Thursday, April 03, 2014

Today's Headlines

Bloomberg: 
  • Draghi Says Officials Debate QE to Fight Deflation Risk. Mario Draghi said the European Central Bank is ready to move deeper into uncharted territory in the fight against deflation, with policy makers debating what form of quantitative easing they might need to use. “There was a discussion about QE, it wasn’t neglected,” the ECB president said at a press conference in Frankfurt today after keeping the benchmark interest rate unchanged at a record-low 0.25 percent. “There are obviously different preferences about which QE would be more effective. We will continue working on that in the coming weeks.
  • Draghi Quips IMF Should Extend Its ‘Generous’ Advice to Fed. European Central Bank President Mario Draghi mused today that the International Monetary Fund offers public opinions on how he should conduct monetary policy in a way that it doesn’t with the Federal Reserve. Asked about comments yesterday by IMF Managing Director Christine Lagarde, he told reporters in Frankfurt that the fund has been “extremely generous in its suggestions on what we should do or not do.” Draghi said that “frankly, I would like the IMF to be as generous as they’ve been towards us with also other monetary policy jurisdictions, like for instance issuing statements just a day before an FOMC meeting would take place.” 
  • NATO Condemns Russia’s ‘Propaganda’ as Lavrov Cries Foul. NATO accused Russia of spreading “propaganda” after Foreign Minister Sergei Lavrov said the U.S.-led alliance broke a commitment to limit its forces in eastern European countries. Russia, not NATO, is trampling on pledges made in the 1990s by wresting control of Crimea and massing troops near Ukraine’s borders, North Atlantic Treaty Organization Secretary General Anders Fogh Rasmussen told reporters today in Brussels. “This is just another piece of Russian propaganda and disinformation,” Rasmussen said. “Russia is violating every principle and international commitment it has made, first and foremost the commitment not to invade other countries.”  
  • As Russia Stumbles, Gazprom Comes Up $910 Billion Short. Back in April 2007, in the midst of the greatest commodities rally on record, OAO Gazprom’s (OGZD) deputy chief executive officer, Alexander Medvedev, was talking big. Russia’s natural-gas export monopoly aspired to be the world’s largest company, he said while offering up a prediction: its market value would quadruple to $1 trillion in as little as seven years. 
  • Emerging-Market Stocks Halt Nine-Day Advance on Warning. Emerging-market stocks fell, snapping a nine-day advance, amid concern that the crisis in Ukraine will escalate after NATO leaders warned Russia has troops on a high state of readiness on its neighbor’s border. The MSCI Emerging Markets Index dropped 0.5 percent to 999.65 at 1:12 p.m. New York.
  • Europe Stocks Little Changed as Draghi Reiterates Pledge. Stocks in Europe were little changed, after climbing for seven days, as European Central Bank President Mario Draghi said policy makers are prepared to add further measures to support the euro-area economy if necessary. BTG Plc added 1 percent after saying annual sales will be near the top of its forecast range. A gauge of European banks climbed to its highest level since January. Nokian Renkaat Oyj slipped 2.7 percent after cutting its 2014 profit and sales estimates because of weaker Russian demand. Pernod Ricard SA fell 1.2 percent as Credit Suisse Group AG recommended selling the stock. The Stoxx Europe 600 Index advanced 0.1 percent to 337.25 at the close of trading.
  • Brent Crude Rises From Five-Month Low on Libya. WTI for May delivery climbed 41 cents, or 0.4 percent, to $100.03 a barrel on the New York Mercantile Exchange. Prices touched $99.07 in intraday trading before rebounding. The volume of all futures traded was 15 percent below the 100-day average.
  • ABS: Yield Hunt Boosts Subprime Auto Bonds, Room to Run, DB Says. Subprime auto ABS continues to benefit from the hunt for yield, Deutsche Bank analysts Elen Callahan and Kayvan Darouian write. Many deals oversubscribed, often upsized. Investors comfortable with asset's recent performance are moving down to first-loss piece for yield.
Fox News:
CNBC:
  • Sotheby's? The best indicator you've never heard of. (video) Need proof of a speculative bubble? Closely watched hedge fund manager Jim Chanos says he has the best barometer for gauging where 1 percenters are putting their money, given the Federal Reserve's easy money policies that have been fueling their portfolios to record highs.
  • China 'panicking' in face of sluggish growth: Chanos. (video) Short-seller Jim Chanos says China is "panicking" in the face of a stalling economy. As the fast-growing economy now deals with a lending bubble, Chanos told CNBC's "Squawk Box" on Thursday his long-running bearish outlook is now coming to fruition.
ZeroHedge:
Business Insider: 
Boston Globe:
  • Biotech sector fears financial squeeze. As the pressure to make health care more affordable mounts, Massachusetts biotech companies and medical device makers are warning that lower costs for consumers could be bad for business. Companies and investors in the life sciences cluster — a crucial part of the state’s economy — say that new restrictions on payments for drugs and other medical products will stifle innovation and harm patients, according to a report scheduled to be released Thursday at a state biotechnology gathering. In some ways, it puts the industry at odds with what has become a paramount social cause: providing medical care for everyone at reasonable prices. But the companies say their products, though costly, save money in the long term by keeping people out of the hospital. If companies can no longer make reasonable returns on their investments, “this entire sector could disappear overnight,” said Harvard Business School professor Vicki Sato, a molecular and cell biology specialist who advised Health Advances on the study.
Focus News:
Reuters:
Telegraph:

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