STOCK MARKET WATCH -- Thursday, 15 May 2014

[Tansy_Gold]

[font size=3]STOCK MARKET WATCH, Thursday, 15 May 2014[font color=black][/font]

SMW for 14 May 2014

AT THE CLOSING BELL ON 14 May 2014
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Dow Jones 16,613.97 -101.47 (-0.61%)
S&P 500 1,888.53 -8.92 (-0.47%)
Nasdaq 4,100.63 -30.00 (0.00%)


[font color=green]10 Year 2.54% -0.04 (-1.55%)
30 Year 3.36% -0.03 (-0.88%)[font color=black]


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[font size=2]Market Conditions During Trading Hours[/font]
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[font size=2]Euro, Yen, Loonie, Silver and Gold[center]

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[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font]
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Economic Calendar
Marketwatch Data
Bloomberg Economic News
Yahoo Finance
Google Finance
Bank Tracker
Credit Union Tracker
Daily Job Cuts
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[font color=black][font size=2]Handy Links - Economic Blogs:[/font][/font]
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The Big Picture
Financial Sense
Calculated Risk
Naked Capitalism
Credit Writedowns
Brad DeLong
Bonddad
Atrios
goldmansachs666
The Stand-Up Economist
The Automatic Earth
Wall Street on Parade
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[font color=black][font size=2]Handy Links - Essential Reading:[/font][/font]
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Matt Taibi: Secret and Lies of the Bailout


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[font color=black][font size=2]Handy Links - Government Issues:[/font][/font]
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LegitGov
Open Government
Earmark Database
USA spending.gov
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[font color=black][font size=2]Handy Links - Videos:[/font][/font]
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Charlie Rose talks with Roubini
Charlie Rose talks with Krugman
William Black: This Economic Disaster
Bill Moyers with Kevin Drum and David Corn
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[font color=red]Partial List of Financial Sector Officials Convicted since 1/20/09 [/font][font color=red]
2/2/12 David Higgs and Salmaan Siddiqui, Credit Suisse, plead guilty to conspiracy involving valuation of MBS
3/6/12 Allen Stanford, former Caribbean billionaire and general schmuck, convicted on 13 of 14 counts in $2.2B Ponzi scheme, faces 20+ years in prison
6/4/12 Matthew Kluger, lawyer, sentenced to 12 years in prison, along with co-conspirator stock trader Garrett Bauer (9 years) and co-conspirator Kenneth Robinson (not yet sentenced) for 17 year insider trading scheme.
6/14/12 Allen Stanford sentenced to 110 years without parole.
6/15/12 Rajat Gupta, former Goldman Sachs director, found guilty of insider trading. Could face a decade in prison when sentenced later this year.
6/22/12 Timothy S. Durham, 49, former CEO of Fair Financial Company, convicted of one count conspiracy to commit wire and securities fraud, 10 counts of wire fraud, and one count of securities fraud.
6/22/12 James F. Cochran, 56, former chairman of the board of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and six counts of wire fraud.
6/22/12 Rick D. Snow, 48, former CFO of Fair, convicted of one count of conspiracy to commit wire and securities fraud, one count of securities fraud, and three counts of wire fraud.
7/13/12 Russell Wassendorf Sr., CEO of collapsed brokerage firm Peregrine Financial Group Inc. arrested and charged with lying to regulators after admitting to authorities he embezzled "millions of dollars" and forged bank statements for "nearly twenty years."
8/22/12 Doug Whitman, Whitman Capital LLC hedge fund founder, convicted of insider trading following a trial in which he spent more than two days on the stand telling jurors he was innocent
10/26/12 UPDATE: Former Goldman Sachs director Rajat Gupta sentenced to two years in federal prison. He will, of course, appeal. . .
11/20/12 Hedge fund manager Matthew Martoma charged with insider trading at SAC Capital Advisors, and prosecutors are looking at Martoma's boss, Steven Cohen, for possible involvement.
02/14/13 Gilbert Lopez, former chief accounting officer of Stanford Financial Group, and former controller Mark Kuhrt sentenced to 20 yrs in prison for their roles in Allen Sanford's $7.2 billion Ponzi scheme.
03/29/13 Michael Sternberg, portfolio mgr at SAC Capital, arrested in NYC, charged with conspiracy and securities fraud. Pled not guilty and freed on $3m bail.
04/04/13 Matthew Marshall Taylor,fmr Goldman Sachs trader arrested, charged by CFTC w/defrauding his employer on $8BN futures bet "by intentionally concealing the true huge size, as well as the risk and potential profits or losses associated."
04/04/13 Matthew Taylor admits guilt, makes plea bargain. Sentencing set for 26 June; faces up to 20 years in prison but will likely only see 3-4 years. Says, "I am truly sorry."
04/11/13 Ex-KPMG LLP partner Scott London charged by federal prosecutors w/passing inside tips to a friend in exchange for cash, jewelry, and concert tickets; expected to plead guilty in May.
08/01/13 Fabrice Tourré convicted on six counts of security fraud, including "aiding and abetting" his former employer, Goldman Sachs
08/14/13 Javier Martin-Artajo and Julien Grout charged with wire fraud, falsifying records, and conspiracy in connection with JP Morgan's "London Whale" trade.
08/19/13 Phillip A. Falcone, manager of hedge fund Harbinger Capital Partners, agrees to admit to "wrongdoing" in market manipulation. Will banned from securities industry for 5 years and pay $18MM in disgorgement and fines.
09/16/13 Javier Martin-Artajo and Julien Grout officially indicted on charges associated with "London Whale" trade.
02/06/14 Matthew Martoma convicted of insider trading while at hedge fund SAC (Stephen A. Cohen) Capital Advisors. Expected sentence 7-10 years.
03/24/14 Annette Bongiorno, Bernard Madoff's secretary; Daniel Bonventre, director of operations for investments; JoAnn Crupi, an account manager; and Jerome O'Hara and George Perez, both computer programmers convicted of conspiracy to defraud clients, securities fraud, and falsifying the books and records.








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[font size=3][font color=red]This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.[/font][/font][/font color=red][font color=black]

[xchrom]

1. GLOBAL STOCKS WEAK AHEAD OF EUROPEAN GROWTH DATA

http://hosted.ap.org/dynamic/stories/W/WORLD_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-05-15-04-54-16

SEOUL, South Korea (AP) -- Global stock markets were mostly lower Thursday ahead of quarterly European growth figures that investors hope will show a strengthening economic recovery.

European stocks turned lower after briefly trading in positive territory. Germany's DAX was down 0.1 percent to 9,743.35 and France's CAC 40 declined 0.3 percent to 4,488.09. Britain's FTSE 100 edged down 0.1 percent to 6,869.46.

Wall Street appeared set for losses, with the Dow and S&P 500 futures contracts both down 0.1 percent.

Investors are waiting for European growth figures later in the day. A survey of analysts by financial data provider FactSet forecasts that the eurozone economy grew 0.4 percent from the previous quarter, a figure that would confirm Europe's recovery from recession has gathered pace.

[xchrom]

2. FAST-FOOD PROTEST ORGANIZERS PLAN GLOBAL ACTIONS

http://hosted.ap.org/dynamic/stories/U/US_FAST_FOOD_PROTESTS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-05-15-06-21-42

NEW YORK (AP) -- Labor organizers say protesters will turn out in the. U.S. and more than 30 other countries on Thursday in support of higher pay for workers at fast-food chains including McDonald's, Burger King and Taco Bell.

The demonstrations build on a campaign by unions to bring attention to the plight of low-wage workers and get the public behind the idea of a $15-an-hour wage. The businesses say such a wage would hurt their ability to create jobs.

The campaign comes as President Barack Obama works to raise the federal minimum wage of $7.25 an hour, which translates to about $15,000 a year for a full-time job.

The protests have captured media attention at a time when the gap between the rich and poor has widened. Protest turnouts have varied widely, however.

[AnneD]

32. I refrained from....

any fast food purchases today. It seemed to be business as usual at all the spots. Houston was a target city.

[xchrom]

3. RECOVERY GAINS NO STEAM IN EUROPE AS FRANCE LAGS

http://hosted.ap.org/dynamic/stories/E/EU_EUROPE_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-05-15-05-58-04

FRANKFURT, Germany (AP) -- Europe's economy failed to gain any momentum in the first quarter, solidifying expectations that the European Central Bank will soon back fresh stimulus measures to shore up the recovery.

Eurostat, the EU's statistics office, said Thursday that the economy of the 18 countries that share the euro saw economic output grow by only 0.2 percent in the first quarter from the previous three-month period.

Though that marked the fourth straight quarter of expansion following the recession, the rise was below economists' expectations - the consensus in the markets was for a 0.4 percent increase.

A large chunk of the blame for the underperformance can be placed on a flat performance in France, Europe's second largest economy behind Germany. Between them, the two make up roughly half of the eurozone economy.

[xchrom]

4. JAPAN GROWTH BOOSTED BY PRE-TAX HIKE SPENDING RUSH

http://hosted.ap.org/dynamic/stories/A/AS_JAPAN_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-05-15-01-41-58

TOKYO (AP) -- Japan's economy grew at a 5.9 percent annualized rate in the first quarter, the fastest in nearly three years, as companies and consumers brought forward spending to beat a sales tax increase that is expected to cause a contraction in the current quarter.

The growth figures for the world's third-largest economy released Thursday were in line with expectations. Strong private consumption, residential investment and corporate spending were the biggest contributors to growth, while public spending fell slightly.

Since taking office in late 2012, Prime Minister Shinzo Abe has sought to get Japan's growth back on track through a combination of heavy government spending, ultra-loose monetary policy and economic reforms.

Although the economy was already recovering when Abe took office, his "Abenomics" formula is credited with boosting corporate profits and helping Japan escape from a longtime deflationary rut. Sustaining growth will require major reforms to boost competitiveness and unlock bottlenecks inhibiting growth, economists say.

[xchrom]

5. WHEN FOREIGNERS ARE BUYING, FRANCE GETS MORE SWAY

http://hosted.ap.org/dynamic/stories/E/EU_FRANCE_FOREIGN_INVESTMENT?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-05-15-03-59-10

PARIS (AP) -- The French government is broadening its authority to intervene when foreign companies want to buy firms the state considers vital, including in the sectors of transport, health and communications.

The order released Thursday goes into effect immediately, potentially giving the Socialist government more leverage amid General Electric's $17 billion for the energy division of the French conglomerate Alstom, which makes power plant turbines and pioneered high-speed TGV trains. Alstom got a government bailout in 2005 and has struggled in recent years.

The government last year blocked the sale of the video-sharing website Daily Motion to Yahoo and is pressuring GE for a better offer.

"It's the end of laisser-faire," Economy Minister Arnaud Montebourg told the daily Le Monde.

[xchrom]

6. GERMAN 1Q GDP GROWS ROBUST 0.8 PCT

http://hosted.ap.org/dynamic/stories/E/EU_GERMANY_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-05-15-03-32-28

BERLIN (AP) -- Germany's economy grew a robust 0.8 percent in the first quarter of 2014, doubling the rate of the previous quarter with help from mild winter weather and a strong labor market.

The Federal Statistical Office said Thursday the figure, which was adjusted for seasonal and calendar factors, shows Europe's strongest economy is gaining momentum. A detailed breakdown of the figures isn't available until the end of the month.

ING economist Carsten Brzeski says two opposing trends will affect the future growth. He says the strong labor market and the construction sector should support growth, but economic weakness from France, the crisis in Ukraine, and the Chinese slowdown will hurt it.

In all, he says "some slowdown to more normal growth rates is in the offing."

[xchrom]

7. GERMAN LABOR OFFICIAL URGES SPEEDY MINIMUM WAGE

http://hosted.ap.org/dynamic/stories/E/EU_GERMANY_UNION_HEAD?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-05-12-05-45-58

BERLIN (AP) -- Germany's new top labor official says he will push to have the country introduce a national minimum wage quicker than planned and work to make union membership more attractive to young people.

Reiner Hoffmann, 58, was elected Monday to succeed Michael Sommer as the head of the German Trade Union Confederation or DGB - an umbrella organization that represents German unions in dealing with government authorities, political parties, employers' organizations and others.

According to the dpa news agency, Hoffmann, who ran unopposed, says Germany needs to immediately implement the planned national minimum wage of 8.50 euros ($11.75) per hour. Current plans are to introduce it next year, and phase it in over the following two.

Hoffmann, known as a pragmatist, was an official with the industrial IG-BCE union.

[xchrom]

8. AIRLINES EXPECT MORE TRAVELERS TO FLY THIS SUMMER

http://hosted.ap.org/dynamic/stories/U/US_SUMMER_FLIGHT_FORECAST?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-05-15-06-34-01

NEW YORK (AP) -- More travelers will take to the skies this summer, the U.S. airlines' trade and lobby group predicted Thursday.

About 210 million passengers - or 2.28 million a day- are expected to fly on U.S. carriers between June 1 and Aug. 31. That's up 1.5 percent from last summer and the highest level in six years, according to the trade and lobbying group, Airlines for America.

The forecast includes 29.9 million travelers - or 325,000 a day - flying U.S. airlines to international destinations, an all-time high. Canada, Mexico, the United Kingdom, Germany and Japan are the top five nonstop international destinations, based on published schedules.

Airlines for America does not forecast summer airfares. The average cost of a ticket last year was $381, up 0.1 percent from 2012.

[Demeter]

28. Airlines are PRAYING that more people fly this summer

I wouldn't bet on it, myself.

[AnneD]

33. On the local news chat yesterday.....

they were commenting about how much the tickets had gone up. All were saying they were driving to their destinations.

[xchrom]

9. JAPANESE PANEL URGES GREATER MILITARY ROLE

http://hosted.ap.org/dynamic/stories/A/AS_JAPAN_MILITARY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-05-15-07-32-40

TOKYO (AP) -- Citing threats from China and North Korea, a government-appointed panel is urging Japan to reinterpret its pacifist constitution to allow the use of military force to defend other countries.

Japanese Prime Minister Shinzo Abe formally received the panel's report Thursday and vowed to seek ways to allow the military to do more for the country's own defense and for international peace.

"We must study if the current interpretation of the constitution is sufficient in order to protect the people and their peaceful lives," Abe said.

But he also sought to assuage concerns both at home and in neighboring countries that he is returning Japan to its militarist past.

"There is a misunderstanding that Japan will return to a country that wages war, but that will never happen," he said. "Japan sticks to its pacifist pledge it has kept since the end of the war."

***invest in arms makers.

[xchrom]

10. Europe's Recovery Is All About One Economy

http://www.businessinsider.com/japan-euro-zone-q1-gdp-reports-2014-5

Despite the shared currency, each of the countries in the eurozone have a unique story. Here are highlights from some of the GDP reports we got in the past few hours:

France Halts. GDP growth was 0.0%, missing expectations for 0.1% growth. "The household component was especially weak, with both headline expenditures and household investment reporting significant declines," noted Pantheon Macroeconomics' Ian Shepherdson. "Gross fixed capital formation also fell a notable 0.9% from the last quarter of 2013, but preliminary figures are usually substantially revised. Net trade contributed a negative 0.2% which is bad for France but good for its main trading partners in the eurozone."

Germany Grows. GDP grew at a healthy 0.8% annualized pace, beating expectations for 0.7% growth. "This is a very strong report which solidifies the idea of Germany as the eurozone’s growth engine," said Pantheon's Shepherdson. "We don’t get numerical details for the sub-components from the German statistical office in this first report, but all components of domestic demand are reported to have risen strongly."

Italy Contracts. GDP unexpectedly declined 0.1% annualized versus expectations for 0.2% growth. That's just not good.

Portugal Tanks. GDP plunged 0.7% annualized versus expectations for 0.1% growth. That's worse.

The fact that Germany could surprise to the upside while the rest of Europe disappoints is troubling.



Read more: http://www.businessinsider.com/japan-euro-zone-q1-gdp-reports-2014-5#ixzz31me1aPC3

[Demeter]

29. "The fact that Germany could surprise to the upside while the rest of Europe disappoints is troublin

Not if you have been paying any attention.

Germany is sucking the Eurozone dry, and destroying all the other nations in the compact to keep THEIR banks, THEIR economy, THEIR social programs afloat.

One day, the rest of Europe is going to realize that things are not going to get better unless there are some major changes.

At that point, I would expect the banksters to be personally escorted out of the nearest penthouse windows, the end of the Euro, or at least a major rearrangement, and the ostracism of Germany.

[xchrom]

11. Forget Sanctions Over Ukraine: Russia Scores Massive Gas Pipeline Deal With China

http://www.businessinsider.com/russia-scores-massive-gas-pipeline-deal-with-china-2014-5

China and Russia are set to cement their energy alliance next week with an expected agreement to build a natural gas pipeline between the two nations that would secure a huge new market for the world's largest energy producer and provide a guaranteed energy supply for China's growing economy as both nations face confrontations with the West.

The deal, which the two countries negotiated over the last decade, is expected to be signed when Russian President Vladimir Putin visits Beijing next week.

The deal between Russia's Gazprom and China's state-owned energy giant CNPC was confirmed by sources in the Russian energy sector, according to a note from the Eurasia Group, a consultancy.

Current geopolitical conditions resulting from Russia’s ongoing crisis in Ukraine appear to have aligned the two super powers in such a manner favorable to finally concluding the deal.



Read more: http://www.ibtimes.com/china-russia-energy-alliance-deepens-massive-pipeline-agreement-expected-when-putin-visits-1584353#ixzz31meXWHSB

[TxVietVet]

26. Wait until Putin wants something Communist China has.........

then Russia will stop the gas flow.

We've been there, done that more than once.

Communist China will punish Communist Vietnam over this kind of stunt.

[AnneD]

34. Like I said yesterday....

while we are busy being distracted in Ukraine, Chine is gobbling up all the resources it can.

[DemReadingDU]

35. The one with the most resources WINS

[xchrom]

12. US Will Sell Iraq $1 Billion In Warplanes, Armored Vehicles, And Surveillance Equipment

http://www.businessinsider.com/us-will-sell-iraq-1-billion-in-military-equipment-2014-5

The United States plans to sell nearly $1 billion worth of warplanes, armored vehicles and surveillance aerostats to Iraq.

The deal includes 24 AT-6C Texan II light-attack aircraft, a turboprop plane manufactured by Beechcraft that has .50 caliber machine guns, advanced avionics and can carry precision-guided bombs, the Pentagon said.

The aircraft and related equipment and services are valued at $790 million.

The Pentagon's Defense Security Cooperation Agency informed Congress on Tuesday of the planned sale, which will go ahead unless lawmakers block the deal.



Read more: http://www.businessinsider.com/us-will-sell-iraq-1-billion-in-military-equipment-2014-5#ixzz31mf5sHab

[Demeter]

37. With US loans, or with Oil?

[xchrom]

13. The Euro's Tumbling

http://www.businessinsider.com/european-markets-may-15-2014-2014-5

The euro is tumbling as expectations for ECB action rises. The currency just touched a low of $1.3655, down from an intraday high of $1.3723.
Earlier today, we learned from Q1 GDP reports that France's economy halted, Italy's economy contracted, and Portugal's economy tanked. Meanwhile, Germany seems to be doing fine growing 0.8% in Q1. Altogether, the euro zone grew 0.2% in Q1, missing expectations for 0.4% growth.

The weak data puts increasing pressure on the European Central Bank to act at its upcoming June monetary policy meeting.

"The European Central Bank is preparing a package of policy options for its June meeting, including cuts in all its interest rates and targeted measures aimed at boosting lending to small- and mid-sized firms (SMEs)," reported Reuters' Andreas Framke, Paul Carrel and John O'Donnell on Wednesday.

Markets are in the red across Europe.

Britain's FTSE 100 is down 0.1%.
France's CAC 40 is down 0.3%.
Germany's DAX is down 0.2%.
Spain's IBEX is down 0.3%.
Italy's FTSE MIB is down 1.3%.


Read more: http://www.businessinsider.com/european-markets-may-15-2014-2014-5#ixzz31miLFLWl

[xchrom]

14. The Nikkei Is Sliding After Big GDP Report

http://www.businessinsider.com/japan-may-15-2014-5

Japan is sliding.
The Nikkei is down 1.44% in early going.

This comes after a strong GDP report.

Our colleagues at Business Insider Australia report:

The results show Japan’s economy is slowly getting cracking again with the first quarter results beating market expectations of 1% to hit a seasonally adjusted annualised rate of 5.9%.

...

One of the biggest drivers of the surge was consumer consumption leading up to the April 1 sales tax increase from 5% to 8%. Private consumption reached an annualised rate of 8.5% and helped mitigate the drag down effects of external demand – particularly from the US, one of Japan’s biggest export destinations.



Read more: http://www.businessinsider.com/japan-may-15-2014-5#ixzz31mitR9Sw

[xchrom]

15. MAP: Every Country's Highest Valued Export

http://www.businessinsider.com/every-countrys-highest-valued-export-2014-5



Using data from the CIA Factbook, we labeled every country in the world by it's highest valued export, a.k.a. the commodity that makes the country the most money in the global market.

Unsurprisingly, most of the world runs on oil, particularly the Middle East and Central Asia.Europe seems to be the world's workshop, where most of the machinery and motor vehicles are made.

The type of machinery ranges from optical instruments to BMWs. Latin America brings a blend of food products and oil to the trading table.

Asia, it seems, is the worlds manufacturing center, where the world's clothing, wood products, and semiconductors are made.



Read more: http://www.globalpost.com/dispatch/news/business/global-economy/140502/world-commodities-exports-map#ixzz31mjV7nIH

[xchrom]

16. Oscar, The Startup That's Trying To Shake Up Healthcare, Just Raised $80 Million

http://www.businessinsider.com/oscar-80-million-raise-billion-valuation-2014-5

Oscar, the company dead-set on shaking up the broken healthcare industry, just announced an $80 million fundraise, bringing its valuation to nearly $1 billion.
Oscar officially launched in New York City in January of this year, after founders Kevin Nazemi, Joshua Kushner, and Mario Schlosser decided that they wanted to use technology to create a better, more consumer-friendly health insurance company.

The site is well-designed and easy to navigate, and tries to one-up traditional health insurance companies like Aetna and UnitedHealth by making bill paying a breeze and allowing members to consult with doctors over the phone at no additional charge.

Forbes reports that the company currently has more than 16,000 customers who pay an average of $4,500 in annual fees — placing Oscar’s revenue at around $72 million, with a valuation of $800 million.



Read more: http://www.businessinsider.com/oscar-80-million-raise-billion-valuation-2014-5#ixzz31mp1vdR2

[xchrom]

17. Truck Orders at 8-Year High Signal U.S. Economy Rebound

http://www.bloomberg.com/news/2014-05-15/truck-orders-at-8-year-high-signal-u-s-economy-rebound.html

Trucking companies are increasing their bets on the U.S. economy picking up speed.

Old Dominion Freight Line Inc. and Knight Transportation Inc. are ordering hundreds of vehicles to keep up with freight demand. They’re part of an industrywide push that’s propelling sales of big rigs to an eight-year high, buoying trucking stocks and raising pay for drivers, who are in short supply.

“Freight is up, availability of trucking assets is tight,” said Sandy Cutler, chief executive officer of Eaton Corp., whose products include truck transmissions. Truckers “are feeling more comfortable ordering increased assets.”

Rising cargo rates are giving truckers confidence to expand fleets and replace tractors averaging a near-record age of 9.6 years. While first-quarter U.S. economic growth came to a near standstill, gross domestic product is expected to expand 2.5 percent this year, according to the median forecast of 94 economists surveyed by Bloomberg, topping 2013’s 1.9 percent rise, and accelerate to a 3.1 percent rate next year.

[xchrom]

18. Air Force Spending $60 Million for SpaceX U.S. Launches

http://www.bloomberg.com/news/2014-05-15/u-s-air-force-busting-butt-to-certify-musk-s-spacex.html

The U.S. Air Force is spending about $60 million and using as many as 100 people to certify billionaire Elon Musk’s Space Exploration Technologies Corp. for launching military and spy satellites, according to the service’s top uniformed acquisition official.

“We’ve got folks busting their butt to get SpaceX certified despite what everything in the media seems to say,” Lieutenant General Charles Davis said in an interview.

Davis said the Air Force is eager to find opportunities for SpaceX in its $67.6 billion launch program as he sought to rebut Musk’s contention that the service is protecting a monopoly for United Launch Alliance LLC, a joint venture of Lockheed Martin Corp. and Boeing Co.

“We’ve had to react to SpaceX and members of Congress,” Davis said. “Now there’s allegations of cronyism; there’s allegations of ‘you just want to give money to ULA because you don’t want to have a new entrant certified.’”

[xchrom]

19. Goodbye Crisis as Bankers Start Lending in Portugal

http://www.bloomberg.com/news/2014-05-14/crisis-makes-way-for-banks-as-portugal-loans-resume.html


When Gilmar Padeiro welcomed a Deutsche Bank AG manager into his office in the Portuguese city of Santo Tirso in March, he knew something had changed.

The company that Padeiro runs, Copo Textil Portugal SA, makes fabrics for car interiors. It had never done business with the German bank, the chief executive officer said.

“It’s a very different reality,” Padeiro said. “It’s the banks themselves coming to us offering new products, new ways to help finance our projects.”

After a three-year drought, banks are lending again to small and medium-sized companies as Portugal emerges from its crisis and the economy grows. The businesses account for 78 percent of jobs not in the financial industry and their health is pivotal for the recovery to gain traction.

[xchrom]

20. Russian GDP Growth Slows as Investment Sags on Sanctions

http://www.bloomberg.com/news/2014-05-15/russian-gdp-growth-slows-as-investment-sags-on-sanctions.html

Russia’s first-quarter economic growth slowed to the weakest in a year as the standoff against the U.S. and its allies over Ukraine shrivels up investment.

Gross domestic product advanced 0.9 percent in January-March from a year earlier after a 2 percent gain in the previous quarter, the Moscow-based Federal Statistics Service said in an e-mailed statement, providing its first estimate of first-quarter GDP. That was above the 0.7 percent median estimate of 19 economists in a Bloomberg survey. The Economy Ministry had projected that output expanded 0.8 percent.

President Vladimir Putin’s move to absorb Crimea in March prompted U.S. and European Union sanctions, bringing the already slowing $2 trillion economy to a near standstill. The International Monetary Fund said April 30 that Russia is already in recession as U.S. and EU leaders warn that they are ready to take further measures if Ukraine’s May 25 presidential election is disrupted.

“The main driver for the slowdown is the contraction of investment,” Vladimir Osakovskiy, chief economist for Russia at Bank of America Corp. in Moscow, said by e-mail before the data release. “Investment weakness is due to a combination of much higher borrowing costs and the deterioration of the political and economic outlook. The latter is at least partly due to rising sanction risk from the West.”

[xchrom]

21. Jobless Claims in U.S. Decline to Lowest Level in Seven Years

http://www.bloomberg.com/news/2014-05-15/jobless-claims-in-u-s-decline-to-lowest-level-in-seven-years.html

The fewest Americans in seven years filed applications for unemployment benefits last week as the labor market continued to improve.

Jobless claims dropped by 24,000 to 297,000 in the week ended May 10, less than any economist projected in a Bloomberg survey and the least since May 2007, figures from the Labor Department showed today in Washington. The median estimate of 49 economists surveyed was 320,000.

Firings have been slowing, setting the stage for continued growth in employment and wages. While payrolls rebounded in April after the holidays and a weather-induced soft patch earlier in the year, many companies are proceeding with caution until they see a sustained pickup in consumer spending, which accounts for about 70 percent of the economy.

“The labor market continues to improve after some funkiness associated with the holidays,” Brian Jones, senior U.S. economist at Societe General in New York, said before the report. “The economy’s generally getting better.”

[xchrom]

22. Consumer Prices in U.S. Rose in April by Most in 10 Months

http://www.bloomberg.com/news/2014-05-15/consumer-prices-in-u-s-rose-in-april-by-most-in-10-months.html

The cost of living in the U.S. rose in April by the most in almost a year, a sign inflation may pick up as demand in the world’s largest economy recovers from a weak first quarter.

The consumer price index increased 0.3 percent, the biggest advance since June, after rising 0.2 percent the prior month, a Labor Department report showed today in Washington. The gain matched the median forecast of 82 economists surveyed by Bloomberg. Costs were up 2 percent in the past 12 months, the most since July, after a 1.5 percent year-over-year advance the prior month.

Inflation is inching up toward the Federal Reserve’s target, giving officials reason to continue to scale back the central bank’s unprecedented bond-buying program. Stronger hiring and faster wage gains will be needed to propel a pick-up in demand and enable consumers to cope with higher prices.

“As consumer demand starts to pick up and consumers are more confident and less sensitive to price changes, you’ll see some pick-up in inflation,” Robert Rosener, an economist at Credit Agricole CIB in New York, said in an interview before the report. “Overall, prices should be normalizing by the middle of 2015.”

[xchrom]

23. Swiss Corporate Magic Wanes as People Power Deters Companies

http://www.bloomberg.com/news/2014-05-14/swiss-allure-turns-to-repellent-as-people-power-deters-companies.html

Switzerland’s liberal tax and labor laws made it a magnet for companies. Now the country’s open approach to politics is making it a repellent.

In the past 15 months, Swiss voters have approved a proposal to curb the inflow of foreigners and backed an initiative to limit executive pay including severance packages. In the latest referendum, on May 18, they will decide whether to introduce the world’s highest minimum wage, paying workers at least 22 francs ($25) per hour or 4,000 francs a month.

“It’s democracy at its best, but the multiplication of initiatives after a while has created chaos and nobody knows how to manage it,” said Michel Demare, chairman of Syngenta AG (SYNN), the world’s largest maker of crop chemicals. He also leads Swiss business lobby SwissHoldings. “There are very few large companies that moved to Switzerland in the last two to three years. Some decided to move out.”

The Swiss take direct democracy seriously, holding more plebiscites than anywhere else in Europe. What’s more, they are legally binding, giving the government little or no choice but to implement the will of the people regardless of pressure from companies or other European governments.

[xchrom]

24. Gold Prices Drop Most in Week as U.S. Jobless Claims Fall

http://www.bloomberg.com/news/2014-05-15/gold-trades-near-one-week-high-as-ukraine-supports-haven-buying.html

Gold fell the most in a week as declining U.S. jobless claims signaled a strengthening economy and cut demand for haven assets.

The fewest Americans in seven years filed applications for unemployment benefits last week as the labor market continued to improve. Gold prices tumbled 28 percent in 2013, the biggest annual decline since 1981, as equities rallied and the U.S. economy accelerated.

Bullion holdings through exchange-traded products reached the lowest since 2009 this week as some investors lost faith in the metal as a store of value after the Federal Reserve cut stimulus. Fed Chair Janet Yellen addresses the U.S. Chamber of Commerce today

“Jobless claims dropping below 300,000 is a big deal and people are getting convinced that the economy is showing signs of recovery,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in a telephone interview. “People don’t need to invest in a safe-haven asset like gold when the economy is doing just fine.”

[DemReadingDU]

25. Max Keiser discusses bail-ins with Mark O'Byrne

5/13/14 Keiser Report: USA, USA, USA Today (E600)

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the USA Today headline stories on bitcoin and IPOs as a place where the wealth of the masses goes to be destroyed.


In the second half, Max interviews Mark O'Byrne of Goldcore.com about the end of the era of bondholder bailouts and the beginning of depositor bail-ins as Western central banks trade doom loops for bank runs.


The 2nd half begins at appx 12.5 minutes

&feature=youtu.be

[Demeter]

27. I'm finally here, and look what a fine mess this is!

market down 170 already, no sign of fairies.


We had a lot of rain, and then the power went out for 3 hours.

Otherwise everything is bearable. So far. but it's still raining, and supposed to keep on raining through the weekend. Our flood plain for the creek really flooded Tuesday, and will probably do so again today.

And lo, the weekend approaches. What shall we dabble in this time, Weekenders?

[Fuddnik]

30. You could probably build an ark.

[Demeter]

31. hmmmmm

Is there enough material on the Ark to last all weekend?

It's a thought.

[jakeXT]

36. Trade Error May Wind Up Costing Barclays $4 Million

Trade Error May Wind Up Costing Barclays $4 Million

A trading error at Barclays Plc (BARC) this week caused split-second swings in dozens of U.S. stocks including AOL (AOL) Inc. and Caterpillar Inc. (CAT), according to people familiar with the matter.

Barclays moved the prices of some shares on May 13 after orders tied to the close of trading were incorrectly entered, causing the transactions to be executed immediately, the people said. Barclays clients weren’t affected financially by the error, and less than $4 million is probably at stake, according to one person, who asked to not be identified because the details haven’t been made public.

Kerrie Cohen, a spokeswoman for London-based Barclays, declined to comment.

The mistake whipsawed companies such as AOL, Caterpillar, Nabors Industries Ltd. and Nasdaq OMX Group Inc. According to Winnetka, Illinois-based Nanex LLC, which tracks trading disruptions, at least 28 stocks were affected, with AOL moving the most: a decline of 11 percent. Within a second, prices largely returned to where they’d been before the error.

After reviewing the situation, stock exchanges canceled some AOL transactions. All other trades were left intact.

http://www.bloomberg.com/news/2014-05-15/barclays-trading-error-is-said-to-have-spurred-u-s-stock-swings.html