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To: Keith Feral who wrote (8579)5/10/2012 5:27:54 PM
From: Oblivious
   of 13645
 
MHR 4.75. I might get interested if it drops further.

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To: ecrire who wrote (8578)5/10/2012 5:29:22 PM
From: Brian Sullivan
   of 13645
 
Gross Says QE3 Getting Closer as Goldman Sees Easing
By Wes Goodman - May 9, 2012 3:22 AM ET

Pacific Investment Management Co.’s Bill Gross and Jan Hatzius at Goldman Sachs Group Inc. (GS) say investors should prepare for additional bond purchases by the Federal Reserve to combat a slowing U.S. economy.

bloomberg.com 

A decision to buy more debt is “getting closer,” Gross, who runs Pimco's Total Return Fund, the world’s largest mutual fund, wrote on Twitter yesterday. Hatzius, the chief economist at New York-based Goldman Sachs, predicted in a report the same day that the Fed will announce additional monetary easing when it meets in June.

Prospects for a third round of central bank asset purchases, known as quantitative easing, or QE, increased after a Labor Department report May 4 showed U.S. employers added 115,000 jobs in April, the smallest gain in six months. Europe’s debt crisis is threatening to slow global growth. Ten-year Treasury yields fell to 1.81 percent yesterday, approaching the record low of 1.67 percent set Sept. 23.

“In such an uncertain environment, taking out a bit more insurance still looks like the sensible choice for U.S. monetary policy makers,” Hatzius wrote. “We have stuck with our forecast of some additional monetary easing” at the Fed’s policy meeting June 19 to June 20.

Bond Purchases The central bank bought $2.3 trillion of bonds in two rounds of quantitative easing, known as QE1 and QE2, from December 2008 to June 2011. The Fed is also replacing $400 billion of short-term Treasuries in its holdings with longer- term debt to keep borrowing costs down, under a program scheduled to end next month.

Policy makers have pledged to keep the target for overnight bank lending as low as zero until at least late 2014.

Two Fed officials have questioned whether additional easing will work.

Fed Bank of Dallas President Richard Fisher said yesterday that a drop in equity prices is no reason for the central bank to intervene.

“Markets are manic depressive, they come and go,” Fisher told reporters when asked if slumping markets and slower-than- expected employment gains had changed his outlook for Fed policy. “The key to success here is not further monetary accommodation.”

Shares Slumping The Standard & Poor’s 500 Index fell to its lowest level in two months yesterday.

Fed Bank of Richmond President Jeffrey Lacker said May 7 that much of U.S. unemployment results from structural weaknesses such as inadequate training that can’t be fixed by Fed stimulus. The U.S. jobless rate of 8.1 percent is the lowest in three years.

“Some commentators are urging the Fed to take additional action as long as the unemployment rate remains elevated,” Lacker said. “But if elevated unemployment reflects largely fundamental factors rather than insufficient spending, such stimulus might have little impact on unemployment and instead just raise the risk of pushing inflation up.”

Lacker votes on monetary policy this year while Fisher does not.

The U.S. economy is “dreary,” Hatzius wrote.

Gross domestic product slowed to an annual rate of 2.2 percent in the first quarter from 3 percent in the prior three months, the Commerce Department reported April 27.

Greece Struggling Politicians in Greece struggled to form a new government, raising concern the nation will abandon the euro as its currency.

Benchmark 10-year Treasury notes yielded 1.82 percent today as of 8:17 a.m. in London, according to Bloomberg Bond Trader prices. The average over the past decade is 3.83 percent. The 2 percent security due in February 2022 changed hands at 101 18/32.

Low government rates have led investors to look for more attractive yields outside the sovereign bond market.

Treasuries have returned 0.6 percent this year, eclipsed by a 4.8 percent rally for an index of U.S. investment grade and high-yield company debt, according to Bank of America Merrill Lynch data.

“Risk markets need more ammo if they are to stay up,” Gross, who is based in Newport Beach, California, wrote on Twitter.

Gross’ Total Return Fund has returned 4.8 percent this year, beating 98 percent of its peers, according to data compiled by Bloomberg. Pimco is a unit of the Munich-based insurer Allianz SE. (ALV)

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To: Keith Feral who wrote (8579)5/10/2012 5:35:30 PM
From: Oblivious
   of 13645
 
4:09PM Molycorp beats by $0.01, misses on revs ( MCP) : Reports Q1 (Mar) earnings of $0.18 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.17; revenues rose 222.5% year/year to $84.5 mln vs the $116.21 mln consensus. Co re-affirms its annual production of REO equivalent products to be in a range of 8,000 mt to 10,000 mt for the full year across all of its facilities. The Company continues to believe it is well positioned for year-over-year sales growth, given existing customer orders and a growing pipeline of global business opportunities. As indicated in the previous quarter's financial results call, the Company conducted and completed an extensive formal review of the Project Phoenix capital expenditure budget. The result of that analysis showed that the Company anticipates no material changes to its Project Phoenix EPC capital budget of $895 million, assuming that the measures it has implemented to mitigate certain adverse cost trends are successful and there are no unanticipated project close out events. Certain additional capital expenditures for other capital projects related to operations at Mountain Pass are expected to total approximately $105 million... The co continues to generate positive cash flow from operations, maintain sufficient working capital to execute on its stated strategy, and its balance sheet remains strong. Co also is reiterates its prior guidance related to cost of goods sold (COGS) related to Project Phoenix ramping, as well as its stated higher production costs on a consolidated basis. "It appears the highly volatile pricing environment we experienced in 2011 has moderated, and that is a very positive development for our business. Customer orders are steadily picking up across the industry and pricing has not only stabilized but has increased in some products. We continue to strengthen the reliability of our overall supply chain through Project Phoenix, and we are positioned to broaden and expand that supply chain through our proposed acquisition of Neo Materials..."

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To: Oblivious who wrote (8582)5/10/2012 6:08:30 PM
From: Keith Feral
   of 13645
 
JPM trading losses are probably due to the Whale. Bank trading profits may not be at Q1 levels, they never are.

Lot's of traders have were getting slaughtered by the Whale last quarter. Obviously, they got in over their heads, but they are walking out with a $1 billion net trading loss for the quarter. S & P down 11 points on JPM's $1 billion loss is a massive overreaction.

I hope we get some comments by other banks they aren't having MTM losses like JPM. That would put a nice capitulation bottom in for the market tomorrow. I wouldn't be surprised if alot of banks were on the other side of JPM's trades. The Whale created alot of enemies last quarter.

3.3% yield on JPM tomorrow looks like a good entry point vs 2.6% for WFC.

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To: Keith Feral who wrote (8583)5/10/2012 6:16:05 PM
From: Oblivious
   of 13645
 
E- mini S&P futes down 9.50.

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To: Keith Feral who wrote (8583)5/10/2012 6:26:03 PM
From: Oblivious
   of 13645
 
The drop in JPM is over done. Monday is the day.

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To: Keith Feral who wrote (8583)5/10/2012 6:26:36 PM
From: Brian Sullivan
   of 13645
 
http://www.bloomberg.com/news/2012-05-10/jpmorgan-chase-says-cio-unit-suffered-significant-loss.html JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon said the firm lost about $2 billion on synthetic credit securities after an “egregious’” failure in its chief investment office, which the bank says focuses on hedging.

“This portfolio has proven to be riskier, more volatile and less effective as an economic hedge than the firm previously believed,” the New York-based company said today in a quarterly securities filing. JPMorgan declined 5.5 percent to $38.50 in extended trading at 5:55 p.m. in New York.


The Whale:

http://online.wsj.com/article/SB10001424052702303299604577326031119412436.html

In recent weeks, hedge funds and other investors have been puzzled by unusual movements in some credit markets, and have been buzzing about the identity of a deep-pocketed trader dubbed "the London whale."

That trader, according to people familiar with the matter, is a low-profile, French-born J.P. Morgan Chase & Co. employee named Bruno Michel Iksil.

Mr. Iksil has taken large positions for the bank in insurance-like products called credit-default swaps. Lately, partly in reaction to market movements possibly resulting from Mr. Iksil's trades, some hedge funds and others have made heavy opposing bets, according to people close to the matter.


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To: Brian Sullivan who wrote (8586)5/10/2012 6:34:44 PM
From: Brian Sullivan
   of 13645
 
John Carney on the "Whale" cnbc.com 

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To: Brian Sullivan who wrote (8587)5/10/2012 6:35:43 PM
From: Brian Sullivan
   of 13645
 
Here’s a quick timeline of events that surround the so-called London Whale which has run into trouble at J.P. Morgan:

April 5 — The Wall Street Journal reports Bruno Michel Iksil, a trader at J.P. Morgan known in the market as the “London Whale,” made large bets on credit derivatives. J.P. Morgan says his unit is meant to “hedge structural risks.”

April 10 — WSJ reports the J.P. Morgan trader had stopped making trades.

April 13 — J.P. Morgan reports first-quarter earnings. CFO Doug Braunstein says the bank is “very comfortable” with the unit’s positions. CEO Jamie Dimon calls media coverage on the matter a “tempest in the teapot.”

May 10 — J.P. Morgan says it has taken $2 billion in losses so far in the second quarter related to the trading. Mr. Dimon calls the strategy “flawed, complex, poorly reviewed, poorly executed and poorly monitored.” Among the things Dimon says he should’ve paid more attention to: “newspapers.”

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To: Keith Feral who wrote (8583)5/10/2012 6:40:07 PM
From: Oblivious
   of 13645
 

SodaStream to Present at the 2012 Citi Global Consumer Conference on May 23, 2012
Last update: 5/10/2012 6:30:00 AM
AIRPORT CITY, Israel, May 10, 2012 /PRNewswire via COMTEX/ -- SodaStream International, Ltd. (SODA) today announced that the Company will participate at the 2012 Citi Global Consumer Conference taking place at the New York Palace Hotel. On Wednesday, May 23, 2012, at 10:45 a.m. ET, Yonah Lloyd, Executive Director of Corporate Development and Communication, will present and discuss the Company's vision, growth strategy and global leadership position in the home carbonation industry.

A live webcast will be available at the investor relations section of SodaStream's website, . To listen to and view the webcast, please visit the site at least 15 minutes prior to the beginning of the scheduled presentation to register, download and install necessary multimedia streaming software. For those who cannot listen to the live broadcast, a replay will be accessible at the site for 30 days following the event.
About SodaStreamSodaStream manufactures beverage carbonation systems, which enable consumers to easily transform ordinary tap water instantly into carbonated soft drinks and sparkling water. Soda makers offer a highly differentiated and innovative solution to consumers of bottled and canned carbonated soft drinks and sparkling water. Our products are environmentally friendly, cost effective, promote health and wellness, and are customizable and fun to use. In addition, our products offer convenience by eliminating the need to carry bottles home from the supermarket, to store bottles at home or to regularly dispose of empty bottles. Our products are available at more than 50,000 retail stores in 42 countries around the world. For more information on SodaStream, please visit the Company's website: .

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