STOCK MARKET WATCH, Monday 8 August

[ozymandius]

Monday August 8, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 166 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 231 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 295 DAYS
DAYS SINCE ENRON COLLAPSE = 1352
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
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

AT THE CLOSING BELL ON August 5, 2005

Dow... 10,558.03 -52.07 (-0.49%)
Nasdaq... 2,177.91 -13.41 (-0.61%)
S&P 500... 1,226.42 -9.44 (-0.76%)
10-Yr Bond... 4.39% +0.07 (+1.69%)
Gold future... 442.80 -0.90 (-0.20%)

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

[ozymandius]

1. WrapUp by Tim W. Wood

THE DOW REPORT
Sentiment: Does It Matter Anymore?

August marks the 20th month in which the Industrials continue working back and forth within approximately a 6% trading range. The upper limit of this range is 10,700 and the lower limit is 10,100. There have been two false breaks through the upper limits of this trading range and five false breaks to the down side. The break in April, as marked in red, carried the averages below their January lows creating a confirmed “Secondary” Dow theory sell signal. This was the most technically damaging break down since March 2004. But, once again the Industrials rebounded out of this false break and have since invalidated the “Secondary” sell signal and are re-testing the upper boundaries of this trading range.

-cut-

Well, let’s go back to the 1998 to 2002 time frame. Even the bulls of that time now know, with the benefit of hindsight, that the 1999 to 2001 period was a topping/distribution process. The reality is that this marked the end of the greatest bull market advance ever seen. On a shorter term basis this trading range and topping/distribution process marked the end of the advance that began out of the 1998 4-year low.

During this topping process the market spent some 29 months in a trading range very similar to the one today. Trouble was that very very few people recognized this trading range to be the topping/distribution process that it was. This is evident because during this time frame Investors Intelligence recorded 152 consecutive weeks with the Bull/Bear ratio greater than 1. Yes, this was the Most bullish sentiment readings ever recorded in terms of consistent bullishness and it occurred right at the top of the greatest bull market known to man.

But, as usual at major turn points, this persistent bullishness served as just another indication that the majority were about to be wrong and in a very big way. It was in the summer of 2001 that I used my cycles work to give specific targets that could be expected as the market dropped into the 2002 4-year cycle low. My target was hit almost perfectly with the Industrials, exceeding that target on the down side by 202.57 points. Very few listened, but those who did were rewarded handsomely.

more...

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

[UpInArms]

2. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 87.79 Change -0.27 (-0.31%)

Dollar Retreat

http://www.dailyfx.com/index.php?option=com_content&task=view&id=2711&Itemid=39

The cardinal rule of trading is to expect a turn in prices if the tradable can’t rally on good news. Last week was a prime example of this set-up as US economic data continued to post good results, but the EUR/USD ignored the sunny reports and pushed higher each day. Once the pair broke the 1.2250 barrier after failing to do so four times prior in the past month, the floodgates opened and it quickly raced to 1.2400 before retreating slightly after Friday’s better than expected NFP numbers. The NFPs printed 207K vs. 180K with May and June readings revised upward as well. Most analysts were duly impressed with the data, but a peek underneath the numbers reveals that most of the jobs were in the retail sector – hardly a bastion of high wages and productivity. Nevertheless, the data suggests that US consumer demand is alive and well as people continue to spend money on food, drink and travel.

Next week is truly as toss-up as the battle in the pair centers around the dollar positive effects of the Fed rate hike vs. the negative implications of a widening Trade Balance which given the high price of crude in June, could hit $60 Billion. Advanced Retail sales may tip the price action in favor of the greenback if it beats last months 1.7% gain.

...more...

Postal Reform Fails But Yen Rallies

http://www.dailyfx.com/index.php?option=com_content&task=view&id=2721&Itemid=39

In a classic case of buy the rumor sell the fact USD/JPY rallied despite the fact the Japanese Post office deregulation vote failed in the Upper House of the Japanese parliament and Prime Minister Koizumi true to his word called general elections for September 11th. By early European trade USD/JPY was trading at 111.65 fully 100 points lower than the highs achieved right after the news broke. Although conventional wisdom states that a country’s currency should weaken in times of political turmoil, this time the story may be different. For starters Mr. Koizumi is in no danger of losing the popular vote and some analysts even claim that the election could be beneficial to the yen in the long term if it brings more reform minded politicians into the Parliament. Nevertheless political outcomes can always surprise and until Mr. Koizumi’s mandate is assured USD/JPY is unlikely to trade outside of the 110-113 range that its has occupied for the past six weeks.

Meanwhile, the euro has shrugged off the strong US NFP numbers on Friday and looks ready to challenge the 1.2400 barrier once again. The currency received a boost from better than expected Retail PMI data which printed at 51 solidly above the 50 boom/bust level and significantly higher than the 49.1 reading from last month. Most impressive was the 52.2 result from Germany suggesting that the long dormant German consumer may be finally coming out of his hibernation. Finally, according to IFR, the euro continued to attract Middle Eastern buyers flush with petro-dollars looking for asset diversification.

...more...

Have a Great Day Marketeers!

[UpInArms]

3. Crude futures touch new record (at $62.90 bbl)

http://www.marketwatch.com/news/story.asp?guid=%7B85CE5828%2DF4DA%2D42D4%2DA8F6%2D89FEC27CAFFD%7D&siteid=mktw

LONDON (MarketWatch) - Crude-oil futures touched another record in electronic trading Monday as supply concerns continue to push prices higher, as well as the closure of a U.S. embassy in Saudi Arabia.

Front-month contracts traded as high as $62.90 and were recently up 39 cents to $62.70 a barrel.

On Sunday, the U.S. embassy in Riyadh said it was closing until Wednesday amid an unspecified security threat.

Crude-oil futures climbed Friday and logged a weekly gain of about 3% as refinery output problems, five weeks of falling U.S. gasoline inventories and strong economic data fed concerns that demand will outstrip supplies.

Traders are beginning to realize that even if the Organization of the Petroleum Exporting Countries are able to produce more oil, the market won't be able to handle refining it fast enough, according to Michael Fitzpatrick, an analyst at Fimat USA.

...more...

[UpInArms]

4. After Tax Break Approval - Flextronics layoffs 100

http://memphis.bizjournals.com/memphis/stories/2005/08/08/story1.html

Flextronics Logistics USA will be cutting almost 100 jobs in Memphis beginning in September -- virtually the same number of jobs it said it would produce a year earlier when it lobbied for tax breaks from a local board.

Flextronics notified the Tennessee Department of Labor & Workforce Development two weeks ago that it would begin laying off 96 workers in Memphis on Sept. 5.

Flextronics currently employs more than 1,400 people between four facilities in Shelby County totaling about 1.4 million square feet.

Last August, the Industrial Development Board of Memphis and Shelby County approved five years' worth of payments-in-lieu-of-taxes for the company, marking Flextronics' third PILOT deal in Memphis.

In return for the PILOT, Flextronics promised it would invest more than $15 million and create 100 new jobs at its new 437,000-square-foot facility at 6380 Holmes, where it provides forward and reverse logistics for a variety of consumer electronic products.

...more...

[UpInArms]

5. Delphi Loses $338 Million, To Consider Bankruptcy Filing If Gm Talks Fail

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&dateid=38572.3228772338-840153425&

NEW YORK (MarketWatch) -- Delphi Corp. (DPH) Monday reported a second-quarter loss of $338 million, or 60 cents a share, down from a year-ago profit of $143 million, or 25 cents a share. The latest results include $49 million worth of restructuring charges. Revenue fell in the three months ended June 30 to $7 billion from $7.5 billion in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a loss of 51 cents a share in the June quarter on revenue of $7.14 billion. The Troy, Mich., automotive parts maker added that it continues talks with both its unions and General Motors (GM) , its biggest customer, about restructuring plans but it cautioned that, if these talks don't lead to a satisfactory plan, it will consider other strategic options, including reorganization of its U.S. businesses under Chapter 11 of the U.S. Bankruptcy Code. Looking ahead, Dephi said it expects continued lower production levels in North America for the third quarter. It sees revenue of between $6.1 billion and $6.3 billion in the September period with margins lower than in the first half of the year due to high fixed costs in its U.S. legacy business. Delphi also forecast negative cash flow from operations in the third quarter. The stock closed Friday at $4.96, down 14.2%.

[UpInArms]

11. Delphi, Visteon post quarterly losses

http://www.marketwatch.com/news/story.asp?guid=%7BEC799D8B%2DE174%2D4051%2D9FF0%2D2591C57B8C55%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Delphi Corp. and Visteon Corp. on Monday reported quarterly losses as the auto-components companies struggled with accounting issues and waning vehicle production at their biggest American customers.

<snip>

Visteon Corp. (VC: news, chart, profile) on Monday said it expects a loss of $1.2 billion, or $9.49 a share, in the second quarter on sales of $5 billion. The Van Buren Township, Mich., auto-parts maker said this outlook reflects previously disclosed asset impairment charges of $1.1 billion, or $9.01 a share.

Visteon had been expected to lose 78 cents a share with revenue of $5.01 billion, according to Thomson First Call.

...more...

Yep - that's $1.2 BILLION in LOSS

[UpInArms]

6. Tecumseh swings to loss on impairment charge

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38572.3233079051-840153439&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - Tecumseh Products Co. (TECUA) reported a second-quarter net loss of $122.5 million, or $6.63 a share, compared with income of $4 million, or 22 cents a share a year earlier. Sales fell to $461.9 million from $484.2 million. The compressor and engine maker said its electrical components business incurred a $108 million impairment charge, partly because of lower sales and the closure of one plant. Results in the second half of 2005 should improve but stay below levels for the same period in 2004, Tecumseh said. The stock gained 20 cents Friday to $28.47.

[UpInArms]

7. Buffett's Berkshire Says Probe Expanded to Its Own Accounting

http://quote.bloomberg.com/apps/news?pid=10000103&sid=atOIsXyTLVdk&refer=news_index

Aug. 8 (Bloomberg) -- Warren Buffett's Berkshire Hathaway Inc. said authorities who have been probing whether it helped American International Group Inc. improperly record reinsurance policies are also examining Berkshire's own accounting.

Some of Berkshire's insurance units, which include General Re Corp., were asked how they have accounted for a type of reinsurance that can be abused to manipulate earnings, Berkshire said in an Aug. 5 earnings report. The inquiry earlier focused on how AIG, the world's largest insurer, used a reinsurance contract with General Re to overstate reserves for claims by $500 million. Berkshire's second-quarter profit rose 13 percent.

The disclosure suggests state and federal prosecutors may be widening their probe beyond whether Omaha, Nebraska-based Berkshire helped clients such as AIG misstate their finances, said Christopher Bebel, a former federal prosecutor. Buffett said in April that General Re's potential liability rested on whether it had ``knowing participation'' in clients' misdeeds.

``The accounting treatment applied by its own subsidiaries is being questioned,'' said Bebel, who now practices law in Houston. ``Berkshire Hathaway has always been viewed as a company that's above the fray and operates on a higher level.''

<snip>

AIG corrected its accounting of the General Re transaction because it had assumed no real risk from General Re, a prerequisite to booking the $500 million as reserves for claims. Unlike AIG, General Re accounted for it as a series of deposits and loans, rather than reinsurance, because of the lack of risk.

...more...

[UpInArms]

8. Diebold Upheaval in Progress

Is CoinGate getting closer?

8:10am 08/08/05 DIEBOLD SVP AND CFO GESWEIN RESIGNS

8:10am 08/08/05 DIEBOLD'S GESWEIN NAMED REYNOLDS & REYNOLDS CFO

8:11am 08/08/05 DIEBOLD NAMES CONTROLLER, KRAKORA, INTERIM CFO

edited to add link and blurb:

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38572.3476450579-840154878&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- Diebold Inc. (DBD) said Monday that Chief Financial Officer and Senior Vice President Gregory Geswein will resign Aug. 12 to come fincancial chief at Reynolds and Reynolds Co. (REY) . Diebold said Kevin Krakora, vice president and corporate controller, has been named interim finance chief until a successor is named.

[UpInArms]

12. or maybe the stolen Ohio vote is catching notice?

http://www.independent-media.tv/item.cfm?fmedia_id=11549&fcategory_desc=Under%20Reported

excerpt:

- As was the case in Florida, the secretary of state (Kenneth Blackwell, in Ohio), who is in charge of elections, was also the co-chair of the state's Bush-Cheney campaign.

- In a technique reminiscent of the semantic gymnastics of pre-Civil Rights Act election officials, Blackwell replaced the word "jurisdiction" with "precinct" in an

electoral directive that would ultimately result in perhaps tens of thousands of provisional ballots - votes cast mainly by low-income residents - being disallowed.

- Blackwell initially rejected thousands of voter registrations because they were printed on paper that was, according to him, the wrong weight.

- In conservative, Bush-friendly Miami County, voter turnout was an Uzbekistan-esque 98.55 percent.

- In Warren county, election officials locked down the administration building and prevented reporters from observing the ballot counting, citing a "terrorist threat" (described as being a "10" on a scale of 1 to 10) that had been reported to them by the FBI. The FBI made no such report. Recounts conducted during this lockdown resulted in increased votes for Bush.

- In Franklin County, 4,258 votes were cast for Bush in a precinct where there were only 800 registered voters.

...more at link...

[UpInArms]

9. Standard Motor Products swings to loss

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38572.3436570949-840154608&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Standard Motor Products Inc. (SMP) on Monday said its swung to a second-quarter net loss from continuing operations of $1.3 million, or 7 cents a share, from a year-ago profit $7.5 million, or 38 cents. Excluding charges for asset impairment and integration costs, earnings from continuing operations would have been 4 cents a share. Sales for the period ended June 30 fell to $226.5 million from $235 million in last year's second quarter. The Long Island City, N.Y.-based auto parts company's stock closed Friday at $12.75, up 43 cents.

[ozymandius]

10. pre-open blather

8:30AM: S&P futures vs fair value: +3.1. Nasdaq futures vs fair value: +4.0. Still shaping up to be a higher open for the cash market as futures indications continue to trade above fair value... Even with earnings season coming to a close, the absence of notable economic data this morning has kept earnings reports front and center... Dynegy (DYN) has swung to a profit and Visteon (VC) has reported a narrower than expected loss while problems at Delphi (DPH), which reported a Q2 loss of $0.60 (consensus -$0.51) and guided Q3 revenues below forecasts, continue

8:00AM: S&P futures vs fair value: +3.1. Nasdaq futures vs fair value: +4.0. Futures market versus fair value suggesting a higher open for the cash market as M&A activity offsets a new record high ($62.90/bbl) in oil... Reports that Cisco (CSCO) may be mulling a bid for Nokia (NOK), coupled with E*Trade's (ET) $700 mln cash bid for Harrisdirect, has helped improved sentiment following two consecutive market declines that shaved an average of 1.6% off the major indices

[UpInArms]

13. Something Smells Funny on This One

WCI Communities net rises 294%

http://www.marketwatch.com/news/story.asp?guid=%7B81F9DE01%2D7B24%2D4BAE%2D9570%2DABFC9F531FD3%7D&siteid=mktw

BOSTON (MarketWatch) -- WCI Communities Inc. said Monday that profit nearly quadrupled as the company sold a sizable chunk of land in the hot Florida housing market.

The Bonita Springs, Fla.-based builder of homes and towers said net income in the second-quarter rose 294.2% to $75.3 million, or $1.61 a share, compared with $19.1 million, or 42 cents a share, in the year-ago period.

<snip>

"The record results for the second quarter were enhanced by the sale of a significant piece of land in southeast Florida, which contributed approximately 40% of our total gross margin," said Jerry Starkey, chief executive at WCI, in a prepared statement.

The number of new orders fell 15.3% to 764 as the company said it limited releases at several communities to align its backlog with expected delivery timeframes.

Meanwhile, the value of new orders climbed 24.9% to $633.5 million, and the average price of a new order climbed 47.2% to $829,000.



...more...

Wonder what land sale that was? New Orders FELL? Average price increased 47.2%?

Something smells bad in Florida.

[UpInArms]

14. Alcan's 2nd-Quarter Net Falls to $191 Million From $331 Mln

http://www.bloomberg.com/apps/news?pid=10000082&sid=arxl5P6bFG7Q&refer=canada

Aug. 8 (Bloomberg) -- Alcan Inc., the world's second-largest aluminum producer, said second-quarter profit fell to $191 million, or 52 cents a share.

A year earlier, net income was $331 million, or 89 cents a share, Montreal-based Alcan said today in a statement distributed by PR Newswire. Per-share results were after payment of preferred dividends.

Alcan fell 95 cents, or 2.3 percent, to C$40 on the Toronto Stock Exchange on Aug. 5. The shares have dropped 12 percent in the past year.

...more...

[UpInArms]

15. Treasurys ease ahead of Fed meeting

http://www.marketwatch.com/news/story.asp?guid=%7B9CF71F35%2D0B26%2D4618%2D847E%2D15BF61B2A7A8%7D&siteid=mktw

CHICAGO (MarketWatch) - The government bond market began the week on the defensive with the Federal Reserve widely seen raising interest rates while possibly expressing heightened concerns for percolating inflation.

There were no U.S. economic reports due Monday to give the bond market a last-minute read on the state of the economy.

Ahead of the Tuesday meeting, the benchmark 10-year Treasury note was down 2/32 at 97 26/32.

The drop in price nudged its yield ($TNX: news, chart, profile) , a reference for mortgage and corporate borrowing rates, up to 4.4% from 3.39% at Friday's close.

Yields remain near their highest since the middle of April.

...more...

[UpInArms]

16. Opening Numbers and Bye!

Dow 10,581.44 +23.41 (+0.22%)
Nasdaq 2,182.08 +4.17 (+0.19%)
S&P 500 1,228.76 +2.34 (+0.19%)
10-Yr Bond 4.410 +0.18 (+0.41%)

NYSE Volume 20,979,000
Nasdaq Volume 39,405,000

Have to go away for the day - see you in the morning!

:hi:

[54anickel]

17. Looking out for Number One

http://www.prudentbear.com/randomwalk.asp

snip>

Speaking of looking out for the best interests of others, corporate managers are buying back stock like crazy so as to create value for their shareholders. In fact, Standard & Poor’s figures that companies in its S&P 500 increased share repurchases by 91% in the first quarter (year-over-year). Stock market columnist Dan Dorfman recently noted that the trend continued in the second quarter. In fact, year to date, buybacks are up a hefty 75%. This can only mean that increasing shareholder value is back in vogue. Yea!

snip>

But stock buybacks are not only way managements can jazz up shareholder value. Mergers and acquisitions are also in the executive tool belt. In her June 9 story in the New York Times, Gretchen Morgenson provides a slew of M&A data, including the fact that the value of mergers in the first quarter was up 17% over the prior year’s figure. And no wonder. Mergers are what the motivational guru mentioned earlier might call a “win-win-lose-win” situation. That’s because, acquisitions often deliver accounting-driven earnings growth which leads to a higher stock price (win!), which makes executive stock options more valuable (win!) but often forces thousands of workers out of their jobs (lose!) and into the realtor business (win! – at least for the time being).

Even the executives who were running the acquired companies but are no longer needed in the Brave New Synergistic World come out winners. That’s thanks to the precedent set by the golden parachute - a 1980s invention which made the trip from the lofty executive suite to a more pedestrian elevation a safe and enjoyable experience. For example, Morgenson puts the payout for Gillette CEO James Kilts from the Proctor & Gamble merger at $165 million. Twenty-one Toys R Us managers could pocket as much as $170 million from the sale of the toy company to an investor group. All in all, according to the Times, payouts to management account for about 8% of a merger’s total cost these days.

And who can blame them, given inflation in the executive-cost-of-living index?

Executives must be getting hit hard by inflation – really hard – because their boards keep raising their compensation packages. The cost of coastal vacation homes is skyrocketing, after all. So no wonder then, that according to a recently published Harvard study, average CEO compensation increased an inflation adjusted 146% from 1993 to 2003, even after plunging from the 1999 peak. Luckily, inflation hasn’t been hitting employees nearly as hard, what with Wal-Mart squeezing suppliers and a highly competitive pizza market. With this kinder/gentler version of employee inflation, bosses only had to increase their employees' total compensation (as measured by the Employee Benefit Cost Index) by an inflation un-adjusted 42% over the same period.

more...

[54anickel]

18. Productivity Is the Issue of the Hour for the Fed (Whatever)

http://www.nytimes.com/2005/08/08/business/08fed.html?

WASHINGTON, Aug. 5 - Ten years ago, Alan Greenspan, the Federal Reserve chairman, broke with conventional wisdom and correctly recognized that the United States had entered an era of faster growth in productivity.

It was a huge shift that allowed the Fed to encourage faster economic growth and increased prosperity without significant inflation.

:eyes: Uhhhh, wasn't that when NAFTA was passed?

snip>

As shown by the big jump in jobs during July, up 207,000 from June, and the more than 1.3 million jobs added this year, the pool of unemployed workers is dwindling and wages are rising faster than productivity. The big question for the Federal Reserve is whether the lull is simply a return to the average pace since 1995 or a return to the doldrums that prevailed from the early 1970's to the early 1990's.

With economic growth strong and labor costs rising, Fed officials are all but certain to raise short-term interest rates on Tuesday to 3.5 percent and to increase them again to at least 4 percent by the end of the year as they grope toward a neutral monetary policy.

The issue of productivity growth lies behind much of the debate. If output climbs more slowly than labor costs, companies will be under pressure to raise prices. If output rises in line with labor costs, whether because of new technology or new ways of doing business, wages and employment can rise without contributing to inflation.

more half truths and lies....

[54anickel]

19. 2 events are likely to limit 1% mortgages

http://www.freep.com/realestate/renews/harney7e_20050807.htm

snip>

Given the seductions of 1% money, you might not be surprised to learn that this form of financing quintupled its national market share in the past 12 months. But two developments -- one that took effect Aug. 1, another due this fall -- could reduce the promotions you see for cut-rate option ARMs.

snip>

On Aug. 1, Standard & Poor's blew the whistle on option ARMs.


After an intensive study of recent mortgage-backed bonds, it concluded that lenders are allowing credit standards to slip too far. And too many of the borrowers using option ARMs are paying the minimum amounts per month, thereby accumulating potentially toxic levels of debt -- especially in markets where home values are likely to soften.


"We wanted to jump in before this got any worse," said Standard & Poor's mortgage bond director Michael Stack.


By "any worse," he meant that if credit standards continued to decline, there would be a rising probability of defaults on option ARMs -- something unacceptable to bond investors.


A second development potentially affecting option ARMs is under way at the federal financial regulatory agencies. A task force headed by Deputy Comptroller of the Currency Barbara Grunkemeyer is preparing new underwriting and credit risk guidelines for option ARMs, interest-only mortgages and reduced-documentation loans the nation's lenders offer. In an interview, Grunkemeyer said the guidelines could be out "by early fall," but there is no specific target date.

Given the Fed's track record for being late to the party, I am not getting warm fuzzies on this issue. I've got a hunch there's more danger lurking here than they are willing to acknowledge.

[54anickel]

20. 12:21 lunchtime numbers

Dow 10,568.72 +10.69 (+0.10%)
Nasdaq 2,175.45 -2.46 (-0.11%)
S&P 500 1,228.50 +2.08 (+0.17%)
10-yr Bond 4.398% +0.01
30-yr Bond 4.581% -0.00
NYSE Volume 855,943,000
Nasdaq Volume 703,087,000

12:00PM : Market still trades with a tinge of caution midday as investors weigh record high oil prices against new M&A activity ahead of tomorrow's FOMC meeting... Early reports that Cisco Systems (CSCO 19.46 +0.16) may be interested in acquiring Nokia (NOK 16.18 +0.24) had underpinned a positive bias in pre-market trading; however, with neither company willing to confirm nor refute such speculation, coupled with a lack of market-moving economic data, has placed even more emphasis on the crude reality of surging oil prices...
Ongoing supply concerns (e.g. refinery outages) and the closing of the U.S. Embassy in Saudi Arabia following an unspecified security threat have helped crude oil futures climb above $63/bbl for the first time ever, touching all-time highs of $63.90/bbl ($+1.59)... To that end, Energy, getting an additional boost from Kerr-McGee's (KMG 84.76 +2.78) planned $3.5 bln sale of its North Sea oil assets and analyst upgrades (i.e. APC, APA and DVN), has paced the way higher... Of the three other economic sectors trading higher, Materials has posted a modest gain, getting a boost from strength in steel and aluminum...

The latter has surged after Alcoa (AA 28.43 +0.69) was mentioned favorably in Barron's and Alcan Aluminum (AL 34.20 +1.03) beat analysts' Q2 expectations by $0.10... Despite continued consolidation in Homebuilding (-2.2%) as well as downside Q3 revenue guidance from Delphi (DPH 4.64 -0.32), Consumer Discretionary has benefited from stronger than expected July comps from McDonald's (MCD 32.12 +0.82), leveraged buyout speculation surrounding Gap Stores (GPS) and Whirpool's (WHR 83.41 +3.70) sweetened $1.6 bln bid for Maytag (MYG 18.64 +1.66)...

The Utilities sector, however, has paced the way lower, due in part by an 8.4% sell-off in Dynegy (DYN 4.45 -0.41) after revising its FY05 outlook below consensus... Health Care, however, has provided the bulk of downside leadership amid weakness in biotech, after Lehman downgraded Genzyme (GENZ 70.40 -1.35) to Equal-Weight from Overweight... Financial has also shown relative weakness, as losses in banks and REITs have offset modest gains in brokerage... The latter has gotten a lift after E*Trade Financial (ET 16.41 +1.55) agreed to acquire Harrisdirect for $700 mln in cash...

Technology has been mixed, as modest gains in semiconductor, networking and Internet struggle to offset weakness in hardware and software... The latter group has been under pressure as investors lock in some of last week's 7.7% advance in Microsoft (MSFT 27.30 -0.46) while Internet stocks have found buyers amid reports that Yahoo (YHOO 33.85 +0.33) is in advanced talks to acquire 35% of China's Alibaba.com for about $1.0 bln...

Meanwhile, the Treasury market has had little influence on overall trading for the first time in a couple of days, as the benchmark 10-year note remains unchanged to yield 4.38% while bond traders hold tight ahead of a widely expected 25 basis point hike in the fed funds rate to 3 1/2% and accompanying FOMC policy statement... DJTA +0.1, DJUA -0.4, DOT -0.4, Nasdaq 100 -0.2, Russell 2000 -0.2, SOX +0.1, S&P Midcap 400 -0.1, XOI +2.4, NYSE Adv/Dec 1404/1645, Nasdaq Adv/Dec 1288/1587

11:30AM : Stocks bounce off recent lows but not nearly enough to make a significant change in the standings... While the tech-heavy Nasdaq continues to lag its blue chip counterparts, another turnaround in chip stocks has helped pare losses, as investors still struggle to find more aggressive upside traction in the face of historic highs in oil and ahead of tomorrow's FOMC meeting (14:15 ET)...

While it is widely expected the Fed will raise the fed funds target 25 bp to 3 1/2%, the fact that the ensuing policy statement will confirm that more rate increases are forthcoming may also be underpinning a sense of nervousness...NYSE Adv/Dec 1366/1648, Nasdaq Adv/Dec 1256/1567

11:00AM : Sentiment continues to deteriorate as surging oil prices, which raise concerns of crimped corporate profit margins and consumer spending, push several influential leaders into negative territory... A reversal in Technology has provided the brunt of recent weakness, as consolidation throughout software and hardware overshadow early speculation surrounding a possible CSCO/NOK combination...

The Financial sector turning negative, amid continued weakness in interest-rate sensitive groups like REITs and banking, and continued pressure on Health Care - dragged lower after Lehman downgraded Genzyme (GENZ 70.06 -1.69) to Equal-Weight from Overweight - have also weighed on the proceedings...NYSE Adv/Dec 1514/1458, Nasdaq Adv/Dec 1286/1459

[54anickel]

21. 1:21 and all red

Dow 10,548.96 -9.07 (-0.09%)
Nasdaq 2,170.10 -7.81 (-0.36%)
S&P 500 1,225.95 -0.47 (-0.04%)
10-yr Bond 4.404% +0.01
30-yr Bond 4.586% 0.00
NYSE Volume 1,042,113,000
Nasdaq Volume 846,759,000

:00PM: Major indices continue to trade in subdued fashion as market internals still suggest a slightly negative bias... The market's holding pattern has been further evidenced in the A/D line, as decliners on the NYSE outpace advancers by a 17 to 13 margin while declining issues hold a 15 to 14 edge over advancing issues... The ratio of down to up volume, however, indicates a more mixed tone to trading...
Meanwhile, the Dow, S&P and Nasdaq continue to trade above initial support levels but lack of conviction on either the bullish or bearish side of the aisle leaves in question whether or not resistance levels of 10575, 1229 and 2184, respectively, can be breached... NYSE Adv/Dec 1387/1743, Nasdaq Adv/Dec 1400/1505

12:30PM: Little changed since the last update as the major averages continue to vacillate in roughly the same ranges... The Dow, on the heels of its first back-to-back weekly decline since March, struggles to hold onto slim gains... Providing the biggest boost has been a 3.2% surge in McDonald's (MCD 32.30 +1.00), amid strong July comps growth of 4.9% (consensus +3.5%)...

Also helping offset weakness from 18 of the blue-chip index's 30 components has been a 2.5% surge in Alcoa (AA 28.44 +0.70), following upbeat comments in Barron's over the weekend, and a 2.3% surge in ExxonMobil (XOM 59.42 +1.33), as oil prices trade near historic highs... NYSE Adv/Dec 1428/1670, Nasdaq Adv/Dec 1379/1518

[54anickel]

22. 2:15 and redder - no 2:00 bounce yet

Dow 10,526.98 -31.05 (-0.29%)
Nasdaq 2,165.26 -12.65 (-0.58%)
S&P 500 1,222.71 -3.71 (-0.30%)
10-yr Bond 4.41% +0.02
30-yr Bond 4.588% +0.01
NYSE Volume 1,208,832,000
Nasdaq Volume 991,019,000

2:00PM: Indices continue to chalk up modest losses in the absence of spirited leadership from a number of blue chips... With eight out of ten economic sectors now trading below the flat line, and not even a combined 12% of the S&P's weighting coming from the less influential (but positively-trading) Energy and Materials sectors, investors have found few reasons to own stocks ahead of a broadly anticipated tenth consecutive increase in policy rates... NYSE Adv/Dec 1312/1844, Nasdaq Adv/Dec 1345/1624

1:30PM: Sellers show some resolve within the last half hour, knocking the averages to fresh session lows, as benchmark yields on the 10-year note (-6/32) hit 4.41% following mediocre auction results... At the top of the hour, the Treasury Dept. auctioned off $18 bln in 3-year notes, but indirect bidder participation of 28% - the third the worst showing since August 2003 and below an auction average of 38.5% - has added to an already cautious stance in bonds, pushing up borrowing rates and sending interest-rate sensitive areas like Financial and Utilities even lower...NYSE Adv/Dec 1400/1730, Nasdaq Adv/Dec 1350/1602

[54anickel]

23. Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil Bourse

http://usa.mediamonitors.net/content/view/full/17450

"A successful Iranian bourse will solidify the petroeuro as an alternative oil transaction currency, and thereby end the petrodollar's hegemonic status as the monopoly oil currency. Therefore, a graduated approach is needed to avoid precipitous U.S. economic dislocations."


--------------------------------------------------------------------------------


"This notion that the United States is getting ready to attack Iran is simply ridiculous...Having said that, all options are on the table."

-- President George W. Bush, February 2005


Contemporary warfare has traditionally involved underlying conflicts regarding economics and resources. Today these intertwined conflicts also involve international currencies, and thus increased complexity. Current geopolitical tensions between the United States and Iran extend beyond the publicly stated concerns regarding Iran's nuclear intentions, and likely include a proposed Iranian "petroeuro" system for oil trade. Similar to the Iraq war, military operations against Iran relate to the macroeconomics of 'petrodollar recycling' and the unpublicized but real challenge to U.S. dollar supremacy from the euro as an alternative oil transaction currency.

It is now obvious the invasion of Iraq had less to do with any threat from Saddam's long-gone WMD program and certainly less to do to do with fighting International terrorism than it has to do with gaining strategic control over Iraq's hydrocarbon reserves and in doing so maintain the U.S. dollar as the monopoly currency for the critical international oil market. Throughout 2004 information provided by former administration insiders revealed the Bush/Cheney administration entered into office with the intention of toppling Saddam.<1><2> Candidly stated, 'Operation Iraqi Freedom' was a war designed to install a pro-U.S. government in Iraq, establish multiple U.S military bases before the onset of global Peak Oil, and to reconvert Iraq back to petrodollars while hoping to thwart further OPEC momentum towards the euro as an alternative oil transaction currency ( i.e. "petroeuro").<3> However, subsequent geopolitical events have exposed neoconservative strategy as fundamentally flawed, with Iran moving towards a petroeuro system for international oil trades, while Russia evaluates this option with the European Union.

In 2003 the global community witnessed a combination of petrodollar warfare and oil depletion warfare. The majority of the world's governments – especially the E.U., Russia and China – were not amused – and neither are the U.S. soldiers who are currently stationed inside a hostile Iraq. In 2002 I wrote an award-winning online essay that asserted Saddam Hussein sealed his fate when he announced on September 2000 that Iraq was no longer going to accept dollars for oil being sold under the UN's Oil-for-Food program, and decided to switch to the euro as Iraq's oil export currency.<4> Indeed, my original pre-war hypothesis was validated in a Financial Times article dated June 5, 2003, which confirmed Iraqi oil sales returning to the international markets were once again denominated in U.S. dollars – not euros.

more...

[54anickel]

26. The destroyer of worlds (from Tehran Times re: nukes)

Not exactly SMW material, but thought it was interesting to see this in the Iranian news.

http://www.tehrantimes.com/Description.asp?Da=8/9/2005&Cat=14&Num=001

After the first test of an atomic bomb in July 1945 at the Trinity Site in New Mexico, Manhattan Project director Robert Oppenheimer described the event by quoting from the Bhaghavad-Gita, saying, “I am become Death, the destroyer of worlds.”

This is something to reflect upon, especially today, since it is the sixtieth anniversary of the atomic bombing of Nagasaki.

Where is humanity 60 years into the Nuclear Age?

Paradoxically, many people both fear nuclear war and believe their countries’ must possess nuclear weapons to defend themselves.

In the 2005 Hiroshima Peace Declaration, delivered on Saturday, the sixtieth anniversary of the atomic bombing of that city, Hiroshima Mayor Tadatoshi Akiba criticized nuclear weapons states for opposing calls for complete nuclear disarmament and encouraging trust in the bomb, saying, “Based on the dogma ‘Might is right’, these countries have formed their own ‘nuclear club’, the admission requirement being possession of nuclear weapons. Through the media, they have long repeated the incantation, ‘Nuclear weapons protect you.’”

more...

[54anickel]

24. Intel in South Korean investigation

http://news.ft.com/cms/s/3e699240-0833-11da-97a6-00000e2511c8.html

Intel, the world's biggest semiconductor maker, revealed on Monday that South Korea's Fair Trade Commission was investigating marketing and rebate programmes it had entered into with Korean PC manufacturers.

The inquiry mirrors an antitrust investigation held by Japan's Fair Trade Commission this year, and one still under way involving the European Commission.

Intel also faces litigation by Advanced Micro Devices, its closest microprocessor rival, over alleged anti-competitive actions and it said dozens of class-action lawsuits had been spawned by AMD's action.

In its quarterly 10Q report, Intel said the FTC in South Korea had requested documents from its arm there. It said it was co-operating and expected the matters would be acceptably resolved.

In March, its Japanese subsidiary avoided a protracted legal battle when it accepted a “cease and desist” ruling from the FTC there. It had found that Intel violated antitrust laws by offering rebates to five Japanese PC makers on condition they agreed to limit purchases of chips made by AMD and other rivals

[54anickel]

25. Crude Oil Prices Approach $64 Per Barrel

http://biz.yahoo.com/ap/050808/oil_prices.html?.v=31

WASHINGTON (AP) -- Oil prices jumped to a new high near $64 a barrel on Monday, reflecting the market's persistent uneasiness about strong demand, tight supplies and a slew of threats to output around the globe.

Traders pinned the latest rally on security concerns in Saudi Arabia, refinery snags in the United States and the continued rise of gasoline consumption in spite of soaring pump prices.

The average nationwide price for regular unleaded gasoline is $2.34 a gallon, or 46 cents above last year, according to the Oil Price Information Service of Wall, N.J. Still, government data show that gasoline consumption is up almost 1 percent at 9.1 million barrels a day through July, compared with last year.

Oil analyst Marshall Steeves at New York-based brokerage Refco Group Inc. said oil and gasoline prices were likely to keep rising until there were signs of a significant dropoff in demand, or a sharp slowdown in economic growth. "We're clearly not there yet," he said.

more...

They should add 1 more item to the laundry list in this article and that is the "House of Saud". A lot more going on there than what's being reported in the MSM.

Bemildred reposted an older article on the House of Saud here.
Worth a review now that king Fahd has passed on.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x144594


Link to article -
http://www.theatlantic.com/doc/200305/baer

[54anickel]

27. Economic derailment looming

http://www.nashuatelegraph.com/apps/pbcs.dll/article?AID=/20050807/COLUMNISTS24/108070121/-1/opinion

The most recent economic data indicate remarkable economic strength. So why do I still have an uneasy feeling?

Second quarter gross domestic product registered a healthy 3.4 percent gain. In June, unemployment dipped to 5.0 percent from an already low 5.4 percent in February.

Despite escalating energy costs, retail sales remain strong. June’s impressive increase may be topped in July. Wal-Mart, who has suffered most from higher gas prices, recently reaffirmed an expected 3 percent to 5 percent rise in sales for July.

Housing remains white hot. June sales of existing single-family homes rose another 2.7 percent while new homes sales established yet another record with a 4 percent increase.

An obvious byproduct of a sizzling market is higher prices. In June, the median price for existing homes hit $219,000, a gain of 14.7 percent over last year. Year to date prices are up another 5.9 percent.

In lemming-like fashion, many economists raised their forecasts for the second half. Of course, these are the same economists who had previously reduced the very same forecasts when it appeared a soft patch loomed.

more...

[54anickel]

28. Why the Federal Reserve must raise interest rates

http://news.yahoo.com/s/ft/20050807/bs_ft/fto080720051442095572;_ylt=As3InvrkicLjGsq0wwz1VBv2ULEF;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl

When housing markets boom, homeowners get rich. And the rich drive fancy cars, have expensive flat-screen televisions and go on nice holidays. At least that is the way people think it is supposed to work. But we all need somewhere to live so, while the above may be true for some, it cannot work for all of us at the same time. Economy-wide consumption should not respond to changes in property values. That the impact has been large is a problem for everyone, especially for monetary policymakers.

As the Federal Reserve's Open Market Committee (FOMC) meets tomorrow morning, housing should be at the centre of the discussion. Alan Greenspan, the chairman, and his colleagues are in a bind because of the strategy they have followed over the past five years. It now looks as if their overdue reaction to the housing boom will require them to raise interest rates well beyond the 4 per cent or so that most people now expect.

The story starts with the internet boom of the late 1990s. At the time, Fed policymakers concluded that since it was so difficult to identify bubbles as they are inflating, it is best to wait and clean up the mess after the crash. In 2001, that is what they did. The FOMC lowered the short-term interest rate from 6 per cent to 1 per cent.

The predictable result was a housing boom. The value of residential housing in the US is 55 per cent higher today than it was only five years ago. Since household consumption reacts quickly and strongly to increases in property wealth, a recession was nearly averted.

Fed policy replaced the internet bubble with a housing bubble. The problem is that equity and property are very different. When stock prices rise, it signals improved future profitability. Faster growth means higher incomes and more resources to devote to current (and future) consumption.

more...

[54anickel]

29. That Hissing Sound (Krugman)

http://www.nytimes.com/2005/08/08/opinion/08krugman.html?

This is the way the bubble ends: not with a pop, but with a hiss.

Housing prices move much more slowly than stock prices. There are no Black Mondays, when prices fall 23 percent in a day. In fact, prices often keep rising for a while even after a housing boom goes bust.

So the news that the U.S. housing bubble is over won't come in the form of plunging prices; it will come in the form of falling sales and rising inventory, as sellers try to get prices that buyers are no longer willing to pay. And the process may already have started.

Of course, some people still deny that there's a housing bubble. Let me explain how we know that they're wrong.

more...

[54anickel]

30. Was Someone Squeezing Treasuries?

http://www.nytimes.com/2005/08/07/business/yourmoney/07gret.html?

A STORM swept through the United States Treasury market in June, creating big losses at banks and brokerage firms and bringing back memories of the infamous short squeeze by Salomon Brothers in 1991 that ultimately brought the firm to its knees.

The recent turmoil is a troubling sign that the pools of capital at hedge funds and investment firms have grown so enormous that they can easily swamp the government securities market, one of the world's deepest, most liquid and heavily used financial markets. The upheaval also involved a short squeeze - financial-speak for what happens to short-sellers when they are forced to stanch their losses in a buying spree that sends prices higher and higher.

Back in 1991, remember, a trader at Salomon Brothers propelled the price of Treasury securities skyward by illegally buying more than the firm's allotted share at auction. That squeeze created significant losses for many other players in the market and enraged regulators. The government punished the trader, Paul W. Mozer, and the firm, which paid $290 million in fines and penalties to settle the matter. John H. Gutfreund, Salomon Brothers' chief executive at the time, resigned as a result of the mess.

This time around, the market upheaval centered on a 10-year Treasury security issued in February 2002 that pays an interest rate of 4.875 percent. The notes generated about $25 billion for the government when they were issued, but the amount of bonds changing hands regularly, known as the float, is significantly smaller than that.

It's not known who was behind the recent short squeeze and there is no indication that the activity was illegal.

But by far and away the largest holder of the 10-year Treasury in question, and therefore the one that would benefit the most from the action, is the Pacific Investment Management Company, or Pimco, the $500 billion money management firm specializing in fixed-income investments and overseen by William H. Gross.

more...

[54anickel]

31. China govt economist sees no more yuan moves soon

http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=uri:2005-08-08T064937Z_01_N08300691_RTRIDST_0_BUSINESS-ECONOMY-CHINA-YUAN-ECONOMIST-DC.XML&pageNumber=0&summit=

BEIJING (Reuters) - China will not adjust the yuan's exchange rate any further in the next three to six months while it assesses the impact of last month's 2.1 percent revaluation, a senior Chinese economist said.

"Policy makers will observe the effects of the revaluation on the economy and the degree to which it is digested. This is an adjustment period," said Ba Shusong, a vice director with the State Council's Development Research Center.

"Exchange rate reform will affect trade, employment, farm products, and the overall economy. Companies and financial institutions all need time to adjust," Ba said in a weekend interview with Reuters and Shanghai Securities News.

snip>

Ba's views reflected the stance of other economists, who say the People's Bank of China, having finally bitten the bullet on the long-awaited revaluation, will take a cautious approach to further adjustments of the exchange rate.

snip>

On Monday state media quote a central bank monetary policy adviser as saying he expected the United States and other countries would soon start pressuring China to let the yuan rise in value.

"It is a pity that when we made such an important change, we didn't get any commitment from the U.S. and other countries" not to renew pressure, Yu Yongding said in an interview with the Economic Observer.

more...

[UpInArms]

32. closing numbers and blather

Dow 10,536.93 -21.10 (-0.20%)
Nasdaq 2,164.39 -13.52 (-0.62%)
S&P 500 1,223.13 -3.29 (-0.27%)
10-Yr Bond 4.419 +0.27 (+0.61%)

NYSE Volume 1,804,144,000
Nasdaq Volume 1,495,734,000

Close: The market closed lower for a third straight day as another record high in oil and rising bond yields renewed worries about profit and economic growth, closing virtually every sector in negative territory ahead of tomorrow's FOMC meeting... While better than expected Q2 earnings and strong economic reports helped offset persistently high oil prices throughout the month of July, a lack of catalysts (e.g. earnings season nearing an end and no economic data scheduled today) provided investors with little incentive to jump back into the market looking for bargains...

Crude oil futures, which almost surpassed $64/bbl for the first time ever, closed up 2.6% at $63.94/bbl (+$1.63) amid unspecified security threats which closed the U.S. Embassy in Saudi Arabia and ongoing refinery problems which could result in a gasoline shortage... Also underpinning a sense of nervousness was follow-through selling pressure in the Treasury market, which pushed benchmark yields on the 10-year note (-7/32) through 4.41% ahead of another widely expected 25 basis point Fed hike (to 3.5%) and an accompanying policy statement that will confirm more rate increases are forthcoming...

Initial merger talk, in particular a U.K. newspaper that cited Cisco Systems' (CSCO 19.25 -0.05) interest in acquiring Nokia (NOK 16.11 +0.17), had helped alleviate overnight highs in oil; but the lack of more concrete evidence about a possible CSCO/NOK combination and the absence of noteworthy earnings and economic reports kept high energy costs and rising rates at the forefront of investors' minds... With regard to sector strength and weakness, 8 out of 10 economic sectors finished lower...

[UpInArms]

33. FOMC will raise rates to 5% next year: Goldman Sachs

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38572.7366355903-840170741&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- The Federal Reserve will likely raise its target for the federal funds rate to 5% by the middle of next year from 3.25% currently, Goldman Sachs economists said Monday. The Federal Open Market Committee is expected to boost rates to 3.50% at its meeting Tuesday. Chief economist Bill Dudley said the FOMC will want to tighten credit to slow the economy and keep inflation at bay. "The risks are increasing that monetary policy may need to be made tight," Dudley wrote in a note to clients. "It should only take a relatively modest rise in long-term rates to take the steam out of the housing sector and for this to lead to a significant slowing in consumer spending."

[54anickel]

35. Huh? They seem to know Greenspin well...all he ever tinkers with

is interest rates.

:wtf: Why doesn't he go after the banks to tighten lending? Noooo, he's gotta use that macro tool of raising interest rates. Just like when he tackled the "irrational exuberance" in stocks. Could have just raised margins, but nooooo, gotta raise interest rates.

Didn't he recently state he was NOT going to target the housing "froth" with interest rates? Or is he again seeing a "diminution of the pool of available workers"? :eyes:

[UpInArms]

34. SEC charges ex-Citigroup execs with fraud

Follows $208 million settlement with company

http://www.marketwatch.com/news/story.asp?guid=%7B59ACEE51%2DBBD0%2D4EB3%2DB985%2D55E65DE239C2%7D&siteid=mktw

WASHINGTON (MarketWatch) -- Federal securities regulators charged two former Citigroup executives with fraud Monday, in connection with the company's creation of a transfer agent to serve its Smith Barney funds at a highly discounted rate.

Monday's actions against Thomas Jones and Lewis Daidone follow the Securities and Exchange Commission's settlement with Citigroup in May in which the company agreed to pay $208 million to be distributed to fraud victims.

Citigroup (C: news, chart, profile) took most of the benefit of the discount for itself, the SEC said, rather than passing the fee discount onto the mutual funds.

Monday, the SEC alleged Jones and Daidone were principally responsible for the fraud. The SEC said Jones, the former chief executive of the asset management division, directed an effort to negotiate a deal that would allow Citigroup to take in much of the profit that the funds' agent had been making.

...more...

bonds - fraud

hmmm.....