STOCK MARKET WATCH, Tuesday March 27

[ozymandius]

Source: DU

Tuesday March 27, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 664 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2283 DAYS
WHERE'S OSAMA BIN-LADEN? 1987 DAYS
DAYS SINCE ENRON COLLAPSE = 1947
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 9
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

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

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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 26, 2007

Dow... 12,469.07 -11.94 (-0.10%)
Nasdaq... 2,455.63 +6.70 (+0.27%)
S&P 500... 1,437.50 +1.39 (+0.10%)
Gold future... 663.90 +6.60 (+0.99%)
30-Year Bond 4.78% -0.02 (-0.33%)
10-Yr Bond... 4.59% -0.03 (-0.56%)






GOLD, EURO, YEN, Loonie and Silver

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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

---

Read more: DU

[ozymandius]

1. Today's Market WrapUp

Driven To Fudge Numbers
BY ROB KIRBY

Much has been written lately regarding the woes of the North American Auto Industry and why they seemingly cannot compete.

Reasons proffered as to why the North American auto industry has fallen upon such hard times run the gamut from quality issues to aging work forces to greedy unions.

One of the less talked about or ignored issues that has greatly impacted the plight of the auto industry is the misreporting of inflation - thanks to financial shenanigans by Central Bankers like the Federal Reserve.

-cut-

Experts who currently ‘reconstruct’ inflation data – to resemble the same methodology as that used even 15 years ago - have concluded that real inflation is under reported (conservatively) by 500 basis points per year. John Williams of Shadow Government Statistics is one such expert. He has done brilliant work in this area of economics research.

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

[Demeter]

3. It Doesn't Help That 80% of the cars on the road are Japanese or Korean

and that's in Ann Arbor, Michigan by my eyeball cursory survey.

[Double T]

6. It would be great to have the REAL inflation rate instead of the...........

conjured up bushco voodoo economics phony baloney inflation rate.

[burf]

23. They could also report the real unemployment rate n/t

[Hugin]

30. Seconded, burf.

:thumbsup:

[Double T]

53. Wouldn't THAT be a scary number!!!

[AnneD]

42. Morning Marketeers....

:donut: and lurkers. There is a shocker. An economic report biased on facts and telling the truth. I don't know if the rest of Wall Street could handle it. They are so use to flim flam.

I had a thought about the 'housing bubble'. I act my wage. I work hard and try to pay my debts on time but for the last 6+ years, all the houses that I have wanted to buy were beyond my means. Now I am not extravagant, just a 3-2 in a decent neighbourhood. Every where I went, folks were trying to sell me Mc Mansions. Of course I would love one, but it was beyond my salary range. Decent and affordable housing was not to be had. Unlike many, I did not fall into the ARM trap that many folks innocently did. Everyone is quick to blame the consumer that is trying to put a roof over their head, but frankly, the builders and bankers have a bit of blame in this too. Building inflated value homes to boost the profit margins and then using predatory lending practices and palming them off as accepted and responsible business practices is inexcusable.
If someone really wanted to make a killing building houses-build affordable housing, because when a School Nurse and her Security Guard husband that want to buy a house can't find a descent affordable home within their budget-there is something wrong with the industry.

[Double T]

54. Welcome to the reality of the bushco economic boom............

ALL hat and NO saddle, if you know what I mean. Your day will come AFTER 'WE' remove the scourge residing at the WH; reality will be sweet once again.

[ozymandius]

2. Today's Report

10:00 AM Consumer Confidence Mar
Briefing Forecast 108.5
Market Expects 109.0
Prior 112.5

http://biz.yahoo.com/c/e.html

[Ghost Dog]

38. Declining Consumer Confidence

10:00 AM Consumer Confidence Mar
Actual 107.2
Briefing 108.5
Expected 109.0
Previous 111.2
Revised From 112.5

[Ghost Dog]

40. Consumer Confidence Index Fell to 107.2 in March

http://www.bloomberg.com/apps/news?pid=20601205&sid=aWV3YAuIRz4A&refer=consumer

March 27 (Bloomberg) -- Confidence among U.S. consumers slid this month from a five-year high as fuel prices rose and concern about home foreclosures spread.

The New York-based Conference Board's index of consumer confidence fell to 107.2 from 111.2 in February. The index averaged 105.9 in 2006.

The report also showed more Americans said jobs were plentiful than at any time in more than five years. Increasing pay may shield consumers from the brunt of the housing slump, helping to maintain spending and preserve the economic expansion. Gasoline prices and mounting mortgage defaults pose potential threats to the economy should unemployment turn higher.

Consumers have ``reasonable income growth,'' Rudy Narvas, a senior economist at 4Cast Inc. in New York. ``I don't think we should be too concerned about the consumer.''

Economists forecast the confidence index to fall to 108.5 from an originally reported 112.5 the prior month, according to the median of 67 forecasts in a Bloomberg News survey. Forecasts ranged from 100 to 112.5. February's reading was the highest since August 2001.

U.S. Treasury securities trimmed losses after the report. The yield on the benchmark 10-year note, which moves inversely to price, was at 4.61 percent at 10:09 a.m. in New York, compared with 4.60 percent late yesterday.

/...

[Ghost Dog]

41. Consumer confidence falls more than expected in March amid rising gas prices

http://business.bostonherald.com/businessNews/view.bg?articleid=191148
By Associated Press

NEW YORK - Consumer confidence dropped more than expected in March, sending the widely watched index to its lowest level since November, as shoppers became anxious about a run-up in gasoline prices and stock market turbulence.

The New York-based Conference Boardsaid Tuesday that its Consumer Confidence Index fell to 107.2, down from the revised 111.2 in February. Analysts had expected a reading of 109. The March index was the lowest since November 2006 when the reading was 105.3.

In a statement, Lynn Franco, director of the Conference Board Consumer Research Center, said that despite diminished expectations, consumers’ assessment of the economy was steady and the report does not ”suggest a weakening in economic conditions.”

”The recent turmoil in financial markets coupled with the run-up in gasoline prices may have contributed to consumers’ heightened sense of uncertainty and concern. The direction of both components over the next few months bears watching to determine whether this decline is just a bump in the road or something more substantial,” Franco said.

Economists closely monitor consumer confidence because consumer spending accounts for two-thirds of all U.S. economic activity.

/...

[ozymandius]

4. Crude oil near 3-month high

SINGAPORE - Oil prices were flat in Asian trading Tuesday, hovering near three-month highs, amid lingering tension over Iran's detention of 15 British naval personnel.

Light, sweet crude for May delivery on the Nymex fell a cent to $62.90 a barrel in electronic trading mid-afternoon in Singapore, a day after it rose as high as $63.30 a barrel in New York, a level not seen for the front-month contract since Dec. 21.

Brent crude delivery for May gained 5 cents to $64.46 a barrel on the ICE Futures exchange in London.

Iran detained the sailors and marines Friday, triggering concerns it may lead to a cut in Persian Gulf exports and from Iran, the Organization of Petroleum Exporting Countries' second-largest producer behind Saudi Arabia.

http://news.yahoo.com/s/ap/oil_prices

[ozymandius]

5. Cairn Energy drills 82 million-dollar loss

LONDON (AFP) - British oil firm Cairn Energy said Tuesday that it made a net loss of 82 million dollars (61.5 million euros) in 2006 after downgrading the energy reserves estimates at its Sangu field in Bangladesh.

The loss compared with profit of 79 million dollars in 2005, Cairn Energy said in its earnings statement.

very short

[ozymandius]

7. Subprime bust forces families from homes

-excerpt-

There will always be people who fall behind on loans.

But "house prices are no longer the lifesaver they were for people in good times," says Ellen Schloemer of the Center for Responsible Lending, which recently projected a sharp rise in subprime foreclosures in the next few years.

Now, owners in trouble are living in homes that may be worth substantially less than they owe. They can't sell or refinance. They are ensnared in loans whose costs keep rising.

It is a vortex that's difficult to escape. Schloemer calls it "the perfect storm."

http://news.yahoo.com/s/ap/20070325/ap_on_bi_ge/house_of_cards

[ozymandius]

8. Subprime crisis exposes mortgage scams

MIAMI (Reuters) - Gabriellee Cunningham had fallen behind on the mortgage on her modest suburban Miami home and was mired in debt when she was approached in June by a door-to-door "mortgage lender" who promised to help her.

Nine months later, her $89,000 mortgage has ballooned into a $234,000 loan, her monthly payments have doubled and she faces foreclosure on a house she no longer owns.

Housing officials call Cunningham the victim of one of the worst cases of predatory lending they've ever seen and warn, as the U.S. subprime mortgage crisis grows, of a rising tide of scams in which homeowners are being cheated out of their home equity.

"I know I did something stupid but I am going to fight these people 'til my last breath because they are trying to rob me," said Cunningham, 48, who works at three jobs. She says she fell behind on her payments while trying to fund college educations for two daughters.

http://news.yahoo.com/s/nm/20070326/us_nm/usa_subprime_scams_dc_1

[Roland99]

18. Well now, if college education at a state college were funded by the gov't (instead of bombs).....

*sigh*


BTW, heard on the news overnight that Florida leads the nation in foreclosure rates. It's doubled since last year.

[Maeve]

24. Hmmm...and I thought Ohio was still the leader

And it has quintupled since 1995, according to a Columbus Dispatch article today

Here's a link http://www.dispatch.com/dispatch/content/business/stories/2007/03/27/Ohioforeclosures.ART_ART_03-27-07_A1_CD66UGD.html

[Roland99]

25. CNNMoney: Florida foreclosures lead nation

http://money.cnn.com/2007/03/23/real_estate/february_foreclosure_fall/

There were more than 19,144 properties in some stage of foreclosure in February in the Sunshine State, up 63.5 percent from January and nearly double the number a year earlier.

Nationally, foreclosure filings fell in February, down 4 percent from January. They were, however, up 12 percent from February 2006, and were running at a rate that would project into a 33 percent increase for the year, according to James Saccacio, RealtyTrac's CEO.

...

In addition to Florida, other once-hot markets showing weakness include California, where filings shot up nearly 79 percent compared with a year ago, and Nevada, which for the second straight month had the nation's highest foreclosure rate relative to the number of households.

Nevada's 3,124 foreclosure filings during February, a rise of 77 percent from a year earlier, gave it a rate of one filing for every 278 households - more than three times the national average.

Looks like they've passed up Ohio then.

[hatrack]

26. Damn! 63.5% in less than two months?!?!

Now THAT'S depressingly impressive.

[Roland99]

33. Almost 20,000 in foreclosure right NOW. How many in an average month?

That's one stat you don't really see.

[wordpix]

56. just visited sw FL and there's a building boom there---I wonder if the new houses will sell

[Maeve]

58. Very interesting....the Dispatch article compares 2005 & 2006

Not as up-to-date as the CNN story....in Ohio in 2006, there were 79,072 filings with at least 10 counties seeing increases of 32-49% over 2005 .

Admitted, we may have felt the hit sooner than some other parts of the country..(coming soon to a county near you!)

[Roland99]

59. Yeah, if hot FL is seeing a hurting, it can't be good for the rest of the nation.

Either that or Jebby allowed more predatory lending practices there....


*whistling innocently*

[ozymandius]

9. Connecticut seeks arrest of Mortgage Lenders executive

NEW YORK (Reuters) - Connecticut said on Monday it is seeking the arrest of former Mortgage Lenders Network USA Inc. President Mitchell Heffernan for failing to pay employees as the subprime lender sank into bankruptcy.

Any charges would be the first against a former top executive of a large U.S. subprime lender since delinquencies and defaults began rising in recent months.

The Connecticut Department of Labor applied for an arrest warrant charging Heffernan with failing to pay about $3 million to 61 employees of Middletown-based Mortgage Lenders, department spokeswoman Nancy Steffens said.

Most of the amounts owed relate to sales commissions, ranging from $5,000 to $300,000 per person, she said.

http://news.yahoo.com/s/nm/20070326/us_nm/usa_subprime_mortgagelenders_arrest_dc_1

[Hugin]

29. He failed to pay employees?

Wow! I see a torches and pitchforks moment in this guy's future.

[ozymandius]

10. More layoffs in sub-prime loan sector

The shakeout in the sub-prime lending industry continued Monday, with more people losing their jobs and a prominent lender losing its name on a baseball stadium.

Fremont General Corp. of Santa Monica said it had told "significant numbers" of its 2,400 home-loan employees to expect pink slips in two months. Company officials declined to say how many employees would be dismissed.

Fremont is the latest lender to announce layoffs in the sub-prime market, which targets people with dented credit. Rising defaults and foreclosures have ravaged the industry, and some economists fear the sector's woes could extend to the housing market and the broader economy.

The Orange-based parent of Ameriquest Mortgage Co. and Argent Mortgage Co. announced large but unspecified layoffs last week. On Monday, Ameriquest said that its name was coming off the Texas Rangers' baseball stadium in Arlington, Texas.

http://www.latimes.com/business/printedition/la-fi-subprime20mar20,1,572906.story

[ozymandius]

11. (redux) National new-home sales fall sharply

New-home sales fell sharply in February, the second straight month of declines, and the weaker-than-expected performance dimmed hopes for a rebound in the nation's housing market.

The Commerce Department reported Monday that sales of new single-family homes fell by 3.9 percent from January to a seasonally adjusted annual rate of 848,000, the slowest sales pace in nearly seven years.

-cut-

Declines in new-home sales were greatest in the Northeast and Midwest, which were battered by winter storms. In the past year, new-home sales fell 36.9 percent in the Northeast and 32.2 percent in the Midwest compared with the same period a year earlier. Sales also fell in the South, dropping by 17.1 percent, while sales in the West were off 5.7 percent.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/03/27/BUGK8ORT041.DTL

[wordpix]

55. can existing home sales be far behind?

[UpInArms]

17. 'Subprime' mortgage crisis knocking on W.Va's door?

http://www.wvgazette.com/webtools/print/Business/2007032414

The wave of mortgage foreclosures feared across the country hasn’t hit West Virginia yet, but it might not be far off.

Amid rising interest rates, falling house prices and a bulging portfolio of questionable loans made to people with bad credit, mortgage lenders began sounding alarms earlier this year.

Foreclosures hit record highs in the last three months of the year, and a pall settled over “subprime” lenders, or those that lend to borrowers with poor credit and who consequently don’t qualify for prime interest rates.

At least two subprime lenders have been given cease-and-desist orders by state and federal regulators, and others are veering toward bankruptcy.

The threat of mass foreclosures appears to be the most serious in states with highly speculative real estate markets, such as California and New York and the District of Columbia, but it’s a nationwide problem.

...more...

[ozymandius]

12. Citi chief Prince denies job cut talks

Charles Prince, chief executive officer, Citigroup has vehemently denied reports that the banking major is planning to shed thousands of jobs and focus outside North America for growth and termed it as 'press voyeurism'.

While it is unclear how many of Citi's high-cost jobs could be moved to India where Citigroup already has about 22,000 employees, Prince said India has been the single biggest driver of growth for group's international operations.

Earlier on Monday both New York Times and the Wall street Journal had said Citigroup plans to announce a broad restructuring plan that could involve elimination or relocation of thousands of high-cost jobs.

Citigroup Inc executives are putting the finishing touches on a restructuring plan that is likely to involve around 15,000 job cuts and a charge against earnings of more than $1 billion, WSJ added.

http://inhome.rediff.com/money/2007/mar/27citi.htm

[UpInArms]

19. Forbes: Citi's Pop Fly

http://www.forbes.com/2007/03/26/citi-jobs-cuts-biz-cx_lm_0326citi.html?partner=alerts

Now that Citigroup is getting close to unveiling its $1 billion cost effort, analysts are debating whether proposed cuts go far enough.

The bank is reportedly eying job cuts amounting to 5% of its global workforce, about 15,000 positions, concentrated in the front and middle offices of its sprawling consumer operations. Many of the cuts could come from attrition--and indeed 15,000 amounts to barely six months of routine departures from the financial empire. Many jobs at Citi (nyse: C - news - people ) have high turnover rates anyway, making 5% a reachable target in a short period.

Still, with mounting pressures to get revenues to grow faster than expenses (or more precisely, to get expenses to stop growing as fast as they have been), it's not clear that 5% will be enough.

Citi is expected to unveil its cost-cutting initiative sometime before it reports first-quarter earnings on April 16. The project, which is certainly no secret, is being led by Robert Druskin, the head of the investment bank division, who was given the additional job of chief operating officer in December.

It should be noted that banks go through rounds of expansion and then cost cutting as it gets harder to juice revenue growth any further. The last big wave of cost cutting unrelated to the 2001 economic downturn was in 1997-1998, when restructuring was all the rage. Even Citicorp announced what was considered a massive restructuring project, cutting $1 billion of expenses. Five percent for workforce cuts tends to be the standard in these restructuring programs--analysts say that is the threshold that makes managers look proactive.

...more...

if you read the entire article it tell what Prince is doing - spending lots of bucks dropping the "group" from Citi and needing all new stationary, etc. :eyes:

[UpInArms]

20. also this choice nugget - who is Citi's largest shareholder?

In mid-February, Prince made a pilgrimage to the Saudi Arabian desert to meet with Citi's largest individual shareholder, Prince Alwaleed bin Talal, who has said recently that Citi needed to take "draconian" measures to cut costs.

[Roland99]

22. I don't think that guy in Fahrenheit 9/11 was exaggerating when he said how much the Saudis...

had invested in the U.S.

Scary large amount.

[UpInArms]

13. dollar watch

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

Last trade 83.06 Change -0.02 (-0.02%)

US Dollar Down As New Home Sales Hit Seven Year Low

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar_Down_As_New_1174946564032.html

US Dollar – The US dollar was dealt an economic uppercut following the release of the new home sales report for the month of February in the New York morning. Countering existing homes data seen last week, the new home sales figure widely disappointed the market, solidifying the fact that home construction weakness is likely to loom over the economy. According to the Commerce Department, sales of newly constructed homes unexpectedly fell to the lowest in almost seven years as colder February temperatures dampened interest. Subsequently, purchases have dropped almost 4 percent to an annualized pace of 848,000 last month. The decline was more than expected with market consensus looking towards a 985,000 rate for the month. Combining this report along with other housing sector data, it seems that the recent report reflects a stabilization of sorts. Although new home sales were lower, existing home sales seem somewhat supported, albeit in the near term. However, it does purport a relatively negative undertone for the world’s largest economy. The bearish sentiment is helping to suppress the dollar in the session as traders continue to hear the specter of “spillover effects” lingering on US economic growth. Incidentally, the report comes just days before Federal Reserve Chairman Ben Bernanke is expected to speak before the Joint Economic Committee on the outlook for the economy. Although nothing different is expected to emerge from last week’s Federal Open Market Committee meeting, committee members will likely focus on rising concerns of the effects that the housing market may have on future near term growth. Notably, questions will be targeting potential weakness in consumer spending as lagging housing sector fragility. Should indications by the illustrious Bernanke paint a different picture, dollars may return to en vogue.

...more...

Dollar Declines As Housing Outlook Worsens

http://www.dailyfx.com/story/currency/eur_news/Dollar_Declines_As_Housing_Outlook_1174931532554.html

The loose thread from last week’s solidly packed economic calendar, Monday’s new home sales report tipped the scales for fundamentalists torn between strong lagging indicators and a distinct cooling in more timely reports.

After the worse-than-expected number hit the wires, the dollar cut its two session advance short with big moves across the majors. For EURUSD, the data was met with a 70-point rally to a 1.3350 high that was 100 points off of overnight lows. In a more intense dollar move, USDCHF slid 85 points in 30 minutes to test key support around 1.2120/10. Making a technical move of its own, GBPUSD extended a rally that began in the London session for a 140-point climb to mark a double top with Thursday’s high at 1.9725. Finally, USDJPY continues to carve out a convincing ascending triangle following a test high around 118.45 and a subsequent turn around 117.65.

After the last US economic indicator ran across the wires last Friday, market participants were left hanging on their valuations of the housing market. On the one hand, the somewhat-dated February housing starts and existing home sales numbers painted a promising picture for building and buying activity in the early months of the new year. Housing starts outpaced expectations of a modest pick up with a 9 percent jump in construction projects to a 1.525 million-unit pace. The cliff hanger though was the 3.9 percent jump in existing home sales on Friday, the biggest in three years. On the other hand, the industry confidence NAHB index, weekly mortgage applications and February building permits reports dulled the more imperative outlook. Today’s February new home sales report from the Commerce Department was likely the key as it combines the desirable qualities of being a leading indicator and a trustworthy sales report.

Accordingly, sales of new residences eased 3.9 percent, following the massive 15.8 percent drop in January. Taking the two monthly declines into account, activity was led to an 848,000-unit pace of sales – the weakest in seven years. Beyond the obvious reasoning of an overall cooling housing market, February sales activity was depressed by weather and consumer sentiment. Unusually cold and wet conditions last month kept many buyers away from the market – evidenced specifically by the 26.8 percent drop in purchases in the North East and 20 percent decline in the Midwest. Also, many Americans coming to the market may have deferred their purchases too allow prices to soften further. In February, the average closing price fell 0.3 percent to $250,000. This seems to be a reasonably strategy since inventories of unsold homes has just climbed to its highest level in 16 years – and that does not include cancellations. Already looking ahead, existing sales and housing starts are expected to follow suit with the leading indicators as the sub-prime credit crunch weighs on mortgages defaults and approvals. With this data in mind, many economists who had projected a turn in the housing slump in the coming quarter or slightly further in the year are now revising their predictions for the worse. Traders now look ahead to tomorrow’s consumer confidence report for March to interpret how hard mortgage defaults and the stock market correction has hit the average American’s level of optimism.

...more...

[Ghost Dog]

34. China shifts to euros for Iran oil, Japan holds off

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070327:MTFH56839_2007-03-27_05-21-40_SP68844&type=comktNews&rpc=44

BEIJING, March 27 (Reuters) - China's state-run Zhuhai Zhenrong Corp, the biggest buyer of Iranian crude worldwide, began paying for its oil in euros late last year as Tehran moves to diversify its foreign reserves away from U.S. dollars.

The Chinese firm, which buys more than a tenth of exports from the world's fourth-largest crude producer, has changed the payment currency for the bulk of its roughly 240,000 barrels per day (bpd) contract, Beijing-based sources said.

Japanese refiners who buy about 500,000 bpd of Iranian crude, nearly a quarter of Iran's 2.2 million-bpd shipments, continue to pay in dollars but are willing to shift to yen if asked, industry sources and officials said separately.

Iranian officials have said for months that more than half the OPEC member's customers switched their payment currency away from the dollar as Tehran seeks to diversify its reserves, but news of the Zhenrong change is the first outside confirmation.

/...

[Ghost Dog]

36. Euro boosted by German business outlook

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B923b3d5f%2D7cd3%2D476f%2Dbcb5%2D07788c2f8542%7D

The euro was boosted on Tuesday after Germany’s Ifo index of business sentiment rose unexpectedly in March, while weakness in the US economy left the dollar under pressure. The Ifo business climate index rose to 107.7 in March from 107 in the previous month and beat expectations of a fall to 106.5. Manufacturing companies were upbeat in the first quarter and exporters were not unduly concerned by the rise of the euro against the dollar through March. Ifo officials said the numbers supported views that the German economy was set for annual growth of 2 per cent rather than the 1.7 per cent forecast by the government, although Ifo economist Gernot Nerb said he saw ”no reason” for further interest rate increases from the European Central Bank. Stuart Bennett, economist at Calyon, said: ”We disagree, as stronger activity will put greater pressure on already stretched capacity and should intensify those upside risks to inflation that the ECB has warned are likely to come through later in the year.” This pushed the euro 0.1 per cent higher against the dollar to $1.3343 and 0.2 per cent higher against the yen to Y157.75.

/...

See also: German business confidence bounces back

[Ghost Dog]

48. Dollar weakens as US consumer confidence slips

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070327:MTFH70385_2007-03-27_14-37-02_N27261910&type=comktNews&rpc=44

NEW YORK, March 27 (Reuters) - The dollar fell against the euro and the yen on Tuesday after a report showed U.S. consumer confidence slipped in March.

The report, which is more sensitive to labor and housing market developments, reinforced fears of a U.S. economic slowdown that could force the Federal Reserve to cut interest rates.

The euro <EUR=> was trading at $1.3358, up 0.2 percent on the day. The dollar was down 0.2 percent against the yen at 117.90 yen <JPY=>, slipping from 118.05 yen just before the report came out.

/...

[ozymandius]

14. Ex-Reagan official charged in fraud case

NEW YORK -- David Stockman rose to prominence as former President Reagan's budget director from 1981 to 1985, grabbing attention early in his tenure when he told an interviewer that he thought Reaganomics was a "Trojan horse" for the rich and predicted huge budget deficits.

The 60-year-old, who famously described how he was taken to the White House "woodshed" for his comments, now finds himself under scrutiny again. He was charged Monday with overseeing a sweeping fraud at a troubled auto parts supplier that he led before the company collapsed into bankruptcy.

He was one of four former top Collins & Aikman Corp. executives named in a federal indictment unsealed Monday. Four others, including a one-time treasurer, have pleaded guilty, prosecutors said.

-cut-

The indictment charged Stockman and three others with conspiracy to commit securities fraud, making false statements in annual and quarterly reports, making false entries in books and records, and lying to auditors as well as committing bank fraud, wire fraud and obstruction of an agency proceeding.

http://seattlepi.nwsource.com/national/1110AP_Reagan_Aide.html

[ozymandius]

15. Stocks Head Toward Lower Open

NEW YORK (AP) -- U.S. stocks headed toward a lower opening Tuesday as Wall Street awaited further signs about the economy a day after a weak home sales report revealed a still jittery mood among investors.

While stocks managed to come off sizable losses to finished the session mixed Monday, the gyrations showed lingering concerns about whether a weak housing sector will spill over into other parts of the economy.

Tuesday brings fresh evidence of the struggle homebuilders are facing. Lennar Corp. said its first-quarter profit fell by more than 70 percent as it struggled with weak demand. Profits met Wall Street's expectations, while revenue came in better than expected.

-cut-

Dow Jones industrials futures expiring in June fell 20 points, or 0.16 percent, to 12,513. Standard & Poor's 500 index futures fell 1.50, or 0.10 percent, to 1,443.80, while Nasdaq 100 index futures slipped 1.00, or 0.05 percent, to 1,817.25.

http://biz.yahoo.com/ap/070327/wall_street.html?.v=3

[UpInArms]

16. The Split-Screen State of the Union (who woulda thunk it from Ben Stein?)

http://www.nytimes.com/2007/03/25/business/yourmoney/25every.html?ex=1332475200&en=c3c49d8b2d231482&ei=5088&partner=rssnyt&emc=rss

free registration or try www.bugmenot.com

excerpt:

Two or so weeks ago, while I was waiting for my car, the news channel side of the TV showed a long profile of a platoon of Marines who had been ambushed in Iraq. We saw close-ups of the many killed Marines, scenes of their fellow Marines bowing in prayer next to the boots and rifles on their fallen comrades — tough, strong Marines in tears.

Next to this wrenching sequence, the ads told of cosmetic dentistry that would give you a dazzling smile, of breast augmentation, of the best buys on collagen and Botox injections to keep you forever young, and of $5 million estates for sale.

If I was reading the faces of the other customers correctly, they, like me, were staggered by the juxtaposition of the sublime and tragic next to the trivial and obscenely narcissistic. Botox and our brothers’ and sisters’ blood. Each took up as much space on the screen. How confused can we be?

<snip>

But here’s an even more stunning example of how far from common sense we are in today’s world, and how clearly common stockholders have come to be second-class citizens. (The insiders are the first-class citizens.) Even as the S.E.C. ponders the epidemic of backdating — which to me is clear-cut fraud, insider trading and looting — it is also sending its chairman, Christopher Cox, to meetings set up by the ever-fascinating Henry M. Paulson Jr., the Treasury secretary, to see about relieving the supposed regulatory burden on Wall Street and American business generally.

THAT’S right: with the record of corporate executive wrongdoing at dramatic levels, the government is concerned about giving corporate executives more leeway and making litigation against them more difficult. With Wall Street bonuses in the $40 billion range, Mr. Paulson is worried that Wall Streeters are not treated well enough. With executives’ pay in the stratosphere, not even counting what they steal in options, the government is worried that things are too tough for them.

...more...

[hatrack]

27. Gee, Ben Stein wakes up and smells the rich and reeking Oligopoly Coffee!

Or is it just some preemptive butt-covering from one of Wall Street's biggest hos?

YOU make the call . . .

:eyes:

[Hugin]

28. Oligopoly!

I love it. :rofl:

[frankenforpres]

51. Ben Stein has been writing

about this for a while. he was way ahead of the curve

[UpInArms]

21. Executive Tells of Odd Payouts to Hollinger

http://www.nytimes.com/2007/03/27/business/27black.html?ex=1332648000&en=9b36c8ba3493c029&ei=5088&partner=rssnyt&emc=rss

CHICAGO, March 26 (AP) — A media executive told federal jurors on Monday how a half-billion dollars in asset sales by the Hollinger International newspaper conglomerate were structured to funnel money to a Canadian holding company controlled by the media baron Conrad M. Black.

Michael Reed, former chief executive of Community Newspapers Holdings, which bought several community newspapers from Hollinger in 1999 and 2000, said Hollinger executives insisted on including money for the Canadian company.

The payments are at the heart of charges that Mr. Black and three former Hollinger executives swindled millions of dollars from Hollinger.

Companies that bought hundreds of community newspapers from Hollinger International made payments in return for promises that Hollinger would not compete with them in markets where the newspapers circulated. But millions of dollars in “noncompete” payments that prosecutors say should have gone to shareholders went instead to Mr. Black and his associates.

...more...

[bobthedrummer]

32. "Odd"-this reminds me of Hollinger Digital's Richard Perle

and Trireme partners Richard Perle, Henry Kissinger and Gerald Hillman..."odd", it reminds me of Richard Cheney's National Energy Policy Development Group...

There are clusters of labels like "coincidence" and "oddities" when money trumps peace...

[Kolesar]

31. Gulf economies to 'drop the dollar'

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x513036

teaser:

Gulf economies will move away from a dollar currency peg and shift foreign exchange reserves away from dollar to other currencies, including the Chinese yuan, the chief executive of Dubai International Financial Centre (DIFC) has said.

Nasser al-Shaali noted that the UAE central bank had already started buying euros - part of its strategy to move about 10 per cent of its reserves into the single European currency before the end of the year.
"We've seen, for example in the case of the UAE central bank, a movement into the euro," al-Shaali told the Reuters Middle East Investment Summit.

[loudsue]

43. Shit! There goes the dollar!

We've all been saying here for a while that the US is going to lose its little advantage of being the basis of world currency, and now it's happening at a fast pace.

Is there anywhere to run & hide?

:kick::kick::kick:

[Kolesar]

45. "If you only have ~25% of your money in foreign instruments, you are taking a big bet ..."

... against the rest of the world. So said Smart Money magazine last year. They recommended some international ETFs (exchange traded funds).

I could see selling a bunch of my US equity index funds and just buying the foreign equity ETFs all in a day. They had some specific recommendations.

[Dogmudgeon]

52. It will further isolate the USA ...

... and since the Mexico and Canada are literally attached to the USA, it will be trouble for them, too.

Canada has a strong enough economy that it could potentially throw its lot in with the EEC; there is also all that asphalt-like shale oil sand in Alberta. But the Mexican economy is on the brink of collapse, though all Americans see is the "dirty immigrant" image presented by Lou Dobbs and Co. The Cantarell oil field, at one time the world's second-largest, is collapsing. That oil supplied as much as 40% of the capital that came into Mexico, and without it, that economy will contract quickly. Add to it the dramatic increase in the price of corn due to the American ethanol industry, and a serious humanitarian crisis is getting started.

These will be the first post-oil-peak "dislocations". None of this is good, and the global players are sharpening their knives in anticipation for a major sheep kill.

--p!

[wordpix]

57. just as predicted by DUers

[Ghost Dog]

35. Asian Stocks Decline on U.S. New-Home Sales; Sony, Samsung Fall

http://www.bloomberg.com/apps/news?pid=20601084&sid=a8L083SDiMNk&refer=stocks

March 27 (Bloomberg) -- Asian stocks fell for the first time in four days led by exporters after new-home sales in the U.S. unexpectedly dropped, adding to concern growth in the world's biggest economy is slowing.

Sony Corp., which made 70 percent of its sales overseas last year, and Samsung Electronics Co. led exporters lower. NTT DoCoMo Inc. paced a decline in Japan as the majority of the country's shares traded without a dividend entitlement today.

``The U.S. economy remains a concern to Asian suppliers,'' said Barro Liao, who helps manage $2.7 billion at PCA Securities Investment Trust Co. in Taipei. ``A faltering U.S. economy will not leave much room for growth in Asia.''

The Morgan Stanley Capital International Asia-Pacific Index slid 0.8 percent to 145.10 as of 7:20 p.m. in Tokyo. Woodside Petroleum Ltd. led an increase in energy stocks after crude oil yesterday rose 1 percent to $62.91 a barrel in New York. It was the only gainer among the benchmark's 10 industry groups.

Japan's Nikkei 225 Stock Average fell 0.9 percent while the broader Topix index lost 1 percent. Markets also dropped in Australia, Hong Kong, Taiwan, Thailand and Sri Lanka. China's Shanghai and Shenzhen 300 Index had its longest winning streak in three months. India was closed for a holiday.

/...

[Ghost Dog]

39. Tokyo stocks lose ground ahead of economic data in U.S., Japan

http://asia.news.yahoo.com/070327/kyodo/d8o4bgm81.html

(Kyodo) Tokyo stocks fell in lackluster trading Tuesday as many investors refrained from buying ahead of the release of a series of key economic indicators at home and abroad this week.

The 225-issue Nikkei Stock Average lost 156.91 points, or 0.90 percent, to 17,365.05. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 17.51 points, or 1.01 percent, to 1,723.86.

The Nikkei shed more than 100 points at the outset of trading on selling of recent gainers following its advance for a fifth straight trading day Monday as well as on a fall in the Dow Jones Industrial Average in New York overnight, dealers said.

Some dip-buying set in later and the index narrowed its losses but it fell again toward the end of the session. Its losses widened to more than 200 points at one point in the afternoon, they said.

"Being at the end of the fiscal year and ahead of the release of key economic data, trading is extremely thin with many investors moving to the sidelines," said Hiroyuki Nakai, chief strategist at the Tokai Tokyo Research Center.

Lingering concerns over the U.S. economy are also weighing on the Tokyo stock market.

/...

[Ghost Dog]

37. Carmakers drive Frankfurt stocks higher

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B8ad354bf%2Dab22%2D4e64%2D85f7%2Dddbf2e2fea1e%7D

Frankfurt was driven higher by the auto sector on Tuesday as German carmaker as increasing speculation over a sale of Chrysler lifted its German parent, but profit taking in financial stocks weighed on the wider market. In mid-session trade, Frankfurt’s Xetra Dax added 0.4 per cent to 6,855.3, outperforming other European stock markets. The FTSE Eurofirst 300 was down 0.1 per cent to 1,509.34, the CAC 40 in Paris was flat at 5,575.5 and London’s FTSE 100 was also unchanged at 6,291.9. German carmaker DaimlerChrysler climbed 3.3 per cent to €62.20 as speculation that it was poised to announce a sale of its US Chrysler unit prompted a number of upgrades. Morgan Stanley lifted its price target from €62 to €75, saying the likelihood of a sale was greater that the market anticipated, adding that Daimler would be a €108bn revenue business without its struggling US unit.Meanwhile, press reports suggested DaimlerChrysler may receive preliminary bids for the Chrysler division by the end of the week. The Detroit News said a number of private equity bidders were signing up leading Wall Street banks to support their offers. French broker Exane BNP Paribas lifted its price target on DaimlerChrysler from €62 to €70.

[Ghost Dog]

47. Bourses higher on car makers’ consolidation drive

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B4954a196%2D74c2%2D4f74%2D8319%2De9d9b519ff13%7D

European equities closed with gains on Tuesday, with Frankfurt outperfoming other markets amid a spate of deal making rumour in the car making sector. Frankfurt’s Xetra Dax added 0.4 per cent to 6,858.3, outperforming other European stock markets. The FTSE Eurofirst 300 was down 0.1 per cent to 1,509.34, as banking stocks continued to hand back gains on fading hopes of deal making in the sector. the CAC 40 in Paris rose 0.2 per cent to 5,587.0 and London’s FTSE 100 was flat at 6,291.9. German carmaker DaimlerChrysler climbed 2.4 per cent to €61.68 as speculation that it was poised to announce a sale of its US Chrysler unit prompted a number of upgrades. Porsche shares gained 7.6 per cent to €1,206 after the sports car manufacturer exercised an option on Monday to lift its voting stake in Volkswagen to 30.9 per cent -- above the 30 per cent threshold that should trigger a takeover bid. However, Porsche said the minimum legal price of the offer would be only €100.92, well below Friday’s closing price of €117.70, and not expected to be accepted by the remaining VW shareholders. VW shares rose 0.3 per cent to €114.30.

[loudsue]

44. Doesn't anyone post the market numbers during the day anymore?

Whassup with that?

:kick::kick::kick:

[Hugin]

46. Updated 5 minutes ago...

• DJIA 12403.30 -65.77 -0.53%
• NASDAQ 2441.59 -14.04 -0.57%
• S&P 500 1430.30 -7.20 -0.50%

[Roland99]

49. Closing numbers: Pinkish shade of Red

DJIA 12,397.29 -71.78 -0.58%
Nasdaq 2,437.43 -18.20 -0.74%
S&P 500 1,428.61 -8.89 -0.62%
Dow Util 501.63 -1.18 -0.23%
NYSE 9,288.79 -52.57 -0.56%
AMEX 2,154.77 -8.02 -0.37%
Russell 2000 802.36 -6.58 -0.81%
Semcond 476.00 -2.77 -0.58%
Gold future 662.50 -1.40 -0.21%
30-Year Bond 4.81% +0.03 +0.54%
10-Year Bond 4.61% +0.03 +0.55%

[Roland99]

50. The not-inverted yield curve

http://www.marketwatch.com/news/story/now-not-inverted-yield-curve/story.aspx?guid=%7B308184EA%2DA2A2%2D4B4E%2DA55A%2DDA251E680AA8%7D

I would be a rich man if I had a dollar for every adviser who, over the past 15 months or so, argued that a recession was imminent because the yield curve had become inverted.

I'd be a very poor man if my wealth were dependent on getting a dollar for every one of those advisers who, since late last week, has even acknowledged that the yield curve has become positive again - much less conceded that, by the logic of their previous argument, a recession has become less likely.

...


The yield curve as thus defined became flat in late 2005, and was inverted during much of 2006. Its maximum inversion in recent months came last November, when the two-year T-Note was yielding 19 basis points more than the 10-year note. As recently as the end of February, the curve was still inverted to the extent of a 14-basis-point difference between the two maturities.

But Wednesday the relationship righted itself. Currently, according to data from the Federal Reserve, 10-year Treasury notes are yielding 4 basis points more than the two-year note.

Yeah, let's ignore what is probably the most important aspect of anything economic:


TRENDS!!



Freakin' moron.

[Ghost Dog]

60. Navy: nothing to substantiate Iran market rumor

http://today.reuters.com/news/articlenews.aspx?type=topNews&storyID=2007-03-28T015015Z_01_WBT006731_RTRUKOC_0_US-USA-NAVY-IRAN.xml
Tue Mar 27, 2007 9:50pm ET

WASHINGTON (Reuters) - The U.S. Navy on Tuesday said it had no information to substantiate a market rumor that Iran had fired at a U.S. naval vessel in the Gulf.

"Navy has nothing to substantiate that report right now," a Navy official said. "At this juncture, there is no validity to it."

"We have no information at this time that indicates any incident taking place," said White House National Security Council spokesman Gordon Johndroe.

NYMEX crude oil futures shot up more than $5 to trade above $68 a barrel on rumors about Iran, traders said.