coolhand's Account Talk

Sort by newest Sort by date
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aq1qSYxB.fP8

Options traders are placing a record number of bearish bets against Chinese stocks as concern deepens that government measures to contain home prices and Europe’s debt crisis will curb earnings.

The open interest, or number of existing contracts, for so- called put options on the iShares FTSE/Xinhua China 25 Index Fund surged 24 percent in the past month to 2.15 million as of yesterday, data compiled by Bloomberg show. A gauge of demand for options that bet on a decline in the exchange traded fund and those profiting from a gain widened to the most since 2006 on May 17, Bloomberg data show.

The ETF, which holds shares of Chinese companies and trades on U.S. bourses, has dropped 14 percent from an April 9 high as Premier Wen Jiabao warned that policy makers will “decisively” rein in home-price gains and the government said the euro’s decline is pressuring exporters. Inflation will rise to near 3 percent this month, China’s economic planning agency predicted, raising concern the central bank will lift interest rates for the first time since 2007.

“The macro risks are obvious -- a slowdown in the West and policy-induced hard landing in China,” said Jeff Coggshall, a London-based hedge fund manager at Tiburon Partners LLP who’s betting on declines in some stocks tied to Chinese consumer demand. “I’m looking for a buy point but we’re not there yet.”
 
http://online.wsj.com/article/SB100...56058.html?mod=WSJ_business_EconomyNewsBucket

Some of the world's largest money managers and central banks have become increasingly skeptical of the euro, presenting a threat to the common currency's prospects.

In an interview with Dow Jones Newswires, John Lipsky, first deputy managing director of the International Monetary Fund, speaks about reactions to the global recession, comparisons between Greece and Japan, and plans for fiscal adjustment in Japan.

So far during the euro's months-long descent, attention has been focused on hedge-fund selling of European assets but central banks and large managers have a much-larger influence on foreign-exchange markets. Even if they don't dump euro assets, a mere pause in their buying could weigh heavily on the currency.

The euro on Wednesday rose to $1.2385, bouncing from $1.2143, its lowest level against the dollar in four years hit during the day, and from $1.2210 late Tuesday in New York. It was only the second gain in seven days against the dollar for Europe's shared currency, which has slumped nearly 15% against the dollar this year.
 
http://www.businessweek.com/magazine/content/10_21/b4179010115834.htm

Michael Feroli, chief U.S. economist for JPMorgan Chase (JPM), remembers the phone calls two years ago from clients "freaking out" about inflation. Federal Reserve Chairman Ben Bernanke had just launched his campaign to prevent the collapse of the financial system. He was pumping liquidity into the economy by making emergency loans to banks and buying mortgage-backed securities by the billions. He was also driving benchmark interest rates almost down to zero. Many investors feared Bernanke would trigger a price surge as consumers and companies borrowed more to spend, spend, spend.

Today, rates are still near zero, and liquidity is near a record high. Yet those client calls about inflation, says Feroli, have "dried up to a trickle." There's even talk of prices heading down.

Feroli and many other economists wonder just when inflation will make enough of a comeback to warrant a rate hike. That's turning out to be a hard call. Forty-seven economists in an Apr. 1-8 Bloomberg survey figured that, on average, rates would rise by Thanksgiving. Feroli and his boss Bruce C. Kasman, JPMorgan's chief economist, don't foresee a rate rise until the second quarter of 2011. Other economists predict a hike even later than that.
 
http://www.politico.com/news/stories/0510/37502.html

Senate Democrats failed to cut off debate on a sweeping Wall Street reform bill Wednesday, as a pair of liberal Democrats stood in the way of Majority Leader Harry Reid’s plans for moving the bill to final passage and trying to force the Republican caucus to go along.

The final vote was 57 to 42, with Democrats Maria Cantwell of Washington and Russ Feingold of Wisconsin voting no. Earlier in the day, Cantwell had said she wanted more time to debate her own amendment and made clear that she wouldn’t go along with Reid’s schedule without it.

The vote is a high-profile defeat for the already-embattled Reid – who failed to hold together his caucus at a crucial moment on one of the highest-priority bills for Democrats and President Barack Obama.
 
DO IT! :nuts:

http://www.politico.com/news/stories/0510/37496.html

Arizona Corporation Commissioner Gary Pierce is threatening to encourage the state’s utilities to cut off energy delivery to Los Angeles if the city does not back down from its boycott over the state’s new immigration law.

“If an economic boycott is truly what you desire, I will be happy to encourage Arizona utilities to renegotiate your power agreements so Los Angeles no longer receives any power from Arizona-based generation,” Pierce, a Republican, wrote Tuesday to Los Angeles Mayor Antonio Villaraigosa, a Democrat.

“I am confident that Arizona’s utilities would be happy to take those electrons off your hands,” he continued. “If, however, you find that the City Council lacks the strength of its convictions to turn off the lights in Los Angeles and boycott Arizona power, please reconsider the wisdom of attempting to harm Arizona’s economy.”
 
Now that's down right FUNNY there!!!:laugh:
So you want to Play, well we can play your little game!!! zits.gif
 
coolhand said:
DO IT! :nuts:

Arizona Corporation Commissioner Gary Pierce is threatening to encourage the state’s utilities to cut off energy delivery to Los Angeles if the city does not back down from its boycott over the state’s new immigration law.

“If an economic boycott is truly what you desire, I will be happy to encourage Arizona utilities to renegotiate your power agreements so Los Angeles no longer receives any power from Arizona-based generation,” Pierce, a Republican, wrote Tuesday to Los Angeles Mayor Antonio Villaraigosa, a Democrat."
Click to expand...


I like it.
 
The funny thing is they are joint owners of the electrical production facility!
http://www.nbclosangeles.com/news/local-beat/Power-Play-Over-Immigration-Law-94251079.html
LADWP Backs City Council
Los Angeles Department of Water and Power general manager Austin Beutner released this statement Wednesday evening:


"I want to make clear that we support the city position regarding the recent law enacted in Arizona and the resolution adopted by the Los Angeles City Council.
"On any given day, we receive 20 to 25 percent of our power from two power plants located in Arizona: Navajo, a coal-fired plant, and Palo Verde, a nuclear plant.
"We are part owner of both power plants, which are generating assets of the department. As such, nothing in the city's resolution is inconsistent with our continuing to receive power from those department-owned assets.
"I might add that, as the city's Job Czar, I certainly would welcome any conventions or meetings that were going to be held in Arizona to come to Los Angeles. We have fantastic facilities and incomparable weather and we'd welcome them to the City of Angels."
​
coolhand said:
DO IT! :nuts:

http://www.politico.com/news/stories/0510/37496.html

Arizona Corporation Commissioner Gary Pierce is threatening to encourage the state’s utilities to cut off energy delivery to Los Angeles if the city does not back down from its boycott over the state’s new immigration law.

“If an economic boycott is truly what you desire, I will be happy to encourage Arizona utilities to renegotiate your power agreements so Los Angeles no longer receives any power from Arizona-based generation,” Pierce, a Republican, wrote Tuesday to Los Angeles Mayor Antonio Villaraigosa, a Democrat.

“I am confident that Arizona’s utilities would be happy to take those electrons off your hands,” he continued. “If, however, you find that the City Council lacks the strength of its convictions to turn off the lights in Los Angeles and boycott Arizona power, please reconsider the wisdom of attempting to harm Arizona’s economy.”
Click to expand...
 
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a3SH3YQ0LCl0

The euro rose, headed for its biggest weekly advance more than eight months against the dollar, on optimism European Union officials meeting today will take further action to halt the region’s debt crisis.

The yen declined against all but one of its major counterparts, paring this week’s surge, after Japanese Finance Minister Naoto Kan said it’s undesirable for currencies to stray from “stable” levels. Australia’s dollar rallied from a 10- month low against the greenback on speculation the central bank is prepared to intervene in foreign-exchange markets.

“European officials are likely to discuss more steps to stave off the crisis,” said Yoh Nihei, a Tokyo-based trading group manager at Tokai Tokyo Securities Co. “It’s positive for the euro.”
 
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aZU.hLX5UrAE

Investors withdrew some $12 billion from U.S. and European equity funds in the week to May 19, the most in almost two years, on concern Europe’s sovereign-debt crisis will slow global growth, EPFR Global said in an e-mail.

“A combination of events has made investors reassess the outlook for the global economy,” said Stephen Halmarick, Sydney-based head of investment-markets research at Colonial First State Global Asset Management, which oversees about $138 billion. “There’s clearly been a major reduction in risk appetite globally and it’s difficult to see the situation stabilizing in the near term.”
 
coolhand said:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aZU.hLX5UrAE

Investors withdrew some $12 billion from U.S. and European equity funds in the week to May 19, the most in almost two years, on concern Europe’s sovereign-debt crisis will slow global growth, EPFR Global said in an e-mail.

“A combination of events has made investors reassess the outlook for the global economy,” said Stephen Halmarick, Sydney-based head of investment-markets research at Colonial First State Global Asset Management, which oversees about $138 billion. “There’s clearly been a major reduction in risk appetite globally and it’s difficult to see the situation stabilizing in the near term.”
Click to expand...


That's good news. :suspicious:
 
http://online.wsj.com/article/SB100...863607445090.html?mod=WSJ_Markets_LEFTTopNews

The dramatic unwinding of a highly leveraged trading strategy embraced by hedge funds contributed to the global market selloff on Thursday.

The strategy, known as the pro-growth trade, was based on a view that global economies would recover strongly and included bets that commodities, high-yielding currencies and stocks would keep rising, while safer investments such as Treasurys would fall.

The Greek debt crisis and efforts by governments in Asia and Australia to rein in growth have undone the trade in recent weeks and the big moves in the currencies and commodities on Thursday were likely driven by investors selling their holdings to limit their losses.

The stock market reacted to the moves in other markets with the Dow Jones Industrial Average falling 376.36 points, or 3.6%, to 10068.01, its worst day since March 2009, just before it hit a 12-year low. The market, which had its lowest close since Feb. 10, is down just over 10% from its recent peak in late April, marking its first correction since the powerful bull market began last March.

"The markets are telling you the growth trade is over," says Michael Novogratz, who oversees macro hedge funds at Fortress Investment Group. In recent days, he says, Fortress has unwound many of its positions that reflected its "pro-growth" mindset, including investments in Asian currencies.
 
You must log in or register to reply here.

Similar threads

tsptalk
  • Article Article
TSP Talk - Stocks bounce Monday after last week's sell off
Replies
0
Views
5K
tsptalk
tsptalk
tsptalk
  • Article Article
TSP Talk - Just what the bulls needed - a boring Fed
Replies
0
Views
94
tsptalk
tsptalk
tsptalk
  • Article Article
TSP Talk - A quiet rally after a loud week
Replies
0
Views
3K
tsptalk
tsptalk
tsptalk
  • Article Article
TSP Talk - More new highs heading into earnings headlines
Replies
0
Views
317
tsptalk
tsptalk
tsptalk
  • Article Article
TSP Talk - Monday takes away Friday's big gains
Replies
0
Views
419
tsptalk
tsptalk
Back
Top