Zephyr Global Report 3/7/2013

Headliners

-SNB’s Cap-Defense Costs Rise 10-Fold to $199 Billion

-Major Buy down in Spains bond by ESM/ECB /partners. Poor French Bond Auction results

-BAC caught redhanded rigging options market

-German Factory order fall sharply in Jan , France’s unemployment rises in Q4

-Bank of England holds key interest rate at 0.50%, QE unchanged

-U.S. trade deficit widens 16.5% in January

-Greece PM Samaras meeting with troika this week has been moved to next week, with many issues remaining unresolved between the parties

-U.K. Cameron: We Will Stick to Economic Plan.U.K.’s Cable raises question of increasing government borrowing

-North Korea warns USA of First Nuclear Strike(great Job Dennis Rodman)

-ECB hold Rates

-Communism Chinese Style- Ninety members of the National People’s Congress are on a list of China’s 1,000 richest people( Bloomberg Reports, here come the ‘hacks)

-Chavez in glass (topped) coffin like His Murderous Hero Lenin. Drinking banned for 7 days.

-Dell gets interest from H-P, Lenovo

-Australia Trade Deficit Widens Sharply

-BOE/ECB rate decisions today

-ROK’s BOK adds 20 metrics tonnes of gold in February

-China/USA to move at UN to impose Sanctions on the Crazy Korea

-BOJ Holds for Shirakawa’s last meeting

-Rand Paul Filibusters Crooks in Senate/CIA Thug Brennan over Drone War on the American Peopple

Market Commentary

-1645  Closing Prices and Summary

MARKETS – AT A GLANCE
4:19 p.m. EST 03/07/13Major Stock Indexes
Last Change % Chg
DJIA* 14329.49 33.25 0.23
Nasdaq* 3232.09 9.72 0.30
S&P 500* 1544.26 2.80 0.18
DJ Total Stock Market* 16117.11 35.06 0.22
Russell 2000 934.55 4.59 0.49
Global Dow 2116.79 5.56 0.26
Australia: S&P/ASX* 5109.20 -7.60 -0.15
India: BSE Sensex* 19413.54 160.93 0.84
Japan: Nikkei 225* 11968.08 35.81 0.30
Taiwan: TAIEX* 7960.51 10.21 0.13
France: CAC 40* 3793.78 20.02 0.53
Germany: DAX* 7939.77 20.44 0.26
Italy: FTSE MIB* 15947.17 47.47 0.30
Spain: IBEX 35* 8389.10 30.20 0.36
Stoxx Europe 600* 293.19 -0.19 -0.06
UK: FTSE 100* 6439.16 11.52 0.18
Brazil: Bovespa 58846.81 906.67 1.56
Canada: S&P/TSX 12826.52 -5.44 -0.04
 
4:18 p.m. EST 03/07/13Treasurys
Price Chg Yield %
2-Year Note -0/32 0.265
10-Year Note -17/32 1.998
* at close
4:09 p.m. EST 03/07/13Futures
Last Change Settle
Crude Oil 91.54 1.11 90.43
Gold 1577.0 2.1 1575.1
E-mini Dow 14314 49 14265
E-mini S&P 500 1543.00 4.25 1539.00
4:19 p.m. EST 03/07/13Currencies
Last (mid) Prior Day †
Japanese Yen (USD/JPY) 94.84 94.07
Euro (EUR/USD) 1.3106 1.2966
† Late New York trading.

 

I made my bet at the close for a big down day tomorrow on the Feb USA jobs report. If the BLS does not just outright lie, we should come in well below 200k jobs, although over the last week or so the pundits have taken that down to 160k jobs to be ‘safe’ about ‘beating’ the expectations. My own personal ‘bet’ is 135k-150k. Should I get the number I expect, even if Lew the Jew trys to jam me up, I will continue heavy shorting. No doubt he is privy to the number and is loading his gold selling and DIA /SPY futures ESF programmed trades in tonight.

What can the ZGR say about Gold, but at least we had some positive news of the BOK buying 20 tons on the dip in Feb. Gold is a key tool to make sure money flows into the Euro, Pound, dollar and respective sovereigns. That said the gold loaned may never return to Europe or the USA. Recall China said it was ready for the currency warS and to be ready you need gold and a lot of it. Gold was whacked for what it gained in Asia as Draghi was a bat along with key USA econometric data.

Here are the economic summaries captured during the USA trading session for the Americas

(US) Feb Challenger Job Cuts: 55.4K v 40.4K prior;Y/Y: +7.0% v -24.4% prior
(US) Mar RBC Consumer Outlook Index: 47.1 v 49.5 prior

(US) Jan Trade Balance: -$44.4B v -$42.6Be

(US) Initial Jobless Claims: 340K v 355Ke; Continuing Claims: 3.094M v 3.120Me

(US) Q4 Final Nonfarm Productivity: -1.9% v -1.6%e; Unit Labor Costs: 4.6% v 4.3%e

(CL) Chile Feb Trade Balance: $68M v $500.0Me; Total Exports: $5.9B v $.6B prior; Total Imports: $5.9B $6.7B prior
(CL) Chile Feb Copper Exports: $3.2B v $3.5b prior

(BR) Brazil Jan Industrial Production M/M: 2.5% v 1.6%e; Y/Y: 5.7% v 4.6%e

(CA) Canada Jan Building Permits M/M: 1.7% v +5.3%e
(CA) Canada Jan Int’l Merchandise Trade: -C$0.2B v -C$0.6Be

Tiny Ireland weighed in as the USA trading day was started.

(IE) Ireland Jan Industrial Production M/M: -1.1% v 4.9% prior; Y/Y: -3.3% v -0.5% prior

There were no surprises out of the BOJ/BOE/ECB to start the USA trading day off.

USA productivity figures are less than worthless they are misleading. I have never met a hedge fund manager who thought they were tradeable or news. The trade balance was a bit of surprise but given the sudden and sharp rise in gasoline and oil prices in Jan, maybe it should not be, but clearly the USA still has an unsustainable trade deficit. Jobs are simply not anywhere near lift off speed for the USA economy to have a self sustaining recovery as higher taxes and obama-care kick in. The news was the continuing resolution being passed to avoid a shutdown confrontation until the End of September by Congress to bolster  Merkels election. USA January consumer credit was  up at 7% annual rate.

Markets pretty much finished where they were after the first fifteen minutes. Still the DOW made another record high today.

Rand Pauls epic 13 hour filibuster of the corrupt CIA thug  Brennan caused Holder to back off on his claim of the legal right to Drone the American people, as Holder finally responded in writing to Paul reversing claims he made yesterday. The blog-sphere- and twitter fireback at the whores in Congress caused Holder to back up. But recall the words of Henry Kissinger, Holder’s fellow Jew-”The illegal we do immediately, the unconstitutional takes us longer’. Holder needs to behind bars, not lording it over the American people. His mother is Jewish and some blacks are starting to disown him, and his despotism, calling him ‘white Trash’, although I would prefer he be called Jewish trash. When  your fan base turns on you, as Justin Beiber, another feckless illuminati Jew like Holder, you’re in big trouble. Holder better consult his voodoo talmud gods for better totalitarian joo-joo next time. He is as smooth as pig butcher. Despite Rand Paul’s stand, Brennan was still confirmed by the Senate shortly ahead of the market close.

February sales comps were mixed, although at this point the number of companies disclosing monthly comps is rapidly declining . Costco’s comps were much better than expected and The Limited met expectations.

Dell is flat  after the big run-up yesterday afternoon. The company responded to Carl Icahn’s demand that Dell needs to pursue a leveraged recapitalization, confirming that it is still assessing alternative transactions to the Michael Dell/Silver Lake $13.65/shr takeout. HP and others are driving up the price to the point to weaken Dell in the future when it seeks to return to the markets.

Navistar’s shares were up a 25% the morning trade, their biggest one-day gain in years, after the firm named a new CEO and as the firm’s Q4 report showed that the company has managed to staunch the bleeding and is losing less money. It is not making money, merely losing less.

CL gained in the premarket after boosting the dividend and announcing a 2-1 reverse stock split, however CL gave up its gains during the day.

The FED released the first part of its so called stress test after the market closed today. These stress tests are a complete joke and expose the USA financial system to enormous risk and Goldman Sachs took advantage of them to barely pass the requirements as it went for the maximum leverage allowed. Of the major banks only Ally , a ward of the government, failed. The hypothetical test, is designed to assess what reserves are necessary to withstand another crisis like the credit crunch of 2008, showed that Goldman had only 5.8% of capital set aside under a measure called Tier 1 common ratio, above the generally accepted standard of 5%. In that scenario, where the U.S. is experiencing 12% unemployment, the mega bank would have net losses of $21 billion. The bank would have trading and counterparty losses of $25 billion. Goldman also would have 3.9% under a measure called tier 1 leverage ratio, narrowly above a 3% general standard. The stress test does not considering cascading defaults.

 

-The smoke venting system failed aboard a Boeing Co 787 that experienced a battery fire in January because the system had no power to operate due to the fire, the National Transportation Safety Board said on Thursday.The NTSB released an interim report into the fire on a parked plane in Boston, but did not identify a root cause of that fire. Reuters

-Market Summary will probably be delayed today until a couple of hours after the close.

-Market Monitor

U.S. STOCKS OVERVIEW
2:32 p.m. EST 03/07/13Major Indexes
Last Change % Chg
DJIA 14328.78 32.54 0.23
Nasdaq 3226.75 4.38 0.14
S&P 500 1543.58 2.12 0.14
DJ Total Stock Market 16106.01 23.96 0.15
Russell 2000 930.92 0.96 0.10
 
2:32 p.m. EST 03/07/13Markets Diary
Issues NYSE Nasdaq NYSE MKT
Advances 1,669 1,289 203
Declines 1,373 1,145 200
Unchanged 102 116 18
Issues at
New Highs 221 165 5
New Lows 6 11 5
Share Volume
Total 2,460,467,056 1,135,572,708 69,647,046
Advancing 1,559,423,720 720,155,435 30,353,038
Declining 874,451,011 405,346,920 37,602,620
 
DJ Industrial Average 

-Former Italian Prime Minister Silvio Berlusconi was convicted in a wiretapping case related to the 2006 battle for control of Banca Nazionale del Lavoro SpA, the first of three corruption rulings he faces this month.The verdict, televised from Milan today, carries a one-year prison sentence. Piero Longo, an Italian senator and one of Berlusconi’s lawyers, had no immediate comment when contacted by phone.It’s really impossible to tolerate a judicial persecution that’s lasted 20 years,” Berlusconi said in an e-mailed statement. He called for a “complete reform of the judicial system” and said he aims to obtain justice on appeal. Berlusconi can appeal today’s verdict and is unlikely to serve jail time because Italian law doesn’t require prison sentences to be carried out until the appeals process is exhausted, which can take several years. In Italy the statute of limitations often kicks in before the appeals process concludes. The statute of limitations in this case runs out in July or August, news agency Ansa reported.

-AG Holder says the size and potential economic impact makes it “difficult for us to prosecute” big banks http://propub.ca/ZtojUK

More weasel words from the Crypto Jew Eric Holder and NWO Zionazi. In your face terrorism of the American people by the GS/JPM/FED/BOE/ECB gang.

-Twitter/Internet/Rand Paul Force Psychopath  Jew Eric Holder to run for political cover and lie to cover up his real intent..

Holder: US has no authority to kill Americans with drones on US soil-The Hill

This guy is a psychopath and you can’t believe anything he says anymore than you could believe the Jew Joesph Stalin and mass murderer.

(NaturalNews) President Obama plans to use military drones in the skies over the United States to assassinate journalists, patriots and critics of his administration. That’s the inescapable conclusion from the emerging pattern of evidence now publicly available — keep reading for details.

Front and center in this pattern of evidence is the 16-page memo that was just released by Obama’s lawyers in the Department of Justice. This memo puts forth a “legal justification” for the President to order the drone assassination of any American citizen he names — anytime, anywhere, for any reason. This new power claimed by the President has no basis in federal law or the Constitution. It is an invented power of absolute tyranny that puts the power to decide who lives and who dies in the hands of one man. This document essentially legalizes the President acting as a serial murderer.

It is claimed that the purpose of this new power to simply name any American the President doesn’t like and immediately have them struck by a Hellfire missile launched from a drone is designed to “protect America.” Yet the 16-page memo that claims to justify all this was intentionally written to include Americans on U.S. soil as potential targets.

As Judge Andrew Napolitano explained just a few days ago on Fox News:

“This 16-page white paper is written so vaguely that the logic from it could… permit the President to kill Americans here in the United States.”

That’s the whole point, actually. If Americans on U.S. soil were to be excluded from such drone assassinations, such language would have been made readily apparent in the memo. But no such language is found in the memo. In fact, the tone of the document quite clearly states that the President has the authority to order drone killings of U.S. citizens anywhere in the world, under any circumstances.

This legal manipulation even has U.S. Senators worried. Democrat Senator Patrick J Leahy and Senator Charles Grassley sent a letter to Obama on Friday, stating, “The deliberate killing of a United States citizen pursuant to a targeted operation authorized or aided by our government raises significant constitutional and legal concerns.”

That’s the understatement of the year.

U.S. Senators are trying to create an “oversight committee” so that a few of them are part of the illegal, unconstitutional decision process of which Americans the U.S. government should murder next. As Kurt Nimmo reports with InfoWars.com:

Feinstein has proposed “legislation to ensure that drone strikes are carried out in a manner consistent with our values, and the proposal to create an analogue of the Foreign Intelligence Surveillance Court to review the conduct of such strikes,” in other words a secret tribunal that will hand down kill orders for Americans the government believes are “suspected militants.”

If drones are to be unleashed under the values of Feinstein — an outright traitor to the nation and a serial violator of the U.S. Constitution — then God help us all. Remember, Feinstein is the Senator who has already said she wants all Americans to turn all their guns in. She literally wants the entire U.S. civilian population disarmed so that government has all the weapons, including drones which Feinstein wants flying over U.S. cities, ready to strike named American citizens at any moment.

The American “battlefield” doctrine and the NDAA

In defending the drone assassination powers of the President, you might hear language used that says drones will “only be used on the battlefield.” That seems to imply they will only be used in the Middle East, right?

Wrong. The USA has been legally defined as the new “battlefield” by the NDAA. That’s the National Defense Authorization Act which also allows for the arrest and indefinite detention of American citizens without trial, without legal representation and even without them ever being charged.

The USA is the new “battlefield,” and when you combine the NDAA and the DOJ’s new drone killing justification memo, you now have the claimed legal framework for any American on U.S. soil to be arrested, detained, tortured or blown to bits without warning and without even a single shred of evidence being presented against him.

Yes, this is America today. Right now. You are living under a military dictatorship and most of you don’t even realize it yet. Even liberals and progressives are starting to wake up to Obama’s tyranny, by the way. On Democracy Now, Daniel Ellsberg recently described Obama’s actions as a “systematic assault on the Constitution.”

Who are the terrorists?

Of course, anyone who raises these points will be immediately dismissed with the claim that all this new power in the hands of the President will only be used “against terrorists.”

Okay, then who are the terrorists, exactly? It turns out they are YOU!

As Judge Napolitano recently explained:

The [Janet Napolitano DHS] memorandum said that people who are pro-life, people who believe in the right to keep and bear arms, returning veterans, people who think the government is too big and the IRS is too powerful, could be characterized as domestic terrorists. That could characterize two-thirds of the country. (Click here to see related video.)

Another DHS report named as terrorists anyone who opposes illegal immigration, abortion or federal taxes.

The pieces of the puzzle

So now it all becomes clear:

1) The NDAA legalized the federal government arresting, detaining and torturing American citizens if they were classified as “terrorists.”

2) The DOJ drone-killing memo legalized the President murdering anyone he names by simply claiming they might be associated with “terrorists.”

3) The DHS announces that anyone who isn’t an absolutely Big Government boot-licker and Obama worshipper IS A TERRORIST.

And there you have it: The full circle of justification to use military drone strikes against U.S. citizens on U.S. soil. Simply call them terrorists, and the rest of the legal framework backs you up.

I repeat: All that is necessary to justify the murder of American citizens without trial is labeling them “terrorists” even with no evidence to support such a claim. The drone killings require no evidence. They only require the signature of one man.

Who is likely on the drone strike target list in the USA

So who is most likely to be assassinated by President Obama once drone strikes are fully unleashed in the USA?

• Journalists.
• Political opponents.
• Anti-government protesters. (One Hellfire missile takes ‘em all out.)
• Online activists.
• Veterans.
• Gun owners and gun shops.
• Constitutionalists and libertarians.

Drone strikes are completely silent because the Hellfire missiles arrive faster than the speed of sound. You don’t even hear the missile until after the explosion. The blast radius of a Hellfire missile is 15 – 20 meters, and everything inside that radius is completely obliterated. This is more than enough to destroy entire homes, apartments and office buildings, not to mention vehicles and even light bunkers.

World Net Daily editor Joseph Farah actually voiced his concern about Obama being reelected, saying that he believed Obama would “kill journalists” if he won a second term. Farah is not being paranoid. He’s right on the money with where this is going. Click here to read his article published right before the 2012 election.

Drones are weapons of tyranny

In the history of America, rifles are the weapons of liberty, and in any war limited to just rifles and similar weapons, the People will always achieve victory over tyranny.

But tyrannies tend to rise up when specialized, highly-complex weapons come onto the scene, creating an imbalance of military power that suppresses the People. Drones are that new weapon: There is virtually no citizen defense against drones, and drones can strike targets anyone in the country with zero warning. You do not get called to appear in court, you do not get arrested, and you do not receive a warning. You’re simply murdered by the U.S. President without warning and without a trial. That’s the new America.

The cover story: Drone strikes that actually take out the homes of Obama’s political enemies can even be explained away as “bombings” using conventional explosives. A convenient cover story can keep drones out of the news, even while drone strikes are taking out journalists, activists and critics of the criminal Obama regime.

You might wonder, then, what is the strategy for defending against drones? It all comes down to men with rifles raiding drone airfields and taking them over. Once again, rifles become the single most important tool of resistance in the face of tyranny, which is exactly why the government is right now desperately seeking to register and confiscate all rifles in the hands of U.S. citizens. The MQ-1C Warrior drone has an operational range of 675 miles, meaning that drone airfields must be relatively close to intended targets. The airfields are the weak link, and this is what Americans must take back if drone mass murder is unleashed against American citizens (by any president, now or in the future).

There are also some high-tech defenses against drones. Iran appears to have hacked a drone by feeding it false GPS signals, guiding it to land on an Iranian runway where it was then taken into custody by the government there. This sort of GPS hacking appears to be relatively simple to accomplish, but the technique has never been proven in an actual military conflict.

Another defense against drones is to stay on the move. Don’t hole up in fixed locations for long periods of time. Drone strikes are only effective if the intended target’s location is known with certainty. In a resistance war against a tyrannical government, resistance forces will of course remain very mobile and unpredictable in their locations and movements. This will cause the government to waste lots of Hellfire missiles blowing up empty houses and likely killing the wrong people.

Every drone strike against U.S. targets will, of course, enrage the population even further, resulting in yet another mass wave of recruitment into the resistance. The more Americans Obama (or another president) kills with drones, the more powerful the resistance becomes. This spiral continues until there is either a violent armed overthrow of the government or the entire resistance movement is mass murdered by the government itself. In the case of the latter, that’s how we end up with Hitler, Stalin, Mao and other dictatorial tyrants who assume power in the aftermath of blood running in the streets.

Stop being so naive — this is happening NOW!

If you think any of this seems outlandish, you aren’t paying attention. The 16-page drone assassination memo has already been published. The NDAA is federal law. The DHS memos are real. All of us who question government, who own firearms, and who believe in the Bill of Rights have already been named terrorists.

The stage is being set to wage an all-out war with the American people. That’s the reason DHS has purchased 1.6 billion rounds of ammo. It’s the reason DHS is buying 7,000 full-auto assault rifles. All these weapons and ammo are for exclusive use inside the United States of America, on U.S. soil.

This is why thousands of bulletproof roadside checkpoints have been purchased by DHS. It’s why steel cable dividers are being installed on highways, so that you can’t turn around when approaching a TSA checkpoint. This is why talk of shooting gun owners is openly tolerated and even encouraged in the mainstream media and on social networks.

We are witnessing a full-on ramping up toward total war with the American people. This war will be caused (false-flagged) by the government itself, and it will be waged on U.S. soil, using drone assassinations, nationwide gun confiscation, FEMA camps and of course a declaration of Martial Law to justify it all.

The end game is a complete takeover of America by socialist / communist / fascist forces and the outright abolition of liberties and firearms in the hands of citizens. America is scheduled for termination, and people like Obama have been placed in power precisely because he can fool enough people for a sufficient amount of time to get this plan underway without popular resistance. Obama is seductive and hypnotic, so his followers will think he’s helping America even while he’s actually destroying it by design.

Drones are terminators in the sky, controlled by one man — a tyrant who sits in the Oval Office and respects no boundaries of either the Constitution or federal law. He makes law up as he goes along, betraying his oath of office and violating the very tenants of justice upon which this country was founded.

Obama is a traitor to America and a danger to us all. For the sake of America’s future, he must be impeached, thrown out of office and replaced with a President who actually upholds the Constitution and respects the laws of the land.

http://www.naturalnews.com/039391_drone_strikes_President_Obama_journalists.html#ixzz2Msjv23y0

 

-Market Monitor

U.S. STOCKS OVERVIEW
12:46 p.m. EST 03/07/13Major Indexes
Last Change % Chg
DJIA 14337.78 41.54 0.29
Nasdaq 3227.81 5.45 0.17
S&P 500 1544.13 2.67 0.17
DJ Total Stock Market 16111.92 29.87 0.19
Russell 2000 931.92 1.96 0.21
 
12:46 p.m. EST 03/07/13Markets Diary
Issues NYSE Nasdaq NYSE MKT
Advances 1,660 1,270 203
Declines 1,346 1,112 170
Unchanged 102 137 30
Issues at
New Highs 199 152 5
New Lows 6 9 5
Share Volume
Total 1,843,029,701 827,175,581 53,428,956
Advancing 1,193,229,826 507,948,178 24,429,541
Declining 623,065,169 306,748,350 26,503,888
 
DJ Industrial Average See Full Interactive Chart

EU-Europe Close

The ECB left its benchmark interest rate at 0.75 percent, a record low and straddled the fence on a rate cut next month. Even as the bad German and French data smacked the liar Draghi, in the face , and his own economists downgraded the EU forecast, he talked up the recovery with a lot of emphasis on inflation expectations being well contained and that monetary policy would remain loose. Inflation ‘expectations’ have been shown by UC Berkeley and other academics studies to not exist. People perceive inflation exists after monetary expansion brings it into existence. Inflation expectations well anchored means the ECB is rigging the Gold  market to keep money flowing into bonds mainly and to the banksters. We did have some good news ahead of the ECB meeting a banker from MP killed himself although Draghi did not comment on Bank corruption or on the great news of the world with one less thieving Italian banker in it like him.  The ECB  predicted the 17-nation economy will shrink 0.5 percent this year, more than the 0.3 percent contraction forecast three months ago. The estimate for 2014 growth was reduced to 1 percent from 1.2 percent. The central bank also cut its 2014 inflation projection to 1.3 percent from 1.4 percent. The ECB’s stated goal is to keep (rigged CPI) inflation just below 2 percent. Draghi moved his recovery out to ‘late’ 2013.  His refusal to comment about the value of the Euro, citing his ever changing policy to comment or not comment was as risible as his refusal to pinned down on the precise terms  of the mythical OMT. Largely we had a bunch of Bull Manure flung for the good part of an hour. He rolled over the BOE , USA opening and major USA economic release with his lies. I have nothing good to say about this thug and his covert market rigging and his constant stream of lies and evasive answers and his contempt for Journalists who try and pin him down. Even Greenspan was smart enough to not spit on the news fakers. His comment that the EU was not fragmenting but growing closer together was the biggest lie I could detect after mythical now, late 2013 recovery. There is going to have to be a lot more bond buy down and monetary goosing if that is going to happen. His boys must not like what I said about him being a Goldman Sachs thug as right after I typed that, someone tried to take down the ZGR. Nice to know we are noticed by the ECB of course even Prince Charles goon squad is here every day. 1/3 of our readers are from the City of London, yet they remain ‘silent’. The market riggers did manage to ambush the $E shorts and did a good job of whacking both sides of the market. A lot of this studied ambiguity is designed to make the ECBs’ major banking partners rich. Markets cant go down (ex gold and commodities) when  Central Banksters head bankster speak. Think of Draghi as the Sephardi Head of the Zionist banking Mafia of Europe. His violence exists in his monetary policies. That he has negative growth and 3.5 pc or so M3 growth means he has at least that much inflation rippling through the pipeline.

England

The Bank said on Thursday that the key interest rate and bank rate would be held at a record low of 0.5pc and its asset purchase total would remain at £375bn. The MPC had been expected to leave interest rates on hold at 0.5pc, but economists in London thought there was a strong possibility that it would increase its quantitative easing program by £25bn, taking it to a total of £400bn. The pound was rallied above #1.5/$ on the news.Three members of the nine-strong committee backed a £25bn increase in the bond buying program.

Up to 17.5 million RBS banking group customers were left without their money last night as the bank’s systems crashed. Certainly and ominous sign, if not a planned and staged event to test their ability to shut down withdrawals should a run start on RBS.

Cameron invoked Maggie Crackers (thatcher) and said no tax relief was forthcoming in the March 20 th budget and he was sticking by his deficit reduction plan. Vince Cable quietly let on, no he was not as the UK continues to blow its deficits out of the water monthly.  Cable might be the only credible voice the UK has had since Tony Blair took office, much like Paul Oneill, Bush’s first UST secretary was the only credible person going back all the way to David Stockman who told it like it was on the economy.

Italy

Bersani, at least verbally appeared to reverse course, at least to secure his position as PM. I wanted to note in the Italian polls today, Grillo’s five star movement moved ahead of Berlusconi. Bersani said to his party..

 

“We must leave the austerity cage. A change of course is absolutely necessary given that five years of austerity and attacks on workers have pushed up public debt levels across Europe. The vicious circle between belt-tightening and recession is putting representative government at risk and making it impossible to govern. The immediate emergency is the real economy and joblessness”

Mr Grillo has responded calling Mr Bersani a relic from a defunct political order that must be swept away by civic revolution. Yet many of his senators / deputies say the movement should seek common ground with the PD(Bersani’s party) and it appears we may be slowly moving towards a Grillo/Bersani government. Grillo is being promoted to neutralize Berlusconi whom Merkel wants gone very badly.

  President Napolitano will begin consultations (to form a government) on March 19, so the Italians are in no hurry until the Government Smirkel and Draghi can live with are in place.

Greece

There appears to be a wide gulf between Samaras Government and the Troika as their meeting was postponed. The  Greek stock market told the really story this week. As most EU markets are reaching for new highs and making them,  the Athens stock exchange hit it lowest closing prince YTD (936.57) and banks lost over 20 % in the last five session for -39.3 % YTD.  Tspiras is making major strides in the polls. Samaras is calling Merkels bluff and demanding a lot more for Greece, and the markets don’t like it. The German finance minister won’t say anything.

Germany  and France 

The leading news was the awful factory orders for Jan the German economy experienced and the unexpected drop in French employment in Q4.

Albert Edwards put out this helpful graphic to compare ‘declared’  Deficits versus real deficits, showing everyone is in the same boat more or less. Germany is not the powerhouse they claim, something we have been harping on for a long time, that Germany the first to breech the 60 pc of GDP figure mandated by the EU treaty, should have gotten its house in order over the last decade, but merely moved like the USA items off book to make their debt look better than it is.

If Italy is bust, so too are the UK, US and Germany, not to mention France. Nice chart of declared vs real off-balance sheet liabilities from Albert Edwards.<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />
And here&#8217;s my blog about the outcome of the Italian election and who should be most worried about it (not the Italians).

Still compared to weak sister Spain, Germany has jobs courtesy of no minimum wage and being able to  hire and fire non-union help at will like in the USA. $1 hr Turks are really helping the Germans along, and now cheap Greeks and Spaniards.

Embedded image permalink

France and Germany are at their widest economic divergence in the last 15 years as France hangs onto its beloved government unions, and 35 hour work weeks.

German Chancellor Angela Merkel reached out to the Eastern Europe as she pushes plans for a more competitive Europe, saying the euro area won’t become a “closed club today. ”Merkel’s comment, which signaled her aim to ally with EU nations she views as sharing German values of fiscal discipline, followed a meeting in Warsaw  with French President Francois Hollande, Polish Prime Minister Donald Tusk and their peers from the Czech Republic, Slovakia and Hungary- attending the meeting were prime ministers Robert Fico of Slovakia, Petr Necas of the Czech Republic and Hungary’s Viktor Orban. The forum is known as the Visegrad Group after the Hungarian town near the Slovak border that hosted the first meeting in 1991. It was the first time that French and German leaders jointly attended the four-country forum. Merkel and Hollande, have said they will offer a joint blueprint for boosting competitiveeness in May before an EU summit in June that is due to back a Europe-wide pact.Germany’s strategic aim is to avoid splitting the EU into euro-area and non-euro countries and garner more support from Eastern Europe as former East German/Communist type herself.

Equity Markets

I went long the DAX at the opening and sold when It was up a bit, to protect myself as Draghi was bound to goose his markets and we had the ESM jam up the DAX on the bad factory data. It looks like the DAX wants to push up to 8000 here. Certainly all the bad news that hit from the French unemployment to the ECB economic downgrade, to the Germany factory order was made into good news by the ESM/ECB and whoever ran that Spanish bond auction on the buy side. My bias on the DAX is still to the down side, given Greece is about ready to blow up in the Troika’s face. The Greeks have the general direction of the less manipulated EU markets right today. CDS spreads in London seemed to be held well in check today, probably by Regling.

Country: Index Last Change % Chg
Europe Dow 1717.77 11.87 0.70
Stoxx Europe 50* 2676.26 -0.24 -0.01
Stoxx Europe 600* 293.19 -0.19 -0.06
Euro Stoxx 50* 2690.85 10.96 0.41
Euro Stoxx* 271.38 0.90 0.33
Austria: ATX Index* 2509.27 2.84 0.11
Belgium: Bel-20* 2602.43 13.32 0.51
Denmark: OMX Copenhagen 20* 552.03 -5.73 -1.03
Estonia: OMX Tallinn* 786.17 2.17 0.28
Finland: OMX Helsinki* 6283.92 1.84 0.03
France: CAC 40* 3793.78 20.02 0.53
Germany: DAX* 7939.77 20.44 0.26
Greece: Athex Composite Share Price* 936.57 -26.88 -2.79
Greece: DJ Greece TSM* 702.96 -20.55 -2.84
Greece: FTSE/ATHEX 20* 307.15 -10.50 -3.31
Iceland: OMX Iceland All-Share* 790.45 2.23 0.28
Ireland: ISEQ Overall * 3828.28 2.25 0.06
Italy: FTSE MIB* 15947.17 47.47 0.30
Latvia: OMX Riga* 411.20 -0.85 -0.21
Lithuania: OMX Vilnius* 377.37 4.87 1.31
Netherlands: AEX* 347.87 0.51 0.15
Norway: OSE All-Share* 521.76 -1.47 -0.28
Portugal: PSI 20 6012.36 42.17 0.71
Russia: DJ Russia Titans* 6366.50 -2.40 -0.04
Spain: IBEX 35* 8389.10 30.20 0.36
Sweden: OMX Stockholm* 377.39 0.15 0.04
Switzerland: Swiss Market* 7708.96 10.24 0.13
UK: FTSE 100* 6439.16 11.52 0.18
UK: FTSE 250* 13953.35 30.08 0.22
UK: FTSE AIM All-Share* 745.26 3.38 0.46

 

EU Credit Markets

In the bond markets, and recall the UST auctions have been proven to be rigged in the past (John  Merrriweather), we had a lot of people front running the ECB/ESM in Spain. Clearly the ECB is worried about the lack of recovery and there is a further covert buy down in Spain, despite their failure to meet deficit targets, limited labor reform, and spiraling downward unemployment and GDP. No one ‘sane’ would bid up Spains bonds like we saw today. I suspect the ESM is openly giving order to its dealers and they piggyback and front run and pass the word around the bond desks of London. The French bond auction, did not go well and was more in line with the Economic data we saw from France. Italy from the perspective of having a near balanced budget should not be trading close to par with Spain’s bonds, given Bersani the putative winner wants to stick to the Monti game plan and likely a ‘care taker’ government will be stuffed down the throats of the Italians until after Merkel’s election. It certainly looks like Merkels backer and possibly her relatives the Rothschilds will do anything to get her elected. When your economy is punk and your policies stink, the last thing you want is the CB or this ESM slush fund rewarding that behavior with below market rates. Clearly despite what Draghi said, somone is goosing the EU economy big time and trying to get Spain moving. Recall the Noyer put.

German 10y 1.51+0.05, 3.29%

Italy 10yr 4.56-0.04, 0.97%

Spain 10yr 4.89-0.11, 2.21%

 U.K. 10yr  2.02+0.063.25%

Key Bond Auctions

 (ES) Spain Debt Agency (Tesoro) sold total €5.03B vs. €4.0-5.0B indicated range in 2015, 2018 and 2023 Bonds .Sold €569M in 3.75% Oct 2015 Bono Bond; Avg Yield 2.632% v 2.713% prior; Bid-to-cover: 4.9x v 2.02x prior; Maximum Yield 2.68% v 2.770%; Tail 4.8bps v 5.7bps prior.  Sold €2.03B in Jan 4.5% 2018 Bono Bond; Avg Yield 3.572% v 4.123% prior; Bid-to-cover: 2.3x v 2.24x prior; Maximum Yield 3.612% v 4.169%; Tail 4.0bps v 4.6bps prior.  Sold €2.435B in 5.4% 2023 bonds; Avg Yield 4.917% v 5.202% prior; Bid-to-cover: 2.3x v 1.6x prior; Max Yield 4.957% v 5.222% prior; Tails 4.0bps v 2.0bps

(FR) France Debt Agency (AFTsold total €7.48B vs. €6.5-7.5B indicated range in 2018, 2022 and 2027 Oats. Sold €2.354B in 4.25% Oct 2018 Oats, Avg Yield 1.02% v 1.01% prior; Bid-to-cover: 2.44x v 3.38x prior. Sells €3.495B in 2.25% Oct 2022 OAT; Avg Yield 2.10% v 2.30% prior; Bid-to-cover: 2.20x v 3.09x prior.  Sells €1.635B in 2.75% 2027 Oats; Avg Yield 2.71% v 2.85% prior; Bid-to-cover: 2.52x v 1.79x prior

 

-UN approves Sanctions against the Crazy Korea

U.N. Security Council unanimously approves sanctions against North Korea after third nuclear test   http://bloom.bg/WwHkJt

-Anglo-Zionist Cartel really going after Rouge Zionist John Paulson’s gold fund

Paulson Gold Fund Down 18% as Metal’s Slump Foils Rebound

John Paulson posted an 18 percent decline in his Gold Fund last month as a slump in the metal, after more than a decade of gains, undermined efforts by the billionaire hedge-fund manager to rebound from two years of losses in some strategies.The $900 million Gold Fund, which invests in bullion- related equities and derivatives, is down 26 percent this year, Paulson & Co. said yesterday in a client update obtained by Bloomberg News. The firm’s Advantage funds also fell in February after the metal and related stocks weakened as signs of economic optimism curbed gold demand.Paulson is being hurt as gold fell for the fifth straight month, its longest slump in 16 years. The manager told clients in 2012 his Gold Fund would beat his other strategies over five years because the metal was the best hedge against inflation and currency debasement as countries pump money into their economies. Falling gold stocks helped fuel losses last year in the manager’s $4.9 billion event-driven Advantage funds and the Gold Fund, and he also made wrong-way bets thatEurope’s debt crisis would worsen.“Despite the volatility and drawdown of our gold equity positions, we believe in the long-term outlook for these positions as quantitative easing programs continue around the world, credit expands in the United States, and gold equities continue to trade at a significant discount” to historical average valuations, the hedge fund said in a letter sent yesterday to investors, which was obtained by Bloomberg News.Armel Leslie, a spokesman for $18 billion Paulson & Co., declined to comment on the returns…

http://www.bloomberg.com/news/2013-03-07/paulson-gold-fund-down-18-as-metal-s-slump-foils-rebound.html

-If US payrolls grow at 200k ( last 3 months’ average) and participation rate is stable, we hit Fed’s 6.5% unemployment target in April 2015.

-France says it has killed more than 150 Mali patriots since Mid Feb. Congratulations Mssr Rothschilds..er Hollande.  (Afp story)

-President Barack Obama invited House Budget Committee Chairman Paul Ryan and Chris Van Hollen, the panel’s top Democrat, to lunch today as he seeks to restart talks on a long-term deal to reduce the federal deficit.The 12:25 p.m. lunch in a private dining room of the executive mansion was listed on Obama’s official schedule released by the White House

-The Silence of the Lambs… CFTC moves to criminalize academic who exposed HFT scams

The Sheer depravity of the Anglo-Zionist ‘controllers’ never ceases to amaze me. Goldman Sachs must have been involved for this to happen.

http://www.bloomberg.com/news/2013-03-06/academic-use-of-cftc-s-private-derivatives-data-investigated-1-.html

-I bought the DIA in the premarkets before the data dump and the open and just sold. Selling a bit more short here. I bought the DAX open and unloaded after seeing German Factory orders and Regling trying to Jam the market up. I remain short the DIA, SPY, DAX. USA jobs figure is 160k tomorrow. The books are harder to cook in FEB. The ADP data is BS if you read all the layoff notices in the USA papers every day. Hard to say if it was Draghi’s ‘inflation expectations well anchored’ or the horrid USA trade figures that caused the Cartel to whack gold. I would have to look at it tick by tick and reanalyze the time line to be sure although it appeared to be cued to Draghi. The ECB is a big part of the gold rig.

Major Stock Indexes
Last Change % Chg
DJIA 14340.81 44.57 0.31
Nasdaq 3224.95 2.58 0.08
S&P 500 1543.73 2.27 0.15
DJ Total Stock Market 16109.24 27.19 0.17
Russell 2000 931.01 1.05 0.11
Global Dow 2117.68 6.45 0.31
Australia: S&P/ASX* 5109.20 -7.60 -0.15
India: BSE Sensex* 19413.54 160.93 0.84
Japan: Nikkei 225* 11968.08 35.81 0.30
Taiwan: TAIEX* 7960.51 10.21 0.13
France: CAC 40 3793.23 19.47 0.52
Germany: DAX 7933.33 14.00 0.18
Italy: FTSE MIB 15928.06 28.36 0.18
Spain: IBEX 35 8408.20 49.30 0.59
Stoxx Europe 600 293.14 -0.24 -0.08
UK: FTSE 100 6445.17 17.53 0.27
Brazil: Bovespa 59017.22 1077.08 1.86
Canada: S&P/TSX 12843.40 11.44 0.09
 
10:42 a.m. EST 03/07/13Treasurys
Price Chg Yield %
2-Year Note -0/32 0.265
10-Year Note -14/32 1.989
* at close
10:33 a.m. EST 03/07/13Futures
Last Change Settle
Crude Oil 91.59 1.16 90.43
Gold 1576.4 1.5 1574.9
E-mini Dow 14269 4 14265
E-mini S&P 500 1544.00 5.00 1539.00
10:43 a.m. EST 03/07/13Currencies
Last (mid) Prior Day †
Japanese Yen (USD/JPY) 94.68 94.07
Euro (EUR/USD) 1.3096 1.2966
† Late New York trading.

 

-EIA says U.S. natural gas stockpiles fell 146 bcf last week

-EU Session Economic Release Summary

German factory orders went off  the rail in Jan,  along with Frances’s employment outlook in Q4.  So as Draghi blabbed away the EZ economic situation got worse. Maybe they should pay him more to say less. 

(EU) ECB: €48M borrowed in overnight loan facility vs. €3.5B prior; €139.4B parked in deposit facility vs. €146.7B prior

(DE) Germany Factory Orders - 1.9% in Jan vs 0.5%e.Factory orders rose by 1.1% in December, revised up from .8 %. German factory orders  Y/Y dropped – 2.5% in January, vs -1.6%e , after falling at a rate of 1.9% in December.

(FR) France Q4 ILO Unemployment Rate: 10.6% v 10.5%e; Mainland Unemployment Rate: 10.2% v 10.1%e; Mainland Unemployment Change: +124K v +29K prior. ( (FR) France Trade Balance EUR (Jan): €-5.9B vs -€4.8Be , prior  €-5.4B (Dec)

(AT) Austria Jan Producer Price Index M/M: +0.1% v -0.4% prior; Y/Y: 0.3% v 0.3% prior

(CH) Swiss Feb Unemployment Rate: 3.4% v 3.4%e; Unemployment Rate Seasonally Adj: 3.1% v 3.1%e (CH) Swiss Feb Foreign Currency Reserves (CHF): 427.0B v 427.0Be

(DK) Denmark Jan Industrial Production M/M: +7.2% v -3.8% prior; Industrial Orders M/M: % v -14.4% prior

(HU) Hungary Jan Preliminary Industrial Production M/M: +2.9% v -2.5% prior; Y/Y: -1.4% v -1.0%

(HU) Hungary Feb FX Reserves: €35.9B v €34.4B prior

(SE) Sweden Feb Average House Prices (SEK): 2.023M v 2.197M prior
(SE) Sweden Feb Budget Balance (SEK): +15.6B v -96.3B prior

(NL) Netherlands Feb CPI M/M: 0.8% v 0.0% prior; Y/Y: 3.0% v 2.9%e
(NL) Netherlands Feb CPI EU Harmonized M/M: 1.0% v 0.0% prior; Y/Y: 3.2% v 3.0%e

(NO) Norway Jan Industrial Production M/M: -4.0% v 0.0% prior; Y/Y: -7.5% v 1.2% prior
(NO) Norway Jan Manufacturing Production M/M: 0.3% v 0.3%e; Y/Y: 2.4% v 2.9% prior .(NO) Norway Jan Credit Indicator Growth Y/Y: 6.3% v 6.4%e

(IT) Italy Jan PPI M/M: -0.5% v -0.3% prior; Y/Y: 0.8% v 2.4% prior

(CZ) Czech Feb International Reserves: $ 45.4Bv $45.8B prior

(RU) Russia Feb Official Reserve Assets: $526.2B v $532.2B prior

(RU) Russia Gold & Forex Reserve w/e Mar 1st: $523.4B v $524.0B prior

(GR) Greece Dec Unemployment Rate: 26.4% v 26.6% prior

(IT) Bank of Italy Feb Balance-Sheet: ECB funding to Italian banks at €281.0B v €279.3B prior

Asia  and africa

(TW) Taiwan Feb Total Trade Balance: $0.9B v $2.1Be; Total Exports Y/Y: -15.8% v -8.1%e; Total Imports Y/Y: -8.5% v -7.3%e

(HK) Hong Kong Feb Foreign Currency Reserves: $304.8B v $321.0B

(SG) Singapore Feb Foreign Reserves: $259.2B v $258.8B prior
(MA) Malaysia Feb Foreign Reserves: $140.3B v $140.3B prior .Malaysia Central Bank leaves Overnight Rate unchanged at 3.00%, as expected

(ID) Indonesia Central Bank leaves Reference Rate unchanged at 5.75%; as expected

(ZA) South Africa Feb Gross Reserves: $50.4B v $50.5Be; Net Reserves: $47.2B v 47.5Be (ZA)South Africa Feb SACCI Business Confidence: 93.0 v 94.0 prior

UN Foods and Agricultural Organization Feb Food Price Index: 210 v 210 prior

-Market Check

9:33 a.m. EST 03/07/13Major Stock Indexes
Last Change % Chg
DJIA 14315.97 19.73 0.14
Nasdaq 3224.96 2.59 0.08
S&P 500 1543.61 2.15 0.14
DJ Total Stock Market 16100.46 18.41 0.11
Russell 2000* 929.96 2.56 0.28
Global Dow 2116.46 5.23 0.25
Australia: S&P/ASX* 5109.20 -7.60 -0.15
India: BSE Sensex* 19413.54 160.93 0.84
Japan: Nikkei 225* 11968.08 35.81 0.30
Taiwan: TAIEX* 7960.51 10.21 0.13
France: CAC 40 3785.95 12.19 0.32
Germany: DAX 7922.43 3.10 0.04
Italy: FTSE MIB 15945.71 46.01 0.29
Spain: IBEX 35 8409.10 50.20 0.60
Stoxx Europe 600 293.33 -0.05 -0.02
UK: FTSE 100 6442.23 14.59 0.23
Brazil: Bovespa 58852.20 912.06 1.57
Canada: S&P/TSX* 12831.96 95.92 0.75
 
9:32 a.m. EST 03/07/13Treasurys
Price Chg Yield %
2-Year Note 0/32 0.261
10-Year Note -9/32 1.972
* at close
9:23 a.m. EST 03/07/13Futures
Last Change Settle
Crude Oil 90.96 0.53 90.43
Gold 1580.9 6.0 1574.9
E-mini Dow 14269 4 14265
E-mini S&P 500 1541.25 2.25 1539.00
9:33 a.m. EST 03/07/13Currencies
Last (mid) Prior Day †
Japanese Yen (USD/JPY) 94.48 94.07
Euro (EUR/USD) 1.3079 1.2966
† Late New York trading.

-USA Opening prices

Major Indexes
Last Change % Chg
DJIA 14308.49 12.25 0.09
Nasdaq 3224.75 2.39 0.07
S&P 500 1542.91 1.45 0.09

-Draghi Press Conference (live from top to bottom (most recent)) 

( Wildly slung Bull Manure by one of the biggest Goldman Sachs Thugs in the history of the world).

Monetary stance will remain accommodative

Inflation expectations remain anchored, sees Inflation risk as broadly balanced

ECB see 2013 inflation 1.2%- 2% VS 1.1% to 2.1%, see 2014 inflation 0.6% TO 2% VS 0.6% TO 2.2%.

Downside Inflation Risks Stem from Weaker Economic Activity

Economy should pick up late 201. Says ECB sees ‘downside risks’ on economic growth

Data signal economy should stabilize in 1H

ECB staff revise down 2013 GDP projections

(Euro$ is pumped as he speaks to 1.30+, Gold was hit either as he spoke or as the USA data was released)

A single resolution mechanism is a crucial mechanism for moving towards reintegration of financial system (along with SSM)

It is of particular importance to address high long term & youth unemployment, more structural market reforms needed

Admits mention of Euro appreciation as growth risk

Discussed possibility of a rate cut, the prevailing consensus was to leave the rates unchanged.

ECB President Draghi indicates decision to keep rates at 0.75% was not unanimous

About 40% of the net injection under the LTRO has been repaid, balance sheet of ECB shrunk

signs of increased cross border activity, flows from core to non core countries

SMEs do have problems funding themselves, shows situation is fragile, more in the real economy, weak outlook in short term

ECB monetary policy stance will remain accomodative as long as needed

“We will remain in full allotment mode as long as needed.We think this will have a positive contribution”

“my suggestion is that you check with us before you write something that doesn’t exist” (yeah, how about the lack of growth in the EZ under your mismangement?)

the troika has to look at the whole of Europe, we believe the ECB has some value added in the financial sector, works very well. our monetary policy responsibilities would demand that we are part of this team (troika). we haven’t taken any decision under political pressures of any kind. Says sees plenty of evidence ECB is independent

Says price drops in some country part of adjustment(did he mean incomes gone and suicides?)

Says stock market rally due to returning confidence (BS)

the goal of the SNS Real nationalisation was to ensure the stability Dutch banking system, reform agenda must continue

“does not see evidence of generalized fall in prices” – that would be a trigger for full-blown QE

1008-still blabbing away q/a

fragmentation is not worsening, it is improving, receding. Data on spreads of the lending rates, shows it is lower than last year

OMT cannot be used to enhance the return of countries to the markets – (only once market return is confirmed) (wrt to Ireland)

Cyprus Capital Flight- ‘good progress, says program 2 part of march’. says EU not transfer union. wants money laundering controls handed over to ECB essentially. Cyprus risk not small.”Cyprus is a systemic economy, but the systemic risks may not be small”

Claims ECB does not clean bank balance sheets (what a liar). fragmentation started with the sovereign debt crisis, then propagated to financial system

(looks like he is going to blab right through USA opening, this guy needs a hook and an electric shock everytime he lies)

Claims OMT rules are clear. Refuses to clarify, basically calls the reporter an idiot.

Reads his G20 statement on Euro, refuses to comment on it.

Reads inflation statement again. says exchange rate can alter risk of inflation assessment.

Says does not discuss trade.

Blames labor legislation in individual countries causing youth unemployment.

(Euro up near 1.31) , says 3 rd time monetary policy will be accomodative

Continues to down play and avoid talking  italy risk and says they should continue reform, fiscal consolidation.

USA Opens as he continues to blab (on last question)

Major Indexes
Last Change % Chg
DJIA 14308.49 12.25 0.09
Nasdaq 3224.75 2.39 0.07
S&P 500 1542.91 1.45 0.09

Negative interest rates unchartered waters..

0932 Finished!!

Text

——————————

ECB — Draghi Press Conference

Mario Draghi, President of the ECB,
Vítor Constâncio, Vice-President of the ECB,
Frankfurt am Main, 7 March 2013

Ladies and gentlemen, the Vice-President and I are very pleased to welcome you to our press conference. We will now report on the outcome of today’s meeting of the Governing Council.

Based on our regular economic and monetary analyses, we decided to keep the key ECB interest ratesunchanged. HICP inflation rates have declined further, as anticipated, and fell below 2% in February. Over the policy-relevant horizon, inflationary pressures should remain contained. The underlying pace of monetary expansion continues to be subdued. Inflation expectations for the euro area remain firmly anchored in line with our aim of maintaining inflation rates below, but close to, 2% over the medium term. Overall, this will allow our monetary policy stance to remain accommodative. Available data continue to signal that economic weakness in the euro area has extended into the beginning of the year, while broadly confirming signs of stabilisation in a number of indicators, albeit at low levels. At the same time, necessary balance sheet adjustments in the public and private sectors will continue to weigh on economic activity. Later in 2013 economic activity should gradually recover, supported by a strengthening of global demand and our accommodative monetary policy stance. In order to support confidence, it is essential for governments to continue implementing structural reforms, to build further on the progress made in fiscal consolidation, and to proceed with financial sector restructuring.

 

With regard to the liquidity situation of banks, counterparties have so far repaid €224.8 billion of the €1,018.7 billion obtained in the two three-year longer-term refinancing operations (LTROs) settled in December 2011 and March 2012. In net terms, this implies that, of the increase in the outstanding volume of bank refinancing through the ECB’s monetary policy operations of around €500 billion between mid-December 2011 and early March 2012, about €200 billion have now been repaid. These repayments reflect improvements in financial market confidence over the last few months and receding financial market fragmentation. We are closely monitoring conditions in the money market and their potential impact on the stance of monetary policy and the functioning of the transmission of our monetary policy to the economy. Our monetary policy stance will remain accommodative with the full allotment mode of liquidity provision.

Let me now explain our assessment in greater detail, starting with the economic analysis. The GDP outcome for the fourth quarter of 2012 was weak, with Eurostat’s second estimate indicating a contraction of 0.6% quarter on quarter. The decline was largely due to a fall in domestic demand but also reflected weak exports. As regards 2013, recent data and indicators suggest that economic activity should start stabilising in the first part of the year. A gradual recovery should commence in the second part, with export growth benefiting from a strengthening of global demand and domestic demand being supported by our accommodative monetary policy stance. Furthermore, the improvements in financial markets since July last year and the continued implementation of structural reforms should work their way through to the economy. At the same time, necessary balance sheet adjustments in the public and private sectors, and the associated tight credit conditions, will continue to weigh on economic activity.

This assessment is also reflected in the March 2013 ECB staff macroeconomic projections for the euro area, which foresee average annual real GDP growth in a range between -0.9% and -0.1% in 2013 and between 0.0% and 2.0% in 2014. Compared with the December 2012 Eurosystem staff macroeconomic projections, the ranges have been revised slightly downwards. The revision for 2013 mainly reflects a more negative carry-over effect from the outcome for real GDP in the fourth quarter of 2012, while the projected path of the recovery has remained broadly unchanged.

The Governing Council continues to see downside risks surrounding the economic outlook for the euro area. The risks relate to the possibility of weaker than expected domestic demand and exports and to slow or insufficient implementation of structural reforms in the euro area. These factors have the potential to dampen the improvement in confidence and thereby delay the recovery.

According to Eurostat’s flash estimate, euro area annual HICP inflation was 1.8% in February 2013, down from 2.0% in January. The on-going decline in annual inflation rates mainly reflects the energy and food components of the price index. Looking ahead, while the monthly pattern of headline inflation rates may be somewhat volatile, underlying price pressures should remain contained given the environment of weak economic activity in the euro area. Inflation expectations are well-anchored and in line with price stability over the medium term.

The March 2013 ECB staff macroeconomic projections for the euro area foresee annual HICP inflation in a range between 1.2% and 2.0% in 2013 and between 0.6% and 2.0% in 2014. In comparison with the December 2012 Eurosystem staff macroeconomic projections, the ranges are broadly unchanged.

In the Governing Council‘s assessment, risks to the outlook for price developments continue to be seen as broadly balanced over the medium term, with upside risks relating to stronger than expected increases in administered prices and indirect taxes, as well as higher oil prices, and downside risks stemming from weaker economic activity.

Turning to the monetary analysis, monetary figures for January 2013 support our assessment that the underlying pace of monetary expansion continues to be subdued. The annual growth rate of M3 remained broadly unchanged at 3.5% in January, after 3.4% in December 2012. The annual rate of growth of the narrow monetary aggregate, M1, increased to 6.7% from 6.3% in December 2012. The deposit base of MFIs in a number of stressed countries strengthened further in January.

The annual growth rate of loans (adjusted for loan sales and securitisation) to non-financial corporations stood at -1.5% in January, after -1.3% in December 2012. The annual growth in MFI loans to households moderated slightly to 0.5%, from 0.7% in December. To a large extent, subdued loan dynamics reflect the current stage of the business cycle, heightened credit risk and the ongoing adjustment of financial and non-financial sector balance sheets. At the same time, available information on the access to financing of non-financial corporates indicates tight credit conditions for small and medium-sized enterprises.

In order to ensure adequate transmission of monetary policy to the financing conditions in euro area countries, it is essential to continue reducing fragmentation of euro area credit markets and strengthening the resilience of banks where needed. Decisive steps for establishing an integrated financial framework will help to accomplish this objective. The future Single Supervisory Mechanism (SSM) is one of the main building blocks, together with a Single Resolution Mechanism (SRM). Both are crucial elements for moving towards re-integrating the banking system.

To sum up, the economic analysis indicates that price developments should remain in line with price stability over the medium term. A cross-check with the signals from the monetary analysis confirms this picture.

While the accommodative monetary policy stance will continue to support the recovery in the euro area, it is essential that fiscal and structural policies strengthen the prospects for economic growth over the medium term. As regards fiscal policies, the European Commission’s 2013 winter forecast reflects progress in reducing fiscal imbalances in the euro area. The euro area-wide general government deficit is expected to have declined from 4.2% of GDP in 2011 to 3.5% of GDP in 2012 and is projected to be reduced further to 2.8% of GDP this year. Governments should build on this progress with a view to further restoring confidence in the sustainability of public finances. At the same time, fiscal consolidation must be part of a comprehensive structural reform agenda to improve the outlook for job creation, economic growth and debt sustainability. In the view of the Governing Council, it is of particular importance at this juncture to address the current high long-term and youth unemployment. To this end, further product and labour market reforms are needed to create new job opportunities by supporting a dynamic, flexible and competitive economic environment.

-They always seem to hit gold, no matter what after bad trade data.

-U.S. weekly jobless claims fall 7,000 to 340,000. Four-week claims average drops 7,000 to 348,750. Continuing claims rise 3,000 to 3.09 million.

- The U.S. trade deficit widened 16.5% in January to $44.4 billion, reversing much of a narrowing in the prior month, the Commerce Department said Thursday. The January trade deficit was above the consensus forecast of Wall Street economists of a deficit of $42.4 billion. Exports slumped 1.2% in January to $184.5 billion while imports jumped 1.8% to $228.9 billion, led by an increase in crude oil imports. The U.S. trade deficit with China widened to $27.8 billion in January compared with $26.0 billion in the same month last year. The weak European economy continued to weigh on U.S. exports to the region. U.S. exports to the euro-area were down 2.2% on a year-on-year basis.  MW

-North Korea warns U.S. of preemptive nuclear strike

- Membership warehouse club chain Costco Wholesale Corp.COST -0.57% on Thursday reported a 6% increase in its comparable February sales, including a 6% gain in the U.S. and a 4% increase overseas. The result beat the 5.1% average estimate of analysts surveyed by Thomson Reuters. Excluding the positive impact of gasoline inflation, U.S. sales rose 6%, beating the 4.8% consensus estimate. Costco stock was unchanged at $102.56 in premarket trading.  MW

-825 Europe

Country: Index Last Change % Chg
Europe Dow 1713.09 7.19 0.42
Stoxx Europe 50 2683.53 7.03 0.26
Stoxx Europe 600 294.03 0.65 0.22
Euro Stoxx 50 2690.89 11.00 0.41
Euro Stoxx 271.49 1.01 0.37
Austria: ATX Index 2510.57 4.14 0.17
Belgium: Bel-20 2599.80 10.69 0.41
Denmark: OMX Copenhagen 20 554.56 -3.20 -0.57
Estonia: OMX Tallinn 784.46 0.46 0.06
Finland: OMX Helsinki 6284.70 2.62 0.04
France: CAC 40 3790.57 16.81 0.45
Germany: DAX 7935.98 16.65 0.21
Greece: Athex Composite Share Price 942.26 -21.19 -2.20
Greece: DJ Greece TSM 706.66 -16.85 -2.33
Greece: FTSE/ATHEX 20 309.47 -8.18 -2.58
Iceland: OMX Iceland All-Share 791.08 2.86 0.36
Ireland: ISEQ Overall 3840.08 14.05 0.37
Italy: FTSE MIB 15958.20 58.50 0.37
Latvia: OMX Riga 410.81 -1.23 -0.30
Lithuania: OMX Vilnius 376.60 4.10 1.10
Netherlands: AEX 348.80 1.44 0.41
Norway: OSE All-Share 522.77 -0.46 -0.09
Portugal: PSI 20 6034.34 64.15 1.07
Russia: DJ Russia Titans 6389.67 20.77 0.33
Spain: IBEX 35 8407.50 48.60 0.58
Sweden: OMX Stockholm 377.48 0.24 0.06
Switzerland: Swiss Market 7707.79 9.07 0.12
UK: FTSE 100 6443.41 15.77 0.25
UK: FTSE 250 13939.00 15.73 0.11
UK: FTSE AIM All-Share 743.38 1.50 0.20

-Merkel: ‘vacation in Greece’

(what brilliant leadership !!)

-Pick it up in the USA morning. I have to focus on my trading.

-Gorbachev :  Putin’s inner circle is ‘full of thieves’- BBC

Crypto Jew and Rothschilds apparatchik Gorbachev.

-EU Parliament President Schultz says EU Parliament will not approve EU budget (what a screwed up place!)

-The U.S. Department of Agriculture said global wheat production may reach a new record in the coming year, replenishing tight supplies and raising the chances for further price falls.”If not a record crop, then certainly we can expect a return to the levels we have seen in recent years,” said Department of Agriculture Chief Economist Joseph Glauber in an interview with Dow Jones Newswires late Wednesday.

-0300 Europe Opens

Stoxx Europe 600 index flat at 293.48

DAX Opens  at 7931.80 from previous close at 7919

French CAC 40 index up 0.3% to 3,783.32

FTSE 100 index up 0.2% to 6,442.40

Bonds

German 10y 1.46+0.01, -0.49%

Italy 10yr 4.60-0.07, 1.56%

 Spain 10yr 5.00-0.04, 0.83%
EUR/USD 1.2994 +0.0027 +0.20%
GBP/USD 1.4984 -0.0035 -0.23%
USD/JPY 93.96 -0.12 -0.13%
USD/CHF 0.9482 -0.0004 -0.05%
AUD/USD 1.0246 +0.0011 +0.11%
USD/CAD 1.0314 -0.0005 -0.05%
EUR/GBP 0.8674 +0.0037 +0.43%
Gold 1582.00 +7.10 +0.45%
Silver 28.947 +0.144 +0.50%
Copper 3.501 +0.007 +0.21%
Crude Oil 90.38 -0.06 -0.06%
Natural Gas 3.496 +0.026 +0.75%
US Cotton No.2 86.78 -0.46 -0.52%
US Coffee C 140.95 +0.42 +0.30%

-Head of communication at Monte dei Paschi di Siena, David Rossi, has commited suicide

-BOJ’s Shirakawa: Japan’s economy moving in “good direction”. BOJ to promote powerful easing to achieve 2% inflation target (press conference)

-French Trade Balance Jan  M/M -EU5862mln vs. Exp. -4700mln (Prev. -5349mln, Rev. to -5418mln). More bad news for France.

-Futures

Futures Index Value % Change Open High Low Time
Americas Futures
DJIA INDEX FUTURE Mar13 14,279.00 +0.10% 14,275.00 14,279.00 14,263.00 02:35:11
S&P 500 FUTURE Mar13 1,539.60 +0.03% 1,539.60 1,539.80 1,537.70 02:35:37
NASDAQ 100 FUTURE Mar13 2,791.50 +0.12% 2,789.75 2,791.50 2,789.00 02:34:44
EURO STOXX 50 Mar13 2,682.00 +0.11% 2,684.00 2,686.00 2,681.00 02:31:19
FTSE 100 IDX FUT Mar13 6,422.00 +0.22% 6,428.00 6,433.00 6,420.50 02:31:22
DAX INDEX FUTURE Mar13 7,926.00 +0.08% 7,936.50 7,937.00 7,922.50 02:31:15

-  UK’s BCC: Cuts 2013 GDP forecast to 0.6% from 1.0% prior in Dec; Sees BOE to expand QE by £50B in H1

-202 Asia

Japan

Japan’s Nikkei finished up  0.3% at 11,968.08, after surging over 12,000 as the BOJ held rates at the last meeting of Governor Shirakawa.  The BOJ kept asset purchase program at Y101T; raises economic assessment for 3rd consecutive meeting: Economy stops weakening, exports appear to have stopped decreasing, resilience seen in non-manufacturing. Board member Shirai makes new proposal to begin its open-ended program immediately vs Jan 2014 and gets voted down 8-1, which occuldes the outlook of extent to which the  the BOJ board will fall in line under Kuroda and his deputies, who has called for expanding asset buying and pushing forward unlimited easing during recent hearings before the Diet.

Japan  plans to hold on to its nearly half century of leadership atop the Asian Development Bank, announcing today that it has nominated a senior finance ministry official as a candidate to head the regional lender, Finance Minister Taro Aso said Vice Finance Minister for International Affairs Takehiko Nakao will compete for the top post at the ADB.

The balance of outstanding Japanese government bonds will likely reach 1,014 trillion yen at the end of the fiscal 2022, up from 732 trillion yen expected as of March 31, 2014, the Ministry of Finance said Wednesday.In addition to rising costs of social security for the aging population, higher interest rates resulting from nominal economic growth will likely increase the cost of interest payments on JGBs. The Finance Ministry’s calculations – submitted for deliberation as part of fiscal 2013 budget proposals used a nominal economic growth rate of 3%-assuming that Prime Minister Shinzo Abe’s economic policy succeeds, which is an improbable assumption.

TM, plans to issue up to ¥450B in Bonds; Requests that parts suppliers lower their prices by 1%. Ajinomoto Co.  said it will acquire U.S. firm Althea Technologies Inc. for 16 billion yen, with plans to obtain 100% of shares in the biopharmaceutical manufacturer next month. Biopharmaceuticals  have fewer side effects than conventional drugs, so the market for them is expanding.

China

Former PBOC adviser Li says Japan’s easing impact on China won’t be too big, says China should keep a flexible monetary policy. PBOC announced it drained another CNY5B in liquidity for the week, which caused a decline in the markets of over 1 pc today in China.

China’s  Hebei province (top steel producing province) said to be in plans to eliminate 60M tons of crude steel capacity.

China and the USA are set to move forward with N. Korean economic sanctions at the UN in response to North Korea’s recent nuclear test. An important milestone with the new Xi administration.

China’s planned urbanization drive will be the main engine of growth in domestic economic activity in the years ahead, giving the government scope to boost domestic demand and infrastructure investment, a senior planning official said.China plans to spend 40 trillion yuan (US$6.4 trillion) to bring 400 million people to cities over the next decade as the government seeks economic growth generated by domestic consumption. China’s government hopes 60 percent of the population will be urban residents by 2020.The NDRC’s annual report to the legislature said China’s urbanization rate would climb to 53.37 percent this year, up from 52.57 percent in 2012. Premier Wen Jiabao said consumption was key to unlocking the potential of domestic demand and would reduce excess, inefficiency and inequality.It would also help deliver growth of 7.5 percent in 2013 – a level China barely beat in 2012 when growth was the slowest, 7.8 percent, in 13 years.Urbanization is a policy priority for the government which wants to create a true consumer class that will help rebalance growth drivers away from the investment-heavy, export-oriented model.The factory-fueled, breakneck economic expansion that has lifted hundreds of millions from rural poverty has also led to misallocation of resources, massive industrial inefficiency and exacerbated pollution.China may borrow from overseas experience to finance its massive urbanization over the next decades through asset securitization and municipal bonds in addition to bank loans, central banker Zhou Xiaochuan said.

China could overtake the United States as the world’s largest oil importer earlier than expected, while US net oil imports continue to drop due to its booming domestic supply — a remarkable shift between the world’s two largest energy consumers.Some Chinese experts predict that China will become the biggest oil importer in 2015, but that may come even earlier, given the rapid transformation, said Niu Li, a senior economist with the State Information Center, a government think tank.In 2012, China’s net oil imports were still lower than the US’ by about 1 million barrels a day, but in some months, China was closer or even surpassed the US in oil imports, he said.China’s net crude oil imports were 5.40 million barrels a day in 2012, according to the General Administration of Customs.In the same period, US average oil imports were 7.41 million barrels a day, according to the US Energy Information Administration, but the US data also include imports of petroleum products.In December, US net oil imports dropped to 5.98 million barrels a day from 8.10 million in January, according to the EIA. China’s net imports of crude oil and petroleum products surpassed 6 million barrels a day in the same month.

Maintaining annual GDP growth between 7 and 8 percent is the best option for China’s development, a senior official said on Wednesday.Against this backdrop, lowering the GDP growth rate from 9.3 percent in 2011 to 7.8 percent in 2012 should be seen as a success rather than a setback, said Zhang Ping, minister of the National Development and Reform Commission, the leading economic policy body.China will target this growth rate not only in 2013 but probably in the foreseeable future, he said.In the Government Work Report to the National People’s Congress on Tuesday, Premier Wen Jiabao proposed setting the GDP growth target at 7.5 percent in 2013, and the inflation target, as measured by the consumer price index, at 3.5 percent.An engineered slowdown in GDP growth has a number of benefits as the economy enters a transition from being export driven to one with more focus on consumption, Zhang said.China has already seen the benefits of greater consumption as a hedge against declining exports due to the global slowdown, he said.New industries are being established and old ones are being upgraded, as urbanization continues and agriculture is modernized, the NDRC head said.

Korea 

President Park and PM Abe held a teleconference  on Wednesday and agreed to work together to thwart N. Korea’s  ambitions.

The BOK said the policy for foreign currency reserves should be viewed from a long-term perspective as it responded to questions on its recent 20 ton purchase: “We bought gold in a bid to diversify our portfolio and reduce the dependence on the U.S. dollar in our foreign currency reserves. It is not so important that gold prices have decreased in recent months.”

The Kospi finished down .81 %.

Australia and New Zealand

RBNZ Gov Wheeler established a committee to debate major policy affairs, broadening topics, increasing on the record speeches. BHP formally responded to allegations by China on iron ore price manipulations and denied they did per the Australian press. Australia’s trade balance doubled in January.

Economic Release Summary

(JP) BANK OF JAPAN (BOJ) LEAVES TARGET RATE RANGE UNCHANGED BETWEEN 0.0-0.1%, AS EXPECTED; Keeps asset purchase program at Y101T ; Upgrades economic assessment for 3rd consecutive meeting

(JP) JAPAN FEB OFFICIAL RESERVE ASSETS: $1.259T V $1.267T PRIOR
(JP) JAPAN FEB TOKYO AVERAGE OFFICE VACANCIES M/M: 8.6% V 8.6% PRIOR
(JP) JAPAN JAN PRELIMINARY COINCIDENT INDEX CI: 92.0 V 92.8E; LEADING INDEX CI: 96.3 V 96.1E
(AU) AUSTRALIA JAN TRADE BALANCE (A$): -1.06B V -500ME
(AU) AUSTRALIA FEB AIG PERFORMANCE OF CONSTRUCTION INDEX: 45.6 V 36.2 PRIOR (highest since Jul of 2010)
(TH) THAILAND FEB CONSUMER CONFIDENCE INDEX: 84.0 V 81.7 PRIOR

Equities

Country: Index Last Change % Chg
Asia Dow 3002.53 -11.21 -0.37
DJ Asia-Pacific TSM 1379.48 -4.59 -0.33
Australia: All Ordinaries* 5123.10 -7.80 -0.15
Australia: S&P/ASX* 5109.20 -7.60 -0.15
China: DJ CBN China 600* 21842.89 -263.08 -1.19
China: DJ Shanghai* 298.86 -3.59 -1.19
China: Shanghai Composite 2318.29 -28.89 -1.23
China: Shenzhen Composite 965.19 -14.00 -1.43
China: Shanghai 50 1897.06 -36.64 -1.89
Hong Kong: Hang Seng 22717.53 -60.31 -0.26
India: BSE Sensex 19239.88 -12.73 -0.07
India: S&P CNX Nifty 5810.55 -8.05 -0.14
Indonesia: JSX Index 4836.37 11.69 0.24
Indonesia: JSX BISNIS 27 421.35 0.18 0.04
Indonesia: JSX Islamic 661.29 0.17 0.03
Indonesia: JSX LQ-45 829.82 0.42 0.05
Indonesia: PEFINDO-25 509.08 1.03 0.20
Indonesia: SRI-KEHATI 263.92 0.14 0.05
Japan: DJ Japan TSM* 626.33 0.87 0.14
Japan: Nikkei 225* 11968.08 35.81 0.30
Japan: TOPIX Index* 1004.35 1.13 0.11
Malaysia: DJ Malaysia TSM 3085.27 -1.88 -0.06
Malaysia: FTSE Bursa Malaysia KLCI 1650.48 -1.36 -0.08
New Zealand: NZX 50* 4333.48 35.51 0.83
S. Korea: KOSPI* 2004.40 -16.34 -0.81
S. Korea: KOSPI 50* 1740.38 -17.85 -1.02
S. Korea: KOSPI 100* 2007.99 -19.29 -0.95
S. Korea: KOSPI 200 Composite* 264.78 -2.47 -0.92
Singapore: FTSE Straits Times 3291.43 -0.38 -0.01
Taiwan: TAIEX* 7960.51 10.21 0.13
Thailand: SET 1557.33 -2.02 -0.13

Commodities

Gold 1583.50 +8.60 +0.55%
Silver 28.975 +0.172 +0.60%
Copper 3.506 +0.001 +0.02%
Crude Oil 90.33 -0.10 -0.12%
Natural Gas 3.494 +0.015 +0.45%
US Cotton No.2 86.78 -0.55 -0.63%
US Coffee C 140.95 +0.42 +0.30%

 GLD: SPDR Gold Trust ETF daily holdings unchanged at 1,244.9 tons after 11 consecutive session of declines

FX

EUR/USD 1.2992 +0.0024 +0.19%
GBP/USD 1.5002 -0.0017 -0.12%
USD/JPY 93.94 -0.14 -0.15%
USD/CHF 0.9484 -0.0001 -0.02%
AUD/USD 1.0246 +0.0010 +0.10%
USD/CAD 1.0312 -0.0007 -0.07%
EUR/GBP 0.8660 +0.0023 +0.27%

Bonds

Japan 10yr 0.67+0.01, -1.58

U.S. 10yr 1.94+0.042.04%

CDS

Price Change %Change
AUT CDS 5-YR 41.635 0.135 0.33%
BEL CDS 5-YR 71.405 0.08 0.11%
 
DEN CDS 5Y 31.27 ; -0.23 -0.73%
DUBAI CDS 5Y 224.695 UNCH 0%
EGY CDS 5Y 631.635 UNCH 0%
FIN CDS 5YR 30.235 -0.265 -0.87%
FRANCE CDS 5YR 74.31 -0.19 -0.26%
GER CDS 5YR 36.91 0.41 1.12%
GRE CDS 5YR 3890.20 115.10 3.05%
HUN CDS 5YR 310.00 UNCH 0%
INA CDS 5-YR 134.28 0.78 0.58%
IRE CDS 5Y 162.50 1.44 0.89%
ITA CDS 5YR 272.00 -0.025 -0.01%
JPN CDS 5YR 62.00 -0.685 -1.09%
KOR CDS 5YR 63.15 -0.175 -0.28%
NED CDS 5YR 51.50 UNCH 0%
PAN CDS 5-YR 93.00 0.91 0.99%
POR CDS 5-YR 383.765 -1.98 -0.51%
SVK CDS 5YR 89.48 UNCH 0%
ESP CDS 5YR 267.03 0.405 0.15%
SWE CDS 5-YR 20.67 0.005 0.02%
SUI CDS 5Y 40.00 UNCH 0%
UK CDS 5Y 46.00 -0.15 -0.33%
US CDS 5Y 39.35 -0.65 -1.63%

 

-Brazil left rates unchanged (late USA)

-More good news for the USA

Texas poised to more than double daily oil production by 2020, says state petroleum regulator  http://bloom.bg/VGqBlQ

-Apache said to weigh sale of deep-water Gulf of Mexico assets

Too much money, too high of a risk of a Mossad sabotage.

-Dell interest picking up per BBN, as it solicits more bids

-Rep. Paul Ryan to release budget proposal next week that allegedly allegedly erases deficit  http://bloom.bg/Xr7OuI

What a joke. Did  this guy not recently lose an Election to someone. Remind me please.

-China likely to delay new investments in Venezuela’s energy industry after Chavez’s death. BBN

-The Bank of Korea added 20 metric tons in February, raising its gold reserves by 24 percent to 104.4 tons, it said in a statement today. Holdings rose about $1.03 billion by value to $4.79 billion at the end of last month, equivalent to 1.5 percent of total foreign exchange holdings, according to the statement. Prices advanced.Russia and Kazakhstan expanded bullion reserves for a fourth straight month in January and the World Gold Council expects central banks to remain strong buyers this year after increasing purchases in 2012 by the most in almost five decades. Banks from Goldman Sachs Group Inc. to Credit Suisse Group AG predict the metal’s 12-year bull market may be unwinding after five straight monthly losses. BBN

-Some good news for young babies

Arkansas to ban abortion at 12 weeks, earliest in nation

http://reut.rs/YYTLKM

-JPMorgan: No US-Style Housing Crash in China-CNBC

They would know since they helped engineer the last one at the Bilderbergs instructions.

-BOJ/BOE/ECB meetings

The Bank of Japan kept monetary policy on hold at its final policy board meeting under Gov. Masaaki Shirakawa, as expected, setting the stage for a change in leadership widely expected to adopt more aggressive easing measures.

BOE rate decision 12 GMT-,forecasts keep 0.5%  rate; asset purchases unchanged at £375b.

ECB 12:45 GMT ,  56/61 economists expect no change, per latest BBN poll,  IR at .75 %. ECB press conference seen as non-event.

————

Barclays Capital agrees with market consensus in expecting the ECB to keep policy unchanged at the March meeting. However, unlike the past 3 ECB policy decision meetings, Barclays doesn’t expect President Draghi’s press conference to lead to any large EUR/USD moves.In March, we think it unlikely that the press conference will provide any significant news regarding the political uncertainty in Italy, which is the key driver of the EUR currently. Neither do we expect any indications of a change in the policy outlook. Consequently, our base case is for the press conference to largely be a non-event, Barclays clarifies.Still, Barclays thinks that risks to the EUR are skewed to the downside following the press conference.”We expect President Draghi to reiterate that monetary policy is likely to remain accommodative. While this is unlikely to be news to the market, it limits the potential for EUR strength. Consequently, the risks to the EUR are skewed to the downside, in our opinion,” Barclays adds.

exfx news

“I expect the ECB to send a warning in Italy’s direction that there won’t be any softening of the conditions attached to the OMT. Draghi will reiterate the conditions agreed upon in September and imply that Italy shouldn’t turn to the ECB for help.”

Christian Schulz, senior economist at Berenberg Bank in London.

———————

-Jim Rickards ‏@JamesGRickards

#Holder won’t muss a hair on a banker’s head, but he’s OK with droning us in our beds

-Global ratings agency Moody’s on Thursday said India’s December quarter was likely the bottom of the economic cycle, and anticipate a steady acceleration in GDP growth in the coming year. The rating agency pushed India’s 2013 GDP forecast to 6.2% from 5.1%, and said that all the major headwinds were likely to turn into mild positives. The rating agency said that risks around the economy, particularly the fiscal and current account deficits, have begun to recede and the gains in financial markets has started reflecting the rising expectations around theeconomy as well as lower risk. Moody’s expects India’s headline inflation to drop to 6 per cent by year’s end, paving the way for an expected rate cut around mid-2013. Moody’s said that the Budget 2013-14 delivered the easiest and smallest cuts in the deficit, enough to free up funds to help the government’s 2014 electoral chances without fanning fiscal risk. Moody’s said the budget does nothing to fortify India’s long-term growth. But it does suggest that government consumption, which slowed sharply in the fourth quarter, will accelerate in 2013, lifting GDP growth.Moody’s forecast economic growth of around 7% from 2014, which is India’s new rate of trend growth. Economic Times of India

-As we allow more and more power to gravitate to the President, we run the risk of living under an imperial presidency.

Senator Rand Paul

-If we use an older 10Y off-the-run issue to filter out ‘benchmark’ and high/low coupon effects (Say, BTP Sep-2021), we note that its yield – at 5.25% – is now less than 50 bp above its all-time lows and over 25 bp off its recent highs (which followed the inconclusive Italian election results, recently).The market appears exceedingly sanguine about the fact that there is absolutely no clarity about on how Italy will be ruled at this critical juncture (and by who).We doubt that Draghi will be goaded into anything too blank-cheque-like regarding Italy, at today’s ECB press conference and remain quite sceptical about the sharp correction in risk premia, at current levels, notwithstanding that the Italian treasury is well funded at this point.

Crédit Agricole

-Portugal Rating Outlook Raised to Stable by S&P on Budget Plan

-Contact your Senator Demand they support Rand Paul’s position. He ended this filibuster after 13 hrs

A bloc of conservatives led by libertarian Sen. Rand Paul seized control of the Senate on Wednesday with an attack against what they called the danger of drone strikes against American citizens.

-Geopolitical Headliners

News-www.antiwar.com
Updated March 7, 2013 – 12:35 AM EST
Rand Paul Filibusters Senate Over Drone War
Sen. Durbin Objects to Vote Against Bombing Citizens on US Soil
Senate Wakes Up to War on Terror’s ‘Battlefield America’
Obama May Stretch 9/11 Law to Go After New al-Qaeda Offshoots
Naming the Dead: Five Stories of Drone War Victims
Attorney General Holder: We Can Kill Americans on US Soil
Pentagon Ran Torture Centers in Iraq
Syrian Jets and Rebels Strike in Iraq, 13 Killed Across Country
Report: Iraq Depleted Uranium Clean-Up to Cost At Least $30 Million
Over $8 Billion Spent Rebuilding Iraq Was Wasted Outright
Military To Withhold Key Data on Afghan War
Taliban Kill 17 Afghan Soldiers in Once-Quiet Region
UN’s Hans Blix: Iran Nuke Threat is Overhyped
US, Canadian Envoys Storm Out of IAEA After Iran Criticizes Israel
Syrian Rebels Capture 21 UN Troops Near Israel
Militants From Russia’s North Caucasus Flok to Join ‘Jihad’ in Syria
Arab League Authorizes Arms to Syrian Rebels
Egypt Court Cancels April Elections
UNICEF: Israel Abuses Palestinian Child Detainees
Sequestration: Navy Withdraws Ships From Drug War
Viewpoints
Killing Americans on US Soil: DOJ’s Evasive, Manipulative Letter by Conor Friedersdorf
Western Military Intervention in Syria Would Be a Disaster by John Wight
Obama’s Persecution of Bradley Manning  by Anthony Gregory
‘They All Looked Alike’ by Matthew Harwood
Innocent Iranians Off the Agenda in Almaty  by Reza Marashi & Trita Parsi
Obama Promised to Close Gitmo. Instead, He’s Made It Worse by Murtaza Hussain

-Hebrews 9 -27

 And as it is appointed unto men once to die, but after this the judgment

KJV

-Economic Calendar

Time Cur. Imp. Event Actual Forecast Previous
00:00   JPY     Leading Index 96.3 96.2 93.2
01:30   EUR     French Unemployment Rate 10.1% 10.3%
01:45   CHF     Unemployment Rate 3.1% 3.1%
Tentative   JPY     BoJ Press Conference
02:45   EUR     French Trade Balance -4.8B -5.3B
04:00   EUR     Italian PPI (MoM) 0.3% -0.2%
04:00   EUR     Italian PPI (YoY) 1.8% 1.8%
04:00   NOK     Norway Manufacturing Production (MoM) 0.30% 0.30%
04:00   CHF     SNB Chairman Thomas Jordan speaks
04:50   EUR     Spanish 10-Year Obligacion Auction 5.202%
04:50   EUR     Spanish 2-Year Bonos Auction 2.540%
04:50   EUR     Spanish 5-Year Bonos Auction 4.123%
05:00   EUR     French 10-Year OAT Auction 2.30%
05:00   EUR     French 15-Year OAT Auction 2.85%
05:00   EUR     French 5-Year BTAN Auction 1.12%
06:00   EUR     German Factory Orders (MoM) 0.5% 0.8%
07:00   BRL     Brazilian Industrial Production (YoY) 4.5% -3.6%
07:00   GBP     BOE QE Total 375B 375B
07:00   GBP     Interest Rate Decision 0.50% 0.50%
07:30   USD     Challenger Job Cuts (YoY) -24.4%
07:45   EUR     Interest Rate Decision 0.75% 0.75%
08:30   CAD     Building Permits (MoM) 5.0% -11.2%
08:30   CAD     Trade Balance -1.0B -0.9B
08:30   EUR     ECB Press Conference
08:30   USD     Continuing Jobless Claims 3,110K 3,074K
08:30   USD     Initial Jobless Claims 355K 344K
08:30   USD     Nonfarm Productivity (QoQ) -1.6% -2.0%
08:30   USD     Trade Balance -42.6B -38.5B
08:30   USD     Unit Labor Costs (QoQ) 4.3% 4.5%
09:00   MXN     Mexican CPI (YoY) 3.58% 3.25%
09:50   USD     Bloomberg Consumer Confidence -32.8
10:30   USD     Natural Gas Storage -134B -171B
12:00   USD     Chain Store Sales (YoY) 4.5%
15:00   USD     Consumer Credit 14.50B 14.59B
16:45   NZD     Manufacturing Sales (QoQ) 1.6%
18:50   JPY     Adjusted Current Account 0.11T 0.10T
18:50   JPY     Bank Lending (YoY) 1.3%
18:50   JPY     GDP (QoQ) 0.1% -0.1%
18:50   JPY     GDP Price Index (YoY) -0.6% -0.6%
Tentative   CNY     Chinese Trade Balance -8.80B 29.20B

Newslink

-USA productivity drops

http://www.bloomberg.com/news/2013-03-07/u-s-productivity-dropped-in-fourth-quarter-as-labor-costs-rose.html

-USA Trade Deficit Widens more than forecast

http://www.bloomberg.com/news/2013-03-07/trade-deficit-in-u-s-widens-more-than-forecast-on-oil-1-.html

-USA Jobless Claims fall to six week low

http://www.bloomberg.com/news/2013-03-07/jobless-claims-in-u-s-unexpectedly-decline-to-a-six-week-low.html

-Plosser becomes second Fed official to want to pare asset buys

http://www.reuters.com/article/2013/03/06/us-usa-fed-plosser-idUSBRE9251KN20130306

-SNB costs Euro peg rise 10 fold to $199 billion. 

http://www.bloomberg.com/news/2013-03-07/swiss-national-bank-profit-falls-on-exchange-rates-losses.html

-Bersani Clings to PM as allies predict Failure

http://www.bloomberg.com/news/2013-03-07/bersani-clings-to-premiership-goal-as-allies-predict-failure.html

-Berlusconi convicted of wire tapping today

http://www.bloomberg.com/news/2013-03-07/berlusconi-is-convicted-by-milan-court-in-wiretapping-trial.html

-MP Bankster kills himself or was murdered by the Banking mob

http://www.reuters.com/article/2013/03/07/us-montepaschi-death-idUSBRE9251KY20130307

-ECB Keeps rates unchanged as Italy roils so called recovery

http://www.bloomberg.com/news/2013-03-07/ecb-keeps-rates-unchanged-as-italy-turmoil-threatens-recovery.html

-Organic farming makes a big comeback for spuds.

http://www.capitalpress.com/content/JO-ColoradoGrower-030713?utm_source=twitterfeed&utm_medium=twitter

-Draghi ‘keeps faith in EU recovery’

http://www.bloomberg.com/news/2013-03-07/draghi-keeps-faith-in-gradual-recovery-as-ecb-trims-forecasts.html

-European Central Bank holds #eurozone interest rates at 0.75% http://bbc.in/16b9Emt

-Number of Americans who filed for unemployment benefits declined to a six-week low http://bloom.bg/YOVX5e

-Eurozone Downturn Accelerates Despite German Growth; Divergence to France Widest in 15 Y

http://www.24hgold.com/english/contributor.aspx?rss=true&article=4271321698G10020&redirect=false&contributor=Mish&utm_source=twitterfeed&utm_medium=twitter

-Chancellor Angela Merkel reaches out to ex-communist east in push for more competitive Germany  http://bloom.bg/ZgwNx8

-Maersk plans to add more vessels to its Singapore base

http://bloom.bg/13E0yPy

-Fed says modest growth fueled by housing (Beige book)  http://bloom.bg/VH7ZlA

-Ultra-rich members of China’s legislature swell 20% as President Xi Jinping vows to reduce wealth gap   http://bloom.bg/XX5FDp

-U.S. House votes to finance federal government through end of September, seeking to avoid shutdown http://bloom.bg/Xr8y2J

-China joining U.S. shale renaissance with $40 billion investment in fracking  http://bloom.bg/XMxTD4

-China likely to delay new investments in Venezuela’s energy industry after Chavez’s death  http://bloom.bg/Xrc3pT

-Draghi Confronts Italy Impact as ECB Seen Keeping Rates on Hold

http://www.bloomberg.com/news/2013-03-07/draghi-confronts-italy-impact-as-ecb-seen-keeping-rates-on-hold.html

–China-U.S. accord sets UN vote on North Korea sanctions http://bloom.bg/109HnIO

-BOJ rejects earlier open-ended asset buys as Shirakawa exits http://bloom.bg/VID3RZ

-GM to open fourth U.S. tech center, hire 1,000 people http://reut.rs/Yz8xbI

-Anxiety builds as Kenyans wait for presidential winner http://reut.rs/WvxNCr

-Britain’s Cameron says no turning back on deficit reduction plan http://reut.rs/WvyBaz

-BAC caught insider trading the options market

http://online.wsj.com/article/SB10001424127887324034804578344582961185860.html?mod=djemalertMARKET

-Mercedes CLA: So gut fährt sich der neue Baby-Benz http://on.welt.de/ZczAuM

-South Korea joins Russia, Kazakhstan in boosting gold holdings http://bloom.bg/ZdH00M

-Drought prompts Australia to turn to desalination, despite high infrastructure costshttp://bloom.bg/ZrtBQB

-Report: Obama did not discuss Rand Paul filibuster at dinner with GOP senators

http://washingtonexaminer.com/report-obama-did-not-discuss-rand-paul-filibuster-at-dinner-with-gop-senators/article/2523526?custom_click=rss#.UTgXsaFjShY.twitter

-Chinese anger over pollution becomes main cause of social unrest http://bloom.bg/109aPyE

-Toyota president Toyoda seeks exit from troubled reign in global revamp http://bloom.bg/XXo6bh

- Syrian Rebels in Golan Region Hold U.N. Peacekeeping Team-http://nyti.ms/ZeWkKJ

 

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