STOCK MARKET WATCH, Thursday 9 March

[ozymandius]

Thursday March 9, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 1047 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1904 DAYS
WHERE'S OSAMA BIN-LADEN? 1604 DAYS
DAYS SINCE ENRON COLLAPSE = 1565
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 3
Other Arrests of Execs = 54


U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON March 8, 2006

Dow... 11,005.74 +25.05 (+0.23%)
Nasdaq... 2,267.46 -0.92 (-0.04%)
S&P 500... 1,278.47 +2.59 (+0.20%)
30-Year Bond 4.72% +0.00 (+0.02%)
10-Yr Bond... 4.73% -0.00 (-0.04%)
Gold future... 544.30 -10.20 (-1.87%)






GOLD, EURO, YEN, Dollars and Loonie


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Chris Puplava

INTEREST RATE FEARS WEIGH ON MARKETS DESPITE FALLING OIL PRICES

The markets were down today in early morning trading on fears of rising interest rates and inflation, and the impact of both on the economy. Higher bond market rates tend to hurt the stock market as stocks struggle to provide similar rates of return with bonds, a competing asset class. Long-term interest rates rising to multi-year highs is clearly bad news for those looking to take out fixed-rate mortgages as well as for homebuilders or people looking to sell their homes.

Supporting fears of further inflation came on Tuesday when the Labor Department released its revised fourth quarter non-farm productivity that stood at -0.5%, which initially was estimated to fall 0.6% after growing at a 4.5% rate in the third quarter. The fourth quarter marked the first decline in U.S. non-farm productivity since the first quarter of 2001, when the nation's last recession began. Another inflationary indicator released in the report was labor costs, which remained tame on a year-over-year (YOY) basis, though rose significantly over last quarter, up 3.3%.

-cut-

The employment data set for release this Friday will shed further light on the inflation situation. If unemployment continues to fall at the same time productivity is falling then we will likely see wage inflation causing more concern for the Fed. Economists polled by MarketWatch are forecasting non-farm payrolls to have risen by 206,000 in February, and the jobless rate is expected to be 4.8%, up from 4.7% in January.

-cut-

In addition to falling energy prices, another positive note to help ease inflation concerns was a possible sign of a cooling economy with the factory orders report released on Monday. Factory orders fell sharply, down 4.5% in January relative to December, with a 9.9% plunge seen in durable goods orders, which in turn reflected a 78% month-to-month downswing in civilian aircraft.

more...

http://www.financialsense.com/Market/wrapup.htm

[ozymandius]

2. Today's Reports

8:30 AM Initial Claims 03/04
Briefing Forecast 285K
Market Expects 295K
Prior 294K

8:30 AM Trade Balance Jan
Briefing Forecast -$67.0B
Market Expects -$66.5B
Prior -$65.7

[UpInArms]

29. 8:30 Reports bring ugly numbers to the morning

8:30 AM ET 3/9/06 U.S. JAN. TRADE GAP WITH CHINA $17.9 BLN

8:30 AM ET 3/9/06 U.S. 4-WEEK AVG. INITIAL JOBLESS CLAIMS UP 6,250 TO 293,500

8:30 AM ET 3/9/06 U.S. CONTINUING JOBLESS CLAIMS RISE TO 2.51 MLN

8:30 AM ET 3/9/06 U.S. DEC. TRADE GAP REV $65.1 BLN VS $65.7 PREV EST

8:30 AM ET 3/9/06 U.S. INITIAL JOBLESS CLAIMS RISE 8,000 TO 303,000

8:30 AM ET 3/9/06 U.S. JAN. TRADE GAP ABOVE CONSENSUS OF $66.4 BLN

8:30 AM ET 3/9/06 U.S. JAN. TRADE GAP WIDENS 5.3% TO RECORD $68.5 BLN

[UpInArms]

30. U.S. initial jobless claims rise 8,000 to 303,000 (last wk rev'd up 1K)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B4AB91C51%2DC0F5%2D4627%2D8CFE%2DE3EF77824CA4%7D&dateid=38785%2E354309213%2D863462212&siteid=mktw&dist=newsfinder

WASHINGTON (MarketWatch) -- Initial applications for U.S. state unemployment benefits rose by 8,000 to 303,000 in the week ending March 4, the Labor Department said Thursday. The four-week average of new claims rose by 6,250 to 293,500. Meanwhile, the number of workers collecting state unemployment benefits rose by 29,000 to 2.51 million in the week ended Feb. 25. The four-week average of continuing claims dropped by 11,500 to 2.49 million.

[UpInArms]

34. U.S. jobless claims rise to 303,000

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB0D1B293%2D6B5E%2D4A4B%2DB7D2%2D2FD0C550AACF%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- Initial applications for U.S. state unemployment benefits unexpectedly rose by 8,000 to 303,000 in the week ending March 4, the Labor Department said Thursday.

Such claims had been below 300,000 for seven weeks in a row for the first time since the summer of 2000.

The number of people collecting unemployment benefits rose by 29,000 to 2.50 million in the week ending Feb. 25. It's up from the five-year revised low of 2.47 million for the prior week.

The four-week average of new claims rose by 6,250 to 293,500. The four-week average smoothes out the data to reduce the impact of one-time events such as storms or holidays.

Economists expected a slight drop in initial claims to about 293,000, according to the MarketWatch survey. See Economic Calendar.

...more...

Another "surprise"! :sarcasm:

And the spinners run to the bank to cash their checks :grr:

[AnneD]

67. Morning Marketeers,

:donut: I have a question that is tangentially related to employment and I hope the experts here can give me an answer.

Productvity takes a tumble-wages increase at the fastest pace in a year.
<snip>

Americans' productivity, a key determinant of rising living standards, dipped at an annual rate of 0.5 percent in the October-December quarter, while wages rose at a 3.3 percent pace, the fastest gain in a year, the Labor Department reported Tuesday.

<snip>
The 0.5 percent drop in productivity, the amount of output per hour of work, was the first quarterly decline since a 0.6 percent fall in the first quarter of 2001, when the country slipped into a recession.

<snip>
Brian Bethune, chief U.S. economist for forecasting firm Global Insight, said he expected productivity to rebound to a rate of 3.8 percent in the January-March period, reflecting stronger economic growth after the shocks of the fourth quarter.

<snip>
The Federal Reserve is closely watching the performance of wages to make sure that rising wage pressures do not translate into higher inflation overall.

Rising productivity is the key factor behind increases in the standard of living because it allows employers to pay workers more because of the increased output without having to raise the price of their products.


http://www.chron.com/CDA/archives/archive.mpl?id=2006_4075215

The numbers may be sayinging it, but my pocketbook ain't feeling it. I have been getting dinky raises (became a Nurse in 91) that barely keep up with inflation at my job but the deduction for ,say, insurance totally wipes out the pay raise. Then what is left goes to living expenses (and we know they have NOT gone down over the last 15 years). Since 1991 my per hour has only gone up $15 dollars per hour (from 20 to 35 per hour for a Nurse-no benies). In NM, the wage was $15 now up to $25 per hour no benes. So now the Feds are telling me that any wage increase I get is a threat to the economy? That only a nation wide productivity increase (in an ever increasing number of unemployed) will be needed BEFORE my wages can increase. How do they figure this crap? I don't expect to get obscenely wealthy being a Nurse, but I have not been able to swing affordable housing on just my salary and being a single mom (I am at a peak now at almost $50K without doing extra work). With Hubby's salary ($24K)and some OT on my part, we mught be able to afford one soon (as debts are reduced). While this is not poor, I don't think it's exactly mid middle class either, and we are both educated professionals.

Is this a Feds numbers racket to keep us poor or what. Just how can the justify trying to keep wages down while we are squeezed so hard????

Happy hunting and watch out for the bears. I am posting so late cause the clinic is like a trauma center today.....

[EuroObserver]

120. No unions, AnneD? No collective defense. No justification required.

Sorry, just have time for this quick answer (from a European, I guess, basically social democrat).

[UpInArms]

31. U.S. trade gap in Jan.widens to record $68.5 bln

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B8B9DA7EF%2DF820%2D4239%2DA7E0%2DEB55FA10D881%7D&dateid=38785%2E3543304514%2D863462218&siteid=mktw&dist=newsfinder

WASHINGTON (MarketWatch) -- The U.S. trade deficit widened by 5.3% in January to a record $68.5 billion, the Commerce Department said Thursday. The trade deficit was above the consensus forecast of Wall Street economists of a deficit of $66.4 billion. Imports rose faster than exports in January. The U.S. trade deficit with China widened to $17.9 billion in January compared with $15.3 billion in the same month last year.

[UpInArms]

33. U.S. trade gap widens again in Jan. Deficit widens to record $68.5 billio

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BFBDC317E%2DE19A%2D4F75%2D8D57%2D17B72F0F8BFD%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - The U.S. trade deficit continued to expand in January after setting a new annual record in 2005, a government report showed Thursday.

The nation's trade gap widened 5.3% to a new monthly record of $68.5 billion, the Commerce Department said. The previous record was $67.84 billion in October. Read full government report.

Both exports and imports hit new records in January, although imports outpaced goods shipped overseas.

Analysts surveyed by MarketWatch had expected the deficit to increase to $66.4 billion. See Economic Calendar.

Economists say global economic fundamentals are driving the deficit to new heights.

"The trade deficit seems to only get bigger and never recede," said Robert Brusca, chief economist at FAO Economics.

...more...

Oh what a surprise! :sarcasm:

Who pays these buffoons?

[UpInArms]

62. Natural-gas supplies down 85 bln cubic feet: Energy Dept

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B30FD3230%2DFB26%2D4C1C%2D8964%2D9AB575275033%7D&dateid=38785%2E4407212963%2D863480822&siteid=mktw&dist=newsfinder

SAN FRANCISCO (MarketWatch) -- U.S. natural-gas stocks fell by 85 billion cubic feet for the week ended March 3, the Energy Department reported Thursday. Analysts at Global Insight expected a decline of 108 billion. Total stocks now stand at 1.887 trillion cubic feet, up 393 billion cubic feet from the year-ago level, and 664 billion cubic feet above the five-year average, the government data said. April natural gas fell by 12.8 cents to $6.52 per million British thermal units.

[ozymandius]

3. Oil Prices Hold Steady at $60 a Barrel

LONDON - Crude oil prices held above $60 a barrel in European trading Thursday after
OPEC's president said the group will keep output unchanged and figures showed a sharp rise in U.S. oil stocks last week.

Light, sweet crude for April delivery on the New York Mercantile Exchange rose 25 cents to $60.27 a barrel in electronic trading in Europe. The contract on Wednesday fell $1.56 to settle at $60.02 a barrel.

-cut-

Edmund Daukoru, Nigeria's oil minister and president of the Organization of Petroleum Exporting Countries, said Wednesday output would remain unchanged but that the cartel would monitor it closely between now and its next meeting in Venezuela on June 1.

Meanwhile, the U.S. Department of Energy's Energy Information Administration on Wednesday said U.S. crude stocks rose by 6.8 million barrels in the week ending March 3 to 335.1 million barrels — the highest level since 1999.

more...

[ozymandius]

5. Exxon Mobil plans over 50 major new oil, gas projects

NEW YORK — Exxon Mobil Corp. plans to start up more than 50 major oil and gas producing projects around the globe over the next four years and bring on as many new barrels as a major OPEC producer, company executives said today.

At a time when the oil industry is coming under increasing fire from critics angered by high energy costs, the world's largest publicly traded oil company plans to spend about $15 billion annually through the end of the decade to bring new oil and gas reserves onstream.

"Our industry remains massive and very much a long-term, capital-intensive business," Rex Tillerson, Exxon's new chief executive officer said today in his first presentation to Wall Street analysts.

more...

http://www.chron.com/disp/story.mpl/business/3709780.html

[UpInArms]

25. Gulf drilling bill advances despite objections from Florida senator

http://www.dispatch.com/business-story.php?story=dispatch/2006/03/09/20060309-C4-00.html

WASHINGTON — Legislation that would open 3.6 million acres of the central Gulf of Mexico to oil and gas drilling advanced in the Senate yesterday, despite strong objections from a Florida Republican senator who said it fails to protect his state’s coast from environmental damage.

The proposal, which was approved by the Energy and Natural Resources Committee by a 16-5 vote, calls on the Interior Department to begin selling oil and gas leases in the waters known as Area 181 within a year. Actual production would be expected to begin in about five years.

No drilling would be allowed within 100 miles of Florida’s coast.

"The risk to Florida is so minimal compared to the benefits," said Sen. Pete Domenici, RN.M., the panel’s chairman and the bill’s co-sponsor.

The region, which first was singled out for energy development in 1997 by the Clinton administration, is believed to contain more than 6 trillion cubic feet of natural gas, enough to heat 6 million homes for 15 years, and nearly 1 billion barrels of oil, according to the Interior Department.

...more...

I wonder if this is where Exxon Mobil is planning to drill?

And, isn't it nice that is one is the Clenis' fault :eyes:

[EuroObserver]

49. French Atlantic islands bid for oil-rich sea

By Bill Law, BBC Radio 4's Crossing Continents

The French islands of St Pierre and Miquelon in the North Atlantic are fighting for a slice of oil-rich ocean floor they believe was taken from them, but their struggle could land France in rough diplomatic waters.
...

Lying just off the south-eastern coast of the Canadian province of Newfoundland and Labrador, St Pierre and Miquelon are tiny islands that represent a past most people have forgotten and a present with a very uncertain future. The original French settlers were Basques, Bretons and Normans who arrived here in the 1600s. For centuries they fished the Grand Banks where the supply of cod was seemingly inexhaustible. All that came to an abrupt end in 1992, when the Canadian Government, appalled at the destruction of cod stocks by foreign trawlers, banned all cod fishing.

That same year - a year of infamy as far as the islanders are concerned - the Canadians hammered home their intention to protect and exploit the coastal waters. At an international tribunal in New York, sitting across the table from a French delegation, they successfully laid claim to a 200 mile exclusive economic zone. St Pierre and Miquelon were left with their own 200 mile zone, but bizarrely it is just 10 miles wide, a long thin finger of ocean running due south of the islands and leading nowhere. It was quickly dubbed "the baguette" by bitter islanders.

The ocean floor off Newfoundland and St Pierre and Miquelon, part of the continental shelf extending from Canada, is called the sub-Laurentian basin. It is rich in hydrocarbons, with estimates of some six trillion cubic feet of gas and six to seven billion barrels of oil. As new technologies come on stream and instability increases in other oil-producing regions of the world, the Sub-Laurentian basin is becoming an increasingly important energy source.
...

Later this spring, a fourth offshore well will go into production in Canadian controlled waters. The once have-not province of Newfoundland has in the past few years begun to emerge from poverty into a potential that is rich in oil and gas. All the islanders can do is sit and watch - unless a bold initiative by St Pierre and Miquelon to take control of a piece of the continental shelf sitting outside the 200-mile zone and disconnected to the baguette succeeds. Fittingly, it is called the leapfrog. There is no precedent for it.

...more on this nicely quirky (but surely economically significant) story...

[4dsc]

122. Understand depletion of oil resources

It doesn't matter how many major(whatever that means) oil and gas project they bring on line because it will not make up for the depletion rates of current oil fields..

Andrew Gould, CEO of the giant oil services firm Schlumberger, for instance, recently explained the global decline rate may be far higher than what Cheney predicted seven years ago:

An accurate average decline rate is hard to estimate, but an overall figure of 8% is not an unreasonable assumption.

An 8% yearly decline would cut global oil production by a whopping 50% in under nine years. If a 5% cut in production caused prices to triple in the 1970s, what do you think a 50% cut is going to do?

[UpInArms]

55. April Crude @ $60.40 bbl - April NatGas @ $6.61 mln btus

10:12 AM ET 3/9/06 APRIL CRUDE GAINS 38C TO TRADE AT $60.40/BRL IN EARLY TRADE

10:12 AM ET 3/9/06 APRIL NATURAL GAS FALLS 3.8C TO $6.61/MLN BTUS AHEAD OF DATA

[UpInArms]

76. April Crude @ $60.40 bbl - April NatGas $6.66 mln btus

12:16 PM ET 3/9/06 APRIL NATURAL GAS UP 1.2C AT $6.66/MLN BTU AFTER $6.48 LOW

12:16 PM ET 3/9/06 APRIL CRUDE RISES 38C TO $60.40/BRL IN NY

[UpInArms]

86. April Crude @ $60.80 bbl

1:09 PM ET 3/9/06 APRIL CRUDE UP 78C, OR 1.3%, AT $60.80/BRL

[UpInArms]

105. April Crude closes @ $60.47 bbl - April NatGas @ $6.601 mln btus

2:52 PM ET 3/9/06 APRIL CRUDE CLOSES AT $60.47/BRL, UP 45C, OR 0.8%

2:52 PM ET 3/9/06 APRIL NATURAL GAS FALLS 4.7C TO CLOSE AT $6.601/MLN BTUS

[EuroObserver]

4. BoJ changes policy as predicted

BOJ ends unique super-loose monetary policy
TOKYO, March 9 (Reuters) - Japan's central bank scrapped its super-loose monetary policy on Thursday, but in a nod to concerns about fallout for world markets and the domestic economy, said it would keep short-term interest rates around zero for now.

The decision represents a first step towards an eventual interest rate rise in a country where rates have been virtually zero for years, and reflects the central bank's confidence that a seven-year battle against deflation has been won.

With the U.S. Federal Reserve and the European Central Bank already raising rates, the shift by the BOJ also signals that an era of cheap money is ending worldwide, boosting the risk of volatility in global financial markets. ...more...

Gist of decisions made at BOJ policy-setting meeting
(Kyodo) _ The following is the gist of decisions made by the Bank of Japan at its two-day policy-setting meeting that ended Thursday.

The BOJ:

-- decides to end the quantitative monetary easing policy and return to a traditional policy targeting interest rates.

-- decides to introduce a new framework for the conduct of monetary policy.

-- considers a range of zero to 2 percent as the appropriate rate of year-on-year change in the consumer price index.

-- effectively maintains the zero interest rate policy.

-- decides to continue to buy outright 1.2 trillion yen worth of long-term government bonds a month.

--------

BOJ statement issued after policy-setting meeting
(Kyodo) _ The following is the statement the Bank of Japan released Thursday after deciding to end its quantitative easing policy introduced in 2001.

The Bank of Japan Law stipulates the principle of monetary policy as "contributing to the sound development of the national economy" "through the pursuit of price stability." Based on this principle, the bank is pursuing an appropriate course of monetary policy. At the Monetary Policy Meeting held today, the bank decided to introduce a new framework for the conduct of monetary policy, as well as to review its thinking on price stability. ...full statement here...

BOJ statement on changes in market operations guideline
(Kyodo) _ The following is the statement released Thursday by the Bank of Japan on the changes in its guideline for money market operations.

Change in the Guideline for Money Market Operations

At the Monetary Policy Meeting held today, the Bank of Japan decided to change the operating target of money market operations from the outstanding balance of current accounts at the bank to the uncollateralized overnight call rate, and to set the following guideline for money market operations for the inter-meeting period.

The Bank of Japan will encourage the uncollateralized overnight call rate to remain at effectively zero percent.

Measures concerning Money Market Operations

The outstanding balance of current accounts at the Bank of Japan will be reduced towards a level in line with required reserves. Given that financial institutions have managed liquidity against the backdrop of large amounts of current account balances and extensive funds-supplying operations by the bank for a prolonged period since the adoption of the quantitative easing policy, the reduction in current account balance is expected to be carried out over a period of a few months, taking full account of conditions in the short-term money market. ...full statement here...

Quantitative what? Japanese people glaze over central bank move (Reuters story on reactions from ordinary Japanese people: eg. " Many people shared the sentiments of 61-year-old housewife Tsuruyo Tsuruoka, who said she hadn't felt that prices were lower in a way that counted. "I don't care about the BOJ decision. I don't have any money," she added.")

[EuroObserver]

7. BOJ keeps upbeat economic assessment in March report

(Kyodo) _ The Bank of Japan left its upbeat assessment of the country's economic situation unchanged for the third straight month in its monthly report released Thursday, citing the expansion of exports, corporate profits and household spending.

"Japan's economy continues to recover steadily," the central bank said in the March economic report, released immediately after the BOJ announced a departure from its five-year-old super-easy monetary policy. ...more...

[EuroObserver]

8. ANALYSIS: BOJ eyes early rate hikes, gov't to add more pressure

(Kyodo) _ There had been heated debate in Japan about whether the Bank of Japan should scrap its unorthodox super-loose monetary policy as it did Thursday, but the policy shift was more than just a simple goal for the BOJ.

The latest action marks the beginning of the central bank's efforts to revive a monetary environment in which interest rates are set by the markets.

The policy change, which came despite government pressure on the BOJ not to make the shift, demonstrates the central bank's strong willingness to raise short-term interest rates by the end of the year to stem a risk of another asset-inflated bubble in Japan.

"For the BOJ, ending the quantitative easing policy is only the first step toward terminating the zero interest rate policy," said Seiji Adachi, a senior economist at Deutsche Securities Ltd.

From now on, the BOJ will explore the timing of the first interest rate hike, Adachi said, adding the central bank will try to avoid any clear-cut commitments on maintaining the zero interest rate policy and use ambiguous messages in order to preserve flexibility and mobility in monetary policy. ...more...

[EuroObserver]

9. JGBs yields ease despite end of quantitative easing

TOKYO, March 9 (Reuters) - Japanese government bond yields eased a touch on Thursday even though the Bank of Japan ended its five-year, super-easy monetary policy, as investors expect interest rates to remain near zero for some time to come.
...

The yield on the benchmark 10-year cash JGB was unchanged at 1.610 percent <0#JPTSY=JBTC>, down a basis point from 1.620 percent before the announcement.

The benchmark June futures <0#2JGB:> contract ended the afternoon session down 0.05 point at 135.04, after initially rising to 135.24 on the announcement. The March contract had climbed to the day's high of 136.42 earlier in the day before rolling over before the end of the morning session.

The two-year yield was down a basis point at 0.470 percent, slipping 1.5 basis points after the BOJ decision, while the five-year yield was down half a basis point at 1.035 percent. It was trading at 1.040 percent before the announcement.

December euroyen futures <0#JEY:> were up 0.020 at 99.455, pricing in an overnight call rate of about 0.5 percent by the end of the year. ...more...

[EuroObserver]

10. Yen above 2-wk low vs dlr in Europe after BOJ move

LONDON, March 9 (Reuters) - The yen came off an earlier two-week low against the dollar at the start of European trade to hold steady on Thursday after the Bank of Japan ended its five-year-old ultra-easy monetary policy.
...

"We had a knee-jerk reaction to 118.30 as the market focused on the phrase saying that interest rates will be kept low," said Carsten Fritsch, currency strategist at Commerzbank in Frankfurt.

"We still need to figure out what it means for the yen but I won't be surprised to see the yen going higher later. Today's decision means the end of zero interest rate policy is coming closer. Less liquidity is available for yen carry trades and that should be positive for the yen."

By 0730 GMT the dollar stood at 117.83 yen <JPY=>, near late New York levels on Wednesday, having hit a two-week high of 118.31 earlier in Asian trading.

The euro was up 0.2 percent at 140.77 yen <EURJPY=>. ...more...

[EuroObserver]

11. Japanese shares cheered by end to BoJ uncertainty

TOKYO (AFP) - Japanese share prices ended sharply higher as investors welcomed the central bank's pledge to keep interest rates low for some time while scrapping its current policy as expected, dealers said. They said the market had also been heartened by the Bank of Japan's decision to introduce a clear inflation goal.

The Tokyo Stock Exchange's benchmark Nikkei-225 index jumped 409.42 points or 2.62 percent to 16,036.91. The broader TOPIX index of all first-section shares rose 35.43 points or 2.21 percent to 1,641.01.

The stock market welcomed the end of uncertainty over monetary policy and the central bank's decision to give clear guidance on its future intentions. ...more...

BOJ's policy shift decision gives boost to Tokyo stocks
... The Tokyo stock market got off to a firm start and headed sharply higher in the morning, aided by bargain-hunting following recent declines and buying linked to fresh domestic investment trusts. After the benchmark Nikkei briefly crossed the 16,000 line for the first time in a week in the morning, some of the early gains were trimmed due to a lack of follow-through buying. But Tokyo stocks regained upward momentum in the afternoon on the heels of the news that the BOJ Policy Board decided on the monetary policy shift at the central bank's two-day policy-setting meeting through Thursday....
... "The market had already factored it in. Actually, after the big event came to pass, it became easy for investors to buy," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Securities Co. ...more...

Nikkei closes up after BOJ ends ultra-loose policy
... Investors were relieved to see that the BOJ will keep short-term interest rates around zero for now and will maintain its monthly outright buying of long-term government bonds at 1.2 trillion yen to keep long-term interest rates low....
..."The event is over and the market will enter an upward trend," said Kenichi Azuma, equity strategist at Cosmo Securities Co Ltd, adding that a number of investment trust funds are expected to be launched toward the end of this month, aiding the market....
... Trade volume rose with 1.82 billion shares changing hands, the highest in a week. Advancers swept past decliners 1,576 to 94. ...more...

[ozymandius]

12. I wonder what this means in terms of assuming U.S. debt?

Japan is the largest holder of T-notes. Behind them are Great Britain and China.

One can assume that this policy change will impact the dollar. How, too, I wonder.

The psychological affect of these decisions is boggling.

[EuroObserver]

18. Requires observing closely n/t

[EuroObserver]

6. Europe bourses fully rebound on opening

Swiss SMI opens up 0.58% at 7877.06 in Zurich 09:03:24 CET
Xetra Dax 30 opens up 1% at 5,731.1 in Frankfurt 09:04 CET
CAC 40 opens up 0.8% at 5,009.1 in Paris 09:02 CET
FTSE 100 opens up 0.7% at 5,851.7 in London 08:02 GMT
FTSE Eurofirst 300 opens up 0.7% at 1,341.9 in London 08:18 GMT
DJ EURO STOXX50 up 0.94% at 3,763.01 in Frankfurt 09:28 CET

European shares open higher on Asia gain, earnings
LONDON, March 9 (Reuters) - European shares opened higher on Thursday following strong gains in Asia after the Bank of Japan ended weeks of uncertainty by scrapping its ultra-loose monetary policy.

France's Carrefour (CARR.PA: Quote, Profile, Research) led blue chips higher, gaining 2.4 percent after unveiling a new growth plan to deal with its home market and 2005 earnings slightly above analysts' average forecasts. Mining shares such as Rio Tinto (RIO.L: Quote, Profile, Research) and Anglo American (AAL.L: Quote, Profile, Research) were also up, reversing heavy losses in the past two days.

But French utility Suez (LYOE.PA: Quote, Profile, Research), which plans to merge with Gaz de France (GAZ.PA: Quote, Profile, Research), eased 0.9 percent despite posting forecast-beating 2005 profits.... Merger talk was once again a big focus as German utility E.ON (EONG.DE: Quote, Profile, Research) which is bidding for Spain's Endesa (ELE.MC: Quote, Profile, Research) holds a news conference and steel maker Mittal (IPSA.AS: Quote, Profile, Research), which is bidding for Arcelor (CELR.PA: Quote, Profile, Research) holds an investor day.
...

Apart from the BoJ decision, the economic news of the day will be the Bank of England's interest rate decision at 1200 GMT and UK January industrial production at 0930 GMT.

Crude oil prices <CLc1> hovered around $60 a barrel.

"Not too much should be happening ahead of Friday's labour market report in the USA," said Heino Ruland, head of research at Frankfurt's Steubing brokerage, in a note. ...more...

[EuroObserver]

14. Bank of England expected to keep rates steady

Thu Mar 9, 2006 8:08 AM GMT LONDON (Reuters) - The Bank of England looks set to keep borrowing costs on hold for the seventh month running later on Thursday and many economists are no longer so sure British interest rates will fall again this year. All 40 analysts polled by Reuters last week predicted the central bank's Monetary Policy Committee would keep rates at 4.5 percent and many expected a quarter-point cut in May.

News since then that the Halifax house price index jumped 1.4 percent last month and the service sector expanded at its strongest pace in nearly two years has raised doubts about whether the economy really needs another monetary boost.

The global economy is on the mend too. The European Central Bank lifted borrowing costs last week and even the Bank of Japan has ended its five years of super-loose monetary policy. "We would readily acknowledge that, at this stage, neither the dataflow or the commentary from MPC members themselves is friendly to the notion that rates are set to fall in May," said Malcolm Barr, economist at JP Morgan Chase.

The BoE's latest forecasts certainly suggested the central bank saw no urgent need to change policy right now. It predicted growth picking up close to its long-run average and inflation sticking close to the 2.0 percent target.
...

MPC member Stephen Nickell, however, has not signed up completely to those benign forecasts. He thinks growth will disappoint and voted unsuccessfully for a rate cut for three months running.
...

But economists said the economy could still surprise on the downside. Household spending, for instance, recovered at the end of last year but consumers were still being buffeted by soaring household bills. "It would not take much in the current dataflow -- a weak industrial production report, confirmation of weakness in February retail sales to bring the possibility of an easing back on the agenda," said JP Morgan's Barr. ...more...

[EuroObserver]

39. BoE holds interest rates at 4.5 pct

Thu Mar 9, 2006 12:21 PM GMT LONDON (Reuters) - The Bank of England kept interest rates at 4.5 percent for the seventh month running on Thursday and expectations of a cut in borrowing costs this year are waning. ...more...

ANALYSTS' COMMENTS:

DAVID BROWN, CHIEF EUROPEAN ECONOMIST, BEAR STEARNS

"It should be no surprise to the markets that the Bank of England has kept rates steady in March. It looks as if governor King has got a vice-like grip on UK rate policy for the time being."

"There is still a hope for the short sterling futures strip that another rate cut could eventually surface. There is a definite downward tendency to UK growth and inflation risks ahead. Unfortunately if a cut is not in place by May, the window of opportunity could snap shut quite quickly as Nickell departs from the MPC."

ALAN CLARKE, ECONOMIST, BNP PARIBAS

"The focus will now move towards the minutes and whether arch dove Steven Nickell continues to vote against the majority for a 4th consecutive meeting.

"With inflation close to target and likely to move higher, growth close to potential -- and also likely to improve further, we expect the mood on the MPC to continue to evolve -- culminating in an interest rate hike by August."

...more analysts' comments...

[EuroObserver]

74. Eurozone bond yields hit one-year high

(FT) Eurozone government bond yields rose to their highest levels in nearly one year Thursday as investors priced in furhter interest rate hikes from the European Central Bank. ... Eurozone bond yields edged higher after the ECB said in its monthly bulletin it would continue to monitor inflation risks closely. It added that eurozone rates remained very low despite a 25bp increase to 2.5 per cent last week. “The ECB has indicated a willingness to tighten more than the market had previously anticipated,” said Sean Shepley, fixed income strategist at Credit Suisse, in a note to clients. The yield on the benchmark 10-year Bund rose 2 basis points to 3.638 per cent, its highest since April 2005. The two-year Schatz yield jumped 8bp to 3.120 per cent. In the UK, Gilt yields were little changed after the Bank of England left interest rates unchanged at 4.5 per cent. The decision, which was widely expected by investors, left 10-year yield up 2bp at 4.307 per cent and two-year Gilt yields at 4.40 per cent, up 2bp on the day. ...little more...

[EuroObserver]

78. Bourses closed firmly positive

Swiss SMI closed up +0.37% at 7,860.68
CAC 40 closed up +0.77% at 5,007.84
Xetra DAX closed up +1.04% at 5,732.22
FTSE-100 closed up +0.74% at 5,855.90
FTSE EUROTOP closed up +0.70% at 2,865.27
DJ EURO STOXX50 closed up +0.79% at 3,757.64

[EuroObserver]

92. Some blurb:

http://today.reuters.co.uk/Investing/MarketReportArticle.aspx?type=eurMktRpt&storyID=2006-03-09T181134Z_01_L09168879_RTRIDST_0_MARKETS-EUROPE-STOCKS-UPDATE-4.XML

The German drugmaker Schering was the top gainer on the day, up 6 percent on market talk that it could become a takeover target. The shares closed at 65.86 euros after earlier touching 67.23 euros, the highest point since May 2002.

AstraZeneca (AZN.L: Quote, Profile, Research) shares rose more than 4 percent as dealers pointed to fresh talk that Swiss-based Novartis (NOVN.VX: Quote, Profile, Research) was mulling a 4,000 pence a share offer for Europe's third-biggest drugmaker.

"It just appears that virtually every company is in play at the moment," said Denham from Capital Spreads. "There is always someone who thinks that they can run a company better or who thinks the integration would be cost effective with their own company," he added. "I lose count of the number of companies that have had a mention in the last six months of being a target."

Another notable gainer in the pharmaceutical sector was GlaxoSmithKline (GSK.L: Quote, Profile, Research), which rose 1.5 percent after Deutsche Bank upgraded the stock to "buy" from "hold".

Deutsche Bank said it saw greater momentum for Glaxo in the coming quarter given potential news flow on its asthma, cancer and sepsis drugs.

Adding to the upbeat tone in the sector, shares in Irish drugmaker Elan (ELN.L: Quote, Profile, Research) (ELN.I: Quote, Profile, Research) rocketed up 14 percent after the Food and Drug Administration recommended the return of its multiple sclerosis drug, Tysabri.

Car makers were also up on the day, led by a 3 percent gain in BMW, the world's largest premium carmaker. BMW posted a better-than-expected 8.3 percent decline in 2005 pretax profit. "BMW reported a positive surprise to fourth quarter profit numbers today along with a proposal for a 3 percent increase in the dividend and notice that the board is to seek authorisation for a 10 percent share buyback," said Morgan Stanley analyst Adam Jonas in a research note. "The positive earnings surprise may spur a modest upward move to forward year estimates," he said.

DaimlerChrysler (DCXGn.DE: Quote, Profile, Research) was also up nearly 3 percent, while France's Renault (RENA.PA: Quote, Profile, Research) gained 1 percent.

The French retailer Carrefour (CARR.PA: Quote, Profile, Research) gained 5 percent after it unveiled a new growth plan to deal with its home market and reported 2005 earnings slightly above analysts' forecasts.

On the downside, shares in UK airports operator BAA (BAA.L: Quote, Profile, Research) fell 6.7 percent as talk spread through the market that Spanish construction group Ferrovial (FER.MC: Quote, Profile, Research) is not to make a bid as had been expected.

In other merger news, the Italian utility Enel (ENEI.MI: Quote, Profile, Research) prepared a multi-billion-euro bid for rival Suez (LYOE.PA: Quote, Profile, Research), and the potential French takeover target said its board would study any offer if one came along. Suez shares fell 0.7 percent.

Lagadere (LAGA.PA: Quote, Profile, Research), the world's biggest publisher of consumer magazines, fell more than 4 percent after the French firm gave a disappointing outlook for 2006 and several brokers downgraded the company.

British retailer Tesco (TSCO.L: Quote, Profile, Research) dropped nearly 1 percent on news of a possible full UK competition probe.

German utility E.ON (EONG.DE: Quote, Profile, Research), which is bidding for Spain's Endesa (ELE.MC: Quote, Profile, Research), fell 1 percent as investors fretted about its 2006 profit outlook.

[EuroObserver]

13. U.S. Treasuries barely budge after BOJ decision

TOKYO, March 9 (Reuters) - U.S. Treasuries barely budged in Asia on Thursday as investors shrugged off the Bank of Japan's decision to end its ultra-easy policy and awaited weekly U.S. jobless data and a 10-year debt auction later in the day. ...more...

[ozymandius]

17. Oh to be a fly on the wall at Sec. Snowjob's office... (n/t)

[UpInArms]

40. US Treasuries trim losses on jobless claims rise

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-09T134644Z_01_NYG000140_RTRIDST_0_MARKETS-BONDS-CLAIMS-URGENT.XML

NEW YORK, March 9 (Reuters) - U.S. Treasury debt prices trimmed early losses on Thursday after weekly first-time jobless claims came in higher than expected, quelling some concerns about wage-related inflation worthy of the Federal Reserve's attention.

Weekly jobless claims rose to 303,000 in the week ended March 4, above both economists' expectations of 290,000 and the prior week's 295,000 result.

Benchmark 10-year notes <US10YT=RR> cut their early losses in half and were trading 2/32 lower in price for a yield of 4.742 percent compared with 4.732 percent on Wednesday. Two-year notes <US2YT=RR> were about steady for a yield of 4.729 percent.

[UpInArms]

44. Treasurys lower ahead of 10-year notes auction

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BF1D5FE1A%2DB542%2D43CA%2DBBC5%2D8065378C449B%7D&dateid=38785%2E3789567824%2D863467340&siteid=mktw&dist=newsfinder

NEW YORK (MarketWatch) - Treasury prices were under pressure early Thursday, sending yields higher, ahead of an afternoon auction of $8 billion in new 10-year notes. The auction will be carefully monitored for indications of whether foreign central banks remain willing to fund U.S. debt. The benchmark 10-year note last was off 6/32 at 98-1/32 with a yield ($TNX 47.44, +0.10, +0.2% ) of 4.750%.

[UpInArms]

58. Printing Press Alert: Fed buys coupons (+ issues Repos)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-09T154049Z_01_N09176418_RTRIDST_0_MARKETS-FED-OPERATIONS-URGENT.XML

NEW YORK, March 9 (Reuters) - The Federal Reserve said on Thursday that it was buying coupons, adding permanent reserves to the banking system.

The Fed said it was buying all coupons with a maturity call date range from October 15, 2009 to August 15, 2010.

All callables were excluded as well as one other issue.

Earlier, the Fed added temporary reserves through 14-day and overnight system repurchase agreements.

The benchmark fed funds rate last traded at 4.50 percent, at the Fed's target for the overnight lending rate on loans between banks.

Further details of the operations are available at: http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[UpInArms]

64. U.S. Treasury to sell $40 bln bills on Monday

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-09T160156Z_01_WBT004939_RTRIDST_0_ECONOMY-BILLS-URGENT-T.XML

WASHINGTON, March 9 (Reuters) - The U.S. Treasury Department said on Thursday it will sell $21 billion of three-month bills and $19 billion of six-month bills on Monday, March 13.

The bills will be issued on Thursday, March 16.

Proceeds from the sale will be used to refund an estimated $32.68 billion of publicly held 13- and 26-week bills maturing March 16 and to raise about $7.32 billion of new cash. Also maturing is an estimated $16 billion of publicly held 4-week Treasury bills, the disposition of which will be announced March 13.

The three-month bills mature on June 15, while the six-month bills mature on Sept. 14.

Treasury said $5.50 billion of the three-month bills can be excluded when bidders calculate their net long positions. The net long reporting threshold for the three-month bills is $7.35 billion and for the six-month bills it is $6.65 billion.

...more...

[UpInArms]

81. Treasuries down on BOJ decision, payroll posturing

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-09T173029Z_01_N09416025_RTRIDST_0_MARKETS-BONDS-UPDATE-1.XML

NEW YORK, March 9 (Reuters) - U.S. Treasury debt prices fell on Thursday in the wake of the Bank of Japan abandoning its super-loose monetary policy, which some fear could cut demand for U.S. debt in the coming months.

The Bank of Japan on Thursday ended a five-year-old experiment with flooding the market with funds and returned to a more conventional monetary regime, but said short-term rates would be kept near zero for now.

The lower prices also reflected preparations for a 10-year note auction at 1 p.m. EST (1800 GMT). Dealers often try to push down Treasuries prices ahead of an auction in the hope of picking up the new paper at a lower price, a tactic known as cheapening or building a concession into the market.

But after a week of selling that lifted 10-year Treasury note yields to 21-month highs -- and above two-year yields for the first time since late January -- the market was technically worn out.

"The market is oversold. Payrolls are coming (Friday), and we're expecting a really strong number," said one trader at a primary Treasuries dealer.

Wall Street economists expect the government will report that U.S. employers added 210,000 jobs in February, though bond and currency traders have been kicking around a "whisper" number of 300,000. That would likely fuel a powerful sell-off of short-dated notes and probably push short-dated yields above longer-term debt, reinverting the Treasury yield curve.

...more...

[UpInArms]

82. Fed's Geithner--Policy must counter overseas flows

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-09T180103Z_01_NYH000158_RTRIDST_0_ECONOMY-FED-GEITHNER-URGENT.XML

NEW YORK, March 9 (Reuters) - U.S. monetary policy may need to be tightened sufficiently to offset the downward tug on interest rates from robust official capital inflows, New York Federal Reserve President Timothy Geithner said on Thursday.

Asian central banks have been huge buyers of U.S. government debt in recent years, which analysts say helps explain why long-term bond yields have largely failed to react to a series of interest rate hikes from the Fed.

"Policy would have to act to offset these effects in order to achieve the same impact on the future path of demand and inflation," said Timothy Geithner, president of the New York Federal Reserve Bank.

<snip>

Speaking at the Japan Society, Geithner also reiterated his concern about the gaping U.S. external deficit. He said that if the current account gap remained at current levels close to 7 percent of gross domestic product, the net U.S. international investment position would "deteriorate sharply."

...more at link...

[UpInArms]

101. Fed's Geithner: global FX flexibility move may be choppy

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-09T191955Z_01_NAT002033_RTRIDST_0_ECONOMY-FED-GEITHNER-FLEXIBILITY-URGENT.XML

NEW YORK, March 9 (Reuters) - The move toward increased flexibility in the foreign exchange policies of countries with more rigid currency regimes may not be smooth and gradual but is welcome nonetheless, New York Federal Reserve Bank President Timothy Geithner said on Thursday.

"It won't necessarily be smooth and gradual but it's probably healthy for the financial system as a whole," Geithner said in a question and answer session at the Japan Society in New York.

Asian countries, especially China and Japan, hold huge amounts of foreign exchange reserves, mostly U.S. dollar-denominated assets.

This policy of recycling their large current account surpluses back into dollars is unsustainable and "is likely to evolve," Geithner said.

[UpInArms]

84. Today's Treasury Auction has lousy results

1:06 PM ET 3/9/06 <$TNX> 10-YR TREASURY NOTE DOWN 5/32 AT 98-2/32; YIELD 4.748%

1:05 PM ET 3/9/06 <$TNX> 10-YR HAS VERY LOW 5.5% INDIRECT BID

1:03 PM ET 3/9/06 <$TNX> 10-YR TREASURY AUCTION HAS HIGH YIELD 4.760%

1:04 PM ET 3/9/06 <$TNX> 10-YR TREASURY AUCTION HAS MEDIAN YIELD 4.747%

1:03 PM ET 3/9/06 <$TNX> 10-YR TREASURY AUCTION HAS BID-TO-COVER RATIO OF 2.87

[UpInArms]

88. Treasuries stay lower amid mixed demand in auction

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-09T181821Z_01_NYG000141_RTRIDST_0_MARKETS-BONDS-AUCTION-URGENT.XML

NEW YORK, March 9 (Reuters) - U.S. Treasury debt prices held at lower levels on Thursday after an $8 billion reopened auction of 10-year notes drew decent overall demand but poor indirect bidding.

The notes were sold at a high yield of 4.760 percent and drew bids for 2.87 times the amount on offer, above the 2.43 average in 2005's four 10-year note auction reopenings.

Indirect bidders, which include customers of primary dealers and foreign central banks, snagged just $435.14 million, or 5.4 percent of the deal, well below the 15.43 percent average of last year's four 10-year note auction reopenings.

...more...

[UpInArms]

91. Treasurys down after 10-yr auction gets weak foreign bid

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BADB3A4EB%2D124C%2D4B00%2DAD8C%2DE2A1F2117EE4%7D&dateid=38785%2E5548571991%2D863506455&siteid=mktw&dist=newsfinder

NEW YORK (MarketWatch) - Treasury prices remained moderately lower Thursday afternoon, keeping yields higher, after an auction of $8 billion in new 10-year notes produced a very low 5.5% of indirect bids, the carefully watched category that includes foreign central banks and other institutions. The average indirect bid for the last 10 auctions was 28%, although historically foreign bank have not been big buyers at reissuances, according to Kevin Giddis, managing director of fixed income at Morgan Keegan. The latest sale actually was a reopening of a prior 10-year note sale and covered 9-year and 11-month notes. The auction also produced a high yield of 4.760%, a low yield of 4.747%, and a bid to cover - or bids rendered to bids accepted - ratio of 2.87. The 10-year benchmark last was down 6/32 at 98-1/32 with a yield ($TNX 47.57, +0.23, +0.5% ) of 4.755%.

[UpInArms]

102. Not worrying if investors look overseas-US Treasury

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-03-09T192438Z_01_N09390046_RTRIDST_0_ECONOMY-QUARLES-INVESTORS-INTERVIEW-UPDATE-1.XML

WASHINGTON, March 9 (Reuters) - It is too soon to say if an increase in U.S. bond yields in recent weeks means investors are showing a growing preference for overseas markets, but it would not be troubling if so, a senior U.S. Treasury official said on Thursday.

"I think it would be premature to draw that conclusion yet," Treasury Undersecretary for Domestic Finance Randal Quarles said in an interview with Reuters.

Quarles said, however, it would not be a surprise if investors were increasingly looking elsewhere for opportunities, given signs of quickening growth in other economies, particularly Japan.

As growth accelerates in other countries "then an investor considering where to put the marginal investment dollar, it's going to now be more likely than it was yesterday that he is going to consider an alternative to the United States."

But he said shifting investor preferences were unlikely to hit the U.S. economy hard.

"I don't think that the U.S. economy generally, or the financing of the U.S. economy, has anything to fear from those sorts of decisions by various economic actors in light of changing economic circumstances," Quarles said.

...more crapspew at link...

[UpInArms]

106. Treasury's Quarles-U.S. budget gap 'very manageable'

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=2006-03-09T194929Z_01_N09196395_RTRIDST_0_ECONOMY-QUARLES-DEFICIT-UPDATE-1.XML

WASHINGTON, March 9 (Reuters) - A top U.S. Treasury official said on Thursday the Bush administration was running "a very manageable deficit" that posed no problem for the government in raising needed finances.

"This is not a fiscal emergency," Treasury Undersecretary Randal Quarles told Reuters in an interview. "We've got a budget that is very strict on expenditure, we've got a path -- that we've done a pretty good job on -- that brings the deficit down over time."

Quarles said a projected $423-billion budget shortfall for fiscal 2006 was less than 3 percent when calculated as a percentage of national economic output, in line with the trend of the past four decades.

"That is a very manageable deficit. That is roughly in line with what the average deficit has been over the past 40 years," Quarles said, adding that this was particularly the case given the economic growth in the United States of roughly 3.4 percent a year estimated by most forecasters.

<snip>

Quarles described government revenues, primarily from corporate and personal incomes taxes, as "very strong" and added: "We've got the strongest revenues we've had in the history of the republic."

The annual budget deficits flow through into the nation's accumulated debt, which has been rising and has forced the Bush administration to call for an increase in the debt ceiling to permit Treasury to keep borrowing and to avoid potential default on its debt burden.

...more...

hmmm.... described government revenues, primarily from corporate and personal incomes taxes

That does not appear to be true - per this chart:



methinks that the bulk of the "revenue" is coming from fines and levees against corporate malfeseance and associated criminal activities that are never "admitted or denied" by the parties that are paying billions in settlements. (jmho)

[UpInArms]

107. US Treasury's Quarles-pensions may need long bonds

Trying to find another hole to stick their "worthless IOUs" into?

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-03-09T195656Z_01_N09392386_RTRIDST_0_ECONOMY-QUARLES-BOND-INTERVIEW-UPDATE-1.XML

WASHINGTON, March 9 (Reuters) - The U.S. Treasury is aware of strong market appetite for long bonds, which may also be helpful in ensuring that corporate pension plans remain funded, U.S. Treasury Undersecretary for Domestic Finance Randal Quarles said on Thursday.

"It's very evident that there is a strong appetite for long-dated paper," Quarles said in an interview with Reuters.

Quarles declined to comment on whether Treasury is considering introducing a 50-year bond, as Britain and France have done, saying Treasury would make no announcements outside its regular quarterly refunding statements.

But he said concerns about the ability of U.S. firms to ensure pensions for employees over the long haul may call for long-dated, low-risk debt.

<snip>

Treasury's reintroduction of the 30-year bond in February was well-received by markets, particularly U.S. purchasers.

...more...

:eyes:

[EuroObserver]

117. ;

:eyes:

[ozymandius]

15. Google to Pay $90M in 'Click Fraud' Case

SAN FRANCISCO - Google Inc. has agreed to pay up to $90 million to settle a lawsuit alleging the online search engine leader overcharged thousands of advertisers who paid for bogus sales referrals generated through a ruse known as "click fraud."

The proposed settlement, announced by the company Wednesday, would apply to all advertisers in Google's network during the past four years. Any Web site showing improper charges dating back to 2002 will be eligible for an account credit that could be used toward future ads distributed by Google.

-cut-

Mountain View, Calif.-based Google makes virtually all of its money from text-based advertising links that trigger commissions each time they are clicked on. Besides enriching Google, the system has been a boon for advertisers, whose sales have been boosted by an increased traffic from prospective buyers.

But sometimes mischief makers and scam artists repeatedly click on specific advertising links even though they have no intentions of buying anything. The motives for the malicious activity known as click fraud vary widely, but the net effect is the same: advertisers end up paying for fruitless Web traffic.

more...

[EuroObserver]

16. Analysis: Global markets wilt on worries liquidity drying up

Thu Mar 9, 2006 8:33 AM GMT LONDON (Reuters) - Investors have worried about the withdrawal of global liquidity from financial markets since the beginning of the Federal Reserve's interest rate tightening cycle back in mid-2004. The question on Wednesday -- as global assets ranging from stocks to bonds and commodities to high-yield currencies took a hit -- was whether the worries are finally taking tangible form.

It looked a bit like it for some of the day. Stock markets were generally lower and short-term European debt yields rose to three-year highs, adding to a global yield surge this month. Emerging markets and high-yielding currencies were much in focus. Turkey's stock market, for example, lost as much as 5.5 percent at one point while Iceland's crown lost 4 percent against the dollar. Add to that commodities, the star performers of recent years. The Reuters/Jefferies CRB commodities index was at levels some 9 percent lower than at the beginning of February.

Such across-the-board losses are reasonably unusual and could be a harbinger for further asset sell-offs if the global liquidity picture is changing significantly. "When all markets fall, it's a sign that liquidity is being withdrawn," said Stephen Lewis, chief economist at Monument Securities in London.

The concern is that global interest rates are rising, and may be rising higher than initially expected. Such moves stand to drain the flood of money that has been in the global economy, and hence markets, for much of this decade. The Fed, for example, could go to 5 percent or even higher, dashing hopes that it is ready to pause. The European Central Bank, meanwhile, has just started tightening. ...more...

[ozymandius]

19. Stock futures rise on BoJ, trade data awaited

LONDON (Reuters) - U.S. stock futures rose on Thursday after the Bank of Japan scrapped its ultra-easy monetary policy and said the economy was recovering steadily, boosting global stock markets.

Wall Street therefore looks set to open higher, but the release of U.S. January trade data could alter sentiment before the market opens.

By 1100 GMT, U.S. stock futures were showing gains of around 0.2 percent for the three main indexes .

Global stock markets struggled in recent days because of worries that the Bank of Japan, Federal Reserve and European Central Bank might all be in monetary tightening mode, but relief at Japan's recovery and its measured approach has dispersed some of the clouds.

more...

[54anickel]

22. Gazing at a stock gain

News out of the Bank of Japan, report that GM, Delphi and UAW are close to a deal, could help give stocks a lift Thursday.

http://money.cnn.com/2006/03/09/markets/stockswatch/index.htm

NEW YORK (CNNMoney.com) - Stocks looked to get a lift Thursday from news out of the Bank of Japan, as well as a report that General Motors was closer to a deal with Delphi and the United Auto Workers union that is seen as a key to the embattled automaker avoiding bankruptcy.

snip>

The Bank of Japan confirmed it is ending its policy of near-zero interest rates, although investors were relieved to see that nation's central bank will keep short-term interest rates around zero for now and continue to act to keep long-term rates low.

The European Central Bank also stated Thursday that it would continue to closely watch for signs of inflation and that ECB said European economic activity is improving. Both statements were taken as a sign that higher rates are on the horizon there as well.

snip>

"I think the news we got out of Japan and ECB was in line with expectations," said Peter Cardillo, chief market strategist at SW Bach. "But it's positive; what it indicates is that the global economy remains strong. They wouldn't be doing it if there was weakness. Of course, GM helps the situation."

more....

That part about staying around zero for now has me thinking about that Maudlin article...gotta go find it.


On edit: Here it is -

http://www.moneyweek.com/file/9285/could-japan-cause-a-us-house-price-crash.html

snip>

"But the imminent end of QE begs a crucial question, which seems to be confusing many investors and market analysts. Will the end of QE be followed quickly by the ending of the zero interest rate policy (ZIRP)?

"Remember that the QE policy did not begin in earnest until 2003, four years after interest rates were reduced to below 10bp in 1999 and two years after they fell to absolute zero in mid-2001. Thus a gradual reduction in bank reserves from the present ¥35 trillion to ¥15 trillion (where they were in 2001) or even ¥5 trillion where they were in 1999 would be perfectly compatible with zero or near-zero interest rates.

"Our view is that this combination of declining reserves and zero rates is exactly what the BoJ will try to achieve. We have long believed that the ZIRP would continue for at least another year or so and that Japanese interest rates would remain near zero (i.e.: below 50 basis points) for the rest of this decade. We believed this because the Japanese had a very plausible reason for sticking to ultra-low interest rates for the foreseeable future: Japan has the biggest government deficit and the highest level of public debt relative to GDP in the OECD.

"Thus when the economy gets strong enough to withstand a deflationary impact, the Japanese will want to hit it with fiscal rather than monetary tightening. Tax increases are already in preparation for 2007 or 2008 and to make sure that they can be implemented without causing a 1997-style economic disaster, Bank of Japan and Ministry of Finance officials have agreed that monetary policy should remain ultra-loose for the foreseeable future.

"This very plausible story has been supported by news reports which predict that the BoJ will accompany its statement about the end of quantitative easing with a public assurance that the ZIRP will be maintained. But strangely, the market seems to be taking the opposite view. All the discussion about ending QE seems to have persuaded many investors that the ZIRP is also about to be abandoned. The Japanese yield curve is now discounting a very aggressive increase in interest rates, with short rates expected to rise by 75 bps this year and 150 bps by the end of 2007. This seems to us very implausible."

[EuroObserver]

42. Yes, this looks like their strategy, to my untrained eye. n/t

[ozymandius]

20. NYSE dazzles in public debut

NEW YORK (Reuters) - The New York Stock Exchange began life as a publicly traded company on Wednesday with a bang, as its stock surged nearly 25 percent in its market debut.

The day marked the end of the exchange's 213-year history as a member-owned club and the start of its own membership in the red-hot publicly-traded exchange sector, with its sights set firmly on future growth through acquisitions and new products.

The NYSE, the world's largest stock exchange, sealed its purchase of electronic rival Archipelago Holdings Inc. on Tuesday and joined the two into the new NYSE Group Inc. (NYSE:NYX - news), designed to haul the exchange into the electronic age.

Interest in NYSE shares ran high from the start, mirroring other strong openings for exchanges going public.

more...

[moondust]

21. Can this be good?

Won't the NYSE now focus on maximizing its own stock price at the expense of fair and equitable transaction processing? I'd expect their most profitable traders to start getting perks and priorities at the expense of the little guys. ??

[UpInArms]

23. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DX

Last trade 90.51 Change +0.03 (+0.03%)

Dollar Bulls Prepare For Volatility

http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/7215_dollar_bulls_prepare_for.html

EUR/USD – Euro bulls managed to push the pair above the 1.1900 figure as EUR/USD stalled above 1.1864, a level marked by the 23.6 Fib of the 1.2588-1.1639 USD rally. As dollar bulls consolidate their gains and once again push the pair below 1.1900 figure, a move below 1.1864 level, will most likely see the pair head lower and target euro bids around 1.1778, a level marked by the December 30 daily low, and with sustained momentum most likely seeing the EUR/USD decline toward 1.1704, a level defended by the December 7 daily low. A further collapse of the single currency defenses will most likely see the pair decline toward 1.1639, a level established by the 2005 Low, and acts as a gateway toward the next psychologically important 1.1500 handle. Indicators are mixed with positive momentum indicator diverging from negative MACD below the zero line, while neutral oscillators give either side enough room to maneuver.

<snip>

USD/JPY – Japanese Yen longs managed to push the pair below 1118.00 figure as greenback longs remained in charge of the bids around 117.38, a level established by the 23.6 Fib of the 104.16-121.46 USD rally and is further reinforced by the 20-day SMA. As dollar longs regroup and launch another counteroffensive a further move on the part of the greenback longs will most likely see the USD/JPY head higher and with a move above the 118.00-119.00 zone target the yen offers around 119.36, a level defended by the February 3 daily high. A sustained momentum on the part of the greenback bulls will most likely see the dollar bulls push the pair toward the psychologically important 120.00 handle and with confirmed breakout seeing dollar bulls target 120.46, a level marked by the December 13 daily high. A further advance on the part of the dollar trader will most likely see the Japanese yen longs retreat toward 121.39, a level defended by the 2005 High. Indicators are favoring Japanese yen longs with both negative momentum indicator and MACD treading below the zero line, while oversold Stochastic gives dollar longs a chance for a extend their rally.

...more...

[UpInArms]

50. From Hungary:

http://www.portfolio.hu/en/cikkek.tdp?cCheck=1&k=3&i=7510

Hungary's forint, along with several other converging and emerging market currencies, have weakened considerable in the past weeks. The forint depreciated by about 3%, the zloty by 4% and the Turkish lira by 3.5%. The yield of 10-year U.S. bonds is attacking levels at around 4.8% and markets are gearing up for a global liquidity squeeze. Some market players forecast further massive drops in emerging markets, while others believe the panicky mood will soon abate and the monetary tightening of the three key central banks (Fed, ECB, BoJ) will not be dramatic. The question arises whether the forint's easing is part of this process or there are other factors are working in the background.

...more...

[UpInArms]

52. Dollar dips after record trade deficit

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB3339C87%2DA476%2D4D7C%2D8D8A%2DE7984E787FB6%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - The dollar edged slightly lower against major rivals early Thursday after fresh economic data showed the nation's trade deficit widened to a new monthly record in January.

Meanwhile, the yen, after an initial drop, rallied across the board after the Bank of Japan moved to scrap its five-year old deflation-fighting ultra-easy monetary policy but pledged to maintain a low interest rate environment.

"Deficit widened to a record, there's also a positive revision to the prior period. The surprising thing is despite the trade deficit widening to a record, the dollar has not suffered a significant damage," said Brian Dolan, head of currency research at Gain Capital. "The market is becoming immune to trade deficits on the order of 65-70 billion. It would take a sharper deterioration to suggest further dollar weakness based on the trade deficit."

The market is focusing on Friday's nonfarm payrolls report, he said.

...more...

[UpInArms]

24. Ownership Society Failures

http://www.howestreet.com/articles/index.php?article_id=2137

excerpt:

"After recording more than 9,000 foreclosures in 2005, Wayne County ended January with 3,364 homes in active foreclosure, the highest of any county in the nation by more than 1,000, according to statistics compiled by Foreclosure.com of Boca Raton, Fla….

"The numbers illustrate one of cruelest side effects of the region's economic troubles. Every repossessed home is a broken American dream for families, who lose not only money and a home, but also give up years of happy memories and hopes for a solid future.

"The burgeoning foreclosure rate also takes a toll on the larger community.

"Lenders, stuck with the homes, lose up to $50,000 per house as they clear them out at below-market prices. That can lower property values in neighborhoods, pushing more homeowners to move out, and eventually hurt property tax collections for local governments.

"'Foreclosure depresses an area in a variety of ways,' said LaSalle Bank chief economist Carl Tannenbaum.

<snip>

"The well-dressed, middle-aged General Motors Corp. line worker once owned the home free and clear. During a separation from his wife, he took out a 30-year mortgage but fell behind in the payments. He refinanced to a subprime loan charging 13% interest. But he had fallen behind on taxes, too, and now owes more than $64,000 to the lender, including $16,000 for taxes. Although he's declared bankruptcy, the home was excluded.

<snip>

This is going to prove to be the ultimate failure of Bush's "ownership society." Pearch is correct: Not everyone can or should be a homeowner. We have hundreds of government programs all trying to force home ownership on people who cannot afford, and perhaps do not even want, homes.

...much more...

[justabob]

35. "...trying to force home ownership on people..."

I don't understand this... how does a person get forced into home ownership? I understand not being able to sell your home and so that is kind of like being forced, but forcing ownership 'on people who cannot afford and perhaps don't even want homes'? Can anyone translate this for me?

[UpInArms]

36. I believe it used to be called "Keeping Up With the Joneses"

and people are encouraged to feel that they can borrow any amount of money so long as it is put under the "real estate" category.

(jmho)

[justabob]

38. That concept I understand

I don't understand how that equates to being "forced", but I am a person who couldn't care less what 'the Joneses' are up to. :)

[UpInArms]

41. It appears that we are really in the middle of a lemming society

that doesn't want to do any of their own research or reach any understanding of history.

There are a few myths (imo) that really need to get exposed:

"Deficits don't matter"

"The richest nation on earth"

"Real estate only increases in value"

"Stocks only go up"

[justabob]

46. yes, agreed

I was in class tuesday night and the professor walked us through something he is working on in his private life as a practical application of the technology we are learning. It involved deciding how to go about finding land with the best chance of appreciating over the next 20 years along the proposed route of the new interstate being planned in Texas (IH 69) He said 'real estate only increases in value' and I cringed. I get really tired of absolutes. The only absolute for me is that there is an exception to every rule.

[UpInArms]

60. Hey justabob - see the commentary at Post #59 regarding this

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2154841&mesg_id=2155312

[justabob]

65. Thank you

It is so nice to have y'all here sharing your knowledge with those of us who have a hard time making sense of it all.

[EuroObserver]

45. There appears to be a lot of brainwashing going on in the USA (& UK).

Spain has caught the sickness to a degree also. Fewer people thinking for themselves (in politics as well as economics, lifestyles, etc.), as UpInArms says.

I think a lot of people have been 'sold' the idea that they should purchase, by hook or by crook, the most expensive housing property they can reach, because, they've been told, it's a sure-fire way to "get rich quick". Worked, maybe still works, for some, for a while. But cannot possibly work for ever for everyone.

Just another variation on "pyramid scheming", imho.

[justabob]

48. It does appear to be contagious unfortunately

I guess the ultimate "Jones" family is the USA and everyone is rushing to be as foolish as we are. :eyes:

[AnneD]

69. We don't measure ourselves against the Jonses

that why we don't have a house. There is no house that is in our budget at the moment(no one builds new affordable homes in Houston) and we refuse to assume more debt than we should as our salaries dictate. We will not go much over 25% of our salary for housing, so we can't get much. Oh we might if we got one of those ARM's....Yeh when monkeys fly outta my butt.....:eyes:

[Maeve]

43. Perhaps rather than "force" the word should be "cajole"

There is a drumbeat out there that "everyone should own", but not everyone wants or can handle the constant repairs/maintenence, etc. that come with ownership. Some finincial advisors particularly insist that you can't make it to "comfortable" without a house of your own so start NOW. I'd like to know what percentage of people caught in this are young and don't realize they are likely to change jobs and have ups and downs in income at first.

True, in many places the monthly cost of rent is much higher for a comparable place to live than basic mortgage, but add on taxes, water/sewage, trash pick-up, insurance(and what insurance doesn't cover) etc and it can get out of hand for many people. I know Hubby would rather switch to condo or apartment living when we retire (he HATES yard work!)

For what it's worth...

[AnneD]

68. Houston (and the ownership society)....

been there done that and all we got was a savings and loan scandal.

[UpInArms]

26. Bond Is Set at $25 Million in KPMG Tax Shelter Case

http://www.nytimes.com/2006/03/09/business/09shelter.html?ex=1142571600&en=bd859069eb07e46a&ei=5099&partner=TOPIXNEWS

A federal judge granted bail yesterday to a former KPMG partner, David Greenberg, who is awaiting trial for selling questionable tax shelters, even as the judge blasted him over what he called secret partnerships full of ill-gotten gains.

Judge Lewis A. Kaplan of Federal District Court in Manhattan, who first denied bail to Mr. Greenberg after he was indicted in October, citing concerns that he would flee the country, attached unusually severe strings to the release.

Mr. Greenberg is among 19 people, including 17 former KPMG professionals, an outside lawyer and an investment banker, who face federal fraud and conspiracy charges in creating and selling bogus tax shelters. The shelters, sold to hundreds of investors from the late 1990's through recent years, permitted wealthy individuals and in some cases corporations to escape paying billions of dollars in taxes. All 19 have pleaded not guilty.

Mr. Greenberg, who faces 25 years or more in prison if convicted, must post a $25 million bond backed by the entire personal assets of his immediate family, including those of his former wife, father and children. Mr. Greenberg must also surrender his passport, wear an electronic monitoring bracelet, move to Manhattan from California and remain in New York until his trial begins in September. The $25 million bond will be financed by his personal assets and guaranteed by $20 million in real estate from his family.

Judge Kaplan said that under the terms of Mr. Greenberg's release, if he flees the country, "his ex-wife, his father and his children will be financially ruined and stripped of substantially every asset they have."

...more...

[UpInArms]

27. self delete for duping Ozy's Google story

:blush:

[UpInArms]

28. Deregulation eyed in rising electric bills

http://www.mercurynews.com/mld/mercurynews/business/financial_markets/14051050.htm

BALTIMORE - Electric rates will surge for many Maryland residents this summer. And they are not alone. Electric rates are rising nationwide and many are blaming deregulation plans originally designed to spur cheap energy production as much as higher fuel prices.

In Maryland, state regulators say Baltimore Gas & Electric Co. residential customers will see their rates increase 72 percent, although a plan imposed this week will defer all but 21 percent of the increase. In Montana, higher rates have led to a move to scrap that state's deregulation scheme.

Such deregulation plans were promoted as a way to introduce competition into the electricity marketplace and move from the traditional regulated utility that owned its own power plants and transmission lines.

<snip>

But as electric deregulation went into effect in the late 1990s, there was a surge in the construction of power plants that run on natural gas, in large part because of its reputation as an inexpensive fuel. To make matters worse, the increase in natural gas demand coincided with a period in which companies that drill for the fuel struggled to keep up with the new demand.

Electric rates didn't change for many customers at first because rates were capped for a number of years to allow companies to recoup so-called `stranded costs' for the construction of power plants. Power plants, meanwhile, were sold off as many utilities split into generating companies and transmission companies, which buy power, charge for the transmission and bill the customer.

Customers are now finding that as the caps end, their electric rates are rising instead of falling.

...more...

[UpInArms]

32. Derivative traders see Feb US payrolls at 203,000

The gamblers seem to be scaling back on their bets :eyes:

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-09T132731Z_01_N09301906_RTRIDST_0_ECONOMY-PAYROLLS-DERIVATIVES.XML

NEW YORK, March 9 (Reuters) - Traders in the second of four derivatives auctions related to this week's U.S. payrolls data bet on Thursday the report will show U.S. employers added 203,000 non-farm jobs in February -- a bit below both Wednesday's initial auction and what economists expect.

The 203,000-job implied forecast was shy of the 208,000 forecast in Wednesday's auction and the median forecast of a seasonally adjusted 210,000-job gain from a poll of economists conducted by Reuters last week. The Labor Department will released its report on Friday at 8:30 a.m. (1330 GMT).

The shift to a below-consensus result emerged in Thursday's auction in a concentration of betting around a result between 125,000 and 150,000 jobs, with traders putting a 10.6 percent probability on such an outcome.

Non-farm payrolls gained a seasonally adjusted 193,000 in January, though the government is likely to revise that figure in Friday's report.

Investors use the auctions to hedge against unwanted surprises in the report. Traders also use the auctions to speculate on the outcome.

...more...

[UpInArms]

37. Carlyle Group buys modular building company

(Cashing in on Katrina?)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-09T134847Z_01_N09162528_RTRIDST_0_MANUFACTURING-COMARK.XML

NEW YORK, March 9 (Reuters) - Carlyle Group, a private equity firm, said on Thursday it had bought Comark Building Systems Inc., which makes and distributes modular buildings, seeing demand for manufactured buildings on the rise.

Terms of the deal were not released. Carlyle bought the company from Brazos Private Equity Partners LLC, a private equity group based in Dallas, Texas.

Comark's current management will remain in place. The deal closed on March 6.

Charlie Moore, a principal at Carlyle Venture Partners, said demand for high-quality modular construction was rising.

"We expect this trend to accelerate, particularly with government customers, as they seek to realize the significant advantages, in terms of both cost and speed, of manufactured buildings," he said in a statement.

Comark, founded in 1989, supplies custom modular buildings to the federal government, public school districts and commercial customers across the United States, employing 500 people at locations in Texas, California and North Carolina.

...more...

[EuroObserver]

83. Comark... supplies custom modular buildings to the federal government...

and commercial customers...

Now, this company wouldn't, by any chance, be supplying 'modular buildings' to such projects as military bases/barracks, prison camps à la Guantanamo, 'detention centres for illegal immigrants', customers such as Haliburton, (all booming business) by any remote chance?

(not going to have much time to research today, but let's see...) :tinfoilhat:
on edit: after a quick look at the Comark web site:

http://www.comarkbuilding.com/

edit again: see here: http://www.comarkbuilding.com/govcase.html#

[wordpix2]

93. Does anyone know if/how Carlyle Grp is related to Halliburton/KBR?

[UpInArms]

95. A: Dick Cheney

http://www.sourcewatch.org/wiki.phtml?title=Dick_Cheney

Richard Bruce "Dick" Cheney serves as Vice President of the United States with the George W. Bush administration. Previously, he served as Secretary of Defense with the George H.W. Bush administration, and as White House Chief of Staff under Gerald R. Ford. From 1978 to 1989, he served as a U.S. Representative from Wyoming.
Cheney's White House Web Site.

A neo-conservative and a member of the Council on Foreign Relations, Cheney is the former CEO of Halliburton Company, which greatly benefits from contracts with the U.S. government, especially in the war with Iraq <1>. Cheney has ties to the Carlyle Group, is a former Senior Fellow with the American Enterprise Institute <2>, served on the Advisory Board of the Jewish Institute for National Security Affairs (JINSA), and has been linked to the Project for the New American Century (PNAC).

Mr. Cheney opposed the Equal Rights Amendment, is an anti-abortion advocate, and supports prayer in school. While serving in Congress, he was one of 21 members opposing the sale ban of armor-piercing bullets; was one of only four to oppose the ban on guns that can get through metal detectors; opposed sanctions against the apartheid-era South Africa in the mid-1980s along with voting against a resolution calling for the release of Nelson Mandela; voted for a constitutional amendment to ban school busing; voted against Head Start; and voted against extending the Clean Water Act in 1987.

Mr. Cheney is still drawing a $1,000,000 per year paycheck from Halliburton while serving as the Vice President. <3> <4>.

He evidently sees no conflict of interest between taking this paycheck and participating in White House decisions that have allocated billions of dollars of bids to Halliburton that have not gone to open tender.

His persistent embroglio in the Junior Bush regime has been with his Energy Task Force through which during the early months of 2001 he was taking dictation from Enron and studying petro maps of Iraq, and wants to keep all those notes a secret.

...much more...

[UpInArms]

103. The Big Guys Work For The Carlyle Group

http://www.carlylegroup.net/thebigguys.htm

Are you the sort of person who believes in conspiracies--the Trilateral Commission secretly runs the world, that sort of thing? Well, then, here's a company for you. The Carlyle Group, a Washington, D.C., buyout firm, is one of the nation's largest defense contractors. It has billions of dollars at its disposal and employs a few important people. Maybe you've heard of them: former Secretary of State Jim Baker, former Secretary of Defense Frank Carlucci, and former White House budget director Dick Darman. Wait, we're just getting warmed up. William Kennard, who recently headed the FCC, and Arthur Levitt, who just left the SEC, also work for Carlyle. As do former British Prime Minister John Major and former Philippines President Fidel Ramos. Let's see, are we forgetting anyone? Oh, right, former President George Herbert Walker Bush is on the payroll too.

The firm also has about a dozen investors from Saudi Arabia, including, until recently, the bin Laden family. Yes, those bin Ladens. Is it any wonder that Internet sites with names like paranoiamagazine.com are rife with stories about Carlyle's shadowy, corrupt global network? And it's not just wackos. "Be careful," a tech entrepreneur in Silicon Valley wrote in an e-mail when he learned I was doing a story on Carlyle. "The rabbit hole runs really deep on this one.''

Leaving aside the conspiracies for a moment, what exactly does the Carlyle Group do? Start with the basics: It's one of the world's largest and most powerful private-equity investment firms, meaning it buys and sells privately held companies and divisions of large public companies for big profits. Founded in 1987 (and named after the favorite New York hotel of the firm's first investors, the Mellon family), Carlyle has raised a total of $14 billion from investors in just the past five years--more than any other private-equity firm has attracted in the same period, except the Blackstone Group and CSFB Private Equity. Profits, too, have been pretty terrific. Not counting the standard 20% cut that goes to Carlyle's partners and managing directors, the firm's average annual rate of return has been 36%.

It's quite a success story, and to understand how Carlyle pulled it off, FORTUNE spent a month and a half peeking down that rabbit hole. One conclusion seems clear: While most of the conspiracy theories are amusingly overblown, this is a firm that's been built on the backs of Bush and other big shots who have lent Carlyle their names, their golden networks of friends in high places, and their insights into how government works. It wasn't until Carlucci joined, for instance, that Carlyle really took off. Founded by David Rubenstein, a lawyer who worked as an aide in the Carter White House, Bill Conway, a former CFO at MCI, and Dan D'Aniello, a former finance executive for Marriott, Carlyle early on invested in a motley assortment of deals--buying an airline-catering business, a health-food chain, and a biotech firm, for example. In 1990, Carlucci got the trio interested in the $150-billion-a-year U.S. defense industry, making introductions to companies that would turn into some of Carlyle's most lucrative investments. Rubenstein quickly realized the wisdom of recruiting a former Secretary of Defense and followed it up with a former Secretary of State, then a former White House budget director, and on and on.

...more that is very interesting...

[cosmicdot]

125. I would guess a dotted line to Poppy Bu$h

via the Bu$h connections to Dresser Industries, which are part of Halliburton-Kellog-Brown-Root ... both are profitting from dimson & co. 'ruining' (spelling intentional) the White House ... we need more visibility into private equity investiment firms ......

(either that or drug smuggling as a connection - I don't don tin foil hats anymore)

~snip~ Prescott was the longest-sitting member of the board of directors of Dresser Industries, a Dallas-based oil drilling equipment supply company.~snip~ Prescott convinced his partners at the banking house of Brown Brothers Harriman –among them Averell Harriman, a fellow Skull and Bones member-- to wave the firm’s nepotism rule so George could work there.~snip~Instead of taking those two prospects, George opted for a third family tie. He met with Henry Neil Mallon, the president of Dresser Industries. Mallon offered George his first job at Dresser subsidiary International Derrick and Equipment Company (Ideco), in Odessa, Texas.~snip~

http://www.famoustexans.com/georgebush.htm

Halliburton, Brown & Root, Dresser Industries and M.W. Kellogg were all founded early in the 20th century ~snip~In 1988, Dresser Industries acquired M.W. Kellogg~snip~

http://www.halliburton.com/about/history_entrep.jsp

[wordpix2]

126. thanks, this is helpful, I was missing the Dresser connection

gawd what a clusterfuck and somehow it all relates to 911

[UpInArms]

47. pre-opening blather

09:13 am : S&P futures vs fair value: +1.9. Nasdaq futures vs fair value: +6.0.

09:01 am : S&P futures vs fair value: +2.4. Nasdaq futures vs fair value: +5.5. Futures trade continues to suggest a positive open for the stock market. Somewhat of a moderation in 10-year note yields is lending a measure of support. Currently, the benchmark bond (-05/32) is yielding 4.75%. Also supportive for stocks is the fact that the two-10 year yield spread is presently out of inversion. The two-year note (00/32) is currently offering investors 4.73%, a yield that is below that of the 10-year's.

08:35 am : S&P futures vs fair value: +3.2. Nasdaq futures vs fair value: +7.5. Today's calendar features two pieces of economic data, both of which were recently released. Initial Claims rose 8K to 303K, higher than the 295K that analysts had expected. The trade deficit, meanwhile, was $68.5 in January. Economists had projected a $66.5 billion deficit. Reaction to the data within both the stock and bond markets has been a muted one. Both markets are awaiting tomorrow's February Employment report. The cash market remains headed for a higher start.

08:02 am : S&P futures vs fair value: +4.0. Nasdaq futures vs fair value: +8.5. Yesterday's late-day momentum appears to be carrying over into early trade, and futures trade is signaling a higher start for stocks. News that Johnson & Johnson's (JNJ) board approved a share repurchase program that authorizes the company to buy back up to $5 billion in shares is lending a measure of support. Also, gains in foreign markets are contributing to the upbeat tone. Particularly, the Nikkei rose about 2.6% following the Bank of Japan's announcement that it will abandon its quantitative easing approach.

[UpInArms]

51. 9:41 EST and all is well!

Dow 11,019.35 +13.61 (+0.12%)
Nasdaq 2,272.03 +4.57 (+0.20%)
S&P 500 1,281.62 +3.15 (+0.25%)
10-Yr Bond 4.746 +0.12 (+0.25%)

NYSE Volume 119,021,000
Nasdaq Volume 137,966,000

[UpInArms]

53. April Gold @ $548 oz - May Silver @ $9.975 oz

9:46 AM ET 3/9/06 APRIL GOLD RISES $3.70 TO $548/OZ IN MORNING TRADING

9:46 AM ET 3/9/06 MAY SILVER CLIMBS 13C, OR 1.3%, TO $9.975/OZ

[EuroObserver]

87. Gold not being allowed to breach $550 today, I see... n/t

[UpInArms]

54. 10:03 EST shooting for the moon on the good news!

Dow 11,036.96 +31.22 (+0.28%)
Nasdaq 2,278.09 +10.63 (+0.47%)
S&P 500 1,282.54 +4.07 (+0.32%)
10-Yr Bond 4.740 +0.06 (+0.13%)

NYSE Volume 287,178,000
Nasdaq Volume 309,679,000

(updated blather on edit)

10:00 am : Nine of the ten economic sectors are advancing, and they have helped take the indices higher. After lagging yesterday, the Materials sector (+0.9%) is leading trade. A host of analyst upgrades within the sector is helping to attract buyers. Ecolab (ECL 39.61 +3.13) is surging following its upgrade from Overweight from Equal Weight at Morgan Stanley. UBS upgraded Nucor (NUE 91.65 +2.80) to Buy from Neutral and raised their price target on the stock. Also, the firm upgraded U.S. Steel (X 56.70 +1.10) to Neutral from Reduce and raises their target on that stock. Further, rebounds in commodities prices are helping the sector. Of the metals, copper, gold, and silver are substantially higher.DJ30 +32.91 NASDAQ +11.58 SP500 +4.26 NASDAQ Dec/Adv/Vol 997/1349/169.5 mln NYSE Dec/Adv/Vol 1063/1514/62.1 mln

09:40 am : The momentum that developed late in the day Wednesday had carried over into futures trade, and the equity market opened slightly above the unchanged mark. There are a few factors lending support. Gains in foreign markets are helping to spur some optimism. Particularly, the Nikkei jumped 2.6% after the Bank of Japan announced that it will abandon its quantitative easing approach. Some moderation in 10-year note yields is also supportive, and the fact that the yield curve is currently out of inversion is a positive for stocks. On the corporate front, Johnson & Johnson's (JNJ) board authorized a share repurchase plan of up to $5 billion in common stock. Anticipation of tomorrow's jobs data, particularly the non-farm payrolls and hourly earnings portions, may help keep trade in check. Also, crude has rebounded 0.8% (to $60.52) and geopolitical concerns continue to weigh on the market. DJ30 +8.48 NASDAQ +4.79 SP500 +2.35

[UpInArms]

56. Jones New York cutting 323 jobs

http://www.phillyburbs.com/pb-dyn/news/111-03092006-623758.html

Jones New York will permanently lay off 323 employees from its Bristol Township plant beginning May 2, according to the Pennsylvania Department of Labor and Industry.

The layoffs will affect patternmakers, art directors, computer designers, quality control supervisors and research assistants, among other workers, according to the Worker Adjustment and Retraining Notification Act notice the state forwarded to the newspaper.

<snip>

The company’s Web site indicated that fourth quarter and year-end financial results for 2005 had been scheduled for release Feb. 15. Those results weren’t available on the site or from the company Wednesday.

<snip>

The company also took financial hits in the second quarter of 2005, according to the second-quarter earnings report. Among them: The company had to absorb a $4.6 million loss due to manufacturing problems at its denim plant in Mexico and a $3.2 million loss related to an arbitration award to a former employee. Both were unexpected expenses, the report said.

...more...

[UpInArms]

57. Rare $10,000 Bill Going to New York

http://kdka.com/watercooler/watercooler_story_068090737.html

(AP) GREEN BAY, Wisc. A rare $10,000 bill is getting a new home. The bill — one of 15 large-denomination bills at a Chase Bank branch in Green Bay — was shipped to the bank's corporate archives in New York for safe keeping.

The $10,000 bill bears the likeness of Salmon P. Chase, for whom the bank was named. Chase was a U.S. senator who served as treasury secretary under President Lincoln.

The large bill was discovered in a bank customer's safety deposit box after the owner died 20 years ago. The woman's family exchanged the currency at face value, and the bank stored the bill in a plastic sleeve for protection.

But bank officials decided the bills would be safer at the JP Morgan Chase & Co. corporate office in New York. The bank sent the bills there last month by armored truck.

The government stopped printing bills larger than $100 in 1945 and hasn't issued any since 1969. The Green Bay bills were printed in 1934.

...more...

[AnneD]

70. Why didn't they auction it off????

10k min bid....Sounds strange to me....

[EuroObserver]

89. The woman's family exchanged the currency at face value

Weird, yeah. This piece of paper would clearly have great rarity value to collectors. Maybe the family should cry foul, if there's still time.

[OrangeCountyDemocrat]

99. The Family Are Idiots...

There's not time. They're Stupid, and it's too late.

If I had done something that dumb, I wouldn't even want to look and see how valuable it really is. I wonder how rare and what it would be worth if they had listed it on EBay or through some other valuables site.

[RawMaterials]

110. The bank stole 1.7 million from this family at the very least

In 2004, $10,000.00 from 1934 is worth:
$141,202.50 using the Consumer Price Index
$116,404.72 using the GDP deflator
$356,650.94 using the unskilled wage
$65,731.23 using the GDP per capita
$1,777,924.24 using the relative share of GDP






http://eh.net/hmit/compare/result.php?use%5B%5D=DOLLAR&use%5B%5D=GDPDEFLATION&use%5B%5D=UNSKILLED&use%5B%5D=GDPCP&use%5B%5D=NOMINALGDP&amount2=10000&year2=1934&year_result=&amount=&year_source=

[OrangeCountyDemocrat]

116. That Can't Be Right

We're not really talking about $10,000 from 1934, we're still dealing with fiat currency.

It's the collectible value which is probably significant. Otherwise it's just like any other currency. A $1 bill issued in 1950 is still worth $1 in 2006. But it buys a heck of a lot less now than it did then. That's the inflation they don't like talking about.

[Systematic Chaos]

77. Give it another 10 years.

They won't be able to tack on the zeros quickly enough. :grr:

[UpInArms]

59. Bonner: America's Glorious Empire of Debt

http://www.321gold.com/editorials/bonner/bonner030606.html

Let us take a moment to stand back and gaze at America's great Empire of Debt. It is the largest edifice of debt ever put up. It sustains the most magnificent world economy ever assembled. It brings more wealth to more people than any system ever before devised.

Not only is it incomparably effective, it is also immeasurably entertaining. For it has its burnished helmets and flying banners; its intellectuals and its gladiators; its Caesars, Antonys, Neros, and Caligulas. It has its temples, its forum, its Capitol, its senators; its praetorian guards; its via Appia; its proconsuls, centurions, and legions all over the world as well as its bread and its circuses in the homeland and its costly wars in periphery areas.

The Roman Empire rested on a classical model of imperial finance. Beneath a complex and nuanced pyramid of relationships was a foundation of tribute formed with the hard rock of brute force. America's empire of debt, on the other hand, stands not as a solid pyramid of trust, authority, and power relationships, but as a rickety slum of delusion, fraud, and misapprehension.

"My tax guy has been bugging me...You know, real estate is where it is at." In June 2005, NBC quoted a young woman who had bought a second home at a Colorado resort. According to the report, more than a third of the houses sold in the previous 12 months were not primary residences, but second homes or investments.

Down at the bottom of the pyramid are petty agents spreading deceit and misinformation - such as the aforementioned "tax guy." You would think a young woman could trust her certified tax advisor to give her sound counsel. Instead, he urges her to get into the most bubbly property market in American history. Naturally, she went for it, aided no doubt by a whole industry of professional dissemblers. Press reports tell us that appraisers routinely stretch valuations to help close a deal. Mortgage lenders know perfectly well the appraisals are lies, but they wink at them with one eye while winking at the borrower's phony income declaration with the other. Again, according to the press reports, lenders no longer verify income claims. They have gone blind!

...more...

[UpInArms]

61. Dubai Ports completes P&O takeover; to keep U.S. separate

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BFAB822D3%2DDBE9%2D4DB4%2DB722%2D9F67814B81DF%7D&dateid=38785%2E4454059028%2D863481848&siteid=mktw&dist=newsfinder

LONDON (MarketWatch) -- Dubai Ports said in a statement to the London Stock Exchange that it's completed its acquisition of Peninsular and Oriental Steam Navigation, making it a top three global port operator, with 51 terminals in 30 countries, across 5 continents. "A review of our operations in the United States continues and we look forward to a timely resolution of any issues. We will continue to hold our U.S. operations separate while this process continues," the company said.

This is from the UAE that has threatened the US with economic "sanctions" if they don't get to take over our sensitive port operations.

What part of National Security does this mal-administration not understand? I am sick of Wack-O George threatening a veto so that he can hand over our country to his freakin' cronies.

[EuroObserver]

96. US CEOs fear fallout from ports furore

(FT) John Castellani, the president of the US Business Roundtable, has warned that renewed political attempts to block the takeover of port facilities could jeopardise both foreign investment and forthcoming trade negotiations.

The Roundtable, which represents 160 chief executives, used its strongest language yet to criticise Congress, saying the backlash against Dubai Ports World’s acquisition of five container terminals was “just another iteration of economic isolationism like the outsourcing debate was”.

“This issue is very troubling because the US needs foreign investment and we need to invest around the world,” said Mr Castellani in an online diary with FT.com.

“A lot of non-US companies who already own critical infrastructure in the US or are preparing to, such as Toshiba’s purchase of Westinghouse, must be worrying about this too.”

Corporate America has been relatively slow to defend the deal or warn of its broader trade implications after a fierce political backlash. In private, a number of chief executives have expressed unease about the principle of allowing Arab investment in sensitive US infrastructure facilities, echoing the wider political reaction.

But the business community’s public response is growing, and its leaders insist most US chief executives are deeply uncomfortable with what they regard as protectionist sentiment emerging in Washington.

...more...

Note: The UK (previous head office/ownership location for both these ports and Westinghouse) seems to somehow qualify as almost a part of USA these days... ed: as in "Airstrip One" :mad:

[EuroObserver]

98. Dubai gets approaches for its US terminals

(FT) The five US port terminals at the centre of a political fight between Republicans in Congress and President George W. Bush are drawing interest from potential buyers, according to people familiar with the situation.
...

Private equity groups have approached DP World about buying the US operations, people familiar with the matter said. Industry observers said logical candidates included Blackstone and Macquarie, the Australian bank. A sale of the assets by DP World would resolve what has emerged as one of the toughest political battles in George W. Bush’s presidency. In spite of a presidential threat to veto any legislation that would derail the deal, the House appropriations committee voted 62-2 to prohibit DP World from owning the ports.

The provision was attached to an emergency spending bill for Iraq and Hurricane Katrina that the full House will vote on next week and that Mr Bush will be reluctant to kill.

...more...

Or... another opportunity for Carlyle!! (though they may prefer to keep their heads down on this one...)

[EuroObserver]

104. LBN Breaking: Dubai divests itself of all American interests

(Basically the above story given some AP spin. ed: and a headline/soundbite that, as is customary in some parts, stretches the actual facts): "A Dubai-owned company said Thursday that it was prepared to give up its management stake in some U.S. ports"

DU LBN thread (with lots of comments already): http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2155938

[UpInArms]

63. Diebold moving some revenue to future years

http://www.myrtlebeachonline.com/mld/myrtlebeachonline/business/14042372.htm

NORTH CANTON, Ohio - ATM maker Diebold Inc. said Tuesday it will defer to future years some election systems revenue and earnings anticipated in service contracts.

The adjustment reduced previously announced fourth quarter and full-year 2005 earnings per share by 6 cents per share.

The company, whose subsidiaries include voting-machine maker Diebold Election Systems, said it became aware just before release of its fourth quarter and full year 2005 result, of a possible adjustment related to some election systems revenue in the fourth quarter.

Contracts in a number of areas are likely to result in revenue posted later than expected, the parent company said.

...more...

hmmmm....

[OrangeCountyDemocrat]

66. The Way I Read This....

We're having problems selling our Fraudulent & Hackable election machines, so we're just going to defer the income(read LOSS) from that area, to future years, so that it doesn't impact the bottom line in the short run.

Why don't these things work for people like me? I'm always wanting to defer my losses to future years, but something about reality forbids that. A client left me a couple of weeks ago....but I won't bother to think about that for another few years.

[wordpix2]

94. check out this thread: Legal proceedings vs. Diebold in FL (vote machines)

LEGAL PROCEEDINGS LAUNCHED AGAINST DIEBOLD IN FLORIDA!

Leon County Election Supervisor Alleges 'Breach of Contract' After Security Test Revealed Hackable Elections Possible on Diebold Optical-Scan Systems!

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2154135&mesg_id=2154135

http://www.miami.com/mld/miamiherald/14034640.htm

[UpInArms]

71. US household wealth rose in fourth quarter, 2005 (for top 1%?)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-09T170233Z_01_WAT005023_RTRIDST_0_ECONOMY-FUNDS-URGENT.XML

WASHINGTON, March 9 (Reuters) - The net wealth of American households rose in the fourth quarter of 2005 as real estate and financial assets gained value, while growth in household debt slowed slightly, the Federal Reserve said on Thursday.

In its quarterly "Flow of Funds" report, the central bank said household balance sheet values rose to $52.11 trillion in the quarter, up from a revised $50.96 trillion in the third quarter and $48.25 trillion in 2004.

The third-quarter net worth was originally reported at $51.09 trillion. The data is not seasonally adjusted.

Elsewhere in the report, the Fed said borrowing outside the financial sector rose at an annual rate of 9.5 percent in the fourth quarter, a slight slowdown from the third quarter's 9.6 percent pace.

Household borrowing rose at an 11.0 percent annual rate in the final three months of 2005, down from a 12.4 percent pace in the third quarter, the Fed said.

<snip>

Household borrowing increased 11.7 percent last year, the largest gain since a 15.8 percent rise in 1985, the Fed said.

...more...

[UpInArms]

73. U.S. household debt up 11.7% in 2005

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BCA099F2E%2D7443%2D444A%2DA06A%2D8C1631FD20BA%7D&dateid=38785%2E5042969676%2D863494604&siteid=mktw&dist=newsfinder

WASHINGTON (MarketWatch) - Fueled by mortgage borrowing, U.S. households' debt increased 11.7% to a record $11.5 trillion in 2005, the fastest growth since 1985, the Federal Reserve reported Thursday. Total financial debt in the U.S. economy grew 9.5% to a record $26.4 trillion in 2005, the biggest increase since 1986, the Fed said in its quarterly flow of funds report. Corporate borrowing increased 7.8% to $8.4 trillion, the biggest increase since 2000. Net worth of U.S. households - assets minus liabilities - increased 8% to a record $52.1 trillion at the end of 2005. It was the slowest growth in net worth since a 4% decline in 2002.

12:02 PM ET 3/9/06 U.S. MORTGAGE DEBT RISES 14.1% IN 2005 TO $8.7 TRILLION

12:02 PM ET 3/9/06 U.S. HOUSEHOLD REAL ESTATE HOLDINGS UP 15% TO $21.6 TRILLION

12:02 PM ET 3/9/06 U.S. HOUSEHOLD NET WORTH UP 8% IN 2005 TO $52.1 TRILLION

12:02 PM ET 3/9/06 U.S. HOUSEHOLD DEBT UP 11.7% IN 2005, MOST SINCE 1985

12:02 PM ET 3/9/06 U.S. FINANCIAL DEBT UP 9.5% IN 2005, MOST SINCE 1986

[UpInArms]

90. U.S. household debt up most in 20 years

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B1E78F574%2D16D7%2D46AE%2D8D23%2DEC479D355E02%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- U.S. households took on debt at the fastest pace in 20 years in 2005, fueled by a housing boom that boosted their net worth to a record $52.1 trillion, the Federal Reserve said Thursday.

The Fed's quarterly flow of funds report shows the explosion of debt in the U.S. economy continued in 2005, with net savings in the economy falling below 1% of gross domestic product for the first time on record.

Led by a surge in mortgage borrowing, U.S. households' debt increased 11.7% to record $11.5 trillion in 2005, the fastest growth since 1985, the Fed said. Read the full report.

Total financial debt in the U.S. economy grew 9.5% to a record $26.4 trillion in 2005, the biggest increase since 1986, the Fed said. Corporate borrowing increased 7.8% to $8.4 trillion, the biggest increase since 2000.

Federal government borrowing increased 7% in 2005, the slowest growth since a four-year run of net debt paybacks ended in 2001.

Net worth of households growing at slower pace

The net worth of U.S. households -- assets minus liabilities -- increased 8% to a record $52.1 trillion at the end of 2005. It was the slowest growth in net worth since a 4% decline in 2002.

...more...

[UpInArms]

72. GM withdraws bid to join Delphi creditor committee (GM viewed as adversary

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-09T165919Z_01_N09516384_RTRIDST_0_AUTOS-DELPHI-COMMITTEE.XML

CHICAGO, March 9 (Reuters) - General Motors Corp. (GM.N: Quote, Profile, Research) has withdrawn a request to join the creditors committee for the bankruptcy of auto parts maker Delphi Corp. (DPHIQ.PK: Quote, Profile, Research), citing committee objections, GM said in court papers.

GM, in talks with Delphi and Delphi's unions over the parts maker's plans to slash wage and benefit costs, had argued that its appointment to the committee would be constructive and would facilitate negotiations toward an agreement.

"Unfortunately, it is clear from the responses ... that General Motors is viewed as an adversary," GM lawyers said in court papers filed on Wednesday. GM said it disagreed with this view but added that membership on the committee might be counterproductive, given the opposition.

In an objection filed with the court, the committee had said GM's presence would "cripple if not destroy" its ability to maximize returns for unsecured creditors of Troy, Michigan-based Delphi.

...more...

[UpInArms]

109. GM, Ford face unprecedented finl, ops challenges this yr-S&P

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BBF78EE9E%2D5157%2D40D8%2D95EB%2DA88D8BCEEB89%7D&dateid=38785%2E634603831%2D863523103&siteid=mktw&dist=newsfinder

SAN FRANCISCO (MarketWatch) -- General Motors Corp. (GM 21.33, +0.92, +4.5% ) and Ford Motor Co. (F 7.74, +0.19, +2.5% ) will face unprecedented financial and operational challenges in 2006 as they fight to turn around their ailing performance in the critical North American market, Standard & Poor's said Thursday in a report looking at the two automakers. The agency said it believes that if they cannot reverse the negative trends that have buffeted them, GM could ultimately have to restructure its debt and contractual obligations, while a somewhat healthier Ford could suffer from the price actions of its competitors. "These turnarounds will be difficult and time is short," said the author of the report, S&P credit analyst Robert Schulz. "Both Ford and GM have already begun broad multiyear restructurings to cut costs. Those efforts will be critical in further evaluating both credits."

[ozymandius]

75. lunchtime check-in

12:27
Dow 11,017.27 +11.53 (+0.10%)
Nasdaq 2,266.45 -1.01 (-0.04%)
S&P 500 1,279.33 +0.86 (+0.07%)
10-Yr Bond 47.53 +0.19 (+0.40%)
NYSE Volume 1,023,365,000
Nasdaq Volume 980,994,000

12:00 pm : Building off of yesterday's late-day momentum, the equity market is advancing. At this point, eight of the ten economic sectors are trending positively, and each of the major averages are sustaining moderate gains.

There are several factors that are helping to motivate buyers. Following the Energy Department's report that natural gas supply declined less than expected last week, energy prices extended their pullbacks. Just recently, crude again reversed course, but it is up a modest 0.2% and trading just over $60 per barrel. Its reversal took some steam out of the Discretionary sector, but it also helped Energy pare its loss to 0.3%. With respect to the former sector, General Motors (GM 21.24 +0.82) is its support today. The company said that it and Delphi are on the verge of achieving a cost-cutting pact with the UAW.

Another factor is the Treasury market. Bond yields remain in the stock market's spotlight, and the fact that the 10-year's yield has somewhat moderated is helping sentiment. Further, the yield curve is moving out of inversion. Yesterday marked the first time since late January that the 10-year's yield trumped the two-year's yield. On a somewhat related note, Japan is capturing much attention today. The Nikkei jumped 2.6% following the Bank of Japan's decision to abandon its five-year deflation-fighting policy. The move demonstrates the central bank's confidence in the country's economic turnaround, and supports our view that investors should continue to seek exposure to the Japanese market. The BOJ siad policy will remain accomodative and interest rates will be kept at very low levels. The news, and the Nikkei's relief-rally, has been supportive to trade today.

Recoveries in metal commodities have sent buyers back to the Materials sector. Several analyst upgrades are further helping to drive that sector's 0.7% advance. Namely, UBS upgraded Nucor (NUE 90.60 +1.85) and U.S. Steel (X 55.97 +0.37), and Morgan Stanley upgraded Ecolab (ECL 39.04 +2.56). Telecom (+0.9%) continues its outperformance, as does the Consumer Staples (+0.5%) sector. On account of broad-based strength, Technology is lending an influential 0.4% gain and the Nasdaq is attempting to end its five-day losing streak. Semiconductors have rebounded, and communication equipment stocks are faring well. Following Intuit's (INTU 51.96 +3.45) raised guidance, application software is advancing. Microsoft (MSFT 27.29 +0.04) is garnering some added attention due to the unveiling of its Origami project. The basis for our Overweight view on Technology is an emerging secular trend towards what we've deemed "everything portable, everything digital," which Microsoft's latest product exemplifies.DJ30 +22.18 NASDAQ +2.05 SP500 +1.82 NASDAQ Dec/Adv/Vol 1254/1589/942.4 mln NYSE Dec/Adv/Vol 1163/1911/596.9 mln

[ozymandius]

79. blather: Leadership has faded

12:48
Dow 11,009.27 +3.53 (+0.03%)
Nasdaq 2,261.90 -5.56 (-0.25%)
S&P 500 1,277.47 -1.00 (-0.08%)
10-Yr Bond 47.55 +0.21 (+0.44%)
NYSE Volume 1,117,435,000
Nasdaq Volume 1,069,794,000

12:30 pm : Leadership has faded, and the indices are now trading in mixed fashion near the flat line. Materials continues to sport a session-leading gain, but its +0.8% is having a minimal effect on the broader market since the sector comprises just 3% of the S&P 500. The Tech sector had been one of the market's best sources of support all morning, but buying has subsided and it's now up a modest 0.2%. Oil's advance has helped stifle the market's steam. Crude futures are now up 0.6% to $60.40 per barrel. Despite the uptick, the Energy sector (-0.5%) has not managed to catch a bid and continues to weigh on the market. DJ30 +8.00 NASDAQ -2.66 SP500 +0.06 NASDAQ Dec/Adv/Vol 1384/1482/1.05 bln NYSE Dec/Adv/Vol 1359/1736/681.4 mln

[UpInArms]

80. US 30-year mortgage rates highest since mid-November

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-09T172223Z_01_N09441035_RTRIDST_0_ECONOMY-MORTGAGES.XML

WASHINGTON, March 9 (Reuters) - Average interest rates on U.S. 30-year fixed rate mortgages rose in the latest week to their highest levels since mid-November, according to a survey released by mortgage finance company Freddie Mac on Thursday.

Rates on 30-year mortgages rose to an average of 6.37 percent -- the highest since a matching rate in the Nov. 17, 2005 week -- from 6.24 percent last week.

Fifteen-year mortgages also rose to an average of 6.00 percent in the week from 5.89 percent last week, Freddie Mac said. These have not averaged 6 percent or above since the week ended July 12, 2002.

One-year adjustable rate mortgages averaged 5.45 percent, also up from 5.34 percent a week earlier.

A year ago, 30-year mortgages averaged 5.85 percent, 15-year mortgages 5.38 percent and the one-year ARM 4.24 percent.

"Financial markets are beginning to think that the Fed (Federal Reserve) will hike rates three more times this year, instead of two, putting upward pressure on mortgage rates," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

...more...

[UpInArms]

111. CORRECT: 30-year mortgage rate at over 2 1/2-year high

http://www.marketwatch.com/News/Story/Mortgages?siteid=mktw&dist=morenews

(Correction: The original version of this story stated that the 30-year rate was the highest since Aug. 2, 2002, a nearly four-year high. The 30-year rate is the highest since Sept. 5, 2003, a two-and a-half year high.)

LOS ANGELES (MarketWatch) -- After two weeks of declines, long-term mortgage rates turned sharply north in the week ending Thursday, with 30-year rates hitting the highest level in over two and a half years.

The increase put the benchmark 30-year mortgage at a national average of 6.37%, up from 6.24% a week earlier, and the highest level since Sept. 5, 2003 when it averaged 6.44%. Last year at this time, the loan averaged 5.85%.

Frank Nothaft, Freddie Mac vice president and chief economist, said stronger-than-expected gains in manufacturing and service industries, coupled with higher labor costs, "ignited inflation concerns," which led to higher mortgage rates this week.

"Financial markets are beginning to think that the Fed will hike rates three more times this year, instead of two, putting upward pressure on mortgage rates," he said.

The average on the 15-year mortgage, a popular refinancing option, was 6%, up from last week's average of 5.89%. A year ago, the 15-year averaged 5.38%.

...more...

[ozymandius]

85. Love's gone.

1:14
Dow 10,987.09 -18.65 (-0.17%)
Nasdaq 2,256.39 -11.07 (-0.49%)
S&P 500 1,275.45 -3.02 (-0.24%)
10-Yr Bond 47.48 +0.14 (+0.30%)
NYSE Volume 1,230,559,000
Nasdaq Volume 1,170,461,000

1:00 pm : The market is vacillating around the unchanged mark. Selling across the Energy sector (-0.7%) has increased, and the influential Financial (-0.1%) and Technology sectors (-0.2%) are both now sporting losses. The yield on the 10-year note recently rose to 4.75%, and banks are now facing selling pressure. With respect to Tech, semiconductors have erased their morning gain. National Semi (NSM 27.60 -0.43) is particularly weak spot. The company recently released its fiscal third quarter earnings report. Although NSM delivered EPS that beat the consensus estimate by six cents, posted better than expected revenues, expanded its gross margin, and issued upside Q4 revenue guidance, investors appear disappointed. DJ30 -2.14 NASDAQ -5.07 SP500 -1.02 NASDAQ Dec/Adv/Vol 1519/1375/1.16 bln NYSE Dec/Adv/Vol 1445/1670/765.0 mln

[UpInArms]

97. 2:07 EST Faeries have reported for duty

Dow 11,002.68 -3.06 (-0.03%)
Nasdaq 2,262.12 -5.34 (-0.24%)
S&P 500 1,277.60 -0.87 (-0.07%)
10-Yr Bond 4.750 +0.16 (+0.34%)

NYSE Volume 1,440,732,000
Nasdaq Volume 1,372,276,000

(updated blather on edit)

1:30 pm :2:00 pm : The indices have bounced from recently hit lows, but they remain on negative turf. At this point, the Dow is performing best. General Motors (GM 21.24 +0.82) continues to serve as its best source of support. Traders have sent the stock 4% higher after The Wall Street Journal reported that Delphi and GM are nearing an agreement on the broad points of a potential cost-cutting deal with the UAW union. Reports of the UAW's assertion that an agreement is not near does not seem to be tempering buying. Boeing (BA 74.10 +1.28) is the Dow's other bright spot, following news that it booked an order for six 737s from Pegasus Airlines for $406.5 million. Despite those stocks' gains, the Dow remains lower as two-thirds of its constituents are levying losses.DJ30 -18.89 NASDAQ -9.24 SP500 -2.72 NASDAQ Dec/Adv/Vol 1634/1304/1.39 bln NYSE Dec/Adv/Vol 1637/1524/949.0 mln

Selling has picked up, and each of the three major indices are now well below the unchanged mark. Materials (+0.3%), Consumer Staples (+0.1%), and Telecom (+0.4%) are the sectors maintaining gains - each of which are well-pared from earlier levels. Crude has hit a fresh session-high of $60.60 per barrel, which reflects a 1% gain. Geopolitical issues continue to affect energy trade and the market in general. OPEC's decision yesterday to leave production quotas in place was dictated by supply concerns that particularly relate to Nigeria and Iran. Today, reports indicate that Nigerian terrorists engaged soldiers in an attempt to capture a fuel tanker. That news is helping to drive crude's advance.DJ30 -30.26 NASDAQ -12.18 SP500 -4.15 NASDAQ Dec/Adv/Vol 1674/1260/1.28 bln NYSE Dec/Adv/Vol 1621/1508/859.5 mln

[UpInArms]

100. Newspapers Watch Knight Ridder Auction

http://news.yahoo.com/news?tmpl=story&cid=509&e=19&u=/ap/20060309/ap_on_bi_ge/knight_ridder

NEW YORK - The auction process for Knight Ridder Inc., which winds down this week, is a moment of reckoning for the newspaper industry, a time when one of their biggest players will find out just what others are willing to pay for it.

However, the bidding also presents a thorny dilemma for newspaper companies themselves as they prepare their final offers, which are due on Thursday, for the publisher whose 32 daily newspapers include The Philadelphia Inquirer, The Miami Herald and the San Jose Mercury News.

If big newspaper owners such as Gannett Co. don't step up and make what investors believe to be a strong bid, pessimists might take it as a sign of waning confidence in the future prospects of an industry that many already believe to be in decline. On the other hand, paying a rich price could also lead investors to punish the acquiring company. "It's a Catch-22," says Merrill Lynch newspaper analyst Lauren Rich Fine.

San Jose, Calif.-based Knight Ridder has been mum about the bidding process all along, and declined again on Wednesday to make any comment.

Industry leader Gannett, Sacramento, Calif.-based McClatchy Co. and privately held MediaNews Group Inc., based in Denver, are all considered likely contenders but have given no outward sign of their intentions. Gannett and McClatchy both declined to comment, and MediaNews didn't return a call seeking comment.

...more...

[UpInArms]

108. 3:13 EST Faeries drunk - exits getting crowded

Dow 10,965.32 -40.42 (-0.37%)
Nasdaq 2,253.36 -14.10 (-0.62%)
S&P 500 1,272.71 -5.76 (-0.45%)
10-Yr Bond 4.732 -0.02 (-0.04%)

NYSE Volume 1,714,402,000
Nasdaq Volume 1,620,524,000

3:00 pm : The recent upward attempt was short-lived. Each of the indices have sunk back near session-lows. The market lacks leadership, and it is pressured by declines in six sectors. Two others, Industrials and Materials, are sitting on the flat line. The Telecommunication sector is continuing its year-to-date outperformance, but its gain today (+0.4%) is modest. Moreover, the sector accounts for just 3.0% of the S&P 500, and is having little effect on the broader market. Consumer Staples (+0.2%) remains a bright spot, as defensive areas of the market continue to attract investors, but its gain is similarly modest and muted.DJ30 -22.49 NASDAQ -8.68 SP500 -3.17 NASDAQ Dec/Adv/Vol 1639/1340/1.59 bln NYSE Dec/Adv/Vol 1567/1615/1.11 bln

[UpInArms]

112. US junk bond funds report $185 mln weekly outflow (5th wk of outflows)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-09T202720Z_01_N09206429_RTRIDST_0_FINANCIAL-JUNK-AMG-URGENT.XML

NEW YORK, March 9 (Reuters) - U.S. junk bond mutual funds reported $185.1 million of net outflows in the week ended March 8, up from a $3.6 million outflow the prior week, AMG Data reported on Thursday.

It was the fifth straight week of outflows from the funds and came as a rally in junk bonds began to falter. Hurt by rising interest rates, junk bonds have posted a loss of 0.37 percent this month, although they are still up 1.85 percent for the year, according to Merrill Lynch data.

Junk bonds are rated below investment-grade and carry high yields to compensate for their risk.

[UpInArms]

113. Another Shill Outed: Chris Matthews

Report posits that Chris Matthews has accepted hefty speaking fees from conservative groups

A new report advanced to RAW STORY Thursday suggests that Chris Matthews, the star of the MSNBC's daily talk show Hardball, has accepted hefty speaking fees from an array of conservative trade associations.

Matthews has given speeches to at least ten major conservative trade associations since 2001. The report's author, Dave Johnson, who blogs at Seeing The Forest and is also a fellow at the progressive Commonweal Institute, could find no records indicating that Matthews has spoken before any Democratic-leaning organizations. The report is not a product of the Commonweal Institute.

<snip>

Matthews is listed at a speaking bureau known to command hefty fees. While it can't be proven whether Matthews has taken money from the groups, speaking fees are a regular practice for large trade organizations who invite big-name media stars to speak to their memberships. Such fees typically run in the five-figure range, and occasionally exceed $50,000 per engagement.

Among the groups included: the International Franchise Association; the National Association of Chain Drug Stores; the National Association of Convenience Stores; the American Hospital Association; the Consumer Healthcare Products Association; the National Venture Capitalists Association; the Mortgage Bankers Association; the Credit Union National Association; the American Society of Association Executives; and the International Health and Racquet & Sportsclub Association.

The report, available here, notes that these associations have given heavily to conservative candidates for public office.

...more...

[trogdor]

115. At FARK, this would have gotten an OBVIOUS tag.

I mean, anyone who remembers how Chris sounded when covering the Republican National Convention as Bush accepted his party's nomination for another term - as if he were about to spooge his pants - would see how obvious this is.

[UpInArms]

114. Group calls for study of 'punitive' SEC enforcement

What? These folks just figured out that they are funding all that government "regulation" that keeps them paying those fees and fines?

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD485B7AC%2DD0C8%2D4213%2DA016%2D5B82E0780B3C%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- A leading business group is calling for the Securities and Exchange Commission to study whether its enforcement process and practices are too harsh, and to make changes where appropriate.

The U.S. Chamber of Commerce, which represents more than three million companies, complains the SEC's long-vaunted enforcement program is pursuing some cases it shouldn't and has "taken on an increasingly punitive tone."

The business group issued a report Thursday containing more than a dozen recommendations on SEC enforcement, which it says seems "more adversarial and less objective" than in the past, and focused on imposing stiff fines on companies and individuals.

Basic legal protections are being threatened as companies under SEC investigation feel "intense pressure" to waive attorney-client privilege and work-product protections, the report states. The chamber said executives feel if they resist, they won't receive credit for cooperating with investigators, and it urged the SEC to clarify that such waivers aren't required for companies to be deemed to be cooperative.

Lack of cooperation can be costly: Banc of America Securities was fined $10 million in 2004 for failing to produce documents quickly to regulators, an action then-SEC enforcement director Stephen Cutler said sprang entirely from its "uncooperative conduct" during the probe, according to the report. The chamber called for an end to such penalties.

...more...

back to that chart - where's that money coming from :eyes:

[Roland99]

119. Punitive? Sheeeeeet. Imagine if Paul O'Neill had had his way.

[AnneD]

121. This is not so rhetorical a question...

but refresh my memory.....Isn't the Chamber of Commerce almost nothing but a GOP lobbying group. And don't they set the 'legislative' agenda by virtue of their campaign donations.......I seem to remember :think:

[ozymandius]

123. If you want to know what Bush's agenda is,

you need to ask the Chamber of Commerce. They always know his agenda before he does.

[ozymandius]

118. closing numbers

Dow 10,972.28 -33.46 (-0.30%)
Nasdaq 2,249.72 -17.74 (-0.78%)
S&P 500 1,272.23 -6.24 (-0.49%)
10-Yr Bond 47.30 -0.04 (-0.08%)
NYSE Volume 2,140,021,000
Nasdaq Volume 1,957,563,000

blather to follow

[ozymandius]

124. blather

4:20 pm : Momentum from yesterday's late-day rally carried forth into today's session, but it did not last. Investors grappled with an array of items, and sellers eventually dominated. Leadership lacked, and each of the indices registered losses.

A 1.0% rise in the price of crude helped to take the steam out of the market. The Energy Department's report that natural gas supply last week fell less than expected initially sent energy prices lower. With the extension of their pullbacks, the market benefited. Reports that Nigerian terrorists engaged soldiers in an attempt to capture a fuel tanker, which came on the heels of yesterday's geopolitically-driven OPEC decision, weighed on the market. Crude rallied, and gasoline and heating oil also rose. That action squelched gains across the market, particularly in the Consumer Discretionary sector (-0.4%). At the same time, it did not spark any buying in the Energy sector, which would have potentially served as an offsetting factor. Energy fell 0.9% and weighed heavily. Tech was another influential sore spot. Google (GOOG 343.00 -10.88) was a drag, following news that it will pay $90 million to settle a click fraud lawsuit. Semiconductors were also weak, despite upside earnings and guidance from National Semi (NSM 27.18 -0.85).

Recoveries in metal commodities had helped the Materials sector (-0.2%), but its gain was erased by the bell. Several analyst upgrades (on NUE, X, and ECL) were supportive. Telecom (+0.3%) continued its outperformance today, and Consumer Staples (+0.2%) also clung to a gain. Those two sectors' modest contributions were muted by wide-spread selling, though.

The Treasury market remained in the stock market's spotlight. Some moderation in the 10-year note's yield was another factor behind the early, upbeat sentiment. Additionally, the yield curve had managed to stay out of inversion after exiting that yesterday. By the end of the day, though, the 10-year fell to a 4.72% yield and the curve flattened. Rate-sensitive areas of the market did not fare well. Pressured by banks, Financials declined a heavy 0.6%. The Utilities sector fell 0.5%, and homebuilders contributed to the Discretionary sector's weakness. Within the latter sector, General Motors (GM 21.28 +0.86) was its support. Reports indicated that it and Delphi are nearing a cost-cutting pact with the UAW. Reports also indicated that the UAW asserted that an agreement is not near, but GM still rose more than 4%. Boeing (BA 73.76 +0.94) was the Dow's other source of support, and helped limit the Industrials (-0.2%) sector's slide. The catalyst was news that the company received a new $406.5 million jet order. Speaking of the Dow, Johnson & Johnson's (JNJ 58.31 -0.43) board authorized a repurchase program of up to $5 billion in common stock.

Japan garnered a lot of attention today. The Bank of Japan announced its decision to abandon its five-year deflation-fighting policy. The move demonstrates the central bank's confidence in the country's economic turnaround, and supports our view that investors should continue to seek exposure to the Japanese market. The Nikkei jumped about 2.6%, and that bullish response was another factor behind early domestic gains. At the same time, the global interest rate environment continues to concern the market, and there is some degree of uncertainty over Japan's monetary policy.

Anticipation of tomorrow's employment data also helped keep the market in check. Economists are expecting a solid report. Given that expectations for Fed policy are well set, this is a time when stronger economic numbers are likely to be interpreted positively by the stock market. However, much focus will be placed on the hourly earnings portion. If the bond market sees that read as inflationary, that market is apt to weigh upon the stock market.

With respect to today's economic calendar, two items were featured. Initial Claims rose 8,000 to 303,000 - the first time in seven weeks that they have crept above the 300,000 mark. Still, initial claims remain at very low levels. Second, the trade deficit widened to $68.5 billion. Neither data had much effect upon trade today. DJ30 -33.46 NASDAQ -17.74 SP500 -6.24 NASDAQ Dec/Adv/Vol 1782/1213/2.07 bln NYSE Dec/Adv/Vol 1785/1447/1.55 bln