IDS World Markets Tues 6th May 08

[aussiebear]

 

 

Closed

 

 

 

 

 

 

 

http://finance.yahoo.com/intlindices

[aussiebear]

 

 

http://money.cnn.com/markets/morning_call/

 

 

 

 

 

 

 

http://www.kitco.com

 

Energy futures

 

Currencies/Au/Ag

[aussiebear]

 

 

An unenthusiastic day so far. All Ords is currently -0.7% with both Financials and Property Trusts hitting the skids, down around 2%. There's a sprinkling of greens, Miners +0.7%, Materials +0.5% and Energy +0.4%.

 

Moderate rises on the maxi miners: BHP +0.5% and RIO +0.9%.. Golds are doing slightly better, Newcrest +1.6%, Newmont +1.5% and Lihir +1.6%. Juniors flat to up.

 

Oil sector mixed: Woodside +2%, Santos -2.5% and Caltex -0.1%.

[aussiebear]

An excerpt from the latest Contrary Investor:

 

"But what has also happened as of late, as credit market turmoil continues to boil, is that Treasury auctions of the last month or so have experienced a paucity of foreign buyers show up to bid. Let's put it this way, if this trend of lackluster response to Treasury auctions on the part of the foreign community were to continue near term for whatever reason, we could indeed be looking at a serious issue for Treasury yields (meaning they have fallen too far to the downside to attract foreign interest). We'll just have to see what happens."

 

 

 

 

http://www.contraryinvestor.com/mo.htm

[aussiebear]

 

 

Well it was all a bit tedious today. All Ords closed -0.3% with sectors in wildly varying shades of green and red, similar to yesterday's action. IT barrelled into the lead, +1.3% followed by Miners +1.1%. Property Trusts remained mired, -2.1% with Financials not far behind -1.7%.

 

Miners continued to hold up: BHP +0.7%, RIO +2.1%. In the golds, Newcrest +2.5%, Newmont +1.1% and Lihir +1.6%. Juniors mixed.

 

Oils remained mixed: Woodside +1.3%, Santos -2.5% and Caltex +2.1%.

 

Asia all over the place: China -0.8%, Honkers flat, India -0.4%, Sth Korea +0.6%.

 

 

Over to UK/Europe:

 

 

 

 

 

http://finance.yahoo.com/intlindices?e=europe

[aussiebear]

Indonesia Studying Plan to Quit OPEC as Oil Production Declines

 

May 6 (Bloomberg) -- Indonesia is ``studying'' a plan to quit its membership of the Organization of Petroleum Exporting Countries as the Southeast Asian nation consumes more oil than it produces, Energy Minister Purnomo Yusgiantoro said.

 

The government may leave the organization next year at the earliest because it has already paid membership fee for 2008, Purnomo told reporters in Jakarta today.

 

Indonesia is the only OPEC member from Southeast Asia. The region's biggest economy imports about one-third of its oil product needs because it lack adequate refining capacity and faces falling oil output. The government has lowered its oil sales estimate for 2008 to 927,000 barrels a day from 950,000 barrels a day.

[aussiebear]

Australia Keeps Key Rate Unchanged at 12-Year High

 

May 6 (Bloomberg) -- Australia's central bank left interest rates unchanged for a second month, saying there is mounting evidence the highest borrowing costs in 12 years will slow the economy enough to cool the fastest inflation since 1991.

 

Governor Glenn Stevens kept the overnight cash rate target at 7.25 percent in Sydney today, as forecast by 24 of 25 economists surveyed by Bloomberg News.

 

Today's decision indicates policy makers judged four interest rate increases in seven months will bring inflation back under the bank's 3 percent limit after reports in the past month showed consumer and business confidence have slumped, retail sales have slowed and home building has fallen.

[aussiebear]

South Africa May Scrap Value-Added Tax on More Food

 

May 5 (Bloomberg) -- The South African government is considering scrapping value-added tax on a wider range of food items and issuing vouchers to the poor to help them get enough to eat as prices of grain and other essentials rise.

 

Fifteen categories of food, including brown bread, dried corn, eggs, fruit and vegetables do not currently incur a 14 percent value-added tax.

 

The poorest 60 percent of South Africa's 48.5 million people spend more than a quarter of their income on food, according to the Finance Ministry. Food retailers and producers have been encouraged by the government to curb price increases voluntarily.

[roxy]

What to do with Countrywide?

Posted by theroxylandr under Economics, Investing (edit this)

 

 

The trouble in BOA-CW deal came at interesting moment. As I?ve noted here, the T-bonds are at the most critical juncture in 10 months. Too much complacency (VIX sub 20 for a while) and too much T borrowings are about to produce a major T-bond ?sell? signal.

 

There are three major buyers of T-bonds: domestic investors looking for safe heaven, FCBs and speculators. If the chart bends the third group will be out, the first group will shrink. The T-bonds will fall until they find a firm support, but that could be a disaster for the economy.

 

I?ve demonstrated my concern. Now Bernanke needs to show his concern. The very good and sure way to save the treasury market will be to let Countrywide to fail. They are not so important for the economy and it would be a fair price to save the rest of us. Think of it as of timely sacrifice :-)

 

http://theroxylandr.wordpress.com/2008/05/...th-countrywide/

[Trader Joe]

"Legg Mason can thank the credit crunch for the loss. Legg's flagship Legg Mason Value Trust mutual fund, managed by Bill Miller, was down 19.7% in the quarter ended March 31, its worst quarter ever relative to its peers. Mr. Miller had big misses in stocks like Bear Stearns."

 

BWAHAHAHAHAHA!!!!

 

wsj.com

[Peek Paper]

Looks like No Country for the Old Bull today ...

 

FNM Loss Wider Than XXXpected

 

Was this an actual slip by HeloBen, or is it the writer's...

"In his remarks, Bernanke said that, "the economic case for trying to avoid disclosure is strong" if the homeowner wants to stay in the home. "

Bernanke gives green light to Frank foreclosure bill

661038[/snapback]

suppose your

enclosure foreclosure disclosure

eschews your

composure

to hose your

 

realtor ?

 

that's gotta suck ...

 

- Faulkner

 

(check out the plate)

[BusKow]

"If there was any fault that could be given to the Commission it was the failure to understand that the risk management in the collateralized debt area was inadequate. The Commission is not alone in that." Mr. Ruder says the Federal Reserve and investment banks also didn't realize the risk of the positions taken. Investment banks have written off billions of dollars tied to these positions.

 

SEC to Come Under Scrutiny

[Trader Joe]

...the headline reads:

 

Target to Sell Part of Credit-Card Arm

 

...however, the reality is:

 

"J.P. Morgan is buying a 47% stake in Target's credit-card receivables, but the deal is structured more like a loan than a sale. Target is expected in years five and six to repay the investment through the performance of the credit-card portfolio."

 

...so basically Target borrowed against it's future receivables, sounds like a s basic factoring agreement to me, which when all boiled down it's a loan.

 

What a friggin' joke!

 

wsj.com

[Sudaca]

 

Target to Sell Part of Credit-Card Arm

 

 

 

wsj.com

661061[/snapback]

 

My God. What has the world come to. First they twist the customer's arm in order to get paid. Then, after no progress, and twisting the arm out of its socket, they keep the arm and are now trying to sell it in parts. Ugh. It's like a CDO of foreclosed homes.

[Drano]

My God.  What has the world come to.  First they twist the customer's arm in order to get paid.  Then, after no progress, and twisting the arm out of its socket, they keep the arm and are now trying to sell it in parts.  Ugh.  It's like a CDO of foreclosed homes. 

661062[/snapback]

They shoulda just hired a better collection agency.