Zephyr Global Report, 2/1/2013

HEADLINERS

-Hillary Clinton’s Last Day at State, goes out to cheers of Royal Anglosaxon terrorists and Jewish-American terrorists and spies. Great Job killing  Arabs and Children Hillary they screamed!!

-Senator Mendez Continues to Dodge Child Sex Charges

-China Home Prices Have Biggest Gain in 2 Years, SouFun Says

-Clashes in Egypt, Riots in Greece and near Riots in Spain today. Police swinging clubs and slinging tear gas.

-JPM/HSBC Global PMI ticks up from 50.1 to 50.5

-Dow Tops 14000 for first time since 0ct 17, 2007

-USA Jan NFP Jobs, +157k  in Jan, Unemployment 7.9 pc, slightly below expectations, Nov/Dec revised higher. H/H  Survey Revises Labor pool up to avoid Reporting 11ok Job Loss

-European PMIs improve, still in Contraction, EU PMI 47.9 Jan, Germany Suprises to Upside

-Dutch bank SNS Reaal nationalised

-David Cameron Threatened with Confidence Vote by Tories

-IRS Swap Swindle Expanding at rapid pace and Price in London-DT

-Bonds most overbought in 55 Years, Loomis Sayles Bond Fund

-Barclays in Qatar loan probe

-Wasendorf jailed for 50 years for PGF Best Commodity fraud

-Taiwan Premier Chen Quits After Rally Calls for Him to Step Down

-Credit Agricole to Take EU2.68B Goodwill Writedown in 4Q

-Congress Completes 3 month of Debt Suspension work

-Mounting losses for Watermelon (so called green) technology forces Obama to back off 1 million electric car goal.

-Fed Contracts Balance Sheet Slightly, but remains above $3 Tln

-China’s Official MFG PMI retreats to 50.4 in Jan.

-Republicans Attack Hagel at first of up to three hearings

-Syria Threatens Retaliation for Israel’s Talmudic Attack. Israel threatens more death and destruction of Syria. Russia says Strike Unacceptable. Regional powers outraged. Turkey, UK, USA, stand behind Israel’s treachery and murder

===============================================

COMMENTARY

 

-USA Close

MARKETS – AT A GLANCE
4:01 p.m. EST 02/01/13Major Stock Indexes
Last Change % Chg
DJIA* 14009.41 148.83 1.07
Nasdaq* 3179.10 36.97 1.18
S&P 500* 1513.10 14.99 1.00
DJ Total Stock Market* 15788.98 153.62 0.98
Russell 2000 911.83 9.74 1.08
Global Dow 2124.84 12.08 0.57
Japan: Nikkei Average* 11191.34 52.68 0.47
Stoxx Europe 600* 288.20 0.98 0.34
UK: FTSE 100* 6347.24 70.36 1.12
*close
4:00 p.m. EST 02/01/13Treasurys
Price Chg Yield %
2-Year Note 1/32 0.265
10-Year Note -13/32 2.036
* at close
3:51 p.m. EST 02/01/13Futures
Last Change Settle
Crude Oil 97.64 0.15 97.49
Gold 1668.6 6.6 1670.6
E-mini Dow 13954 157 13797
E-mini S&P 500 1509.25 16.00 1493.25
4:01 p.m. EST 02/01/13Currencies
Last (mid) Prior Day †
Japanese Yen (USD/JPY) 92.84 91.72
Euro (EUR/USD) 1.3655 1.3578
† Late New York trading.

-Menendez scandal heating up again.

If you meet a Menendez ,at least 1/2 area Sephardic Jews, as it is one of the most common names and spelling they took. For sure looking at his features he is Sephardic. This guy is leading the gun grab for world Zionism. Help pray him out of the Senate. Thanks.The Crypto-Hebraic -Zionist, more deadly to the gentiles than a black mamba!! Be Jew -wise, be Zionist wise!

http://rt.com/usa/news/senator-menendez-dominican-sex-271/

-1439 Okay, I’m going to cut the news flow off, and recap the USA market and head out for my weekend early as the markets are going to finish up and the DOW will probably be painted above 14000 as the FED wants to bait retail investors in likely so they can then drop the market.

Over the last six months, bond bears were hooked by Betty Liu and the Media gangsters. But today we can talk a little about bonds being in 55 year bubble as Loomis Sayles head bond guy said. The bond market is treacherous and rigged especially the UST, JGB and Gilt markets, and the Bund market. The most rigged now are the Italian and Spanish markets. Completely artificial and run by the ECB/ESM. The ‘Noyer’ put and his Frank Admission the EU was in control of the long end of those two markets.

In the USA we had a stinker of jobs report for Jan, which missed the 165k pump by the economists, and printed 157k with unemployment ticking up to 7.9 pc. I have not had time to check U6 yet. However, the revisions to the December data to +196K from +155K were a big positive, thanks to the nine-month benchmark revisions , which are highly suspect in my opinion. Analysts quick to blame the weaker job growth, like much of the rest of the data softness this month, on the fiscal cliff, when in fact we know it was Obama pulling in the deficit spending into Q3 to boost the GDP report for his election. Now Obama and Congress have a free hand to loot the UST until Mid may , and will likely grab enough money to keep the Global economy limping along for Smirkel’s  election. Recall Obama got her to delay the Greek reports and any bad news in Greece until after his election. That is how politics works at the expense of the working man in a fiat regime run by corrupt CB doing the politician’s or their real owner’s will.

The FED sterilized its balance sheet this week, although the balance sheet exposure remained just above $ 3  Tln. I noted most of the Wires on this were wrong and they are not quite reporting the real balance sheet of the FED but the quick shot table they give at the start of the report. Can’t trust the media to read the FEDs balance sheet or even report it accurately, which is why I go through  it myself each week. Now certainly if Bernanke takes the balance sheet from 3 trillion to 4 trillion and the ECB is forced to add another Trillion markets will see a real rally globally. I don’t see that happening until the next crisis, which may be this MPS scandal in Italy.

Gold reacted positively but the FED and the cartel could not resist pushing it back down on the ISM numbers. The FED is trying to implement a steering mechanism where money comes out of the bond market and into the equity markets, without lifting commodity prices too much. The thinking is a high stock market will stimulate worker buying and pull the economy along. The FED had its boys and the speeches all in place to manipulate gold with Bullard given a choice spot on BBN-TV and gold pushed down on the  backs of his lies the FED can taper off QE4, which they sort of just really began 2 weeks ago on this nonsensical job report. If the BLS now headed by the NY FEDS head job counter, has to artificially increase the labor pool on the household survey to account for a 110k drops in jobs, yet the Establishment number (NFP) went up 157k although to be fair, the birth-death model was actually a bit over -300k jobs in Jan. To me the entire report is suspect there were so many off the wall adjustments made to have the not too hot, not too cold number.

The January ISM manufacturing report was better than expected, rising to 53.1 from the December reading of 50.7. The new orders and employment components were solidly in growth territory on the construction and construction truck and commuter car replacement cycle driven by 100 oil which we almost got in the USA, although Brent was at 116 plus. The final reading of the January University of Michigan consumer sentiment index ticked slightly higher to 73.8 from the initial 72.9 reading. This compares to the November reading of 82.7. So workers are not as sanguine as Wall Street.

US oil majors Chevron and Exxon both beat consensus earnings expectations on solid y/y profit growth although CVX achieved theirs on one time asset dispositions. Analysts highlighted that profits at the two firms and the industry in general are benefiting from high margins on the falling cost of domestic crude thanks to onshore shale production. XOM is flat on the session, CVX is up just shy of 1%. It should be noted that the revenue growth was actually weak at both firms indicating the global economy oil demand is not as strong as much as constrained by market manipulation and wars, and rumors thereof. The situation in Syria is front and center with the EU/NATO demanding the USA do something about it. Russia is blocking currently.

Shares of Dell made another leg up in the on press reports that the company’s going-private deal could be announced as soon as Monday. Pricing remains unknown, but Michael dell would get a majority stake, with Silver Lake and Microsoft minority holders. DELL was up more than 4% pc in the early market.

Shares of Brink’s are down more than 10% this morning after the company’s Q4 earnings missed expectations and the firm warned about challenging comps in Q1. When the USE is doing well Brinks cash picks up increase.

I continued with my present theme, long Dell, Short, DIA, SPY, DAX and Short the Euro and took a real short position in the Euro dollar today. I will post the closing prices for the day sometime later. I am prepared to short the Euro up to 142 before I cover and the DAX at 8100. I will repost Wiens comment as he must read the actual 10Q like I do and is not impressed with revenue y/y   or EPS y/y and the growth therein we are seeing. Earning and revenue sure feel like they are peaking here, but then again I don’t know how much QE4 Bernanke is not going to sterilize or how much money Obama and Lew have been told to loot for Merkel’s election. When you see the talking heads trying to so shamefully cover results like DOW chemical and Jim Cramer pumping the sheep in it, typically means a pullback and not a break out. Although the Global PMI chart has a very interesting looking cup and handle formation gong back to 2007. It all depends on USA or Chinese government spending and how much unsterilized QE is doing by the ECB and FED. Right now the Chinese shadow banking system is running the Chinese QE. If Bernanke prints up another 1 trillion gold is going to be impossible to keep down as will equity. I don’ think he will be allowed to to that with the Little Queen of Europe Smirkel up for election.

“The market is getting ahead of itself. Look at the fourth quarter GDP number. I think every analyst out there thinks that earnings will be up this year; I think earnings will be down this year. I think profit margin is peaking. I think revenue growth is going to be relatively slow and I think the market is been driven right now by the ample liquidity that the Federal Reserve is providing. So, the market continues to go up because this liquidity finds its way in the financial assets, but eventually the corporate fundamentals will take over and a major sell off will take place.”

Byron Wien, vice chairman of Blackstone , CNBC interview

 

MARKETS – AT A GLANCE
2:39 p.m. EST 02/01/13Major Stock Indexes
Last Change % Chg
DJIA 14005.89 145.31 1.05
Nasdaq 3178.21 36.08 1.15
S&P 500 1512.63 14.52 0.97
DJ Total Stock Market 15786.46 151.10 0.97
Russell 2000 912.26 10.17 1.13
Global Dow 2125.43 12.67 0.60
Japan: Nikkei Average* 11191.34 52.68 0.47
Stoxx Europe 600* 288.20 0.98 0.34
UK: FTSE 100* 6347.24 70.36 1.12
 
2:38 p.m. EST 02/01/13Treasurys
Price Chg Yield %
2-Year Note 0/32 0.277
10-Year Note -9/32 2.022
* at close
2:29 p.m. EST 02/01/13Futures
Last Change Settle
Crude Oil 97.75 0.26 97.49
Gold 1670.0 8.0 1662.0
E-mini Dow 13954 157 13797
E-mini S&P 500 1509.00 15.75 1493.25
2:39 p.m. EST 02/01/13Currencies
Last (mid) Prior Day †
Japanese Yen (USD/JPY) 92.72 91.72
Euro (EUR/USD) 1.3664 1.3578

-China’s new home prices rose 1 percent in January, the biggest gain in two years, as developers turned optimistic because the government did not impose additional measures to curb the property market last month.Prices climbed for an eighth month in January to 9,812 yuan ($1,577) per square meter (10.76 square feet) from December, SouFun Holdings Ltd. (SFUN), the country’s biggest real estate website owner, said in an e-mailed statement today, based on its survey of 100 cities. The increase was the biggest since January 2011. The Germans cant produce or wont a clean diesel to sell in the USA either at  the low end as it is too expensive, but they make plenty for VW/Mercedes, etc. The Germans like to pollute as long as they can export it. They keep Germany pristine. The English are the same way, nothing personal Germans.

-China and California Real Smog Problem. 240 million cars, largely on the coast, and high pollution vehicle with poor emission standards, largely produced by the corrupt German diesels. All that smog eventually gets sent to LA and SF and Portland and Seattle/Van

-Choice words from MI6/AEP today on the EU Squeeze of the London Pirates.

My Comments

Since these are USA clearing houses, meaning USA taxpayers have to back them, why should the USA have to send jobs to the EU? Let the EU assume the risk and their banks have their own clearing houses. This is the absurd agreement to allow LBMA forwards to be settled by CME /GLD calls if the LBMA cant deliver? At what benefit is this. Derivative trading is a big food fight but the English put up nothing relying on USA clearing houses and neither do the Europeans yet they have most of the trading done there.

AEP’s article key paragraphs

Some 75pc of Europe’s over-the-counter derivatives trades take place in London, and 40pc of global trades. The worldwide market is around $640 trillion in notional contracts, churned constantly. 

The ECB’s proposed rules would force LCH Clearnet, and other clearers such as ICE and CME, to hive off part of their business to eurozone hubs. Leaked documents from the Banque de France in 2009 revealed that Paris was pushing behind the scenes for a French clearing house, explicitly to break London’s stronghold. France has since tried to push through a directive requiring clearers to have access to ECB liquidity for euro trades.

Graham Bishop, an expert on EU regulation, said there is a string of parallel disputes, covering such arcane areas as “UCITS” depositories for EU unit trusts or rules on fund management. “The big danger is that foreign banks and funds quietly locate their new business in Frankfurt and Paris, and after five years we will discover that the centre of gravity has moved,” he said.

Deutsche Bank bases its global business and trading in London with 8,500 staff in the UK, much to the irritation of German lawmakers. France’s top lender BNP Paribas has a big trading centre and 8,000 staff in Britain. Both banks are under political pressure to repatriate operations.

The regulatory assault on the City has been an escalating drama since the Lehman crash in 2008. Three EU agencies have been created covering banking, insurance and markets with binding powers that can overrule a British veto on key matters in extremis, effectively stripping Westminster of final control over regulation of the City for the first time in 300 years.

The key measures were signed into law by the Coalition shortly after taking power, before it understood the full significance. The ECB and the Bank of England will share oversight as the EU’s new banking union takes shape, but it is a compromise fraught with trouble.

Giles Merritt, the head of Friends of Europe in Brussels, warned that EU leaders could become vindictive if Britain’s in/out referendum degenerates into a slanging match. “If British eurosceptics turn it into a sneering campaign against Europe, then the Europeans will play hardball,” he said.

-The EU denounces Racism in Greece. Which basically means the Greeks should ST()U up as Arabs flood in to steal their jobs from Egypt and Turks come swarming over the border. It is in greek so I will spare you the post. The ZGR denounces the EU leadership and its great un-Christian, Eurotrash/pagan hoard clamoring for more socialism and la dolce vita and the ZGR denounces multicuturalism. Who elected these EU officials anyways?

-Toyota Motor Corp. (7203) and Ford Motor Co. led the four largest automakers by U.S. sales in reporting January gains that topped estimates, as buyers return to showrooms to begin a fourth consecutive year of growth.Toyota’s deliveries of cars and light-trucks surged 27 percent and Ford’s climbed 22 percent, while General Motors Co. (GM) and Chrysler Group LLC sales each rose 16 percent, according to company statements. Honda Motor Co. and Nissan Motor Co. (7201) sales rose less than analysts’ average estimates.Consumers are replacing cars and trucks that have aged to about 11 years on average after deferring purchases of new autos during the nation’s slow recovery from the recession that ended in 2009. The demand is spurring carmakers to increase hiring and domestic production, contributing an outsized boost to U.S. economic growth.“When you have pent-up demand from all the old vehicles on the road, available credit and compelling new products, that’s a winning combination,” Michelle Krebs, an analyst for auto market researcher Edmunds.com, said in a telephone interview. “Sales have continued to stay strong even after all the holiday promotions have gone away.”The average estimates of 11 analysts surveyed by Bloomberg was for increases of 17 percent by Ford, 15 percent by Chrysler and 13 percent by GM. Toyota exceeded eight analysts’ average estimate for a 22 percent gain.GM climbed 1 percent to $28.33 at 1:49 p.m. New York time and Ford rose 0.8 percent to $13.05. Toyota’s American depositary receipts were up 3 percent to $98.22 and Honda’s ADRs gained 2.5 percent to $38.62. BBN (SIC)

-Robert Reich ‏@RBReich

Unemployment rises and so does stock market, proving once again that Wall Street and Main Street exist on different planets.

-German Reich(German Rothschilds) giving the USA its marching orders…Fight and die for our Oil Supply and Englands!!

Munich, Germany - The German defense minister on Friday dismissed the warning of a coolingdown in the EU-US relations, saying that Europe is the best possible partner of the US.”Europeans and the Americans can rely on each other. And I would like to add: They will haveto be able to rely on each other,” Thomas de Maiziere told the Munich Security conferencehere.He noted that there are warnings against the risk of a cooling down in the transatlantic relationsand rejected them in his speech.”We have been hearing these warnings for many years,” he said, “If the warning experts hadbeen right, then North Atlantic Treaty Organization and the transatlantic link would have failed along time ago.”The minister termed the transatlantic dialogue as a well-established tradition of the MunichSecurity Conference. With a clear emphasis on the importance of Europe, he said he believedthat ”Europe may not be the best conceivable partner for the US in the world, but without anydoubt it is the best possible partner.”He also defended Europe by describing it as the most ”stable, reliable and able to act” region inthe world. “In terms of security policy we may not be good enough, but we are better than anyother conceivable partner of the USA.”The minister refuted the concern that the US was turning away from Europe as a result of itsshift of focus towards the Pacific region. “…Europe is also turning towards Asia,” he said.He proposed that Europe and the US consider joint transatlantic options for cooperation in thePacific.The annual Munich Security Conference opened on Friday and the topic of transatlanticrelations will be a focus at a discussion on Saturday. Joseph R. Biden, Vice President of theUS, will attend the meeting.

China Daily

-Thanks to the reader who called my attention to this just now. My general comments is the elites have so moved up the speed at which capital markets change that only computers can truly trade them anymore or deep value/growth vendors that wait for the credit contraction bottom to buy and the expansion top to sell. Investing in the modern age is a big team event. GS has around 30k employees so that is who you’re competing against.

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-USA trading Session Economic Release Summary
(RO) Romania Jan Total International Reserves: No est v $35.4B prior
(BR) Brazil Dec Industrial Production M/M: 0.0% v -0.4%e; Y/Y: -3.6%-4.8%e
(IN) India Forex Reserves w/e Jan 25th: $295.7B v $295.7B prior
(BR) Brazil Jan PMI Manufacturing: 53.2 v 51.1 prior
(CZ) Czech Jan Budget Balance (CZK): 42.4B v -101.0B prior
(US) Jan Change in Nonfarm Payrolls: +157K v +165Ke; Change in Private Payrolls: +166K v +168Ke; Change in Manufacturing Payrolls: +4K v +10Ke
(US) Jan Unemployment Rate: 7.9% v 7.8%e; Underemployment Rate: 14.4% v 14.4% prior; Change in Household Employment: +17K v +28K prior
(US) Jan Avg Hourly Earning M/M: 0.2% v 0.1%e; Y/Y: 2.1% v 2.1%e v 2.1% prior; Avg Weekly Hours: 34.4 v 34.5e
(US) Jan Final Markit US PMI Manufacturing: 55.8 v 55.5e
(CA) Canada Jan Manufacturing PMI: 50.5 v 50.4 prior
(US) Jan Final University of Michigan Confidence: 73.8 v 71.5e
(US) Jan ISM Manufacturing: 53.1 v 50.6e; Prices Paid: 56.5 v 56.0e
(US) Dec Construction Spending M/M: 0.9% v 0.6%e
(MX) Mexico Dec Remittances: $1.7B v $1.7Be

-Selling short SPY, DIA here.

ARKETS – AT A GLANCE
1:30 p.m. EST 02/01/13Major Stock Indexes
Last Change % Chg
DJIA 14005.49 144.91 1.05
Nasdaq 3180.49 38.36 1.22
S&P 500 1513.29 15.18 1.01
DJ Total Stock Market 15792.82 157.46 1.01
Russell 2000 912.35 10.26 1.14
Global Dow 2126.68 13.92 0.66
Japan: Nikkei Average* 11191.34 52.68 0.47
Stoxx Europe 600* 288.20 0.98 0.34
UK: FTSE 100* 6347.24 70.36 1.12
 
1:29 p.m. EST 02/01/13Treasurys
Price Chg Yield %
2-Year Note 0/32 0.273
10-Year Note -2/32 1.998
* at close
1:20 p.m. EST 02/01/13Futures
Last Change Settle
Crude Oil 97.53 0.04 97.49
Gold 1670.1 8.1 1662.0
E-mini Dow 13943 146 13797
E-mini S&P 500 1509.00 15.75 1493.25
1:30 p.m. EST 02/01/13Currencies
Last (mid) Prior Day †
Japanese Yen (USD/JPY) 92.49 91.72
Euro (EUR/USD) 1.3666 1.3578

-I will do a USA jobs summary this weekend or tonight. I put Bob Reichs take up on today’s numbers. He is the best labor secretary in history by way of Job Creation. There is a lot of fraud in this current report and I want to get to the bottom of it. Obama needed the economic momentum to maintain his political enslavement and terrorist regime. Normally that weak Jobs report for Jan would have crushed the markets so the books were cooked in prior months when CEO said they were not hiring on polls due to the fiscal cliff and the governments were not hiring.

-1310 European Summary

The Euro charged through the 1.36 handle where I made a big move on a long term short of the Euro. At 140 Europe job growth is DOA. Despite an uptick in the European PMIs last  night , France went the wrong way and EU and Italian unemployment is stuck. What are the cocky German cheering about, a manufacturing contraction again and tepid global growth. Clearly markets are being run on ‘Central Bank’ Rhetoric and the ECB/ESM and FED/PPT money and black boxes following the MO. I sold the DAX mania short and would only start to scale that back at 800.

Spain’s IBEX was down -1.7 pc, some due to the Rajoy scandal, and some due to the naked short ban being lifted just as that broke. Italy’s MIB was down .7 pc on their lousy Jobs report and PMI, although Berlusconi is closing the gap with the Commie Bersani. I’m rooting for Berlusconi here. The mighty DAX was up .74 pc to 7833, an even the CAC was run on the USA jobs report, and up 1.1 pc to 3773. The evil FTSE was up 1.1 pc to 6347. The Broad Stoxx was more sanguine about the USA econometric blather and was only up .3 to 288. Greece also took a drubbing today down nearly 1 pc.

Bond markets were well controlled in Europe today by the ESM/ECB and finished near where they started the day at. No one has bond auctions when they have a lot to sell  on Friday especially in Europe, as I was often the only guy in the office on Friday working in Europe when I lived there. The ESM/ECB are manipulating the European bond markets daily to try and prevent Berlusconi or this Italian comedian from gaining power and setting Monti up either with the Finance portfolio if he cant win the PM outright. The Germans sure don’t want a fighter like Berlusconi back who wont let German bankster or Anglo-Zionist banksters pick Italy’s carcass clean like in Greece. The last guy I would vote for would be Mario Monti in Italy.

There is no hope for Greece and it is just a matter of when before it has to leave the EU. The more the German bankers and Burgermeister squeeze the peripheral countries the higher the Euro goes but at some point, unless enormous money printing is done to take the ECB balance sheet up another 1 tln Euros, France or Spain or even the banking crisis in Italy will shatter the EU apart and burst the Germans dream of running Europe and forcing the English to grovel to them for a bailout. London ‘traders’ or schemers say it is only 3 months away before the big bang in Europe, who knows, not me. .

AEP had a good article that if the England does not stay in the EU in some manner, their pirate franchise will go away of course he is MI6 and speaks the wishes of Prince Charles and Jacob Rothschilds. The European money center banks want some kind of general financial armistice with the aggrieved losers on the other side of the LIBOR rig for no jail terms. Somewhat akin to Mortgage gate in the USA and Mozillo of Countrywide walking off with all that personal loot and handing the bill to the USA taxpayers. So many scandals and so much corruption is going in Europe daily you can hardly follow it.

The MPS scandal  (Bank Monte P. to Americans) is really exploding in the Italian press, as Dozens of people were said to be under investigation at UniCredit, Intesa Sanpaolo, BNL and Credem as well as Monte dei Paschi itself. DB, and probably JPM and maybe GS ,sold these ‘marks’ in Italy these fraudulent IRS contracts, basically fraudulent insurance contract with nothing behind them, then when the losses mounted they hid the contracts and losses, which should be just nulled out anyways, and the German government really in reality just had the impoverished Italian working class with a bailout DB and probably JPM London and GS-london whom appear to have been involved in the IRS  Fraud as well. Recall I said after the CDS /housing when bust we would start to see the IRS derivative market go bust. And just think IRS are being pushed artificially down when they should be rising, which is how DB made its money, and what will happen when the Loomis Sayles reality hits and the Bond markets start to go bust. If I was Italian I would accuse the Germans of being financial Nazis, since at least at this point the Zionist controlled German bank DB was the big , probably 5 billion dollar when on the IRS derivatives. English money centers banks are scrambling like crazy to set aside capital to settle their IRS SWAP swindles as Rothschilds is going to make them pay up to bring some cloak of decency back to the English so then can continue to grow wealthy just from credit cycle contractions and expansions. I will cover at some point how IRS and CDS swaps work mathematically and what frauds they are how not even banks really can value them.

Bond market followers will recall  last week saw the announcement that a whopping EU137bn would be repaid. But this week the number fell short of forecasts of €20bn, coming in at just €3.5bn.

In my mind things really must be horrible in the UK and France to green-light this Boeing Sabotage. You would think they would find a more sophisticated way to sabotage the plane that would not stick out  mathematically, or just blow one up in the air like the illuminati has done time and time again until Airbus can secure some of these big orders that are pending. I guess they are trying to bring Boeing into coughing up more key technology over to Airbus/Europeans and the Chinacoms. I have a different mathematical perspective than the general reader on this issue. Boeing probably has its own lever by now as it has plenty of PHDs who can figure out what went on, and probably enough dirt  to back the Globalist/European/Chinacom hoards off and back off the criminal  USA NTSB run by the literal Zionist Jew, school bus driver. Boeing is not stupid about how badly Europeans covet so many things in their designs as well as China and even Japan.

Consumer price inflation moderated to 2 pc, but on European blogs , especially Germans most people say it is much higher. Eurostats is using a lot of the same statistical machinations   as the UK ONS and BLS/Commerce departments. Put it this way, the EU has at best flat growth yet a near 5 pc y/y monetary growth rate. The ECB is not sterilizing and inflation is basically the monetary growth rate over the real GDP growth rate. Inflation in the USA an the EU are harmonized by monetary policy officially at 2 pc, but in reality both are 5 pc. See www.shadowstats.com, if you cant do your own CPI/PPI arithmetic. Historically one of the best barometers of inflation is the price of a 1 oz Hershey or Toblerone (Swiss ) Chocolate bar. I have some data. Ask your wife about the price of chocolate. On a further point with ‘outsourcing’ Hershey’s margins are 41  pc. I can tell you PHDs in science and engineering lust after that type of gross profit with a boat load of patents, yet few can obtain that. Technology is very high risk compared to manufacturing chocolate bars where you only upgrade your plants once every 10 years, versus ever 18 months for technology platforms.

Youth unemployment remains the verboten issue of the Euro bulls, with no real labor reform in Europe. In December 2012, the youth unemployment rate was 23.4% in the EU and 24.0% in the eurozone. That compares with 22.2% and 21.7% respectively in December 2011. I would say the EU was ticking up if the youth unemployment numbers were headed down, but they are not, much like in the USA when I discuss todays job report in more depth, which will probably be this weekend.

The Euro pols were silent today, as there is a hastily arranged ‘security’ meeting in Munich centered around the blood thirsty Jews that run Israel and their demands wrt to Syria. The DM of Germany is basically demanding the USA do the dirty work in Mali , and Syria to protect the European and City of London controlled OPEC gang.

As I said to myself in Greece over 30 years ago, if Americans knew what patsies they were for the Europeans and all their vacations and how craven England controls and destroys the USA, there would be riots in the street and a national boycott on all European products or we would go to war with those people and install our own people to watch their royals and bankers and pols. The Europeans have had La Dolce Vita, including the Germans on the back of USA technology and military prowess and have not paid the tribute the USA should be owed for securing Europes oil supply and protecting the OPEC cartels monopoly pricing. Cant blame the Germans for copying the Jews and having others fight and die in  the oil wars for them and pay for them. The Germans have learned a thing or two over the years.

The FED was all over the tape today taking the place of the pols meeting in Germany.

-The global economy is better placed than it was six months ago, said New York Federal Reserve president William Dudley.In a speech to a gathering of bankers, he pointed to improvements in the economies of Europe, Japan and China to show the situation around the world is gradually improving Reuters

-Former Labor Sec Bob Reich on Today’s Job Report

The Jobs Report, and Why the Recovery Has Stalled

FRIDAY, FEBRUARY 1, 2013

We are in the most anemic recovery in modern history, yet our political leaders in Washington aren’t doing squat about it.

In fact, apart from the Fed – which continues to hold interest rates down in the quixotic hope that banks will begin lending again to average people – the government is heading in exactly the wrong direction: raising taxes on the middle class, and cutting spending.

The Bureau of Labor Statistics reported Friday that American employers added only 157,000 jobs in January. That’s fewer than they added in December (196,000 jobs, as revised by the Bureau of Labor Statistics). The overall unemployment rate remains stuck at 7.9 percent, just about where it’s been since September.

The share of people of working age either who are working or looking for jobs also remains dismal – close to a 30-year low. (Yes, older boomers are retiring, but the major cause for this near-record low is simply the lack of jobs.)

And the long-term unemployed, about 40 percent of all jobless workers, remain trapped. Most have few if any job prospects, and their unemployment benefits have run out, or will run out shortly.

Close to 20 million Americans remain unemployed or underemployed.

It would be one thing if we didn’t know what to do about all this. But we do know. It’s not rocket science.

The only reason for employers to hire more workers is if they have more customers. But American employers have not had enough customers to justify much new hiring.

There are essentially two sources of customers: individual consumers, and the government. (Forget exports for now; Europe is contracting, Japan is a basket case, China is slowing, and the rest of the world is in economic limbo.)

American consumers – whose purchases constitute about 70 percent of all economic activity – still can’t buy much, and their purchasing power is declining. The median wage continues to drop, adjusted for inflation. Most can’t borrow because they don’t have a credit record sufficient to allow them to borrow much.

And now their Social Security taxes have increased, leaving the typical worker with about $1,000 less this year than last.

The Conference Board reported last Tuesday consumer confidence in January fell its lowest level in more than a year. The last time consumers were this glum was October 2011, when there was widespread talk of a double-dip recession.

The only people doing well are at the top – but they save a large part of what they earn instead of spending it.

Overall personal income soared by 8 percent in the final three months of 2012 compared to an increase of just over 2 percent in the third quarter, but this income didn’t go into the pockets of the middle class. It went into the pockets of people at the top.

Wages and salaries grew a measly six-tenths of one percent.

Most of the rise in personal income in the last quarter was from companies rushing to pay dividends before taxes were hiked in 2013, and from an upturn in personal interest income. Both these sources of income went mostly to the well-to-do.

This explains why consumer spending is dropping. The Commerce Department said Thursday consumers’ spending rose 0.2 percent last month. That’s slower than the 0.4 percent increase in November.

So if we can’t rely on consumers to stoke the economy, what about government? No chance. Government spending is dropping, too.

The major reason the economy contracted between the start of October and end of December 2012 was a major reduction in government spending in the fourth quarter.

Government spending has declined in nine of the last ten quarters, but it took a precipitous drop in the last quarter. This was mainly because military spending fell 22.2 percent. That’s the largest fall-off since 1972 (mainly due to reduced spending on the war in Afghanistan, and worries by military contractors about further pending cuts). State and local spending also continued to fall.

Personally, I’m glad we’re spending less on the military. It’s the most bloated part of the government. Major cuts are long overdue. But the military is America’s only major jobs program. Cutting the military without increasing spending on roads, bridges, schools, and everything else we need to do simply means fewer jobs.

What’s ahead? More of the same. So what possible reason do we have to suspect the recovery will pick up speed? None.

Don’t count on consumer spending. Wages and benefits continue to drop for most people, adjusted for inflation. States are hiking sales taxes, which will hit the middle class and the poor hardest. Deficit hawks in Washington are contemplating additional tax hikes on the middle class.

Housing prices are stabilizing, thankfully. But one out of five homeowners is still underwater, and the ranks of people renting rather than owning are rising. Health-care costs are also rising for most people in the form of higher co-payments, deductibles, and premiums.

Don’t count on government, either. Government spending continues to head downward. The White House has already agreed to major spending cuts, some to go into effect this year. Coming showdowns over the next fiscal cliff, appropriations to fund government operations, and the debt ceiling will likely result in more cuts.

More jobs and faster growth should be the most important objectives now. With them, everything else will be easier to achieve – protection against climate change, immigration reform, long-term budget reform. Without them, everything will be harder.

Yet we’re moving in the opposite direction — following Europe’s sorry example of failed austerity economics.

From Bob’s Blog

-Energy Secretary Steven Chu steps down. Obama hails him for bringing “a unique understanding” of climate change and clean energy. NYT

Yeah, he killed the coal industry, proliferated the very filthy nuclear power, did not aid Japan with Fukushima and greenlighted dumping massive money into the friends of Obama green energy firms that went bankrupt. Typical Chinacom from UC Berkeley. I never understood his selection for a Nobel Prize in physics anymore than Obama’s Nobel Prize in Peace. Now I do. Nuclear power is so filthy it is hard to describe the problems to the lay person. Big backer of the Global warming hoax as well. I would like to point to one decent thing he did, but could not and as some of you may know, Fusion Research in the USA was a massive fail and he failed to roll out PBMR in a timely manner, but those are probably reserved for literal ‘off world’ execursions the NWO has planned. An  utter whore like virtually every single USA Federal Government high level employee. That BP came in and purchased his department for 250 million or so at UC Berkeley should come as no surprise either, although I think the headline amount was 1 billion.

-European Close and Summary

Country: Index Last Change % Chg
Europe Dow 1795.09 19.95 1.12
Stoxx Europe 50 2639.92 -1.34 -0.05
Stoxx Europe 600 288.18 0.96 0.33
Euro Stoxx 50 2709.66 6.68 0.25
Euro Stoxx 270.21 1.64 0.61
Austria: ATX Index* 2440.39 -5.65 -0.23
Belgium: Bel-20 2560.01 39.66 1.57
Denmark: OMX Copenhagen 20* 547.66 11.93 2.23
Estonia: OMX Tallinn* 774.26 3.45 0.45
Finland: OMX Helsinki* 6148.19 81.46 1.34
France: CAC 40* 3773.53 40.93 1.10
Germany: DAX* 7833.39 57.34 0.74
Greece: Athens General* 977.27 -9.49 -0.96
Greece: DJ Greece TSM* 740.28 -7.73 -1.03
Greece: FTSE/ATHEX 20* 328.41 -3.74 -1.13
Iceland: OMX Iceland All-Share* 754.55 5.18 0.69
Ireland: ISEQ Overall * 3582.58 36.25 1.02
Italy: FTSE MIB 17318.94 -120.12 -0.69
Latvia: OMX Riga* 400.15 -0.22 -0.05
Lithuania: OMX Vilnius* 373.47 -0.26 -0.07
Netherlands: AEX* 355.55 1.20 0.34
Norway: OSE All-Share* 519.85 5.16 1.00
Portugal: PSI 20 6254.44 53.01 0.85
Russia: DJ Russia Titans* 6627.44 -9.65 -0.15
Spain: IBEX 35* 8219.40 -142.90 -1.71
Sweden: OMX Stockholm* 365.68 2.58 0.71
Switzerland: Swiss Market* 7420.35 29.49 0.40
UK: FTSE 100* 6347.24 70.36 1.12
UK: FTSE 250* 13275.76 245.27 1.88
UK: FTSE AIM All-Share* 740.92 7.78 1.06

Bonds
U.S. 10y 1.97-0.02, 1.00%
German 10y1.67-0.02, 0.96%
Italy 10y  4.28+0.01, -0.24%
Spain 10y  5.20+0.00, -0.06%
U.K. 10yr 2.10-0.00, 0.02%

 

-Corrupt Coal Killer

Energy Secretary Steven Chu is stepping down http://bit.ly/VzIaEO 

Did his work for his communist Kin in China!!

-If you’re an applied mathematican, and engineer like myself you can only conclude mathematically the B787 failure was sabotage. That key airlines, like Turkey were ready to place big orders, and the B787 was seen as the clear winner, had nothing to do with it or France Imploding under the bloody Jewish war criminal Hollande. Boeing has plenty of people able to put paper to pen and figure out the battery monitor-safe system failure was not ‘random’. Europe a very antichrist secular, NWO united states of England and Rothschild is making war upon the American people. Europeans sit like fat cats, and demand we fight their oil wars. Just like the French stood down as American had to do the dirty fighting and the Russians in WW2. This crisis was a good thing as it reminded me how corrupt and dark and Godless and dishonest Europe and in particular England is. Sadly under Obama Americans are becoming corrupt,LGBT worshipping pigeons just like the Eurotrash. Ameritrash the time is here, sadly. No wonder the antichrist is called lawless and the son of perdition.

-1139 Major Indexes

Last Change % Chg
DJIA 13995.54 134.96 0.97
Nasdaq 3167.96 25.83 0.82
S&P 500 1511.11 13.00 0.87
DJ Total Stock Market 15767.43 132.07 0.84
Russell 2000 908.44 6.35 0.70
 

-1130 Europe Closed

-How Communism works

Elections in Cuba this weekend. The Communist Party is expected to hold onto all 614 seats. Wire story..

Lol. Fidel is by his own admission a  Sephardic Jew. The CIA needed an enemy to terrorize the American people with to give all their money for the military-industrial complex.

-1113 Global MFG limping along…

The global manufacturing sector made an encouraging start
to 2013, showing further signs of recovery following the soft
patch seen through the middle of last year.
At 51.5 in January, the JPMorgan Global Manufacturing
PMI™ – a composite index* produced by JPMorgan and
Markit in association with ISM and IFPSM – rose to a tenmonth
high and has posted back-to-back readings above
the 50.0 expansion mark around the turn of the year.
Global manufacturing production rose for the third straight
month and at the fastest pace since March last year. Growth
was led by the US, were the rate of expansion hit a tenmonth
peak, and Mexico. The trend in China manufacturing
output also strengthened to its highest for almost two years.
Emerging markets also contributed to the latest expansion
of global manufacturing activity, with output rising in Brazil,
Russia, India, Turkey, Taiwan and Vietnam.

Global Manufacturing PMI™ Summary

Dec Jan Change Summary, rate of change
Global PMI 50.1 51.5 + Expanding, faster rate
Output 50.4 52.4 + Expanding, faster rate
New Orders 49.7 51.8 + Expanding, from contracting
Input Prices 55.1 55.4 + Rising, faster rate
Employment 50.3 50.8 + Rising, faster rate
Global manufacturing PMI at ten-month high in January
50 = no change on previous month.

-Whack Gold Theater, fun and profits for FED member firms.

The Federal Reserve could slow down, rather than abruptly stop, its $85 billion per-month asset purchases if the economy continues to improve as the year progresses, said James Bullard, the president of the St. Louis Fed on Friday. In an interview with Bloomberg TV, Bullard said any tapering would not be tightening, but would just be “a slower pace of easing” policy and would avoid the risk of a sudden stop to buying assets. Bullard said he expects the unemployment rate to continue to tick down in 2013. Asked if he expected that the Fed would be able to slow or stop QE by the end of the year, he replied: “We are going to have to see how the economy progresses during the year. And if we do get enough improvement in the labor markets then we’ll have had a good year and we’ll be in a position to slow down or stop the purchases.” Bullard is a voting member of the Fed’s interest-rate setting committee this year. MW

The umemployment just ticked up!!

-Why is the UN so Corrupt. (Hint, Windsors, Rothschilds, Rockefeller and their kin)

Russia: Draft bill on ‘homosexuality propaganda’ may undermine human rights – UN experts: http://bit.ly/Vz6dnw 

Pederasts and Paedophiles demand to sexually molest your kid so life long mental problems and demonic affliction can begin. Queers love that young flesh. When I was a  young boy , I literally almost had to beat them with a baseball bat to get them to leave me alone. I refuse to bow to this politically correct nonsense that I have to accept the LGBT lifestyle and that is a human ‘right’ anymore than adultery or being a paedophile is a ‘right’. The UN is one of the greatest forces for evil in the world and extraordinarily corrupt, only the Bankers and the Royals exceed the UN in sheer depravity and hatred of the human spirit and God. And our tax dollars support this garbage. Truly amazing. The USA political elites, the Anglosaxon and Jews, the LGBT crowd, illegal immigrant crowd, and satanist get political representation and this 20 pc minority rules like a brutal tyrant over everyone else! Out of the UN now. Zeno is a big fan of this corrupt organization for some reason I never fathomed. The English Crown through the Commonwealth nation has the majority of the votes, so you know who runs that thing, especially if you know the gulf state Arabs are distant kin of hers now through intermarriage with the Saudi Royals who are Iraqi Jews, not Arabs at all. Want to know what Abraham probably looked like go look at the Saudi King.

-Why is Spain So Corrupt?

http://www.economist.com/blogs/charlemagne/2009/03/why_is_spain_so_corrupt

-INTERNATIONAL MARKETS OVERVIEW

10:57 a.m. EST 02/01/13Major Stock Indexes
Last Chg %Chg
Global Dow 2124.53 11.77 0.56
DJ Global Total Stock Market 2806.98 15.83 0.57
DJ Global exUS TSM 2211.02 10.56 0.48
DJ Asia-Pacific TSM 1352.24 -4.60 -0.34
 Australia: S&P/ASX* 4921.10 42.30 0.87
 China: Shanghai Composite* 2419.02 33.60 1.41
 Hong Kong: Hang Seng* 23721.84 -7.69 -0.03
 India: BSE Sensex* 19781.19 -113.79 -0.57
 Japan: Nikkei Average* 11191.34 52.68 0.47
 Taiwan: TAIEX* 7855.97 5.95 0.08
Stoxx Europe 600 288.67 1.45 0.50
 Belgium: Bel-20 2559.49 39.14 1.55
 France: CAC 40 3780.90 48.30 1.29
 Germany: DAX 7833.03 56.98 0.73
 Italy: FTSE MIB 17353.92 -85.14 -0.49
 Sweden: OMX Stockholm 366.06 2.96 0.82
 UK: FTSE 100 6338.49 61.61 0.98
DJ Americas TSM 3923.40 25.89 0.66
 Argentina: MerVal 3514.53 52.11 1.51
 Brazil: Bovespa 60197.59 436.10 0.73
 Canada: S&P/TSX 12761.76 76.52 0.60

- 1056 Construction spending jumped in December to wrap up a seven-year annual high as the housing market continued its recovery, the government reported Friday.Construction spending picked up at the end of last year, rising 0.9% to an annualized rate of $885 billion, the Commerce Department reported.November construction spending was upwardly revised to 0.1% growth from an initial read of a drop of 0.3%.Economists had expected a pick-up in December after a warm month, as a MarketWatch-compiled consensus called for an 0.8% advance.For all of 2012, spending grew 9.2%, the best gain since 2005, as the housing market began its recovery — residential construction ballooned by 22.3% last year.At long last, the pick-up in spending is starting to translate to jobs creation in the sector. The Labor Department said separately Friday that construction employment has grown by 296,000 since January 2011, with one-third of that gain in the last four months. Nonresidential construction grew a modest 1.2% in 2012 — reflecting the tentative corporate environment. MW

-1040 Europe

Spain down near 2 pc on lifting short selling ban. Banks and builder stocks hit hard.

Country: Index Last Change % Chg
Europe Dow 1794.77 19.63 1.11
Stoxx Europe 50 2645.47 4.21 0.16
Stoxx Europe 600 288.65 1.43 0.50
Euro Stoxx 50 2712.53 9.55 0.35
Euro Stoxx 270.38 1.81 0.67
Austria: ATX Index 2440.37 -5.67 -0.23
Belgium: Bel-20 2557.29 36.94 1.47
Denmark: OMX Copenhagen 20 548.77 13.04 2.43
Estonia: OMX Tallinn* 774.26 3.45 0.45
Finland: OMX Helsinki 6156.04 89.31 1.47
France: CAC 40 3780.59 47.99 1.29
Germany: DAX 7833.83 57.78 0.74
Greece: Athens General* 977.27 -9.49 -0.96
Greece: DJ Greece TSM* 740.17 -7.84 -1.05
Greece: FTSE/ATHEX 20* 328.41 -3.74 -1.13
Iceland: OMX Iceland All-Share* 754.55 5.18 0.69
Ireland: ISEQ Overall 3589.23 42.90 1.21
Italy: FTSE MIB 17299.14 -139.92 -0.80
Latvia: OMX Riga* 400.15 -0.22 -0.05
Lithuania: OMX Vilnius* 373.47 -0.26 -0.07
Netherlands: AEX 356.40 2.05 0.58
Norway: OSE All-Share 519.85 5.16 1.00
Portugal: PSI 20 6260.38 58.95 0.95
Russia: DJ Russia Titans* 6633.21 -3.88 -0.06
Spain: IBEX 35 8212.20 -150.10 -1.79
Sweden: OMX Stockholm 365.92 2.82 0.78
Switzerland: Swiss Market 7430.17 39.31 0.53
UK: FTSE 100 6336.88 60.00 0.96
UK: FTSE 250 13239.31 208.82 1.60
UK: FTSE AIM All-Share 739.54 6.40 0.87

-1047 If growth is so grand, what is wrong with APPL?

AAPL . $450.67 ..

-Toyota January sales in the U.S. up 26.2%; higher than estimated 22%

-The FED sent Bullard onto BBN then the Cartel whacked gold on the backs of that and the ISM. What a rigged market. The IMF looks set to give China a bigger voting share as it accumulates the gold. No doubt China will have to contribute some to get those votes, and the IMF no doubt will loan that synthetically to London.

-Market Watch

10:27 a.m. EST 02/01/13Major Stock Indexes
Last Change % Chg
DJIA 13988.98 128.40 0.93
Nasdaq 3163.60 21.46 0.68
S&P 500 1509.26 11.15 0.74
DJ Total Stock Market 15747.65 112.29 0.72
Russell 2000 908.19 6.10 0.68
Global Dow 2124.44 11.68 0.55
Japan: Nikkei Average* 11191.34 52.68 0.47
Stoxx Europe 600 288.93 1.71 0.60
UK: FTSE 100 6331.25 54.37 0.87
 
10:26 a.m. EST 02/01/13Treasurys
Price Chg Yield %
2-Year Note 2/32 0.242
10-Year Note 7/32 1.964
* at close
10:17 a.m. EST 02/01/13Futures
Last Change Settle
Crude Oil 97.30 -0.19 97.49
Gold 1670.6 8.6 1662.0
E-mini Dow 13939 142 13797
E-mini S&P 500 1506.00 12.75 1493.25
10:27 a.m. EST 02/01/13Currencies
Last (mid) Prior Day †
Japanese Yen (USD/JPY) 92.36 91.72
Euro (EUR/USD) 1.3647 1.3578
† Late New York trading.

-Gold futures pared earlier gains Friday, while oil futures cut their losses following data showing that construction spending jumped in December and activity for U.S. manufacturers climbed in January. April gold GCJ3 +0.43%traded at $1,670.80 an ounce on the Comex division of the New York Mercantile Exchange. It had traded around $1,677 before the latest data, buoyed by figures on U.S. jobs. March crude oil CLH3 -0.18% traded at $97.27 a barrel on Nymex, down 22 cents, or 0.3%. It was trading below $97 before the ISM data.

-Gross: Steady to higher participation rate suggests unemployment a long time away from 6.5%. Sell long-term bonds, own 5-7 yr maturities.

-Activity for the nation’s manufacturers strengthened in January, the Institute for Supply Management reported Friday. The ISM index rose to 53.1% in January from 50.2% in December. This was stronger than expected and the highest level since April. The consensus forecast of estimates collected by MarketWatch was for the index to rise to 51.0%. Readings above 50 indicate expansion. The new-orders index rose to 53.3% in January from 49.7% in the prior month. The employment index rose to 54.0% from 51.9% in December. Production rose to 53.6% from 52.6% in the prior month.  MW

Buying cars and tools by construction people and strong builds at Boeing.

-EU – YouGov poll: 38% of Britons would vote to stay in EU, 38% to leave. Germans: 60%, 25% French: 49%, 32% Danes: 57%, 29% Finns: 47%, 33%

-Dow just popped over 14000, short selling here. Futures 60 points under 14,000.

-GM’s January sales rise 16% in U.S.

-BBN reports at least one person killed at USA embassy in Turkey as suicide bomber strikes.

-January ISM new orders 53.3% vs 49.7% in Dec. U.S. Jan. ISM factory index 53.1% vs. 50.2% Dec.

-UOM Sentiment nudges up

The University of Michigan-Thomson Reuters consumer-sentiment gauge rose to final January reading of 73.8 from 72.9 in December, reports said Friday. Economists polled by MarketWatch had expected a final January reading of 71.5, compared with a preliminary reading of 71.3, with higher payrolls taxes continuing to weigh on consumers’ moods. January’s result follows a plunge in December, when consumers were worried about the fiscal cliff. The sentiment gauge, which covers how consumers view their personal finances as well as business and buying conditions, averaged about 87 in the year before the most recent recession. Economists watch sentiment data to get a feel for the direction of consumer spending. MW

-I need to update the newslinks quite a bit now that we are through the morning data rush, then put out a comment on the jobs report.

-GERMANY’S SCHAEUBLE: ‘THE EURO CRISIS IS NOT OVER’

Don’t tell  that to your fellow Germans or Herr Regling who is on a tear this morning in the bond and equity markets.

-Hey, good news German and American taxpayers (since we bailed DB out with TARP funds). DB said bonuses are going to be limited to only 300k euros for the banksters. This from a bank just implicated in what may amount to a 5 billion dollar fraud wrt to IRS contracts with MPS.

-I continued with my themes of selling the SPY and DAX short, and finally piled in quite a bit to medium to long term Euro short at 136 through and ETF, that allows you to be long the short position at reasonable cost. I started buying at 1.33 and boxed a bit , but unloaded today. The higher the EU /dollar goes the worse it become for the at at 1.40 even Germany shuts down. I guess they think in Europe, the B787 sabotage is going to help them. The market is buying the strange upwardly revised numbers, and ignoring the overall weak Jan report.

-The Jew in Hollande comes out

The French Government plans to cut unemployment payouts as Economic crisis worsens in france

-Bill Gross: “This is the way the world ends… Not with a bang but a whimper.”

-Dell Buyout Possible on Monday

Tech stocks rose in early trading Friday, with notable gains coming from Dell Inc.DELL +3.97% and Netflix Inc. NFLX +4.22% . Dell shares rose 5% following reports that a deal to take the PC company private could be announced as early as Monday. Netflix was up almost 4%, to $171.39, as the online video-streaming company debuted all 13 episodes of its original series “House of Cards” and made the first episode free to non-subscribers. The Nasdaq Composite Index rose 19 points to 3,161.  MW

Long Dell @$12.5

-Ford Jan. U.S. auto sales up 22% to 162,310 units

-MARKETS – AT A GLANCE

9:40 a.m. EST 02/01/13Major Stock Indexes
Last Change % Chg
DJIA 13939.12 78.54 0.57
Nasdaq 3161.59 19.46 0.62
S&P 500 1505.64 7.53 0.50
DJ Total Stock Market 15710.85 75.49 0.48
Russell 2000* 902.09 5.18 0.58
Global Dow 2121.20 8.44 0.40
Japan: Nikkei Average* 11191.34 52.68 0.47
Stoxx Europe 600 288.81 1.59 0.55
UK: FTSE 100 6325.23 48.35 0.77
 
9:40 a.m. EST 02/01/13Treasurys
Price Chg Yield %
2-Year Note 2/32 0.250
10-Year Note 16/32 1.934
* at close
9:30 a.m. EST 02/01/13Futures
Last Change Settle
Crude Oil 96.74 -0.75 97.49
Gold 1680.9 18.9 1662.0
E-mini Dow 13900 103 13797
E-mini S&P 500 1502.50 9.25 1493.25
9:40 a.m. EST 02/01/13Currencies
Last (mid) Prior Day †
Japanese Yen (USD/JPY) 91.90 91.72
Euro (EUR/USD) 1.3606 1.3578
† Late New York trading.

-931  USA opening

Last Change % Chg
DJIA 13953.79 93.21 0.67
Nasdaq 3162.47 20.33 0.65
S&P 500 1506.19 8.08 0.54
DJ Total Stock Market 15711.87 76.51 0.49

-Europe ahead of USA Opening

Country: Index Last Change % Chg
Europe Dow 1788.71 13.57 0.76
Stoxx Europe 50 2648.32 7.06 0.27
Stoxx Europe 600 288.86 1.64 0.57
Euro Stoxx 50 2713.31 10.33 0.38
Euro Stoxx 270.31 1.74 0.65
Austria: ATX Index 2433.78 -12.26 -0.50
Belgium: Bel-20 2554.68 34.33 1.36
Denmark: OMX Copenhagen 20 546.47 10.74 2.00
Estonia: OMX Tallinn* 774.26 3.45 0.45
Finland: OMX Helsinki 6154.49 87.76 1.45
France: CAC 40 3779.49 46.89 1.26
Germany: DAX 7814.94 38.89 0.50
Greece: Athens General 981.41 -5.35 -0.54
Greece: DJ Greece TSM 744.70 -3.31 -0.44
Greece: FTSE/ATHEX 20 329.73 -2.42 -0.73
Iceland: OMX Iceland All-Share 753.19 3.82 0.51
Ireland: ISEQ Overall 3589.01 42.68 1.20
Italy: FTSE MIB 17352.91 -86.15 -0.49
Latvia: OMX Riga* 400.15 -0.22 -0.05
Lithuania: OMX Vilnius* 373.47 -0.26 -0.07
Netherlands: AEX 356.42 2.07 0.58
Norway: OSE All-Share 518.27 3.58 0.70
Portugal: PSI 20 6263.40 61.97 1.00
Russia: DJ Russia Titans 6640.97 3.88 0.06
Spain: IBEX 35 8231.10 -131.20 -1.57
Sweden: OMX Stockholm 365.56 2.46 0.68
Switzerland: Swiss Market 7436.19 45.33 0.61
UK: FTSE 100 6325.63 48.75 0.78
UK: FTSE 250 13205.86 175.37 1.35
UK: FTSE AIM All-Share 736.22 3.08 0.42

-

-Homosexual, 3 time NYC, Zionist Mayor Koch Died.

-Short-term wholesale funding markets remain a point of weakness in the global financial system, said William Dudley, the president of the New York Fed, on Friday. While reform efforts have been under way since 2008, “we have not come close to fixing all the institutional flaws in our wholesale funding markets,” Dudley said in a speech to the New York Banker’s Association’s 2013 annual meeting in New York. Dudley laid out several options for reform of the tri-party repo market and repeated his call for reforms of money market mutual funds. He suggested that Congress may have to act by expanding the Fed’s lender-of-last-resort functions to cover these activities. This would then include greater federal oversight. MW

- The final reading for the U.S. manufacturing purchasing managers index in January was 55.8, worse than the flash reading of 56.1 but still a nine-month high, Markit reported Friday. Readings above 50 indicate expansion. The Institute for Supply Management’s manufacturing index, due at 10 a.m., is expected to show a reading of 51.0%. “The PMI suggests that…rising production will help the economy return to growth in the first quarter providing there are no set-backs in coming months,” said Chris Williamson, chief economist at Markit, in a statement. MW

-I will have some more in depth comments later on the jobs report. Some very strange things went on in the statistics at least for the household survey. Again this report is much weaker than it looks. I have not had time to look into the revised data to see if it legitimate. For the H/H Survey they increased the population size of the labor force, with no real data to support it, and without it the H/H survey would have shown -110k Jobs!!

- Chevron Corp.CVX -1.12% said fourth-quarter net profit rose to $7.25 billion, or $3.70 per diluted share, from $5.12 billion, or $2.58 per share a year earlier. The San Ramon, Calif.-based energy company said revenue fell to $56.3 billion from $58 billion. Analysts polled by FactSet had expected earnings of $3.06 a share. “Strong cash flows allowed us to invest aggressively in our major capital projects and to acquire several important, new resource opportunities,” said John Watson, chief executive officer. MW

-Exxon Mobil Corp. XOM -0.77% said Friday its fourth-quarter net profit rose 6% to $9.95 billion, or $2.20 a share. Analysts expected earnings of $1.99 a share, according to a survey by FactSet. Revenue fell to $115.17 billion from $121.6 billion. Exxon Mobil’s fourth-quarter capital expenditures were a record $39.8 billion in 2012. The oil and gas producer declared a cash dividend of $0.57 a share on common stock on January 30 payable on March 11, 2013. The first quarter dividend was at the same level as the dividend paid out in the fourth quarter. Exxon Mobil is the world’s biggest energy company, operating petroleum and petrochemicals businesses. Competitors are Marathon Oil Corp. MRO +0.18% , Chevron Corp. CVX -1.12% , BP PLC BP -0.89% and ConocoPhillips COP -5.06% . MW

-Euro-zone banks plan to repay just 3.48 billion euros ($4.76 billion) in LTRO loans next week, far less than last week’s inaugural figure, the European Central Bank said Friday. The ECB said it expects repayments from 27 banks, compared with 278 banks last week.

- U.S. stock-index futures maintained Friday’s advance after the government reported the U.S. economy created a less-than-expected 157,000 jobs in January but added more the prior two months than initially thought. Futures for the Dow Jones Industrial Average DJH3 +0.54%rose 71 points, or 0.5%, to 13,868. Futures for the S&P 500 index SPH3 +0.42% gained 6.3 points, or 0.4%, to 1,499.60. Those for the Nasdaq 100 NDH3 +0.70% added 14.5 points, or 0.5%, to 2,739.50. MW

-

MARKETS – AT A GLANCE
8:36 a.m. EST 02/01/13Major Stock Indexes
Last Change % Chg
DJIA* 13860.58 -49.84 -0.36
Nasdaq* 3142.13 -0.18 -0.01
S&P 500* 1498.11 -3.85 -0.26
DJ Total Stock Market* 15635.36 -21.80 -0.14
Russell 2000* 902.09 5.18 0.58
Global Dow 2117.37 4.61 0.22
Japan: Nikkei Average* 11191.34 52.68 0.47
Stoxx Europe 600 288.23 1.01 0.35
UK: FTSE 100 6309.50 32.62 0.52
 
8:36 a.m. EST 02/01/13Treasurys
Price Chg Yield %
2-Year Note 1/32 0.265
10-Year Note 3/32 1.978
* at close
8:27 a.m. EST 02/01/13Futures
Last Change Settle
Crude Oil 97.30 -0.19 97.49
Gold 1663.1 1.1 1662.0
E-mini Dow 13874 77 13797
E-mini S&P 500 1500.25 7.00 1493.25
8:37 a.m. EST 02/01/13Currencies
Last (mid) Prior Day †
Japanese Yen (USD/JPY) 92.05 91.72
Euro (EUR/USD) 1.3661 1.3578
† Late New York trading.

-832 USA BLS Jobs Report +157k, unemployment 7.9pc

Total Nonfarm payroll employment increased 157 k in Jan. Unemployment remained essentially unchanged at 7.9 pc the BLS Said. Retail trade, construction , health care and wholesale trade added jobs.

157,000 jobs added, a little below expectations. Unemployment rate ticks up slightly to 7.9%.

Average hourly earnings were up 4 cents in January. For the year, average hourly wages rose 2.1%, which is above the last CPI number, which was up 1.7% on the year in December.

Private companies added 166,000 jobs last month. Governments, on the other hand, shed 9,000 jobs

For all of 2012, the economy added an average of 181,000 jobs a month based on the revised figures. That’s better than the 153,000 monthly average previously reported.

November and December came in much stronger than the initial figures. December’s payroll figures were revised to a gain of 196,000, up from an initially reported 155,000. November increased to 247,000 from 161,000.

http://www.bls.gov/news.release/empsit.nr0.htm


 

–European Session Economic Release Summary

(IE) Ireland Jan NCB Manufacturing PMI: 50.3 v 51.4 prior; 9-month low but 6th straight reading in expansion territory)
(SE) Sweden Jan Swedbank PMI Survey:49.2 46.1e
(FR) France Jan New Car Registrations -15% y/y
(NO) Norway Jan PMI Survey: 50.5 v 50.4e
(HU) Hungary Nov Final Trade Balance: €181.6B v €703.8M prelim
(HU) Hungary Jan PMI Survey: 55.9 v 48.9 prior; highest since March 2012
(TR) Turkey Jan Manufacturing PMI: 54.0 v 53.1 prior; 22-month high
(PL) Poland Jan Manufacturing PMI: 48.6 v 48.8e
(EU) ECB: €335M borrowed in overnight loan facility vs. €3.0B prior; €185.4B parked in deposit facility vs. €165.9B prior
(ES) Spain Jan Manufacturing PMI: 46.1 v 45.5e; 21st straight reading in contraction territory
(AT) Austria Jan unemployment rate: 9.3% v 8.6% prior
(CZ) Czech Republic Jan Manufacturing PMI: 48.3 v 46.0 prior; 9th straight month of contraction
(CH) Swiss Jan PMI Manufacturing: 50.5e v 49.5 prior; first growth in 10 months
(CN) China Q4 Current Account: $65.0B v $70.8B prior
(IT) Italy Jan PMI Manufacturing: 47.8 v 47.4e; highest since March 2012 but 18th straight month of contraction
(FR) France Jan Final PMI Manufacturing: 42.9 v 42.9e; 11th straight month of contraction
(DE) Germany Jan Final PMI Manufacturing: 49.8 v 48.8e; 11th straight month of contraction
(EU) Euro Zone Jan Final PMI Manufacturing: 47.9 v 47.5e; 11th month high but also 11th straight month of contraction
(GR) Greece Jan Manufacturing PMI: 41.7 v 41.4 prior; 41st straight month of contraction
(IT) Italy Dec Preliminary Unemployment Rate: 11.2% v 11.2%e; highest since 1999
(NO) Norway Jan Unemployment Rate: 2.7% v 2.7%e
(ZA) South Africa Jan Kagiso PMI: 49.1 v 47.4 prior
(UK) Jan PMI Manufacturing: 50.8 v 51.0e; second straight month of expansion
(EU) Euro Zone Jan CPI Estimate Y/Y: 2.0% v 2.2%e
(EU) Euro Zone Dec Unemployment Rate: 11.7% v 11.9%e
(DK) Denmark Jan PMI Survey: 56.1 v 57.0 prior

 

-Dutch bank SNS Reaal nationalised

SNS Reaal, the Dutch bank and insurance firm, has been nationalised.The bank, whose chief executive and chairman have resigned, was this week in talks with private investors about raising capital.SNS, the Netherlands fourth-largest bank, had been given a 750m-euro (£644m) bailout in 2008.While SNS’s operations were thought to be mostly profitable, its finances had weakened to the point that they were below legal solvency limits.Although shareholders are likely to lose most, if not all, their investments, retail savers with deposits up to 100,000 euros are protected.Dutch Finance Minister Jeroen Dijsselbloem told a press conference on Friday: “Today, SNS Reaal has been fully taken over by the Dutch state. Without finding a solution, there was an immediate and dangerous situation for financial stability.”I had to conclude that nationalisation was inevitable.”Mr Dijsselbloem said the bank’s problems stemmed from a decline in the value of its property portfolio.Ronald Latenstein, the chief executive, and Rob Zwartendiik, the chairman, have stood down.In January, the European Commission blocked, on competition grounds, a plan by three other Dutch banks, ABN Amro, ING and Rabobank, to help SNS with a capital investment.The Commission said that ABN and ING had themselves previously received state aid.BBC Wire story

And this guy is the new EU head Finmin. Not a good way to start.

-Maggie Crackers, aka Maggie Thatchers home town does not want a statue of her until after she is dead, as she is not liked, and they can’t see making any money off  of her until she is dead. English calculus=moneyxunforgiveness^n

-London is betting if the EU crisis flares up France will need a bailout. That would be game over for Germany. Next three months is attack time frame.

-Armenia’s Presidential Candidate was shot, elections in doubt.

MARKETS – AT A GLANCE
4:05 a.m. EST 02/01/13Major Stock Indexes
Last Change % Chg
DJIA* 13860.58 -49.84 -0.36
Nasdaq* 3142.13 -0.18 -0.01
S&P 500* 1498.11 -3.85 -0.26
DJ Total Stock Market* 15635.36 -21.80 -0.14
Russell 2000* 902.09 5.18 0.58
Global Dow 2117.11 4.35 0.21
Japan: Nikkei Average* 11191.34 52.68 0.47
Stoxx Europe 600 288.17 0.95 0.33
UK: FTSE 100 6304.73 27.85 0.44
 
4:05 a.m. EST 02/01/13Treasurys
Price Chg Yield %
2-Year Note 0/32 0.277
10-Year Note -6/32 2.012
* at close
3:56 a.m. EST 02/01/13Futures
Last Change Settle
Crude Oil 97.34 -0.15 97.49
Gold 1665.1 3.1 1662.0
E-mini Dow 13857 60 13797
E-mini S&P 500 1498.50 5.25 1493.25
4:06 a.m. EST 02/01/13Currencies
Last (mid) Prior Day †
Japanese Yen (USD/JPY) 92.16 91.72
Euro (EUR/USD) 1.3651 1.3578
† Late New York trading.

-Norway, 2.7 unemployment :)!

-ITALY DEC. UNEMPLOYMENT 11.2%  unchanged

Berlusconi is gaining at the polls, Bersani only +5

-Eurozone Jan. Manufacturing PMI 47.9 V exp 47.5 prev 47.5

-Greece Manufacturing PMI  little changed at 41.7 in January (Dec: 41.4)

-German French Gap Soars

The gap between the #PMI manufacturing output indexes for France and Germany is at a record level. Decoupled

Looks like Hollande was probably the B787 culprit.

-There is still England, which I don’t care about as all it manufactures, is wars, financial piracy, sodomites, witches, and royal bootlickers, but ex France, mfg things in Europe nudged up a bit in Jan. Still German MFG is in contraction. Blame the USA, that is what you Eurotrash always do. I read your blogs.

-Germany Jan. Manufacturing PMI 49.8 v exp 48.8 , prev 46.0

-France Jan. Mfg PMI 42.9 v exp 42.9,  prev 44.6

Ouch.

-Italy Jan. Manufacturing PMI 47.8 v exp 47.4 , prev 46.7

–345, IT/FR/DE coming up

-Maybe Spain wants to rethink lifting the short sale ban? What a mess, builders hit hard.

-CZR Manufacturing PMI registers post best reading since last August. Rising from 41-month low of 46.0 in December to 48.3 in January.

-Swiss Manufacturing PMI (Jan) M/M 52.5 vs. Exp. 50.5 (Prev. 49.5, Rev. 49.2)

-BANCA POP MI HALTED +11.20%, BANCA MPS €0.2419 -1.91%

what a contrast

MARKETS – AT A GLANCE
3:28 a.m. EST 02/01/13Major Stock Indexes
Last Change % Chg
DJIA* 13860.58 -49.84 -0.36
Nasdaq* 3142.13 -0.18 -0.01
S&P 500* 1498.11 -3.85 -0.26
DJ Total Stock Market* 15635.36 -21.80 -0.14
Russell 2000* 902.09 5.18 0.58
Global Dow 2112.35 -0.41 -0.02
Japan: Nikkei Average* 11191.34 52.68 0.47
Stoxx Europe 600 287.91 0.69 0.24
UK: FTSE 100 6309.20 32.32 0.51
 
3:28 a.m. EST 02/01/13Treasurys
Price Chg Yield %
2-Year Note 1/32 0.262
10-Year Note -2/32 1.997
* at close
3:19 a.m. EST 02/01/13Futures
Last Change Settle
Crude Oil 97.50 0.01 97.49
Gold 1665.3 3.3 1662.0
E-mini Dow 13851 54 13797
E-mini S&P 500 1497.75 4.50 1493.25
3:29 a.m. EST 02/01/13Currencies
Last (mid) Prior Day †
Japanese Yen (USD/JPY) 92.07 91.72
Euro (EUR/USD) 1.3617 1.3578

-U.S., Russia and U.N. to meet with Syrian opposition on Saturday

-Spanish Manufacturing PMI (Jan) M/M 46.1 vs. (Prev. 44.6), 21st straight month of decline. Noise blip from Spain. Still in contraction. Blip up in market.

-CHE Toxicant and Disease Database lists diseases linked to aluminum (in 40% of vaccines) http://bit.ly/hIaIOu   and all Chemtrails

-Russian Zenit-3SL rocket carrying a US communications satellite crashes into the Pacific Ocean after launch

-Santander , -.3.5 %

-European Manufacturing PMIs already out today: Ireland Jan: 50.3 (Dec: 51.4), Netherlands 50.2 (Dec: 49.6), Poland Jan: 48.6 (Dec: 48.5)

-300 Europe Opens

I don’t know why it is so hard to get a good quote out of Germany at the opening. But it is always. They must have to check with Regling to see how much money DB is going to get to pump the markets.

Equity

German DAX 30 index up 0.3% to 7,799.77

Stoxx Europe 600 index flat at 287.02

FTSE 100 index up 0.3% to 6,297.49

French CAC 40 index flat at 3,735.74

Spain IBEX 35 index down 2% to 8,191

Bonds

U.S. 10y 2.01+0.02, -1.02%
German 10y 1.69+0.00, -0.23%
Italy 10y 4.23-0.04, -0.93%
Spain 10y 5.20+0.00, -0.06%

 

Gold 1665.85 +3.85 +0.23%
Silver 31.413 +0.062 +0.20%
Copper 3.740 +0.008 +0.21%
Crude Oil 97.52 +0.03 +0.03%
Natural Gas 3.318 -0.021 -0.63%
US Cotton No.2 82.44 -0.52 -0.62%
US Coffee C 147.12 -1.10 -0.74%
EUR/USD 1.3626 +0.0048 +0.35%
GBP/USD 1.5868 +0.0010 +0.07%
USD/JPY 92.11 +0.40 +0.44%
USD/CHF 0.9090 -0.0011 -0.13%
AUD/USD 1.0403 -0.0023 -0.22%
USD/CAD 0.9979 +0.0005 +0.05%
EUR/GBP 0.8588 +0.0026

-”The market is getting ahead of itself. Look at the fourth quarter GDP number. I think every analyst out there thinks that earnings will be up this year; I think earnings will be down this year. I think profit margin is peaking. I think revenue growth is going to be relatively slow and I think the market is been driven right now by the ample liquidity that the Federal Reserve is providing. So, the market continues to go up because this liquidity finds its way in the financial assets, but eventually the corporate fundamentals will take over and a major sell off will take place.”

Byron Wien, vice chairman of Blackstone , CNBC interview

-Shanghai Rallies hard into the close.

China: Shanghai Composite* 2419.02 33.60 1.41

-Futures

Futures Index Value % Change Open High Low Time
Americas Futures
DJIA INDEX FUTURE Mar13 13,846.00 +0.36% 13,830.00 13,850.00 13,830.00 02:30:09
S&P 500 FUTURE Mar13 1,497.60 +0.29% 1,495.70 1,498.70 1,495.70 02:30:01
NASDAQ 100 FUTURE Mar13 2,733.50 +0.31% 2,733.00 2,736.50 2,731.75 02:24:43
Europe, Middle East & Africa Futures
EURO STOXX 50 Mar13 2,705.00 -0.22% 2,705.00 2,708.00 2,703.00 02:25:44
FTSE 100 IDX FUT Mar13 6,254.00 -0.10% 6,247.50 6,261.50 6,243.50 02:25:26
DAX INDEX FUTURE Mar13 7,796.50 +0.01% 7,796.50 7,801.50 7,794.50 02:25:39

-EU exit would leave the City of London defenceless

European regulators have the means to shut down key parts of London’s financial center at a stroke if Britain left the EU. DT, AEP, in newslink

-Authorities in the UK are looking into an allegation that Barclays (LSE: BARC.L - news) loaned Qatar money to invest in the bank as part of its cash call during the height of the financial crisis in 2008, allowing the bank to avoid a bailout, The Financial Times reported on its website on Thursday.The newspaper reported that two unnamed sources had told it about the investigation into the alleged loan.The Financial Services Authority and the Serious Fraud Office have been looking into Barclays’ emergency fundraising.Barclays confirmed in August that Britain’s fraud prosecutors had launched a criminal probe into payments between the bank and Qatar Holding, adding to an ongoing regulatory investigation into dealings between the two parties.A Barclays spokesperson told Reuters, “Both the FSA and SFO investigations are on-going, and as such we are unable to comment further.” The FSA would not comment when contacted by Reuters. Reuters

A call is when the bank says you don’t have enough money  and if you don’t put up the money up you forfeit the Asset, which you used some of the banks money to buy and the bank takes its money plus interest and returns what is left to you. So Qatar was probably over leveraged but with all that oil rather than call them Barclays made them a loan, this doubles the risk on the firms book and is real no, no. Qatar should have liquidated their holding to meet the call or Barclays should have forced them to, for their own good. Never meet a call.

-Following her party’s failure in a major state election, Chancellor Angela Merkel is distancing herself from her junior coalition partner, the business-friendly Free Democrats. It is a risky move, and could indicate that she is aiming at a partnership with the opposition Social Democrats. Der Spiegel

-Dan Fuss, whose Loomis Sayles Bond Fund beat 98 percent of its peers in the last three years, said the fixed-income market is more “overbought” than at any time in his 55-year career as he prepares to open a fund to British individual investors.“This is the most overbought market I have ever seen in my life in the business,” Fuss, 79, who oversees $66 billion in fixed-income assets as vice chairman of Boston-based Loomis Sayles & Co., said in an interview in London. “What I tell my clients is, ‘It’s not the end of the world, but for heaven’s sakes don’t go out and borrow money to buy bonds right now.’” BBN

-US banks squeezed as mortgage profits hit . Pressure on earnings for large lenders after bumper two years. FT

Nothing new really, the margin decrease on the loans has been well known since the start of earnings season.

-130 Asia

Japan’s Nikkei finished up . 47 % at 11191 as the Y/D surged to 92. The Y/Euro surged to over 125.  The Nikkei finish was the highest level in 2 years and 8 months. Japan’s Domestic Auto Sales were down  12.9% y/y in Jan., and the jobless rate rose .1 % to 4.2 % in December. In other economic news, household spending on a year-over-year basis dropped 0.7%, significantly lower than the prior reading of a 0.2% gain, and worse than the consensus estimate of a 0.3% decline.Japan seemed to ignore the USA market and weaker than expected China Mfg. PMI and the exporters drove the markets up on the Y/D advance. There was little political rhetoric to drive markets today.Japan Econ Min Amari said he  currently does not see the need to alter BOJ law to pursuse current polices and  PM Abe may be narrowing the list for BOJ Gov candidates , although no names were mentioned.  Japan’s METI sees sequential growth in industrial production extending into January and February

China’s official mfg.  PMI came in at 50.40, under  the 50.90 estimate and barely in the expansion mode. The Shanghai composite rallied later in the session and is up .93 pc to 2407.5 , while the Hang Sang was down -.13 pc. The official China PMI contrasted sharply with the HSBC preliminary PMI which came in at  51.9 on Jan 24 and the official China HSBC final MFG PMI of 52.3 which emerged later in the session. Analysts in China attributed it to accounting issues associated with the Chinese New Year. The market bought the HSBC better than expected number.

HSBC’s South Korea mfg PMI printed at 49.90, less than the prior reading of 50.08, indicating a contraction or a flat mfg sector in January. South Korea’s trade balance beat expectations at $ 0.87 billion,  economists had predicted $ 0.84 billion.The South Korean consumer price index was largely in-line. On a m/m basis, it rose 0.6%, On a y/Y basis it was up only 1.5%; the consensus estimate was for a gain of 1.6%. The Kospi finished down -.21 pc at 1957.8.

The rest of the Asian PMI’s indicated Asia mfg expanded moderately in Jan, except Indonesia which like S. Korea was just below 50 at 49.7 from 50.7 prior.

Asia Session Economic Release Summary

(CN) CHINA JAN MANUFACTURING PMI: 50.4 V 51.0E 
-(CN) CHINA JAN HSBC FINAL MANUFACTURING PMI: 52.3 V 52.0E (two-year high)
-(AU) AUSTRALIA Q4 PRODUCER PRICE INDEX (PPI) Q/Q: 0.2% V 0.3%E (3-quarter low); Y/Y: 1.0% V 1.2%E (lowest since Q2 of 2010)
(AU) AUSTRALIA JAN RPDATA-RISMARK HOUSE PX Y/Y: +1.2% V -0.3%
(AU) AUSTRALIA JAN AIG PERFORMANCE OF MANUFACTURING INDEX (PMI): 40.2 V 44.3 PRIOR (11th month of contraction and lowest level since June 2009)
(NZ) NEW ZEALAND DEC NET MIGRATION: 0 V 550 PRIOR
(IN) INDIA JAN MARKIT MANUFACTURING PMI: 53.2 V 54.7 PRIOR
-(JP) JAPAN JAN VEHICLE SALES Y/Y: -12.9% V -3.4% PRIOR
(JP) JAPAN DEC OVERALL HOUSEHOLD SPENDING Y/Y: -0.7% V -0.2%E (3-month low)
(JP) JAPAN DEC JOBLESS RATE: 4.2% V 4.1%E (first rise since Apr 2012); JOB-TO-APPLICANT RATIO: 0.82 V 0.80E
(KR) SOUTH KOREA JAN HSBC MANUFACTURING PMI: 49.9 V 50.1 PRIOR
(KR) SOUTH KOREA JAN EXTERNAL TRADE BALANCE: $874M V $880ME
(KR) SOUTH KOREA JAN CONSUMER PRICE INDEX (CPI) M/M: 0.6% V 0.6%E; Y/Y: 1.5% V 1.5%E (below 2% for 3rd month); CORE CONSUMER PRICE INDEX: 1.2% V 1.2% PRIOR
(ID) INDONESIA JAN INFLATION M/M: 1.0% V 0.9%E; Y/Y: 4.6% V 4.5%E; CORE INFLATION: 4.3% V 4.4%E
(ID) INDONESIA HSBC JAN MANUFACTURING PMI: 49.7 V 50.7 PRIOR
(TH) THAILAND JAN CPI M/M: 0.2% V 0.2%E; Y/Y: 3.4% V 3.5%E; CORE CPI Y/Y: 1.6% V 1.7%E
(TW) TAIWAN JAN HSBC MANUFACTURING PMI: 51.5 V 50.6 PRIOR
-(VN) VIETNAM JAN HSBC MANUFACTURING PMI: 50.1 V 49.3 PRIOR

Equity Markets

Country: Index Last Change % Chg
Asia Dow 3027.00 -5.44 -0.18
DJ Asia-Pacific TSM 1353.46 -3.38 -0.25
Australia: All Ordinaries* 4941.90 40.90 0.83
Australia: S&P/ASX* 4921.10 42.30 0.87
China: DJ CBN China 600 22465.18 308.29 1.39
China: DJ Shanghai 307.45 4.34 1.43
China: Shanghai Composite 2407.65 22.23 0.93
China: Shenzhen Composite 941.90 5.70 0.61
China: Shanghai 50 2039.70 46.45 2.33
Hong Kong: Hang Seng 23699.57 -29.96 -0.13
India: BSE Sensex 19899.40 4.42 0.02
India: S&P CNX Nifty 6031.85 -2.90 -0.05
Indonesia: JSX Index 4517.82 64.11 1.44
Indonesia: JSX BISNIS 27 391.81 8.19 2.13
Indonesia: JSX Islamic 610.99 6.38 1.06
Indonesia: JSX LQ-45 774.69 13.43 1.76
Indonesia: PEFINDO-25 485.55 4.34 0.90
Indonesia: SRI-KEHATI 245.81 4.87 2.02
Japan: DJ Japan TSM* 587.36 1.58 0.27
Japan: Nikkei Average* 11191.34 52.68 0.47
Japan: TOPIX Index* 942.65 2.40 0.26
Malaysia: DJ Malaysia TSM* 3029.56 -0.03 0.00
Malaysia: FTSE Bursa Malaysia KLCI* 1627.55 -0.18 -0.01
New Zealand: NZX 50* 4245.93 -6.71 -0.16
S. Korea: KOSPI* 1957.79 -4.15 -0.21
S. Korea: KOSPI 50* 1689.65 -1.84 -0.11
S. Korea: KOSPI 100* 1955.21 -3.15 -0.16
S. Korea: KOSPI 200 Composite* 257.64 -0.43 -0.17
Singapore: FTSE Straits Times 3285.38 2.72 0.08
Taiwan: TAIEX* 7855.97 5.95 0.08
Thailand: SET 1490.93 16.73 1.13
EUR/USD 1.3620 +0.0042 +0.31%
GBP/USD 1.5872 +0.0014 +0.09%
USD/JPY 92.18 +0.47 +0.51%
USD/CHF 0.9096 -0.0006 -0.07%
AUD/USD 1.0397 -0.0029 -0.28%
USD/CAD 0.9977 +0.0003 +0.03%
EUR/GBP 0.8581 +0.0019 +0.22%
Gold 1663.95 +1.95 +0.12%
Silver 31.377 +0.026 +0.08%
Copper 3.736 +0.001 +0.03%
Crude Oil 97.53 +0.04 +0.05%
Natural Gas 3.318 -0.015 -0.44%
US Cotton No.2 82.78 -0.24 -0.30%
US Coffee C 147.12 -1.10 -0.74%

Bonds

Japan 10yr 0.77+0.01, – 1.01%

U.S. 10yr 2.01+0.02, -1.02%

CDS

AUT CDS 5-YR 44.38 0.27 0.61%
BEL CDS 5-YR 75.955 -0.11 -0.14%
CHN CDS 5-YR 173.57 19.34 12.54%
DEN CDS 5Y 31.25 1.445 4.85%
DUBAI CDS 5Y 220.00 -4.775 -2.12%
EGY CDS 5Y 525.66 -6.10 -1.15%
FIN CDS 5YR 29.50 UNCH 0%
FRANCE CDS 5YR 87.91 -0.83 -0.94%
GER CDS 5YR 43.38 1.24 2.94%
GRE CDS 5YR 4476.7002 -2.80 -0.06%
HUN CDS 5YR 299.055 8.245 2.84%
INA CDS 5-YR 146.845 0.675 0.46%
IRE CDS 5Y 196.53 -5.11 -2.53%
ITA CDS 5YR 252.29 -0.23 -0.09%
JPN CDS 5YR 76.00 UNCH 0%
KOR CDS 5YR 72.00 -0.21 -0.29%
NED CDS 5YR 51.00 0.415 0.82%
PAN CDS 5-YR 96.15 -0.69 -0.71%
POR CDS 5-YR 395.27 -4.195 -1.05%
SVK CDS 5YR 95.565 UNCH 0%
ESP CDS 5YR 269.11 -0.705 -0.26%
SWE CDS 5-YR 18.94 1.31 7.43%
SUI CDS 5Y 40.00 UNCH 0%
UK CDS 5Y 51.00 UNCH 0%
US CDS 5Y 42.72 0.655 1.56%

-When a Goyim Steals, the hammer of the Law comes down..

A judge on Thursday sentenced the founder of Peregrine Financial Group to 50 years in prison for looting hundreds of millions of dollars from the brokerage, saying his customers would probably never recover the money they lost.Russell Wasendorf Sr., who had tried to kill himself just before the fraud was uncovered last year, received the maximum sentence allowed by law and was ordered to pay $215.5 million in restitution for his nearly 20-year scheme.

If he were a Jew or Anglosaxon and sent the money to London, he would be out in a few years with a fake heart attack  like Conrad Black or the Disappearing Ken Lay of Enron. Bernie won’t be in the clip joint much longer, Russ will be there until he is DOA. They should put him to work to pay for his own keep.

-Cartel Propagandist, CPM Bashes Silver for London and CME naked shorts

Silver futures have rebounded since sinking in early January to the lowest levels in over four months, but prospects for a longer-term rally are limited given that talk of shortages is largely “irrational,” industry consultant CPM Group said in a new report.”There indeed has been some seasonal strength in investment and fabrication demand pushing prices higher over the past two weeks, and there are some other factors that could push prices higher later in February,” CPM Group wrote.Those factors “are relatively minor, however, and do not necessarily represent convincing justifications for expectations that prices will rise significantly higher on a longer term basis,” the report said. “Silver marketing types are talking about silver shortages, but there is no real evidence of this.”COMEX silver may climb toward $36 per troy ounce during the first quarter before dropping in the second quarter, CPM Group projected. In trading January 28, March silver futures fell 42.6 cents to $30.78. On January 4, prices fell to $29.24, the lowest for a nearby contract since August.

-Congress voted to send legislation suspending the U.S. debt limit for three months to PresidentBarack Obama, temporarily removing the risk of a government default from fiscal negotiations.The measure, crafted by House Republicans, will lift the government’s $16.4 trillion borrowing limit until May 19. The Senate cleared it 64-34 yesterday, eight days after the Republican-led House passed the legislation. BBN

-Illuminati Puppet/Actor Jackie Chan Makes Grab for Chinese Political Power

Hong Kong movie star Jackie Chan has become a member of the National Committee of theChinese People’s Political Consultative Conference, Phoenix New Media said on its website yesterday, citing an unidentified person.The 58-year-old action star will attend the Chinese People’s Political Consultative Conference, which serves as the top advisory body to the Chinese government, according to the Phoenix article. A call after business hours to the office of Peco Ng, Jackie Chan’s spokeswoman, wasn’t answered. Reuters

- The FED’s balance sheet shrank in the latest week with reduced holdings of mortgage-backed securities, FED data released late on Thursday showed.The FED’s asset holdings in the week ended Jan. 30 decreased slightly, to $3.010 trillion, from $3.013 trillion a week earlier. The Fed’s holdings of U.S. Treasury securities rose to $1.710 trillion on Wednesday from $1.697 trillion a week earlier. The central bank’s holdings of mortgage-backed securities fell to $965.78 billion from $983.17 billion a week ago. Thursday’s report showed total borrowing from the Fed’s discount lending window was $579 million on Wednesday, up from $567 million a week earlier.

-HSBC Gets China’s PMI wrong or fakes it for own book

China’s giant manufacturing sector extended its mild recovery in January with weak foreign demand still crimping growth, a pair of surveys showed, underscoring that the country’s rebound from its worst downturn in 13 years remains modest.
Two separate versions of the purchasing managers’ index (PMI) released on Friday showed factory output in the world’s second-largest economy rose in January, but at starkly different speeds suggesting a patchy revival in activity.
An official PMI compiled by the government showed factory sector growth was slower-than-expected in January, with the index rising to 50.4, below market forecasts for a nine-month high outcome of 50.9 and a touch below December’s 50.6.
A private PMI survey released by HSBC, on the other hand, showed growth among manufacturers quickening to a two-year high of 52.3 in January, better than the flash, or preliminary, reading of 51.9, as domestic demand aided business. Reuters

-After Hours, USA

MCK: Reports Q3 $1.41 adj v $1.63e, R$31.2B v $30.9Be; -1.6% afterhours
VPRT: Reports Q2 $1.02 adj v $0.75e, R$348.3 v $332Me; -1.7% afterhours
WYNN: Reports Q4 $1.17 v $1.26e, R$1.29B v $1.28Be -0.7% afterhours

-Midget, Zionist Bully, Anglomason John McCain

McCain is insane. He should be removed from office for the sake of the nation.

-Lebanon President Michel Sleiman  said:  “Israel is using the ongoing situation in Syria to implement its aggressive policies, overlooking international treaties and humanitarian rights and norms,”

cartoon

 

-Geopolitical News

News www.antiwar.com
Updated February 1, 2013 – 12:16 AM EST
Syria Threatens Retaliation Over Israeli Attack
Israel May Attack Syria More in the Future
US Responds to Israeli Attack by Warning Syria
UN: Israel Must Withdraw All Settlers or Face ICC
Israeli Officials Blast UN Report on Human Rights
Neocons Press Hagel in Confirmation Hearings
White House Slams Iran Upgrade as ‘Escalation’
97 Killed in Militant Faction Fights in Pakistan Tribal Agency
Top US General in Afghanistan Sees ‘Uncertain Future’
Gitmo 9/11 Trial Judge Orders Hidden Censors Unplugged
US Allies Aid Drone Strikes, Hope to Ditch Responsibility
Officials: AQIM Planning More Attacks on Western Targets
Most Americans Think the Govt Threatens Their Freedoms
Viewpoints
Chuck Hagel and Murder in Vietnam  by Nick Turse & Tom Engelhardt
Hagel Offers Himself as Secretary of Israel’s Defense  by Philip Weiss
The Real Invasion of Africa Is Not News  by John Pilger
The Ominous US Presence in Northwest Africa  by Sheldon Richman
When Truth Tried to Stop War by Ray McGovern
Adding Flame to the Syrian Fire by Paul Pillar

-Reflection of the Day

Inspirational illustration of Psalm 84:11

-Welcome Back.

Economic Calendar

We had the China PMI, then PMI for some Major European Nations, the European PMI, and Italian month Employment figures to scoot over to the USA for the monthly Jobs report then ISM number for the USA. Then we are free, at last.

Time Cur. Imp. Event Actual Forecast Previous
00:00   INR     HSBC Markit Manufacturing PMI 53.20 54.70
00:30   AUD     Commodity Prices (YoY) -8.0%
03:00   NOK     Norwegian PMI Manufacturing 50.3 50.0
03:13   EUR     Spanish Manufacturing PMI 45.5 44.6
03:30   CHF     SVME PMI 50.5 49.5
03:45   EUR     Italian Manufacturing PMI 47.60 46.70
03:50   EUR     French Manufacturing PMI 42.9 42.9
03:55   EUR     German Manufacturing PMI 48.8 48.8
04:00   EUR     Manufacturing PMI 47.5 47.5
04:00   EUR     Italian Monthly Unemployment Rate 11.2% 11.1%
04:00   ZAR     South African Manufacturing PMI 47.4
04:30   GBP     Manufacturing PMI 51.0 51.4
05:00   EUR     CPI (YoY) 2.2% 2.2%
05:00   EUR     Unemployment Rate 11.9% 11.8%
Tentative   EUR     Spanish Government Budget Balance 3.50B -2.50B
06:00   BRL     Brazilian Industrial Production (YoY) -4.7% -1.0%
06:30   INR     Indian FX Reserves, USD 295.67B
08:30   USD     Average Hourly Earnings (MoM) 0.2% 0.3%
08:30   USD     Average Weekly Hours 34.5 34.5
08:30   USD     Nonfarm Payrolls 160K 155K
08:30   USD     Private Nonfarm Payrolls 165K 168K
08:30   USD     Unemployment Rate 7.8% 7.8%
09:00   USD     Manufacturing PMI 56.10 56.10
09:55   USD     Michigan Consumer Sentiment 71.5 71.3
09:55   USD     Michigan Inflation Expectations 3.4%
10:00   USD     Construction Spending (MoM) 0.6% -0.3%
10:00   USD     ISM Manufacturing Index 50.6 50.7
10:00   USD     ISM Manufacturing Prices 56.0 55.5
10:30   USD     ECRI Weekly Annualized (WoW) 7.20%
12:00   BRL     Brazilian Trade Balance -3.40B 2.25B
16:00   USD     Total Vehicle Sales 15.20M 15.32M

===============================================

NEWSLINKS

-Time for calm as Treasuries age nears end

FT puts out call to kill UST age.

http://on.ft.com/U9DvZP

-China Home Prices Surge most in 2 years

http://www.bloomberg.com/news/2013-02-01/china-home-prices-have-biggest-gain-in-two-years-soufun-says.html

-MFG Grew more than forecast in Jan in the USA

http://www.bloomberg.com/news/2013-02-01/manufacturing-in-u-s-grew-more-than-forecast-in-january.html

-Euro Unemployment holds at 11.7 in Dec

http://www.bloomberg.com/news/2013-02-01/euro-area-unemployment-rate-unexpectedly-holds-steady-at-11-7-.html

-China had the biggest deficit in financial and capital account in 2012 since records began in 1982 | http://bloom.bg/WFLEk9

-U.S. Stocks Rally as Dow Climbs Above 14,000 on Jobs Data

http://www.bloomberg.com/news/2013-02-01/u-s-stock-index-futures-advance-before-employment-report.html

-Ford/Toyota lead car /(contruction truck and commuter car) charge.

http://www.bloomberg.com/news/2013-02-01/chrysler-sales-rise-16-to-lengthen-monthly-streak.html

-Syria at top of agenda for Vice President Biden’s Europe tour; set to meet with opposition leaders

http://bloom.bg/WYyG27

-The Secret Agreement to cut the Deficit

http://www.bloomberg.com/news/2013-01-30/the-secret-agreement-to-cut-the-deficit.html

-Germany will never let ECB shut DB

http://www.bloomberg.com/news/2013-01-31/germany-will-never-let-ecb-shut-deutsche-bank.html

-Toyota, Ford lead carmakers beating U.S. sales estimates

|http://bloom.bg/U9klDE

-‘Great rotation’ will be great for currency-investing: Deutsche Bank

http://blogs.marketwatch.com/thetell/2013/02/01/great-rotation-will-be-great-for-currency-investing-deutsche-bank/

-USA Adds 157k Jobs

http://www.marketwatch.com/story/us-adds-157000-jobs-as-past-data-revised-higher-2013-02-01?link=MW_latest_news

-Swap Swindle, the Dark Heart of London

Swap mis-selling and the dark heart of the City

Turkish patisserie owner Mehmet Bay, pictureed inside his shop Tugra on Stoke Newington Road in London, was mis-sold a swap that left him with over 300,000 in cost he was never warned about. Photo: warren allott

http://www.telegraph.co.uk/finance/rate-swap-scandal/9840866/Swap-mis-selling-and-the-dark-heart-of-the-City.html

-EU Exit would leave London defenseless- AEP, DT

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/9841005/Catastrophic-EU-exit-would-leave-City-defenceless-against-regulatory-attack.html

-Bonds Most ‘Overbought’ in 55 Years, Loomis Sayles’s Fuss Says

http://www.bloomberg.com/news/2013-01-30/bonds-most-overbought-in-55-years-loomis-sayles-s-fuss-says.html

-Congress Completes Three-Month Suspension of Debt Limit

http://www.bloomberg.com/news/2013-01-31/senate-passes-three-month-suspension-of-u-s-debt-limit.html

-Explosion at PEMEX Building in Mexico Kills at least 25

http://www.reuters.com/article/2013/02/01/us-mexico-pemex-idUSBRE90U1FF20130201

-U.S. backs off goal of one million electric cars by 2015

http://www.reuters.com/article/2013/01/31/us-autos-greencars-chu-idUSBRE90U1B020130131

-China January PMIs signal mild recovery in place

http://in.reuters.com/article/2013/02/01/us-china-economy-pmi-idINBRE91002R20130201

-Republicans Assail Hegel at Nomination

http://www.reuters.com/article/2013/02/01/us-obama-nominations-hagel-idUSBRE90U09P20130201

-Syria Warns of Surprise for Violent Israel

http://www.dailystar.com.lb/News/Middle-East/2013/Feb-01/204572-syria-warns-of-surprise-response-to-israeli-strike.ashx#axzz2Jcd52gAC

-Iran/Hezbollah slam Israels attack and murder in Syria

http://www.dailystar.com.lb/News/Politics/2013/Jan-31/204406-hezbollah-slams-israeli-attack-on-syria.ashx

-Israel strike draws Lebanon’s Ire

http://www.dailystar.com.lb/News/Politics/2013/Jan-31/204487-israeli-attack-on-syria-draws-lebanese-ire.ashx#axzz2Jcd52gAC

-Russia, Israel Strike unacceptable

http://www.dailystar.com.lb/News/Middle-East/2013/Jan-31/204407-russia-concerned-by-reported-israeli-strikes.ashx#axzz2Jcd52gAC

-Meet the Contractors turning the USA into a Police /Military/Spy State

The English Crown probably own most , if not all of them.

http://www.alternet.org/meet-contractors-turning-americas-police-paramilitary-force?paging=off

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One Response to Zephyr Global Report, 2/1/2013

  1. Jeff W says:

    The difference between our last two presidebts?
    Obama would have caught one of those shoes!

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