Trading Now

Trading Now

Friday, October 16, 2009


*BAC reported a $1B credit loss. And C is not in any better shape. Futures are already getting pounded after all evening highs. Guess the 10,000 will be short lived. Meredith Whitney downgraded GS from BUY to NEUTRAL. That was your first clue. She is the new EF HUTTON of Wall Street people. Pay attention.

Asian markets slip while investors wait for more U.S. earnings
Most Asian markets ended down Friday as investors awaited more earnings reports from the U.S. Japan's Nikkei 225 slipped 0.2%, Australia's S&P/ASX 200 decreased 0.5% and South Korea's Kospi Composite dropped 1.1%. Hong Kong's Hang Seng Index shed 0.3%, and China's Shanghai Composite inched down 0.1%. Meanwhile, Taiwan's Taiex added 0.1%, and New Zealand's NZX 50 rose 0.5%. The Wall Street Journal (16 Oct.)

*I am waiting for the watered down version myself. Obama claims to be taking a tough stance now that the banks have managed to gorge themselves on free money and bond trading boo cooh profits. But wait till they screw him like after the inauguration and start a freefall to the downside in the stock market. That will slow down his wagon! Never trust bankers in Wolf's clothing. Told you say, and yes, I did want to say it. Ijiot!
House committee approves Obama's derivatives reform
The U.S. House Financial Services Committee voted in favor of the Obama administration's proposal to regulate the over-the-counter derivatives market. The bill would move derivatives trading onto exchanges but allow companies to buy derivatives over the counter to use as hedging instruments. The bill will get a floor vote in a month, while a Senate version is still under consideration in committee. Reuters (16 Oct.)

*no, really?
Charge-offs, delinquencies rise for credit card companies
High unemployment in the U.S. has led to rising charge-offs and delinquencies at credit card companies. The firms are reacting by limiting credit, raising the bar on lending standards and cutting back on loan portfolios. "The companies aren't out of the woods yet, but they are now better able to forecast credit trends, which are more in line with seasonal trends," said Scott Valentin, an analyst at FBR Capital Markets. The Wall Street Journal/Dow Jones Newswires (15 Oct.)

* I had to love this. Lets see, do american consumers no longer matter? Guess not. Since they don't have nay money what does it matter anyway?
Google, IBM, Intel earnings possibly signal start of U.S. recovery
There is a good chance the high-tech sector will lead the U.S. out of recession, economists said. Technology giants Google, IBM and Intel reported stronger third-quarter results than expected. Executives at Cisco Systems and Dell hinted that they also have good news for this earnings season. Google said it will start hiring and accelerate strategic acquisitions. "This will be a technology-led recovery," said Edward Yardeni, an economist and investment strategist. "And the improvement we're seeing from the technology companies suggests the recovery has legs." The New York Times (15 Oct.)

*trade wars and currency issues will put a dent in this rosy colored Paulson relationship. May6be he should rescind his citizenship and move to China, permanently!
U.S. criticizes China's "lack of flexibility" regarding yuan
The U.S. is concerned about China's continued accumulation of foreign exchange reserves and its "rigidity" regarding the yuan, the Treasury said in a report to Congress. While repeating its position that the yuan is undervalued, the Treasury avoided accusing China of manipulating its currency. Because of China's actions, there is a risk of "unwinding some of the progress in reducing imbalances," according to the report. Bloomberg (16 Oct.)

*so, China looking more and more like america eh?
Chinese regulator warns major banks about lending
Jiang Dingzhi, vice chairman of the China Banking Regulatory Commission, told executives at the country's major banks that they must ensure their capital ratios do not decline and their lending remains in control. "Banks should make efforts to keep their lending operations stable," Jiang said. "Big banks should continue to enhance their management of credit risk to ensure the stable operation of China's banking system." Reuters (16 Oct.)

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