Archive for March, 2011

Morning Reading – Tuesday, March 22, 2011

*** The Slope Of Hope: Currency Crossroads ***
*** FT Alphaville: The wrong kind of inflation, the ironic austerity ***
*** FT Alphaville: Japan: Supply chain update ***
*** FT Alphaville: Japan’s supply-chain loss, Europe’s gain? ***
*** FT Alphaville: Why no Canadian, Australian housing busts? ***
*** Wired: Possible Early Warning Sign for Market Crashes ***
*** The Big Picture: Are huge earthquakes linked? ***
*** Bloomberg: Nuclear Plant Contaminates Sea After Damage to Fuel Rods ***
*** Climateer Investing: Ambrose Evans-Pritchard: “Safe nuclear does exist, and China is leading the way with thorium” ***

U.S. Existing Homes Sales Fell 9.6% In February

Sales of existing homes in U.S. fell 9.6% to 4.88 million units SAAR. Consensus was at 5.12 million.

Morning Reading – Monday, March 21, 2011

*** FT Alphaville: Tokyo: A view from the ground, Part II ***
*** London Banker: Solution for Fukushima Cooling Pools ***
*** London Banker: “You can’t build a car with 97% of the parts” ***
*** FT BeyondBRICs: El-Erian (1): world near tipping point? ***
*** FT Alphaville: China’s missing M2 ***
*** FT Alphaville: Watching Japan’s return from Oz ***
*** The Big Picture: Risk On/Risk Off Trade Returns ***
*** Harvey Organ’s Daily: Crisis in Japan Deepens/G7 comes to financial rescue with Japan ***
*** Association for Psychological Science: Are the Wealthiest Countries the Smartest Countries? ***

February Chicago Fed National Activity Index At -0.04

Chicago Fed National Activity Index for February was reported at -0.04 vs. revised January reading of 0.01. Chicago Fed National Activity Index 3-month moving average is at 0.11.

CFNAI is pointing to mild economic growth.

Dry Bulk Weekly – March 21, 2011

Baltic dry index fell 2.0% last week; Capesize Index was down 10.8%; Panamax Index fell 1.8%; Supramax Index rose 2.9%; Handysize Index was up 3.4%.

To repeat: Judging from increase in dry bulk rates and an end of raw materials stockpiling economic activity in China is accelerating after the holidays.

Tanker Weekly – March 21, 2011

Baltic Dirty Tanker Index fell 1.1%; Baltic Clean Tanker Index rose 0.8%.

Markets adapted well to the new setup (ex. Libyan oil and with increased Japanese product demand), risk is on the downside.

Rig Count Weekly – March 21, 2011

Number of crude oil drilling rigs rose for 12; Number of natural gas drilling rigs fell for 7.

U.S. Freight Carloads Weekly – March 18, 2011

U.S. railroads originated 392,164 carloads, up 1.5% compared with the same week in 2010 and down 3.7% compared with 5-year average. Week over week change was -2.9%.

U.S. Natural Gas Weekly – March 18, 2011

Working gas in storage fell 56 Bcf from previous week. The consensus was at 42 Bcf.

Storage level is 3 Bcf higher than same time year ago.

Japanese nuclear disaster could be a game changer for natural gas as LNG cargoes bound for the U.S. could be diverted to Japan. This could clear the oversupply glut.

Daily Reading – Friday, March 18, 2011

*** Zero Hedge: Historical Precedent To Predict The Success Rate Of The G7 Yen Devaluation “Accord” ***
*** Zero Hedge: Fed Confirms First FX Market Intervention In 11 Years As Effects Start To Fizzle ***
*** FT Beyond BRICs: EM fund flows: backing off ***
*** FT Alphaville: Who’s been buying Japan like crazy? ***
*** FT Alphaville: Yen volatility is too much for one bank ***
*** FT Alphaville: Those European stress test details ***
*** FT Alphaville: The usual Portuguese bond gyrations ***
*** The Economist: Miracle, or delayed gratification? ***
*** Bloomberg: Sushi Restaurants Drop Japanese Fish From Menus as Radiation Concerns Grow ***

Libya Declares Immediate Ceasefire

Talking about strange twist of events… Markets not buying the story.

China Raises Bank Reserve Requirement for Third Time in 2011

China raised bank reserve requirement from 19.5% to 20% for large banks. I’m beginning to take kind of bearish stance on China because this sort of measures does not bode well for fixed-asset investment fueled economic growth.

Japan earthquake/tsunami/nuclear disaster nagative effect on Chinese manufacturing is also, in my opinion, widely underestimated.

U.N. Approves “No-Fly Zone” Over Libya

The United Nations Security Council approved a resolution authorizing international military intervention (any measures short of a ground invasion) in Libya.

March Philadelphia FED General Business Conditions Index At 43.4

Philadelphia FED General Business Conditions Index rose to 43.4. Consensus was at 32.0, prior reading was at 35.9.

This is a positive outlier, it is highly unlikely that index can remain at these levels. Manufacturing surveys overestimate implied industrial growth in recent months.

Video Of The Day – Bloomberg TV – Pimco’s El-Erian Interview on Japan Earthquake

Mohamed El-Erian, chief executive officer of Pacific Investment Management Co., discusses the potenial impact of last week’s 9-magnitude earthquake and tsunami in Japan on the U.S. and global economies. El-Erian speaks from Newport Beach, California, with Margaret Brennan on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)

 

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