American Markets-Leading News

John Embry

Well worth reading. As we pointed out yesterday gold should have been up but sheer fear/manipulation and greed lead by the filthy English pigs and their kin on WS dropped it. No doubt the greasy Goldman Dracula Draghi was involved as well.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/14_Embry_-_This_is_One_of_the_Greatest_Statements_of_All-Time.html

Arrogant, Evil Greek Leaders Just Don’t Get It

Commie Pinkos!!!

 

 

Illegal immigrant a 20-year worker at NJ airport
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2012/05/14/national/a112740D21.DTL#ixzz1uxc9QIC3

U.S. Said to Start Criminal Probe of $2 Billion JPMorgan Loss

I see the JPM spokesperson just put his house up for sale. I don’t think that is coincidental. These probes are to coverup crimes, not bring the guilty to justice as it is a JUSTUS Anglosaxon-Hebrew mob investigating itself,  as again we saw with this London based theft. A righteous USA president would level all the Palaces in England and in London for what these people have done to the somnambulant American people.

The U.S. Department of Justice and the Federal Bureau of Investigation in New York have begun a criminal probe of JPMorgan Chase & Co. (JPM)’s $2 billion trading loss, a person familiar with the matter said.

The U.S. is looking into what if any criminal wrongdoing occurred in relation to the losses the bank reported last week, said the person, who declined to be identified because the matter isn’t public. The inquiry is in its most preliminary stage, the person said.

The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, which regulates derivatives trading, are also examining New York-based JPMorgan’s trading activities, according to people familiar with those probes.

JPMorgan Chief Executive Officer Jamie Dimon said on May 10 that the bank made “egregious” mistakes and that the losses of about $2 billion tied to synthetic credit securities were “self-inflicted.”

Joseph Evangelisti, a spokesman for the bank, didn’t immediately respond to an e-mail seeking comment.

Ellen Davis, a spokeswoman for Manhattan U.S. Attorney Preet Bharara, declined to comment. Robert Nardoza, a spokesman for U.S. Attorney Loretta Lynch in Brooklyn, where JPMorgan has some of its operations, didn’t return calls seeking comment.

The probe was reported earlier by the Wall Street Journal.

http://www.bloomberg.com/news/2012-05-15/u-s-said-to-start-probe-of-2-billion-jpmorgan-loss.html

International Demand for U.S. Assets Rises-TIC

This is a weak report, despite the obfuscation by the UST!

International demand for U.S. financial assets rose in March as investors continued to seek safety from the debt crisis in Europe.

Net buying of long-term equities, notes and bonds totaled $36.2 billion during the month, compared with net purchases of $10.1 billion in February, the Treasury Department said today in Washington. Economists surveyed by Bloomberg News projected net buying of $32.5 billion of long-term assets, according to the median estimate.

“The continued buoyancy in foreign demand for U.S. Treasuries is consistent with the preeminent safe-haven appeal of these securities to global investors,” Millan Mulraine, a senior U.S. strategist at TD Securities in New York, said. “We expect the souring in global risk sentiment in recent months, as concerns about the deteriorating European debt crisis and slowing global growth momentum intensifies, to continue to bolster foreign investors’ appetite for U.S. Treasury securities.”

The report showed that net foreign purchases of U.S. Treasuries totaled $20.5 billion in March, compared with net buying of $15.4 billion the month before.

U.S. assets maintained their attraction as the European debt crisis mounted on concerns that Greece may leave the euro area. Greece’s impasse over forming a government has raised the possibility of another election to be held as early as next month, threatening the implementation of austerity pledges under the international financial rescue plan.

Greek Elections

Greece will hold new elections after President Karolos Papoulias failed to broker creation of a government following an inconclusive May 6 vote, Evangelos Venizelos, the leader of the socialist Pasok party, said today.

Estimates of foreign purchases of long-term U.S. assets in March ranged from net buying of $25 billion to $75 billion, according to four economists surveyed by Bloomberg before the report.

China remained the biggest foreign owner of U.S. Treasuries in March after its holdings rose $14.7 billion to $1.17 trillion, according to the Treasury.

Hong Kong, counted separately from China, lowered its holdings of Treasuries by $3 billion to $138.8 billion, while Brazil increased its holdings by $9 billion to $237.4 billion in March.

International demand for U.S. Treasuries rose for an eighth straight month in March, as total foreign holdings of the securities reached $5.12 trillion.

Including short-term securities such as stock swaps, foreigners sold a net $49.9 billion in March, compared with net buying of $92.6 billion the previous month.

International Purchases

The Treasury Department’s data capture international purchases of government notes and bonds, stocks, corporate debt and securities issued by U.S. agencies.

The Treasury said in February it was shifting from a transaction-based survey to a custodial survey to keep track of foreigners’ holdings. As a result, month-to-month comparisons are not comparable.

“These data help provide a window into foreign ownership of U.S. securities, but they cannot attribute holdings of U.S. securities with complete accuracy,” Treasury said in a press release today. “It is difficult to draw precise conclusions from,” these data “about changes in the foreign holdings of U.S. financial assets by individual countries.

http://www.bloomberg.com/news/2012-05-15/international-demand-for-u-s-assets-rises.html

Taxpayers Fund $454,000 Pay for Collector Chasing Student Loans

Notice the two main thugs are a Hebrew and an Anglosaxon in this narrative. Vampires. Every weird headline I pick just about involves only these people. Sure every 20 th headline you get a gentile, but not often. I’m not going to cast moral stones at Mr. Mandelman, the Shylock without pointing out his even greedier boss, Mr. Boyle the WASP.

While I would like college to be free, I am not happy with the public school system at the University level at all as it embraces and actively promotes every evil thing from Central banking to LGBT studies to Eugenics to Secular Humanism, to literally down in Australia where you can get your PHD in being a Witch and the government has to provide witches positions in the religious studies department as professors. Religious studies another department like women’s studies that needs to be abolished.

These people think they will hound you to hell for money you don’t have but in hell it will be their turn for eternal torment for the sin of greed.

http://www.bloomberg.com/news/2012-05-15/taxpayers-fund-454-000-pay-for-collector-chasing-student-loans.html

Home Depot Forecasts Profit Trailing Analysts’ Estimates

In that sales are rising at 5 pc a year and cost are up at HD about 8 pc this year. I shop there a lot as they still carry a fair number of made in the USA products, versus the local HW dive, we know that the real economy is at best keeping even. HD is big with small to medium sized contractors as well as the retail crowd. No jobs, no house price recovery, no economic recovery, despite what the evil beat in the White House and his minions say!

Home Depot Inc. (HD), the largest U.S. home-improvement retailer, forecast that sales this year will slow from the first quarter because warm weather pulled forward purchases of plants and gardening equipment.

First-quarter revenue rose 5.9 percent to $17.8 billion, Atlanta-based Home Depot said today in a statement. That trailed analysts’ $18 billion average estimate. Sales this year will advance 4.6 percent, the company said…

http://www.bloomberg.com/news/2012-05-15/home-depot-sales-trail-estimates-on-restrained-spending.html

 

U.S. Stocks Swing Between Gains, Losses Amid Greece Woes

U.S. stocks swung between gains and losses, after the Standard & Poor’s 500 Index declined to the lowest level in three months, as Greece’s failure to form a government offset better-than-estimated economic reports.

Avon Products Inc. (AVP) tumbled 11 percent after Coty Inc. withdrew its $10.7 billion offer for the door-to-door cosmetics seller. Home Depot Inc. (HD), the largest U.S. home-improvement retailer, slid 1.9 percent after forecasting profit that was less than analysts forecast. Groupon Inc. (GRPN) rose 19 percent  as the largest daily-deal website reported profit that beat estimates.

The S&P 500 (SPX) lost 0.1 percent to 1,336.67 at 11:17 a.m. New York time, after declining 1.5 percent in the previous two days. The Dow Jones Industrial Average slipped 10.90 points, or 0.1 percent, to 12,684.45 today. Trading in S&P 500 companies was 1.9 percent above the 30-day average at this time of day.

“The politics in Greece is very frustrating for the market,” Alan Gayle, a senior strategist at RidgeWorth Capital Management in Richmond, Virginia, which oversees about $47 billion, said in a telephone interview. “While the overall economic data in the U.S. was mixed to positive, the risk related to Greece remains a concern on the minds of investors.”

Equities swung between gains and losses as investors weighed better-than-estimated reports on manufacturing in the New York region and confidence among U.S. homebuilders, while concern grew about Greece leaving the euro. Alexis Tsipras, Greek Syriza party leader, said he wants a left-wing government to emerge from new elections and that his refusal to join a pro- bailout unity government was done out of respect for Greeks.

Smaller Union

Pacific Investment Management Co., which manages the largest bond fund, doesn’t see the European currency union surviving in its present form. The most probable outcome is that the 17-nation euro area will evolve into a smaller union centered on France, Germany, Italy and Spain, and underpinned by much stronger coordination and financing, he said.

“The status quo is no longer an option for Europe over the three to five year horizon,” Pimco Chief Executive Officer Mohamed El-Erian wrote in a report outlining the Newport Beach, California-based company’s medium-term economic outlook.

Facebook Inc. (FB) raised the price range in its initial public offering, increasing the amount it is seeking in the record sale for an Internet company to as much as $12.8 billion.

The new range of $34 to $38 a share, announced in a regulatory filing today, is up from a previous range of $28 to $35. Facebook is seeking a valuation as high as $104.2 billion, based on the upper end of the new range.

Facebook Roadshow

Chief Executive Officer Mark Zuckerberg, in a roadshow to pitch the IPO to investors, may be winning over skeptics who initially balked at buying the shares, said Erik Gordon, a professor at the University of Michigan’s Ross School of Business.

“Raising the range would be the best signal of what the underwriters are hearing from their institutional buyers who have seen the roadshow,” Gordon said. “Despite the doubts, the buyers like what they’re hearing.”

At the upper end of the new range, Facebook would be valued at 26 times trailing 12-month sales, more than double Google Inc. (GOOG)’s valuation when the search-engine operator went public in 2004. The company was already in a position to surpass United Parcel Service Inc. (UPS) as the most valuable company in history to go public in the U.S., based on market capitalization, data compiled by Bloomberg and Dealogic show.

The S&P 500 took longer than usual to fall 5 percent from its peak this year, a sign that any further retreat in U.S. stocks will be “contained,” according to Sam Stovall of S&P.

Reaching Threshold

The benchmark gauge reached the threshold yesterday after spending 28 days without losing 5 percent from its April high. Since 1950, it has taken an average 19 days to fall 5 percent, based on a study by Stovall, S&P’s New York-based chief equity strategist.

Among those that took 28 days or longer to occur, only 25 percent eventually turned into corrections, or retreats of more than 10 percent, the data show. Stovall said in an e-mail that he views losses of less than 5 percent as “noise” and those of between 5 percent and 10 percent as pullbacks.

“The duration of this ‘noise’ likely indicates that the ultimate decline will be contained, unless new worries emerge or existing concerns become increasingly intensified in the coming weeks or months,” Stovall wrote yesterday. “The market will eventually bottom in a ‘pullback’ mode.”

http://www.bloomberg.com/news/2012-05-15/u-s-stock-futures-climb-on-german-growth-groupon-jumps.html

Manufacturing in New York Region Rises More Than Forecast

Manufacturing in the New York region expanded more than forecast in May as shipments surged and new orders improved.

The Federal Reserve Bank of New York’s general economic index increased to 17.1 this month from 6.6 in April. The median estimate in a survey of Bloomberg economists called for an increase to 9. Readings greater than zero signal expansion in the so-called Empire State Index, which covers New York, northern New Jersey and southern Connecticut. The last negative reading was in October.

Manufacturers in the U.S. are getting a boost as auto sales running at the fastest pace in four years lift demand for goods from glass and machinery to sound systems. The gain in the index is a sign that other manufacturing gauges may show improvement, said Millan Mulraine, a senior U.S. strategist at TD Securities in New York.

“The story is one of moving back towards trend not only in manufacturing but in the overall economy as well,” Mulraine said.

Other reports today showed that retail sales rose in April at the slowest pace of the year as unseasonably mild pulled consumers to stores the prior month, and consumer prices were unchanged.

The Standard & Poor’s 500 Index rose 0.1 percent to 1,339.56 at 9:39 a.m. in New York. Treasuries pared losses after Greek leaders meeting in Athens indicated that talks to form a government had failed and elections will be held, boosting demand for safe assets.

http://www.bloomberg.com/news/2012-05-15/manufacturing-in-new-york-region-rises-more-than-forecast.html

U.S. Consumer-Price Index Unchanged; Core Rate Climbs 0.2

A measure of the U.S. cost of living was unchanged in April, restrained by a drop in energy prices and supporting the view of some Federal Reserve policy makers that inflation will ease.

Last month’s consumer-price index matched the median forecast of economists surveyed by Bloomberg News and followed three straight gains that included a 0.3 percent rise in March, Labor Department data showed today in Washington. The so-called core measure, which excludes more volatile food and energy costs, rose 0.2 percent for a second month..

http://www.bloomberg.com/news/2012-05-15/u-s-consumer-price-index-unchanged-core-rate-climbs-0-2-.html

In Washington, Mixed Messages Over Tighter Rules for Wall St.

http://dealbook.nytimes.com/2012/05/14/in-washington-mixed-messages-over-tighter-rules-for-wall-st/

Redflags Ignored By Jamie Dimon&Company

In the years leading up to JPMorgan Chase’s $2 billion trading loss, risk managers and some senior investment bankers raised concerns that the bank was making increasingly large investments involving complex trades that were hard to understand. But even as the size of the bets climbed steadily, these former employees say, their concerns about the dangers were ignored or dismissed.

An increased appetite for such trades had the approval of the upper echelons of the bank, including Jamie Dimon, the chief executive, current and former employees said.

Initially, this led to sharply higher investing profits, but they said it also contributed to the bank’s lowering its guard.

“There was a lopsided situation, between really risky positions and relatively weaker risk managers,” said a former trader with the chief investment office, the JPMorgan unit that suffered the recent loss. The trader and other former employees spoke on the condition of anonymity because of the nature of the investigations into the trading losses.

Instead, the bank maintains that the losses were largely the fault of the chief investment office. Overall tolerance for risky trading did not increase, current executives said, just the scale of the office’s activities because of the bank’s acquisition of Washington Mutual in 2008 and its more risky credit portfolio.

Despite Mr. Dimon’s recent apologies about the losses, which will most likely be repeated on Tuesday as JPMorgan shareholders gather for the company’s annual meeting in Tampa, Fla., regulators will scrutinize risk management at the chief investment office.

Top investment bank executives raised concerns about the growing size and complexity of the bets held by the bank’s chief investment office as early as 2007, according to interviews with half a dozen current and former bank officials. Within the investment office, led by Ina Drew, who resigned on Monday, the bets were directed by the head of the Europe trading desk in London, Achilles Macris.

Mr. Macris, who is also expected to resign, failed to heed concerns as early as 2009 from the unit’s own internal risk officer, said current and former members of the chief investment office. Mr. Macris and Ms. Drew were not available for comment.

Under Mr. Dimon’s stewardship, JPMorgan Chase has long had a reputation for its strong risk-management abilities — indeed, it came through the 2008 financial crisis largely unscathed, unlike many big banks. For their part, senior bank officials on Monday disputed the assertions that the company weakened risk management in recent years while seeking higher trading profits.

Risk managers were largely sidelined by Mr. Macris, who had wide latitude and also had Ms. Drew’s support, with only modest interference from her. At one point, after concerns were raised about positions assembled by Bruno Iksil, now known as the London Whale, Mr. Macris brought in a risk officer with whom he had worked closely in the past.

Risk officers are empowered to halt trades deemed too dangerous, so the coziness of the arrangement generated talk in New York as well, according to the former trader within the chief investment office.

Several bankers said that risk controls were not sufficiently strengthened by Doug Braunstein, who took over as chief financial officer in 2010, another reason the bolder trades continued.

The bank disputes that Mr. Braunstein tolerated additional risk in any way, said Joe Evangelisti, a spokesman for the bank.

David Olson, who headed up credit trading for the chief investment office until December, said that in his trading “the management was very involved and the risk controls were very strong.”

Part of the breakdown in supervision, current executives said, was a fundamental disconnect between the chief investment office in London and the rest of the bank. Even within the chief investment office there were heightening concerns that the bets being made in London were incredibly complex and not fully understood by management in New York.

Despite these concerns, the scope of the chief investment’s offices trades widened sharply following the acquisition of Washington Mutual at the height of the financial crisis in 2008. Not only did the bank bring with it hundreds of billions more in assets, it also owned riskier securities that needed to be hedged against. As a result, the business’s investment securities portfolio rapidly grew, more than quadrupling to $356 billion in 2011, from $76.5 billion in 2007, company filing show.

Ms. Drew made presentations to the board about twice a year, one former executive recalled, “but it was just not talked about a lot,” he said.

What is more, said another senior former executive, Mr. Dimon had other fires to put out, and the chief investment office wasn’t a “problem child” for either top managers or the board of directors, despite its rapid expansion. Gigantic losses were piling up from bad mortgages, and new regulations were threatening the profitability of traditional banking, among other pressing matters.

All of these factors may explain why Mr. Dimon, an executive known for his ability to sense risk who also was familiar with the minutiae of his business, failed to heed the first alarm bells that were sounded in early April.

Sirens had gone off after a series of erratic trading sessions in late March resulted in big gains one day, followed by even bigger losses the next on the London trading desk of the bank’s chief investment office. Mr. Dimon was convinced by Ms. Drew and her team that the turbulence was “manageable,” executives said. Nor did anyone on the operating committee, of which Ms. Drew is a member, question her conclusion — in fact the full operating committee wasn’t told of the scope of the problem till early last week, just days before Mr. Dimon went public.

The alarm bells were silenced in early April, but days after first-quarter earnings were reported on April 13, the erratic trading pattern continued, except this time there were few gains to offset the losses, and the red ink was flowing faster by the day.

Mr. Dimon convened a second round of checks, which soon concluded there was a ticking time bomb, but by then it was too late, a situation made worse as traders actually increased their bets instead of shrinking them, resulting in a loss that now totals more than $2 billion and threatens a management team that until now could seemingly do no wrong.

The company has indicated publicly that the losses could eventually double, depending on market conditions.

On Monday, the bank replaced Ms. Drew with Matthew E. Zames and appointed a former chief financial officer, Mike Cavanagh, to head up the task of fixing what went wrong. One of the most respected senior executives at the bank, Mr. Cavanagh has been a loyal lieutenant of Mr. Dimon since before he took over JPMorgan Chase and has been discussed as a possible successor.

http://dealbook.nytimes.com/2012/05/14/warnings-said-to-go-unheeded-by-chase-bosses/?ref=business

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