STOCK MARKET WATCH, Friday 3 March

[ozymandius]

Friday March 3, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 1053 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1898 DAYS
WHERE'S OSAMA BIN-LADEN? 1598 DAYS
DAYS SINCE ENRON COLLAPSE = 1559
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 3
Other Arrests of Execs = 54


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




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON March 2, 2006

Dow... 11,025.51 -28.02 (-0.25%)
Nasdaq... 2,311.11 -3.53 (-0.15%)
S&P 500... 1,289.14 -2.10 (-0.16%)
30-Year Bond 4.62% +0.06 (+1.21%)
10-Yr Bond... 4.64% +0.05 (+1.07%)
Gold future... 570.40 +4.60 (+0.81%)






GOLD, EURO, YEN, Dollars and Loonie


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[EuroObserver]

1. Tokyo stocks slump as CPI's rise spurs fear on BOJ's policy shift

(Kyodo) Tokyo stocks ended Friday sharply lower as the market interpreted a higher-than-expected rise in Japan's core consumer price index in January as a signal of an imminent end to the Bank of Japan's ultra-loose monetary policy. The 225-issue Nikkei Stock Average dropped 246.42 points, or 1.55 percent, to 15,663.34, its lowest closing in about two weeks. The Tokyo Stock Price Index of all First Section issues on the Tokyo Stock Exchange fell 19.28 points, or 1.18 percent, to 1,612.96.

The government said early Friday that Japan's core nationwide consumer price index, excluding volatile perishables, rose 0.5 percent in January from a year earlier for the third straight monthly increase. The result was higher than the average market projection of a 0.4 percent rise, fueling concern the BOJ will ditch its five-year-old quantitative easing policy possibly at the central bank's policy meeting next week, brokers said.

Market players widely expect the BOJ to maintain the zero-interest-rate policy for the time being even after it abandons the quantitative easing policy. "With the increasing likelihood of an early end to the quantitative easing policy...the timing of scrapping the zero-interest-rate policy is also likely to be moved up," said Masatoshi Sato, senior strategist at Mizuho Investors Securities Co., citing concerns over effects of future rate hikes in Japan on foreign exchange rates.

The Tokyo stock market was also weighed down by overnight declines in U.S. shares and foreign investors' weak appetite for Japanese stocks as shown in foreign brokerages' pre-opening order placements, brokers said. Declining issues swamped advancing ones 1,269 to 345, with 82 shares ending unchanged.

By sector, real estate, construction, machinery and nonferrous metal issues were sold in particular. ...more...

Seoul shares fall 2.8 pct on Japan policy worries
SEOUL, March 3 (Reuters) - Seoul shares suffered their biggest fall in a month on Friday led by Samsung Electronics and other exporters on worries that an end to the ultra-easy policy by Japan's central bank would bolster the won currency and dent global investments. The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.83 percent to officially end at 1,328.95, its biggest one-day percentage fall since declining 2.98 percent on Feb. 3. Samsung Electronics Co. Ltd. (005930.KS: Quote, Profile, Research) fell 4.96 percent to 652,000 won.

[EuroObserver]

3. Europe Mostly flat open. Oils up. Talk of big bid for BT (British Telecom)

Swiss SMI down -0.46% at 7889.75 in Zurich 09:07:42 CET
Xetra Dax 30 opens down 0.1% at 5,776.20 in Frankfurt
CAC 40 opens flat at 5,008.71 in Paris
FTSE 100 opens up 0.1% at 5,841.2 in London

FTSE 100 lifted by BT and Cairn
(FT) London equities opened in positive territory on Friday as bid talk helped lift shares in BT Group and Cairn Energy. Cairn led the FTSE 100 gainers after Oil & Natural Gas Corp, India’s biggest exploration company, said it was looking into the possibility of buying Cairn’s assets in the country. The stock traded up 2.6 per cent at £20.13, closely followed by BP up 1.1 per cent to 642p and Royal Dutch Shell which rose 1 per cent to £18.45. The FTSE 100 was up 9.9 points, 0.2 per cent to 5,842.9 while the mid-cap FTSE 250 lost just 4 points to trade at 9,494.5.

European shares flat, BT climbs on bid report
FRANKFURT, March 3 (Reuters) - European shares traded flat on Friday with gains for British telecoms firm BT (BT.L: Quote, Profile, Research), on talk of a private equity buy-out, and energy stocks, buoyed by higher crude oil prices, offset by weakness in financials. Merger and acquisition activity remained in focus, dealers and analysts said, but credit rating institute Standard & Poor's (S&P) warned that growing use of debt to finance takeovers may erode credit quality.

The FTSEurofirst 300 index of leading European shares <.FTEU3> was up 0.1 percent at 1,344.67 points by 0829 GMT, having ended 0.9 percent weaker at 1,343.2 points, its lowest since Feb 17, on Thursday.

Shares fell after the European Central Bank hinted at fresh interest-rate hikes and raised its forecast for consumer price inflation after increasing rates by 25 basis points as expected. Banks were down 0.3 percent on the DJ Stoxx sector index <.SX7P> and insurance shares <.SXIP> also fell 0.3 percent. BT shares were 2.2 percent up at a two-week high after a report in the Times newspaper that several private equity groups were examining the British telecommunications company over a possible 20 billion pound bid. ...more... <-- expect to see Carlyle Group involved here, anyone?

[EuroObserver]

29. Nuclear deal boosts Indian shares

(This from yesterday):

(BBC) Indian shares jumped to record highs after a US agreement to share civilian nuclear technology and fuel. Bombay's benchmark Sensex index rose 0.6% to a record closing level of 10,627 after briefly passing 10,700. There were big gains across the index, particularly power generators and equipment firms like Bharat Heavy Electricals and Tata Power. Investors bought in to construction and energy firms in the hope that they will get work building nuclear power plants.
...

"The nuclear deal is encouraging, because it seems like the US agreed to it without India having to give up or give in too much," Rajesh Jain, chief executive of brokers Pranav Securities, told the BBC. "It is a confirmation of India as a global economic and political entity in the larger scheme of things and companies stand to benefit from it."

Nuclear energy is seen as a vital source of power for the country's rapidly growing industries. ...more...

[EuroObserver]

115. Europe closed rather negative, but for Brit telecoms gains (esp. Vodafone)

Swiss SMI closed down -0.13% at 7915.98
CAC 40 down 0.4 per cent at 4,989.2 in closing exchanges in Paris as pharmaceutical and financial stocks continue to fall
Xetra Dax 30 down 1.1% at 5,721,5 in closing exchanges in Frankfurt as banks continue to lose
FTSE 250 down 0.3% at 9,472.3 in closing exhanges in London as general financial stocks lose ground and the support services sector falls
FTSE Eurofirst 300 flat at 1,342.9 as London outperforms on continued bid talk, helping pan-Continental index stay out of negative territory
FTSE 100 closes up 0.4% at 5,858.5

***Vodafone tops FTSE 100 leaderboard on confirmation of potential sale of its Japanese unit to Softbank: shares in the mobile telecoms giant close up 8.5% at 112.4p
***BT Group closes up 6% at 217.1p on reports of potential bid interest from a consortium of venture capitalists

Some blurb (anyone else note the Reuters revamp all screwed up today?):

Europe stocks dip from 4-1/2 yr high; Reuters drops
LONDON, Feb 23 (Reuters) - European shares slid from a fresh 4-1/2 year high on Thursday as weaker food and media stocks offset gains by retailers, while a dip on Wall Street added to the negative tone.

Corporate earnings dominated, with Reuters Group (RTR.L: Quote, Profile, Research), Nestle (NESN.VX: Quote, Profile, Research) and Centrica (CNA.L: Quote, Profile, Research) among the biggest losers as their outlooks disappointed investors. However, Thomson (TMS.PA: Quote, Profile, Research) jumped as its core earnings beat forecasts.

The FTSEurofirst 300 index of leading European shares <.FTEU3> closed down 0.2 percent at 1,355.46 points, after earlier hitting 1,361.7, a 4-1/2 year high.

"The market expects 10 percent earnings growth for this year in Europe and I don't think it's excessive. The risk is low," said Guillaume Duchesne, equity strategist at Fortis Private Banking. "We are now at fair value."

Shares in Reuters, the news and information provider, fell 11.5 percent. Citigroup analysts said in a note to clients that the company's results were disappointing both in terms of numbers and outlook. Nestle dropped 3.3 percent after the company, the world's largest food group, said high oil prices and a volatile political environment could affect business in 2006. Also among notable blue-chip losers, Centrica fell 3.5 percent after posting a record annual profit but warning of tough year ahead. ...more..

London closes higher as bid talk protects upside
A fresh outbreak of broad-based bid speculation helped the FTSE 100 buck a bearish European trend on Friday. the blue-chip index ended the session 0.4 per cent higher at 5,858.7, boosted by gains for Vodafone as it confimed it was in talks about the potential sale of its troubled Japanese operations to Softbank. Shares in the mobile telecoms giant rose 8.5 per cent to 121.5p. Its fixed-line counterpart, BT Group, strode 6 per cent higher to 212.7p on press reports that a consortium of venture capitalist was preparing a bid for the group. India’s state-ownded Oil and Natural Gas Corpooration was reported to be interested in acquiring Cairn Energy’s assets in the region,sending the FTSE 100 constituent’s stock 1.9 per cent higher at 2002p. Renewed reports that a bid for BAA, the company behind London’s Heathrow Airport, was imminent helped its shares 3.5 per cent higher at 836p. ...more...

[EuroObserver]

123. Reuters' take: European shares end steady, Vodafone boosts telcos

LONDON, March 3 (Reuters) - European stocks closed flat on Friday in choppy trade as a revenue warning from Intel (INTC.O: Quote, Profile, Research) damaged technology stocks, while Vodafone (VOD.L: Quote, Profile, Research) rallied after saying it was in talks to sell its struggling Japanese business.

"I think it's a hugely positive signal. This will relieve some of the pressure on them to get out of the U.S.," said one Vodafone investor, who asked not to be identified.
...

Markets will next week focus on a clutch of earnings reports, while the monthly U.S. payrolls data will be eyed for hints on the outlook for interest rates.

The pan-European index closed near its lowest in two weeks, but is still up 5 percent so far this year on robust corporate earnings and a spate of mergers and acquisitions.

Global stocks were hit on Friday after Intel cut its first-quarter revenue forecast, citing weaker-than-expected demand and a dip in market share.

Chipmaker STMicroelectronics (STM.PA: Quote, Profile, Research) fell 1 percent, chip equipment maker ASML (ASML.AS: Quote, Profile, Research) lost 0.7 percent, and Philips (PHG.AS: Quote, Profile, Research) shed 1.6 percent.

"A lot of people, I guess, would just consider that this is more to do with a battle between AMD and Intel, but obviously it is going to have some sort of an effect on the tech sector," said Robert Sellar, head of North American equities at Aberdeen Asset Management in London.

...more...

[ozymandius]

2. WrapUp by Martin Goldberg

A CONSPIRACY OF PAPER

If one starts with the premise that gold is a measuring stick for actual wealth (i.e., true money) and examines its relationships with other key markets, one can make a strong case for worldwide debasement of paper currencies – in effect, “a conspiracy of paper.” The illusion of wealth resulting from such a conspiracy shouldn’t be mistaken for actual wealth.

I think the assumption that gold can be used as such a measuring stick for wealth is a good one. Since the supply of gold changes by only a negligible amount, its economic value is determined by demand only. Demand is based primarily on only two factors:

1. The value of paper currencies (varies according to monetary policy).
2. A “fear premium.”

-cut-

Today’s Market

Today’s article title came from the novel of the same name, a good read especially for those who find financial markets compelling. It takes place in early 17th century London.

It was business as usual in the stock market as typified by the Google analyst’s meeting. No surprise that they are getting ready to do more great stuff that only they can execute. The real action today was in the bond, real money, and commodity markets. The 10-year note referenced above is now at a key inflection point whereby continuance of the short term up trend in rates will alert the crowd to the conspiracy of paper. The resistance on the 10-year note rate has not been broken yet; but it appears that it is now in a position where resistance can be broken. In the spring of ’04, the resistance was broken, but this was done after little basing and the resistance level of 4.65% was then quickly reclaimed. But, I submit that this time it is different. The next few trading days and weeks will be critical for the bond market. If the bond market breaks, this will be the beginning of the end for the conspiracy of paper.

more...

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

[EuroObserver]

4. Japan CPI jumps, change in BOJ policy looms

TOKYO, March 3 (Reuters) - Japanese consumer prices rose for a third straight month and at a faster pace than expected in January, fanning speculation the Bank of Japan could scrap its unorthodox ultra-easy monetary policy as soon as next week.

Japan's core consumer price index (CPI), excluding fresh food prices, rose 0.5 percent from a year earlier, the biggest annual increase in nearly eight years and above the market's consensus forecast for a 0.4 percent gain, the data showed on Friday. The figures, which briefly pushed up bond yields to 19-month highs, could convince the BOJ to soon end its unprecedented "quantitative easing" policy of flooding the banking system with excess funds and pinning short-term interest rates near zero.

"With the data showing a 0.5 percent rise, the BOJ could take a step forward to shifting the policy without hesitation," said Susumi Kato, chief strategist at Calyon Securities. A Reuters poll of 31 market participants carried out after the release of the data showed 15 expected a change at the BOJ's March 8-9 meeting while 16 expected a change in April. Of the two meetings in April, 14 picked April 10-11 and two chose April 28. The result contrasted sharply with a Reuters-Jiji Press poll on Monday, which showed nearly two-thirds of 88 analysts surveyed expected a shift on April 28, while only three picked March.

...more...

[EuroObserver]

6. BOJ officials say rise in CPI within expectations

TOKYO, March 3 (Reuters) - A 0.5 percent rise in Japan's January core consumer price index (CPI) -- a key benchmark for monetary policy -- was within expectations, Bank of Japan sources told Reuters on Friday. The third straight month of year-on-year gains in the core CPI, excluding volatile fresh food prices, shown by government data on Friday bolstered speculation that the central bank could scrap its ultra-easy monetary policy as early as next week.
...

Another encouraging sign is that CPI excluding fresh food, medical services, rice, cigarettes, petroleum products, electricity charges and telephone charges -- dubbed by BOJ Deputy Governor Kazumasa Iwata the "core core CPI" -- probably rose by around 0.1 percent in January from a year earlier, BOJ sources said. "If this index turns positive, (consumer prices) will not easily fall again," a senior BOJ official said.

The more narrowly defined index that excludes factors such as utility prices and fuel costs is not an official yardstick for the BOJ in making policy decisions, but is seen as a useful indicator for gauging underlying price trends.

The government does not release the "core core CPI" in its official data, and the BOJ sources said they were making a final analysis by using Friday's consumer price data. ...a bit more...

Japan's PM sees end to deflation
(BBC) Japanese Prime Minister Junichiro Koizumi says he believes an end to deflation in Japan's troubled economy is finally in sight. "We are seeing signs of getting out of deflation," Mr Koizumi told a parliamentary committee on Friday.
...

Mr Koizumi latest comments are the most upbeat yet, as previously he had insisted that it was too soon to say whether Japan had recovered from deflation.
...

However, economic ministers have urged caution for fear that a premature move by the Bank of Japan could jeopardize the economy's recovery. Finance Minister Sadakazu Tanigaki said Japan was still experiencing "mild deflation", an opinion backed up by Economic and Fiscal Policy Minister Kaoru Yosano. ... not much more...

[EuroObserver]

7. Japan's household spending declines 4.7% in Jan.

(Kyodo) Spending by Japan's wage-earning households fell a real 4.7 percent in January from a year earlier to 323,863 yen for the first decrease in four months, the government said Friday. The average monthly income of salaried workers' households came to 434,252 yen, down 3.9 percent, the Ministry of Internal Affairs and Communications said in a preliminary report. Disposable income fell 4.0 percent to 367,666 yen for the seventh consecutive month of contraction.

The report said spending on education slumped 21.4 percent to 15,699 yen, while outlays for furniture and other household goods slid 11.1 percent to 9,231 yen, and spending on transportation and communications decreased 10.1 percent to 42,957 yen. Spending on clothing and footwear dropped 9.7 percent to 15,721 yen, outlays on medical services fell 8.1 percent to 10,908 yen, and spending on cultural and entertainment activities declined 7.5 percent to 29,107 yen.

In contrast, spending on housing maintenance gained 8.5 percent to 20,509 yen, while expenditures for utilities rose 8.0 percent to 28,154 yen.

Personal spending accounts for about 55 percent of Japan's gross domestic product. Wage-earning households make up about 60 percent of the nation's households. ...source...

<-- Try to get head around life/economics in deflation.

[EuroObserver]

11. Relatively dignified life of homeless in Japan: BBC photo essay

http://news.bbc.co.uk/1/shared/spl/hi/asia_pac/04/japans_homeless/html/1.stm

[AnneD]

47. Morning Marketeers,

:donut: If I didn't know better, I'd swear those photos were taken somewhere along the Gulf Coast....oh wait a sec, the trees are intact and you can actually see the ground. During the Great Depression, tent cities were called Hooverville. Let me be the first to say that new tent cities be christined...Bushville. EO, loved the link. Their approach to homelessness is really so.....Japanese. Forming an association etc, very typical. At least the have a positive outlook and a sense of hope. They are just broke not poor. Poor is a state of mind, broke is transitory. A good lesson for all. Thanks.


Happy Hunting and watch out for the bears.

[UpInArms]

50. Mornin' AnneD!

Also, the word "broke" implies that it can be fixed.

:hi:

[AnneD]

56. Exactly....

:hi:

[UpInArms]

52. BOJ to end ultra-easy policy next week - Jiji

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T142649Z_01_L03769173_RTRIDST_0_ECONOMY-JAPAN-POLICY.XML

TOKYO, March 3 (Reuters) - Senior Bank of Japan officials have decided to submit a proposal to end the central bank's super-loose monetary policy at next week's BOJ board meeting, Jiji Press news agency reported on Friday.

If such a proposal -- to end its so-called quantitative easing policy and revert to a more conventional monetary policy -- were presented at the March 8-9 meeting, most of the central bank's nine-member policy board would probably vote for it, Jiji said.

[UpInArms]

76. Yen drops as Japan's Govt says "not too fast"

http://www.forexnews.com/NA/default.asp?f=N20060303B.mgn

Yen weakness prevails in late afternoon Asian trade after speculation of a near-term shift in monetary policy was tempered by cautious remarks from Govt officials. Fin Min Tanigaki said Japan is still experiencing mild deflation despite the Feb 0.5% CPI rise showing its highest level in 8 years. The fact that the Fin minister said the government and the central bank must collaborate in fighting inflation suggests that govt officials will continue showing their hand in the voting of the BoJ policy board and influence the majority decision. We expect the Bank of Japan will vote to reduce liquidity at the March 8-9 meeting, but the next question will revolve around the extent of the liquidity reduction. Will the Bank reduce the amount of reserves from the current 30-35 trln yen range to 25-30 trn yen, or will it reduce it to a lower target? This, we believe will become the new topic of contention between the central bank’s doves and the hawks.

We also believe there could have been some yen selling intervention shortly after the CPI release, hence, the 100-pip rise in USDJPY. It would make sense for the central bank to counter any rapid yen appreciation as a result of its policy tightening so as to gain more allies into its policy shift.

(edited for title line formatting errors)

[ozymandius]

5. Today's Reports

9:50 AM Mich Sentiment-Rev. Feb
Briefing Forecast 87.4
Market Expects 87.5
Prior 87.4

10:00 AM ISM Services Feb
Briefing Forecast 59.0
Market Expects 58.0
Prior 56.8

[UpInArms]

60. Feb ISM Report

10:02 AM ET 3/3/06 U.S. FEB. ISM SERVICES PRICES 64.8% VS 67.2% IN JAN.

10:02 AM ET 3/3/06 U.S. FEB. ISM SERVICES EMPLOYMENT 58.2% VS 51.1% IN JAN.

10:00 AM ET 3/3/06 U.S. FEB. ISM SERVICES ABOVE CONSENSUS 58.2%

10:00 AM ET 3/3/06 U.S. FEB. ISM SERVICES 60.1% VS 56.8% IN JAN.

10:01 AM ET 3/3/06 U.S. FEB. ISM SERVICES NEW ORDERS 56.2% VS 56.0% IN JAN.

[UpInArms]

67. U.S. service growth climbs in February-survey

http://today.reuters.com/news/ArticleNews.aspx?type=bondsNews&storyid=URI:2006-03-03T150839Z_01_N03363340_RTRIDST_0_ECONOMY-SERVICES-URGENT.XML

NEW YORK, March 3 (Reuters) - The pace of growth in the U.S. service sector rose in February, bolstered by a rise in employment and new orders, according to a report on Friday.

The Institute for Supply Management's services index rose to 60.1 in February from 56.8 in January, well above Wall Street's median forecast for a rise to 58.0.

A number above 50 indicates growth in the sector.

The services sector makes up about 80 percent of U.S. economy activity, including businesses like restaurants, hotels, hair salons, banks and airlines.

The survey's prices-paid index fell to 64.8 from 67.2 in January, while the jobs component rose to 58.2 from 51.1, and new orders rose to 56.2 from 56.0.

[UpInArms]

61. UMich Feb. sentiment revised down to 86.7 vs 87.4: reports

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B1132D568%2DFBB3%2D4E35%2D93C3%2D38F3A24D711B%7D&dateid=38779%2E4103276852%2D862701867&siteid=mktw&dist=newsfinder

WASHINGTON (MarketWatch) -- Consumer sentiment weakened slightly in late February, according to media reports Friday of proprietary research from the University of Michigan. The UMich consumer sentiment index inched lower to 86.7 in late February from 87.4 earlier in the month. Economists were expecting the index to inch higher to 87.7. The index is still below the 91.2 level in January. The expectations index was revised up to 74.5 compared with the initial estimate of 74.4. The expectations index was 78.9 in January. The current conditions index was revised to 105.6 from 107.7. It stood at 110.3 in January.

9:49 AM ET 3/3/06 UMICH FEB. CURRENT CONDITIONS 105.6 VS. 110.3: REPORTS

9:49 AM ET 3/3/06 UMICH FEB. EXPECTATIONS 74.5 VS. 78.9: REPORTS

9:48 AM ET 3/3/06 UMICH FEB. SENTIMENT 86.7, BELOW 91.2 IN JAN.

9:47 AM ET 3/3/06 UMICH FEB. SENTIMENT REVISED DOWN TO 86.7 VS 87.4: REPORTS

[UpInArms]

65. U.S. consumer sentiment ends weaker in February

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T145203Z_01_N03341846_RTRIDST_0_ECONOMY-CONSUMERS-URGENT.XML

NEW YORK, March 3 (Reuters) - U.S. consumer sentiment finished weaker in February compared with January on worries about the economy, which could crimp future spending, a report showed on Friday.

The University of Michigan's final February index of consumer sentiment ended at 86.7, down from the preliminary February figure of 87.4 and January's final reading of 91.2, said sources who saw the subscription-only report.

The median forecast of Wall Street economists polled by Reuters was 88.0.

The survey's index of current conditions fell to 105.6 from 107.7 in early February and 110.3 at the end of January.

The gauge on consumer expectations ended at 74.5, flat from the preliminary February reading of 74.4 and lower than January's final reading of 78.9.

...more...

[cornermouse]

8. The cartoon says it all.

Unfortunately.

[ozymandius]

9. Oil Prices Climb Above $63 a Barrel

SINGAPORE - Oil prices rose Friday as tension in oil-rich Nigeria, Iran and Saudi Arabia fanned fresh supply fears.

-cut-

Despite data showing that U.S. commercial petroleum inventories remain well above average levels for this time of year, traders are concerned about threats to oil facilities from Nigerian militants, jitters over Iran's nuclear ambitions and worries about terrorist strikes on oil infrastructure in Saudi Arabia.

About 455,000 barrels a day of Nigerian crude — a fifth of the country's output — have been held back to global oil markets for almost two weeks after militant assaults on facilities and hostage-taking.

more...

[Roland99]

16. Make believe fears to keep gas over $2/gallon

EVERY time it dips below $2 something happens like this and it shoots back up to $2.39.

[EuroObserver]

20. Your end-user gasoline prices are much more volatile than in Europe, then.

Here (at least in the parts I'm familiar with), prices change (usually up, almost never down) only once every several months or so.

The inertia, I guess, comes from majors negotiating prices with governments; and of course the tax element involved in the price is very significant.

I probably should fill up today, so I'll try to remember to note down a list of my latest local prices...

[Roland99]

63. Oh, they used to fluctuate very little. But in the last 18 mos. or so...

they could go down $0.10 or jump up as much as $0.40 in a single day.

*And*, prices throughout town for the same company could vary as much as $0.20.

Ridiculous.

[EuroObserver]

86. Uff. The menu today at my local Repsol station (central Barcelona):

(Euros per litre)
Diesel e+ (low sulphur): 0.968
Diesel 10e+ (zero sulphur): 1.008
Gasoline unleaded 95 octane: 1.027
Gasoline unleaded 98 octane: 1.140

(So I make that, at $1.20 per euro and at 3.785 litres per US gallon):
Diesel e+ (low sulphur): $4.40
Diesel 10e+ (zero sulphur): $4.58
Gasoline unleaded 95 octane: $4.66
Gasoline unleaded 98 octane: $5.18

(No biodiesel or ethanol-gasoline mixes available at this station, though they are beginning to be available elsewhere, and tend to be a tad more expensive than the standard stuff).

[Roland99]

99. I wouldn't mind living in Europe. Hasselt, Belgium would be my 1st pick

I'd get a scooter, a bike, or take the train as much as I could. Maybe get a motorcycle. Get a cheap, small car for the cold/rainy days.


:)

[NickB79]

132. Why such high octane gasoline?

In the US regular is 87 octane, and premium is 91 octane.

[EuroObserver]

134. Better performance (read speed) and it's cleaner for the motor.

Things are mostly more reasonable further north, these days, (and much more policed) where roads are more crowded (and where I'm more out of touch, these days), but certainly in Southern Europe lots of people still drive like crazy - as I did myself when I was younger: I've cooled off a bit now (hence my interest in diesel for cruising (at 80-90mph on good clear highways) longer distances).

It's traditional, I guess. The death/injury toll is pretty bad in some parts...

[Zynx]

23. Prices should remain at an average of a little north of $60 for some time.

Given the uncertainties about supply and the still growing demand side of the equation, I would expect oil to remain quite firm. I wrote the following article on my blog about how oil service and oil driller stocks have been oversold with the decline in crude:

http://brazillion.blogspot.com/2006/03/oil-drillersservice-stocks-oversold.html

[UpInArms]

71. April Crude @ $63.10 bbl - April NatGas @ $6.68 mln btus

10:12 AM ET 3/3/06 APRIL CRUDE FALLS 26C TO $63.10/BRL IN EARLY NY TRADING

10:12 AM ET 3/3/06 APRIL NATURAL GAS DOWN 8C, OR 1.2%, AT $6.68/MLN BTUS

[UpInArms]

80. Iraqi authorities capture a Saudi purportedly involved in attack on oil fa

http://www.siouxcityjournal.com/articles/2006/03/03/news/national_world/b3377ac762fd1775862571260016d619.txt

BAGHDAD, Iraq (AP) -- Iraqi border guards captured a Saudi who admitted he was involved in the suicide attack on the Abqaiq oil facility in Saudi Arabia, an Iraqi military spokesman said Thursday.

Abdullah Salah al-Harbi was detained Tuesday by Iraq border guards in the desert along the border between the two countries, said Saadoun al-Jabiri, a spokesman for the Iraqi border guard force.

He quoted al-Harbi as saying five other Saudis crossed the border with him but disappeared in the Iraqi desert. Iraqi forces were searching for them, the border guard spokesman said.

Al-Jabiri quoted the Saudi as telling interrogators that "the last operation I took part in was last week's attack on oil facility in Abqaiq."

Al-Harbi also said he was wanted by Saudi authorities who had carried out raids around his home, al-Jabiri said.

The Feb. 24 attack at Abqaiq was the first assault on an oil facility in Saudi Arabia, which has been battling al-Qaida militants since 2003. Saudi Arabia is the birthplace of al-Qaida leader Osama bin Laden.

...more...

[UpInArms]

117. April Crude @ $63.45 bbl - April NatGas @ $6.75 mln btus

12:50 PM ET 3/3/06 APRIL CRUDE UP 9C AT $63.45/BRL AFTER $62.70 LOW

12:50 PM ET 3/3/06 APRIL NATURAL GAS FALLS 1C TO $6.75/MLN BTUS

[UpInArms]

145. April Crude closes @ $63.67 bbl - April NatGas @ $6.79 mln btus

3:02 PM ET 3/3/06 APRIL CRUDE CLOSES AT $63.67/BRL, UP 31C FOR THE DAY

3:02 PM ET 3/3/06 APRIL CRUDE ENDS THE WEEK WITH A GAIN OF 1.2%

3:02 PM ET 3/3/06 APRIL NATURAL GAS CLOSES AT $6.79/MLN BTUS, UP 3C ON THE DAY

3:02 PM ET 3/3/06 APRIL NATURAL GAS POSTS LOSS OF 7.2% FOR THE WEEK

[ozymandius]

10. 30-Year Mortgage Rates Fall for 2nd Week

WASHINGTON - Rates on 30-year mortgages edged down slightly this week, the second consecutive decline, according to a nationwide survey of rates.

Mortgage giant Freddie Mac reported Thursday that rates on 30-year, fixed-rate mortgages averaged 6.24 percent this week, down from 6.26 percent last week.

The 30-year mortgage declined for three straight weeks at the beginning of the year, then posted four straight increases, hitting a high for this year of 6.28 percent three weeks ago.

Analysts noted that all of the changes have been very small. They forecast that moves for the rest of the year were likely to be modest also as long as the Federal Reserve does not feel the need to push interest rates up more aggressively to fight inflation.

more...

[ozymandius]

12. Stocks seen opening mixed, data eyed

LONDON (Reuters) - Shares on Wall Street are expected to start mixed on Friday with the focus on economic data for clues on the outlook for interest rates.

No S&P 500 (^SPX - news) companies are due to report earnings.

Intel Corp. (Nasdaq:INTC - news) will be eyed after the New York Times reported the company will supply chip technology for a new portable media device, under development with Microsoft Corp. (Nasdaq:MSFT - news), which will be unveiled next week.

-cut-

Market participants are on the lookout for any hints on how much further the Federal Reserve will increase interest rates.

more...

[UpInArms]

45. Stock futures slide after Intel's revenue warning

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BAC4A419E%2D7D82%2D4530%2DAD30%2D6DEBA30795B9%7D&dateid=38779%2E3826090741%2D862696277&siteid=mktw&dist=newsfinder

NEW YORK (MarketWatch) -- U.S. stock futures took a dive after Intel lowered its first-quarter revenue forecast, citing weaker-than-anticipated demand and market share losses. The S&P 500 futures were down 7.00 at 1,284.60, Nasdaq 100 futures were 12.50 points lower at 1,687.00 and Dow industrials futures were slumping 65 points to 10,980. Prior to Intel's warning, S&P futures were down slightly at around 1,288, Nasdaq futures were around 1,692 and Dow futures were around 11,022. Intel's stock was last down 1.6%, or 32 cents, at $20.17 in Instinet pre-open trading.

[EuroObserver]

13. 'Bubble builds' in Russian market

(BBC) The Russian stock market's meteoric rise over the last year may have reached a ceiling and fears are growing that a financial bubble is forming.

With Moscow's benchmark RTS having risen 83% over the last year, the government now believes that prices are at dangerously unsustainable levels.

An huge influx of foreign pension funds and surging Russian oil revenues have driven the stock market's record rise. Growth in shares of energy firms has been a particular source of concern.

"We are very afraid that a so-called bubble is being created," said Russia's economy minister, German Gref. "We need to keep our finger on the pulse of key companies to be sure that investor optimism does not lead to a collapse." ...more, interesting...

[ozymandius]

14. Stock futures flat amid interest-rate worries

NEW YORK (Reuters) - U.S. stock index futures pointed to a flat market open on Friday, with data on the services sector and consumer sentiment on tap, as investors worried about the impact of rising global interest rates on equities.

-cut-

Financial stocks fell on Thursday amid fear that benchmark rates may rise further. The yield of the U.S. Treasury 10-year note climbed to a three-month high after the European Central Bank raised interest rates and its chief expressed concern about a pickup in inflation, suggesting more rate increases may be in store.

Expectations are also mounting for an interest-rate hike in Japan that could come as soon as next Thursday when the Bank of Japan next meets.

Rising rates could lure investors away from stocks and into other investments, like bonds, one trader said.

more...

[EuroObserver]

15. Copper seen attacking highs after corrections

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=urn:newsml:reuters.com:20060303:MTFH20447_2006-03-03_11-47-14_L03705926&pageNumber=0&imageid=&cap=&sz=13
LONDON, March 3 (Reuters) - Copper at the London Metal Exchange was ready to re-test its high of $5,100 a tonne as speculative money poured back in, traders said on Friday.

Technical factors spurred a return of speculative investors, but slightly later than anticipated. Traders had been spooked by an absence of buying on March 1 -- traditionally, on the first day of the month new money is handed to asset managers for allocation -- but were heartened when the money arrived later in the week. "Everyone thought the reallocated money would come in on March 1 and it didn't, but it did come in on the second and since then we've seen quite decent buying. That's been the pattern," a floor trader said.
...

As asset managers have become accustomed to the market expecting fresh tranches of capital on the first of the month, they have refined their strategy and, by delaying for a day and provoking a slight fall on this unmet expectation, been able to buy at lower numbers the next day, the trader said.
...

Copper stocks rose 2,600 tonnes on Friday to 120,975, their highest since June 2004, while aluminium stocks rose to 779,100 from below 500,000 in November 2005.

Analysts noted that forward spreads continued to tighten, reversing the previous trend while at the same time cash prices have eased.

Aluminium broke higher to $2,467/72, up $52 or 2.2 percent.

[EuroObserver]

17. Silver hits 22-year high on fund launch hopes

LONDON, March 3 (Reuters) - Silver spiked to its highest level in more than 22 years on Friday, boosted by hopes that a new investment instrument called an exchange-traded fund (ETF) will be approved and attract fresh money, dealers said.

Spot silver <XAG=> hit a new high of $10.27 an ounce after surging 5 percent in the previous session, while gold rose to its highest in nearly a month and traded just below a recent 25-year peak of $574.60 an ounce. Silver was quoted at $10.27/10.30 by 1030 GMT, compared with $10.18/10.21 in New York late on Thursday.

"Silver's recent rally appears to have been driven by intensifying speculation that the proposed ETF will soon gain approval from the SEC, although we have seen no indications on the possible timing," John Reade, precious metals analyst at UBS Investment Bank, said. "I suspect that the initial reaction to the positive news will see silver blast up a dollar or two dollars, and then I wouldn't be surprised to see some profit taking ahead of the actual launch," he added.

Investors have poured money into silver, used mainly in jewellery, photography and electronics, in anticipation the proposed fund would be approved by the U.S. Securities and Exchange Commission (SEC).

ETFs are designed to reflect closely the price of an underlying market or commodity, such as a stock index or gold, and they trade like listed stocks on any exchange.

...more...

[54anickel]

73. Peru leftist candidates eye windfall tax on miners

http://yahoo.reuters.com/news/articleinvesting.aspx?view=CN&symbol=NEM.N&storyid=265131%2002-Mar-2006%20RTRS

LIMA, Peru, March 2 (Reuters) - Mining companies operating in Peru, who are enjoying record profits on high metals prices, could face new taxes if a leftist candidate is elected in an April 9 vote, despite royalties on sales enforced last year.

Retired army commander Ollanta Humala and ex-President Alan Garcia, who are second and third in the polls respectively, aim to levy a windfall tax on companies that generate "excessive" profits, arguing that miners should give more back to Peru.


Mining is Peru's main economic engine, last year accounting for 55 percent of Peru's exports, or some $9.5 billion, and makes up 6 percent of the country's gross domestic product.

Peru is the world's No. 5 gold producing nation.

But rich mining companies, such as U.S.-based Newmont Mining (NEM.N: Quote, Profile, Research), operate in poor, often remote regions in Peru where schools and hospitals are scarce, generating resentment.

"We're seriously considering a windfall tax on miners because mining companies must share their wealth with this country," said Jorge del Castillo, secretary general of Garcia's American Popular Revolutionary Alliance (APRA) party.

more...

[UpInArms]

106. April Gold @ $568 oz - May Silver @ $10.14 oz

12:00 PM ET 3/3/06 APRIL GOLD FALLS $2.40 TO $568/OZ IN AFTERNOON DEALINGS

12:00 PM ET 3/3/06 MAY SILVER DOWN 6.8C AT $10.14/OZ AFTER 22-YR HIGH OF $10.31

[UpInArms]

131. April Gold closes @ $568 oz - May Silver @ $10.235 oz

1:53 PM ET 3/3/06 MAY SILVER CLOSES AT FRESH 22-YR HIGH OF $10.235/OZ, UP 2.7C

1:53 PM ET 3/3/06 MAY SILVER ENDS THE WEEK WITH A 4.2% GAIN

1:49 PM ET 3/3/06 APRIL GOLD FALLS $2.40 TO CLOSE AT $568/OZ

1:49 PM ET 3/3/06 APRIL GOLD CLOSES UP 1.2% FOR THE WEEK

[UpInArms]

18. daily dollar watch

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

Last trade 89.65 Change -0.03 (-0.03%)

Dollar Bulls Retreat As Majors Renew Their Assault

http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/7087_dollar_bulls_retreat_as_majors_renew_their.html

EUR/USD – Euro bulls launched another massive assault against the dollar longs with a move collapsing greenback offers around the psychologically important 1.2000 handle, a level defended by the 38.2 Fib of the 1.2588-1.1639 USD rally and is further reinforced by the 50-day SMA. As euro bulls continue with their advance, a move above 1.2057, a level marked by the 200-day SMA will most likely see the pair advance toward 1.2116, a level marked by the 50.0 Fib of the 1.2588-1.1639 USD rally. In case greenback longs fail to push back the advancing single currency traders, a further move to the upside will most likely see the pair extend its gains toward 1.2189, a level established by the January 31 daily high. Indicators are mixed with positive momentum indicator diverging from negative MACD below the zero line, while neutral oscillators give either side enough room to maneuver.

<snip>

USD/JPY – Japanese Yen longs remained in consolidation phase as the pair continued to tread in a sideways trading range with 50-day SMA at 116.69 confining upside momentum. In case Japanese yen bulls fail to take control of the price action, a move by the dollar longs will most likely see the USD/JPY head higher and make its way toward 117.38, a level established by the 23.6 Fib of the 104.16-121.46 USD rally, and with a confirmed break most likely targeting yen offers around 117.51, a level marked by the 20-day SMA. A further move on the part of the greenback longs will most likely see the pair head higher and wit ha move above the 118.00-119.00 zone target the yen offers around 119.36, a level defended by the February 3 daily high. A sustained momentum on the part of the greenback bulls will most likely see the dollar bulls push the pair toward the psychologically important 120.00 handle. Indicators are mixed with negative momentum indicator diverging from positive MACD above the zero line, while oversold Stochastic gives dollar longs a chance for a countermove.

...more...

[54anickel]

70. World’s Biggest Bank Calls for Economic Overhaul (Dollarization?)

http://www.thetrumpet.com/index.php?page=article&id=2061

The International Bank of Settlements is calling for a new global financial system to fix the world’s debt problems.

The world’s economic and monetary system is broken. Granted, this is not new news for regular Trumpet readers. What is new is that, in an abrupt change of stance, one of the world’s top banking authorities, the Bank for International Settlements (bis), now warns of a dangerously unbalanced world economy and is calling for an “overhaul of the current global economic system” (Telegraph, February 20).

Further, in another radical move, the bis has suggested that many of the world’s nations should abandon their currency and adopt one of a small number of formal currency blocks “based on the dollar, euro and renminbi or yen” (ibid.).

snip>

So just where are all these imbalances leading? To a huge crash—the biggest ever.

What is preventing a crash for now is the fact that demand for U.S. dollars is still strong because the dollar is the world’s reserve currency—a status now being challenged. Once that status deteriorates, then watch out!

more...



Global Banking: The Bank for International Settlements
http://www.augustreview.com/index.php?module=pagesetter&func=viewpub&tid=4&pid=8

snip>

BIS Ownership

According to James C. Baker, pro-BIS author of The Bank for International Settlements: Evolution and Evaluation, "The BIS was formed with funding by the central banks of six nations, Belgium, France, Germany, Italy, Japan, and the United Kingdom. In addition, three private international banks from the United States also assisted in financing the establishment of the BIS."7

Each nation's central bank subscribed to 16,000 shares. The U.S. central bank, the Federal Reserve, did not join the BIS, but the three U.S. banks that participated got 16,000 shares each. Thus, U.S. representation at the BIS was three times that of any other nation. Who were these private banks? Not surprisingly, they were J.P. Morgan & Company, First National Bank of New York and First National Bank of Chicago.

On January 8, 2001, an Extraordinary General Meeting of the BIS approved a proposal that restricted ownership of BIS shares to central banks. Some 13.7% of all shares were in private hands at that time, and the repurchase was accomplished with a cash outlay of $724,956,050. The price of $10,000 per share was over twice the book value of $4,850.

snip>

IMF Bailout for Brazil is Windfall to Banks, Disaster for US Taxpayers Says Sanders

BURLINGTON, VERMONT - August 15 - Congressman Bernard Sanders (I-VT), the Ranking Member of the International Monetary Policy and Trade Subcommittee, today called for an immediate Congressional investigation of the recent $30 billion International Monetary Fund (IMF) bailout of Brazil.

Sanders, who is strongly opposed to the bailout and considers it corporate welfare, wants Congress to find out why U.S. taxpayers are being asked to provide billions of dollars to Brazil and how much of this money will be funneled to U.S. banks such as Citigroup, FleetBoston and J.P. Morgan Chase. These banks have about $25.6 billion in outstanding loans to Brazilian borrowers. U.S. taxpayers currently fund the IMF through a $37 billion line of credit.

snip>

Regional and Global Currencies: SDR's, Euros and Ameros
There is no doubt that the BIS is moving the world toward regional currencies and ultimately, a global currency. The global currency could well be an evolution of the SDR (Special Drawing Rights), and may explain why the BIS recently adopted the SDR as its primary reserve currency.

more...:tinfoilhat:


Time for a new game plan....

[EuroObserver]

108. Jeez, a bit more of this and the PNACers will be pointing their, er,

'weapons' in Europe's direction :think:

[54anickel]

147. Ominous Warnings and Dire Predictions of World's Financial Experts, Part 1

http://www.resourceinvestor.com/pebble.asp?relid=17570

The article is a compilation of various quotes, too hard to cut and paste from. I've never been a fan of quotes taken out of context, but it's interesting to see them bunched up together like this.

SAN ANTONIO (Precious Metals Warrants) -- We have assembled some interesting comments from some of the leading economists, financial analysts, economic research firms and financial commentators and what they are saying about our current economic situation and what is most likely to unfold in the months and years ahead. This is a summary of the ominous warnings, dire predictions and perceived devastating consequences as they see it.

We trust you will find this a must read to more clearly understand and appreciate the financial state of the union, the impact it will likely have on various investments, and how better to allocate ones assets. Nobody has a crystal ball, but to just ignore the following warning signs and hope that everything will turn out okay would simply be foolish. Below is Part 1 of our 6 part series of articles.

more....

[UpInArms]

153. more from your link

1. Potential for a derivative crisis: “I would suspect there are potential disasters running into … the hundreds.”

2. Potential drop in asset prices: “This vast increase in the market value of asset claims is in part the indirect result of investors accepting lower compensation for risk. Such an increase in market value is too often viewed by market participants as structural and permanent. But what they perceive as newly abundant liquidity can readily disappear … history has not dealt kindly with the aftermath of protracted periods of low risk premiums.”

3. Housing bubble: “Nearer term, the housing boom will inevitably simmer down. As part of that process, house turnover will decline from currently historic levels, while home price increases will slow and prices could even decrease. As a consequence, home equity extraction will ease and with it some of the strength in personal consumption expenditures.”
4. Coming crisis in Social Security: “The imbalance in the federal budgetary situation, unless addressed soon, will pose serious long-term fiscal difficulties. Our demographics – especially the retirement of the baby-boom generation beginning in just a few years – mean that the ratio of workers to retirees will fall substantially. Without corrective action, this development will put substantial pressure on our ability in coming years to provide even minimal government services while maintaining entitlement benefits at their current level, without debilitating increases in tax rates. The longer we wait before addressing these imbalances, the more wrenching the fiscal adjustment ultimately will be.” “When you do the arithmetic of what the rising debt level implied by the deficits tells you and add interest costs to that ever-rising debt at ever-higher interest rates, the system becomes fiscally destabilizing. What you will end up with is a stagnant economic system.”

...more...

[EuroObserver]

156. Great material as always. Thanks 54anickel n/t

[Roland99]

159. Yowza! Amazing how a mere plebe like myself can see this coming

just as well as these financial giants.


But this administration keeps tooting the horn of a robust economy.

[UpInArms]

19. Analyst report spooked Enron execs - witness

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T005426Z_01_N02408487_RTRIDST_0_ENRON-TRIAL-PICTURE.XML

HOUSTON, March 2 (Reuters) - Enron Corp.'s top managers fretted over a damning 2001 analyst report, fearful that Wall Street had uncovered its accounting tricks, a former executive testified on Thursday at the trial of former CEOs Jeffrey Skilling and Ken Lay.

The witness, Kevin Hannon, said the report published in May 2001 by the Off Wall Street Consulting Group valued Enron at only half its value at the time and was discussed at a meeting of Enron's senior managers, including Lay and Skilling.

One top executive told the meeting the report was mostly valid in its criticisms, Hannon said.

"And what did Mr. Skilling say?" prosecutor Cliff Stricklin asked Hannon.

"He said 'They're onto us'," Hannon answered, which he took to mean "the investment community was starting to understand how Enron made money."

<snip>

The Off Wall Street Report was published on May 6, 2001, five months before Enron filed bankruptcy. It was one of the first to knock Enron. The report valued Enron's shares at about $27, half its then-market price in the $50s, and suggested the company was inflating its profits through dodgy accounting.

...more...

[UpInArms]

28. Enron dealing 'lacked integrity'

http://news.bbc.co.uk/2/hi/business/4761314.stm

Enron regularly used money from its reserves to manipulate profits, a former senior executive at the US energy firm has testified.

David Delainey told the trial of former Enron bosses Ken Lay and Jeffrey Skilling that hiding losses was "standard operating procedure".

"At Enron, we tended to be pretty fast and loose with its rules," he said.

Mr Lay and Mr Skilling deny they presided over a multi-billion dollar fraud at the Houston-based business.

<snip>

Mr Delainey said he told Mr Skilling, Enron's former chief executive, in 2001 that a proposal to subsume losses at its retail arm within its profitable wholesale business "lacked integrity".

"There was no business purpose to this other than to hide the loss and I knew that was not proper," Mr Delainey, the former head of Enron's wholesale trading business, told jurors.

...more...

[UpInArms]

21. Agrium: 1Q loss on gas derivatives could total $63M

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B11195E96%2D468E%2D457B%2D92F0%2DD3E55865C6E1%7D&dateid=38779%2E3239421644%2D862685530&siteid=mktw&dist=newsfinder

NEW YORK (MarketWatch) -- Agrium Inc. (AGU 25.00, -0.18, -0.7% ) said Friday it doesn't expect to qualify for hedge accounting on its gas derivative contracts for the first quarter. If this is the case, the company will have to recognize the change in value in all of its gas derivatives through 2010 in the first quarter, a development that it expects would result in a loss on gas derivatives of about $63 million in the period. Agrium said this loss would include a $48 million non-cash charge related to derivative positions that settle after March 31. The company also said it expects the spring fertilizer season in North America to begin "somewhat later than normal," which would move sales volumes into the second quarter from the first quarter. In addition, Agrium sees lower than expected international potash demand in the first quarter due to lower exports to China. The company estimates potash sales volumes in the first quarter will be 100,000 tons lower than year-ago levels. The stock closed Thursday at $25, down 18 cents.

[UpInArms]

22. Democratic Senators urge bigger fines for mines

http://www.usatoday.com/news/washington/2006-03-02-mine-investigation_x.htm?csp=34

WASHINGTON — Democratic senators told the nation's top mine-safety official Thursday that fines against coal mines are too small to prevent deadly safety hazards.

The senators said at a Capitol Hill hearing that the fines, usually a few hundred dollars, aren't hefty enough to make coal companies strictly follow safety regulations. The hearing comes amid concern over a rash of recent deaths in the nation's coal mines, including 12 at the Sago Mine in West Virginia on Jan. 2.

Sen. Jay Rockefeller of West Virginia said the overwhelming number of fines against Sago in 2004 and 2005 were for $60 or $247. "If fines are going to that predictable and that small, it's much easier for the company to pay the fine than fix the problem," Rockefeller said.

The miners at Sago died after a methane explosion. Another nine workers died this year in other unrelated mine accidents.

David Dye, acting chief of the U.S. Mine Safety and Health Administration (MSHA), defended the administration and said inspectors had closed unsafe sections of Sago 18 times in 2005.

...more...

[Zynx]

25. That's the problem with most regulatory fines.

They're always tiny. Even when they are hundreds of thousands of dollars, what does a multi-billion dollar a year company care?

[54anickel]

75. U.S. Is Reducing Safety Penalties for Mine Flaws

http://www.commondreams.org/headlines06/0302-01.htm

CRAIGSVILLE, West Virginia - In its drive to foster a more cooperative relationship with mining companies, the Bush administration has decreased major fines for safety violations since 2001, and in nearly half the cases, it has not collected the fines, according to a data analysis by The New York Times.

Federal records also show that in the last two years the federal mine safety agency has failed to hand over any delinquent cases to the Treasury Department for further collection efforts, as is supposed to occur after 180 days.

With the deaths of 24 miners in accidents in 2006, the enforcement record of the Mine Safety and Health Administration has come under sharp scrutiny, and the agency is likely to face tough questions about its performance at a Senate oversight hearing on Thursday.

"The Bush administration ushered in this desire to develop cooperative ties between regulators and the mining industry," said Tony Oppegard, a top official at the agency in the Clinton administration. "Safety has certainly suffered as a result."

more...

[UpInArms]

24. Bush defends India job outsourcing

http://today.reuters.com/news/articlenews.aspx?type=newsOne&storyid=2006-03-03T125457Z_01_SP250561_RTRUKOC_0_US-BUSH-INDIA.xml

HYDERABAD, India (Reuters) - President George W. Bush on Friday defended job outsourcing to India during a whistlestop tour of an Indian technology city as Muslims clashed with police in protests against his visit.

Bush's five-hour trip to the southern city of Hyderabad came a day after he sealed a landmark civilian atomic cooperation deal with New Delhi that recognizes India's status as a responsible nuclear power.

"People do lose jobs as a result of globalization. And it's painful for those who lose jobs," Bush told an entrepreneur during a discussion at Hyderabad's Indian School of Business.

The United States would counter it by educating people with the skills needed to be employed in jobs emerging in the 21st century rather than discouraging outsourcing, he said.

<snip>

"People in America should, I hope, maintain their confidence about the future," said Bush, whose job approval ratings have been tumbling in part because of concerns about the U.S. economy.

Outsourcing and software exports are forecast to earn India more than $20 billion in the fiscal year ending March, with about 60 percent of that coming from U.S. companies.

...more...

[54anickel]

125. Bush arrives in Pakistan to protests (Can't ya just feel the love?)

http://today.reuters.co.uk/news/newsArticle.aspx?type=worldNews&storyID=2006-03-03T172632Z_01_SP228656_RTRUKOC_0_UK-BUSH-PAKISTAN.xml

ISLAMABAD (Reuters) - A nationwide strike called by Islamist parties paralysed Pakistan on Friday hours before U.S. President George W. Bush arrived for talks in which he is expected to urge greater efforts against Islamist militants.

Bush flew in with his wife, Laura, aboard Air Force One to a military airbase near Islamabad from Pakistan's old rival India, where he called for the South Asian neighbours to settle their decades old dispute over the Kashmir region.

His visit a day after a suicide car bomber killed an American diplomat and two other people in the city of Karachi has angered Islamists opposed to the U.S.-led war on terrorism and President Pervez Musharraf's support for the campaign.

snip>

"I will meet with President Musharraf to discuss Pakistan's vital cooperation in the war on terror and our efforts to foster economic and political development so we can reduce the appeal of radical Islam," he said.

snip>

"I believe that a democratic, prosperous Pakistan will be a steadfast partner for America, a peaceful neighbour for India and a force for freedom and moderation in the Arab world."

A White House official later said Bush meant to say "Muslim world".

more...check out the related pics - especially the smaller one (click on it to get a good view). Damned librul media!

[EuroObserver]

127. Calls Pakistan an Arab country. Good move, junior, NOT.

on edit: What's with these racial/religious labels, anyway? Actually, I recently learned that the Muslim population of India is considered to be larger than that of Pakistan. After Indonesia, India has the largest Moslem population in the world. But I guess he would have called India a Hindu nation...

[AnneD]

138. Just like they call America...

a Christian nation....In our family we have Christian, Hindu and Jewish faiths represented under one roof. And if that isn't enough...try cooking a dinner that everyone will eat.

I don't know if this made the papers in Spain, but Bush was surprised that there were Blacks in Brazil. I think Daddy should ask for a refund from Jr's schools- GHW Bush was obviously over charged.:eyes:

[54anickel]

148. Heh-heh, if the crap they are about to try in Missouri catches on, we

will be a KKKristian nation :eyes: :grr: :banghead: :nuke: :crazy:


State bill proposes Christianity be Missouri’s official religion

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2143832

[EuroObserver]

149. Three (quick) points here:

* a dinner that everyone will eat: vegetarian, of course :)
* don't doubt for a minute that, just reading normal press, we hear all about it in Spain (almost...);
* as for Jr's schools: apart from other sources, I usually read Tom Wolfe's latests as soon as they come out (over here now, lots of people are raving about I am Charlotte Simmons): also, normally one learns just from life-experience, as time goes by (if you have a life)...

[AnneD]

168. Food and politics...

54anickel, I had the Missouri bill in mind when I posted :argh:

EO... We do eat a lot of veggies but I lived in the country too long to go without meat (but I won't eat a steak in front of hubby-the cow is really sacred) I tell folks that when it comes to food, I'm Bhuddist...what ever falls into the bowl. Hubby will occasionaly eat higher up the food chain as will my daughter (chicken, fish, and egg).

As far as Dubya's education, I am very sure he destroyed and enormous number of brain cell while doing cocaine and alchol. He's a few french fries short of a happy meal (or a couple of tacos shy of the blue plate special). I have notice some of his actions, etc that are very indicative of this past substance abuse (more than the swivel jaw). I also would not be surprised if he goes into some kind of dementia at a very early age.

[Roland99]

161. Probably thinks those Iranian moolahs are Arabs, too.

[UpInArms]

26. OT: Corrupt LA police officers charged with robbery

http://today.reuters.com/news/articlenews.aspx?type=domesticNews&storyid=2006-03-03T010114Z_01_N02321022_RTRUKOC_0_US-CRIME-CORRUPTION.xml

LOS ANGELES (Reuters) - Nineteen people, many of them former police officers or with police connections, have been charged with staging home robberies in Southern California to steal drugs, money and weapons, prosecutors said on Thursday.

The defendants are charged with committing more than 20 robberies and burglaries between 1999 and 2001 while posing as police officers, arriving in squad cars and wearing Los Angeles Police Department badges.

They handcuffed, threatened and assaulted their victims and in one case hit a man with a stun gun, prosecutors said. When the raids did not yield the anticipated drugs, prosecutors said, they stole any items of value, sold them and split the profits.

The Los Angeles U.S. Attorney's office said six defendants were indicted by a federal grand jury this week and the other 13 have been charged over the past 18 months with civil rights, narcotics and weapons violations.

The leader of the group was named as former LAPD officer Ruben Palomares, who was arrested with another member of the gang in San Diego in 2001 on cocaine trafficking charges.

...more...

[UpInArms]

27. Swiss Re's 2005 profit drops 41% because of Katrina, other disasters

http://www.cbc.ca/cp/business/060302/b030216.html

ZURICH (AP) - Swiss Reinsurance Co., the world's second-largest reinsurance company, said Thursday its net profit for 2005 dropped 41 per cent because of record claims from hurricane Katrina and other disasters.

The company earned 1.45 billion Swiss francs ($1.11 billion US) for the full year, compared with a profit of 2.48 billion francs in 2004. It faced claims of 3.1 billion francs ($2.37 billion) last year, it said in a statement.

Nonetheless, Swiss Re said it would increase its dividend 56 per cent to 2.5 francs ($1.91) a share.

Shares in Swiss Re dropped 3.9 per cent to 90.25 francs ($68.90) on the Zurich exchange.

"2005 has been a year of contrasts," said CEO Jacques Aigrain. "Swiss Re has benefited from its well-diversified business to absorb an unparalleled sequence of exceptionally large natural catastrophe events."

A recent Swiss Re study said the global insurance industry will have to pay out claims of around $83 billion for Katrina and hurricanes Wilma and Rita, which also focused much of their damage on the United States last year, and other natural and man-made disasters.

...more...

[UpInArms]

44. More storms may push some reinsurers under -Swiss Re

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T140804Z_01_L03183018_RTRIDST_0_FINANCIAL-SWISSRE.XML

LONDON, March 3 (Reuters) - Some reinsurers may go out of business if another string of major hurricanes this year leaves the industry nursing another huge claims bill as in 2005, Swiss Re's (RUKN.VX: Quote, Profile, Research) chief executive said on Friday.

"If we have an unlucky year, it could have dire consequences for smaller reinsurers," CEO Jacques Aigrain said at an industry meeting in London.

"Their desperate attempts in the January renewals to diversify (the risks they write to limit the financial hit from catastrophes) would have no effect on that," said Aigrain, whose company is the world's second largest reinsurer.

Last year's series of major storms, which buffeted the American coast, produced the costliest year on record for the insurance industry.

Swiss Re, which announced a 41 percent slump in annual profit on Thursday due to huge storm claims, is expecting that the 2006 hurricane season, like last year, will see a higher-than-normal number of severe storms, Aigrain said.

But if the industry escapes this year relatively unscathed by hurricanes it could prosper, he said. "We could have a lucky year and we could all make money like bandits. But we would all know that it was sheer luck."

When asked about future consolidation in the industry, Aigrain said some of the smaller Bermudan insurers "had no right to exist .... They have no franchise and no resilience and when the wind blows they tend to go with the wind.

...more...

[UpInArms]

30. Ohio Steel Plant Locks Out 2,700 Steel Workers

http://www.nytimes.com/2006/03/02/national/02steel.html?ex=1142053200&en=8971a898ce87e79c&ei=5099&partner=TOPIXNEWS

MIDDLETOWN, Ohio, March 1 (AP) —AK Steel Holding locked out nearly 2,700 union employees on Wednesday here and operated with exempt and replacement workers.

The two sides said they wanted to negotiate a new contract to replace the one that expired at midnight Tuesday, but the company said the union had to accept that the company needed to cut labor costs to survive.

Union members, picketing outside plant gates, said that they had made sacrifices and that the company had been antagonistic by bringing in replacement workers.

"We are operating in a manner that we unfortunately must do, under the circumstances," a company spokesman, Alan McCoy, said. Mr. McCoy would not comment on the replacement workers. He said the plant had a stockpile of steel. The union, whose members had voted overwhelmingly to authorize a strike, said it had proposed to keep working under the old contract.

...short blurb...

[UpInArms]

72. US Steel in talks to buy AK Steel: paper

http://today.reuters.com/news/articleinvesting.aspx?type=hotStocksNews&storyID=2006-03-03T150310Z_01_N03359602_RTRUKOC_0_US-MINERALS-AKSTEEL-USSTEEL.xml

NEW YORK (Reuters) - U.S. Steel Corp. (X.N: Quote, Profile, Research) is in talks to acquire AK Steel Corp. (AKS.N: Quote, Profile, Research) in a stock transaction that would potentially create the world's sixth-largest steel producer, the Pittsburgh Post-Gazette reported on Friday.

Shares in AK Steel, a frequent subject of takeover speculation, were up nearly 22 percent in morning trading, while U.S. Steel shares reversed early losses and were more than 1 percent higher.

Citing documents obtained by the paper, the Post-Gazette said U.S. Steel directors were told on Tuesday that AK Steel had been presented a preliminary price based on a stock transaction. It was not clear what that price was.

However, the paper said U.S. Steel has also indicated it would be flexible about using a mix of stock and cash.

An AK Steel spokesman declined to comment on the report. A U.S. Steel spokesman was not immediately available to comment.

Any deal would be expected to close around the end of October, the paper said.

The deal would be the latest in a rapidly-expanding consolidation of the global steel industry, led by top producer Mittal Steel (MT.N: Quote, Profile, Research), which is making a $23 billion hostile bid for industry No. 2 producer Arcelor (CELR.PA: Quote, Profile, Research).

...more...

[UpInArms]

31. Fed Reserve ends oversight of CivitasBankgroup

http://www.tennessean.com/apps/pbcs.dll/article?AID=/20060303/BUSINESS01/603030382/1436/BUSINESS

The Federal Reserve Bank has ended supervision of Civitas BankGroup, probably signaling that it's satisfied with improvements in the bank's lending standards and management over the past year.

Under a "formal written agreement," Franklin-based Civitas was required to strengthen its board, management and overall organization and improve loan-making policies. Such pacts are reached when regulators find problems after examining a bank.

The Fed's decision to lift the agreement reflects an improved loan picture in the wake of Civitas' move last year to sell three West Tennessee banking units it owned that were saddled with problem loans.

The company also installed a new operating system, said Richard Herrington, chief executive with Civitas. "Now, we're a strong, healthy bank."

Sanctions in the Civitas case were less severe than a cease-and-desist order, which essentially would have required regulators to take control of the bank.

...more...

[UpInArms]

32. Gulf Coast Banks Urged to Be Generous by *Co Mal-Administration

http://www.chron.com/disp/story.mpl/ap/business/3697468.html

NEW ORLEANS — The Bush administration's Gulf Coast recovery chief urged bankers Thursday to be "risky" and to open their accounts to help jump-start rebuilding of the hurricane-ravaged region.

"The American public knows that the banking sector has had record profits for the last four years," said Donald Powell, the coordinator of federal efforts for the area. "It's an opportunity to be generous."

Powell, the former chairman of the Federal Deposit Insurance Corp., said banks constitute the "heart and soul" of societies and play a critical role in the Gulf Coast during the current economic turmoil.

"Be innovative and take risks," he told conferees. He said extending credit is essential to spark infrastructure renewal.

As they did to other institutions, hurricanes Katrina and Rita dealt mighty blows to the Gulf Coast's banks, conferees said.

In Louisiana, safe boxes at Hibernia National Bank in downtown New Orleans got flooded. Bank branches were ripped apart, bank records were scattered and cash in ATM machines spilled into the streets.

...more...

[UpInArms]

33. NYSE Set for Radical Change

http://abcnews.go.com/Business/wireStory?id=1671792&CMP=OTC-RSSFeeds0312&business=true

NEW YORK Feb 28, 2006 (AP)— The New York Stock Exchange is about to undergo a radical transformation after 213 years as an independent, not-for-profit business, the NYSE will become a publicly traded company that must answer to a new set of owners: its shareholders.

The Securities and Exchange Commission's approval Monday of the Big Board's acquisition of electronic exchange Archipelago Holdings Inc., was one of the last requirements the NYSE had to meet before becoming a for-profit company. The deal, expected to close March 7, will mean a massive shift in the way business is done at the exchange, which has always had an air of exclusivity and collegiality much like a country club where the sport is making money, not golf.

The NYSE's attitudes toward its former owners the seat holders, or members of the exchange must necessarily change from pleasing them to appeasing its shareholders, who will demand more profits from the Big Board.

To do that, the new NYSE Group Inc. will likely start trading more than just stocks, given Archipelago's expertise in trading equity options. It will look to acquire other markets and exchanges, both domestically and abroad. And in some ways, it may look at its former owners and the floor community as less of a family and more of a commodity.

"So many things change for the NYSE when it goes public, and certainly one of those things is the relationship with the floor," said Richard Herr, an analyst with Keefe, Bruyette & Woods. "And they're going to look at the floor as a profit center."

...more...

[UpInArms]

35. NYSE seeks major bond trading expansion: WSJ

http://today.reuters.com/news/articlebusiness.aspx?type=ousiv&storyid=2006-03-03T102627Z_01_N03462550_RTRIDST_0_BUSINESSPRO-FINANCIAL-NYSE-BONDS-DC.XML&imageid=&cap=

NEW YORK (Reuters) - The New York Stock Exchange is seeking a major expansion of the number of bonds traded on its exchange as it transforms into a public company with the purchase of electronic trading group Archipelago Holdings Inc (AX.P: Quote, Profile, Research), the Wall Street Journal reported on Friday.

The NYSE has requested that the U.S. Securities and Exchange Commission allow it to trade any bonds issued by the nearly 2,800 companies whose shares are listed on its exchange and expects to receive a green light by the end of the second quarter, the Journal reported, citing exchange officials.

That would make more than 5,000 bonds tradable on the NYSE, compared with less than 1,000 currently listed, the report said.

The move for a larger share of the bond market comes as the NYSE prepares to close on March 7 its purchase of Archipelago. The expanded bond trading would be carried out on new technology provided by Archipelago, the report said.

...more...

[loudsue]

41. This sounds like it's going to be a huge culture shift.

I wonder how that's going to pay off?

Something about it doesn't sound quite right, but I can't put my finger on it. We need more info on this.

:donut: G'mornin, Marketeers! :hi:

:kick:

[AnneD]

55. loudsue...what cultural shift ....

do you anticipate? What bugs you? Inquiring minds want to know.....:hi:


Ozy:hi: Master of the thread, Keeper of the fiduciary Katra. Have a good day...

[loudsue]

173. Hi AnneD! Well, what bothers me, is ....mostly

that they're suddenly "privatizing" the NYSE. And, with all the corruption that corporations are allowed in this country, anyway, and with all the $$ going through there all the time, we've already had some major crimes being committed.

And now, it looks like the culture on the trading floor is going to change (according to the article above), and I'm just curious who's going to be answering to whom?

Eliot Spitzer has been the O8) angel for decency that has brought many of these market criminals to heal. But Spitzer is running for governor, and I'm worried that the next Atty. General of NY won't be as relentless on crime in the markets.

:cry: It all just looks like it's going to hell in a handbasket, but I don't know all the reasons why! Intuition, I guess. :cry:

[EuroObserver]

176. That reminds me of this, loudsue (London, but all the same...):

Insider fraud is rising problem for banks
Fri Mar 3, 2006 2:00 PM GMT
http://today.reuters.co.uk/news/newsArticle.aspx?type=personalFinanceNews&storyID=2006-03-03T140009Z_01_NOA348555_RTRUKOC_0_FINANCIAL-BRITAIN-BANKS-FRAUD.xml

By Madeline Thomas

LONDON (Reuters) - Bank staff pressured by criminal gangs to commit large-scale fraud against customers pose a rising problem for banks and building societies, the industry said on Friday.

Two and a half years ago, comedian Harry Hill had 279,000 pounds stolen from his Halifax bank account by a bank employee who said she and her family had been threatened if she did not cooperate with the criminal who approached her.

Now a number of Britain's leading banks and building societies say this type of crime is on the increase.

"We are aware of increased instances of staff being approached and intimidated," British Bankers' Association spokesman Brian Capon told Reuters.

The Financial Services Authority published a survey this week saying insider fraud was one of the most serious threats faced by large financial groups in Britain.

"The most common example offered by firms was incidents of staff being approached outside work and offered money to sell confidential information," the report said.

Britannia building society spokeswoman Emma Taynton-Young said not only were gangs trying to target bank staff in this way, but they were also trying to place gang members as bank workers in order to commit fraud.

"This is increasingly a major concern for banks and building societies," she said. "We've always had really tight vetting procedures but we do have to be extra vigilant."

...more...

[ozymandius]

34. Not going to be around much today.

I will be nowhere near a computer for the whole trading day.

Have a great day at the Casino.

Ozy :hi:

[UpInArms]

37. Have a great day, Ozy!

:hi:

[loudsue]

42. Have a good one, Ozy!

We'll miss U!!

:kick:

[UpInArms]

36. Ohio: Judge Orders Destruction of 4.3M Eggs

http://www.forbes.com/business/feeds/ap/2006/03/02/ap2564091.html

A judge ordered the destruction of 4.3 million eggs that state agriculture officials deemed unfit to eat because they were stored at room temperature at one of the nation's largest egg farms.

Judge Thomas Marcelain of Licking County Common Pleas Court issued the ruling Tuesday, six days after ordering Ohio Fresh Eggs not to sell the eggs. He also ordered Ohio Fresh Eggs to follow all Ohio Department of Agriculture regulations.

State law requires eggs to be stored under refrigeration in a controlled environment below 45 degrees.

Ohio Fresh Eggs spokesman Harry Palmer said the company would destroy the eggs under agriculture department supervision once it finds a suitable landfill.

...more...

[54anickel]

57. Now wait a minute. What's the REST of the story?

In September, state agriculture Director Fred Dailey sought to revoke Ohio Fresh Eggs' operating permits, alleging it provided false information on its applications. The company has denied the allegation. A hearing is scheduled for June 6.

What false info? What other regulations did they ignore? Seems to me this judge gave them a slap on the wrist and a do-over. "Shame on you, now toss them eggs and promise to be good and follow regulations from now on, okay?"

That's one heck of an omelet! Hope they bury them deep - ewwwww, the smell of rotten eggs! That'll attract every scavenger critter for miles.

[UpInArms]

38. 595 Hecht's workers given layoff notices

http://washingtontimes.com/business/20060302-103534-9604r.htm

Nearly 600 corporate Hecht's employees will lose their jobs in May, as Federated Department Stores, which bought the local chain in August, moves administrative jobs to New York.

Federated, which also owns Macy's department stores, plans to lay off 595 employees, including 259 persons in clerical positions, 126 merchandise buyers and assistant buyers, and five senior vice presidents, among others, at the Hecht's Arlington corporate headquarters, according to the company and a notice filed with the Virginia Employment Commission, which is required under federal labor law.

Hecht's parent company, May Department Stores, was purchased by Federated in August for $11 billion. Part of Federated's plan for the May stores is to close its regional chains, including Hecht's, Filene's and Famous-Barr, and turn them into Macy's stores.

Federated, a Cincinnati department store chain, said in September that 1,033 jobs at the Arlington facility would be eliminated, along with 5,200 corporate jobs in Boston, Houston and Los Angeles, saving the company $175 million this year and $450 million next year.

...more...

[UpInArms]

39. Saturn idles 400 workers for 2 months

http://www.ashlandcitytimes.com/apps/pbcs.dll/article?AID=/20060303/BUSINESS01/603030398/1291/MTCN01

Cash-strapped General Motors Corp. has temporarily laid off 400 production workers at its Spring Hill assembly plant until early next month to save money, the first large layoff since the plant began making Saturn vehicles 16 years ago.

The move is a major change for a plant that for most of its life had a no-layoff union contract. It will save the giant automaker an estimated 30% of the cost of the employees' salaries during the eight-week layoff, which began Feb. 13.

All of the affected workers were in the plant's "jobs bank," a special program designed to ease the sting of production cutbacks at GM plants. While in the jobs bank, employees were assigned to a variety of fill-in jobs, including doing community service work or plugging short-term vacancies on the production line.

Production has fallen at the plant since GM eliminated one shift on a line that makes the Ion, Saturn's small car, two summers ago.

GM has said it will shut down the Ion line altogether at the end of the year, but that didn't play a role in the 400 layoffs, GM spokesman Dan Flores said yesterday.

...more...

[UpInArms]

40. Treasurys post small losses in early trade

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B9860C4CB%2DA151%2D4941%2DB8DC%2D081A72863D12%7D&dateid=38779%2E364051169%2D862692667&siteid=mktw&dist=newsfinder

NEW YORK (MarketWatch) - Treasury prices were slightly lower early Friday, sending yields a bit higher, pressured by recent indications that interest rates could rise in the U.S., the euro zone and Japan. The benchmark 10-year note last was down 3/32 at 98-28/32 with a yield ($TNX 46.70, +0.32, +0.7% ) of 4.646%. Overnight interest rate worries were exacerbated when a measure of inflation in Japan rose more quickly than forecast, leading to speculation the Bank of Japan's zero interest rate policy will end sooner rather than later. On Thursday the European Central Bank lifted its key rate and Jean-Claude Trichet, the central bank's president, make hawkish remarks that suggested more rates could be in store.

[UpInArms]

46. Lehman now sees federal funds rate going to 5.5%

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B6C2574D3%2D71C9%2D463B%2DB86F%2D1BFF5B162E2B%7D&dateid=38779%2E3809100926%2D862695946&siteid=mktw&dist=newsfinder

WASHINGTON (MarketWatch) -- The Federal Reserve will likely raise overnight interest rates four more times to 5.5% by late summer, Lehman Bros. economists said Friday. Previously, Lehman was expecting the Fed to stop raising rates when it got to 5%. The firm also boosted its forecasts for U.S. gross domestic product for each of the next three quarters, said Ethan Harris, chief economist for Lehman, in a note to clients. The reasons for the new call? The housing market is cooling off slower than expected and the economy is showing more underlying strength. Harris doesn't see the Fed cutting rates any time soon. "With inflation trending up, we believe the Fed will want to stay on the tight side of neutral for an extended period," he said.

[Danascot]

78. These rate hike will cause

the economy to slow just in time for the November elections, which will hurt the Pugs, so I'm for it.

[UpInArms]

66. Treasuries extend loss amid global inflation worry

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T144711Z_01_N03281440_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, March 3 (Reuters) - U.S. Treasury debt prices eased on Friday in follow-through action to Thursday's price drop amid concerns about potential global inflation and expectations of more interest rate hikes from the Federal Reserve.

Prices of the benchmark 10-year note fell 7/32 for a yield of 4.66 percent, breaking through technical resistance at 4.65 percent. Benchmark yields finished near 4.63 percent on Thursday after briefly pushing to as high as 4.67 percent, their strongest since November.

Traders said the price drop late this week has snowballed after yields were pushed out of recent ranges in a move sparked in part by an interest rate hike in Europe and indications that rates are heading higher internationally.

"Overall, the market psychology has changed to more bearish," said Adam Brown, co-head of U.S. Treasury trading at Barclays Capital in New York, adding "the path of least resistance is going to be higher yields."

Investors are also jittery about the potential for the Bank of Japan to shift policy away from flooding the banking system with excess funds in a bid to keep interest rates near zero.

Expectations of a policy shift were further cemented on Friday after data showing Japan's core consumer price index rose at its fastest rate in nearly eight years and above market consensus. The rising prices heightened perceptions the Japanese central bank could end its very easy monetary policy.

...more...

[UpInArms]

69. Treasuries even lower after strong ISM services

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T151453Z_01_N03513731_RTRIDST_0_MARKETS-BONDS-ISM-URGENT.XML

NEW YORK, March 3 (Reuters) - U.S. Treasury debt prices extended losses on Friday after services sector data for February proved more robust than expected.

The Institute for Supply Management's non-manufacturing index rose to 60.1 last month from 56.8 in January, well above forecasts for an increase to 58.0.

Bonds had already kicked off the session lower, extending a largely technical sell-off that started on Thursday and took benchmark yields to four-month highs.

Benchmark 10-year notes were off 11/32 for a yield of 4.68 percent, compared with 4.63 percent Thursday and up almost 10 basis points in just two days.

Yields were now testing an intra-session high of 4.682 percent.

[UpInArms]

77. Treasuries extend sell-off, yields hit 1-year high

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T154739Z_01_N03517507_RTRIDST_0_MARKETS-BONDS-HIGH-URGENT.XML

NEW YORK, March 3 (Reuters) - U.S. Treasury debt prices extended a heavy two-day sell-off on Friday, pushing benchmark yields to one-year highs and close to where they stood when the Federal Reserve began raising interest rates in June 2004.

Strong data from the services sector contributed to the downturn but the losses were mostly a result of a breach above key technical levels that took on a momentum of their own, traders said.

Benchmark 10-year notes were down 12/32 in price for a yield of 4.682 percent, having hit 4.688 percent at the height of the selling, its highest since March 2005.

A rate-hike by the European Central Bank and growing signs that the Bank of Japan might abandon its super-loose monetary policy have generated negative sentiment in fixed-income markets across the world.

[UpInArms]

102. Treasury yields hit year high on bearish technicals

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T164225Z_01_N03318599_RTRIDST_0_MARKETS-BONDS-UPDATE-1.XML

NEW YORK, March 3 (Reuters) - The benchmark 10-year U.S. Treasury note's yield hit its highest level in nearly a year in a two-day debt sell-off driven by concerns about higher global interest rates.

Those concerns were heightened by indications that Japan may be considering tightening its monetary policy.

The 10-year note was trading 13/32 lower in price for a yield of 4.69 percent -- the highest since March 23, 2005.

Benchmark yields surged on Thursday to finish near 4.63 percent amid price weakness spurred by concerns over potential global inflation and expectations of more interest rate hikes by the Federal Reserve.

Investors largely shrugged off data on Friday showing weaker-than-expected consumer sentiment in February, which was countered by stronger-than-expected growth in the U.S. services sector that month.

Traders said the price drop late this week has snowballed after yields were pushed out of recent ranges in a move sparked in part by an interest rate hike by the European Central Bank and indications that rates are heading higher internationally.

...more...

[UpInArms]

146. Treasury market unnerved by the possibility of higher rates

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC7F21035%2DB08D%2D4FC3%2DB65F%2D3BA60E56E9CA%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- There is a rising possibility that the U.S., Japan and the euro zone all could tighten their monetary policies simultaneously this year, a scenario not seen since the 1980s.

The strong links between the three economies mean that growth in one place frequently spills over into the other two areas, intensifying economic expansion and the accompanying pressure to lift rates.

"The combination of strong growth in the U.S., euro zone and Japan at the same time is bearish for bonds, so it is not surprising that yields in all three regions have either just broken out of their recent ranges or are not far from doing so," said Paul Podolsky, an analyst at Bridgewater Associates.

The prospect of rising rates for the dollar, euro and yen, currencies that collectively attract much of the world's investment funds, caught many investors by surprise and unnerved the bond market on Thursday and Friday.

In late 2005 many analysts had expected U.S. rates increases to wrap up the ongoing series of quarter-point rate increases sometime in the first half of 2006 with the Fed funds target at 4.75% or 5%.

However, a recent stream of strong data reports here has altered the outlook for rates. In fact, Lehman Brothers economists Friday forecast that overnight rates will increase four more times by late summer and push the target up to 5.5%.

...more...

[EuroObserver]

151. And not just those three. This is going global, I reckon.

Food for thought for the weekend...

[UpInArms]

43. Intel Warns First-quarter Sales Will Miss Forecasts

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BF3C9BBCC%2D3ED5%2D42D6%2DA43E%2DF18AE71EAE7E%7D&siteid=mktw&dateid=38779%2E379089294%2D862695607

NEW YORK (MarketWatch) -- Intel Corp. Friday said it expects revenue of $8.7 billion to $9.1 billion in the first quarter, below its previous forecast for revenue of $9.1 billion to $9.7 billion. The Dow component cited weaker than expected demand and a slight market segment share loss for the lower projection. Intel also anticipates its gross margin for the first quarter will be hurt by the lower revenue view. Shares of the Santa Clara, Calif., chip giant were off 31 cents, or 1.5%, to $20.18 on Instinet volume of 777,188 in pre-market action.

[UpInArms]

48. pre-opening blather

09:12 am : S&P futures vs fair value: -5.0. Nasdaq futures vs fair value: -9.5. Following Intel's (INTC) downside Q1 revenue guidance, futures trade has dropped. The Dow component cited weaker than expected demand and a slight market segment share loss. The cash market is now set to open sharply lower.

09:01 am : S&P futures vs fair value: -0.7. Nasdaq futures vs fair value: flat. The cash market remains poised to open in subdued fashion. There is little news to help set a more definitive trading tone. Only three companies are on today's earnings docket, and the economic calendar features just two items that are not likely to have much market-moving impact. The focus remains on the interest rate environment. Along with the uncertainty over the U.S. Fed's tightening cycle, the ECB's rate hike yesterday and growing expectations for an impending one in Japan exacerbate anxiety.

08:32 am : S&P futures vs fair value: +0.2. Nasdaq futures vs fair value: -1.0. Futures trade has ticked lower and now suggests a flattish start for stocks. Weakness in overseas markets, particularly Japan, may be starting to weigh on early domestic sentiment. The Nikkei dropped 1.6% overnight, following a 0.5% rise in Japan's core consumer price index. That was the third increase in the country's CPI, and feeds the growing sense of uncertainty that its central bank will soon abandon its ultra-loose monetary policy.

[54anickel]

49. The Dark Side of China’s Rise

Whoa, how bizarre. As I read certain parts of this article all I could think of was, they've learned well from the US plutocracy example. Seems globalization has simply spawned a free for all for the elite.

http://www.foreignpolicy.com/story/cms.php?story_id=3373&page=0

China’s economic boom has dazzled investors and captivated the world. But beyond the new high-rises and churning factories lie rampant corruption, vast waste, and an elite with little interest in making things better. Forget political reform. China’s future will be decay, not democracy.

The only thing rising faster than China is the hype about China. In January, the People’s Republic’s gross domestic product (GDP) exceeded that of Britain and France, making China the world’s fourth-largest economy. In December, it was announced that China replaced the United States as the world’s largest exporter of technology goods. Many experts predict that the Chinese economy will be second only to the United States by 2020, and possibly surpass it by 2050.

Western investors hail China’s strong economic fundamentals—notably a high savings rate, huge labor pool, and powerful work ethic—and willingly gloss over its imperfections. Businesspeople talk about China’s being simultaneously the world’s greatest manufacturer and its greatest market. Private equity firms are scouring the Middle Kingdom for acquisitions. Chinese Internet companies are fetching dot-com-era prices on the NASDAQ. Some of the world’s leading financial institutions, including Bank of America, Citibank, and HSBC, have bet billions on the country’s financial future by acquiring minority stakes in China’s state-controlled banks, even though many of them are technically insolvent. Not to be left out, every global automobile giant has built or is planning new facilities in China, despite a flooded market and plunging profit margins.

And why shouldn’t they believe the hype? The record of China’s growth over the past two decades has proved pessimists wrong and optimists not optimistic enough. But before we all start learning Chinese and marveling at the accomplishments of the Chinese Communist Party, we might want to pause for a moment. Upon close examination, China’s record loses some of its luster. China’s economic performance since 1979, for example, is actually less impressive than that of its East Asian neighbors, such as Japan, South Korea, and Taiwan, during comparable periods of growth. Its banking system, which costs Beijing about 30 percent of annual GDP in bailouts, is saddled with nonperforming loans and is probably the most fragile in Asia. The comparison with India is especially striking. In six major industrial sectors (ranging from autos to telecom), from 1999 to 2003, Indian companies delivered rates of return on investment that were 80 to 200 percent higher than their Chinese counterparts. The often breathless conventional wisdom on China’s economic reform overlooks major flaws that render many predictions about China’s trajectory misleading, if not downright hazardous.

Behind the glowing headlines are fundamental frailties rooted in the Chinese neo-Leninist state. Unlike Maoism, neo-Leninism blends one-party rule and state control of key sectors of the economy with partial market reforms and an end to self-imposed isolation from the world economy. The Maoist state preached egalitarianism and relied on the loyalty of workers and peasants. The neo-Leninist state practices elitism, draws its support from technocrats, the military, and the police, and co-opts new social elites (professionals and private entrepreneurs) and foreign capital—all vilified under Maoism. Neo-Leninism has rendered the ruling Chinese Communist Party more resilient but has also generated self-destructive forces.

To most Western observers, China’s economic success obscures the predatory characteristics of its neo-Leninist state. But Beijing’s brand of authoritarian politics is spawning a dangerous mix of crony capitalism, rampant corruption, and widening inequality. Dreams that the country’s economic liberalization will someday lead to political reform remain distant. Indeed, if current trends continue, China’s political system is more likely to experience decay than democracy. It’s true that China’s recent economic achievements have given the party a new vibrancy. Yet the very policies that the party adopted to generate high economic growth are compounding the political and social ills that threaten its long-term survival.

more...

[UpInArms]

51. Young Shanghai Workers Change Jobs Often

http://www.localnewsleader.com/kindred/stories/index.php?action=fullnews&id=152051

SHANGHAI, China - Shanghai residents under age 30 changed jobs every 17.5 months on average last year, the city said Thursday, raising concerns that frequent job-hoppers are failing to develop needed career skills.

The job-hopping rate was even shorter than 2004‘s average of 18 months among the young, according to a recent report by the Shanghai Labor and Social Security Bureau.

China‘s galloping economic growth has created a competitive job market in major cities like Shanghai and Beijing, and there is a huge demand for people with technical expertise or experience running businesses.

While skilled Shanghainese can have their pick of employers, many others are struggling for work as China‘s rising population, inflows of job seekers from the countryside, and a huge increase of university graduates engender an ever-tightening job market.

Meanwhile, in China‘s vast interior millions of people are mired in poverty, with incomes stagnant and opportunities mostly limited to farming and other forms of manual labor.

...more...

[54anickel]

59. So just wtf is wrong with job-hopping to better your income and skills?

Tech workers did that here - you were looked down upon if you spent too much time with one company and labeled as "no initiative, dog in a manger".

CEO types do it here all of the time (get while the getting is good - before the fecal matter hits the fan).

Ahhh, here's a hint, can't start having upward presssure on wages:

Foreign-invested companies in particular have complained about the short tenure of their local managers, often lured away by foreign rivals or local companies that can offer them better money and more responsibility.

[UpInArms]

53. 8:32 EST thud

Dow 10,986.29 -39.22 (-0.36%)
Nasdaq 2,297.78 -13.33 (-0.58%)
S&P 500 1,284.35 -4.79 (-0.37%)
10-Yr Bond 4.660 +0.22 (+0.47%)

NYSE Volume 56,549,000
Nasdaq Volume 104,972,000

[AnneD]

58. It's Friday....

wonder if the faeries have bulked up? Should be interesting.....maybe they are really reading the reports.

[Roland99]

64. They better hope Congress doesn't look into their steroid use.

[AnneD]

89. What do you mean ....

People day trade out of Congressional offices AND most Congressional portfolios do much better than the average. So some folks are guilty of some impropriey and possible juicing their own accounts. As I said before, there is a party going on and the majority of us are not invited.:rofl:

[Roland99]

97. Someone had a pic of a bulked-up faerie. Wish I knew where it was.

:)

[UpInArms]

100. that was Maralee's pic -

I lost all my great pic links when my 'puter went down a few months ago :(

but I am working on a new library of them as I see them again or run into goods :)

[UpInArms]

54. SFBC plunges on earnings report delay

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B2536356E%2D78DE%2D45C3%2DB62D%2DC7703AF898A8%7D&dateid=38779%2E3982082176%2D862699379&siteid=mktw&dist=newsfinder

BOSTON (MarketWatch) --- Shares of SFBC International (SFBC) plunged 19% to $18.00 in early trade Friday, the day after it announced that it will not release its fourth-quarter and 2005 earnings until March 8. SFBC had been scheduled to report earnings on March 2. The company said it was delaying the report in order to assess a "substantial" non-cash impairment charge related to a decline in business at its Miami operations. The company also withdrew the 2006 financial forecast it issued in December. The company had expected annual revenue of $355 million to $363 million, per-share income of $1.80 to $1.86, and pro forma per-share income of $1.93 to $1.99.

[bain_sidhe]

84. The Science Fiction Book Club??

Ok, I looked it up, and I know it's Slades Ferry Bancorp Com, but when I saw the subject line, I did a double take. :-)

[UpInArms]

85. Hiya bain_sidhe!

So glad to "see" you here at the SMW!

:hi:

The Science Fiction Book Club probably has clearer accounts than Slades Ferry :D

[bain_sidhe]

93. Hiya backatcha

:hi:

I'm here every day, I just don't say much. Think of a banshee wearing dark glasses and a trench coat (and, of course, a fedora), slinking around behind the potted plants. That's me!

And I figure I *personally* kept the Science Fiction Book Club in the black last year, so their accounts should be in good shape. ;-)

[UpInArms]

62. US junk bond mutual funds report $3.6 mln outflow

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T143224Z_01_N03504711_RTRIDST_0_FINANCIAL-JUNK-AMG.XML

NEW YORK, March 3 (Reuters) - U.S. junk bond mutual funds reported $3.6 million of net outflows in the week ended March 1, following a $31.3 million net outflow the previous week, AMG Data reported late on Thursday.

Junk bonds are rated below investment grade and carry high yields to compensate for risks. Investors have pulled cash out of junk bond funds for more than a year amid concerns that there was little upside left after a strong two-year rally.

The performance of junk bonds weakened in recent days, although they are still posting gains year-to-date. Junk bonds have lost 0.16 percent so far in March but are up 2.06 percent for the year, according to Merrill Lynch.

[UpInArms]

68. 10:15 EST hanging on to that 11K

maybe they think no one will notice anything else if 11K is the daily goal?

Dow 11,004.06 -21.45 (-0.19%)
Nasdaq 2,302.34 -8.77 (-0.38%)
S&P 500 1,286.18 -2.96 (-0.23%)
10-Yr Bond 4.670 +0.32 (+0.69%)

NYSE Volume 354,661,000
Nasdaq Volume 458,586,000

10:00 am : The indices have held their places. The Intel (INTC 20.15 -0.34) news continues to weigh on sentiment, but the market is demonstrating resilience that evidences the idea that its revenue warnings was 1) not a big surprise and 2) company-specific. A 3% rise in competitor Advanced Micro (AMD 42.20 +0.87), to which Intel has been losing some market share, supports the Philadelphia Semiconductor Index. Rising interest rates are a separate factor behind today's early bias. The benchmark 10-year note is presently down 11 ticks and yielding 4.67%. The ECB's rate hike yesterday and fears over impending tightening in Japan increase interest rate anxieties for the global market. DJ30 -22.01 NASDAQ -9.41 SP500 -4.18 NASDAQ Dec/Adv/Vol 1600/863/355.9 mln NYSE Dec/Adv/Vol 1838/872/190.9 mln

09:40 am : The major indices started the day below the flat line. Futures trade had suggested a relatively flat start, but a revenue warning and accompanying comments from Intel sparked selling. The chip maker now foresees $8.7-9.1 billion in sales, down from previous guidance of $9.1-9.7 billion and versus the $9.39 billion Reuters Estimates consensus. Ultimately, the news is not a big surprise. Intel continues to suffer from capacity constraints, and for that reason faces margin pressure and some market share loss to rival AMD. We see this as a short-term issue that we expect to be resolved in the second half of the year. Its comments appear to be company-specific, supporting upside in AMD-related names. Moreover, chip equipment maker Novellus Systems (NVLS) reflected that by raising the higher end of its bookings guidance. DJ30 -24.17 NASDAQ -10.16 SP500 -3.83

[UpInArms]

74. 10:42 EST trying to make it all better

Dow 11,021.98 -3.53 (-0.03%)
Nasdaq 2,308.95 -2.16 (-0.09%)
S&P 500 1,288.02 -1.12 (-0.09%)
10-Yr Bond 4.674 +0.36 (+0.78%)

NYSE Volume 519,431,000
Nasdaq Volume 645,790,000

10:30 am : Buyers have stepped in and sent the indices to the flat line. As expected, today's dose of economic data has not had much effect upon trade. The University of Michigan's revised Consumer Sentiment report for February checked in at 86.7, above both the 87.4 prior read and the 87.5 consensus estimate. That revision is not significant, and further, we do not contend that there is a strong correlation between sentiment and actual consumer spending. The February ISM Services Index, meanwhile, jumped to 60.1 from 56.8 in January. It had averaged near 60 for the three months of October through December before unexpectedly dipping in January, so this jump was not surprising. That index trends fairly steady, and is not closely followed by the markets. DJ30 +0.40 NASDAQ -0.71 SP500 -0.71 NASDAQ Dec/Adv/Vol 1683/924/551.3 mln NYSE Dec/Adv/Vol 1892/928/312.0 mln

[Roland99]

79. Wait a sec...86.7 is *above* 87.4?

:wtf:

[UpInArms]

81. so are they "typos" or is it an attempt to "spin"?

I saw that also - was wondering why such incompetence or malfeasance is allowed to continue :eyes:

[Roland99]

82. dyslexic spinners?

[OrangeCountyDemocrat]

87. Here's The Part I Love...

"we do not contend that there is a strong correlation between sentiment and actual consumer spending."

Are they basically saying that people are so STOOOPID, that even if they're thinking things are bad, they'll still be willing to go out and spend anyways? Sounds like an insult to me.

Well....although our survey says people think things SUCK, we don't expect that's going to have any impact on these same people going out and spending themselves into oblivion.

[UpInArms]

90. in the 80s, I called it "depression spending"

:eyes:

[EuroObserver]

95. Feeling low? A SHOPPING SPREE will cheer you up! n/t

[AnneD]

104. In the medical profession..

we refer to it as retail theraphy...

[AnneD]

101. Orange honey,

they have been insulting my intelligence for years now. It has been the worst since Bush took office. It's like these guys know they have carte blanche. And I'm not the only one that has caught on to the game. I read the other day that investments (by the average guy) in stockmarket have declined. Maybe these average investors don't have the money, but I think that maybe some folks have already been burned a few times and are leery of geting in to a market that has been marked by corruption. I still don't think the reforms that were promised have gone far enough so why should I pump large sums into it.

[UpInArms]

83. Today's Humor: Wal-Mart stressing global ethics

http://www.chicagotribune.com/business/chi-0603030302mar03,1,5839279.story?coll=chi-business-hed

BENTONVILLE, Ark. -- Wal-Mart Stores Inc. plans to hire a director of global ethics, a restructured position aimed at ensuring the retailer's code of conduct is applied across a growing global network of more than 6,200 stores and 1.6 million employees in 15 countries, the company said Thursday.

The job advertisement comes a year after embarrassing revelations that Wal-Mart's No. 2 executive, Tom Coughlin, had been pilfering company money and goods for years for his personal benefit.

Coughlin, 57, pleaded guilty Jan. 31 to fraud and tax charges for stealing money, gift cards and merchandise from the world's largest retailer, based in Bentonville, Ark.

Wal-Mart also faces a class-action lawsuit in California claiming it discriminated against female employees and is a repeated target of ethics allegations by organized labor and other critics. Wal-Mart spokeswoman Sarah Clark said the ethics post was previously held by someone who held that job as well as other responsibilities.

...more...

[UpInArms]

88. Car Parts Maker - Dana Corp - files for Chapter 11 Bankruptcy

11:31am 03/03/06 Dana files first-day motions in bankruptcy court in N.Y. - MarketWatch.com

11:30am 03/03/06 Dana CEO: Co. to remain open for business as usual - MarketWatch.com

11:29am 03/03/06 Dana CEO: Chapter 11 process to be 'fundamental change' - MarketWatch.com

11:29am 03/03/06 $ Dana Files for Chapter 11 Protection -

11:28am 03/03/06 Dana: DIP facility replaces co.'s prior revolver, facility - MarketWatch.com

11:27am 03/03/06 Dana obtains $1.45B DIP financing facility - MarketWatch.com

11:25am 03/03/06 Dana: Non-U.S. units not included in Chapter 11 filing - MarketWatch.com

11:24am 03/03/06 Dana U.S. operations file for Chapter 11 reorganization - MarketWatch.com

11:15am 03/03/06 Dana Corp. hits all-time low of 74 cents in intraday trading - MarketWatch.com

11:15am 03/03/06 Dana Corp. down 23% at 80 cents - MarketWatch.com

[UpInArms]

92. Dana US operations file for bankruptcy protection

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T163651Z_01_WEN2131_RTRIDST_0_AUTOS-DANA-BANKRUPTCY-URGENT.XML

CHICAGO, March 3 (Reuters) - Auto and truck parts maker Dana Corp. (DCN.N: Quote, Profile, Research) said on Friday that its U.S. operations have filed for bankruptcy protection, succumbing to declining production at large U.S. customers and high materials costs.

Dana, the first large U.S. auto parts maker to file for Chapter 11 protection from creditors in 2006, cited general industry financial deterioration and its inability to renew or expand credit faciliti3es in a timely matter.

Toledo, Ohio-based Dana said it has secured $1.45 billion of debtor-in-possession financing from Citigroup, Bank of America, and JP Morgan Chase Bank for the restructuring, pending approval of the New York bankruptcy court.

[UpInArms]

91. 11:39 EST 11K is all that matters

Dow 11,004.22 -21.29 (-0.19%)
Nasdaq 2,304.41 -6.70 (-0.29%)
S&P 500 1,286.39 -2.75 (-0.21%)
10-Yr Bond 4.684 +0.46 (+0.99%)

NYSE Volume 810,501,000
Nasdaq Volume 967,243,000

11:30 am : Sideways trade persists, leaving the indices moderately lower. The price of crude, which reversed into the red earlier this morning, is now about 0.6% lower. Futures contracts for April delivery are trading just over $63.00 per barrel. The decline, which comes on the heels of three straight sessions of gains, is a somewhat supportive factor for the market. At the same, it has not been substantial enough to spark spirited selling across the Energy sector, or to incite strong buying across the broader market. Along with the Industrial sector, that area of the market continues to hover around unchanged territory.DJ30 -24.57 NASDAQ -6.20 SP500 -3.07 NASDAQ Dec/Adv/Vol 1721/1050/903.9 mln NYSE Dec/Adv/Vol 1939/1050/551.1 mln

[bain_sidhe]

94. 11,000.87...

Oh, oh, is it going to fall under the magic number?

The suspense is killing me

[Roland99]

98. They are fighting hard to keep it up there.

What happens when those muscles fill with too much lactic acid?

[UpInArms]

103. 12:15 EST Rah! Rah! Rah! Siss Boom Bah! Faeries Winning!

Dow 11,018.55 -6.96 (-0.06%)
Nasdaq 2,310.10 -1.01 (-0.04%)
S&P 500 1,287.91 -1.23 (-0.10%)
10-Yr Bond 4.686 +0.48 (+1.03%)

NYSE Volume 955,505,000
Nasdaq Volume 1,163,558,000

12:00 pm : Heading into the afternoon, sellers remain in control of the trading action. Futures trade had suggested that the market would continue it's see-saw action today, meaning the market would trend somewhat higher following yesterday's decline, but a revenue warning from Intel (INTC 20.08 -0.41) has tempered sentiment. Also, rising interest rates have created fostered a bearish backdrop.

The world's largest chip maker cut its first quarter revenue outlook to $8.7-9.1 billion from a previously forecasted range of $9.1-9.7 billion. The reasons cited were weaker than expected demand and a slight market segment share loss. Because of the change in revenue expectations, gross margins will be adversely impacted. Reading between the lines, it is clear that Intel is still losing share to Advanced Micro Devices (AMD ) - a development we think that has a lot to do with capacity limitations that should ease in the second half of the year. We remain bullish on the stock, which is a suggested holding in our Active Portfolio. While its news has been a bearish factor today, selling has remained in-check. First, it isn't entirely a surprise. Second, its issues appear to be company-specific. The semiconductor companies are in the midst of a cycle upturn, which Novellus (NVLS) underscored with its mid-quarter update last night. The SOX Index is holding up relatively well, and the Tech sector (-0.2%) is also demonstrating resilience.

Other than the Intel news, the corporate front has been a light one. Some supportive factors are reaffirmed current quarter and full-year guidance from General Electric (GE 33.06 +0.21), and a better than expected February same-store sales report from Starbucks (SBUX 35.80 +0.35). Additionally, crude has reversed its three-day gaining streak. Its return to the red is somewhat supportive for the broader market, but it's also not substantial enough to have roiled the Energy sector (+0.1%). The Industrials (+0.2%) sector has also managed to sustain a gain.

Telecom is today's weakest link. It's the S&P's best year-to-date performer, and traders are today locking in some of its 12% profit. The Financial sector has registered a 0.4% loss that weighs heaviest. Much focus remains on the interest rate environment. A 0.5% rise in Japan's core consumer price index feeds concerns that the country will tighten its ultra-loose monetary policy, which follows the European Central Bank's rate hike yesterday. These international interest rate issues exacerbate concerns related to the lingering U.S. monetary tightening uncertainty. The benchmark 10-year (-12/32) is now yielding 4.68%.

The economic front was also a light one. The University of Michigan's revised Consumer Sentiment report for February checked in at 86.7, above both the 87.4 prior read and the 87.5 consensus estimate. The February ISM Services Index, meanwhile, jumped to 60.1 from 56.8 in January. Neither data are having an effect on trading. The former is relatively insignificant, and the latter reflects a steady trend.DJ30 -20.74 NASDAQ -5.99 SP500 -2.49 NASDAQ Dec/Adv/Vol 1771/1074/1.10 bln NYSE Dec/Adv/Vol 1996/1053/651.4 mln

[bain_sidhe]

105. 11,019.59

Happy days are here again!!!!

:eyes:

[TrogL]

96. Loonie watch (new format)

Highlights

Current:



30-day and 90-day:



Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.H06&v=s

Current TSE



Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2006-01-18 Wednesday, January 18 0.852806 USD
2006-01-19 Thursday, January 19 0.857486 USD
2006-01-20 Friday, January 20 0.867227 USD
2006-01-23 Monday, January 23 0.868734 USD
2006-01-25 Wednesday, January 25 0.87108 USD
2006-01-26 Thursday, January 26 0.869414 USD
2006-01-27 Friday, January 27 0.87184 USD
2006-01-30 Monday, January 30 0.873897 USD
2006-01-31 Tuesday, January 31 0.874432 USD
2006-02-01 Wednesday, February 1 0.877116 USD
2006-02-02 Thursday, February 2 0.877116 USD
2006-02-03 Friday, February 3 0.87184 USD
2006-02-06 Monday, February 6 0.872981 USD
2006-02-07 Tuesday, February 7 0.870322 USD
2006-02-08 Wednesday, February 8 0.866927 USD
2006-02-09 Thursday, February 9 0.872981 USD
2006-02-10 Friday, February 10 0.866326 USD
2006-02-13 Monday, February 13 0.865951 USD
2006-02-14 Tuesday, February 14 0.866101 USD
2006-02-15 Wednesday, February 15 0.866476 USD
2006-02-16 Thursday, February 16 0.863782 USD
2006-02-17 Friday, February 17 0.867905 USD
2006-02-21 Tuesday, February 21 0.872296 USD
2006-02-22 Wednesday, February 22 0.870928 USD
2006-02-23 Thursday, February 23 0.868659 USD
2006-02-24 Friday, February 24 0.868056 USD
2006-02-27 Monday, February 27 0.87581 USD
2006-02-28 Tuesday, February 28 0.878812 USD
2006-03-01 Wednesday, March 1 0.879894 USD
2006-03-02 Thursday, March 2 0.883392 USD

Current values

Last trade 0.8812 Change -0.0031 (-0.35%)
Settle Time 15:05 Open 0.8827
Previous Close 0.8843 High 0.8837
Low 0.8799 Open Int. 122240


Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The March Canadian Dollar closed higher on Wednesday and above January’s high crossing at .8805. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are still possible near-term. Tuesday’s close above January’s high crossing at .8804 has opened the door for a possible test of weekly resistance crossing at .8825.

Analysis

Looks like saner heads have prevailed after yesterday's boost.

Can't say the same thing for Alberta Premier Ralph Klein. He literally threw the book (the federal Liberal policy platform) at a 16-year-old girl (working as a page) and there's calls for his resignation.

The federal Conservative government hasn't done anything monumentally stupid (yet) so I guess no news is good news.

[AnneD]

110. Oh my.....

that constitutes child abuse in some places. If it were my kid, I might be pressing assault charges.

[UpInArms]

107. Spinning Head at work (?): Quotes from "Mad Money" man himself

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T172441Z_01_N03518404_RTRIDST_0_BIZFEATURE-CRAMER-FACTBOX.XML

NEW YORK, March 3 (Reuters) - The following are additional quotes from Jim Cramer in his recent interview with Reuters. Cramer is the host of "Mad Money," the CNBC hit show that features his stock recommendations.

"What I hope is that I can educate, entertain and help people make money."

"I come in with the idea of 'this is what you should buy.' I have no interest in 'had you bought' ... "

On generating stock excitement prior to "Mad Money": "Everything was like a sequoia -- it couldn't be budged except by nuclear war ... It always amazed me that I was such a tree falling in the woods. Kind of depressing."

"I'm a track record guy, and what I care about is not how something does immediately, because I know how the market works and the people who get in after hours are very small. And the people who get in after hours who pay high are going to lose because that's a sucker's game."

...more...

[UpInArms]

109. 12:33 EST All in the Black Now (excepting bonds)! Score for the Faeries!

Dow 11,048.64 +23.13 (+0.21%)
Nasdaq 2,316.62 +5.51 (+0.24%)
S&P 500 1,291.09 +1.95 (+0.15%)
10-Yr Bond 4.676 +0.38 (+0.82%)

NYSE Volume 1,038,410,000
Nasdaq Volume 1,261,634,000

[UpInArms]

111. Didn't SpecimenFred say the "mysterious" buyer showed up when Fed did?

12:30 PM ET 3/3/06 FERGUSON: INVERTED YIELD CURVE NOT SIGNALING DOWNTURN

12:30 PM ET 3/3/06 FERGUSON: HOUSING SLUMP, ENERGY COSTS REMAIN RISKS

12:30 PM ET 3/3/06 FERGUSON: FOMC MUST MONITOR INCOMING DATA

12:30 PM ET 3/3/06 FERGUSON: CORE INFLATION REMAINS MODERATE

12:30 PM ET 3/3/06 FED'S FERGUSON: U.S. ECONOMIC GROWTH ON TRACK

[UpInArms]

112. US economy on track but faces risks-Fed's Ferguson

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T173538Z_01_WAT004988_RTRIDST_0_ECONOMY-FED-FERGUSON-URGENT.XML

WASHINGTON, March 3 (Reuters) - The U.S. economy is "solidly on track" but faces risks that could alter both its path and the direction of interest-rate policy, Federal Reserve Vice Chairman Roger Ferguson said on Friday.

"The U.S. economic expansion appears to be solidly on track," Ferguson said in remarks prepared for delivery at Howard University. "Nevertheless, the outlook for real activity faces a number of significant risks, including the possibility that house prices and construction could retrench sharply and that energy prices could rise significantly further."

"Give the considerable uncertainties facing the economy and the outlook for (Fed) policy, policy decisions in coming months will depend heavily on the implications of incoming economic data for future growth and inflation," he added.

Ferguson, who announced last week that he was resigning his post as of April 28, will not attend the March 27-28 Fed policy session in keeping with the customary practice of departing officials skipping the last gathering of their tenure.

[UpInArms]

113. 12:40 Partying like there's no tomorrow!

Dow 11,063.45 +37.94 (+0.34%)
Nasdaq 2,319.01 +7.90 (+0.34%)
S&P 500 1,292.96 +3.82 (+0.30%)
10-Yr Bond 4.678 +0.40 (+0.86%)

NYSE Volume 1,071,789,000
Nasdaq Volume 1,298,352,000

12:30 pm : Selling has subsided and the market has just cleared the flat line. Interestingly enough, it's the Nasdaq that is now leading the major averages. Semiconductors have staged a recovery, and the SOX is now just above the unchanged mark. Broadcom (BRCM 49.69 +0.85) and Texas Instruments (TXN 32.72 +0.37) are leading the advance and helping to offset Intel's (INTC 20.18 -0.31) decline. The Technology sector has also fully recovered - and now sports a 0.2% gain. Along with continued strength in a handful of semis, the internet software and services (+1.0%) and IT consulting and services (+1.8%) industries are supporting that area of the market. DJ30 +25.70 NASDAQ +6.30 SP500 +2.29 NASDAQ Dec/Adv/Vol 1532/1314/1.24 bln NYSE Dec/Adv/Vol 1764/1330/733.3 bln

[Roland99]

116. It's 11,500 or Bust, bay-bee!!

OH!!


The markets are some P.T. Players, bay-bee!!


Dickie V. is loving him some brokers!


OOOOHHHHH!!!!

[UpInArms]

118. How many things are wrong with the following "news" blurb?

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B8CBACBF7%2D92E8%2D4F35%2D82C8%2D203AE78DB838%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- U.S. stocks shot into positive territory at lunchtime Friday, as a drop in crude-oil prices and some positive economic data helped the market absorb an Intel revenue warning that some investors said came as little surprise.

Trading, however, played out amid growing concern about rising interest rates both in the U.S. and abroad, and about what the impact would be on economic growth and corporate profits.

<snip>

The market shook off morning losses shortly after noon. "I wouldn't read too much into this," said Peter Boockvar, equity strategist at Miller Tabak, referring to the upward turn.

"It could be some short-covering," he said. "It could be because the market didn't sell off too much in light of what is happening in the bond market. It could be anything."

Ken Tower, chief market strategist at CyberTrader, said "The market may not be able to overlook Intel's warning, but the fact that it's able to absorb the negative news without a steep price decline is a positive signal."

...more...

Let's see:

Oil is up, not down
Intel should be ignored (?)
Not a word about the Dana bankruptcy filing
Interest rates hike have become market positive(?)

[Roland99]

122. And there's the nice, non-sensationalistic use of the word "shot"

To me...if the markets "shot" up, I'd be expecting to see, oh, a 2-3% one-day gain at a minimum.

Did someone manage to finally find enough monkeys to bang out a legible article?

[UpInArms]

124. Why Roland! I do believe I've found the writer!

[Roland99]

126. Gadzooks! Get that man...monkey...over to DoD, STAT!

Rummy says we're falling behind in the propaganda war.


We need more monkeys!!!

[AnneD]

140. Say....

Wasn't he Reagan's speech writer. Boy Bush recycles everything.

[OrangeCountyDemocrat]

129. Why The Optimism From The Departing Democrat?

This Ferguson guy talks about the expansion being solidly on track? What's up with that?

Why does it sometimes seem like we're in our own little bubble here. People either think things are expanding, increasing, going FABULOUS....or else they see all these underlying problems which could rise up and bite us in the A&$.

[UpInArms]

133. dunno - but here's something interesting

http://www.marketwatch.com/News/Story/DP6TvqCQJNXDrtXvqvfjCPP?siteid=mktw&dist=TNMostMailed

The VLMAP currently stands at 35%, a relatively low number. Fewer than 5% of readings since the mid 1960s have been any lower.

What four-year return does a 35% VLMAP translate into? The econometric model that most closely fits past relationships between VLMAP and the Value Line Geometric Index suggests that this index will be 12% lower in four years' time.

To be sure, this result isn't quite as bad as it seems. The Value Line Geometric Index is constructed in such a way that it understates the return a portfolio would earn by investing in the 1,700 stocks that make up that index. So a 12% decline in the Value Line Geometric doesn't mean that the average investor must also lose that much.

Still, no matter how you slice it, a VLMAP of 35% does not hold out the prospect of very impressive overall returns between now and March 2010.

[AnneD]

143. It is a POV issue, Orange Dem

the closer you are to the precipice, the clearer your vision is as to what danger is ahead.

[UpInArms]

136. Here comes another "boost"

2:40 PM ET 3/3/06 STERN: MEASURES OF CAPACITY DON'T AID INFLATION FORECASTS

2:40 PM ET 3/3/06 STERN: ECONOMY IS LESS INFLATION-PRONE THAN IN 1970S

2:40 PM ET 3/3/06 STERN: ECONOMY WILL GROW DESPITE HOUSING SLOWDOWN

2:40 PM ET 3/3/06 STERN: FOCUS ON POSSIBLE HOUSING TROUBLE MAY BE EXAGGERATED

2:40 PM ET 3/3/06 STERN SEES GROWTH IN 3-4% RANGE THROUGH 2007

2:40 PM ET 3/3/06 STERN SEES CONTINUATION OF LOW INFLATION

2:40 PM ET 3/3/06 STERN NOT CONCERNED ABOUT POSSIBLE OVERSHOOTING OF RATE HIKE

2:40 PM ET 3/3/06 STERN: MONETARY POLICY EITHER AT OR CLOSE TO NEUTRAL

2:40 PM ET 3/3/06 FED'S STERN SAYS ECONOMIC OUTLOOK PRETTY POSITIVE

[UpInArms]

137. Fed's Stern upbeat about U.S. economy

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B3FCA84AE%2DCCD0%2D4D72%2D8FAF%2D2783627E8DFF%7D&dateid=38779%2E6119959259%2D862738433&siteid=mktw&dist=newsfinder

WASHINGTON (MarketWatch) - The U.S. economy is on track for "respectable growth" over the next two years, and risks from a downturn in the housing market may be exaggerated, said Gary Stern, the president of the Minneapolis Federal Reserve Bank in an exclusive interview with MarketWatch on Friday. With the federal funds interest rate at or near a range consistent with stable prices, it is appropriate for future Fed policy to be data-dependent, Stern said. "I think the economic outlook is reasonably positive," Stern said.

[EuroObserver]

158. Nope, I've tried. You don't get to think/say this kind of stuff

this way: :smoke:

[EuroObserver]

128. Powerful stuff n/t

[UpInArms]

114. US accuses N Korea of financing nukes with counterfeit $100 bills

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=topNews&storyID=2006-03-03T131801Z_01_JAK166280_RTRUKOC_0_US-KOREA-NORTH-USA.xml

The talks have been stalled because of a U.S.-North Korea dispute following Washington's crackdown on firms suspected of aiding illicit North Korean financial activities.

The United States accuses North Korea of conducting illicit financial activities, including counterfeiting $100 bills to help finance its nuclear arms programs. The North denies involvement in any such illegal activities.

North Korea has said it would be unreasonable to resume the talks -- which also involve China, South Korea, Russia and Japan -- until Washington ends the crackdown, which Pyongyang says is designed to topple its leadership.

"I want to stress to you that the actions we took with respect to the bank in Macau are actions we have taken with respect to other banks in other parts of the world having nothing to do with North Korea," Hill said.

:eyes:

[UpInArms]

119. Senate faces tough vote on raising U.S. debt limit

subtitle:

The Dance of the Red Ink Republicans

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T175919Z_01_N03518660_RTRIDST_0_CONGRESS-DEBT.XML

WASHINGTON, March 3 (Reuters) - A nasty budget fight is brewing in Congress as Senate Democrats and some conservative Republicans said on Friday that they will not support efforts this month to increase U.S. borrowing authority, a move needed to avoid a government default.

Democrats, who hope to gain control of the House and Senate in this year's congressional elections, are looking for a debate on the credit limit to highlight the nation's mounting debt at a time when President George W. Bush also is pushing to make his tax cuts permanent.

In a speech on the Senate floor, Senate Minority Leader Harry Reid put all 55 Senate Republicans on notice that they "are going to have to belly up to the bar and vote to increase the debt," saying it was Republican budgets that have created the massive deficit spending requiring more federal borrowing.

"Democrats are not going to vote to increase this debt," Reid said.

Without an increase in U.S. borrowing authority, the federal government could face default. That would mean Washington would not be able to continue writing checks for a variety of activities, from meeting federal workers' payrolls to paying some retiree benefits. Federal parks could close, aid for the poor could be withheld and the space shuttle likely would be docked.

Last April, without any support from Democrats, the Senate and House of Representatives approved a fiscal 2006 budget plan that envisioned the need for increasing U.S. borrowing authority by $781 billion.

...more...

[54anickel]

120. Mosques, Civil War, Oil& Gold (Willie)

http://www.kitco.com/ind/Willie/mar022006.html

IRANIAN PILFERAGE

As a preface, the Iranian Oil Exchange will not set up shop in March 2006. The exchange for Central Asian energy product sale, will not go into operation, will not come to pass, at least not anytime soon, and certainly not this month. My reliable sources traceable to London tell me that Iranian mullahs and clergy entrenched in high office have decided they do not wish to relinquish their corrupt siphon from vast energy sales into their personal accounts. Some old leaders have stolen and wish to continue to steal from their people, from their national energy deposit treasure. The launch of the Iranian Oil Exchange (IOX) will not succumb to Western pressure, will not back off from a challenge to the Petro-Dollar. The IOX will not happen because certain influential Moslem Iranian leaders wish to continue their pilferage, still brisk as each day passes. A formal exchange would force their ruling class to abide by rules of law, official transparency requirements, and that aint gonna happen. Some cock & bull story will be forthcoming as to feasibility or prepared facilities or whatever, so as to save face. To be sure, Iran will continue to sell energy products, and will likely not store the proceeds from those sales in USDollar denominated securities. The diversion away from US$-based assets will continue.

The fact of the matter is that TopDog Ahmadinejad is at odds with the old-line leaders, who continue to push forward a sequence of energy ministers beholden to the old guard. Ahmadinejad wants more honesty and openness in their national leadership, and more acceptance internationally among the community of nations. This initiative has led to several rejected candidates in charge of public administration for the national energy business. Ironically, the new guard in Iran is more dogmatic, reactionary, and impractical, replete with impolitic calls for the destruction of Israel, unwise removal of astute previous foreign ministers in service who had constructive relationships abroad. However, at the same time the new guard is at serious odds with the old guard, who want continued unfettered access to billion$ in oil money. Former leader Rafsanjani has embarked on a speaking tour across the nation, spreading the message “the new regime has gone too far” interestingly. Too many among former Shiite clergy leaders are corrupt, have established a lucrative lifestyle of Moslem bourgeois, and have decided they want to keep their hands in the energy till. In defiance of their own people and Koran, they care to keep their personal accounts in Switzerland and Tokyo and Hong Kong untouched and intact. In this respect, they differ little from the Saudi royals or other Persian Gulf sheikdoms.

For those quick to judge, a story of financial corruption has dogged almost every single US President or his Cabinet after Eisenhower. Our path is littered with presidents who were corrupt or asleep on the job, if not prone to some pathetic economic mythology used by power brokers to pilfer the USGovt coffers or fatten personal investments from the military complex. Both political parties are easily accused. No details will be catalogued. Graft, corruption, and duplicity might be the shared trait across most government elite gangs and henchmen, the common human thread.

snip>

IRAQI CIVIL WAR

The Countdown to Energy War is no longer a countdown. THE ENERGY WAR HAS BEGUN AND NOW ENCOMPASSES AN IRAQI CIVIL WAR. In my view, Moslems finally have their Krystal Nacht in the destruction of Iraq’s most important Shiite shrine at Askariya. Whether you care about Islam or not, this is a revered shrine deserving respect. How would Roman Catholics react if the St Peter Basilica were destroyed, sacked, and razed? Watch the Medina and Mecca shrines inside Saudi Arabia for retaliation. My purpose is to heighten attention of a civil war in Iraq, its trigger, its possible proliferation (not global, not yet), and to examine the effect on the price of gold and crude oil.

Civil war in Iraq is not considered to be even remotely on the list of benefits to any group except those who might wish for a “perma-war” condition. It is curious how democracy is sought in Moslem lands, yet any history of constructive consensus rule is totally non-existent, and any precedent of a constitutional parliament is also absent. Egypt has a parliament, but no constitution, which would by nature compete with or conflict with the Koran, a point missed by USGovt leaders and the US Congress. Even in the quasi-democratic Egypt, the opponent to Mubarek was assassinated last year. Not much was reported on the incident in the intrepid, sleepy, lapdog US press & media. Perhaps they did not wish to expose how impracticable democracy was even in the most favorable environment among Arab nations.

It might be useful to analyze the movement on the chessboard, to forecast the effect on the price of crude oil & gold, and to anticipate the effect on financial markets from both investor reaction and official liquidity. A broad civil war in Iraq will lead to a skyrocket in the price of crude oil and gold. Safe passage through the Hormuz Straits to the Persian Gulf is of the utmost importance. WE ARE ON NOTICE – MAYHEM IS NEAR. THE CRUDE OIL PRICE (AND GOLD) WILL SURELY RESPOND FAVORABLY.

much more...

Check out these before and after shots of the Shiite shrine of Askariya

[UpInArms]

121. Alert: GTSI defaults on covenants, delays 4th qtr results

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T175719Z_01_N03355345_RTRIDST_0_SERVICES-GTSI-UPDATE-1.XML

NEW YORK, March 3 (Reuters) - Information technology company GTSI Corp. (GTSI.O: Quote, Profile, Research) said on Friday it defaulted on certain financial covenants related to its earnings over the past year and its shares fell 7.6 percent.

The company, which said it must postpone its fourth quarter earnings release, is negotiating to delay its lenders from enforcing their rights and is trying to arrange new financing for its longer term borrowing needs.

The shares of Chantilly, Virginia-based GTSI, which supplies the government market, were down 57 cents at $6.97 in midday trading on Nasdaq.

[UpInArms]

130. Silicon Graphics - SGI layoffs 250 workers, including 33 in Chippewa Falls

http://www.chippewa.com/articles/2006/03/03/news/news1.txt

MOUNTAIN VIEW, Calif. - Dennis McKenna, the CEO of Silicon Graphics (OTC: SGID), today unveiled his first major moves to achieve the goal of returning the company to profitability. McKenna is taking decisive action implementing a new organizational structure that is based on a distributed and collaborative management model, with a philosophy to drive responsiveness, flexibility and accountability throughout the organization.

As part of this, approximately 12 percent of the workforce or 250 positions in specific areas will be eliminated in the restructuring.

In addition, SGI will continue to move forward with the previously announced cost reduction programs, increasing the total annualized savings objective to $150 million by the end of 2006. Together these actions will result in a flattened organization and simplified business processes and structures.

The total incremental restructuring charge, including severance and other charges, is expected to be approximately $20 million, and incurred over the next several quarters, as the international impacts generally take longer to complete. SGI's severance programs provide, where practical, payments to be made over the same period in which the payroll expenses otherwise would have been incurred, with the objective of minimizing incremental cash expense.

"As promised in late January, the goal for my first 30 days at SGI was to solidify a strong business foundation and assemble an organization that is laser-focused on execution," said McKenna. "We've made tough decisions and we thank all SGI employees for their hard work and commitment."

...more...

[OrangeCountyDemocrat]

135. Market Obviously Can't Wait To Celebrate Oscar Weekend! +70 nt

[EuroObserver]

162. Planning to see Sylviana this weekend n/t

[UpInArms]

139. 2:53 EST WHEE! Faeries Having a Party!

Dow 11,094.43 +68.92 (+0.63%)
Nasdaq 2,319.49 +8.38 (+0.36%)
S&P 500 1,295.34 +6.20 (+0.48%)
10-Yr Bond 4.674 +0.36 (+0.78%)

NYSE Volume 1,621,184,000
Nasdaq Volume 1,906,380,000

2:30 pm : The indices have edged off of recently hit highs, but remain well above the unchanged mark. The Treasury market, meanwhile, remains submerged. The global interest rate environment is weighing heavily on bonds. Yesterday, the European Central Bank raised target rate 1/4%, and its president made hawkish remarks that were interpreted as signaling more rate hikes are on the horizon. Today, despite a 0.5% increase in Japan's core consumer price index, the BOJ indicated that it would use restraint in raising interest rates leaving in place the rate differential with Europe and the US. The CPI uptick was the third consecutive rise, and suggests that Japan is emerging from a long period of deflation. From an interest rate perspective, news the BOJ may take its time in abandoning its ultra-loose monetary policy is weighing on the yen. Technical indicators are weighing on the bond market today, with the market hovering in an inverted curve environment. The market is focused on the payrolls number that comes out next week. DJ30 +58.67 NASDAQ +6.97 SP500 +5.39 NASDAQ Dec/Adv/Vol 1337/1613/1.80 bln NYSE Dec/Adv/Vol 1501/1691/1.10 bln

2:00 pm : Over the past 30 minutes, the market has spiked higher. Industrials (+1.1%) and Energy (+0.9) are leading the way. A 0.7% jump in Tech and advance in two of the three lagging sectors - Financial and Consumer Discretionary - have further bolstered the indices. Investors appear to have gotten over the Intel news, and even the ongoing interest rate worries appear to be having a more muted effect. The 10-year is now down 12 ticks and up to a 4.68% yield, but rate-sensitive areas, including banks, are on the rise. DJ30 +67.48 NASDAQ +11.27 SP500 +6.66 NASDAQ Dec/Adv/Vol 1243/1686/1.67 bln

[Roland99]

141. 6:8 Dec:Adv? and we're ready to pop thru 11,100?

interesting.

[EuroObserver]

163. Very interesting.

If you can create cash out of thin air, I guess you can also buy/sell whatever, whenever you like, right?

All for the greater good :-(

[UpInArms]

142. Savings rise need not hurt U.S. economy-Ferguson

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T195548Z_01_N03382732_RTRIDST_0_ECONOMY-FED-FERGUSON-SAVING-UPDATE-1.XML

WASHINGTON, March 3 (Reuters) - Federal Reserve Vice Chairman Roger Ferguson said on Friday that U.S. household saving would need to rise eventually, but that such an increase need not hit the economy hard.

"In the long run, I think ... that savings are going to have to rise and it may well be that the mix of consumption and investment in society will change over time as well," Ferguson said after delivering a speech at Howard University.

"All of that can be done in a way that is quite consistent with maintaining sustainable growth and good job creation. So I have no particular concerns in this regard," he said.

Answering wide-ranging questions from the audience, Ferguson, who is departing the U.S. central bank on April 28 and will not attend the next policy meeting, declined to say whether he believed the Fed would push interest rates beyond a "neutral" level to head off inflation.

"I am not going to prejudge what my colleagues on the (policy-setting) FOMC are going to do. They have to figure out how far they want to go," he said.

Ferguson also said there was a need for greater fiscal prudence in Washington.

...more...

[AnneD]

165. Reminds me of that C&W song

we'll all be drinking that free Bubble Up and eating that Rainbow stew. So I guess this is the theme song for today...

There's a big, brown cloud in the city,
And the countryside's a sin.
An' the price of life is too high to give up,
Gotta come down again.
When the world wide war is over and done,
And the dream of peace comes true.
We'll all be drinkin' free bubble-ubb,
Eatin' that rainbow stew.

When they find out how to burn water,
And the gasoline car is gone.
When an airplane flies without any fuel,
And the satellite heats our home.
One of these days when the air clears up,
And the sun comes shinin' through.
We'll all be drinkin' free bubble-ubb,
An' eatin' that rainbow stew.

Eatin' rainbow stew in a silver spoon,
Underneath that sky of blue.
All be drinkin' free bubble-ubb,
An' eatin' that rainbow stew
You don't have to get high to get happy,
Just think about what's in store.
When people start doin' what they oughta be doin',
Then they won't be booin' no more.
When a President goes through the White House door,
An' does what he says he'll do.
We'll all be drinkin' free bubble-ubb,
Eatin' that rainbow stew.

Eatin' rainbow stew in a silver spoon,
Underneath that sky of blue.
We'll all be drinkin' that free bubble-ubb,
Eatin' some rainbow stew.

<snip>

[UpInArms]

144. 3:08 EST Revelers are starting to pass out

Dow 11,068.18 +42.67 (+0.39%)
Nasdaq 2,312.87 +1.76 (+0.08%)
S&P 500 1,291.95 +2.81 (+0.22%)
10-Yr Bond 4.680 +0.42 (+0.91%)

NYSE Volume 1,692,292,000
Nasdaq Volume 1,979,966,000

3:00 pm : Little has changed for stocks. Buying action remains broad-based, with nine of ten sectors heading higher. One particular pocket of relative strength is transportation. Despite what is a 0.5% rise in crude - marking the fourth straight gain in the commodity - the Dow Jones Transportation Average is up 1.1%. FedEx (FDX 111.93 +2.53) is the driver. Twelve other issues within the average (there are 19 total) have registered 1% or more. DJ30 +67.64 NASDAQ +7.65 SP500 +5.94 NASDAQ Dec/Adv/Vol 1384/1583/1.93 bln NYSE Dec/Adv/Vol 1529/1673/1.19 bln

[UpInArms]

150. since 2002 the U.S. oil import bill has risen by $148 billion

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=2006-03-03T201953Z_01_N03540055_RTRIDST_0_ECONOMY-PETRODOLLARS.XML

WASHINGTON, March 3 (Reuters) - Soaring world oil prices have had a significant impact on rising global imbalances in international trade, and oil exporters now need to play a role in unwinding those gaps, a U.S. Treasury paper said on Friday.

Highlighting the scale to which a trebling of world crude prices since early 2002 has boosted the current account surpluses of the big oil-exporting nations and exaggerated U.S. deficits, the paper said there were many areas for oil-rich countries to aid world rebalancing.

"To the extent that oil exporters' revenues accumulate, global imbalances will be higher than otherwise and oil exporters will need to be part of the adjustment process, just as emerging Asia, the United States, Japan and Europe need to play a role," the paper said.

<snip>

But Friday's paper, billed as the first of an occasional series from the Treasury's International Affairs division, showed that since 2002 the U.S. oil import bill has risen by $148 billion -- more than half the deterioration in its overall current account deficit over that period.

<snip>

Although data indicated that oil price windfalls to a group of the biggest oil exporters had evenly found its way into both foreign exchange reserves and imports, it said there were four main ways in which growing surpluses could be pared back in an environment of sustained oil price rises.

...more...

[converted_democrat]

152. I don't know if you guys have seen this, but I thought I'd post it..

http://www.govexec.com/dailyfed/0306/030206cdam2.htm

Snip-
A little-noticed Treasury Department report sent to congressional leaders in December paints a bleaker picture of the nation's finances than is widely accepted and is beginning to attract attention as lawmakers prepare for election-year budget battles.

According to the 158-page report, the fiscal 2005 federal deficit on an accrual basis was $760 billion, using generally accepted accounting principles that private businesses must use to present their finances.


That is an increase of $144 billion, or 23 percent, over the previous year's deficit of $616 billion. The cost to operate the federal government, including accrued benefits, was $2.95 trillion, versus $2.19 trillion in total revenues, resulting in the $760 billion net operating cost.
--------

I'm not smart enough to understand this on my own, so if someone would explain it to me I'd be thankful.. I see the word bleak in the first paragraph, so I'm assuming that it isn't good news, but beyond that.. :shrug:

[UpInArms]

157. I think they used the word "bleak" because it reflects badly on the GOPpig

Party

also from your link:

According to the 158-page report, the fiscal 2005 federal deficit on an accrual basis was $760 billion, using generally accepted accounting principles that private businesses must use to present their finances.

<snip>

These figures are in stark contrast to the $319 billion deficit reported by Treasury for fiscal 2005, which uses the government's accepted barometer of cash outlays versus revenues. That number represents a $93 billion decrease from the previous year's deficit of $412 billion, which Republicans trumpeted as a vindication of their fiscal policies.

The sharp difference between the reported deficit and actual net operating cost is largely a result of counting accrued benefits owed to veterans and federal employees, just as companies must report their pension obligations.

"Businesses are required by law to use accrual accounting. If you want Congress to be run like a business, you need accrual accounting," said Rep. Jim Cooper, D-Tenn., a member of the Blue Dog Coalition of moderate-to-conservative Democrats.

Cooper said he was irked that the Treasury report was not widely disseminated. "We got more notification on the NSA domestic surveillance thing," he said.

...more...

So they are looking at a $760 Billion Deficit - not the $319 Billion they projected.

Also - this report seems to be blaming the pension system - hmmm...

I wonder if they will throw out the federal pension system just like those corporations have been tossing theirs aside. :eyes:

[EuroObserver]

167. "throw out the federal pension system"

...may go a little way to help cap the deficit currently apparently "debated" in the Senate?

ed: forgot to add: thanks very much for this, converted_democrat, I dunno yet either. It's been added to the pile of printed material for weekend reading/reflection...

[converted_democrat]

172. You're welcome EuroObserver..

:hi:

[converted_democrat]

171. Thank you for explaining.. I saw it posted somewhere else and I wasn't

bright enough to make heads or tails of it..

[UpInArms]

164. U.S. CBO forecasts $371 billion deficit in FY06 (wonder if they use GAAP

or pro-forma?)

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyid=2006-03-03T205647Z_01_WBT004891_RTRIDST_0_ECONOMY-BUDGET-URGENT.XML

WASHINGTON, March 3 (Reuters) - The U.S. budget deficit this year will hit $371 billion, up from an earlier estimate of $355 billion, the Congressional Budget Office said on Friday.

The likely increase was attributed mainly to additional funds requested by the Bush administration for the wars in Iraq and Afghanistan, said the CBO, Congress' nonpartisan budget analyst.

[UpInArms]

154. Ex-Adelphia exec Rigas is off to celebrate

3:29pm 03/03/06 Ex-Adelphia exec Rigas had faced 3 yrs in prison -- reports - MarketWatch.com

3:27pm 03/03/06 Ex-Adelphia exec Michael Rigas to pay $2K fine -- reports - MarketWatch.com

3:25pm 03/03/06 Ex-Adelphia exec to serve 10 mos home confinement -- reports - MarketWatch.com

[UpInArms]

155. US Treasury has no timetable on tax reform -SnowJob

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=2006-03-03T202526Z_01_N03372233_RTRIDST_0_ECONOMY-TAXES.XML

STANFORD, Calif., March 3 (Reuters) - U.S. Treasury Secretary John Snow on Friday said the Bush administration wants to forge ahead with a major revamp of the tax code, but has no specific timetable for turning an advisory panel's recommendations into detailed policy proposals.

<snip>

The President's Advisory Panel on Federal Tax Reform last November sent Snow a proposal that contained a number of controversial reforms, including eliminating deductions for state and local taxes, limiting deductions for home mortgages and capping the tax-preferred status of employer-provided health insurance.

It also recommended reducing the number of tax brackets and eliminating the alternative minimum tax, a parallel tax system aimed at the wealthy but which is increasingly hitting middle-class taxpayers.

The recommendations drew swift criticism from real estate and other industry groups and lawmakers.

Snow declined to provide any hints as to which way the Treasury is leaning on the proposals.

"For us now to say that we like this piece of it or we like that piece of it will invite all sorts of repercussions," he told the conference.

...more...

Get ready to bend over!

[UpInArms]

160. 3:50 EST and all is not looking so bright anymore

Dow 11,034.00 +8.49 (+0.08%)
Nasdaq 2,306.36 -4.75 (-0.21%)
S&P 500 1,288.35 -0.79 (-0.06%)
10-Yr Bond 4.684 +0.46 (+0.99%)

NYSE Volume 1,969,797,000
Nasdaq Volume 2,269,362,000

3:30 pm : Semiconductors have again fallen victim to profit taking. The Nasdaq has recently come back under pressure - and has fallen back into the red. The Dow and S&P remain on positive turf, but they've both moved well off of afternoon levels. In the Dow, General Motors (GM 19.18 -0.23), Hewlett Packard (HPQ 33.59 -0.60), and Verizon (VZ 33.56 -0.44) are the weakest issues. The market's decline can also be partly attributed to the Technology sector's fall (-0.3%) and well-pared gains in both the Financial (+0.1%) and Energy (+0.2%) sectors. DJ30 +34.90 NASDAQ -2.37 SP500 +1.61 NASDAQ Dec/Adv/Vol 1507/1472/2.11 bln NYSE Dec/Adv/Vol 1700/1526/1.31 bln

[Roland99]

166. Meh...minor profit taking for the upcoming NCAA tourney bets

;)

[Zynx]

174. What was amazing was how broad based that selling was.

Stocks in virtually every sector got sold off by relatively similar proportions.

[EuroObserver]

175. ¡Aha!

Thanks, Zynx :eyes:

[Roland99]

169. Negligle changes at the close

DJIA 11,021.60 -3.90
Nasdaq 2,302.60 -8.51
S&P 500 1,287.23 -1.91
Russell 2000 738.44 -1.72
CBOE Volatility 11.96 0.24
30 Yr Bond 4.66 0.04
10 Yr Bond 4.68 0.05

[UpInArms]

177. closing blather

Trading was choppy Friday. Futures trade had indicated an upside open, but a revenue warning from Intel (INTC 20.28 -0.04) just before the bell catalyzed selling. Some broad-based afternoon buying took the indices well above the unchanged mark, but gains were well-pared by the time the closing bell rang. Interest rate uncertainty continues to trouble the market, making gains hard to sustain, and rising Treasury yields helped temper sentiment.

With respect to Intel, the company cut its first quarter revenue outlook to $8.7-9.1 billion, which is below the $9.39 billion consensus estimate. The chip maker cited weaker than expected demand and a slight market segment share loss. Because of the change in revenue expectations, gross margins will be adversely impacted. Reading between the lines, it is clear that Intel is still losing share to Advanced Micro Devices (AMD 39.54 +0.04) - a development we think that has a lot to do with capacity limitations that should ease in the second half of the year. The news was a bearish factor, but its effect lessened over the course of the day. Essentially, it came as not much of a surprise, and it was interpreted as company-specific. The semiconductor companies are in the midst of a cycle upturn, which Novellus (NVLS 26.35 -0.02) underscored with its mid-quarter update last night. The Technology sector (-0.4%), the Nasdaq, and the Philadelphia Semiconductor Index each closed lower, but still showed resilience. We continue to like Intel, which is a suggested holding in our Active Portfolio.

The Industrial sector (+0.4%) fared best today. Transportation was a pocket of relative strength, and General Electric (GE 33.06 +0.21) lent muscle following its reaffirmed Q1 and FY06 guidance. Continued geopolitical tensions, an OPEC minister's comments, and the cartel's upcoming meeting fed supply fears that helped crude rise for its fourth straight session. Along with Industrials, the Energy sector (+0.1%) led trading, but both faced some late-day selling and leadership faded. With the rise in crude, the Discretionary sector (-0.2%) declined. Autos also weighed heavily. A bright spot there was Starbucks (SBUX 35.58 +0.18), which reported better than expected February same-store sales.

Due to profit-taking, Telecommunications closed 0.9% lower. The Financials sector fell to a 0.3% loss that was a big factor behind the market's late-day decline. Interest rate uncertainty continues to plague the market, and affected rate-sensitive areas. Rising bond yields and the yield curve's continued inversion were additional factors that weighed on trade today. The benchmark 10-year declined 13 ticks, and rose to a 4.68% yield.

Separately, the economic front was also a light one. The University of Michigan's revised Consumer Sentiment report for February checked in at 86.7, versus the 87.5 consensus estimate. The February ISM Services Index, meanwhile, jumped to 60.1 from 56.8 in January. Neither data had much effect on trading.DJ30 -3.92 NASDAQ -8.51 SP500 -1.91 NASDAQ Dec/Adv/Vol 1764/1237/2.43 bln NYSE Dec/Adv/Vol 1906/1134/1.57 bln

[EuroObserver]

170. OPEC president says world "oversupplied" with oil

Makes sense to cross-ref this here at this time:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2144330

OPEC President Edmund Daukoru said on Friday that the global oil market is "oversupplied" by about 2 million barrels per day.

"The market is indeed well supplied with crude today," Daukoru told an audience at the National Press Club in Washington, ahead of next week's meeting of the Organization of Petroleum Exporting Countries.

Daukoru's view that the global market had plenty of crude oil differed with that of the United States, the world's biggest oil consuming nation, which believes the market needs more oil.

Daukoru, who is also Nigeria's petroleum minister, said the cartel's spare oil production capacity of 2 million barrels a day has not been able to counter oil price swings caused by market concerns about supply disruptions.

...DU discussion...