SubscribeLinks and Reading for March 29th
March 29, 2011
Some of the more interesting and important items for March 29th :
- Dollar boosted by Fed comments Currencies – MarketWatch – LONDON (MarketWatch) — The dollar remained lower versus most major rivals Tuesday, but trimmed losses after a Federal Reserve official said policy makers may not be able to wait until global crises are resolved to begin withdrawing its ultra-accommodative monetary policy.
- Dying Banks Kept Alive Among Secrets Fed Data Will Reveal – Bloomberg – U.S. regulators closed Chicago- based Park National Bank in October 2009 when it owed $345 million to one of the lowest-cost lenders in town: the Federal Reserve’s discount window. Park National had been a constant customer at the window for more than 18 months before it failed, records show.
- Kan Slams Tepco’s Tsunami Defenses, Offers Assurances Over Radiation Leaks – Bloomberg – Tokyo Electric Power Co.’s sea wall, designed to withstand a 5.5-meter (18-foot) wave, was breached by a surge estimated by the government to be almost three times higher following the magnitude-9 earthquake on March 11. Back-up diesel generators for cooling systems, which might have prevented the nuclear disaster, were positioned in a basement swamped by the wave.
- Fed Presidents Support Completion of Bond-Buying Program – Bloomberg – Two Federal Reserve regional bank presidents voiced support for the completion of the central bank’s $600 billion Treasury securities-purchase program through June, saying it’s too soon to remove stimulus from the economy.
- Disposable income falls as prices jump, data show Economic Report – MarketWatch – The personal consumption expenditure index, which Federal Reserve officials say is a more accurate gauge of inflation than the better-known consumer price index, increased 0.4% on the month, the largest monthly gain since July 2008. Read “Why spending data should hurt, not help, stocks.”
- Financials close lower; banks to talk settlement Financial Stocks – MarketWatch – Shares of U.S. financial firms closed lower on Monday after spending most of the day in positive territory, with NYSE Euronext and some major banks drawing most of the attention.
- Tokyo Electric Finds Plutonium in Soil Near Fukushima Plant – Bloomberg – Tokyo Electric Power Co. found plutonium in soil samples taken near the stricken Fukushima Dai- Ichi nuclear plant a week ago, the company said.
- Fatal Radiation Detected Outside Damaged Japanese Reactor – Bloomberg – Radiation levels that can prove fatal were detected outside reactor buildings at Japan’s Fukushima Dai-Ichi plant for the first time, complicating efforts to contain the worst disaster since Chernobyl in 1986.
The U.S. Dollar – They Keep Selling That Black Sheep
March 28, 2011
We all know that there is generally an inverse correlation with the movement of most commodity prices to the U.S. Dollar. More recently, that correlation has spilled over to the equity markets. In fact, over the past couple of years (the days of easy-money) the correlation between a sagging dollar and a rallying stock market has become much closer.
Of course there is a reason for that. The fact that the easy-money policy has provided for an excessive amount of risk capital to flow into equity markets is just what Mr. Bernanke has wanted. This is the wealth-effect that the Fed discusses.
It is as if the grand plan created a gigantic carry-trade by Read more
Is Copper Topping Out?
March 28, 2011
If the dollar begins to start a move higher, we know that it will eat away at the prices of many commodities, especially metals. The risk on, risk off trade has been highly correlated with copper prices and as such, copper could be due for a correction for many reasons. Some commentary seen recently.
(Note: Horowitz & Company TDI client portfolios are SHORT FCX as of the date of this writing)
From CNBC:
Copper is up 33% over the past year. Insight on whether now is now the time to buy, with Michael Widmer, Bank of America Merrill Lynch Global Research.
Links and Reading for March 28th
March 28, 2011
Some of the more interesting and important items for March 28th :
- London protesters clash with police – World news – Europe – msnbc.com – LONDON — Police say protesters have thrown paint bombs and light bulbs filled with ammonia at officers in London’s center during a demonstration against budget cuts.
- Breach possible at troubled Japanese nuclear plant – Yahoo! Finance – “The situation today at the Fukushima Dai-ichi power plant is still very grave and serious. We must remain vigilant,” a somber Prime Minister Naoto Kan said Friday night. “We are not in a position where we can be optimistic. We must treat every development with the utmost care.”
- Radiation in Water Dumped on Japan’s Damaged Fukushima Plant May Be Rising – Bloomberg – Levels show signs of climbing, Hidehiko Nishiyama, a spokesman at the Nuclear and Industrial Safety Agency, said in Tokyo today. Readings of between 200-300 millisieverts per hour were found in water at the No. 2 reactor, he said, equivalent to the maximum-permitted exposure for workers during the crisis.
TDI Podcast 205: Radiation Facts and Market Perspectives
March 27, 2011
Guests: Jon Markman and Professor Gary Was help to find some answers in a sea of confusion. First we discuss some of the basic elements of the radiation leak in Japan with Professor Was and try to find out what, if any, long term concerns we should have from the information now available. After, we spend some time with our old friend Jon Markman for some high quality perspective on the markets.
Podcast: Play in new window | Download (Duration: 1:11:17 — 38.6MB)
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