‘Batman v Superman’ fights off bad reviews
“Batman v Superman: Dawn of Justice” starring Henry Cavill as Superman and Ben Affleck as Batman is the main event at this weekend’s box office.
Source: ‘Batman v Superman’ fights off bad reviews
Archive for the ‘Uncategorized’ Category
U.S. GDP Rose 1.4% In Final Estimate Of Fourth Quarter Growth
By Tyler Durden
While the final revision to Q4 2015 GDP was so irrelevant it was released on a holiday when every US-based market is closed, even the futures, it is nonetheless notable that according to the BEA in the final quarter of 2015 US GDP grew 1.4%, up from the 1.0% previously reported, and higher than the 1.0% consensus estimate matching the highest Q4 GDP forecast. The final Q4 GDP print was still well below the 2.0% annualized GDP growth reported in Q3.
The figure marks a slowdown from the 2.2% average pace in the first three quarters of 2015. For all of last year, the U.S. economy grew 2.4% matching the advance in 2014.
The reason for the change was largely due to upwardly Personal Consumer Spending, which rose from a contribution of 1.38% to the annualized bottom line to 1.66%. In CAGR terms, personal consumption rose 2.4%, following the 3.0% increase in Q3, higher than the 2.0% previously estimated.
Stripping out inventories and trade, the two most volatile components of GDP, so-called final sales to domestic purchasers increased at a 1.7 percent rate, compared with a previously estimated 1.4 percent pace.
The rest of the GDP components were largely unchanged, with Fixed Investment adding 0.06% to the bottom line, up from 0.02% in the previous estimate, Private Inventories contracting fractionally more than previously estimated (-0.22% vs -0.14%), net trade subtracting 0.1% less from growth (-0.14% vs -0.25%), and finally government spending largely unchanged and hugging the unchanged line at 0.02%.
But while the “resilient consumer” once again carried the US economy in the fourth quarter, largely due to an estimated jump in spending on Transportation and Recreational services, which added an annualized $13 billion to the US economy vs the prior estimate, more disturbing was the drop in profits which we already knew courtesy of company reports and is known confirmed by the BEA whose GDP report also showed that corporate profits dropped in 2015 by the most in seven years.
As Bloomberg writes, the earnings slump illustrates the limits of an economy struggling to gather steam at the start of this year. Some companies, encumbered by low commodities prices and sluggish foreign markets, are cutting back on investment while a firm labor market and low inflation encourage households to keep shopping.
Pre-tax earnings declined 7.8 percent, the most since the first quarter of 2011, after a 1.6 percent decrease in the previous three months. The estimate of nonfinancial corporate profits was reduced by a $20.8 billion settlement, considered a transfer to the government, between BP and the U.S. after the 2010 oil spill in the Gulf of Mexico.
Profits in the U.S. dropped 3.1 percent in 2015, the most since 2008. Corporate earnings are being weighed down by weak productivity, rising labor costs and the plunge in energy prices. Economists at JPMorgan had expected a 9.5 percent drop in pre-tax earnings in the fourth quarter.
“The pace …read more
Source: U.S. GDP Rose 1.4% In Final Estimate Of Fourth Quarter Growth
Holiday Market Summary
By Tyler Durden
With all of Europe and the Americas closed for holiday, what little market action there was overnight came out of Asia, where China once again was engaged in its last hour “National Team” market manipulation, which saved the SHCOMP from a red close after the now traditional last hour buying spree, pushed the Shanghai Composite from red on the session an hour before close to near the highs of the day.
Elsewhere Japan’s Nikkei rose 0.7% after tracking the weakening yen as it always does tick for tick, which in turn dropped on some more BOJ jawboning (BOJ board member Harada says negative rate can go lower and there is room for more easing), although the biggest weekly gain in the USDJPY in two months was driven by news that Japanese investors bought record sum of foreign bonds and stocks last week as local investors continue their “silent bank run” (first noted two months ago) in an attempt to get away from Japan’s oppressive negative rates.
And since this, by definition, is Yen-negative, and since the entire Japane stock market is a function of currency strength, Japan’s capital flight from local stocks was…. bullish for local stocks.
Ah, the magic of centrally-planned markets.
To summarize, the MSCI Asia-Pacific Index adds 0.2%, as gains in consumer shares across the continent outweighed weakness in telecom and health care stks.
Away from Asia, in less than an hour the BEA will release its final revision to Q4 GDP; as a reminder the second revision was for a 1.0% print but since this data is woefully old, the markest will certainly ignore it – especially since it is closed – and will be far more focused on the Q1 GDP which yesterday the Atlanta Fed estimated has tumbled as low as 1.4% after hitting 2.7% just over a month ago.
Market Wrap
- MXAP Index +0.2%
- MXAPJ Index -0.2%
- Nikkei 225 +0.7%
- Topix +0.9%
- Yen spot -0.3% to 113.15
- Shanghai Composite +0.6%
- Kospi -0.1%
- KLCI -0.5%
- SET Index -0.3%
- TWSE -0.4%
- VNI Index -0.2%
Top News
- ChemChina’s Syngenta Bid Needs Broad Scrutiny, U.S. Senators Say
- Nomura Said to Plan Cutting About 20% of North America Staff
- China’s Money-Market Operations Inject Most Cash in Seven Weeks
- USD/JPY rises 0.1% to 113.00 and gains 1.3% on the week; pair continues to test 21-DMA, now at 113.01
- BOJ board member Harada says negative rate can go lower and there is room for more easing
- Yen tomorrow/next repo rate falls to lowest since at least 2007
- BOJ’s 4Q flow-of-funds data shows overseas investors own almost half of Japan’s T-bills, and public pension funds slow overseas investment
- Prime Minister Abe says he doesn’t believe economy in dire circumstances
- BlackRock Downgrades Japan Stocks Amid Volatility, Stronger Yen
- Global Funds Cut Thai and Korean Debt, Buy Indonesian Bonds
- Shanghai Tightens Non-Local Home Buyer Rules as Prices Soar
- Syngenta Says ChemChina Deal Poses No Food Safety Risks: WSJ
Key Ecocnomic Data
N.C. could lose All-Star game over anti-LGBT law
The NBA suggested Thursday North Carolina could lose the 2017 All-Star game over an anti-LGBT law that was signed this week.
Source: N.C. could lose All-Star game over anti-LGBT law
Diversify Into Gold As An “Insurance Policy” Against Geopolitical Risk
By GoldCore
Gold in GBP – 5 Years
The Telegraph, like GoldCore, had warned of such turbulence at the start of the year. John Ficenec, editor of the Questor column, warned of the real risk of volatility and falls in stock markets.
We believe that the tragic events in Brussels show the continued very high degree of geopolitical risk and the need for an insurance policy.
Further attacks are quite possible, including in the U.S., and this should support gold.
Geopolitical risk is frequently underestimated and it would be unwise to discount the risk of a September 11 style attack in the coming months. Intelligence agencies and ISIS themselves are warning of such attacks and investors need to be diversified to hedge this growing risk.
It gives us no pleasure to be the bearer of this bad news but it is important that the reality of the real risks of today are considered in order to protect and grow wealth in these uncertain times.
“Investors could be forgiven for heading for the hills given the tumultuous start to 2016,” so writes Andrew Oxlade in The Telegraph today who advises investors to diversify into gold as an “insurance policy”:
We have long been advocates of exposure to gold as an insurance policy. This was demonstrated once again in the recent sell-off when the price of bullion surged from $1,061 (£762) an ounce on New Year’s Day to $1,246 (£895) by early February. In times of fear, gold is in demand. The price also rises when inflation becomes a danger.
Deflation remains the bigger threat for now, which is partly why gold has been a poor investment in recent years, but the money printing excesses of central banks could yet unleash inflation. In the meantime, the gold price offers some protection during repeat episodes of buckling confidence.
Gold in GBP – 5 Years
The Telegraph, like GoldCore, had warned of such turbulence at the start of the year. John Ficenec, editor of the Questor column, warned of the real risk of volatility and falls in stock markets.
We believe that the tragic events in Brussels show the continued very high degree of geopolitical risk and the need for an insurance policy.
Further attacks are quite possible, including in the U.S., and this should support gold.
Geopolitical risk is frequently underestimated and it would be unwise to discount the risk of a September 11 style attack in the coming months. Intelligence agencies and ISIS themselves are warning of such attacks and investors need to be diversified to hedge this growing risk.
It gives us no pleasure to be the bearer of this bad news but it is important that the reality of the real risks of today are considered in order to protect and grow wealth in these uncertain times.
Read Telegraph article here
Market Performance This Week (Finviz)
Gold is -2.6% and silver -3.4% this week and markets are in a sea of red as they react to the terrorist attacks in Brussels (See Table).
Gold Prices (LBMA)
24 Mar: USD 1,216.45, EUR 1,088.75 and GBP 861.89 per ounce
23 Mar: USD 1,232.20, EUR 1,101.76 and GBP 870.03 per ounce
22 Mar: USD 1,251.80, EUR 1,117.35 and GBP 876.96 per ounce
21 Mar: USD 1,244.25, EUR 1,104.47 and GBP 863.60 per ounce
18 Mar: USD 1,254.50, EUR 1,112.93 and GBP 868.78 per ounce
Silver Prices (LBMA)
24 Mar: USD 15.28, EUR 13.70 and GBP 10.82 per ounce
23 Mar: USD 15.58, EUR 13.92 and GBP 10.99 per ounce
22 Mar: USD 15.89, EUR 14.16 and GBP 11.12 per ounce
21 Mar: USD 15.81, EUR 14.02 and GBP 10.99 per ounce
18 Mar: USD 15.94, EUR 14.13 and GBP 11.02 per ounce
Gold News and Commentary
Spot gold targets biggest weekly loss in four months (Reuters)
Stock Slide Deepens in Asia as Oil Slumps Amid Resurgent Dollar (Bloomberg)
Source: Diversify Into Gold As An “Insurance Policy” Against Geopolitical Risk
FBI may have to share iPhone hack with Apple
There’s a little-known federal policy that might force the FBI to share its promised new iPhone hack.
Source: FBI may have to share iPhone hack with Apple
The Threat Continues: Yuan Weakens For 6th Straight Day – Longest Losing Streak In 2 Years
By Tyler Durden
PBOC fixed the Yuan at its weakest in 3 weeks, pushing the devaluation streak to its longest since early January. However, Offshore Yuan has now dropped over 1.1% against the USD, extending losses for the 6th straight day to 3-week lows. This is the longest streak of weakness in the offshore Yuan since April 2014.
It appears EUR and JPY took enough pain so the basket is revrting to the USD again…
What’s the opposite of passive-aggressive as a clear message is being sent to The Fed – tighten and we unleash the Yuan-weakness-driven turmoil…
Source: The Threat Continues: Yuan Weakens For 6th Straight Day – Longest Losing Streak In 2 Years
Tough Guy Ted Warns "Sniveling Coward" Trump: "Leave My Wife Alone"
By Tyler Durden
This embarrassing episode just goes from farce to farcical-er.
Phase 1:Cruz Reps “Cross The Line”
Almost a week ago,
Phase 2: Trumps Warns Cruz…
Lyin' Ted Cruz just used a picture of Melania from a G.Q. shoot in his ad. Be careful, Lyin' Ted, or I will spill the beans on your wife!
— Donald J. Trump (@realDonaldTrump) March 23, 2016
Phase 3: Cruz Warns Trump – Don't Do The Same Thing To Me That [My Reps] Just Did To You (Or Else!)…
Pic of your wife not from us. Donald, if you try to attack Heidi, you're more of a coward than I thought. #classless https://t.co/0QpKSnjgnE
— Ted Cruz (@tedcruz) March 23, 2016
Phase 4: Trump Goes There…
“@Don_Vito_08: “A picture is worth a thousand words” @realDonaldTrump #LyingTed #NeverCruz @MELANIATRUMP pic.twitter.com/5bvVEwMVF8“
— Donald J. Trump (@realDonaldTrump) March 24, 2016
Phase 5: Cruz Goes Full Rambo…
Ted Cruz: 'Donald, you're a sniveling coward and leave Heidi alone.' pic.twitter.com/0V3Xd8QOGT
— POLITICO (@politico) March 24, 2016
So to sum up – 'Cruz' uses naked images of Trump's wife to disparage him to saintly 'Utah-ans'; Trump pissed; Cruz warns Trump not to reciprocate; Trump shows ugly picture of Cruz's wife… Cruz unleashes inner Hulk as Trump dares to do what Cruz reps did to him…
All we can say is – thank goodness there are no naked picture of Heidi floating around.
Stay Classy San Diego!
Source: Tough Guy Ted Warns "Sniveling Coward" Trump: "Leave My Wife Alone"
