decline.

-cut-

For the time being, our governments, led by the Cheney clique, seem to be only focusing on grabbing whatever oil's still around, by means which are increasingly at odds with our supposed values, and without any care given to anything beyond the very near future. This is setting the stage for large scale confrontation with other nations like China, India and even Russia which face the exact same problem. Simply put, there soon won't be enough oil around for all.

more...

http://dailykos.com/storyonly/2006/1/23/7581/17655

[54anickel]

29. Iran Sanctions Could Drive Oil Past $100

http://biz.yahoo.com/ap/060122/iran_nuclear_the_oil_weapon.html?.v=4

Oil Could Top $100 a Barrel if U.N. Imposes Sanctions on Iran Over Nuclear Program

A surge in oil prices last week to almost $70 a barrel on concerns about the restart of Iran's nuclear program only hints at what may lie ahead.
Prices could soar past $100 a barrel, experts say, if the U.N. Security Council authorizes trade sanctions against the Middle Eastern nation, which the West accuses of trying to make nuclear bombs, and Iran curbs oil exports in retaliation. A sharp global economic slowdown could follow.

That's the dilemma the United States and European nations face as they decide whether to act. But Iran would also pay a hefty price if the petro-dollars that now represent 80 percent of export revenues are reduced, potentially stirring civil unrest in a nation with a 14 percent unemployment rate.

"They would shoot themselves in the foot," said Mustafa Alani, director of national security and terrorism studies at the Dubai-based Gulf Research Center. "It's one thing to test the market psychology, it's another to take the actual step and stop oil exports."

snip>

So who would be hurt more? The United States and other nations say it would be Tehran and argue against succumbing to economic blackmail in any case. "We cannot be intimidated by economic threats from their side," Sen. Trent Lott, R-Miss, told CNN.

snip>

Still, Alani of the Gulf Research Center questioned "whether the ordinary citizens will be willing to risk sanctions and endure a lot of suffering like the Iraqis suffered for 13 years" under U.N. sanctions.

Wonder if that's the fear our bucks are being used for as we fund the spread of "democracy" in Iran these days.

more...

[hatrack]

31. Since 1960, four and only four mbd fields have been discovered

That is, fields capable of producing a million barrels or more per day.

Da Qing - China, 1961
Samotlor - Russia, 1967
Prudhoe - Alaska, 1968
Cantarell - Mexico, 1976

Pemex announced late last summer that Cantarell, a field which produces about 60% of the country's oil, is now in decline, which means that all of these fields are now in decline. With all our advances in technology and all the high-end computer imaging int he world, we haven't found a field of comparable sice in 30 years.

[UpInArms]

27. Average gas price rises to $2.33 per gallon

http://www.chron.com/disp/story.mpl/business/3604331.html

NEW YORK -- The average retail price of a gallon of gasoline in the United States rose again over the past two weeks, continuing recent hikes that do not appear to be easing as crude oil prices increase and other market changes kick in, an industry analyst said today.

The national average for self-serve, regular unleaded gas was $2.3319 per gallon on Jan. 20, up 3.11 cents per gallon since the last nationwide Lundberg survey of gas stations on Jan. 6.

<snip>

A year ago, the Jan. 21, 2005, survey had the price for a gallon of self-serve, regular unleaded at $1.8747.

"Prices are much more likely to continue rising than to show no change or decline," Lundberg said. "Retail gasoline only having climbed 3 cents will take upward pressure from crude if crude does not fall."

Prices were already expected to rise over the next few months, Lundberg said, driven by required fuel reformulations, provisions in last year's energy bills taking effect, and the renewed rise of crude oil.

...more...

[UpInArms]

50. March Crude @ $68.15 bbl - Feb NatGas @ $8.335 mln btus

10:11am 01/23/06 MARCH CRUDE FALLS 33C TO $68.15/BRL IN EARLY NY TRADING

10:11am 01/23/06 FEB NATURAL GAS DROPS 10.2%, OR 94.5C, TO $8.335/MLN BTUS

[UpInArms]

68. Saudi King Signs Energy Deal With China

http://www.voanews.com/english/2006-01-23-voa22.cfm

China has signed an agreement with Saudi Arabia that may boost Beijing's purchases of Saudi oil. The deal came during a visit by Saudi King Abdullah to the Chinese capital.

King Abdullah's three-day visit is the first to China by a Saudi ruler since the two countries established diplomatic relations in 1990.

At the top of the agenda is, of course, oil. Saudi Arabia is one of the world's leading oil producers, and China, with its booming economy, has become one of the major purchasers.

The Saudi leader met with Chinese President Hu Jintao before signing a memorandum of understanding, which broadly outlines the two countries intentions to increase cooperation on energy. China, the world's number-two petroleum consumer, is eager to diversify its sources as its energy demands continue to soar.

James Brock, an independent consultant in Beijing who advises China's energy sector, says Saudi Arabia is an attractive resource, because it is more dependable than some of the other places where China has been looking for oil.

...more...

[EuroObserver]

74. Tectonic plates shifting... n/t

[54anickel]

81. Heh-heh...

Saudi Arabia is an attractive resource, because it is more dependable than some of the other places where China has been looking for oil.

Ya think? No sh*t, it would be pretty hard for Bushco to label his buddies in the "House of Saud" as dick-taters and tyrants in need of a regime change!

"They are not as volatile places as Nigeria or Russia, where the supply has been highly variable," said Brock. "They are not as subject, or at least so far they have not been subject, to political upheaval like Iran and Iraq. So, they are a good, dependable supplier, and China would like to have as many of those as they can."

snip>

Officials gave few details on the five agreements, saying only that they had to do with cooperation on oil, gas, and minerals; expanding trade, and avoiding dual taxation. There was also an agreement on a Saudi loan to fund a development project in China's largely Muslim region of Xinjiang.

The Saudi King's visit to Beijing follows a visit by Chinese Foreign Minister Li Zhaoxing last week to several West African nations, including oil-rich Nigeria. China announced this month it is bidding for a major stake in a Nigerian oil field.


Meanwhile....

Sao Tome, Nigeria postpone signing of oil deal until mid-February: official
http://english.people.com.cn/200601/23/eng20060123_237464.html

snip>

The postponement was to give time for Sao Tome officials to " harmonize positions on items to be discussed," said da Costa.

Production sharing contracts in the five blocks of the second licensing round in the JDZ, awarded last May, were originally due to have been signed at the end of 2005.

The process was held up as an official investigation into the awards to international oil firms uncovered "serious flaws" in the process and possible irregular payments by an oil company to Sao Tome officials.

Sao Tome and Principe President Fradique de Menezes said earlier this month that awards of the blocks in question as they stood were "harmful" to the archipelago's interests and the islands could lose 58 million U.S. dollars.

Test drilling in a JDZ oil block awarded in Sao Tome's first licensing round to Exxon Mobil and ChevronTexaco got underway this week, according to industry sources.

[mojavekid]

129. He, heh...She said "Dicktater"..heh,

Finally a SMW at my level!

Too funny 54! The news is coming fast and furious now. Glad to see you posting more once again.

-mojavekid

[54anickel]

134. Hi Mojavekid!

Good to see you too. :hi:

Ya, my contributions to the SMW have been thin compared to "the days of yore". Been busy on this end just trying to eek out a living and get some long procrastinated upon chores done around the homestead. Next on my ToDo list, new flooring and trim, followed by junkin' out the place and getting stuff sorted - you know, junk vs donations vs possible rummage sale (yuck-too much work) vs keep. My goal is to have the least amount of "stuff" in the keep pile this time around. How and why do we accumulate so much "stuff" in our lifetime? What damned purpose does it serve anyway? :shrug:

[UpInArms]

84. March Crude @ $68 bbl - Feb NatGas @ $8.50 mln btus

11:41am 01/23/06 MARCH CRUDE DOWN 48C AT $68/BRL IN NY

11:41am 01/23/06 FEB NATURAL GAS FALLS 78C, OR 8.4%, TO $8.50/MLN BTUS

11:41am 01/23/06 FEB HEATING OIL DOWN 1.2%; FEB UNLEADED GAS FALLS 1.5%

[UpInArms]

119. March Crude closes @ $68.10 bbl - Feb NatGas @ $8.574 mln btus

2:51pm 01/23/06 MARCH CRUDE CLOSES AT $68.10/BRL, DOWN 38C, OR 0.6%

2:51pm 01/23/06 FEB NATURAL GAS LOSES 7.6% TO END AT LOWEST SINCE EARLY JUNE

2:51pm 01/23/06 FEB NATURAL GAS DROPS 70.6C TO CLOSE AT $8.574/MLN BTUS

[54anickel]

131. Countdown To Energy War (Willie)

Not sure if this got posted last week. Sorry if it's a dupe

http://321energy.com/editorials/willie/willie011606.html

The conflict with Iran over their advancing nuclear program has moved gradually toward severe escalation. Iran's insistence to develop uranium enrichment facilities creates a supply fork. One tine extends legitimately to their electrical generating plants powered by enriched uranium. Another tine extends to a nuclear weapon arsenal, potentially. Russia has assured the West of its primary role to handle spent fuel, the key ingredient for weapon grade material. If the conflict ignites, expect a sudden $10 jump in the crude oil price, maybe even a $30 jump. Iran commands more control over the critical Strait of Hormutz than any other Persian Gulf nation, as Chinese Silkworm missiles are deployed in strategic emplacements. The energy war has numerous skirmishes afoot. However, Iran serves as the focal point for the detonation device on that war. Above board, the United Nations will be involved. Under the table, the Israeli military will be involved. Actual military action could close the Hormuz Straits controlling the Persian Gulf, where a large portion of world oil supply exits.

ALL THESE BATTLES ENSURE A PERMANENT ENERGY BULL MARKET, AS GEOPOLITICAL CONFLICT ENSURES A PERMANENT GOLD BULL MARKET.

And then there is Russia pulling rank over Ukraine, ending communist silly subsidies, which put Europe in the energy shadows. There is more to this story. And then there is Nigeria, whose offshore natural gasfields have been bid for by China and accepted. The West lost this one. And then there is Kazakhstan, which also has been secured by China. So much for the failed Unocal bid. The West might be in the process of losing the entire Caspian region. China has responded by focusing upon Central Asia, locking it down and thumbing their noses at North America. The lesson learned is that China has been given a message "Your money is no good, even though it is US$-based!" And then there is Iraq. The cost of the war might be far higher than originally believed, like near $2000 billion. One must count the lifetime health costs and expenses from prosthetic devices, as well as the lost economic costs from deaths. Worse, religious and sectarian battles might fracture the union, from either Shiite divisions with Sunnis, or else from Kurdish insistence on independence as seen with reluctance to share oil revenues.

The bidding wars have begun. The opening of the Iranian Oil Exchange has, in my view, prompted a massive propaganda campaign by the USGovt to muddy the waters. The US Military might not be capable to attack Iran directly, since Russia has promised military retaliation if foreign aggressors attack Iran. The more we see the United Nations dragged into the fray, the more you can be certain the USGovt feels powerless to face off Iran. The entire nuclear power, uranium enrichment, and proliferation arguments seem absurdly exaggerated. Putin has promised to handle all Iranian reprocessing of spent uranium, you know, the stuff that becomes weapons grade fuel. The timing next to the March launch of the Iranian Oil Exchange, with planned sales of crude oil and natural gas in euro denomination, seems suspicious. Sale of oil in euro currency represents such a grand threat to the Petro-Dollar superstructure system, that one must wonder if the financial challenge to the US$-centric world is construed as an assault worthy of military response. Count me as precisely one such observer. The importance of Saddam's sale of oil in euro terms is vastly under-appreciated, under-reported, and under-estimated.

THE GLOBAL PICTURE OF CONFLICT
A global energy war has begun, which will involve oil as its center and conflict over it both regionally and globally. The war will forge two-way and three-way partnerships. In the course of securing relationships built upon sales & supply contracts, large construction, production, and exploration contracts will guarantee and lock up the sale of output as a reward. Enormous capital requirements are outlined. Furthermore, risks abound, as some new prospective energy properties might contain large risks on cost assessment and time estimations. The extreme risk is for the USA to be locked out of all new marginal supply from East Asia to West Asia as far as to West Africa, and even to lose some of the current supply reaching the market. Over the course of the next two years, a global battle will surely erupt to secure the energy deposits, and to control shipping lanes. It will be a miracle if military conflict is averted in the battle for progressively more scarce energy supplies. In 2006, the severity and seriousness of the conflict will come front & center to the geopolitical stage.

more...

[ozymandius]

4. Nikkei falls 2 pct on US slide, dollar weakness

TOKYO (Reuters) - The Nikkei share average slid 2 percent on Monday as tech firms such as Advantest Corp. (6857.T) fell on a decline in the dollar and after U.S. shares were battered during Wall Street's biggest loss in nearly three years.

Internet stocks such as Softbank Corp. (9984.T) fell on the lingering effects of an investigation by prosecutors into Livedoor Co. (4753.T) on suspicion that the Internet portal gave incorrect information to investors.

Reports of the investigation emerged last week and triggered a heavy sell-off, forcing the Tokyo bourse to shorten trading hours since Wednesday to avoid a system collapse.

A report on Monday by Daiwa Institute of Research about the likelihood of Livedoor being delisted also fueled a sell-off of small-cap stocks by individual investors, who have been behind gains in Japanese shares since late last year.

more...

[EuroObserver]

5. Tokyo increasingly defensive

Nikkei falls 2 pct on US slide, dollar weakness

Nikkei falls 2 pct on US slide, dollar weakness
...
The Nikkei fell 2.14 percent or 336.04 points to 15,360.65, a hair above a five-week closing low of 15,341.18 marked on Jan 18. The broader TOPIX index was down 2.25 percent at 1,587.90.

Analysts said investors were holding back ahead of quarterly earnings reports, which are to peak later this month. Such manufacturers as Advantest, Sony Corp. and NEC Corp are among firms to announce quarterly earnings later this week.

"Unlike disappointing earnings in the U.S., those in Japan do not look so bad. But investors are basically taking a wait-and-see attitude," said Nobuki Goto, general manager of investment research at Tokio Marine Asset Management.
...
The dollar slipped to around 114.70 yen on Monday from around 115.30 yen in late Friday U.S. trade as geopolitical worries, a surge in oil prices and a fall in U.S. stocks fueled selling of the dollar.

Advantest, the world's biggest maker of chip-testing devices, fell 3.8 percent to 12,150 yen.

But shares in oil-related companies such as INPEX Corp. and defensive stocks such as Kao Corp. and Japan Tobacco Inc. gained ground as U.S. crude futures rose to their highest level in four months, threatening to become a drag on the global economy.

U.S. crude oil futures briefly touched $69.20 a barrel in Asia as tension over Iran's nuclear program continued to stoke fears of supply disruptions.

Kao was up 1.6 percent at 3,140 yen. After the market closed, Kao said it would post its first profit decline in eight years in the year to March.

Japan Tobacco, the world third-biggest tobacco maker, rose 3.4 percent to 1.82 million yen.

Internet and telecommunications conglomerate Softbank fell 8 percent to 3,360 yen.

Troubled Livedoor closed down by its daily 80 yen limit at 256 yen on the Tokyo bourse's Mothers market for start-ups, having lost about 64 percent in value since Tuesday.

The Mothers index slumped 10.6 percent to 1,913.20.
/more...


Earlier:

Nikkei falls on US slide, Yamaha Motor slumps
Yamaha Motor Co. Ltd. slid more than 7 percent after reports the Japanese government was investigating the motorcycle maker on suspicion it had exported to China, without permission, helicopters that could have military uses.

Investors sold tech-related firms after earnings from U.S. peers failed to meet market expectations and on concerns about higher oil prices, said Masaru Ueda, head of investment strategy at Marusan Securities.

"I think expectations for U.S. (tech) earnings were too high. But then you had the rise of geopolitical risks ... and that has weighed a lot on the market's improving sentiment," he said.

"If oil prices hadn't risen, this would have ended as just being a case of overly strong expectations, but things have taken something of a downward turn." /more...

FOREX-Dollar hits 4-month lows vs euro, Swiss franc
Sun Jan 22, 2006 08:22 PM ET
TOKYO, Jan 23 (Reuters) - The dollar hit its lowest levels in four months against the euro and the Swiss franc on Monday, dented by comments last week from a Federal Reserve official suggesting the 18-month run of interest rate rises was near an end.

Traders said that investors were also favouring safe-haven assets such as the Swiss franc over the dollar as worries about an escalation in the standoff between Iran and the West over Tehran's nuclear programme reduced investors' appetite for risk.

"A consensus is building in the market that the Fed will end its tightening after one more rate hike," said Kikuko Takeda, currency analyst at Bank of Tokyo-Mitsubishi UFJ.

In comparison, the European Central Bank is seen by some at the start of a cycle of rises after the ECB boosted rates last month, while the Bank of Japan is also expected to tighten policy this year.

"The dollar's adjustment may continue for a while," said Takeda. /more...

Tokyo stocks open sharply lower after N.Y. shares plunge
(Kyodo) _ (EDS: EXPANDING) Stocks opened sharply lower on the Tokyo Stock Exchange on Monday after New York stocks suffered the largest fall in two years and 10 months Friday amid renewed concern about major U.S. companies' earnings outlooks as well as the continued surge in oil prices.

In the first 15 minutes of trading, the 225-issue Nikkei Stock Average lost 304.14 points, or 1.94 percent, to 15,392.55. The broader Tokyo Stock Price Index of all First Section issues dropped 34.55 points, or 2.13 percent, to 1,589.84. The Second Section also fell.

Tokyo stocks staged a weak start in a wide range of shares, with brokerage, high-tech, real estate and nonferrous metal issues particularly facing heavy selling pressure. /more...

Euro hits four-month high vs dollar
Sun Jan 22, 2006 07:50 PM ET
TOKYO, Jan 23 (Reuters) - The euro hit a four-month high against the dollar on Monday, helped by comments from a U.S. Federal Reserve official suggesting the central bank is near the end of its credit tightening campaign.

The euro jumped to as high as $1.2245, its strongest since Sept. 22. Automatic orders to buy the euro around $1.22 exacerbated the rise. /more...

[EuroObserver]

6. Livedoor CEO arrested

Japanese prosecutors arrest Livedoor CEO - TV
Mon Jan 23, 2006 05:51 AM ET
TOKYO, Jan 23 (Reuters) - Prosecutors have arrested Takafumi Horie, CEO of Japanese Internet firm Livedoor Co. (4753.T: Quote, Profile, Research) , who shook up corporate Japan with his bareknuckles business tactics, Fuji TV reported on Monday.

Three other executives of Livedoor were also arrested, the Web site of the Nihon Keizai Shimbun said.
...
Media reports have said Livedoor spread false information to investors, issued new shares to "acquire" firms already under its control and then sold them for a profit and padded its books.

[EuroObserver]

7. Japanese economy improving - BOJ

ECONOMY-JAPAN-BOJ
Mon Jan 23, 2006 05:22 AM ET
LONDON, Jan 23 (Reuters) - The Japanese economy seems to be on an improving path, the Bank of Japan's Assistant Governor Eiji Hirano said on Monday.

"Japanese economy seems (to be) getting out of the woods," Hirano told a conference.

"Japan was a failed student for a long time. But it is not a source of instability any more."

Speculation is rife that the BOJ will end its super-loose policy of flooding the money market with cash some time this year as the economy recovers and the deflation that has plagued Japan for more than seven years moderates.

[EuroObserver]

65. On Yamaha's unmanned helicopters

BBC analysis:
Police in Japan have raided vehicles firm Yamaha in an inquiry into possible illegal helicopter exports to China.

Twenty offices and homes were targeted as part of a probe into whether the company exported pilot-less helicopters with possible military applications.

Yamaha acknowledges selling nine of the aircraft to China, but says they could only be used for agricultural purposes.

Yamaha's shares tumbled on the news, losing more than 8% and helping to push Tokyo's main Nikkei 225 index lower.

/more...

Yamaha (old) news item:
...Says Mr. Takafumi Itagaki, Market Development Group Leader, Aeronautic Operations, Yamaha Motor Co., Ltd. (YMC) “We are getting orders from institutions which had been using other makes of remote-control helicopters but wanted the greater reliability and control accuracy of the Yamaha RMAX. America’s NASA is one organization presently using the RMAX, and others include U.S. universities like Carnegie Mellon, Georgia Institute of Technology and the University of California at Berkeley. From Europe, we have received orders from Sweden’s Linkopings University and France’s aeronautics and space administration ONERA. Trial orders have also come from China, South Korea, Australia, New Zealand, and Malaysia. And, in June of 2003, the U.S. Air Force has also purchased an RMAX for test purposes. The uses range widely, from environmental observation to construction site photography. Research is also underway recently into the possibilities of using the RMAX for identification of un-detonated bombs or land mines in former war zones.”

In July 2003, the outstanding performance and technologies of the Yamaha RMAX drew much attention when it was demonstrated at an unmanned aircraft exhibition in the U.S. sponsored by the U.S. Navy and the AUVSI and again at other aeronautics shows held after that in nearby cities.

Thanks to attention like this, YMC’s Aeronautic Operations presently receive about 20 inquiries a month from overseas institutions. “We are getting inquiries from government and military officials, major aircraft manufacturers, private-sector research organizations, all types of groups. The world is rapidly coming to recognize the value of Yamaha’s unmanned helicopters,” adds Mr. Itagaki.

/more, lots of product detail...

See Yamaha RMAX Autonomous Helicopter product pages

Looks like nicely-executed technology. This story should provide them with a lot of excelent free publicity...

[54anickel]

70. So why the big deal now? China first got this in 2002, if not earlier.

China Develops Over-Horizon Unmanned Helicopter
(People's Daily May 24, 2002)
http://www.china.org.cn/english/33226.htm

The unmanned helicopter, called the "air robot", became the focus of attention at the China Beijing International High-tech Expo opened Thursday.

The two helicopters, jointly imported and developed by Beijing BVE Technology Co., Ltd. and the Ministry of Information Industry, have important values in scientific-research, film and TV shot and military affairs.

On the basis of the introduced platform of Yamaha RMAX unmanned helicopter, Chinese scientists succeeded in controlling the helicopter in flight over human's visual range and ensuring its safe return.

snip>

Meanwhile, a series of unmanned aircraft pictures were also displayed at the expo. The unmanned aircrafts, developed by Nanjing Research Institute on Simulation Technique in Jiangsu Province, can fly over 10 hours with the automatic driving system.

[EuroObserver]

80. Looks odd. Kneejerking or do they think they know something?

Reuters: Japan Police Raid Yamaha Motor Over China Sales
Japan has repeatedly expressed concern about China's military buildup and urged Beijing to be more transparent about its motives. Foreign Minister Taro Aso drew an angry retort from Beijing last month when he described China as "a threat."
...
"Yamaha did not get the necessary permission when they exported or tried to export its RMAX Type IIG helicopters," a ministry official said, adding he could not disclose to whom Yamaha Motor had sold the machines, or how many the company had sold.
...
The company denied any wrongdoing.

"We have carried out the proper procedures for exports and have not violated the law," the spokesman said.

Another spokesman said Yamaha, the world's second-biggest motorcycle maker after Honda Motor Co. (7267.T: Quote, Profile, Research), has exported nine unmanned crop-spraying RMAX L181 helicopters to a Chinese firm called BVE.

He said the helicopters could not be modified for military use because of their flying ranges and for other technical reasons.

Chief Cabinet Secretary Shinzo Abe linked the investigation to efforts to halt the spread of weapons of mass destruction.

"It is regrettable that there was an attempt to unlawfully export to China these goods that have a possibility of being converted as a means to transport weapons of mass destruction," he told a regular news conference.

"We hope the full picture will become apparent by the investigation," he said.

The daily Asahi Shimbun reported on Monday, quoting a Japanese police officer close to the case, that the Chinese company with which Yamaha was dealing was suspected of having connections to the People's Liberation Army.

Yamaha shares tumbled nearly 14 percent on news of the investigation before recovering a bit to close down 8.1 percent at 2,670 yen.

/more...

Rather weird. Yamaha seems to say these are not GSM-enabled version, ministry seems to say they are. Limited range anyway. Maybe there was some pressure from the US Embassy? Is there US-manufactured rival (commercial) technology?

[54anickel]

86. That's what I was thinking - US pressure. Has there been renewed

debate on lifting the European Union's arms embargo on China? I remember it was the topic of concern last year when the EU was considering lifting it.

[EuroObserver]

116. Nothing European embargo-related that I've heard of

(that above should have read GPS version (accurate positioning), btw, not GSM).

There's been maybe a bit more than the usual sabre-rattling between China and Taiwan, though. And China's (at least public) attitude towards Japan has hardly been getting warmer, recently.

And Japan itself may be re-awakening militarily.

[54anickel]

118. It's odd. Remember all the "fear China" mongering last summer -

especially in the Moonie Times? Here's one of my favorites lots of names and references to the Clinton Admin:

http://www.washtimes.com/national/20050609-120336-4092r_page2.htm
Analysts missed Chinese buildup

A highly classified intelligence report produced for the new director of national intelligence concludes that U.S. spy agencies failed to recognize several key military developments in China in the past decade, The Washington Times has learned.

The report was created by several current and former intelligence officials and concludes that U.S. agencies missed more than a dozen Chinese military developments, according to officials familiar with the report.

The report blames excessive secrecy on China's part for the failures, but critics say intelligence specialists are to blame for playing down or dismissing evidence of growing Chinese military capabilities.

snip>

Critics of the study say the report unfairly blames intelligence collectors for not gathering solid information on the Chinese military and for failing to plant agents in the communist government.

Instead, these officials said, the report looks like a bid to exonerate analysts within the close-knit fraternity of government China specialists, who for the past 10 years dismissed or played down intelligence showing that Beijing was engaged in a major military buildup.

"This report conceals the efforts of dissenting analysts who argued that China was a threat," one official said, adding that covering up the failure of intelligence analysts on China would prevent a major reorganization of the system.

A former U.S. official said the report should help expose a "self-selected group" of specialists who fooled the U.S. government on China for 10 years.
"This group's desire to have good relations with China has prevented them from highlighting how little they know and suppressing occasional evidence that China views the United States as its main enemy."

more...

[EuroObserver]

8. European stocks drop

What's with this? Europe falls because Japan fell because Wall St. fell because Europe and Japan fell ... At least there's some mention of the deeper and wider malaise recently...

European stocks slide after Tokyo, Wall Street tumble
LONDON (AFP) - European stock markets dropped in early trading after share prices had tumbled in Tokyo and on Wall Street owing to surging oil prices and disappointing earnings from US companies.

London's FTSE 100 index of leading shares fell 0.53 percent to 5,642.60 points, the Paris CAC 40 shed 0.85 percent to 4,732.84 points, and in Frankfurt the DAX 30 lost 0.48 percent to 5,323.28 points.

The DJ Euro Stoxx 50 index of leading eurozone shares declined 0.68 percent to 3,526.75 points.

The euro stood at 1.2239 dollars. /more...

FT: Bourses slip nearly 1 per cent
Last Update: 1/23/2006 4:10:02 AM
European stocks slid sharply at the open after the price of a barrel of crude oil breached $69 a barrel and Wall Street saw its worst one day fall in almost three years on Friday thanks to disappointing corporate updates. The FTSE Eurofirst 300 fell 0.9 per cent to 1,272.23 with Frankfurt’s the Xetra Dax off 0.7 per cent to 5,312.99, the CAC-40 in Paris 0.9 per cent down at 4,728.33 and the FTSE 100 in London 0.7 per cent off at 5,635.0. The Eurofirst 300 ended Friday down 0.7 per cent at 1,283.88 points, its lowest level in almost three weeks. /more...

FT: London tracks Street lower[]/a
Last Update: 1/23/2006 4:11:28 AM
London’s equities market fell in opening trade on Monday, after Friday’s steep losses on Wall Street added to negative sentiment. The FTSE 100 started the day 0.7 per cent lower at 5,633.80 and the FTSE 250 fell by 1.3 per cent to 8,854.4 with support services stocks at the forefront of the sharp slide on the mid-cap index. At the close of business on Friday in New York, a slew of disappointing corporate earnings reports left the Dow Jones Industrial Average 2 per cent lower at 10,666.99, its worst single-day performance since March 2003. Back in London, and the growing feeling that the New Year rally left equities overvalued took further hold, especially in sectors which made the most progress during the bull run. Banking stocks fell furthest. Barclays was 1.1 per cent lower at 591p, HSBC fell 1.7 per cent to 927p and Lloyds TSB was 0.7 per cent lower at 507.8p. Miners were also sharply lower. Rio Tinto fell 1.1 per cent to £28.42, Anglo American was 1.5 per cent weaker at £19.88 and BHP Billiton fell 1 per cent to $10.09.

[EuroObserver]

9. Dollar slides 1.15%

Dollar slides to fresh 4-month low vs euro
Mon Jan 23, 2006 05:48 AM ET
LONDON, Jan 23 (Reuters) - The dollar extended earlier losses to hit a fresh four month low against the euro on Monday, with sentiment pulled down by comments from a Federal Reserve official on structural weakness that added to a belief that the Fed was near the end of its 18-month credit tightening campaign.

New York Federal Reserve Bank President Timothy Geithner said on Monday that the massive and growing U.S. current account deficit presents a threat to the world economy and an eventual adjustment will not necessarily be gradual.

By 1038 GMT, the euro was up 1.15 percent at $1.2276 against the dollar -- its highest since mid-September.

"The mood on the dollar is currently negative, the comments are playing into it. The market is short dollar and sentiment is weakening," Mitul Kotecha, head of fx research at Calyon, said.

"The Fed is indicating it is comfortable with the current range and the ECB is taking a contrasting stance," he added.

[EuroObserver]

13. Dollar at four-month low against Swiss franc

Dollar slips to new four-mo low vs Swiss Franc
Mon Jan 23, 2006 07:56 AM ET
LONDON, Jan 23 (Reuters) - The dollar fell to a fresh four-month low against the Swiss franc on Monday with sentiment weighed down by worries over U.S. economic imbalances and a perception that the Federal Reserve was near the end of its rate hiking campaign.

By 1247 GMT, the dollar had fallen more than one percent to 1.2590 Swiss francs , a level last seen in September.

[ozymandius]

11. It is particularly curious how this daisy chain works, eh?

Europe falls because Japan fell because Wall St. fell because Europe and Japan fell ...

I really enjoy your perspective EuroObserver. Your participation underlines how the markets are truly global. Everyone everywhere has everything to gain and lose.

[EuroObserver]

15. I sense increasing irrationality

Thanks and hi Ozy :hi:

Yep, lots of inexperienced 'players' following each other round and round (whether up or down), generating much empty-headed comment as they spin...

Add in the automated trading factor, computers cumulatively flipping while their 'masters' sleep, trendy young Japanese dealing from their mobile phones...

A pretty perspective. Let's see what kind of 'spin control' comes out of the US today.

[AnneD]

36. Morning Marketeers,

:donut: The current stock market is not a friendly place for inexperienced investors. There is much potential for fleecing these suck.... uh I mean investors. There is too much serious political manuevering afoot, making most buys dangerous. Our deficit is at the tiping point and all we are getting from our leaders is a bunch of rah rah (which in this case makes me even MORE suspicious).
I have been in the market in some form and fashion since 1979-and this is the scariest group of factors in the market place I have ever seen.
Consumers should be getting those new higher 'minimum' credit card payments this month. That combined with the higher gas and fuel prices really should put consumer spending and confidence in a nose dive. Now THAT is spin I want to hear.
Happy Hunting and watch out for the bears.

[EuroObserver]

89. Latest FT report spins London "following" Wall Street

More evidence of the spinning daisy-chain

London recovers following higher Wall Street open
London markets rebounded from steep early losses by close of trade on Monday after Wall Street opened in positive territory as upbeat earnings news from Ford Motor offset disappointing numbers from Bank of America. The FTSE 100 dropped as much as 47 points in the opening exchanges but pulled back to close just 11.5 points or 0.2 per cent lower at 5,660.9. However, the mid cap index dropped 54.8 points or 0.6 per cent to 8,914.4.

[EuroObserver]

12. Europe: Markets hold breath

London rebounds from early steep losses 12:58 GMT
The shadow of the worst single-day performance since March 2003 on the Dow Jones Industrial Average loomed as traders headed into work. The FTSE 100 dropped as much as 47 points in the opening exchanges but pulled back to trade just 16 points or 0.3 per cent lower at 5,656.4. However, the mid cap index dropped 63.1 points or 0.6 per cent to 8,906.1.
Bourses claw back some early losses in lunchtime trade 12:41 GMT
The FTSE Eurofirst 300 fell 0.8 per cent to 1,273.51 in mid-session trade with Frankfurt’s Xetra Dax off 0.6 per cent to 5,316.88, the CAC-40 in Paris 0.9 per cent down at 4,730.53 and the FTSE 100 in London 0.7 per cent off at 5,631.1

CAC 40 down 0.7% at 4,739.50 in lunchtime trade in Paris 12:31 GMT
Xetra Dax 30 down 0.5% at 5,320.90 in Frankfurt 12:19 GMT
FTSE 100 down 0.7% at 5,632.8 in mid-session trade in London 12:01 GMT

[EuroObserver]

85. Europe closing: some damage

CAC 40 closes down 0.5% at 4,751.99 in Paris 16:41 GMT
Xetra Dax 30 closes flat at 5,348.72 in Frankfurt 16:41 GMT
Swiss SMI at CHF 7695.70 flat (-0.02%) 17:20 CET
FTSE 100 closes down 0.2% at 5,660.9 in London 16:42 GMT
FTSE 250 closes down 0.6% at 8,914.4 in London 16:40 GMT
FTSE Eurofirst 300 down 0.2% at 1,280.76 in closing exchanges in London 16:27 GMT

[wordpix2]

10. Bo Diedle launches investigation into Citicorp re: $ to Saudi royal/terror

On Imus this morning: Diedle, a private investigator, said he had an issue with Citicorp and started investigating the company. Found something irregular about Citicorp sending a lot of money to a Saudi royal family member (who Diedle did not name) and this $$ is connected to funding terrorist orgs.

Diedle proclaimed, "I'm launching an investigation today." He was turning purple, he was so angry.

[TheGunslinger]

14. Wolfowitz

[wordpix]

66. pls. explain about Wolf

[TheGunslinger]

108. He worked there along with...

Aziz, current PM of Pakistan.

[ozymandius]

16. pre-open blather

08:30 am : S&P futures vs fair value: +2.5. Nasdaq futures vs fair value: +4.0. Futures trade continues to suggest a higher start for stocks. Following an average 2% drop in the market's major averages on Friday, bargain hunters have gotten an early start. Bear Stearns's defense of Google (GOOG) and upgrade on Yahoo (YHOO) shares helps counter the recent negativity surrounding those tech titans, and Wal-Mart's (WMT) reaffirmation of 3-5% same-store sales growth in January provides further support. After crude hit a four-month high due to geopolitical issues Friday, its 0.7% pullback to $68.00 per barrel acts as a separate bullish factor.

08:01 am : S&P futures vs fair value: +2.5. Nasdaq futures vs fair value: +5.5. Versus fair value, futures trade suggests a higher open for the cash market. Boosting sentiment is Ford (F), gaining 6% in early trade following its fourth quarter earnings report. This morning, the auto maker delivered $0.26 in earnings per share -- exceeding Wall Street's expectation by a quarter. Also behind the rise is some upbeat news on the M&A front: Albertson's (ABS) has agreed to a $17.4 billion cash sale to CVS, Supervalu, and private equity firm Cerberus.

[54anickel]

17. As Economy Thrived Under Greenspan, So Did Debt

Imbalances Make Federal Reserve Chairman's Legacy Unclear

http://www.washingtonpost.com/wp-dyn/content/article/2006/01/22/AR2006012201027.html

snip>

"The jury is out on his legacy in large part because of the debt" and the trade deficit, said Stephen S. Roach, chief economist at Morgan Stanley. "You will not be able to truly judge his accomplishments until we see how this plays out in the post-Greenspan era."

Creating Debt


Greenspan and his Fed colleagues agree that part of the growth in household debt and the trade gap is the side effect of policies that helped steady the U.S. economy after the stock bubble burst in 2000. The Fed's low interest rates encouraged consumers to borrow and spend on houses, autos and other goods, spurring economic growth for several years when businesses were cutting jobs and reluctant to invest. And it was no surprise that consumers spent much of their borrowed money on imports, causing the trade deficit to swell. But in the view of central bank policymakers, the alternative would have been worse -- a longer and more painful downturn.

Greenspan's Fed didn't do it alone, economists agree. Other factors helped fuel the borrowing binge, including global financial trends that have helped keep mortgage rates low and prompted lenders to extend more credit to more people.

The result is a prosperity built on borrowing, say many economists, pointing to a string of recent records and firsts:

snip>

The Fed chairman told Congress in June: "I think we've learned very early on in economic history that debt in modest quantities does enhance the rate of growth of an economy and does create higher standards of living, but in excess, creates very serious problems."

Greenspan didn't define "excess," but economists see troubling possibilities: A sudden reversal in housing prices could trigger a recession if consumers cut back on spending and households have trouble paying their mortgages. The trade gap could swell to a point that forces a sharp fall in the dollar and surge in interest rates, also causing a recession.

more...

Now look at them yo-yo's, that's the way you do it
You play the market like on CNBC
That ain't workin', that's the way you do it
Money for nothin' and your chicks for free
Now that ain't workin', that's the way you do it
Lemme tell ya, them guys ain't dumb
Maybe get a blister on your little finger
Maybe get a blister on your thumb

We got to install microwave ovens
Custom kitchen deliveries
We got to move these refrigerators
We got to move these color TV's

.....


I shoulda learned to play on margin
I shoulda borrowed against my home
Look at that mama, she got it stickin' in the camera
Man we could have some
And he's up there, what's that, credit derivatives?
Bangin' out the dollars like Bernanakeeeee
Oh, that ain't workin' that's the way you do it
Get your money for nothin' get your chicks for free

Now that ain't workin' that's the way you do it
You play the market like CNBC
That ain't workin' that's the way you do it
Money for nothin' and your chicks for free

[54anickel]

43. Oh yeah, remember when Greenspin refused to raise margin

requirements and instead raised interest rates? Or when he touted derivatives and hedge funds as the great panacia for liquidity problems? Howzabout when he was pushing ARMs like some drug dealer - "they're good for you". Yeah right, the jury is still out on his legacy. :eyes:


Margin Requirements as a Policy Tool?
http://www.frbsf.org/econrsrch/wklyltr/2000/el2000-09.html


The Politically Talented Mr. Greenspan
http://www.epi.org/content.cfm/webfeatures_viewpoints_greenspan_talented

A few short days after Bill Clinton vacated the White House this January, Federal Reserve Board head Alan Greenspan publicly endorsed the new tenant's $1.6 trillion tax cut. Democrats who had been convinced by both Clinton and Greenspan to give paying off the debt priority over education, health, and other social investments were "shocked" and "stunned" to hear the chairman brush aside concerns that the government would have to borrow money in order to finance George W's largesse, 40% of which would go to the richest 1% of Americans. The New York Times announced that we had entered the "Greenspan-Bush" era, following the "Greenspan-Clinton" era, in which the president of the United States came to be the junior partner in the management of the U.S. economy.

The story of the Greenspan-Clinton relationship has been embellished into a charming tale of an "odd-couple" policy-wonk romance in which the brilliant, shy economist teaches the economic facts of life to the brilliant, party-going president. The typecasting doesn't quite fit reality. Not only is Greenspan a well-known Georgetown partygoer, his reputation as a scholarly economist is not as heavy among his peers as the business press would have us believe. In his recent generally worshipful biography of Greenspan, Bob Woodward reports that "the Chairman's language was highly idiosyncratic, often not fully grounded in the data."* At the meetings of the Federal Open Market Committee, the Ph.D.s in the room "would be nearly rolling their eyes as the chairman voiced his view about how the economy might be changing."

A closer look at the Greenspan-Clinton era suggests that the chair's genius stems more from his political talents than his economic insights. Thus, on the basis of dubious economics and weak history, he convinced Bill Clinton to give top priority to the elimination of the deficit, as opposed to the public investments in education, health, and infrastructure that Clinton had promised the Democratic faithful in his campaign. In effect, Clinton spent much of his presidency shortchanging the Democratic Party's constituency so he could pay down the debts run up by his two Republican predecessors. As a result, George Bush II is the lucky recipient of a massive fiscal surplus, which he fully intends to use for military spending and tax cuts to promote the interests of the Republicans' higher-income clientele.

As Woodward reports, Greenspan argued that federal deficits would ignite inflation, frightening Democrats with the memory of the late 1970s, when double-digit increases in consumer prices enabled Ronald Reagan to drive Jimmy Carter out of the White House. What Woodward doesn't tell us is that Greenspan's dire warnings were not supported by economic evidence. Other than in wartime, there is no clear relationship between federal deficit spending and inflation. Moreover, the economic scenario of an overheated peacetime economy triggering a politically unacceptable wage-price spiral has never happened in modern times. Every major episode of inflation that cut short growth over the last century has been triggered either by war or increases in global oil prices. The last price flare-up was generated by a short-lived panic in oil markets when the 1990 Gulf War was launched. It was also the shock of suddenly rising global oil prices-not runaway economic growth-that sparked the inflation of the 1970s. The previous price run-up was kicked off by Lyndon Johnson's refusal to raise taxes to pay for the Vietnam War. The inflation spell before that was ignited by the Korean War, the one before that by the lifting of price controls after World War II, and the one before that, by the impact of World War I.

Greenspan is unlikely to be ignorant of this history. Therefore, an explanation for Greenspan's behavior that better fits the facts is that his underlying motive was to restrain federal domestic spending, rather than contain impending inflation.

Greenspan is, after all, an ideological conservative, an early acolyte of the social Darwinist novelist Ayn Rand and Ronald Reagan's choice for Fed chair. Greenspan was also from Wall Street and has been trained to view the stock market as the fundamental measure of the country's economic health.

more...

[AnneD]

48. Hey 54anickel,

is that our theme song...
Your money's worth nothing and your kids for free....

[54anickel]

54. Howzbout -

Your money's worth nothing and your kids pay the fee....

[AnneD]

56. Oh Yahhh

:headbang:

[54anickel]

67. For one in 53 American households, it may already be too late

(Shameless plug for a book, but good read none-the-less)

http://www.321gold.com/editorials/ward/ward012306.html

snip>

On Jan. 11, 2006, at 8:20 EST, a startling news release crossed the wires.1

It proved us right, but it was a hollow victory. Because the results of a conclusive report found that in 2005, one in every 53 American households filed for bankruptcy.

snip>

Even the Heritage Foundation cannot hide the ugly reality that Federal deficits will likely reach a migraine-inducing $1 trillion per year in the next decade. Or that the national debt is expected to triple to $16 trillion.3

snip>

Since March 2003, the monthly cost of the war in Iraq has risen from $4.4 billion to $7.1 billion.5 That means the war will cost $266 billion than originally projected - and ultimately hit $1.2 trillion.6 Every American is writing a check to Uncle Sam for $727 to fund the Empire's Iraqi expedition - and it will get bigger.7

Looking at it another way, Americans so far pay $46 million per Al Qaeda operative killed.8

more...

[54anickel]

88. I, Greenspan (Bonner)

http://www.321gold.com/editorials/bonner/bonner012306.html

The Daily Reckoning PRESENTS: Today marks the beginning of our 'Farewell to Greenspan' week, where we will explore everything Greenspan: his life, his policies, his infamous "Greenspan speak." But before we delve into that, we'll allow him to say a few final words...

I, Alan Aurifericus Nefarious Greenspan, Chairman of the Federal Reserve Bank, holder of the Medal of Freedom, Knight of the British Empire, member of the French Legion of Honor, known to my peers as the "greatest central banker who ever lived," (I will not trouble you with all my titles. I will not mention, for example, that I was the winner of the prestigious Enron Prize for distinguished public service, awarded on November 1, 2001, just days after Enron began to collapse in a heap of corruption charges) am about to give you the strange history of my later years.

For I will dispense with childhood ... even with young adulthood, and those dreary sessions with that terminally dreary woman, Ayn Rand, who couldn't write a compelling sentence if her life depended on it. I'll also dispense with my own dreary years at the Council of Economic Advisors, and pass directly to the time I spent as the most powerful man in the world. For here are my real titles: Emperor of the world's most powerful money, despot of the world's largest and most dynamic economy, and architect of the most audacious financial system this sorry globe has ever seen.

Yes, I, Alan Greenspan, ruled the financial world. But who ruled Alan Greenspan? Ah ... I will come to that, and tell you how, while presiding over the biggest boom ever I became caught in what I may call the "golden predicament" from which I have never since become disentangled.

more...

[54anickel]

91. Poof - 25% Underwater Overnight

How would you like to wake up in a house that declined 25% in value overnight?

If you are a proud Centex owner at "Martins Crossing" in Florida, it just happened to you.

http://www.treasure-coast.us/SPECIALS

SAVE $105,000 - Centex Close Out - NOW $294,000 - NEW Single Family Home in Martins Crossing - 4 Bedroom, 2 Bathroom, 2 Car Garage - 1,695 sf.
BEST DEAL OF THE YEAR!

Let's see.

Save $105,000
Now $294,000
=============
PP $399,000
$105,000/$399,000 = 26.32%

Poof.

$105,000 just went up in smoke.

That ENTIRE subdivision just took a $100,000+ hit.

[AnneD]

124. The only thing worse than being upside down in a loan...

is to have that loan be of the exotic type...interest only or perhaps adjustable rate. This is an example of the mata hitting the fan folks. If you have one of these loans, switch to a fixed while you can....
Remember, a good day is when you have a few minutes warning before the mata hits the fan.

[UpInArms]

18. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DX

Last trade 88.03 Change -0.31 (-0.35%)

Dollar: Is It Broken Yet?

Is It Broken Yet?

Economist Herb Stein, chairman of the Council of Economic Advisers during the Nixon administration, used to say: "Things that can't go on forever, don't." Is the Housing market about to be subject to Stein’s law? Certainly data from last week was less the encouraging for dollar bulls as both Housing Starts and Building Permits both dropped below expectations. 6% money and $2.50/gallon gasoline could be putting an end to the Real Estate ATM. Why do we keep harping about this subject practically every week? Because for all intents and purposes Housing is the US economy these days. It is responsible not only for the vast majority of the nation’s wealth creation since 2001 but also its marginal income, as US consumers in the absence of meaningful wage gains resorted to tapping their home equity loans to the tune of nearly 1 Trillion dollars in 2005. So if housing declines its very difficult to see how the dollar would not follow. It may happen of course – the FX market can always surprise you – but for now we think this may be the key story to follow as 2006 begins to take shape.

To that end, this week’s Existing Home Sales data doesn’t appear to hold much promise for dollar longs as it is predicted to contract slightly from November’s readings. In fact looking at next week’s calendar the numbers are all red suggesting that the greenback may be in for beating. The EUR/USD impressively held the 1.2050 level all week long and a sustained break above 1.2150 mark could open up a run to the 2300-2400 zone. However if we tumble 1.2000 all bets are off and the pair could target the range lows once again.

...more...

[54anickel]

52. Swiss Bank UBS Halts Iran, Syria Business

http://biz.yahoo.com/ap/060122/switzerland_ubs_iran.html?.v=2

ZURICH, Switzerland (AP) -- Swiss banking giant UBS AG said Sunday it has stopped doing business with Iran because of the company's economic and risk analysis of the situation in the country.

UBS will no longer deal with individuals, companies or state institutions such as Iran's central bank, company spokesman Serge Steiner said. A similar policy is also being implemented in the case of Syria, he said.

All existing business with customers in Iran will be canceled, but Iranians in exile are not affected by the decision, Steiner said, confirming an article in Swiss weekly SonntagsZeitung.

"It is a carefully prepared measure that has been under consideration since last fall," Steiner said.

bit more....

[EuroObserver]

73. Sterling rises to three-mth high vs a weak dollar

Mon Jan 23, 2006 3:37 PM GMT
LONDON, Jan 23 (Reuters) - Sterling on Monday hit a three-month high against a broadly weaker dollar, which came under pressure as fresh comments from a Federal Reserve official intensified perceptions that U.S. rate rises are near an end.
...
Analysts said sterling benefited as risk-averse investors turned to the safe havens of UK equity market rich in oil and pharmaceutical companies, and income from oil companies also help UK reduce trade deficit. "In this kind of risk-averse, high oil price environment there are benefits for sterling that other countries don't have," said David Bloom, currency strategist at HSBC Markets.

/more...

[UpInArms]

75. Dollar lower after Fed, ECB speeches

http://www.marketwatch.com/news/story.asp?guid=%7B5FA54B45%2DCC9C%2D489B%2D89FE%2DF1EC83F5E718%7D&symbol=&siteid=mktw

NEW YORK (MarketWatch) - The dollar was under pressure early Monday, after new speeches from Federal Reserve and European Central Bank officials suggested that the difference between U.S. and euro-zone rates could shrink this year.

<snip>

Sentiment was further dented by complex international developments, including Iran's nuclear strategy, Russia's debt repayment plans and Canada's elections today.

"We would have to say there is a confluence of events conspiring against the dollar," said Michael Woolfolk, a senior currency analyst at The Bank of New York.

<snip>

Bank of New York's Woolfolk said the market is trying to sort through the implications of an Interfax report that Russia is preparing to pay off an additional $12 billion of its Paris Club debt, much of which is denominated in euros, said Action Economics.

The news initially was seen as dollar-negative, but the market doesn't yet know enough about how the repayment would be conducted to make a reasonable bet on the news, Woolfolk said.

...more...

[54anickel]

102. A Double Whammy for the Dollar!

http://www.kitcocasey.com/displayArticle.php?id=503

snip>

The first part of a double whammy hit the dollar Friday afternoon, when St. Louis Fed President Poole (you may recall me lambasting him a couple of months ago with his "Deficits don't matter" baloney) said in an interview that he's less concerned with inflation than he was six months ago, and that the Fed may soon stop raising rates... Well, that note sent the dollar to the woodshed Friday afternoon, and the euro was soaring once again, but still within a trading range...

But the euro broke out of that trading range last night when the second part of the double whammy hit the dollar... European Central Bank officials (Noyer and Smaghi) were all over the news wires talking up interest rates, to combat the inflation pressures caused by a rise in oil prices...

And... This is what I've been talking my bald head off about! I even gave an interview to the Wall Street Journal last week, and told them about this scenario and how it would be bad for the dollar... This halt in interest rate hikes in the U.S. and the rising rates abroad... The halt in interest rate hikes would put the focus back on the financial stresses in the U.S. and lo and behold, it's all taking place... I love it when a plan comes together!

So... The euro is all the way back to 1.2280... I had to wipe off the screen and do a double take when I first saw that this morning! Japanese yen got in on the dollar-whacking act, too, moving to the low 114 handle...

Don't know if you've heard some of this new "Deficits Don't Matter" baloney that's coming from Harvard University economist Richard Cooper... He thinks that the gains the dollar made last year illustrate his position that the China experience will sustain the dollar for years to come... I'm firing off a memo to Mr. Cooper, a far better educated man than I am, and tell him that he needs to go back to school and check his research... The dollar gained last year because of the two-headed monster... Rising interest rates in the dollar's favor, and the HIA repatriation of the dollar... I'm so sick of hearing about this "Deficits Don't Matter" chatter that I'm banging on the keyboard right now! (Can't you tell? HAHAHA!)

more...

[UpInArms]

106. OMG! The Great Mogambo has keyboard-banging company!

Chuck Butler - bio

Senior Vice President, Everbank World Markets

Two decades ago, Chuck Butler embarked on his extensive career in foreign investments as the Director of Operations for the Fixed Income Division of the Mark Twain Bank. He oversaw the clearing and custody of all bond department trades and Mark Twain portfolio transactions.

In 1992, he became the Chief International Bond Trader and Director of Risk Management for the Mark Twain Bank, and was responsible for trading global bonds and currencies, as well and overall risk management. In that same year, Mr. Butler began composing his now decade-old daily currency market commentary, A Pfennig for Your Thoughts—a play on the American aphorism "a penny for your thoughts"(the pfennig is the Germany equivalent of a penny). The Pfennig started as some handwritten market notes and witty anecdotes circulated every morning to help traders stay on top of the economic, currency, and market happenings. Butler’s "Daily Pfennig," as it is more commonly called today, has become a popular resource for currency investors and traders alike.

In 1999, Mr. Butler joined the team that launched EverBank as the Senior Vice President of EverBank World Markets. He oversees the trading desk and operations for over 12,000 individual and corporate clients, both in the United States and abroad, who look to EverBank for FDIC-insured World Currency Deposit Accounts, and Single Currency and Index CDs . Chuck is also a frequently quoted and respected analyst of the currency market; in 2003 and 2004, he has appeared on, was featured or quoted in, or referenced by: the Wall Street Journal, US News and World Report, CBS Market Watch, USA Today, CNNfn, the Chicago Tribune and many other publications.

[54anickel]

111. Yeah, but Mogambo's much better looking! And he plays a mean

fiddle.

http://images.google.com/images?q=tbn:vSBtCFnjj40FRM:www.321gold.com/photos/richard

[UpInArms]

112. Euro seen rising to $1.25-$1.26 near-term

Bad sentiment seen hitting dollar

NEW YORK (MarketWatch) -- The siege against the dollar seen Monday and last week is likely to persist several weeks as dollar-negative sentiment pushes the euro up to the $1.25 to $1.26 range, analysts said.

But the bloodletting shouldn't weaken the dollar much beyond that point because the currency remains protected by favorable rate differentials and intense foreign demand for U.S. assets, they said.

At noon the euro rose 1.2% to $1.2281 as the dollar shrank more than 1% to 114.68 yen.

On Monday, the dollar was surrounded by exceptionally negative sentiment, linked to new speeches from Federal Reserve and European Central Bank officials seen as suggesting that the difference between U.S. and euro-zone rates could shrink this year.

A clutch of unnerving unfolding political situations also weighed on the dollar. The list includes Iran's nuclear strategy, unclear debt repayment plans on the part of Russia, Canadian elections, an audiotape last week from al-Qaida terrorist Osama bin Laden and climbing crude prices.

...more...

[UpInArms]

19. Bank of America profit unexpectedly falls

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-23T134633Z_01_N23261130_RTRIDST_0_FINANCIAL-BANKOFAMERICA-EARNS-UPDATE-3.XML

NEW YORK, Jan 23 (Reuters) - Bank of America Corp. (BAC.N: Quote, Profile, Research), the No. 2 U.S. bank, on Monday unexpectedly reported its first profit decline in more than four years as consumer bankruptcies drove up loan losses and trading profits slid.

<snip>

The Charlotte, North Carolina-based bank's lending margin fell to to 2.82 percent from 3.18 percent a year earlier. Rising short-term rates drove up borrowing costs, but long-term rates were little changed, making it more difficult to charge more on lending. This created a "flattening" yield curve.

"There are areas of weakness," said analyst Mark Batty of PNC Advisors in Philadelphia, which invests $50 billion. "The bankruptcy losses are a one-time event. But it seems growth is difficult for banks, which I would attribute to a flat yield curve and higher funding costs."

A surge in bankruptcy filings ahead of tougher, more creditor-friendly laws that took effect Oct. 17 increased credit losses by $524 million, more than the bank forecast. Net charge-offs nearly doubled to $1.65 billion from $845 million.

Meanwhile, trading account profit fell 51 percent from the third quarter to $253 million.

...more...

Cry me a river. :nopity:

[ozymandius]

21. Avarice will be their undoing.

I feel another executive dope-slap coming on.

[UpInArms]

24. Looks like Ameriquest is getting slapped for their avarice

9:09am 01/23/06 AMERIQUEST AGREES TO REVAMP BUSINESS AND LENDING PRACTICES

9:09am 01/23/06 AMERIQUEST TO ASIDE $295M TO COMPENSATE BORROWERS

9:08am 01/23/06 AMERIQUEST SETTLES LENDING-PRACTICES INQUIRY WITH STATES

[UpInArms]

113. Ameriquest to pay $325 mln in lending settlement

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-23T182200Z_01_N23314902_RTRIDST_0_FINANCIAL-AMERIQUEST-URGENT.XML

NEW YORK, Jan 23 (Reuters) - Ameriquest agreed to pay $325 million to settle an investigation into the mortgage company's lending practices, Attorney General Eliot Spitzer's office said in a statement on Monday.

As part of the settlement with 48 attorneys general and banking regulators, Ameriquest agreed to overhaul its sales, appraisal and closing practices.

[AnneD]

51. Again...

more 'surprised' economists :eyes:. When did they publish the bankruptcy stats?
Here let me tune up and join you :nopity:

[ozymandius]

20. I am uncomfortably accustomed to seeing stories like this one.

Ford's 4Q Earnings Climb on Cost Reductions

DEARBORN, Mich. - Ford Motor Co., the nation's second biggest automaker, said Monday it earned $124 million in the fourth quarter, up 19 percent from the year before thanks to cost reductions and improved profits in its luxury division. The company said it earned $2 billion for the year, down 42 percent from a year earlier.

The earnings report came several hours before Ford was scheduled to announce a restructuring plan that was to include plant closings and job cuts in North America.

more...

Why am I uncomfortable about this? Too often do I read stories about companies posting a profit after cutting expenses (i.e. job losses and factory closures). Heavens forbid that a company sustain profitability by producing quality goods that conserve resources necessary for their viability.

[UpInArms]

25. this also perpetuates the myth that losses are the fault of

the wages of the employees - it misdirects the attention from the bad decisions of the corporate heads.

:argh:

[54anickel]

33. Well, labor is such a pain in the arse. I mean come on, the audacity

of people to expect a living wage, health care coverage, and the ability to retire. They think their so friggin important! Come on, I mean all they do is make and sell the stuff! It's not like their actually contributing anything of real value here. :sarcasm:

[AnneD]

55. I TA with your posts Ozy, UIA, and 54anickel....

This flawed logic is part and parcel of the poor management that is rampant at many corporations. And yet, there always seems to be enough money for those increased perks for these incompetent managers. All this represents is paper shuffling and not a real change. How this sorry arsed strategy EVER became a viable business model, I'll never know (well, actually I think it is the Peter Principle in action).

[UpInArms]

22. Nike reveals severance payments to departing CEO Perez

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38740.381245162-858153398&siteID=mktw&scid=0&doctype=806&

LONDON (MarketWatch) -- Nike Inc. (NKE) in a filing to the Securities and Exchange Commission said William Perez, who agreed to resign as chief executive, will receive his base salary of $1.4 million for two years and at least $1.75 million in bonuses. All restrictions on the remaining 66,667 Class B share bonus as well as the 133,334 share option at $90.85 will vest. In addition, the company will pay Perez $150,000 for moving and other costs, and $3.6 million for his house. He'll also get up to $10,000 for consulting on transition matters. Nike added that it hasn't determined the adjustments to new CEO Mark Parker's compensation.

[UpInArms]

71. Nike chief quits with multimillion payoff (at least $4.55M/1yr @ Nike)

http://business.timesonline.co.uk/article/0,,9065-2006239,00.html

William Perez has resigned as the president and chief executive of Nike, the world's largest sports shoe manufacturer, after just over a year in the job following a disagreement over leadership with founder and chairman, Philip Knight.

He will receive a payoff worth at least $4.55 million, representing two year's annual salary and an annual bonus under a "performance sharing plan" of at least $1.75 million.

As part of the "termination agreement" between Mr Perez and the company, Nike has also agreed to buy his house in Portland, Oregon for $3.6 million, including reimbursing him for "payments incurred to remodel and furnish the house", according to a filing with the Securities and Exchange Commission, the American regulator.

As well as repaying approximately $150,000 of moving costs, Nike has agreed to release all restrictions on Mr Perez's 66,667 company shares and a further 100,000 he was allocated on his arrival at the company.

...more...

I wonder how much the average worker at Nike makes?

[UpInArms]

23. Treasurys fall in early trade; supply issue in focus

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7B01508B52-A70E-4370-89B9-C0BC434B93C0%7D&

NEW YORK (MarketWatch) - Treaury prices dropped early Monday, sending yields higher, amid investor concerns about a large supply of government and corporate instruments coming to market this week. In addition, expectations that the Federal Reserve will hike rates again next week was sending money out of the Treasury market. "People don't see a lot of value in a 10-year note that currently is yieling above the Fed funds rate, but will not be in a week," said Kim Rupert, managing director of fixed income at Action Economics. The benchmark 10-year note last was down 9/32 at 100-29/32 with a yield ($TNX) of 4.385%, up from 4.361% in late trade Friday. Indications that stocks will open higher Monday also pressured Treasurys.

[UpInArms]

32. Printing Press Report:Fed adds reserves via overnight system repurchases

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-23T143134Z_01_N23342443_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Jan 23 (Reuters) - The Federal Reserve said on Monday that it added temporary reserves to the U.S. banking system through overnight system repurchase agreements.

The benchmark fed funds rate last traded at 4.25 percent, the Fed's current target for the overnight lending rate.

Further details of the operation are available at: http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[UpInArms]

34. US Treasuries move down, weighed by coming supply

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-01-23T144021Z_01_N23333062_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, Jan 23 (Reuters) - U.S. Treasuries debt prices fell broadly on Monday reflecting concerns about large amounts of Treasury debt issuance beginning this week and continuing through February.

Traders said the prospect of surging debt supply weighed down the market. The Treasury will sell $10 billion of 20-year inflation-linked bonds on Tuesday in the first of around $77 billion of debt auctions in the next three weeks.

"There's a lot of supply coming up and that's bearish for U.S. Treasuries. Oil prices are stabilizing a bit, and stock futures point to firmer Wall Street. But I think supply is the most important factor for now," said a London-based trader.

<snip>

"Some of the selling is because of the dollar, but overall the market tone was a little negative late last week ... and I think we're just coming back to some of those flows," said one trader at one of Wall Street's primary dealers.

He expected prices on 10-year notes to move slowly down in the coming sessions, pushing yields up toward 4.45 percent.

Analysts in general expect hefty supply to impose downward pressure on U.S. Treasuries debt prices in January and February while yields, which move inversely with prices, are expected to rise.

...more...

[54anickel]

57. Oh yeah, I said it before - they'll flood the market to drive down prices

on the long term in an attempt to stay ahead of the inversion of the yield. Ain't working, ain't gonna work and looks suicidal from where I'm sitting. Like handing the bullet to the guy that has a gun to your head. So what if one of our "bankers", in an attempt to avert the start of another WW decided to sell a bunch of that debt they're holding at the same time the Treasury floods the long term market?

[UpInArms]

72. $100 Billion in next 30 days

http://www.marketwatch.com/news/story.asp?guid=%7B44367B4B%2D86F7%2D451C%2D809F%2DFA4ED257C0AE%7D&symbol=&siteid=mktw

excerpt:

There are concerns that foreign central banks will back away from Treasurys in favor of government agency instruments.

"All told, over the next 30 days, the Treasury will auction well over $100 billion in securities that will need to have a home," said Kevin Giddis, managing director of fixed income at Morgan Keegan & Co.

"If the 'street' is required to own a large portion of this amount, it likes to have it on their terms, which usually results in higher yields and lower prices," Giddis said.

Expectations that the Federal Reserve will boost rates again next week also dented Treasury prices.

"People don't see a lot of value in a 10-year note that currently is yielding above the Fed funds rate but will not be in a week," said Kim Rupert, managing director of fixed income at Action Economics.

...more...

[54anickel]

79. WTF, herd foreign CBs into GSEs like Freddie and Fannie while

"the street" picks up the Treasuries? Are we seeing a transfer of risk here? Is this what those quiet meetings between "the Street" and Treasury have been about? Inquiring minds and all. :shrug: :tinfoilhat:

[UpInArms]

42. US c/a gap poses risk to growth-Fed's Geithner

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-01-23T145701Z_01_L2320693_RTRIDST_0_ECONOMY-USA-GEITHNER-UPDATE-1.XML

LONDON, Jan 23 (Reuters) - The massive and growing U.S. current account deficit poses a threat to the world economy and an eventual adjustment will not necessarily be gradual, New York Federal Reserve Bank President Timothy Geithner said on Monday.

He said most analysts agree the external deficit is unsustainably large and will need to come down over time, but there is little consensus on how the adjustment process will unfold or the implications for the economy and financial markets.

"The plausible outcomes range from the gradual and benign to the more precipitous and damaging," Geithner said at a conference in London on global financial imbalances.

"The size and duration of these imbalances, perhaps the most visible of which is the U.S. current account deficit, present challenges -- and risks -- for the world economy."

Geithner pointed out that the U.S. current account gap is nearing 7 percent of gross domestic product, a level without precedent for a major economy.

...more...

[UpInArms]

63. Printing Press Alert: Fed buying coupons, adding permanent reserves

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-23T154111Z_01_N23211099_RTRIDST_0_MARKETS-FED-COUPON-PASS.XML

NEW YORK, Jan 23 (Reuters) - The Federal Reserve said on Monday it was buying coupons, adding permanent reserves to the banking system.

The Fed said it was buying coupons with maturities ranging from Feb. 15, 2014 to Feb. 15, 2026.

Exceptions are available at: http://www.ny.frb.org/markets/omo/dmm/temp.cfm

The coupons are for delivery on Tuesday.

The benchmark fed funds rate last traded at 4.25 percent, the Fed's current target for the overnight lending rate.

Earlier on Monday, the Fed added temporary reserves to the banking system through overnight system repurchase agreements.

[UpInArms]

94. U.S. Treasuries fall as upcoming issuance weighs

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-01-23T171336Z_01_N23423365_RTRIDST_0_MARKETS-BONDS-UPDATE-1.XML

NEW YORK, Jan 23 (Reuters) - U.S. Treasury debt prices fell across the board on Monday, reflecting concerns about a large influx of federal government debt beginning this week and continuing through February.

Traders said the prospect of surging debt supply weighed down the market. The Treasury will sell $10 billion of 20-year inflation-linked bonds, or TIPS, on Tuesday in the first of around $77 billion of debt auctions in the next three weeks.

On Monday, the government announced it also planned to issue $22 billion in two-year notes on Wednesday, about on target with market expectations.

"The announcement today is just a small part of what's going on. We have been seeing a good and steady supply of issuance, and that's going to spook people a little bit from a supply perspective," said John Canavan, a bond market analyst at Stone & McCarthy Research Associates in Princeton, New Jersey.

<snip>

"The supply-demand dynamics are modestly bearish for the U.S. market. We expect the 10-year yield to rise toward 4.50 percent," said Mustafa Chowdhury at Deutsche Bank.

...more...

[54anickel]

128. Treasurys finish off their lows

Auctions of TIPs, 2-year notes set; rate rise expected

http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7B44367B4B%2D86F7%2D451C%2D809F%2DFA4ED257C0AE%7D

NEW YORK (MarketWatch) - Treasurys closed off their lows Monday, diminishing the gains for yields, although an unusually large volume of government and corporate supply kept prices under some pressure.

The benchmark 10-year Treasury note finished down 2/32 at 101-4/32 to yield 4.369%, up from 4.361% in late trade Friday.

The 2-year note ended down 1/32 at 100-1/32 to yield 4.357%.

Treasury price losses lightened in afternoon trade, after an attempt to push higher the yield on the benchmark bond failed.

"Yields were pulled lower after a break above 4.40% on the T-note yield failed attract any follow-through selling," said Action Economics, stressing that the improvement in prices took place on light volume.

During the morning, bonds sold off sharply on concerns about excess supply.

more...

[UpInArms]

28. It appears that Ford's increase was due to selling off the family silver

http://www.bloomberg.com/apps/news?pid=10000087&sid=a_JaGfMn4F0k&refer=top_world_news

Jan. 23 (Bloomberg) -- Ford Motor Co., the world's third- largest automaker, said fourth-quarter net income rose 19 percent on profits from car and truck loans and a gain on the sale of its Hertz Corp. rental-car unit. Ford's North American auto unit had its fifth loss in six quarters.

Net income was $124 million, or 8 cents a share, compared with $104 million, or 6 cents, a year earlier, the Dearborn, Michigan-based company said in a statement today. Ford shares rose as the pretax loss at its North American automotive unit narrowed to $143 million from $470 million a year earlier.

Chief Executive Officer William Clay Ford will announce today his second restructuring of the 102-year-old automaker after failing to stop a 10-year slide in U.S. market share. The announcement comes four years after his previous attempt to cut costs, which led to the elimination of 23,000 jobs.

``There's a lot of sentiment that this is really the last chance for Bill Ford to turn things around,'' said Stephen Pope, head of equity research for Cantor Fitzgerald Europe in London.

<snip>

Excluding costs and gains Ford considers one-time items, the company would have reported a fourth-quarter profit of $511 million, or 26 cents a share, down from $554 million, or 28 cents, a year earlier. On that basis, Ford was expected to report a profit of 1 cent a share, the average estimate of 17 analysts in a Thomson Financial survey.

...more...

[UpInArms]

59. Ford will cut 25,000 to 30,000 jobs

10:40am 01/23/06 FORD TO TAKE $250M PRE-TAX CHARGE IN 2006 FOR STAFF CUTS

10:40am 01/23/06 FORD TO TAKE $220M PRE-TAX CHARGE IN 2006 FOR WRITE-OFFS

10:38am 01/23/06 FORD TO IDLE, CEASE PRODUCTION AT 14 PLANTS BY 2012

10:37am 01/23/06 FORD TO BUILD 250K HYBRIDS/YR BY 2010

10:36am 01/23/06 FORD TO MAKE HYBRID VERSIONS OF ALL 3 AVAIL. 2008-2010

10:36am 01/23/06 Ford investing in new products for Ford, Lincoln and Mercury - MarketWatch.com

10:34am 01/23/06 Ford also cutting salaried personnel, company officers - MarketWatch.com

10:35am 01/23/06 Ford cutting capacity by 1.2M units, or 26%, by 2008 - MarketWatch.com

10:33am 01/23/06 Ford cutting plant-related staff 25K-30K between 2006-2012 - MarketWatch.com

10:31am 01/23/06 Ford forecasts 2006 yr-end cash balance more than $20B - MarketWatch.com

10:32am 01/23/06 Ford restructuring plan called the 'Way Forward' - MarketWatch.com

10:30am 01/23/06 Ford sees loss in global automotive ops in 2006 - MarketWatch.com

[UpInArms]

30. Taxpayers missing out on latest energy bonanza

http://www.chron.com/disp/story.mpl/business/energy/3604860.html

WASHINGTON - At a time when energy prices and industry profits are soaring, the federal government collected little more money last year than it did five years ago from the companies that extract more than $60 billion in oil and gas from publicly owned lands and coastal waters.

If royalty payments in fiscal 2005 for natural gas had risen in step with market prices, the government would have received about $700 million more than it actually did, a three-month investigation by the New York Times has found.

But an often Byzantine set of federal regulations, largely shaped and fiercely defended by the energy industry itself, allowed companies producing natural gas to provide the Interior Department with much lower sales prices — the crucial determinant for calculating government royalties — than they reported to their shareholders.

As a result, the nation's taxpayers — collectively, the biggest owner of U.S. oil and gas reserves — have missed much of the recent energy bonanza.

The new disparities in natural gas parallel those uncovered just five years ago in a wave of scandals involving royalty payments for oil. Between 1998 and 2001, a dozen major companies, while admitting no wrongdoing, paid a total of $438 million to settle charges that they had fraudulently understated their sales prices for oil.

...more...

[wordpix]

77. this is what happens when energy corps make gov policy with Dickhead

[UpInArms]

35. 9:46 EST wheels turning in the land of lala

Dow 10,683.48 +16.09 (+0.15%)
Nasdaq 2,252.25 +4.55 (+0.20%)
S&P 500 1,263.81 +2.32 (+0.18%)
10-Yr Bond 4.390 +0.29 (+0.66%)

NYSE Volume 169,448,000
Nasdaq Volume 177,514,000

09:40 am : As futures trade had presaged, the equity market opened moderately ahead of the unchanged mark. Following Friday's sharp sell-off, buyers eye bargains in the wake of the indices' average 2% one-day decline. Helping to boost sentiment is a better than expected fourth quarter earnings report from Ford (F). This morning, the auto maker beat analysts' expectations by a quarter; the stock has jumped over 5% in the early going. Bear Stearns's upgrade on Yahoo (YHOO) shares and positive comments on Google (GOOG) may help alleviate some of the negativity recently plaguing tech stocks, and Wal-Mart's (WMT) reaffirmed same-store sales growth (+3-5% in January) add to the morning's more optimistic tone. At the same time, Bank of America's (BAC) disappointing Q4 results serve as an offsetting factor and help keep the market's attention on the flat yield curve. Separately, crude (-0.61 $67.85 per barrel) continues to edge off of Friday's four-month high, but persisting concerns over Iran somewhat undercut that effect. DJ30 +19.85 NASDAQ +6.61 SP500 +1.64

[Roland99]

38. Bargain buying! WHEEEE!!!!!

[Roland99]

41. Reversing course?

DJIA 10,670.00 +2.60
Nasdaq 2,241.78 -5.92
S&P 500 1,261.95 +0.46
Russell 2000 704.66 +0.06

[UpInArms]

47. 10:10 EST bouncing around

Dow 10,686.44 +19.05 (+0.18%)
Nasdaq 2,244.28 -3.42 (-0.15%)
S&P 500 1,263.13 +1.64 (+0.13%)
10-Yr Bond 4.400 +0.39 (+0.89%)

NYSE Volume 362,951,000
Nasdaq Volume 374,554,000

10:00 am : The market has managed to maintain its modestly positive stance, and garners support from eight of the ten economic sectors. Spirited leadership thus far lacks, however. Up 0.5%, Materials lead the way higher; Utilities contributes +0.4%, while each of the Financial, Discretionary, and Telecom sectors lend 0.3%. Tech and Industrials, two of the hardest hit on Friday, have risen 0.2% and 0.1%, respectively, while Consumer Staples have advanced 0.2%. Early declines are similarly modest, with Energy and Healthcare each sitting 0.1% below the flat line. Separately, leading indicators rose 0.1% in December (consensus +0.2%). DJ30 +19.29 NASDAQ +4.48 SP500 +2.54 NASDAQ Dec/Adv/Vol 1024/1479/274.1 mln NYSE Dec/Adv/Vol 898/1774/135.0 mln

[Roland99]

49. Ford's up on a fluke (sale of Hertz)...Can't imagine that bounce will last

[UpInArms]

37. Feb Gold @ $558.70 oz

9:47am 01/23/06 FEB GOLD CLIMBS $4.70 TO $558.70/OZ IN MORNING TRADING

[EuroObserver]

87. J.P. Morgan sees gold near $600/oz by year-end

LONDON (Reuters) - Gold prices may reach almost $600 an ounce by the end of the year on supply worries, firming jewellery demand, geo-political concerns and favourable currency environment, J.P. Morgan Securities said in a report on Monday.

Prices might even jump to $800 from $556 now, if Iran's nuclear issue heated up and oil hit $100 a barrel, it said. Oil prices are currently ruling at around $68.

"For gold, event risks are surfacing at a time when mining supply was already inadequate and jewellery demand firming. Fundamentals alone justify prices near $600 by year-end, while a meltdown in Iran/spike in crude could see $800 gold," it said.
...
The report said the market needed both mine supply and considerable amounts of other sources of supply such as sales by central banks and investors to achieve balance

By 2007, non-mine supply would be needed to be half of mine supply to balance the market, considering growth rates in jewellery demand, the report said.

"In our opinion, there is a zero percent possibility of mines achieving 50 percent production growth by 2008," it said.
...
The reports said gold was likely to gain from a favourable currency environment, with the dollar seen range-bound in the first half of the current year, while weakening later.

A weak U.S. currency makes dollar-priced gold cheaper for holders of other currencies and lifts gold demand.
...
"Gold's bullish hues are based on a stagnant supply profile, rising investor interest in real assets and the influx of petro-dollars from the Middle East," the report said, adding the magnitude of petro-dollar flows was difficult to measure.

The report also noted that central banks had ceased to be net sellers of gold for the first time since 2003. It did not elaborate.

/more...

[54anickel]

120. Seems strange to have this coming from JP Morgan. Makes me wanna

ask "whazzup?" - especially that last line in your post. Drop a bomb like that and not elaborate?

[OrangeCountyDemocrat]

133. By Year End?

How about by month's end? I still think Gold can make a run at 600 in the next 7-10 days. We'll see, but perhaps baby steps might be better in the long run.

As for the final comment about central banks ceasing to be net sellers, that speaks for itself. They're now accumulating gold, and not selling it.

[Danascot]

136. Gold lease trends

"For those of you who are unfamiliar with the concept, central banks lease out gold and silver at very low metal interest rates. For gold, this is down around .1% per year. The gold is loaned to a bullion bank who then lends it to consumers at these low rates and it is then quickly sold on the spot market. Some is fabricated into jewelry, marked up 4 to 12 times and sold, but it is all sold. The central bank gets back a lease contract and puts this in the vault as a gold credit and counts the gold as still there in the vault. Upwards of two thirds of central bank gold being dumped on the markets is this invisible form of selling. If asked, the Western central banks will say they have close to 30,000 tons of gold in their vaults, when the actual tonnage is closer to 15,000 tons."

http://www.financialsense.com/fsu/editorials/2006/0119.html#silverlease

[UpInArms]

117. Gold futures close up on weaker dollar - $558.70 oz

http://www.marketwatch.com/news/story.asp?guid=%7BD67D427E%2D4D9D%2D48B4%2D8FE2%2D251E2FCC3220%7D&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Gold futures rose Monday to close near $559 an ounce -- recovering the bulk of the previous session's loss as weakness in the U.S. dollar sparked investment demand for the precious metal.

The dollar fell against major currencies after new speeches from Federal Reserve and European Central Bank officials suggested that the difference between U.S. and eurozone rates could shrink this year. See Currencies.

Against this backdrop, gold for February delivery climbed $4.70 to finish at $558.70 an ounce. The contract struck a fresh 25-year high at $568.50 Friday before losing $5 at the close as traders locked in gains.

Gold found support from the dollar's weakness and worries about developments surrounding Iran's nuclear program, as well as from signs the Fed may be reaching the end of its rate-raising cycle.

In any case, "the longer-term outlook for gold remains robust given constrained output and soaring physical demand from the major emerging economies of India and China," according to Action Economics.

...more...

[rainbow4321]

39. Albertson's Finds Buyers

http://www.kotv.com/main/home/storiesNL.asp?whichpage=1&id=97400

A group including grocery parent Supervalu and drug retailer CVS has agreed to buy Albertson's for more than $17-billion in cash, stock and debt assumption.

CVS will acquire Albertson's stand-alone drugstore business, which includes about 700 stores, and related real estate.

Another group led by private equity firm Cerberus Capital Management will buy stores in Dallas-Fort Worth, Northern California, Florida, the Rocky Mountains and the Southwest. That group plans to operate the stores under the Albertson's name.

Traditional grocers have been facing pressure from larger discount competitors like Costco and Bentonville-based Wal-Mart Stores as well as upscale rivals Whole Foods and Trader Joe's.

[UpInArms]

44. IMF's Rajan says U.S. must cut fiscal deficit (raise taxes)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-23T144825Z_01_LAE000071_RTRIDST_0_ECONOMY-USA-IMF.XML

LONDON, Jan 23 (Reuters) - The United States must reduce its fiscal deficit to help right global imbalances, the International Monetary Fund's chief economist said on Monday.

"The U.S. should reduce its fiscal deficit," Raghuram Rajan told a London conference, adding that global imbalances were a threat to the health of the world economy.

"Some revenue-raising measures had to be considered after Hurricane Katrina ... but we believe some of those measures are optimistic," he said.

[54anickel]

135. And Booosh's answer..."STFU, it's China's fault"

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2060466

[ozymandius]

45. markets not making any friends this morning

10:09
Dow 10,674.74 +7.35 (+0.07%)
Nasdaq 2,241.88 -5.82 (-0.26%)
S&P 500 1,261.98 +0.49 (+0.04%)
10-Yr Bond 43.98 +0.37 (+0.85%)
NYSE Volume 352,299,000
Nasdaq Volume 364,767,000

09:40 am : As futures trade had presaged, the equity market opened moderately ahead of the unchanged mark. Following Friday's sharp sell-off, buyers eye bargains in the wake of the indices' average 2% one-day decline. Helping to boost sentiment is a better than expected fourth quarter earnings report from Ford (F). This morning, the auto maker beat analysts' expectations by a quarter; the stock has jumped over 5% in the early going. Bear Stearns's upgrade on Yahoo (YHOO) shares and positive comments on Google (GOOG) may help alleviate some of the negativity recently plaguing tech stocks, and Wal-Mart's (WMT) reaffirmed same-store sales growth (+3-5% in January) add to the morning's more optimistic tone. At the same time, Bank of America's (BAC) disappointing Q4 results serve as an offsetting factor and help keep the market's attention on the flat yield curve. Separately, crude (-0.61 $67.85 per barrel) continues to edge off of Friday's four-month high, but persisting concerns over Iran somewhat undercut that effect. DJ30 +19.85 NASDAQ +6.61 SP500 +1.64

[oioioi]

46. Nasdaq turns red

Index Value: 2,241.99
Trade Time: 10:09AM ET
Change: -5.71 (0.25%)

INTC down ANOTHER 1% in last 10 min

[Roland99]

53. Intel and Cisco are taking a beating.

[Roland99]

58. Ford making announcement now

A lot of blather so far.


"We will not stand for business as usual."

"Up 44% in China."

"The changes we made in 2002 were not wrong. They took us as far as we could go without drastic changes."

"Oil and steel costs are up"

"Ford Motor Company will no longer publish annual earnings guides."

"Must be long-term (not short-term)"



"Going to focus on customer"

"If you build it, they will buy it...is wrong."

"Must reduce capacity"



Blather on innovation

Safety issues like night-vision and collision avoidance


"By 2010, 1/2 of Ford/Mercury/Lincoln products will have hybrid capability."

"old methods were getting in the way (of desiging Escape Hybrid)"

"Why didn't we do this before? We didn't have to."


Story about Henry Ford building 1st car in a garage...ended up being too big to drive out...had to knock down a door.

"We're moving from a culture that discourages innovation to a company that celebrates it."

"Design compensation plans that reward new thinking."

"Innovation website to solicit ideas from employees."


"Capacity must be tailored to customer needs...resist gap between Ford and competitors on material cost."

"Healthcare and legacy costs are enormous...working with UAW re: escalating costs...more progress is needed...costs rising 8%/yr."


Building up intro to Mark Fields now, I assume.


Damn...this is a long "in conclusion" ;)



Mark's not up...Jim (someone)...global ops...oh well.



:puke:

"global synergies"

[UpInArms]

61. 25,000 to 30,000 jobs to be cut

10:36am 01/23/06 Ford investing in new products for Ford, Lincoln and Mercury - MarketWatch.com

10:34am 01/23/06 Ford also cutting salaried personnel, company officers - MarketWatch.com

10:35am 01/23/06 Ford cutting capacity by 1.2M units, or 26%, by 2008 - MarketWatch.com

10:33am 01/23/06 Ford cutting plant-related staff 25K-30K between 2006-2012 - MarketWatch.com

10:31am 01/23/06 Ford forecasts 2006 yr-end cash balance more than $20B - MarketWatch.com

10:32am 01/23/06 Ford restructuring plan called the 'Way Forward' - MarketWatch.com

10:30am 01/23/06 Ford sees loss in global automotive ops in 2006 - MarketWatch.com

[UpInArms]

62. Ford closing 14 plants

10:38am 01/23/06 FORD TO IDLE, CEASE PRODUCTION AT 14 PLANTS BY 2012

10:37am 01/23/06 FORD TO BUILD 250K HYBRIDS/YR BY 2010

10:36am 01/23/06 FORD TO MAKE HYBRID VERSIONS OF ALL 3 AVAIL. 2008-2010

250K hybrids???

These people are sooooo stuuuupid!

Why are they not converting entire plants to hybrid production?

[UpInArms]

64. Ford to cut up to 30K staff, 26% production in restructuring

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38740.4511775926-858157413&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Ford Motor Co. (F) on Monday said it will cut 26% of of its manufacturing capacity in North America and between 25,000 and 30,000 of its plant-related staff in a move to return its automotive business in the region to profitabilty by no later than 2008. The automotive giant will take a pretax charge of $250 million for its staff reductions and $220 million for fixed asset write-offs in 2006. Ford also said it plans to cut material costs by at least $6 billion by 2010.

[54anickel]

60. China to build 3G network with own technology

http://news.ft.com/cms/s/323b2d84-8bb5-11da-91a1-0000779e2340.html

China is to begin building a national network for "third generation" mobile telephones based on a home-grown standard, bringing the government closer to issuing long-awaited licences for the new technology.

The Ministry of the Information Industry said the TD-SCDMA technology had been selected as a national standard and network construction would shortly begin, according to the Xinhua news agency.

Although the news China is endorsing its own standard will come as no surprise, the announcement could mean it will shortly begin awarding licences for 3G wireless services, with the domestic standard potentially given a headstart over the two most widely-accepted global standards - WCDMA and CDMA 2000.

Beijing has delayed introducing the new generation of services while the TD-SCDMA technology encountered problems in development. A trial network has been set up in several cities.

"The technology is already mature and ready for manufacturers to move ahead with production . . . A stand-alone network will be built for the home-grown technology," the Xinhua report said.

Although China is one of the biggest markets in the world, it has had little influence on technology standards, which some officials believe has given an advantage to multinational equipment manufacturers.

more...

[EuroObserver]

69. The US current-account deficit is a figment of bad accounting. If only.

The United States' current-account deficit is a figment of bad accounting. If only.

The Economist: America's dark materials

STARE at something long and hard enough, and it will begin to swim before your eyes. Economists have been scrutinising America's current-account deficit for years now, and they are no closer to agreeing on what they are looking at. Now two economists at Harvard doubt whether the deficit even exists. Ricardo Hausmann and Frederico Sturzenegger first put this claim in a working paper* released last November. Your correspondent has blinked twice since then, but the claim has not gone away. On the contrary, it is gathering moss†.

At the heart of the argument is a well-known paradox. In the mainstream view, America is now the world's biggest debtor. Thanks to its chronic trade deficits, it stood $2.5 trillion in the red at the end of 2004. And yet it still somehow manages to earn more on its foreign assets than it pays out to service its much bigger stock of debts: $36.2 billion more in 2004.

Most economists conclude that America earns a higher return on its overseas assets (eg, EuroDisney) than foreigners earn on investments in America (eg, Rockefeller Centre). They don their anoraks, immerse themselves in the data and try to work out why this might be so. Messrs Hausmann and Sturzenegger turn the question on its head. It is not the $36.2 billion of income that is the mystery, they say. The anomaly lies in the $2.5 trillion of debt. If America is still coming out ahead of foreigners, then, contrary to popular belief, it must still be a net creditor. America must have more foreign wealth than we can see.

The two authors have borrowed a name for this invisible wealth: dark matter. In theoretical physics, dark matter is the stuff in the universe that we can identify only by its gravitational pull. For the Harvard economists, dark matter is foreign wealth, the existence of which we can infer from the income it provides.

How much of it is out there? You can calculate a price for an asset from the earnings it provides. Messrs Hausmann and Sturzenegger elect to value America's net foreign assets at 20 times their annual earnings, which corresponds to a 5% rate of return. Valued at this ratio, America's national “portfolio” of foreign assets and liabilities is really worth $724 billion, not minus $2.5 trillion. What is more, if its foreign assets are as stable as the authors say, it follows that “the country has not been running a deficit.”

...

Apart from its name, the dark matter thesis appeals because of its simplicity. Philip Lane, of Trinity College, Dublin, thinks it too simple. It matters, he says, what a nation's foreign wealth is composed of. Foreigners hold a lot of American debt (bonds and bank loans), whereas America holds a lot of foreign equity, especially foreign direct investment (FDI). This has two implications. First, what America pays to foreign creditors depends a lot on interest rates, which have been unusually low in recent years. Second, the value of America's assets depends on the risks they carry. Yet Messrs Hausmann and Sturzenegger apply the same valuation ratio indiscriminately to bonds, equities, trade credits and bank loans on both sides of the balance sheet.

That said, there remains a big gap in reported profitability between American FDI and FDI in America that risk alone cannot explain. Perhaps taxes can. To dodge the revenuemen, a multinational company might report artificially high profits in a low-tax jurisdiction abroad. This tax arbitrage, Mr Lane points out, can shift money from one line of the current account to another. But it does not change the size of the deficit one jot.

To Messrs Hausmann and Sturzenegger, mainstream attempts to explain away dark matter look a bit desperate. Fond of their cosmological analogies, they liken them to the labours of medieval astronomers, trying to fit anomalous movements of the planets into their Ptolemaic model of the universe.

But the authors' thesis raises anomalies of its own. By their own account, dark matter should be stable. It stems from abiding features of the American economy, such as managerial know-how, a prized but uncounted commodity that Americans export to their subsidiaries abroad. But as Ed McKelvey, of Goldman Sachs, points out, America's exports of dark matter seem to jump up and down wildly from year to year: $351 billion in 2004, $1.2 trillion in 2003, just $172 billion in 2002. Dark matter seems to fluctuate at frequencies that are not structural, nor even cyclical. Perhaps they are best described as epicyclical.

Not all physicists regard dark matter as an elegant theoretical solution to the mysteries of the universe. Many think it is a bit of a fudge. Just a few months before the concept was introduced into economics, two theorists were hoping to dispel it from physics. Physicists, you see, expect beauty as well as truth from their theories. Economists, alas, must settle for one or the other.

/more...

[54anickel]

76. OMG! I don't know where to begin...

features of the American economy, such as managerial know-how, a prized but uncounted commodity that Americans export Like Ford??? :rofl:

Best line in the piece:

Physicists, you see, expect beauty as well as truth from their theories. Economists, alas, must settle for one or the other.


Sorry, but the only dark matter I can accept resides between the ears of Bushco fools. Then again, I'm not a physicist or an economist.

[fasttense]

104. Yeah, like GM and Delphia executives. n/t

[UpInArms]

78. Pilgrim's Pride 1Q earns decline

http://www.marketwatch.com/news/story.asp?guid=%7B24C9AD78%2DE14B%2D4382%2D8673%2D4FCFA9287BED%7D&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Pilgrim's Pride Corp. posted a sharp decline in first-quarter earnings Monday due to weakness in its Mexico operations, higher energy-related costs, and lower sales prices.

The No. 2 chicken producer in the U.S. and Mexico reported first-quarter earnings of $25.7 million, or 39 cents a share, down markedly from a year-ago profit of $48.5 million, or 73 cents a share. Sales fell in the latest three months to $1.34 billion from $1.37 billion in the same period a year earlier.

<snip>

"When compared to the same period last year, our Mexico operations suffered as the traditional bump we see during the Christmas holiday season did not live up to typical patterns," said O.B. Goolsby, chief executive of the Pittsburg, Texas-based company.

Goolsby continued: "Also, higher energy related costs and lower sales prices, primarily for chicken leg quarters in our U.S. operations, negatively impacted our performance in the quarter versus the same period last year and fourth quarter of fiscal 2005, respectively."

...more at link...

[UpInArms]

82. Bush bribe links denied

http://www.heraldsun.news.com.au/common/story_page/0,5478,17912466%255E663,00.html

CONVICTED Washington lobbyist Jack Abramoff – at the centre of a major corruption scandal – is to become an embarrassment to the White House.

It has denied President George W. Bush knows Abramoff, who has pleaded guilty to bribing officials. But reports suggest at least five photos show the two have met repeatedly.

The Washingtonian and Time magazines said their reporters were shown the pictures, apparently by sources linked to Abramoff.

That's after White House spokesman Scott McClellan said this month, "The President does not know him, nor does the President recall ever meeting him."

...more...

:wow: The words "Bush" and "bribe" in the same headline!

[UpInArms]

83. Japan pushes US for explanation on beef (long ban expected)

http://today.reuters.com/news/newsArticle.aspx?type=topNews&storyID=2006-01-23T100305Z_01_T146915_RTRUKOC_0_US-MADCOW-JAPAN-USA.xml&archived=False

TOKYO (Reuters) - Japan said on Monday it would not resume U.S. beef imports without an explanation of how banned spinal material, believed to carry a high risk of causing a human form of mad cow disease, came to be found in a shipment of U.S. meat last week.

The two countries' top farm officials, Japanese Agriculture Minister Shoichi Nakagawa and U.S. Agriculture Secretary Mike Johanns, will discuss U.S. beef imports by telephone at 9:30 p.m. Tokyo time (1230 GMT) on Monday, Japanese farm officials said.

It will be the first time they have talked since Tokyo reimposed a ban on U.S. beef imports last week.

On Tuesday, there will be high-level talks on the issue between the U.S. Agriculture Department and Japan's Agriculture, Foreign and Health Ministries in Tokyo, attended by USDA Undersecretary J.B. Penn, a Japanese official said.

Japan, formerly the biggest market for U.S. beef, just last month had lifted a ban on imports imposed in 2003 after the first U.S. case of the disease was found in a cow in Washington state.

...more...

Explanation (from a non-related article last week): Profits before safety

[EuroObserver]

95. It's a Japanese domestic problem also.

So they're bound to be very wary.

Japan's 22nd mad cow disease case confirmed in Hokkaido
(Kyodo) _ A 5-year-and-4-month-old cow that died last week on a Hokkaido farm had mad cow disease -- the 22nd case in Japan, the Ministry of Agriculture, Forestry and Fisheries said Monday.

[Lori Price CLG]

90. Kicked, and recommended for 'Greatest' page. n/t

[UpInArms]

93. Hiya Lori!

Glad to see you here at the SMW!

:hi:

[UpInArms]

92. Senators enjoy unusual market "luck"

http://www.timesgazette.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=137150&TM=36403.04

Folks, I am fairly certain that you are getting as fed up as I am with the scams and scandals coming from Washington, D.C. and Columbus. At the least, I hope that most of you are getting fed up.

When I heard the first of this last bunch of ill deeds, I thought, “Well, it’s just one bad apple.” This was the one where the Bureau of Workers’ Compensation invested in a company in Pennsylvania that gambled in the market on high-risk items. And, of course, they lost. Oh yes, there was a family tie between a bureau trustee and an employee of the investment firm.

<snip>

Now I read where our U.S. senators are the best inside traders on the stock market. Four researchers, Alan Ziobrowski of Georgia State, Ping Cheng of Florida Atlantic, James Boyd of Kent State, and Bridgett Ziobrowshi of Augusta State, have looked at how well different groups of investors did when playing the stock market.

When we, the average citizen, play the market, the market beats us by 1.4 percent. When the geniuses buy and sell, they beat the market by 2 percent. People who cheat and who have inside information beat the market by 6 percent. Now, here comes the real kicker, senators who play the stock market, beat the market by 10 percent. This is not just a lucky shot that happens once in a while; this is something that goes on year after year.

...more...

[54anickel]

97. Game's rigged and the gig ain't up. Time to take the remaining chips home.

[AnneD]

103. that luck must come...

from all those day trader in their offices helping them....hummmmmm

[UpInArms]

96. 12:32 EST numbers and blather

Dow 10,706.06 +38.67 (+0.36%)
Nasdaq 2,250.15 +2.45 (+0.11%)
S&P 500 1,265.54 +4.05 (+0.32%)
10-Yr Bond 4.390 +0.29 (+0.66%)

NYSE Volume 1,108,803,000
Nasdaq Volume 1,015,292,000

12:00 pm : Following last week's decline that culminated in Friday's sharp sell-off, Monday's equity market has returned to gaining ground. Buyers have dominated trade from the early going as today's corporate front, along with a sustained pullback in the price of crude, has provided some bargain hunting incentives.

Recovering from some early morning vacillation, each of the ten economic sectors currently stands higher. A 0.8% rise in the Financial sector provides the most support, and is largely to the credit of a soaring brokerage industry. One offsetting factor there is Bank of America (BAC 43.89 -0.30), which fell $0.08 short of Wall Street's profit forecast; however, the bank has pared part of its loss as investors perhaps consider the stock's attractive growth prospects, dividend yield, and valuation. Further, last week's market's performance demonstrated the need for adjusted earnings expectations, and may help lessen the effect of BAC's miss.

Wide-spread buying and particular strength in steel has taken the Materials sector up 1.2%, and much better than expected financial results from Ford (F 8.48 +0.58) supports the Discretionary sector (0.4%). In addition to beating estimates by a quarter, the auto giant announced aggressive restructuring strategies that emphasize cost-cutting initiatives through which the company expects to restore profitability by 2008. Its news lends considerable upside to today's broader market. Reaffirmed expectations for 3-5% (January) same-store sales growth from Wal-Mart (WMT 45.05 +0.05) keeps retailers above the unchanged mark while simultaneously aiding the Consumer Staples (+0.4%) sector. On the M&A front, Albertson's (ABS 25.16 +1.05) agreement to a $17.4 billion buyout spurs some further optimism there. CVS (CVS 27.01 -0.12), amongst the acquiring party, trends slightly lower on the news, but the purchase's long-term accretive effect (+$0.02-0.04 in 2007) limits the downside.

The Tech sector had a rocky morning, but its recent rise to solid ground has been a primary factor behind the indices' advances. Apple (APPL 79.03 +2.94) has erased its recent decline and has sent hardware to the top of the market. Recovered Yahoo (YHOO 21.47 -0.29) shares, following an analyst upgrade, as well as a turnaround in semiconductors, following last week's Intel-induced plunge, are behind the rise. Although INTC remains a sore spot, some modest enthusiasm ahead of Texas Instruments's (TXN 31.65 -0.01) post-close results has catalyzed further upside. Even the Energy sector (+0.7%) has managed to recover today - despite crude's 0.8% decline. Although the oil action is today supportive to the broader market, concerns over Iran nonetheless persist and somewhat dilute its effect. DJ30 +55.97 NASDAQ +6.59 SP500 +5.83 NASDAQ Dec/Adv/Vol 1181/1654/908.9 mln NYSE Dec/Adv/Vol 1047/2064/712.4 mln

[JNelson6563]

98. Not getting any better

12:42

Dow 10,694.21 +26.82 (+0.25%)
Nasdaq 2,248.26 +0.56 (+0.02%)
S&P 500 1,264.33 +2.84 (+0.23%)
10-Yr Bond 4.385% +0.02

Hmmm.
:hide:

[UpInArms]

100. 12:48 EST losing steam rapidly

Dow 10,686.78 +19.39 (+0.18%)
Nasdaq 2,246.57 -1.13 (-0.05%)
S&P 500 1,263.55 +2.06 (+0.16%)
10-Yr Bond 4.387 +0.26 (+0.60%)

NYSE Volume 1,170,064,000
Nasdaq Volume 1,071,186,000

12:30 pm : Healthcare's (-0.2%) return to the red and some scaled-back gains across the eight advancing sectors have taken the indices off of their recently hit highs. Particularly, the now-flat status of Tech has sent the Nasdaq again back to unchanged territory. Semiconductors, while still trending positive, face extended pressure in Intel (INTC 21.30 -0.46) that has taken steam out of their advance. An additional drag on the Composite is Research in Motion (RIMM 64.77 -1.85); this morning, the U.S. Supreme Court turned down the Blackberry maker's petition to review a patent infringement ruling against the company. On the other side of the aisle, the news bodes well for competitors Motorola (MOT 22.61 +0.13) and Palm (PALM 33.61 +0.41).DJ30 +33.94 NASDAQ +0.81 SP500 +3.56 NASDAQ Dec/Adv/Vol 1228/1638/997.3 mln NYSE Dec/Adv/Vol 1080/2059/788.1 mln

[UpInArms]

99. ARG POLL: 62% say economy will be worse a year from now!

http://americanresearchgroup.com/economy/

George W. Bush's overall job approval rating has returned to its lowest point in Bush's presidency as Americans again turn less optimistic about the national economy according to the latest survey from the American Research Group. Among all Americans, 36% approve of the way Bush is handling his job as president and 58% disapprove. When it comes to Bush's handling of the economy, 34% approve and 60% disapprove.

Among Americans registered to vote, 37% approve of the way Bush is handling his job as president and 58% disapprove. When it comes to the way Bush is handling the economy, 35% of registered voters approve of the way Bush is handling the economy and 60% disapprove.

A total of 14% of Americans say the national economy is getting better, which is down from 30% in December and 52% say the national economy is getting worse, which is up from 40% in December. When asked about the national economy a year from now, 15% say it will be better, which is down from 28% in December, and 62% say it will be worse, which is up from 39% in December.

...more...

[54anickel]

101. And the SOTU address will set out to show just how wrong those

naysayers are. "It's never been better!" "Tax cuts are working!"....blah, blah, blah, lie, lie, lie.

[AnneD]

107. I wish that during the SOTU speech...

they panned around the chambers more (the expressions are great, esp Ted Kennedy). An once, just once, I would love to see Dubya make a remark expecting applause and get stone cold silence. It is too much to wish for catcalls. (mental note, remove all hard light weight objects from living room, pop corn only)

[54anickel]

105. American contractors leaving Iraq

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2060052


http://news.webindia123.com/news/showdetails.asp?id=228607&n_date=20060123&cat=World

American private contractors are preparing to leave Iraq as US money runs out and government ministries take charge of the reconstruction effort, according to the Washington Times.

snip>

The Times said most US-funded projects are scheduled to be completed by the end of this year, and it is unlikely that any significant new US funds will be forthcoming. Iraqi government ministries, which will be taking over responsibility for the reconstruction effort, tend to issue much smaller contracts that do not interest large US companies.

snip>

The World Bank had estimated in 2003 that it would take 56 billion dollar to rebuild Iraq's infrastructure and the United States appropriated 18.7 billion dollar toward the effort, much of which went to build specific projects.

snip>

Some contractors say privately that they do not want to deal with the Iraqi government and that without the protection and support of the US military, it is simply not safe to work in Iraq.

more...

[54anickel]

109. UNDERSTANDING INFLATION, DEFLATION

http://www.gold-eagle.com/editorials_05/baltin011906.html

snip>

The Pivot Point

We are now at or close to the topping out point, which is the point at which consumers can not or will not take on any more debt and/or Mortgage corporations and Banks are unwilling or unable to extend more credit. We now seem to be hitting those topping points simultaneously in many areas: jobs, housing, consumer spending, and credit expansion.

The poor investments of the must have-it-now, generation is about to be unwound. We are where we are because Central Banks have printed ever expanding amounts of money to prevent the normal business cycles from working, to satisfy politicians wanting to get re-elected. Remember "it's the economy stupid". But the only thing the Central Banks have accomplished is to putt off the inevitable deflationary credit crunch while making sure it will be a lot worse in the end. They have definitely NOT eliminated the business cycle.

snip>

BULLS MAKE MONEY, BEARS MAKE MONEY, PIGS? THEY GET SLAUGHTERED

I have received a great many emails inquiring about my reasons for choosing March 2006 as the outside date for the resumption of the BEAR MARKET, keeping in mind that the next market break will probably be an Elliott Wave Third Wave which will be at least 61% more severe than the 2000 - 2003 Wave One. In my estimation the market should have normally peaked in December but this coming top will not be just a normal correction in an ongoing bull market. It will be a top similar to the 1930 top and therefore, in my opinion this last rally required an additional three months to get to the record high levels of Euphoria (check out the VIX) that usually coincides with a major top that convinces everybody that it's the beginning of a new bull market. By the time this rally is over here must be virtually no more money left to invest. Check out mutual fund cash levels. The oil shock should be showing up everywhere, even in the Governments CPI #'s. The Bursting of the real estate bubble which has already begun will be making itself noticed. Most of the 1 to 2% teaser mortgages should be coming due right about now resulting in new all time high levels of defaults. We will then be at 4.75% Interest rates and looking down the barrel of 5 1/2% Plus. The damage that will do to the carry trade, which means hedge fund and Bank profits, will be larger than anyone now realizes. By March even the Wall Street analysts will finally come to the realization that double digit profit growth has never been a given and there is no new profit growth paradigm.. Look what's happening now when a W.S. darling has a great quarter but does not quite live up to expectations (GOG, YHOO, INTC). Slowly but surely most of the die hard bears are either turning bullish or are quietly sitting on the sidelines. There is more but I'll close with a final warning "we are living on borrowed time" What happens when the realization sets in that the New Paradigm of 15 to 25% annual profit gains like all other new paradigms never really existed?

Do you have the courage to stand alone? We have been living on borrowed time for quite some time now. You can ignore the warning signs at your own peril as we rapidly approach that final window of opportunity to cash out of stocks, bonds and real estate investments. Believe me when I tell you that if you wait to see the signs it will definitely be too late as you will be trampled in the mad rush to the exits.

more...

[UpInArms]

110. potential for a negative effect on public confidence in our markets

Is the perfect storm gathering above the US markets?

Audit industry at risk, business group says
Chamber recommends steps to insure industry

WASHINGTON (MarketWatch) - Claiming the accounting profession faces a number of serious challenges that could disrupt U.S. markets, the U.S. Chamber of Commerce on Monday laid out a series of proposals to bolster the industry.

In a 20-page report issued Monday, the Chamber said the government should allow the "Big Four" audit firms to compete for more assignments. The Chamber, which represents more than 3 million businesses, also called for an accounting dispute-resolution procedure and for prosecution of individual wrongdoers and not whole corporations.

The Chamber's report said the profession is "severely contracted" thanks to mergers and the 2002 implosion of Enron scandal-tainted Arthur Andersen.

"Any further contraction in this industry would present a major challenge to the viability of the profession, with potential for a negative effect on public confidence in our markets," the report said.

<snip>

The accounting industry has undergone a round of consolidation since Andersen was convicted of obstruction in justice in June 2002 for shredding documents related to its audit of Enron. The firm later surrendered its accounting licenses to the Securities and Exchange Commission.

...more...

[UpInArms]

114. American Express earnings fall 17%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38740.5632665972-858164519&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- American Express (AXP) on Monday reported fourth-quarter earnings of $745 million, or 60 cents a share, down 17% from $896 million, or 72 cents a share, in the year-ago period. Earnings from continuing operations before an accounting change were $751 million, up 12% from $669 million last year. Income from continuing operations before an accounting change from discontinued operations was 59 cents a share, down from 71 cents a share. Revenue rose 9% to $6.44 billion from $5.9 billion. A survey of analysts by Thomson First Call forecast earnings of 59 cents a share. Wall Street's revenue estimate was $6.84 billion. Shares of American Express rose 65 cents to $52.05 in recent action.

[Sven77]

115. Fark- Privately-minted $20 "Liberty" coins

Privately-minted $20 "Liberty" coins on their way to becoming the new Taco Bell $2 bills

Buczek, 55, and Shane Buczek, 34, both of Derby, are believed to be the first people to be charged in this region for trying to make purchases with the Liberty dollar, a privately minted $20 coin.

http://forums.fark.com/cgi/fark/comments.pl?IDLink=1870284

http://www.buffalonews.com/editorial/20060122/1068456.asp

[54anickel]

130. First time I've heard of someone being arrested for it. Liberties have

been around for quite awhile. The number of vendors willing to accept them has grown and NORFED did win some court battle a couple years back. I guess it depends if they were trying to pass them of as US legal tender or not. It is lawful and not considered conterfeit. :shrug:

[54anickel]

121. Liquidity Fire Trap?

http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=50794

snip>

In addition, several managers are using a loophole in new rules requiring hedge funds to register with the Securities and Exchange Commission as an excuse to tie up investors' assets for long periods of time. By capitalizing on a provision that allows funds with "lockups" greater than two years to be exempt from registration, these advisors end up killing two birds with one stone. And, perhaps, leaving investors high and dry.

Combine all this with the widespread and wide-eyed rush to invest in private equity funds, over-the-counter derivatives, thinly-traded securities, and a host of other illiquid assets, and it is not hard to see how numerous investors have struck something of a Faustian bargain.

That is, they have accepted the prospect of marginally higher returns in exchange for much greater risk -- and increasingly limited access to their money.

With the friction of higher interest rates, excessive leverage, volatile geopolitics and numerous earnings disappointments ratcheting up the temperature in world markets, what might once have been viewed as nothing more than a temporary inconvenience may turn out to be something else: a liquidity fire trap.

more...

[UpInArms]

122. Bank group wary of (class action) retailer credit card suit

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-23T190410Z_01_N23282849_RTRIDST_0_FINANCIAL-CREDITCARDS-LAWSUIT.XML

NEW YORK, Jan 23 (Reuters) - A looming class-action suit from U.S. retailers accusing credit card associations Visa and MasterCard and several big banks of price-fixing could cost the credit card industry more than $100 billion in damages and hit banks beyond American shores, a group of international bankers warned Monday.

Last June the first of some 47 lawsuits were filed by U.S. retailers and trade groups, accusing credit card associations and issuing banks of colluding to set artificially high interchange fees, the fees the merchants pay to credit card banks. It was the latest in a series of legal attacks on Visa and MasterCard by merchants who object to rising fees.

These suits are soon expected to be consolidated and certified as a class action under Federal Judge John Gleason in U.S. District Court for the Eastern District of New York. While a trial might not begin for years, these bankers fear a class-action suit could impose tens of billions of dollars in damages and hobble an important cash cow for the banking industry.

"A merchant victory would reverberate disastrously," said Michael Lafferty, chairman of International Card and Payments Council, a London-based group of international cards executives, on Monday. It "could bankrupt the global cards industry infrastructure and lead to a bank-card system that would be more expensive and bureaucratic to manage."

...more...

[UpInArms]

123. Auto-industry woes may hit banks

Comerica most exposed to Midwest layoffs, analyst says

SAN FRANCISCO (MarketWatch) - Banks with large Midwest operations may be hit by auto-industry woes, with Comerica Inc. among the most vulnerable, Punk Ziegel & Co. analyst Richard Bove said on Monday.

The comments came as Detroit, Michigan-based Ford Motor Co. (F), the world's third-largest carmaker, announced 30,000 layoffs and plans to shut 14 manufacturing plants. See full story.

Ford's Detroit rival General Motors Co. (GM) announced a similar reorganization plan last year, bringing the number of layoffs announced by the two auto giants recently to about 60,000.

Midwest-based auto-parts suppliers such as Delphi Corp. (DPHIQ) are also trying to eliminate workers to compete with cheaper overseas suppliers.

With so many people losing their jobs in Michigan and other auto manufacturing states such as Ohio, banks that operate in the region will likely face higher loan losses, especially from struggling small businesses, Bove said.

"I wouldn't own any bank stocks in the Midwest," Bove said. "They're exposed to the problems of the auto industry and the Ford layoffs today are just the latest example."

...more...

[ozymandius]

125. new blather

3:25 pm : In the midst of the afternoon's narrow range, the market heads into the final half hour of trading with moderate gains. Although buying action has been kept well in check for the duration of today's session, a look at the market's breadth reflects an overall bullish bias. Presently, advancers outpace decliners on the NYSE by 7-to-4; advancing issues on the Nasdaq currently have an 8-to-7 edge. For perspective, decliners held an 11-to-5 lead on the NYSE and a 7-to-3 advantage on the Nasdaq this time Friday. DJ30 +25.46 NASDAQ +0.11 SP500 +2.74 NASDAQ Dec/Adv/Vol 1373/1626/1.64 bln NYSE Dec/Adv/Vol 1172/2091/1.32 bln

at 3:31
Dow 10,704.52 +37.13 (+0.35%)
Nasdaq 2,249.36 +1.66 (+0.07%)
S&P 500 1,265.21 +3.72 (+0.29%)
10-Yr Bond 43.57 -0.04 (-0.09%)
NYSE Volume 1,912,655,000
Nasdaq Volume 1,676,727,000

[54anickel]

127. Bullshi...er I mean Bullish bias.

[ozymandius]

126. just before the close.

3:48
Dow 10,694.13 +26.74 (+0.25%)
Nasdaq 2,248.68 +0.98 (+0.04%)
S&P 500 1,263.81 +2.32 (+0.18%)
10-Yr Bond 43.57 -0.04 (-0.09%)
NYSE Volume 2,040,309,000
Nasdaq Volume 1,778,148,000

[ozymandius]

132. closing numbers with blather

Dow 10,688.77 +21.38 (+0.20%)
Nasdaq 2,248.47 +0.77 (+0.03%)
S&P 500 1,263.82 +2.33 (+0.18%)
10-Yr Bond 43.57 -0.04 (-0.09%)
NYSE Volume 2,256,068,000
Nasdaq Volume 1,946,100,000

4:20 pm : While gains remained moderate Monday, equities rebounded from sharp selling action that sunk Friday's market. Buyers eyed bargains left in the wake of last week's average 2.6% drop in the indices, and some positive news on the corporate front helped provide incentive to snatch them.

The ten economic sectors stood in split fashion for most of the session. Despite retreats in prices across the energy complex, the Energy sector (+1.1%) managed to attract further buying interest and led the advancers. Oil services stocks paved the way higher, as SLB enjoyed follow-through interest following its much better than expected fourth quarter report, and as investors optimistically await result from BJS. As a side note, the latter is one of Briefing.com's suggested holdings for active investors, and is scheduled to report prior to Tuesday's open. Although declines in energy prices were a positive for the broader market today, the fact that supply-related geopolitical concerns (Iran) persist worked to somewhat undercut the declines' effects.

Largely to the credit of a soaring brokerage industry, Financials were stocks' strongest source of support. Upside profit results from Dow component American Express (AXP 51.47 +0.07) were released ahead of schedule and, especially in light of some recent disappointments across both the sector and the Dow, lent further muscle. Along that line, Bank of America (BAC 53.94 -0.25) fell $0.08 short of analysts' earnings estimate this morning. Its subsequent decline was kept in check, though, as investors perhaps acknowledge that Wall Street's estimates on many stocks are too high amid a decelerating earnings growth environment, and that BAC remains attractive on account of its growth prospects, dividend yield, and valuation.

Benefiting from across-the-board jumps in metal stocks, Materials (+1.3%) was also a bright spot today. Following its GE-induced plunge on Friday, Industrials (+0.2%) recovered; Utilities (+0.1%) also closed higher. Facing relative weakness in drug retail, which surging Albertson's shares helped to offset, the Consumer Staples sector ended the day on the flat line. This morning, the grocer agreed to a $17.4 billion buyout led by CVS (CVS 26.67 -0.46), Supervalu, and private equity firm Cerberus. The Discretionary sector similarly closed unchanged. The auto industry led today's S&P, following a much better than expected Q4 report alongside details of an aggressive turnaround plan from Ford (F 8.33 +0.43), but declines across the retail arena and the aforementioned oil overhang challenged its effect.

While buying efforts were generally modest, selling action was even more so. A wavering Technology sector finished 0.3% lower and led the laggards; Intel (INTC 21.37 -0.39) was the primary culprit, and its extended weakness eclipsed some relative strength across the semiconductor industry. Recovered Yahoo (YHOO 34.20 +0.46) and Apple (APPL 77.64 +1.55) shares were particular sources of support that helped limit the sector's slide, however. Reports that the U.S. Supreme Court denied Research in Motion's (RIMM 64.25 -2.37) petition to review a patent infringement ruling added to the Nasdaq's rocky day, but rebounding GOOG shares helped counter that challenge. With respect to RIMM's woes, the news served as a bullish cue for rival Palm (PALM 33.61 +0.41).

Today's economic front featured just a slightly lower than expected read on leading indicators. Investors within both the stock and bond markets essentially overlooked the dated (December) data, though, and remain focused upon the week's housing data and Q4 GDP report. DJ30 +21.38 NASDAQ +0.77 SP500 +2.33 NASDAQ Dec/Adv/Vol 1388/1645/1.93 bln NYSE Dec/Adv/Vol 1206/2077/1.64 bln