STOCK MARKET WATCH, Wednesday 24 May

[ozymandius]

Wednesday May 24, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 973 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1978 DAYS
WHERE'S OSAMA BIN-LADEN? 1678 DAYS
DAYS SINCE ENRON COLLAPSE = 1639
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 May 23, 2006

Dow... 11,098.35 -26.98 (-0.24%)
Nasdaq... 2,158.76 -14.10 (-0.65%)
S&P 500... 1,256.58 -5.49 (-0.43%)
Gold future... 673.70 +16.00 (+2.37%)
30-Year Bond 5.15% +0.02 (+0.45%)
10-Yr Bond... 5.07% +0.03 (+0.60%)






GOLD, EURO, YEN, Loonie and Silver


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 Ike Iossif

SP500 AND THE 4 YEAR CYCLE

Given the sharp decline in the equity markets over the past few days, and the constant commentary we hear in the media in reference to the 4 year cycle, we thought it would be a good idea to share our thoughts about the subject.

Below is an 8 year chart of the SP500 showing the two previous 4 year cycle lows in 1998 and in 2002 as they relate to the RYDEX asset ratio, along with the assumption that the SP500 is near the top of a slightly rising channel; the distance from top to bottom is roughly 400 SP points.

-cut-

If our assumption about the existence of the channel is correct, then there is a valid possibility--but of course not the certainty--of a 400 point decline between now and October. If the SP doesn't rally over the next few weeks back up towards the 1300 level, then the level to watch for is 1200. If the SP can't hold support above 1200, the next stop will be 1100, which we consider to be "the line in the sand." The only real support below 1100 is between 900 and 800.

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

[ozymandius]

2. Today's Reports

8:30 AM Durable Orders Apr
Briefing Forecast 0.0%
Market Expects -0.5%
Prior 6.4%

10:00 AM New Home Sales Apr
Briefing Forecast 1110K
Market Expects 1135K
Prior 1213K

10:30 AM Crude Inventories 05/19
no numbers available

[UpInArms]

52. U.S. April durable-goods orders down 4.8% - Surprised Economist Time!

8:30 AM ET 5/24/06 U.S. APRIL DURABLE-GOODS INVENTORIES UP 0.8%

8:30 AM ET 5/24/06 U.S. APRIL DURABLE-GOODS SHIPMENTS DOWN 0.9%

8:30 AM ET 5/24/06 U.S. APRIL DURABLE-GOODS ORDERS EX-TRANSPORTATION DOWN 1.1%

8:30 AM ET 5/24/06 U.S. APRIL DURABLE-GOODS ORDERS DOWN 4.8% VS.0.6% EXPECTED

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD3565267%2D2FD4%2D461B%2DA7B1%2DFC7EDD73F19C%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - Led by weaker demand for airplanes, orders for new U.S.-made durable goods decreased 4.8% in April, the Commerce Department said Wednesday. The drop was larger than expected. Economists were forecasting orders to fall 0.6%. Durable orders in March were revised to a 6.6% increase from 6.4% previously estimated. Nondefense aircraft and parts orders fell 32.2% in April. Shipments of durable goods fell 0.9% in April after a 0.3% rise in March. Orders for core capital goods equipment fell 1.7% in April.

[UpInArms]

56. more info:

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B8E2FC210%2D1369%2D4A3B%2D976C%2D360D221E6420%7D&symbol=

excerpt:

Inventories of durable goods rose 0.8% in April and have risen in three of the past four months.

Orders for core capital goods equipment fell 1.7% in April. Shipments of core goods rose 0.9%.

Durable goods are long-lived products, such as airplanes, cars, washing machines, and machine tools. Orders are carefully watched for clues about the direction of both consumer and business spending.

In April, orders for transportation goods had the largest decline, falling 12.7%, including a 32.2% drop in aircraft orders and a 1.6% fall in motor vehicle orders. Shipments of transportation goods decreased 3.2%.

Excluding transportation, orders fell 1.1% in April, the second decline in the past three months.

Excluding defense, durable goods fell 3.8%.

Orders for electronics excluding semiconductors fell 10.4% as orders for communications equipment fell 27.4%. Orders for computers fell 1.3%. Shipments of electronics fell 0.5%.

...more...

[Ghost Dog]

77. Contrast: (Airbus, etc) EADS Q1: EPS Beats - Up 26%

http://www.officeroutlook.com/news/Financial/1483.htm

16 May 2006

European Aeronautic Defense & Space "EADS" increased revenues by 30 percent to € 9.1 billion (Q1 2005: € 7.0 billion) and achieved an EBIT of € 780 million, up 19 percent (Q1 2005: € 657 million).

First-quarter earnings beat the median forecast of 694 million euros.

“These first quarter earnings highlight once again the powerful momentum of EADS. However, we have plenty of ongoing operational challenges and management is focusing strongly on the ramp-up of key programmes,“ stated EADS CEOs Tom Enders and Noël Forgeard.

Strong revenue increase and EBIT improvement EADS revenues grew 30 percent to € 9.1 billion during the first three months of 2006 (Q1 2005: € 7.0 billion). Increases were achieved at the Airbus, Eurocopter, Military Transport Aircraft and Defence & Security Systems Divisions. Combined revenues from EADS defence businesses amounted to € 2.0 billion (Q1 2005: € 1.3 billion) which includes € 0.5 billion for an A400M revenue recognition that was initially scheduled for the fourth quarter of 2005.

EBIT improved in all Divisions compared to the first quarter of 2005. While Airbus increased its aircraft deliveries (101 versus 87), further profit growth at Space, Eurocopter, Defence & Security Systems as well as the Military Transport Aircraft Divisions contributed to strong performance in the first quarter. EBIT grew in spite of a less favourable hedge rate of € 1 = US$ 1.09 (Q1 2005: € 1 = US$ 0.98) and higher Research & Development (R&D) expenses. The EBIT* margin amounted to 8.6 percent.

In the first quarter of 2006, self-financed R&D expenses accounted for € 536 million (Q1 2005: € 422 million). This increase was mostly due to Airbus’ programme development and is consistent with plan.

EADS’ Net Income rose 26 percent to € 516 million (Q1 2005: € 410 million), or € 0.65 per share (Q1 2005: € 0.52). This increase is the result of the Group’s good EBIT performance in the first quarter of 2006. Net Income was strengthened by the favourable effective tax rate but was weakened by the Other Financial Result due to the deterioration of the closing €/US$ spot rate at the end of March 2006 compared to December 2005.

/more...

[UpInArms]

82. New Homes Sales Up - Must be paying "cash" - loan apps were down ?

10:00 AM ET 5/24/06 U.S. APRIL NEW HOME MEDIAN SALE PRICE UP 0.9% Y-0-Y TO $239K

10:00 AM ET 5/24/06 U.S. MARCH NEW HOME SALES REVISED TO 1.14 MLN VS 1.21 MLN

10:00 AM ET 5/24/06 U.S. APRIL NEW HOME SALES ABOVE 1.15 MLN FORECAST

10:00 AM ET 5/24/06 U.S. APRIL NEW HOME SALES UP 4.9% TO 1.20 MLN UNITS

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B621F7A12%2DE6F4%2D44DC%2DB33A%2DF4568C05612A%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - U.S. new home sales rose 4.9% in April to 1.20 million units, the second straight monthly increase and the highest level of the year, the Commerce Department estimated Wednesday. The rise was unexpected. Economists expected sales to fall to 1.15 million given the general weakness in the housing market. The inventory of unsold homes on the market rose by 2.4% to 565,000, representing a 5.8-month supply at the April sales pace, down from 6.0 in March. The median price of a new sold home rose 2.8% in April to $238,500 from the previous month. Median prices are up just 0.9% in the past year. WASHINGTON (MarketWatch) - New home sales unexpected increased by 13.8% in March to a seasonally adjusted annual rate of 1.213 million, the highest level of the year, the Commerce Department estimated Wednesday. The increase more than reversed the 10.9% decline in sales in February. It was far stronger than the mild increase to 1.10 million annualized that was expected by economists surveyed by MarketWatch. The inventory of unsold homes on the market increased 2.8% to 550,000, representing a 5.5-month supply at the March sales pace, down from 6.3 months in February. Median home prices fell 2.2% year-over-year to $224,200. It's the first time prices had fallen year-over-year since December 2003.

[UpInArms]

95. DOE and API Crude Inventories Report (both cite fall in crude supplies)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B0789D388%2D06E6%2D4409%2DB29E%2DF6D3E4A753CE%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The Energy Department said motor gasoline inventories rose 2.1 million barrels for the week ended May 19 to total 208.5 million. They've tallied a four-week rise of 7.9 million, though they are still 2.8% below the year-ago level, the government data showed. Crude stocks fell 3 million barrels to total 343.9 million barrels -- 3.6% above the year-ago level. Distillate supplies rose 2.5 million barrels to 117.1 million. They're 8.1% above the year-ago level. July crude fell 96 cents to $70.80 a barrel. June unleaded gas lost 4.55 cents to $2.0625 a gallon and June heating oil was at $1.9625 a gallon, down 3.64 cents.

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B2C0081C6%2D1C62%2D416C%2D8723%2DBF697EB2403D%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The American Petroleum Institute said crude supplies fell 1.2 million barrels for the week ended May 19, compared with the 3 million-barrel decline reported by the Energy Department. Motor gasoline stocks rose 4.3 million barrels, the API said -- more than double the increase the government data showed. Distillate inventories were up 1.2 million barrels, the API said.

[Oversea Visitor]

3. Interesting

Will the DOWdrop below 11,000?
A 0.9% drop.

[ozymandius]

4. Oil prices dip but hold above $71

SINGAPORE - Oil prices dipped Wednesday ahead of the release of U.S. government data later in the day expected to show domestic gasoline inventories rose for a fourth straight week, while crude stocks have likely declined.

Light, sweet crude for July delivery fell 51 cents to $71.25 a barrel in Asian electronic trading on the New York Mercantile Exchange, midmorning in Singapore.

The U.S. Energy Department's weekly petroleum supply snapshot is likely to show an increase in refinery utilization has cut into the nation's commercial crude stocks and produced builds in petroleum products stocks, analysts said. The United States is the world's largest consumer of oil.

Crude stocks are likely to post a draw of 400,000 barrels while gasoline stocks, which grew by 1.3 million barrels in last week's report, are expected to increase by the same amount in this week's report, according to a Dow Jones Newswires survey of energy analysts.

more

[Ghost Dog]

19. UPDATE 1-"Remarkable" high oil prices not hurt economy-OECD chief

http://yahoo.reuters.com/investing/FinanceArticle.aspx?type=economicNews&storyID=urn:newsml:reuters.com:20060524:MTFH21176_2006-05-24_06-48-16_L24323231&rpc=44
Wed May 24, 2006 2:48 AM ET

(Adds details)

PARIS, May 24 (Reuters) - OECD Secretary-General Donald Johnston said on Wednesday it was surprising that high oil prices had not hurt the world economy.

"It's quite remarkable that we can have prices so high without having really harmful consequences for the economy," he told RFI radio.

"Growth exists everywhere in the world today. It seems, obviously, that there's a certain impact on growth (from high oil prices) but it's difficult to measure because it's not like the 1980s, for there is less dependency on this product than before," he added.

<snip>

The OECD's chief economist Jean-Philippe Cotis voiced concern, however, over high oil prices and commodity prices, which the OECD said were likely to stay high because of strong Asian demand despite a sell-off in markets in recent days.

/bit more...

[UpInArms]

85. July Crude @ $70.75 bbl - June NatGas @ $6.095 mln btus

10:06 AM ET 5/24/06 JULY CRUDE FALLS $1.01 TO $70.75/BRL AHEAD OF SUPPLY DATA

10:06 AM ET 5/24/06 JUNE NATURAL GAS DOWN 16.3 CENTS, OR 2.6%, AT $6.095/MLN BTU

[UpInArms]

149. July Crude closes @ $69.86 bbl - June NatGas @ $5.964 mln btus

2:53 PM ET 5/24/06 JULY CRUDE CLOSES AT $69.86/BRL, DOWN $1.90, OR 2.7%

2:53 PM ET 5/24/06 JUNE NATURAL GAS FALLS 4.7% TO END AT $5.964/MLN BTUS

[ozymandius]

5. London hands back some of Tuesday's gains

Equity markets handed back some of the previous session's gains in early trade in London on Wednesday as stocks trading ex-dividend added to Wall Street woes and fears over possible human to human transmission of the deadly bird flu virus in Indonesia.

-cut-

International Power was the biggest faller, down 3.9 per cent to 269½p as it traded without the right to the latest dividend payout. Other ex-divs included J Sainsbury, down 1.9 per cent at 324p and Next which fell 1.4 per cent to £16.82.

British Airways shares were hit on fears that bird flu in Indonesia may affect travel. Shares were down 1 per cent to 334¾p in early trade.

http://news.yahoo.com/s/ft/20060524/bs_ft/fto052420060412130352

[ozymandius]

6. Indictment of law firm fuels debate over white-collar crime

The indictment last week on criminal charges of Milberg Weiss, the leading class action securities law firm in the US, has fuelled a growing debate about whether the Justice Department has been too heavy-handed in its prosecution of white-collar crime.

Even the most ardent critics of class action securities lawyers say the decision by the US attorney's office in Los Angeles to indict the entire firm - as opposed to individual attorneys - sets a dangerous precedent that could be used against other corporate enterprises and infringes companies' rights.

Milberg has claimed it was indicted because, after six months of intense negotiations with prosecutors, it refused to waive attorney-client privilege, which traditionally protects communications between corporate lawyers and their clients.

A set of policies set out by the Justice Department in 2003, referred to as the Thompson memo, called on prosecutors to weigh the level of a company's co-operation with the government - including the waiver of privilege - as a factor to consider when deciding to bring charges or negotiate plea agreements. KPMG, the auditing firm, avoided a criminal indictment last year and accepted a plea agreement with the government by co-operating with prosecutors, and waiving its right to attorney-client privilege. The Justice Department has said it is only seeking "facts" when it requests such waivers.

more

[ozymandius]

7. Zoellick 'ready to quit' White House

Robert Zoellick, the US deputy secretary of state, is preparing to leave the Bush administration and has held talks with Wall Street investment banks on job options, according to people close to the administration.

Mr Zoellick, who also served as trade representative during George W. Bush's first term as president, had hoped to replace John Snow, the Treasury secretary, whose departure has been the subject of constant speculation in Washington.

-cut-

The White House has been seeking to replace Mr Snow with someone who would command more respect on Wall Street, in international financial markets, on Capitol Hill and among the public.

One influential Republican with close ties to the White House said Mr Zoellick was leaving "soon" because he was not getting the Treasury job. The Republican added that the White House wanted someone who would be a better salesman. Mr Zoellick is more widely admired for his policy knowledge.

more

[Roland99]

37. Why not go work with his fellow fvcks at Carlyle or the World Bank?

He's one of dozens that deserves to rot in solitary confinement for the rest of his life.

[54anickel]

66. Not that I have any use for Zoellick or his "admired policy knowledge" -

:eyes:, but that comment says so much about this mal-admin

...the White House wanted someone who would be a better salesman. Mr Zoellick is more widely admired for his policy knowledge.

It's all about image and marketing to those idiots in charge.

[ozymandius]

8. Volatility becomes an asset class

Volatility is becoming an asset class in its own right. A range of structured derivative products, particularly those known as variance swaps, are now the preferred route for many hedge fund managers and proprietary traders to make bets on market volatility.

The psychology of markets means that volatility tends to become a broad concern only when equity markets tumble, as they have during the past two weeks.

Wall Street's fear gauge, the Vix volatility index, which is based on the market's expectation of the future price of S&P 500 index options, hit a two-year high earlier this week adding to fears that the market is ripe for opportunistic traders.

When volatility rises like this, it is not long before people begin asking if hedge funds and proprietary traders, using complex trading strategies, are profiting from the falls, or in some mysterious way, driving them. Variance swaps are at the centre of their current activity.

more

[ozymandius]

9. Citigroup forecasts end to share distortions

The recent distortions to equity prices that traders have created by adjusting their positions in derivatives based on market volatility should disappear in the next two to four weeks, Citigroup (NYSE:C - news), the US bank, said on Tuesday.

The bank said that although this derivatives activity appeared to have exacerbated the recent swings in European equity prices, banks and hedge funds were rebalancing their books. This suggested that the distortions would eventually evaporate from the markets, it said.

"Given current market conditions, the exacerbating effects of derivative hedging might be expected to be noticeable for another 2-4 weeks," said Gerry Fowler, equity derivatives strategist at Citigroup.

"After that we believe equilibrium will have been restored."

more

[54anickel]

69. Straight from the horses mouth. The banks and hedge funds will be

done screwing around in 2-4 weeks, they just need everyone else to sit tight until then - and this won't hurt a bit. Just a little pin prick. :eyes: Yeah, right.

[54anickel]

90. Hedge fund grandee sounds 'death knell' for the industry

http://www.timesonline.co.uk/article/0,,5-2194696,00.html#cid=OTC-RSS&attr=Business

CRISPIN ODEY, one of the grandees of the London hedge fund world, said yesterday that the industry could be doomed, likening it to the disaster that was the Lloyd’s of London insurance market in the 1980s.

Most hedge funds had enjoyed the massive benefit of cheap money and would be found wanting by the coming era of rising inflation and interest rates, he suggested.

In a largely negative critique of the industry, Mr Odey said that hedge fund managers would struggle to adapt to the changing environment: “The hardest thing to do is to think in a different way to the crowd, but in an inflation world, hedge funds get killed.”

Lloyd’s imploded when people realised that the participants were hopeless at underwriting risk, he said.

Mr Odey also took a pot shot at funds of hedge funds — the pooled investment vehicles favoured by institutional investors — as “box-ticking organisations”. He said: “If they (hedge funds) rely on funds of funds, it’s a doomed industry.”

more...

[ozymandius]

10. Fannie's Flayed

It took three years and a $400 million fine for Fannie Mae's regulator to come out and ratify what had generally been the view of the mortgage giant's former management all along--it was arrogant, manipulative and blinded by personal ambition.

The report and civil fine announced Tuesday by the Office of Federal Housing Enterprise Oversight and the Securities and Exchange Commission, along with OFHEO's 340-page report, puts an end to the years-long investigation into earnings manipulation at Fannie Mae (nyse: FNM - news - people ) that will ultimately lead to a nearly $11 billion financial restatement.

It may well be the catalyst for legislation that would create a new regulator for the so-called government sponsored enterprises and rein in Fannie and its smaller sibling, Freddie Mac (nyse: FRE - news - people ). Together, the two mortgage-finance companies have some $1.4 trillion in mortgage holdings.

-cut-

The report puts much of the blame for the accounting scandal on former Chief Executive Franklin D. Raines, whose aggressive leadership of the company until his ouster in 2004 created the must-win atmosphere that fostered the accounting manipulation, the OFHEO report stated.

http://www.forbes.com/business/2006/05/23/fannie-mae-regulators-fine-cx_lm_0524fannie.html#

[ozymandius]

12. UPDATE 1-Report shows Fannie portfolio hedging hard-Treasury

PARIS, May 24 (Reuters) - A report by Fannie Mae's regulator released on Tuesday makes it clear that "perfect hedging" of the mortgage giant's portfolio is nearly impossible, a senior U.S. Treasury official told Reuters on Wednesday.

Government-sponsored enterprise (GSE) Fannie Mae will pay a $400 million fine after its regulator blamed an $11 billion accounting scandal on management, the board and an "arrogant and unethical" culture for massive profit manipulation.

-cut-

"That is that the oversized portfolio has been created by Fannie solely for the purpose of compensation and earnings and disappointingly disconnected from mission."

Treasury Department officials have said the government would consider exercising its authority to limit debt issuance by Fannie Mae or sibling GSE Freddie Mac if legislation aimed at toughening oversight of the enterprises gets bogged down.

http://today.reuters.com/investing/financeArticle.aspx?type=newIssuesNews&storyID=2006-05-24T101546Z_01_L24543085_RTRIDST_0_MARKETS-US-FANNIEMAE-UPDATE-1-INTERVIEW.XML

[UpInArms]

36. Some of the Key Features of Report on Fannie Mae

http://news.yahoo.com/s/ap/20060523/ap_on_bi_ge/fannie_mae_glance

_Fannie Mae's senior management promoted an image of the company as one of the lowest-risk financial institutions in the world and the "best in class" in terms of risk management, financial reporting, internal financial controls and corporate governance — an image that was false.

_Many of the company's accounting policies and practices didn't comply with standard accounting principles, and it had serious problems of financial reporting, internal controls and corporate governance. The accounting errors resulted in Fannie Mae overstating its income and capital in financial reports by an estimated $10.6 billion.

<snip>

_Fannie Mae's board contributed to the problems by failing to be sufficiently informed, to act independently of Raines and other senior executives, to exercise its oversight responsibilities, and to discover a wide variety of unsafe and unsound practices.

<snip>

_Senior management tried to interfere with OFHEO's review of the company's accounting by directing Fannie Mae's lobbyists to use their ties to congressional aides to improperly produce an official request for the inspector general of the Department of Housing and Urban Development to investigate the agency's conduct of the review. The lobbyists were able to get a provision into an appropriations bill calling for punishing OFHEO by reducing its budget until the agency's director was replaced.

...more at link...

[Robbien]

160. Fannie's lobbyists turned over millons to polical parties

Here are the totals to each committee from 1997-2002:

National Republican Congressional Committee $843,650
National Republican Senatorial Committee $615,265
Democratic Congressional Campaign Committee $666,500
Democratic Senatorial Campaign Committee $644,500
Democratic National Committee $302,000
Republican National Committee $226,470
Other Republican Party committees $170,000

Interestingly, Fannie Mae’s soft money contributions – though unusual – were not the biggest from a quasi-government corporation at the time. That honor went to Freddie Mac, the Federal Home Loan Mortgage Corporation. Freddie Mac’s soft money over the same period amounted to nearly $7.3 million. Republicans got 60% of that, Democrats got 40%.

http://www.sunlightfoundation.com/node/686

[ozymandius]

11. Fed Chief Learns His Microphone Is Never Off

Ben S. Bernanke has apparently figured out that as Fed chairman he speaks with a megaphone — especially when he talks to CNBC reporter Maria Bartiromo.

Bernanke acknowledged Tuesday that he made a "lapse in judgment" by discussing Federal Reserve policy with the CNBC television anchor — comments that subsequently drove stock and bond prices lower.

"In the future, my communications with the public and with the markets will be entirely through regular and formal channels," Bernanke said in response to a question at a Senate Banking Committee hearing.

http://www.latimes.com/business/investing/la-fi-bernanke24may24,1,4424596.story?coll=la-headlines-business-invest

[Ghost Dog]

13. RPT-Indonesia bird flu cluster most significant yet -WHO

http://yahoo.reuters.com/investing/FinanceArticle.aspx?type=economicNews&storyID=urn:newsml:reuters.com:20060524:MTFH18875_2006-05-24_04-36-30_MAN135672&rpc=44
Wed May 24, 2006 12:36 AM ET

(Repeats to reach more customers)

MANILA, May 24 (Reuters) - The World Health Organisation (WHO) said on Wednesday the deaths of six Indonesians from bird flu was the most significant development yet in the spread of the virus, and it was worried about both the size of the cluster and its source.

"This is the most significant development so far in terms of public health," Peter Cordingley, spokesman for the West Pacific region of the WHO, told Reuters Television.

"We have never had a cluster as large as this. We have not had in the past what we have here, which is no explanation as to how these people became infected."

[Ghost Dog]

14. RPT-WRAPUP 1-No sign of bird flu mutation in Indonesia case-WHO

http://yahoo.reuters.com/investing/FinanceArticle.aspx?type=economicNews&storyID=urn:newsml:reuters.com:20060524:MTFH22457_2006-05-24_07-41-51_L24359442&rpc=44
Wed May 24, 2006 3:41 AM ET
(Repeats to additional subscribers)

By Diyan Jari

JAKARTA, May 24 (Reuters) - Limited human-to-human transmission of bird flu might have occurred in an Indonesian family but there is no evidence the virus has mutated to allow it to pass easily among people, the World Health Organisation said.

Seven members of the family from a village in north Sumatra died this month and the WHO and Indonesian health officials are baffled over the source of the H5N1 avian flu virus.

But they say there is no evidence the virus has passed to anyone else outside the initial cluster of up to eight people.

It is the largest family cluster known to date, the WHO has said, and such clusters are looked on with far more suspicion than isolated infections because they raise the possibility the virus might have mutated to transmit efficiently among humans.

That could spark a pandemic, killing millions of people.

"To date, the investigation has found no evidence of spread within the general community and no evidence that efficient human-to-human transmission has occurred, the WHO said in a statement posted on its Web site at http://www.who.int.

/more...

[UpInArms]

15. daily dollar watch

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

Last trade 84.40 Change -0.45 (-0.53%)

Potential Resumption of Dollar Weakness

EUR/USD – EUR/USD dipped below 1.2800 and tested the 61.8% fibo of 1.2691-1.2886 at 1.2765. Although the dip to that level was rapid, the pair has rallied back to 1.2850 with vigor, keeping a cautious short term bullish tone. Support is at the 61.8% and 78.6% fibos of 1.2691-1.2886 at 1.2766 and 1.2733. Staunch resistance is at 1.2875 as evidenced by the triple top on the hourly. Daily oscillators are quite bearish though with MACD sloping down and momentum in negative territory for the first time since 4/18 when the pair was at 1.2350. If today’s low at 1.2763 fails to hold up as support, then a test of the 5/22 low at 1.2694 is a possibility.

<snip>

USD/JPY – The bearish reverse hammer two days ago at the 38.2% fibo of 118.87-108.98 at 112.75 has kept USD/JPY bulls at bay. Today’s interim high was rejected at the 78.6% fibo of 112.93-110.95 at 112.50. This suggests that the rally to 112.61 was a corrective second wave and that a third wave could be underway towards Fibonacci extensions of 110.20 (112.61-(.382*(112.93-110.95)) or 109.73 (112.61-(.618*(112.93-110.95)). Immediate resistance is at the mentioned 112.61 followed by the 5/22 high at 112.93. The pair has traded along its 20 day SMA the last 4 days. This moving average offers a good point of reference from which to trade.

<snip>

USD/CAD – USD/CAD rallied significantly yesterday and formed an inside day just above its 10 and 20 day SMA’s. The correction of the recent downtrend to 1.0969 has been a choppy one. A continued rise is suggested by a potential reverse head and shoulders continuation pattern (visible on the hourly). This is in agreement with a short term 5 wave pattern that puts corrective wave 4 ending at 1.1193 and thus wave 5 would be starting at current levels. A rally tests the triple top at 1.1265 (from the last 3 day’s highs). The pair is supported by the 20 day SMA at 1.1120 but a break through there exposes the 5/18 low of 1.1096.

...more...

[UpInArms]

46. Dollar a dirty word for Russia's State Duma

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=topNews&storyID=2006-05-24T102814Z_01_L24497045_RTRUKOC_0_US-RUSSIA-ROUBLE.xml

MOSCOW (Reuters) - Russia's parliament gave initial approval on Wednesday to a draft law that will punish government ministers for saying "dollar" when they could have used the word "rouble" instead.

Backers of the law say they want to rebuild pride in the Russian currency and draw a line under the years when galloping inflation meant most people did business in dollars. Critics say it is unworkable and political posturing.

The State Duma, or lower house of parliament, backed the draft in its first reading by 384 votes, with one abstention. It must pass a further two readings but is not expected to change significantly.

"The rouble is on the move," said nationalist lawmaker Vladimir Zhirinovsky, drawing a parallel with the Soviet Red Army's victorious march across Europe at the end of World War Two. "The next stop is Berlin."

The rouble has risen 6.7 percent against the dollar this year. President Vladimir Putin has said he wants restrictions on trading in the currency to be lifted by July 1, making it fully convertible.

...more...

[Ghost Dog]

55. Misunderstanding between Russia and the West is growing - Kasyanov

http://www.interfax.com/17/158744/Interview.aspx

(Interfax interview) 23 May. Former Russian Prime Minister Mikhail Kasyanov has left for Paris on a business trip where he will meet with representatives of French political and business circles. Kasyanov has already attended an international conference in Brussels dealing with Russia-EU energy cooperation and visited Berlin during May. Before departure he granted an interview to Interfax in which he assessed Russia’s relations with the West.

"There is no cold war between Russia and the West. Instead there is growing mutual misunderstanding caused primarily by errors in Russia's foreign policy and its reluctance to recognize them and to make corresponding conclusions," he said.

"Such a situation is temporary. As soon as we return to the road of building a normal civilized nation, a national guided by European values of democracy and the market economy, the cool spell will end," Kasyanov said.

Asked to comment on criticism of Russia by U.S. Vice President Dick Cheney at a conference in Vilnius earlier in May, Kasyanov agreed with the main points and added: "It would have been even more useful if the same words were to have been politely but firmly publicly expressed directly to the leaders of this country in Russia."

Speaking of the present state of Russian-U.S. relations Kasyanov said: "The incumbent American administration has made a mistake by rejecting the existing forms of bilateral economic cooperation."

"Russia and the United States simply must advance their partnership for the sake of global strategic security," he said. In this context he described the current fanning of anti-American feelings in Russia as extremely dangerous "for the first time since the Soviet era."

/More...

[AnneD]

96. Could I pay for my

freedom fries with roubles?:spray:

[Ghost Dog]

139. Well, be careful still if this kind of story is anything to go by:

Defrauded Russian homebuyers demand compensation
http://www.guardian.co.uk/international/story/0,,1781552,00.html
Michael Mainville in Moscow
Wednesday May 24, 2006
The Guardian

Thousands of Russian homebuyers who lost their life savings in property scams are demanding compensation from the government.

Homebuyers claiming to represent 200,000 families across the country who fell victim to the scams wrote to the president this week demanding that the government ensures they get either flats or cash refunds, and calling for stronger oversight of the construction industry.

"Having paid for apartments, we have no place to live, because of flawed legislation in the field of housing construction and land ownership, corruption, bureaucracy and the criminal negligence of officials and law enforcement bodies," the letter read.

The homebuyers say they were defrauded by construction companies that promised customers affordable new housing in Moscow and other cities. After accepting partial or full payments in cash for the flats - common practice in the Russian housing market - the firms never built the apartments or sold them to multiple buyers.

<snip>

In a rare show of public defiance for Russia, the defrauded homebuyers have organised a series of anti-government demonstrations. Last Friday more than 1,000 protesters rallied outside Moscow's White House, which houses government offices. About 50 protesters tried to set up a camp at the rally but were dispersed by riot police. Another protest is planned.

/more...

Not that this kind of greedy caveat emptor story isn't entirely unfamiliar right here in Spain, for example...

[UpInArms]

62. Dollar falls after weaker durable-goods orders

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB6C198FE%2D0757%2D4482%2DB58F%2DA468F99B4A40%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- The dollar extended losses against the euro and yen early Wednesday in the wake of worse-than-expected U.S. durable-goods orders data. Led by weaker demand for airplanes, orders for new U.S.-made durable goods decreased 4.8% in April, the Commerce Department said. The drop was larger than expected. Economists were forecasting orders to fall 0.6%. Durable orders in March were revised to a 6.6% increase from 6.4% previously estimated. The dollar was last at 111.74 yen vs. 111.85 yen before data. The euro traded at $1.2868 vs. $1.2853 before data.

[UpInArms]

67. Bank of Canada raises rates again, signals pause

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-24T130049Z_01_BAC000039_RTRIDST_0_BANK-OF-CANADA-RAISES-RATES-AGAIN-SIGNALS-PAUSE.XML

OTTAWA, May 24 (Reuters) - The Bank of Canada raised its key
overnight interest rate on Wednesday by a quarter percentage
point to 4.25 percent, as expected, but signaled it would not
raise rates further at least for now.

For the first time since September, the bank's statement
made no mention of the possible need for further rate hikes.

"With today's increase, the target for the overnight rate is
now at a level that is expected to keep the Canadian economy on
the base-case path projected in the April Monetary Policy Report
and to return inflation to the 2 percent target," the bank said
in its statement.

Recent data have confirmed that domestic demand is robust
and that overall inflation and core inflation, which strips out
the most volatile items, are "evolving largely in line with the
Bank's expectations," it said.

...more...

[UpInArms]

86. Dollar strengthens after robust housing data

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B7C40149C%2D8438%2D4215%2DA4AF%2D5C82A7C2ABBA%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - The dollar gained versus the yen and pared losses versus the euro Wednesday after a Commerce Department report showed an unexpected increase in U.S. new homes sales. New home sales rose 4.9% in April to 1.20 million units, the second straight monthly increase and the highest level of the year, the report showed. Economists expected sales to fall to 1.15 million given the general weakness in the housing market. The dollar was last at 112.44 yen, up 0.3%, while the euro was up 0.2% at $1.2808.

[54anickel]

93. The Current Account Deficit Matters

http://www.kitcocasey.com/displayArticle.php?id=736

Is the dollar at risk because of America’s enormous current account deficit? Many “experts” are spreading information that is confusing, outdated or simply not applicable. Yes, the current account deficit puts the dollar at risk; at the same time, however, a lower dollar will provide no long-term solution to the current account deficit.

The current account deficit is the trade deficit plus certain financial flows. It is precisely the amount foreigners must acquire in US denominated assets to keep the dollar from falling. In 2005, foreigners picked up the tap of over $800 billion – or more than $2 billion a day. If we buy sneakers from China, but have nothing to sell to the Chinese, it makes the current account balance worse; if our government issues debt that is not acquired by domestic taxpayers, foreigners are lending a helping hand to finance our spending. The current account deficit is now about 7% of gross domestic product (GDP) – historically, currencies have caved in when the current account deficit has been above 5% for an extended period.

Some say in the grand scheme of things, even a $1 trillion deficit a year does not matter because America has tens of trillions in assets. That analysis compares apples with oranges. If you earn $100,000 a year, but spend $120,000 a year with $1 million in the bank, of course you are not going to be broke tomorrow. Indeed, if you spend the $120,000 to invest in a new business, you may justify carrying negative cash flow until you reap the rewards of your investment. But if you use the $120,000 to consume, you should seriously think about how sustainable your lifestyle is. America’s savings rate turned negative last year.

The more relevant aspect, however, is that one cannot mix cash flow items with balance sheet items. It may well be that we have untapped reserves – there may be lots of family silver we can still sell. But the current account deficit must be financed every single day at a rate of over $2 billion a day; otherwise, the dollar will fall.

Some argue that the reasons foreigners finance the current account deficit because they like investing in the US. Almost: foreigners invest in dollar denominated assets because they perceive it in their interest. Asia over the past years has been highly dependent on export to the United States. By buying dollar denominated assets, they can keep their currencies weak: when the Chinese sell sneakers to American consumers, you receive dollars in return; the Chinese in return have to decide what to do with the dollar they receive. If they were to sell dollars and buy Chinese yuan, there would be upward pressure on the yuan. If, however, they re-invest their dollars in denominated assets, they can keep their own currencies weak to have more competitive exports.

more...

[UpInArms]

127. dollar galloping upward

Last trade 85.13 Change +0.28 (+0.33%)

Settle Time 15:00 Open 84.86

Previous Close 84.85 High 85.27

Low 84.31 2006-05-24 12:45:39, 30 min delay

Isn't it amazing that just a few months ago, they were forecasting no May rate hike - then no June rate hike.

Now May is foregone and in the bag and they are looking forward to another hike in June.

So much for that spinmeister coming out to boost stocks back at the beginning of April with the talk about rate hikes ending :eyes:

[Ghost Dog]

16. Japanese Stocks Rebound From 3-Month Low

http://asia.news.yahoo.com/060524/ap/d8hq15l00.html

Japanese stocks rebounded from three-month lows Wednesday as bargain-hunting in a range of shares lifted a benchmark index that had fallen nine of the preceding 11 sessions. The dollar rose more than 1 yen into the 112-yen range.

The benchmark Nikkei 225 index rose 308.00 points, or 1.97 percent, to finish at 15,907.20 points on the Tokyo Stock Exchange. The index fell 1.63 percent Tuesday to 15,599.20 points, the lowest since Feb. 20.

"The commodity rebound overnight suggests there is still liquidity and risk appetite out there to flow back into equities... and that has helped the Nikkei," said Michiro Naito, equity derivative strategist with JP Morgan in Tokyo.

A rally overnight in metal and oil prices reinvigorated the oil, mining and metals sector after a sell-off of commodity stocks over the past week, traders said.

Investors bought electronics, automobile, bank, and metal shares that had fallen in recent sessions.

/more...

[Ghost Dog]

27. Japan overcomes 'lost decade of deflation' to post solid growth: IMF

http://asia.news.yahoo.com/060524/kyodo/d8hq1ib80.html

(Kyodo) Japan has come out of "the lost decade of deflation" and is now projected to post a growth rate of 2.75 percent in 2006 and 2 percent in 2007, a senior International Monetary Fund official said Wednesday.

"Taking the picture of the economy as a whole and looking at the fact that prices are now starting to rise...the worst (of) the problems from the lost decade basically seem to be behind us," Daniel Citrin, deputy director of the IMF's Asia and Pacific Department, said, while noting some price indicators are still declining.

"I would say that we would characterize Japan as having...come out of the period of the lost decade of deflation," Citrin told reporters after his IMF mission completed an annual consultation with the Japanese government on economic policy.

It is the first time the IMF has publicly said Japan has overcome deflation, but the Japanese government has yet to declare that the economy has pulled out of deflation.

/more...

[Ghost Dog]

28. Japan gov't bond, futures prices fall on Tokyo stocks' rebound

http://asia.news.yahoo.com/060524/kyodo/d8hq1dtg0.html

(Kyodo) _ Prices of 10-year Japanese government bonds and bond futures fell Wednesday on a sharp rebound in Tokyo stocks.

In interdealer trading, the yield on the No. 279, 2.0 percent issue rose 0.030 percentage point from Tuesday's close to end the day at 1.820 percent.

The price of the key June futures contract for 10-year bonds fell 0.23 point to 133.55 on the Tokyo Stock Exchange, with the yield up 0.021 percentage point to 1.980 percent.

/bit more...

[54anickel]

92. How Japan Sank the Market

http://www.thestreet.com/_pbear/comment/investing/10287575.html

Trying to make sense of the global stock market selloff that began on May 13?

Remember that old Wall Street saying, "Don't fight the Bank of Japan"? If you want to know what has rattled stock markets around the world and when you can expect it to end, study the Bank of Japan.

What's that? You thought the saying was "Don't fight the Fed"? How yesterday. Right now the Bank of Japan, not the U.S. Federal Reserve, is the most important central bank in the world. It's the Bank of Japan that's calling the tune for the world's equity markets.

snip>

Not the Fed, but the Bank
This is where the Bank of Japan comes in. You can't understand why some asset prices have tumbled and others have stayed solid if you don't know what the Bank of Japan has been doing over the last few months.

As good as its word, the Bank of Japan has been taking huge amounts of liquidity out of the global capital markets. In an effort to reinflate the Japanese economy and end the years of deflation that had kept the country mired in a no-growth swamp, the Bank of Japan pumped billions into the country's banking system. Now that the economy is finally growing again and prices aren't sinking any longer, the Bank of Japan has given two cheers to the return of inflation and has started to remove some of that cash from the financial markets.

In the last two months, the bank has taken almost 16 trillion yen, or about $140 billion, in cash deposits out of the country's banks. The country's money supply has fallen by almost 10%. The Bank of Japan isn't finished pumping out the liquidity that it had pumped in. That should take a few more months. And when it is finished, the Bank of Japan is expected to start raising short-term interest rates.

more...

[Ghost Dog]

158. Yup. Let the good (bad old)times roll, again...

[Ghost Dog]

17. European shares resume fall on bird flu fears

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060524:MTFH21870_2006-05-24_07-15-40_L24711302&rpc=44&search=ROGN.VX&searchtype=symbol&norics=1
Wed May 24, 2006 3:15 AM ET

LONDON, May 24 (Reuters) - European shares slipped on Wednesday, resuming their recent sharp downward trend, as fears grew of possible human-to-human bird flu transmission in Indonesia and after Wall Street ended down.

The bird-flu news boosted shares in Tamiflu maker Roche (ROGN.VX: Quote, Profile, Research), which added 1.5 percent after the European Union also approved its Herceptin cancer drug for use in patients with early-stage breast cancer.

By 0710 GMT, the FTSEurofirst 300 index <.FTEU3> of top shares was 0.9 percent weaker at 1,290.61. Stocks are now over 8 percent below a near-five year high of 1,407.52 hit on May 11.

/more...

[Ghost Dog]

18. FTSE tumbles, BA falls on bird flu concerns

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060524:MTFH22177_2006-05-24_07-29-14_IRE426934&symbol=BAY.L&rpc=44
Wed May 24, 2006 3:29 AM ET

LONDON, May 24 (Reuters) - Britain's top share index fell sharply on Wednesday, with British Airways (BAY.L: Quote, Profile, Research) among the top fallers as investors reckoned fears spread of possible human-to-human bird flu transmission in Indonesia may curtail travel.

By 0719 GMT the FTSE 100 share index <.FTSE> was down 49.9 points, or 0.9 percent, at 5,628.0 to continue the recent trend of sharp gyrations.

Adding to fears of rising global interest rates were concerns over the possible spread of bird flu between humans after the World Health Organization said on Tuesday that an Indonesian who died of bird flu after nursing his sick son may have caught the virus in a case of direct human-to-human transmission.

/more...

[Mojorabbit]

73. WHO won't declare phase 4 yet

even though the phase 4 definition IS where we are now. Look at what happened to overseas markets last night with just the suggestion they might do it. I bet asian govts were on the phone late last night to them. Australia took a hit because they are close to Indonesia. Shades of volatility to come is this thing progresses.

http://www.bloomberg.com/apps/news?pid=10000081&sid=aDdcPPhLvVV8&refer=australia
Australian Dollar Falls on Concern Over Bird Flu in Indonesia
May 24 (Bloomberg) -- The Australian dollar fell on concern bird flu may have developed in Indonesia, its biggest neighbor, so it can pass from human to human.

The Australian dollar fell from its highest level this week after it was reported United Nations disease trackers probing the possibility of human-to-human transmission of bird flu said a group of seven Indonesians may have contracted the disease from other people rather than birds. A bird flu outbreak could threaten economic growth.

``Because Indonesia is in the same region as Australia, and the Australian dollar is a liquid currency, it's the currency that's getting smashed,'' said Stephen Koukoulas, chief Asia- Pacific strategist at TD Securities Ltd. in Sydney.

http://today.reuters.co.uk/news/newsArticle.aspx?type=businessNews&storyID=2006-05-24T051645Z_01_L22332659_RTRUKOC_0_UK-BRITAIN-MARKETS.xml
Stocks set to fall on bird flu worries
Wed May 24, 2006 6:16 AM BST
Email This Article | Print This Article | RSS
<-> Text <+>

LONDON (Reuters) - Stocks are expected to fall on Wednesday, putting a stop to Tuesday's rally after a drop on Wall Street and as concerns about the spread of bird flu return.

The World Health Organisation said human-to-human transmission of the virus could not be ruled out in the deaths of six Indonesians but emphasised that bird flu had not mutated to become more dangerous.
http://www.bloomberg.com/apps/news?pid=10000101&sid=aBFe4E6EmdlE&refer=japan
Dollar Advances as Bird-Flu Scare Fuels Demand for Safer Assets
May 24 (Bloomberg) -- The dollar gained for a second day after the World Health Organization said seven Indonesians may have contracted bird flu from other people, raising concerns of a global pandemic and bolstering demand for safer investments.

Almost all the cases of the lethal bird-flu virus confirmed since late 2003 have been traced to direct contact with sick or dead birds, and evidence of transmission between humans may spur demand for the safety of dollars. A flu pandemic such as the one that struck in 1918 might shrink the global economy by an eighth, according to a report by the Australian National University.

``Markets are focusing on the bird flu and are seeing the downside risks to the global growth view,'' Stephen Koukoulas, chief Asia-Pacific strategist at TD Securities Ltd., said in Sydney. ``We're probably seeing some safe-haven momentum and the U.S. dollar is the preferred currency in difficult times.''
snip
All Eyes'

``All eyes will be on WHO announcements today about this outbreak, so we could see some big moves,'' said Matthew Jones, senior currency dealer at Customs House Global Foreign Exchange in Sydney. ``Any bad news will see a flight to quality and see the U.S. dollar gaining.''

Evidence of the virus strain being passed from human-to- human in a chain of three or more people may prompt the WHO to convene a panel of experts and consider raising the pandemic alert level, spokeswoman Maria Cheng said yesterday in Geneva.

``Considering the evidence and the size of the cluster, it's a possibility,'' Cheng said. ``It depends on what we're dealing with in Indonesia. It's an evolving situation.''

Gains in the dollar were curbed as some traders said the reaction to the Indonesian news was overblown as there isn't any suggestion the virus is easily transmitted between people.

`Reaction Overdone'

The investigation has so far found no evidence of a spread within the general community in Sumatra or that efficient human- to-human transmission has occurred, the WHO said.

``I can't see major flows coming in on the back of bird flu in Indonesia,'' said George Kapasakis, a senior trader at Mizuho Corporate Bank in Sydney. ``The reaction is overdone on pure logic. Any uptick in the U.S. dollar is a good opportunity to sell it.'' The dollar will decline as far as $1.37 against the euro and 104 yen within six months, he forecast.

[Ghost Dog]

74. Thanks for that info, Mojorabbit.

'All Eyes' indeed. At least we have the UN's WHO on the job this time around... And where would the world be by now without the (sure, underfunded, poltically & beaurocratically imperfect) UNO?

[Ghost Dog]

80. Late WHO chief warns of bird flu "blind spots"

http://today.reuters.co.uk/News/newsArticle.aspx?type=globalNews&storyID=2006-05-24T010358Z_01_L23288842_RTRUKOC_0_US-BIRDFLU-WHO.xml&src=052406_0901_FEATURES_bird_flu
Tue May 23, 2006 8:15 PM BST

GENEVA (Reuters) - Bird flu threatens human lives in hundreds and possibly thousands of "disease blind spots" around the globe, the late head of the World Health Organization said in remarks prepared before his death.

The U.N. agency issued the report on Tuesday to the organization's annual assembly of Director-General Lee Jong-wook, who died on Monday morning from a stroke.

"There are still hundreds, maybe thousands of disease blind spots around the world -- where no one knows what they have to watch for, or what they must report," Lee wrote.

Preparedness for a feared bird flu pandemic, which could kill millions of people, is high on the agenda of the six-day meeting of the WHO's 192 member states.

Health ministers from developing countries, which have so far suffered all the 124 deaths from bird flu, spoke frankly of lacking the funds and technical skills to fight the threat.

Their assessments as the WHO studies a cluster of infections in Indonesia that has killed at least six people highlighted growing concerns about how and whether a human-to-human outbreak could be controlled.

"Member states of the African region are not yet adequately prepared for an influenza epidemic should one occur," Nigerian Health Minister Eyitayo Lambo said in a speech made on behalf of African nations.

/more...

[Ghost Dog]

81. Bird flu adds fresh risk to sickly markets

http://today.reuters.co.uk/news/newsArticle.aspx?type=worldNews&storyid=2006-05-24T124001Z_01_L24314792_RTRUKOT_0_TEXT0.xml&src=052406_0901_FEATURES_bird_flu
Wed May 24, 2006 1:40 PM BST
By Jeremy Gaunt, European Investment Correspondent

LONDON (Reuters) - Just what investors didn't need. Already shaken by tumbling equity markets, sliding commodity prices and rising currency volatility, they were faced on Wednesday with renewed worries about a bird flu pandemic.

News that limited human-to-human transmission of avian influenza might have occurred in an Indonesian family rippled across markets, moving selected equities, aggravating Asian currency losses and increasing demand for safe-haven bonds.

"Bird-flu (is) back on the radar screen," investment bank Mellon said in a note.

Although the World Health Organisation (WHO) said there was no evidence that the H5N1 virus had mutated to make it easier to be transmitted between people, the Indonesia case piled on the pressure.

The overarching fear is that a human-to-human mutation of the virus will trigger a global outbreak of the disease, potentially killing millions and devastating economies.

Currencies in Asia, where the majority of bird flu cases have occurred, fell. Indonesia's rupiah slid close to a 3-1/2 month low against the dollar while the Japanese yen also weakened.

In Europe, the worry initially drove up demand for euro zone government bonds. The Bund future hit its highest level since early April, although it later see-sawed on other factors.

The effect of the bird flu scare was also enough to help start European stock markets off on another tumble and had some specific impact.

/more...

[Mojorabbit]

91. WHO to leave alert level unchanged - Bloomberg

Yesterday they said there were no new mutations and they were contemplating raising the phase level. Today they say they have NOT completed genetic gene sequencing and they are not going to raise the level.
Can we say Politics?
http://www.bloomberg.com/apps/news?pid=10000087&sid=ak_3aDG66ASE&refer=top_world_news
World Health Organization officials don't immediately plan to raise the alert level for a possible lethal pandemic of avian flu, the agency's spokeswoman said.

``We're not planning to convene a task force meeting in the immediate future,'' said Maria Cheng, spokeswoman for the United Nations health group in Geneva, in a phone interview today
snip
Genetic sequencing of viruses isolated from the Sumatra cases in Indonesia is incomplete, she said

[Ghost Dog]

29. GLOBAL MARKETS-Ifo boosts euro, pares share losses

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060524:MTFH24419_2006-05-24_09-18-28_L24283096&rpc=44&search=ROGN.VX&searchtype=symbol&norics=1
Wed May 24, 2006 5:18 AM ET

LONDON, May 24 (Reuters) - Robust German business sentiment sent the euro higher and helped European shares trim losses on Wednesday, distracting investors from worries over a World Health Organisation report of human-to-human bird flu transmission.

Many in the markets had expected a sharp decline in confidence after data on Tuesday showed a sharp fall in Belgian business confidence. Germany's May business climate index came in at 105.6, above the consensus forecast of 105.

"Everybody was looking for a decline," said Niels From, FX strategist at Dresdner Kleinwort Wasserstein in Frankfurt. "It confirms good momentum in German economy despite a strong euro. It's supporting the currency."

The euro rose from around $1.2830 before the data to hit a session high of $1.2867 <EUR=>.

The June Bund future retreated to 116.35 <FGBLM6> wiping out almost all of the session's gains. The future had risen to a six-week peak of 116.58 in opening trade as bird flu fears boosted demand for safe-haven bonds.

The World Health Organisation said limited human-to-human transmission of bird flu might have occurred in an Indonesian family but there was no evidence the virus has mutated to allow it to pass easily among people.

The news briefly pushed up the dollar against the yen and contributed to European stocks extending their recent sharp fall, although shares in Tamiflu maker Roche (ROGN.VX: Quote, Profile, Research) ticked up after the European Union also approved its Herceptin cancer drug for use in patients with early-stage breast cancer.

Europe's FTSEurofirst 300 index <.FTEU3> of top shares was 0.5 percent weaker at 1,295.7 points having fallen around 8 percent from a near-five year high of 1,407.52 hit on May 11.

/more...

[Ghost Dog]

32. GLOBAL MARKETS-Shares extend fall on rate fears,Ifo boosts euro

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060524:MTFH26380_2006-05-24_10-50-28_L24283096&symbol=.FTEU3&rpc=44
Wed May 24, 2006 6:50 AM ET

LONDON, May 24 (Reuters) - European share indexes extended heavy falls on Wednesday on nagging fears about inflation and rising global interest rates although robust German business sentiment briefly helped them trim losses and boosted the euro. Markets were also spooked by the World Health Organisation saying limited human-to-human transmission of bird flu might have occurred in an Indonesian family although there was no evidence the virus has mutated to allow it to pass easily among people.

"There is a sudden change of themes and behaviours, implying that we are in a period of consolidation that could last at least for a few weeks," said Jean-Luc Buchalet, strategist at Facset JCF.

"Markets are always symptomatic of what they anticipate. What they see is the dollar coming off and interest rates rising."

<snip>

Europe's FTSEurofirst 300 index <.FTEU3> of top shares was 1.2 percent weaker at 1,286.7 points having now fallen almost 9 percent from a near-five year high of 1,407.52 hit on May 11.

/more detail...

[Ghost Dog]

47. European Blue Chips at around 12:00 GMT (13:00 London; 14:00 Mainland)

London FTSE-100 5583 -1.69%
Paris CAC-40 4852.47 -1.60%
Frankfut DAX 5585.09 -1.64%
Zurich SMI 7460.47 -1.48 %

[Ghost Dog]

130. European stocks end lower as miner, oil slip more

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060524:MTFH35550_2006-05-24_15-48-36_L24543745&symbol=ANTO.L&rpc=44
Wed May 24, 2006 11:48 AM ET

PARIS/LONDON, May 24 (Reuters) - European shares fell on Wednesday as investors continued to shift money out of former equity darlings such as mining and energy stocks, but pleasing U.S. housing data helped the market close above session lows.

Mining stocks Antofagasta (ANTO.L: Quote, Profile, Research) and Anglo American (AAL.L: Quote, Profile, Research) slid more than 3 percent each as gnawing worries that economic growth and demand for commodities would slow kept metals prices under pressure. Major energy stocks also weighed, with BP (BP.L: Quote, Profile, Research) down 2.4 percent and Total (TOTF.PA: Quote, Profile, Research) down 2.3 percent as crude prices dipped back towards $71 a barrel after U.S. gasoline stocks rose more than expected.

<snip>

The pan-European FTSEurofirst 300 index <.FTEU3> of leading shares unofficially closed 1.3 percent lower at 1,284.97, bringing to 8.7 percent its slide from a near-five year high of 1,407.52 set on May 11.

The FTSE 100 closed 1.6 percent lower at 5,587.1 points, struggling to keep in touch with the end-2005 close of 5,618 but up on the session low-point of 5,563.5.

Hilary Cook, Director of Investment Strategy at Barclays Stockbrokers, said markets were not looking for any imminent resolution to the jitters over inflation, interest rates and tumbling commodity prices which have sliced 8.4 percent off the FTSE in the past 2 weeks. "It doesn't feel like there's any short-term panacea. We're in a period of very high volatility, nobody wants to touch anything risky in terms of emerging markets or commodities. Of course the UK is riskier than it used to be because it's much more commodity exposed now," said Cook.

/more...

[Ghost Dog]

132. Europe’s volatile equity run forces fresh losses

http://news.ft.com/cms/s/417fcbdc-eaed-11da-823e-0000779e2340.html
(Templating) By Neil Dennis and Darryl Thomson
Published: May 24 2006 07:28 | Last updated: May 24 2006 17:33

(FT) European equities continued their volatile run on Monday, suffering fresh losses, and pushing the FTSE Eurofirst 300 down 1.4 per cent to 1,284.27.

As was the case in recent sessions, resource-related stocks were the biggest movers. Miners, oil producers and the engineering and services companies that supply them lost most ground.

Financial stocks, which are exposed to falling equity markets, added further weight to the declines.

Austrian and Greek banks, which have forged an acquisition trail across central and eastern Europe, were hit as investors removed money from the risk of emerging markets.

/more detail...

[Ghost Dog]

133. Unease as London hands back much of its gains

http://news.ft.com/cms/s/49b69a30-eaf5-11da-823e-0000779e2340.html
By (Party Gaming Templaters) Neil Hume and Robert Orr
Published: May 24 2006 08:48 | Last updated: May 24 2006 18:14

PartyGaming hit a two-month low yesterday as the London market surrendered a large chunk of Tuesday’s gains in another volatile trading session.

Shares in the internet gaming company closed 6.5 per cent lower at 122¾p - the biggest faller in a weak FTSE 100 - as traders trimmed positions ahead of a key debate in the US House of Representatives.

Today, the main Judiciary Committee votes on Congressmen Bob Goodlatte’s Internet Gaming Prohibition Act. If they approved the bill it can then be sent to the full House for a vote on June 11. Based on previous regulatory setbacks, traders reckon PartyGaming shares could fall by as much as 5 per cent if the bill is given the green the light.

The Goodlatte debate comes just days after two of PartyGaming’s founders, Anurag Dikshit and Vikrant Bhargava, announced plans to step down from the board. Their resignations have sparked concerns the duo will look to sell a large chunk of their 39 per cent stake following the expiry of a lock-up period at the end of June. However, analysts are reckons such concerns are misplaced.

“PartyGaming’s advantageous tax status in Gibraltar is dependent on ‘no change of control’ which means founder shareholders retaining the majority of their stakes. This should limit the sales post lock-up expiry,” ABN Amro said.

In the wider market, leading shares continued their recent switchback ride. Unsettled by a late sell-off on Wall Street overnight, the FTSE 100 closed 91.6 points, or 1.6 per cent lower at 5,587.1 with mining and oil stocks doing most of the damage. Traders noted that after yesterday’s fall the blue chip index is negative territory for 2006.

Lower down the market, it was much the same picture with the FTSE 250, which rose 405 points on Tuesday, falling 180.3 points, or 1.95 per cent, to 9,054.

/more party-gaming more serious detail...

[Ghost Dog]

134. Europe closing Blue-Chip indices:

London FTSE-100 5587.1 -1.61%
Paris CAC-40 4870.02 -1.25%
Frankfurt DAX 5587.23 -1.61%
Zurich SMI 7481.33 -1.20%

Check out those FTSE-100 and DAX indices on a par there... And a football (soccer) World Cup coming up shortly in Germany, so they tell me. Expect silly small-minded English competitive sparks to fly!

[UpInArms]

20. If the rich are doing so well, how much worse off are the rest of us?

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B3003D864%2D9DF1%2D4829%2D8DB3%2D01E56C3A0F70%7D&symbol=

SANTA MONICA, Calif. (MarketWatch) -- If the rich rule the world or at least the U.S. economy, then why not track their spending to determine inflation?

That is the premise of a private bank's recent commentary, which analyzed sales at Neiman Marcus, the high-end retailer, to glean capital market insight. It's an unusual -- a la "Freakonomics" -- take on traditional inflation measures because it clocks spending by wealthy consumers as opposed to all consumers.

The theory is that recently reported economic data look pretty good, but are skewed because they don't accurately portray general well being. Here's why: The wealthiest consumers in this country account for the majority of spending. Therefore, any falloff by lower income households will be overshadowed. In other words, the economic effects of, say, gasoline prices on the poor and middle class won't be made as apparent by looking at general economic data. Other indicators have to be consulted to get a true portrait of the U.S. economy and where it's headed.

<snip>

To better gauge the discrepancy in the economy and hence the "skew" in economic data, Ablin got creative. "We tracked same-store sales growth of Neiman Marcus, an exclusive department store that caters to the well-heeled, against a similar metric at Family Dollar, a low-entry-point discount store that serves low-income customers."

The results, Ablin says, were stunning: "Neiman Marcus sales growth has consistently outpaced sales growth at Family Dollar since April 2003, the point at which gasoline prices began their multiyear surge."

...more...

[Ghost Dog]

21. FOREX-Strong German data lifts euro to day's highs

http://yahoo.reuters.com/investing/FinanceArticle.aspx?type=economicNews&storyID=urn:newsml:reuters.com:20060524:MTFH23951_2006-05-24_08-57-16_L24745156&rpc=44
Wed May 24, 2006 4:57 AM ET

LONDON, May 24 (Reuters) - The euro rose to session highs against the dollar on Wednesday after a key gauge of German business confidence surprised to the upside.

Germany's May business climate index came in at 105.6, above the consensus forecast of 105, according to the German Ifo institute.

"Everybody was looking for a decline," said Niels From, currency strategist at Dresdner Kleinwort Wasserstein in Frankfurt. "It confirms good momentum in German economy despite a strong euro. It's supporting the currency."

Many in the market had been expecting a lower number after data on Tuesday showed a sharper than expected fall in Belgian business confidence for the same month.

The dollar rose earlier, particularly against the yen, as a report of possible human-to-human transmission of bird flu in Indonesia aggravated a shakeout in dollar-funded emerging market positions. By 0830 GMT, the euro was up a quarter percent at $1.2851 <EUR=> after hitting a session high of $1.2867 in the wake of the strong German data. The dollar was flat at 111.89 yen after rising as high 112.64 yen <JPY=> on bird flu jitters.

The strong Ifo reading reinforced expectations for more euro-supportive interest rate rises in the euro zone this year.

/more...

[Ghost Dog]

23. WRAPUP 1-Turkey leads emerging markets currencies lower

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060524:MTFH23524_2006-05-24_08-36-42_L24391907&rpc=44&search=.XU100&searchtype=symbol&norics=1
Wed May 24, 2006 4:36 AM ET

By Birsen Altayli

ISTANBUL, May 24 (Reuters) - Turkey's lira led emerging markets currencies lower on Wednesday as domestic political and economic outlook concerns weighed and Asian fears of possible human-to-human transmission of bird flu intensified.

The lira <IYIX=> weakened to its lowest level against the dollar in two years, falling as far as 1.5630 against the greenback, as higher inflation and domestic political concerns weighed. Turkey also took its cue from Brazil.

Asian currencies were undermined by a World Health Organisation (WHO) report on Tuesday saying human-to-human transmission of bird flu could not be ruled out in the deaths of six Indonesians.

"The lira opened weaker in line with the fall in the Brazilian bourse and the loss in value of the Brazilian currency against the dollar. U.S. markets were also weak so we expect selling," said Osman Buyukgoksu of Istanbul-based Ata Invest.

Poland's zloty started around half a percent lower on Wednesday as central European currencies took a fresh hit from a fall in global risk appetite which has tortured emerging markets, dealers said.

In Asia, the Indonesian rupiah <IDR=> fell to 9,425 per dollar, close to last week's 3-1/2-month low of 9,430.

The Japanese yen was on the weaker side of 112 per dollar. The Korean won <KRW=>, Thai baht <THB=> and Malaysian ringgit <MYR=> fell half a percent each and other currencies weakened to a lesser extent.

"This nervous tone is likely to be a repeated theme going forward for the Asian markets, with the market likely to be more sensitive to negative news than positive ones as the market's risk appetite shrinks," analysts at UBS said in a report.

Currency traders said the continued unwinding of emerging market positions by investors was as much the reason for the decline in the regional currencies as bird flu jitters.

/more...

[Ghost Dog]

25. Taiwan dollar slips to near one-month low on yen

http://yahoo.reuters.com/investing/FinanceArticle.aspx?type=economicNews&storyID=urn:newsml:reuters.com:20060524:MTFH24101_2006-05-24_09-02-10_TP84845&rpc=44
Wed May 24, 2006 5:02 AM ET

TAIPEI, May 24 (Reuters) - The Taiwan dollar <TWD=TP> weakened on Wednesday to near a one-month low against the U.S. currency, tracking losses in the Japanese yen after a report of possible human-to-human transmission of bird flu in Indonesia.

But traders said exporters sold U.S. dollars at their highs in the afternoon, helping cushion the fall in the local currency.

The Taiwan dollar closed weaker at T$32.012 to the U.S. currency, from Tuesday's close of T$31.992 and not far from Monday's nadir of T$32.190, the lowest since April 24.

"The yen slipped against the U.S. dollar, which weighed on the Taiwan currency. Foreign investors are likely to continue selling," said a trader in Taipei.

/bit more...

[Ghost Dog]

30. Turkey in no hurry to intervene in markets-PM

http://yahoo.reuters.com/investing/FinanceArticle.aspx?type=economicNews&storyID=urn:newsml:reuters.com:20060524:MTFH23974_2006-05-24_08-58-19_L24329033&rpc=44
Wed May 24, 2006 4:58 AM ET

ANKARA, May 24 (Reuters) - Turkey's Prime Minister Tayyip Erdogan said on Wednesday the government and the central bank were in no hurry to intervene in financial markets, which have fallen sharply in Turkey due to political and economic jitters.

"We're not in a hurry to intervene in markets. Our central bank would not think such a thing and our government has no worries about it," Erdogan said in a televised speech.

He added that other emerging markets were experiencing market volatility.

[Ghost Dog]

31. Turkish shares fall 3 percent in line with lira

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060524:MTFH21094_2006-05-24_06-43-13_IST000268&rpc=44&search=.XU100&searchtype=symbol&norics=1
Wed May 24, 2006 2:43 AM ET

ISTANBUL, May 24 (Reuters) - The main Turkish share index fell three percent in early trade on Wednesday, weakening in line with declines in foreign markets and the lira as investor concerns about Turkey's economic outlook persisted.

The ISE National-100 index <.XU100> dropped as much as 3.06 percent before rebounding partially to be down 2.35 percent at 36,359.50 at 0640 GMT. It rose 2.4 percent on Tuesday, but was currently down nearly 25 percent from its peak this year.

[UpInArms]

64. ? Fire in Cargo Section of Istanbul Airport ?

8:55 AM ET 5/24/06 FIRE IN CARGO SECTION OF ISTANBUL AIRPORT: REPORTS

editing to add link and blurb:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD15CB8A6%2D0808%2D4E58%2DB8E1%2D0DFD572EEE85%7D&dist=newsfinder&symbol=&siteid=mktw

LONDON (MarketWatch) -- A fire in the cargo section of Istanbul airport has blocked air traffic, according to Sky News, quoting local Turkish television reports. Black smoke was seen billowing into the air, footage showed.

[UpInArms]

68. bulletin FIRE, EXPLOSIONS REPORTED AT ISTANBUL AIRPORT

that is now the bulletin across the CBSMarketWatch page

http://www.marketwatch.com/news/newsfinder/default.asp?Property=symb&Value=&doctype=806&submit=Go&scid=0&siteid=mktw

[Ghost Dog]

72. BBC: Fire breaks out at Turkey airport

Plumes of black smoke were rising up from the cargo building

A large fire is engulfing the cargo area of Istanbul's main Ataturk airport, disrupting air traffic.

Hundreds of people have fled the area and nearby terminals and there are unconfirmed reports of cargo workers being trapped.

Huge plumes of black smoke were rising above the airport as firefighters tackled the blaze. Firefighting planes were dropping water from above.

It is not clear what caused the blaze or whether there have been casualties.

The airport is the main airport for domestic and international flights - and serves as the main hub for tourism in Turkey.

/some more...

[Ghost Dog]

88. Update at same (previously missing, sorry) link:

http://news.bbc.co.uk/2/hi/europe/5012706.stm

(BBC) Firefighters are struggling to tackle a huge blaze that has broken out in the cargo area of Istanbul's Ataturk International airport.

Hundreds of people fled the area and nearby terminals and there are no confirmed reports of casualties.

Huge plumes of black smoke were rising from the airport, which is being doused from above by firefighting aircraft.

It is not clear what caused the blaze at the building - which is near a hangar housing military aircraft.

Occasional explosions have been heard. There has been speculation in the Turkish media that chemicals or an electrical short circuit may have been to blame.

<snip>

The BBC's Sarah Rainsford, in Istanbul, said the authorities were struggling to bring the enormous fire under control. She said planes were not being allowed to land and were circling overhead.

She added that there were fears that the flames may jump to the main passenger terminal just a short distance away.

One witness told local television that 250 people worked in the cargo section and everyone there had made it out safely.

In Ankara, the Ministry of Transport has convened an emergency meeting to try to find out what happened.

/some more...

Turkey definitely passing through a bad patch, one thing after another, recently...

[Ghost Dog]

34. Euro rallies, talk of central bank buying

http://yahoo.reuters.com/investing/FinanceArticle.aspx?type=economicNews&storyID=urn:newsml:reuters.com:20060524:MTFH26314_2006-05-24_10-48-02_L24362416&rpc=44
Wed May 24, 2006 6:48 AM ET

LONDON, May 24 (Reuters) - The euro rallied against the dollar on Wednesday, gaining nearly half a percent from the U.S. close amid talk of central bank buying, including by the People's Bank of China.

Traders said central banks were buying the euro as part of reserve diversification, a theme which helped the euro to record highs against the dollar in late 2004.

"Central banks are buying euros on any dips," said a London-based foreign exchange trader, while a Frankfurt-based trader said:.

"China obviously is heavily buying into euro."

<snip>

U.S. Treasury Assistant Secretary Emil Henry said on Wednesday that a large diversification away from U.S. Treasury bonds by foreign holders was "just implausible" and the dollar was set to remain the world's reserve currency.

/bit snipped...

Uh huh. No surprises here...

[54anickel]

70. The rehetoric is getiing more and more defensive of the buck's status

as the world's reserve currency this year. Would they be talking about it if they weren't worried? :freak:

[UpInArms]

22. US home loan demand fell despite lower rates

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-24T110122Z_01_N24314823_RTRIDST_0_ECONOMY-MORTGAGES-UPDATE-1.XML

NEW YORK, May 24 (Reuters) - U.S. mortgage applications fell last week, driven by a steep decline in home purchasing loans even as interest rates dropped, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended May 19 decreased 6.0 percent to 552.6 from the previous week's 588.0.

The MBA's seasonally adjusted purchase mortgage index fell 7.1 percent to 396.4. The purchase index -- considered a timely gauge of U.S. home sales -- was also below its year-ago level of 482.3.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.61 percent, down 0.05 percentage point from the previous week, which was its highest level in nearly four years.

...more...

[UpInArms]

24. Bush border policy linked to Carlyle deal?

http://worldnetdaily.com/news/article.asp?ARTICLE_ID=50334

In January 2004, the Carlyle Group put together a new team to begin investing in Mexico. The team consisted of Luis Téllez, who was then an executive vice president of Desc, one of Mexico's largest companies; Joaquin Avila, who was then a managing director of Lehman Brothers; and Mark McLarty, the president of Kissinger McLarty Associates and chief of staff to and special envoy to the Americas for President Bill Clinton.

From 1987 to 1993, Téllez had served in several important positions within the Mexican government, including head economist at the Ministry of Treasury and undersecretary of planning at the Ministry of Agriculture and Water Resources.

As reported in The Guardian in 2001, Bush 41 and 43 have been connected to the secretive Carlyle Group equity fund in various ways resulting in substantial compensation to the Bush family from Carlyle Group investments. Dubai International Capital also co-invests in Carlyle Group private equity deals, as disclosed on the website of Dubai International Capital. Earlier this year, Dubai International Capital surfaced in the U.S. press as Dubai Ports World and sought to acquire P&O Ports, the port operations subsidiary of the London-based Peninsular & Oriental Steam Navigation Co.

Recently, the Carlyle Group participated with Televisa, Mexico's largest private broadcaster, to acquire Univision, the U.S.-based Spanish language broadcaster. According to an analysis published in London's Financial Times, the Televisa plan was to expand their current 11.4 percent interest in Univision to 25 percent, the maximum percentage U.S. law would permit a foreign company to own in a U.S.-based media company. To get around the restriction in U.S. law, Televisa planned to rely upon four private equity firms to participate along with Cascade Investment, Bill Gates' investment vehicle. The other participating funds were the Carlyle Group, the Blackstone Group, Bain Capital and Kohlberg Kravis Roberts & Company, all experienced acquisition private equity fund groups. Here is how the Financial Times described the proposed $12 billion transaction:

<snip>

Another interesting set of connections involves CSX, the international rail shipping and container company that was formerly headed by U.S. Secretary of Treasury John Snow.

...more...

Note: I apologize for the source, but I don't think any of the M$M would be carrying this information. :eyes:

[AnneD]

94. Morning Marketeers,

:donut: and lurkers. UIA, sometimes we have to dumpster dive for the good stuff. Since Carlyle tends to operate in the back alleys....you have to go there to get the 411. And speaking of dumpster diving.....

Yesterday turned out to be a Country day for me. Went out to get the Dixie Chick's new albumn and it wasn't at the store yet. After I unloaded boxes at the new apt, I went back to the old apt. I turned on the tv and the Country Music Awards were on. I was too tired to get up and change the channel (or find the remote), so I ended up watching it. Boy has C&W changed.

The acceptance speeches could have been penned by the same person. They all thanked God, their producers, the radio stations, fans and family. The music was nothing like 'country' and was more like a big rock production al la Elton John with out the change of clothes. And everyone was wrapped up in the flag (this has been known to cause anoxia). One line that gave me a chuckle was when Reba came out and said "I don't know why I was so nervous about hosting this awards show. I mean after all, if the Dixie Chicks can sing with their foot in their mouth, I can do this". Of course the laugh seemed too long and forced. I was laughing because I kept thinking that the Dixie Chick will get the last laugh because they have something that many of those folks don't have, and that's talent. And I thought that it was appropriate that they had a tribute to Buck Owens-a guy that told the Nashville crowd to FO. I thought Buck was so so until he did that. One day they will do a tribute to the Dixie Chicks too.

What can I say, I like the bad boys and girls of C&W (Hank Williams, Patsy Cline, Loretta Lynn, Johnny Cash, Ray Charles, k.d. lang, Willie Nelson, JJ Walker, Waylon Jennings, Garth Brooks,-I even like some of Toby Keith's work).

So, I sacrificed over an our of my time watching this so you could be informed yet not have to suffer through it.

Happy hunting and watch out for the bears.

[UpInArms]

26. Suzuki Motor to stop selling GM cars in Japan

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BE8D3A355%2DDE85%2D4057%2DB64A%2D59CB99B5959A%7D&symbol=

TOKYO (MarketWatch) -- Suzuki Motor Corp. (7269.TO) plans to stop selling General Motors Corp. (GM) cars in Japan by the end of this year, the Mainichi Shimbun reports.

The move follows GM's sale of some of its Suzuki shares in March. With capital ties becoming weaker, Suzuki plans to stop dealing in Chevrolet brand cars, which have not been selling well in Japan. The Chevrolet line vehicles are the only GM cars Suzuki's dealerships currently sell.

[UpInArms]

33. $130K fine per violation per Telecommunications Act: Wired Publishes Leake

Wired Publishes Leaked AT&T-NSA Documents

http://news.yahoo.com/s/nf/43489

Wired News has published documents that reportedly provide evidence that AT&T installed secret equipment enabling the National Security Agency to spy on the telco's customers.

The documents are linked to evidence held under court-ordered seal in a class-action lawsuit being brought against AT&T by the Electronic Frontier Foundation. The lawsuit, filed by the privacy watchdog on behalf of AT&T customers, claims that the telco illegally spied on its customers' e-mail and telephone conversations.

On May 17, U.S. District Judge Vaughn Walker ruled that the EFF could use certain leaked AT&T documents in its lawsuit against the telco. The leaked documents, which are not the same as those published by Wired, reportedly include information about AT&T giving its customers' records to the NSA.

<snip>

"They show that a secret facility is being maintained by AT&T with participation from NSA," he said. "But exactly what the NSA and AT&T are doing in this facility is not entirely clear."

...more...

Does anyone else smell those class-action lawsuits boiling in the background?

[Ragin_mad]

41. Unfortunately the lawsuits are meaningless

If the telco's lose the lawsuit, it will be appealed all the way up to the USSC where the thug control will come up with some off the wall ruling that the law does not apply to NSA requests.

[UpInArms]

44. but lawsuits will definitely impact the bottom line on those telecoms

because of the risk involved - the potential losses are enormous.

If their stock prices hit dirt level, perhaps a bit of justice will be had.

[Ragin_mad]

45. There are no potential losses for them

Just like the tobacco companies did, they will just raise their rates to cover their sorry asses and pass the losses on to the consumer.

[UpInArms]

50. that's always a possibility - but perhaps the bonuses for the crooked

officers won't be quite so large.

Btw, welcome to DU and the SMW, Ragin_mad!

:hi:

[stop the bleeding]

57. Welcome to DU Ragin_mad

these guys keep the information coming all day long, this thread is a great resource

[UpInArms]

35. Lay Alma Mater Rebuffs Endowment Request - Kenny Boy needs Legal Fund $$$$

http://news.yahoo.com/s/ap/20060522/ap_on_bi_ge/missouri_lay_endowment

COLUMBIA, Mo. - Seven years after donating $1.1 million in Enron stock to his alma mater and with little to show for the gift, company founder Kenneth Lay asked the University of Missouri to steer the unspent money to Hurricane Katrina relief.

The school rejected the request, according to records obtained Monday by The Associated Press. By February, a Lay attorney was asking the school to return the money so Lay could pay legal bills stemming from the fraud and conspiracy case against him. The school again turned him down.

<snip>

Lay donated a total of 16,500 shares of Enron stock in two installments, according to university records. The first batch of 10,000 shares were valued at $57.56 each in November 1998, with the remaining 6,500 shares worth approximately $80.46 each when donated in July 1999.

The university quickly cashed in those shares, avoiding the huge losses that plagued other Enron stockholders once the company collapsed.

...more...

[UpInArms]

38. OT: New Yahoo Messenger Worm Hijacks Internet Explorer

http://news.yahoo.com/s/nf/43477

There is a new worm making the rounds, targeting the popular Yahoo Messenger application with the purpose of hijacking PCs and installing malicious software on them.

Experts at FaceTime Security Labs discovered the worm two weeks ago using a "honeypot" trap set up to monitor the activity of viruses, Trojans, and other malicious software.

The worm, dubbed Yh032.explr, marks the first time that researchers have encountered malicious software that installs its own Web browser on a PC without the user's permission.

"This is one of oddest and more insidious pieces of malware we have encountered in years," said Tyler Wells, senior director of research at FaceTime. "This is the first instance of a complete Web browser hijack without the user's awareness. Rogue browsers seem to be the hot new thing among hackers."

<snip>

Security experts have said that the worm is particularly dangerous because the browser it installs uses the same icon as authentic versions of Internet Explorer. When users click on the faux icon, they are taken to a site that installs spyware on their computers. The phony browser has no uninstaller.

...more...

Gack! I'm really glad I don't use IE or instant messenger.

[Ghost Dog]

39. Rio Tinto withdraws from Iranian gold mine project

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060524:MTFH26824_2006-05-24_11-09-14_OLI431865&symbol=RIO.AX&rpc=44
Wed May 24, 2006 7:09 AM ET

TEHRAN, May 24 (Reuters) - Anglo-Australian miner Rio Tinto (RIO.AX: Quote, Profile, Research)(RIO.L: Quote, Profile, Research) said on Wednesday it was pulling out of the Sari Gunay gold mining project in western Iran after deciding it was not commercially viable.

Before conducting feasibility studies, Rio Tinto's exploration manager in Iran last year estimated the mine in the western province of Kurdistan could produce 4 million tonnes of ore per year over 12 to 18 years.

"I can confirm that Rio Tinto will be withdrawing from the Sari Gunay gold mine in Kurdistan," said a spokesman for Rio Tinto in London. "After feasibility studies we have concluded that the reserves at the mine are too small to justify continuing with the project," he added.

New foreign investment projects in Iran have come to a virtual standstill due to a mixture of political and commercial concerns. A Renault (RENA.PA: Quote, Profile, Research) carbuilding venture is a conspicuous exception to the trend.

/bit more...

[Ghost Dog]

40. UPDATE 3-Gold trades in tight band, under downward pressure

http://investing.reuters.co.uk/investing/financeArticle.aspx?type=goldMktRpt&storyID=2006-05-24T101042Z_01_L24446884_RTRIDST_0_MARKETS-PRECIOUS-UPDATE-3.XML
Wed May 24, 2006 11:10 AM BST

LONDON, May 24 (Reuters) - Gold traded lower in a narrow band on Wednesday, tracking movements in the dollar and keeping an eye on oil prices, but the long-term bull sentiment remained intact, analysts said.

Against an average change of $25 an ounce a day since gold hit a 26-year high of $730 on May 12, prices hovered in a range of $8.50 in a relatively quiet market. Gold weakened overnight with dollar strength but recovered after a fall in the currency.

"Yesterday's performance was encouraging but people are still quite nervous after the sharp correction last week," said Yingxi Yu, precious metals analyst at Barclays Capital.

Gold might face some downward pressure in the coming trading sessions, but overall market sentiment was positive, she said.

<snip>

"Our enthusiasm towards gold remains undimmed ... We still expect a successful assault on the $800 marker perhaps in early 2007, before the cycle turns over," ABN AMRO said in a report.

/more...

So what will those shadowy NY, overlapping London, market players decide to do with Gold today..? (Edit: replacing chart with link to chart page).

http://www.kitco.com/charts/livegold.html

[Ghost Dog]

48. ... Looks like NY spot aims to test $650 or below again ...

...Rather like as commented by Gary Dorsch (sirchartsalot) re. 54anickel's post yesterday: http://www.321gold.com/editorials/sirchartsalot/dorsch052306.html

[UpInArms]

75. June Gold @ $653.50 oz - July Silver @ $12.63 oz - July Copper @ $3.625 lb

9:36 AM ET 5/24/06 JUNE GOLD DOWN $20.20, OR 3%, AT $653.50/OZ IN MORNING TRADE

9:36 AM ET 5/24/06 JULY SILVER FALLS 54 CENTS, OR 4.1%, TO $12.63/OZ

9:36 AM ET 5/24/06 JULY COPPER DOWN 26.05 CENTS, OR 6.7%, AT $3.625/LB

[UpInArms]

104. June Gold @ $643 oz - July Silver @ $12.57 oz - July Copper @ $3.685 lb

11:13 AM ET 5/24/06 JUNE GOLD TAPS LOW OF $642.50/OZ, ITS LOWEST SINCE APRIL 28

11:13 AM ET 5/24/06 JUNE GOLD LAST DOWN $30.20, OR 4.6%, AT $643/OZ IN NY

11:13 AM ET 5/24/06 JULY SILVER FALLS 60 CENTS, OR 4.6%, TO $12.57/OZ

11:13 AM ET 5/24/06 JULY COPPER FALLS TO $3.685/LB, DOWN 20.05 CENTS, OR 5.2%

[UpInArms]

42. Washington Mutual lays off 1,400 workers in Wash., Fla. - jobs to Manila

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B5C741A8E%2D3449%2D4677%2D8BF9%2D4738FEAAD3E4%7D&symbol=

SEATTLE (AP) -- Washington Mutual Inc. (WM), the nation's largest savings and loan, has notified 1,400 workers in Washington and Florida that they will lose their jobs as part of the company's cost-saving strategy.

About 850 workers at the company's call center in the Seattle suburb of Canyon Park were told Tuesday they will be laid off by the end of July, spokeswoman Darcy Donahoe-Wilmot said. An additional 550 workers at a similar center in Jacksonville, Fla., also were told they will be laid off - some by July 21 and others by Sept. 29.

The work will shift to facilities in Albion, N.Y.; Milwaukee; and Manila in the Philippines, Donahoe-Wilmot said. It hasn't been determined how many jobs will go to each location, but "it's not the majority" going overseas, she said.

Donahoe-Wilmot said the layoffs were "part of our strategy announced last year to move back-office jobs to lower-cost locations."

In November, Washington Mutual said it planned to increase the number of offshore jobs from about 1,600 to about 6,000 by the end of 2007, she said.

...more...

[UpInArms]

43. Citigroup to pay brokers $98 million for overtime claims

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B663F231E%2D60C2%2D4A6A%2DAE5F%2D4870FD23ADAF%7D&symbol=

NEW YORK (MarketWatch) -- Citigroup's (C) Smith Barney brokerage unit has agreed to pay $98 million to settle claims on behalf of thousands of current and former brokers that they are owed overtime pay and other reimbursements.

The proposed settlement is the latest and largest by securities firms that claim brokers are exempt from state and federal overtime laws because they are salaried, administrative employees. Brokers' draw on commissions, a monthly loan most receive, qualify as a salary, they argued.

"We are pleased to have this matter resolved," a Citigroup spokesman said.

The securities industry swallowed hard in making the argument that brokers are salaried employees because it likes to portray them as trusted financial advisors, not mere administrators, said Mark Thierman, a lawyer in Reno, Nevada. He is one of more than a dozen class-action labor lawyers who have brought the suits on behalf of brokers, primarily in California.

...more...

[UpInArms]

49. S.E.C. Says Broker Violated Patriot Act

http://www.nytimes.com/2006/05/23/business/23broker.html?ex=1149048000&en=c520554cd4b32c64&ei=5099&partner=TOPIXNEWS

(free registration or try www.bugmenot.com)

WASHINGTON, May 22 — The Securities and Exchange Commission on Monday brought its first action under the USA Patriot Act, punishing a brokerage firm in Los Angeles, Crowell, Weedon & Company.

Without issuing a fine, the S.E.C said it issued a cease-and-desist order against Crowell, Weedon "for failing properly to document its customer identification program."

Crowell, Weedon settled without admitting or denying the S.E.C.'s claims that it failed to document its customer identification procedures for all new accounts, as required by the Patriot Act. The law was enacted in 2001 to crack down on money laundering.

According to the S.E.C., Crowell, Weedon opened about 2,900 accounts from 2003 to 2004 using customer identification procedures different from those specified in its policies. The firm's policy called for it to check the identity of customers in various ways, including a search of public databases.

...more...

[JNelson6563]

51. Durable goods down 4.8%!!!

Holy cow!

[UpInArms]

53. the market will take that as a positive sign, Julie!

Inflationary pressures will be removed - the "red-hot" economy is cooling off all on its very own - the Fed won't have to raise interest rates and all will be well.

:eyes:

[JNelson6563]

58. You betcha!

Now if there could just be some massive job cuts it would be a perfect day!

:sarcasm:

[UpInArms]

63. Verizon set to trim its local phone unit - "significant" job cuts coming

http://www.boston.com/business/technology/articles/2006/05/24/verizon_set_to_trim_its_local_phone_unit/

NEW YORK -- Verizon Communications Inc. plans ``significant" job cuts in its shrinking local phone business to put more money into faster-growing areas, chief financial officer Doreen Toben said.

The number two US phone service firm also doesn't plan to buy Vodafone Group PLC's 45 percent stake in Verizon Wireless anytime soon, Toben said yesterday at a conference in Washington.

Chief executive Ivan Seidenberg has said he wants full ownership of wireless, Verizon's fastest-growing business, and that it's up to Vodafone to start talks. New York-based Verizon will make job cuts in the local unit as it focuses on more profitable businesses, Toben said, without being specific.

``Significant is obviously going to be in the thousands," said Daniela Spassova, an analyst at Des Moines-based Principal Global Investors.

...more...

[Tace]

54. MOGAMBO GURU: The Bloodthirsty Horsemen Of The Apocalypse

Richard Daughty, the angriest guy in economics -- World News Trust

I hope that you receive this copy of the Mogambo guru newsletter, as I am in Mogambo Security Lock-Down Mode (MSLDM) at Security Level Three here at the bunker, and I am busily reviewing Mogambo Procedure Manual (MPM), trying to fix it in my mind, fix it in my mind, fix it in my mind that it is "Ask QUESTIONS first, THEN shoot," and not the other way around. Yet.

The reason for the heightened level of frightened paranoia probably has something to do with Total Fed Credit increasing by only $1million last week, which means that the banks ain't creating more credit with which borrowers make more money.


And it certainly has a lot to do with how Alan Greenspan, former chairman of the Federal Reserve for 18 years, announced (trumpets blaring "taa-daaa!") that the housing market is heading to the bust stage of the "boom and bust" cycle! A bust is coming! A bust! This is the very same Federal Reserve chairman who has repeatedly, and loudly, said that there is no bubble in housing, even as he was creating the money that paid for the housing bubble! Now, out of nowhere, he has now done a complete turnaround, and (again, to make sure you get the point) out of nowhere he announces that the bubble, that never existed, has burst! An invisible bubble has burst!

I jump to my feet and announce "Your honor, I would like to have this entered into evidence in my case that Alan Greenspan is the worst central banker in US history, and is also probably the worst government financier/lackey in ALL of history!"

more (Warning: Dem-bashing follows)

http://worldnewstrust.org/modules/AMS/article.php?storyid=3587

(Edit: fixing typo)

[ramapo]

84. Anti-Nobel Prize for Sheer Economic Stupidity

This is another great Mogamboism...gave me a big laugh. This award given for the idea that home equity is a free lunch that can be eaten over and over again with no deleterious affect.

[Tace]

99. Indeed. I Almost Used If For The Headline

This home equity thing is gunna' be killer for many homeowners. It's going to be like getting a margin call on a brokerage account when you're maxed out. The whole house of cards collapses.

[54anickel]

87. It wouldn't be Mogambo without the Dem-bashing! n/t

[Tace]

100. He's An Equal Opportunity Basher...

except for Liberatians, Austrian economists and the NRA, it seems.

[54anickel]

105. IF you dig back into the DU archives far enough, I think you'd find

one where he bashed them too. I remember posting one where he got on the NRA for not protecting his right to bear a rocket launcher or some other HUGE weapon.
I used to give the Dem-bashing warning when I first started posting him here - but for a while it was a weekly warning. I figured the folks here at the SMW thread had gotten accustomed to it enough to where no warning was needed anymore - it was pretty much a given.

[JNelson6563]

112. It's tolerable as he redeems himself

with wit and lots of good economic points. Of course throw in the fact that Dems have done stupid things too and, well, like I said, it's tolerable. ;-)

I always get a kick out of Mugambo.

Julie

[54anickel]

116. You mean the Dems aren't perfect either? Damn, there goes my

bubble. ;-)

Good to see you Julie. How's the revolution going in your neck of the woods these days?

[JNelson6563]

138. Great! thanks for asking!

All our hard work is beginning to pay off with a full slate of excellent candidates. As recently as two years ago we were lucky to have any local/state candidates here.

Now comes the big test, winning these partisan races in a red zone. Our odds are looking good but it will take tireless work. :toast:

Julie--Ready to rumble with the Rethugs

[ramapo]

109. Dems have earned their share too

Dems have gone along with all the tax cut schemes. And they did earn a reputation as the tax party although I say that was a sign of fiscal responsibility. If people want services, projects, boondoggles, wars, grants, and so on, then the money has to come from somewhere.

People hate taxes but love what the government provides. We have corporate welfare and plenty of middle-class and upper-class welfare. Only the lower-class welfare has the stigma.

[54anickel]

59. Wow! Almost 60 posts and I'm just starting my first cup of coffee!!

I've got to speed read to catch up for the morning. :donut:

[UpInArms]

60. Treasuries extend gains after weak US April durables

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-24T124009Z_01_NYG000229_RTRIDST_0_MARKETS-BONDS-URGENT.XML

NEW YORK, May 24 (Reuters) - U.S. Treasury debt prices extended gains on Wednesday on a surprisingly weak April durable goods report, suggesting softer economic growth than expected.

The benchmark 10-year Treasury note's yield dipped below 4.99 percent to a one-month low in the aftermath of the report.

U.S. April durable goods orders dropped 4.8 percent, well below economists' median forecast for a fall of 0.5 percent. Excluding transportation, orders fell 1.1 percent, versus a forecast rise of 0.5 percent.

...more...

[UpInArms]

61. Rate futures cut June Fed hike chance on durables

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-24T123801Z_01_CHB000180_RTRIDST_0_MARKETS-FEDFUNDS-DURABLES-URGENT.XML

CHICAGO, May 24 (Reuters) - U.S. short-term rate futures rose on Wednesday suggesting less chance of a June rate hike by the Federal Reserve after April durable goods orders came in weaker than Wall Street expected.

Chances that Fed will raise interest rates again at its June meeting <FFN6> fell as low as 46 percent after closing at 60 percent on Tuesday.

U.S. durable goods orders for April were reported to have fallen by 4.8 percent against forecasts for a 0.5-percent decline. Excluding transportation, orders fell 1.1 percent versus forecasts of a 0.5-percent increase.

[UpInArms]

65. Fed funds futures sees chance of pause in rate hikes

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BC79188D1%2D7073%2D4F40%2DADC0%2D8C3D1AB7AA14%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- The fed funds futures markets suggested that it was more likely that the Federal Reserve would pause in its current cycle of interest rate hikes following weaker-than-expected durable goods data for April. The July contract was pricing in just a 48% chance that the Fed would raise its fed funds target to 5.25% after its policy setting meeting on June 29 and June 30, down from a 60% chance late Tuesday. The futures are now pricing in a 72% chance that fed funds would be at 5.25% after the Fed's next two meetings, vs. an 88% chance on Tuesday. Orders for new U.S.-made durable goods decreased 4.8% in April, the Commerce Department said, due to weaker demand for airplanes. Economists surveyed by MarketWatch were forecasting orders to fall 0.6%, on average.

The only thing holding up the dollar at this point is the hope that rates will rise - if the Fed "pauses", the dollar will definitely crash.

Let's see what the verbal interventionists say in the next few days. :eyes:

[UpInArms]

103. Chance of rate hike back above 50%: fed funds futures

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B98E9752B%2D84D7%2D445A%2DA672%2DBF20D2B8FC10%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- The fed funds futures market was back to suggesting another interest rate hike was more likely than not, as stronger-than-expected new home sales data cancelled out weak durable goods data. The July contract was now pricing in a 56% chance that the Federal Reserve will raise its target for overnight interest rates by 0.25 percentage points to 5.25% after the next policy setting meeting on June 30. The U.S. Commerce Department said sales of new homes rose 4.9% in April to 1.20 million units, vs. expectations of a decline to 1.15 million units. Prior to the new homes sales data, the odds of a rate hike fell to as low as 44% after the Commerce Department said orders for new durable goods decreased 4.8% in April, vs. expectations of a 0.6% decline. Late Tuesday, fed funds futures were pricing in a 60% chance of a rate hike.

This is such a schizophrenic atmosphere! :crazy:

[UpInArms]

78. "Chopper" running: Fed adds reserves through overnight system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-24T133241Z_01_N24342621_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, May 24 (Reuters) - The Federal Reserve said on Wednesday that it was adding temporary reserves to the banking system through overnight system repurchase agreements.

Fed funds were trading at 5 percent, the Fed's target for the benchmark overnight lending rate, at the time of the operations.

For further details on the operation, see http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[UpInArms]

98. Treasury gains fade on large rise in home sales

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B913B139A%2DC357%2D4EA8%2D9EDE%2D225A5B32DD01%7D&symbol=

NEW YORK (MarketWatch) -- Treasury price gains faded Wednesday morning, allowing yields to improve a bit, after the market was caught off-guard by news that new home sales surged last month, confounding expectations for a decline.

The data appeared to contradict a widely-held view that the boisterous housing market is slowing and added to fears that the Federal Reserve will be forced to keep lifting rates to cool off the economy.

The 10-year note last was down 1/32 at 100-24/32, with a yield ($TNX : 50.42, -0.24, -0.5% ) of 5.028%.

The yield level remained well below the 5.005% reading seen at Tuesday's close, but was much stronger than the weak levels seen earlier in the morning after news of an unexpectedly large drop in durable goods figures.

After the durable goods report, the yield fell below the closely-watch 5% level during a short-lived price rally. Prices and yields move in opposite directions.

...more...

[UpInArms]

114. FedHead Problem Solving 101: LET'S FIX THOSE REPORTS!

Ummm... Yeah... I'll bet you'll fix those reports!

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B8EFD24CB%2D9D25%2D4116%2DBECE%2DD5B9169FA26E%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - A top Federal Reserve official urged Wednesday that it is time to bring U.S. economic statistics into the new century."Innovations in economic statistics must keep pace with innovations in the economy," said new Fed governor Randall Kroszner in a speech to a seminar for journalists on the economic statistics sponsored by the National Association for Business Economics. For example, the Census Bureau's list of so-called product codes is "woefully out of date," Kroszner said. Congress should also pass legislation enabling the government statistical agencies to access business tax records to get a better sense of the dynamic process of new business formation, he said.

[UpInArms]

124. 2-yr Treasury Auction Results

1:04 PM ET 5/24/06 2-YR TREASURY AUCTION PRODUCES 2.58 BID-TO-COVER RATIO

1:04 PM ET 5/24/06 2-YR TREASURY AUCTION PRODUCES MEDIAN YIELD 4.919%

1:03 PM ET 5/24/06 2-YR TREASURY AUCTION PRODUCES HIGH YIELD 4.933%

1:03 PM ET 5/24/06 2-YR TREASURY AUCTION PRODUCES HIGH YIELD 4.933%

[UpInArms]

71. pre-opening blather

09:15 am : S&P futures vs fair value: -2.0. Nasdaq futures vs fair value: -4.3.

09:00 am : S&P futures vs fair value: -1.5. Nasdaq futures vs fair value: -3.5. Still shaping up for stocks to continue their downward trend as investors are finding little in the way of news to counter another global sell-off fueled by ongoing inflation worries and renewed concerns of a potential bird flu pandemic. One stock that is offsetting weakness among blue chips, however, is General Motors (GM), which is up nearly 5% in pre-market trading after Merrill Lynch upgraded it to Buy from Neutral and set a price target of $37.

08:32 am : S&P futures vs fair value: -2.7. Nasdaq futures vs fair value: -5.2. Futures trade holds relatively steady following economic data, still indicating a lower open for the indices. April durable goods orders fell a much larger than expected 4.8% (consensus -0.5%), the first decline in three months, while orders excluding transportation, which provide a clearer read on underlying business capital investment, fell 1.1%. The 10-yr note, which was up 2 ticks ahead of the report, has strengthened and is now up 7 ticks to yield 4.98%.

08:00 am : S&P futures vs fair value: -4.4. Nasdaq futures vs fair value: -9.0. Futures versus fair value suggest that follow-through selling in the wake of yesterday's late-day reversal will lead to another disappointing open for the cash market. Contributing to the negative bias has been more broad-based weakness in overseas markets, as fears that inflation and interest rates will keep rising have knocked all three major European indices down another 1.7%. The re-emergence of worries about a potential bird flu outbreak is also underpinning a sense of nervousness.

[UpInArms]

76. 9:43 EST mexed missages

Dow 11,088.27 -10.08 (-0.09%)
Nasdaq 2,162.36 +3.60 (+0.17%)
S&P 500 1,254.39 -2.18 (-0.17%)
10-Yr Bond 5.018 -0.48 (-0.95%)

NYSE Volume 177,033,000
Nasdaq Volume 181,788,000

09:40 am : As futures indications presaged, yesterday's late-day reversal has carried over into this morning to extend the market's recent slide. The re-emergence of worries about a potential bird flu outbreak coupled with ongoing fears that inflation and interest rates will keep rising are weighing heavy on overseas markets and largely responsible for early nervousness in the U.S. as well. This morning's weaker than expected durable goods data is also doing little to assuage concerns the Fed may go too far with its tightening efforts. Given that the slowdown in housing will be perceived to have implications for Fed policy and the pace of economic growth, however, new home sales data hitting the wires at 10:00 ET may have more of an influence on sentiment and set a more definitive tone to trading.DJ30 -28.49 NASDAQ -2.00 SP500 -4.06 NASDAQ Vol 124 mln NYSE Vol 88 mln

[UpInArms]

79. 9:48 EST All is Well in the Land of LaLa!

Dow 11,119.88 +21.53 (+0.19%)
Nasdaq 2,170.21 +11.45 (+0.53%)
S&P 500 1,258.05 +1.48 (+0.12%)
10-Yr Bond 5.020 -0.46 (-0.91%)

NYSE Volume 235,744,000
Nasdaq Volume 234,788,000

[UpInArms]

83. 10:05 EST Doing the Happy Dance!

Dow 11,141.09 +42.74 (+0.39%)
Nasdaq 2,176.70 +17.93 (+0.83%)
S&P 500 1,261.50 +4.93 (+0.39%)
10-Yr Bond 5.014 -0.52 (-1.03%)

NYSE Volume 391,412,000
Nasdaq Volume 380,176,000

10:00 am : Major averages bounce off their opening lows amid reports that the World Health Organization has found "no evidence" that bird flu is more contagious in humans. The indices are now posting modest gains as the bulk of industry leadership turns in favor of the bulls. Providing the biggest source of support is Technology (+1.0%), led by a 1.6% rebound in Semiconductor and a recovery in Software. Financial is also providing some notable leadership, as Brokerage stocks regain more upside momentum, while Health Care is getting a lift from Medtronic (MDT 49.60 +1.65), which fell to a new 52-week low yesterday but is up 3.4% today after raising its FY07 and FY08 EPS outlook. DJ30 +30.18 NASDAQ +13.36 SP500 +2.69 NASDAQ Dec/Adv/Vol 1531/949/310 mln NYSE Dec/Adv/Vol 1934/740/234 mln

[Ghost Dog]

89. ...Due to turn down 'bout now I reckon. n/t

(ed. damn! just time for a late lunch here and Dixie Chicks just finished playin' (I Hope)).

[Roland99]

102. Do those Dec/Adv numbers realize what the indices are doing?

Or am I seeing things backward?

[54anickel]

110. I think the indices heard you...11:28

Dow 11,106.52 +8.17 (+0.07%)
Nasdaq 2,161.86 +3.10 (+0.14%)
S&P 500 1,256.54 -0.03 (-0.00%)
10-yr Bond 50.36 -0.30 (-0.59%)
30-yr Bond 51.28 -0.26 (-0.50%)
NYSE Volume 961,877,000
Nasdaq Volume 844,912,000


11:00 am : Market holding relatively steady at improved levels, so far showing little reaction to oil prices paring their losses following the Energy Dept.'s weekly inventories report. As expected, gas stockpiles rose for a fourth straight week, which bodes well for consumers since this holiday weekend officially kicks off the summer driving season. However, a larger than expected draw down in crude supplies has halved earlier losses in the July contract, which is now down just 0.7% and back above $71 a barrel. DJ30 +53.95 NASDAQ +14.52 SP500 +5.71 NASDAQ Dec/Adv/Vol 1169/1589/696 mln NYSE Dec/Adv/Vol 1350/1611/570 mln

10:30 am : Market continues to steam ahead, recently getting a lift following an unexpected 4.9% rise in April new home sales to 1.198 mln -- the highest level this year. The April level is above market expectations as the inventory of homes for sale fell to a three-month low and March year/year price declines were revised to gains as April median prices are 0.9% above the year ago level. While it remains to been seen how policy makers will view the surprisingly strong data, as evidenced by a pullback in Treasuries, the report has provided some relief that a robust housing market, which has bolstered consumer spending for years via mortgage refinancing and home equity withdrawals, isn't about to roll over. The yield on the 10-yr note (-04/32) is back at 5.03%.DJ30 +55.07 NASDAQ +16.54 SP500 +5.12 NASDAQ Dec/Adv/Vol 1221/1452/538 mln NYSE Dec/Adv/Vol 1363/1545/418 mln


Advances & Declines
NYSE Nasdaq
Advances 1405 (44%) 1402 (47%)
Declines 1627 (51%) 1405 (47%)
Unchanged 142 (4%) 136 (4%)

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

Up Vol* 397 (47%) 521 (68%)
Down Vol* 427 (51%) 214 (27%)
Unch. Vol* 12 (1%) 31 (4%)

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

New Hi's 13 29
New Lo's 116 86

[Roland99]

120. Perhaps...and it's a bit more evenly spread

Maybe another day of mexed missages?

[54anickel]

97. Backfire On Corrupted Price Index (Willie)

http://www.kitco.com/ind/Willie/may242006.html

We are fast entering the other side to statistical distortion, as an unusual combination has revealed itself. If it were not so destructive, it would be hilarious. The pendulum has begun to swing on the housing sector component to the Corrupted Price Index (CPI). For a few years housing rents had been tame (if not dropping), as the housing boom inflated in full force. Buy the property, bid its price up, while the rental properties go begging with minimal attention. Now rising rents are the new phenomenon, as the housing boom deflates. House properties are fast becoming unaffordable. People flock to rental homes and apartments, thereby pushing up rents requested and paid. Heck, who are we kidding? There was no housing boom. It was a dangerous reckless bubble, to salvage Greenspan’s reputation, offer him yet another bubble to inflate so as to rescue the previous busted bubble. What a tragic end written in stone! Now Mr Magoo is off on speaking engagements, warning of the perils which lie ahead, leaving Ben Bernanke to assume the position of Pied Piper. The harsh spotlight might expose Ben more as a mad professor who cannot keep the wagon on the road, the wagon which had begun to careen off the road when Greenspan jumped out from behind the wheel.

The down side of the corrupted CPI game has begun to show itself in the latest month. Not only have housing prices softened, but the balance of rent versus housing price now damages the CPI as reported. A jump in the rental component was enough to lift the April CPI by 0.6%, translated into 7.2% annualized. The shelter cost accounted for half of the increase in the core CPI increase. The financial markets remain transfixed on the core, in defiance of the harsh reality for the communities and corporations which must eat food and consume energy. The financial sector does little work. It just prints money, spins stories, urges more lubrication of the machinery, and conducts arbitrage (of both people and market differentials). One might suspect global warming comes from the hot air emanating from both politicians in Washington DC and financial monkeys in Wall Street. Over the first four months of 2006, the CPI is running at a 5.1% annual rate, versus 3.4% for all of 2005. It is hard to justify a 5.0% or 5.2% long-term Treasury yield in the face of such a CPI. This statistic is no longer respected by even the mainstream, no longer a reflection of the Untied States Economy.

PREFACE ON CPI

It might be helpful to review main messages from some past articles on the topic of the CPI, its blatant distortion (pervasive in almost every aspect), export of inflation (becomes their problem), and the risk to policy from doctored statistics (bad data, bad decisions). The entire saga of deception and setting up a biased system has begun to come full circle. The irony and pathetic twisted humor is inescapable to an informed observer. Have you ever seen an evil bully set a trap, then break his nose as he falls unwittingly into that same trap himself down the road at a later date? Have you ever seen a social deviant place brown bags of dog manure on the path of his rival buddies, only to step onto them himself, dragging along a stench of his own making? This is such the story of the USGovt cockeyed shameless embarrassing display of garbage statistics, led by the total joke known as the CPI. Let it be known as the Corrupted Price Index, its true description.

In “Inflation Pushes Down the CPI” (Feb 1, 2005) arguments were laid out to demonstrate how in American style, our brand of credit largesse and reliance upon imports has actually pushed down the CPI. One would figure that the explosion of new credit and abandonment of domestic industry would cause a direct adverse effect on the price inflation scheme. It did not in the past, but it is showing signs of doing exactly that right now. The cited article explained how the housing bubble smothered the rental market, and kept rent costs down. How car sales encouraged by 0% and 1% deals kept used car prices down, even with underwater loans assumed and buried in the new car loan. How the flood of Asian imported products, combined with foreign central bank collusion (called intervention), conspired to keep down consumer prices. How the rising cost structure, against a backdrop of global competition, made price increases a desperate challenge to businesses, resulting in inventory liquidations from real stress. However, the pendulum swings with its sharp edge back toward the tied down victim, much like in the horror films we often enjoy. Monetary inflation has raged out of control for so long that the public and investment community believe it is normal. A tame CPI had signaled a “green light” to our hapless US Federal Reserve to continue the astronomical credit growth. No more, no mas, non jamais.

more...

[UpInArms]

101. Willie Nails It Again - the snake eats itself

In “Inflation Pushes Down the CPI” (Feb 1, 2005) arguments were laid out to demonstrate how in American style, our brand of credit largesse and reliance upon imports has actually pushed down the CPI. One would figure that the explosion of new credit and abandonment of domestic industry would cause a direct adverse effect on the price inflation scheme. It did not in the past, but it is showing signs of doing exactly that right now. The cited article explained how the housing bubble smothered the rental market, and kept rent costs down. How car sales encouraged by 0% and 1% deals kept used car prices down, even with underwater loans assumed and buried in the new car loan. How the flood of Asian imported products, combined with foreign central bank collusion (called intervention), conspired to keep down consumer prices. How the rising cost structure, against a backdrop of global competition, made price increases a desperate challenge to businesses, resulting in inventory liquidations from real stress. However, the pendulum swings with its sharp edge back toward the tied down victim, much like in the horror films we often enjoy. Monetary inflation has raged out of control for so long that the public and investment community believe it is normal. A tame CPI had signaled a “green light” to our hapless US Federal Reserve to continue the astronomical credit growth. No more, no mas, non jamais.

[Roland99]

107. Piper's been playing his tune for a while and will soon have his bond

(to mix a few historical characters) ;)

[54anickel]

118. Moneyization #24

http://www.kitco.com/ind/Schmidt/may242006.html

Motivations for today’s writings are two events, one large and one small. The first of those was the report on consumer prices for the month of April 2006 in the United States that was released on Wednesday, 17 May. Subsequent to that release, paper equities took a horrible slide. Gold and Silver followed those markets lower. These market reactions seemed to surprise almost all.

Second, a letter to the editor in a popular business publication caught my attention. The writer had clearly ended the week poorer due to owning paper equities. His lament was apparent in his question. He wanted to know why stocks went down if equities were a hedge against inflation. This inquiry is not rare, and shows a lack of understanding of the fundamental theory of paper equity valuation. This statement is not meant as a criticism of the writer but rather the general state of understanding of how financial equities are valued.

That inflation, wherever one lives, is generally higher than reported by government agencies is generally accepted. The statistical garbage on inflation put out, for example, by the U.S. bureaucrats is perhaps worthy of some special award. Oh well, we are all stuck with our individual governments. However, we don’t have to confine our lives to either their statistics or the fiat money produced by their central banks.

Since most of us consume both petroleum and food, the headline number on the U.S. CPI is most relevant. The first graph portrays the year-to-year change in the total U.S. consumer price index over the past ten years. That the rate of U.S. inflation has broken out of the ten-year trading range is fairly obvious. More important, little evidence exists to suggest any moderation of a material nature in this measure of inflation.

As we know, the policy makers in the U.S. are addicted to the statistical nonsense of core inflation. As they probably travel to work in government furnished limousines and eat in government-subsidized cafeterias, that is probably a reasonable view for them to take. Indications that the core rate of inflation in the U.S. is likely to move up can be found. For example, consider the second graph.

more...

[UpInArms]

119. that article also goes on to talk about the dollar purchasing power

The third graph shows the purchasing power of a dollar based on the CPI less food and energy. As is readily apparent from the graph, a U.S. dollar of today buys only about 80% of what it did ten years ago. 20% of its purchasing power has been destroyed. Federal Reserve policy, if one were to accept the CPI less food and energy as meaningful, has been effective only if one believes that reducing the purchasing power of your dollars by about 20% is commendable. Those holding U.S. dollars should realize that the Federal Reserve has, one, not maintained the purchasing power of the dollar, and, two, has no intention of doing so in the future.

No wonder I feel stretched. :idea:

[Ghost Dog]

126. Straight line, what's more.

:crazy:

[UpInArms]

106. Vonage IPO falls into the abyss (14% below IPO's pricing level)

BULLETIN>> SHARES OF VONAGE FALL 14% BELOW IPO'S PRICING LEVEL

[carolinalady]

111. So much for the orange ties.....LOL.

Why are we tanking again? I am watching Israeli PM addressing joint session of Congress and currently out of the loop.

[UpInArms]

108. 11:27 EST air leaking out of jalopy tires

Dow 11,115.88 +17.53 (+0.16%)
Nasdaq 2,164.85 +6.09 (+0.28%)
S&P 500 1,258.12 +1.55 (+0.12%)
10-Yr Bond 5.034 -0.32 (-0.63%)

NYSE Volume 950,534,000
Nasdaq Volume 833,879,000

11:00 am : Market holding relatively steady at improved levels, so far showing little reaction to oil prices paring their losses following the Energy Dept.'s weekly inventories report. As expected, gas stockpiles rose for a fourth straight week, which bodes well for consumers since this holiday weekend officially kicks off the summer driving season. However, a larger than expected draw down in crude supplies has halved earlier losses in the July contract, which is now down just 0.7% and back above $71 a barrel. DJ30 +53.95 NASDAQ +14.52 SP500 +5.71 NASDAQ Dec/Adv/Vol 1169/1589/696 mln NYSE Dec/Adv/Vol 1350/1611/570 mln

10:30 am : Market continues to steam ahead, recently getting a lift following an unexpected 4.9% rise in April new home sales to 1.198 mln -- the highest level this year. The April level is above market expectations as the inventory of homes for sale fell to a three-month low and March year/year price declines were revised to gains as April median prices are 0.9% above the year ago level. While it remains to been seen how policy makers will view the surprisingly strong data, as evidenced by a pullback in Treasuries, the report has provided some relief that a robust housing market, which has bolstered consumer spending for years via mortgage refinancing and home equity withdrawals, isn't about to roll over. The yield on the 10-yr note (-04/32) is back at 5.03%.DJ30 +55.07 NASDAQ +16.54 SP500 +5.12 NASDAQ Dec/Adv/Vol 1221/1452/538 mln NYSE Dec/Adv/Vol 1363/1545/418 mln

[JNelson6563]

113. New lease on life @ 11:47

Dow 11,124.13 +25.78 (0.23%)
Nasdaq 2,162.24 +3.48 (0.16%)
S&P 500 1,256.98 +0.41 (0.03%)
10-Yr Bond 5.034% -0.32

Soon we can all role around naked in piles of money, after riding on our free ponies. :party:

[AnneD]

144. Dibs on

Barbaro or Smarty Jones-you can keep the cash, it's pretty worthless.

[UpInArms]

115. Judge OKs $6.6 BILLION Enron settlement of three banks: AP

Yeppers! That's BILLION with a "B"!

So where will that money come from?

Set-asides? - Stocks should get a hit
Insurance? - Then the Ins. Cos. get a whackin'
CEO's compensation? - Nah - those crooks never give back a penny

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B1FAAA059%2D3560%2D4EC0%2D9DA1%2DD6B2C6981A62%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- A federal judge has given final approval for three banks to pay $6.6 billion to settle civil claims that they helped Enron Corp. manipulate earnings, according to a published report Wednesday. U.S. District Judge Melinda Harmon approved the deals with the Canadian Imperial Bank of Commerce (BCM :
71.26, -0.21, -0.3% ) , J.P. Morgan Chase & Co. (JPM : 41.94, -0.23, -0.5% ) and Citigroup Inc. (C : 48.51, -0.02, 0.0% ) , the Associated Press reported.

[UpInArms]

117. 12:18 EST numbers and blather

Dow 11,125.09 +26.74 (+0.24%)
Nasdaq 2,166.82 +8.06 (+0.37%)
S&P 500 1,258.21 +1.64 (+0.13%)
10-Yr Bond 5.034 -0.32 (-0.63%)

NYSE Volume 1,271,204,000
Nasdaq Volume 1,046,720,000

12:00 pm : Major averages are retracing earlier highs midday but investors still struggle to find compelling catalysts to sustain the market's mediocre attempts at another recovery.

With little in the way of corporate news, investors have some economic data to digest after a two-day hiatus. An unexpected 4.9% rise in April new home sales to 1.198 mln -- the highest level this year, has offered some relief that the robust housing market partly responsible for bolstering consumer spending for years isn't about to roll over. However, even a larger than expected 4.8% drop in April durable goods new orders in the current market mood could be just another reason to worry about the economic outlook.

Also, early nervousness spurred by the re-emergence of a potential bird flu outbreak, which incited more broad-based weakness in overseas markets, has since been lessened after the World Health Organization found "no evidence" that bird flu is more contagious in humans. Nevertheless, ongoing fears that inflation and interest rates will keep rising, coupled with the lack of notable industry leadership, continue to stall investors' attempt to more convincingly embrace a sense that the market is oversold.

To wit, today's best performances have come two of this year's worst performers. Technology, off 5.2% in 2006, has gotten a boost amid renewed enthusiasm for chip stocks. Health Care, which is down 5.5% year to date, is benefiting from a 3.8% surge in Medtronic (MDT 49.77 +1.82), which raised its FY07 and FY08 EPS outlook. In contrast, Energy, Industrials and Materials -- this year's three best performing sectors -- are pacing the way lower as investors consolidate gains. DJ30 +34.18 NASDAQ +8.56 SOX +1.1% SP500 +2.14 NASDAQ Dec/Adv/Vol 1694/1180/1.02

[Roland99]

121. Everybody's buying houses and setting up bird flu protection shelters

:rofl:

[UpInArms]

122. 12:51 EST those might have been bad investments

Dow 11,082.17 -16.18 (-0.15%)
Nasdaq 2,150.53 -8.23 (-0.38%)
S&P 500 1,252.43 -4.14 (-0.33%)
10-Yr Bond 5.034 -0.32 (-0.63%)

NYSE Volume 1,461,991,000
Nasdaq Volume 1,183,644,000

12:30 pm : Major averages are now mixed as split industry leadership continues to dictate trading as the afternoon session gets underway. Autos are still turning in the day's best performance, led by a 6.8% surge in General Motors (GM 26.15 +1.67) which was upgraded to Buy at Merrill Lynch and awarded a $37 price target. In contrast, Forest Products, Gold and Diversified Metals & Mining are leading the list of laggards and, as expected, have resulted in the Materials sector posting the biggest loss among the five economic sectors trading lower. DJ30 +8.72 NASDAQ +1.41 SP500 -0.43 NASDAQ Dec/Adv/Vol 1592/1263/1.15 bln NYSE Dec/Adv/Vol 1864/1234/960 mln

[AnneD]

141. Can I recycle...

my plastic sheeting and duct tape?:tinfoilhat: :hide:

[UpInArms]

143. perhaps you could do this

[AnneD]

145. Perfect...

:rofl::rofl::rofl: gasp for breath :rofl::rofl::rofl:

[stop the bleeding]

123. can we get the DOW to get to an even 11,000? Huh can we please

will it stop at 11?

[UpInArms]

125. 1:08 EST numbers with over-reactive blather

Dow 11,078.02 -20.33 (-0.18%)
Nasdaq 2,151.94 -6.83 (-0.32%)
S&P 500 1,252.06 -4.51 (-0.36%)
10-Yr Bond 5.026 -0.40 (-0.79%)

NYSE Volume 1,564,565,000
Nasdaq Volume 1,278,464,000

1:00 pm : Sellers return from the sidelines as the bottom falls out of the market within the last 30 minutes, pushing the indices to session lows. The Nasdaq has been hit the hardest, as the PHLX Semiconductor Index slips into negative territory, but has found initial support near 2147. The S&P 500 is also hovering above a key technical support level (1251) but continues to languish alongside the tech-heavy Composite. DJ30 -25.21 NASDAQ -9.76 SOX -0.5% SP500 -5.25 NASDAQ Dec/Adv/Vol 1900/1009/1.30 bln NYSE Dec/Adv/Vol 2111/1022/1.09 bln

[UpInArms]

128. 1:18 EST now we have over-reactive numbers to match that blather

Dow 11,056.81 -41.54 (-0.37%)
Nasdaq 2,144.08 -14.68 (-0.68%)
S&P 500 1,249.62 -6.95 (-0.55%)
10-Yr Bond 5.026 -0.40 (-0.79%)

NYSE Volume 1,623,084,000
Nasdaq Volume 1,309,601,000

looks like the Nasdaq and the S&P have blown their support numbers :eyes:

[stop the bleeding]

129. Hang on then because if memory serves me correct

the talking heads on Bloomberg this morning were highlighting this problem and I think they said if the S&P and Nasdaq can not hold them then it is a long way to the next support, we are in for a 6 month ride.

I better dust off the rest of my shorting list and start lining up the ITM Puts

Captain the Dilithium crystals can not take much more, I am giving you all she got.

[stop the bleeding]

131. woohoo only 32 more points to go

Heckva job ___________ insert favorite name here.

[Roland99]

135. Will the faeries experience rendition soon?

[stop the bleeding]

136. well something has stepped in and rocked the DOW back up

for several points

[UpInArms]

137. 2:02 EST Faeries on the Job

Dow 11,101.55 +3.20 (+0.03%)
Nasdaq 2,156.77 -1.99 (-0.09%)
S&P 500 1,253.71 -2.86 (-0.23%)
10-Yr Bond 50.08 -0.58 (-1.14%)

NYSE Volume 1,952,991,000
Nasdaq Volume 1,525,016,000

[Ghost Dog]

140. Yeah finding temporary shelter for all that cash

flowing from those strategic Gold & other commodities sales earlier..

[UpInArms]

142. 2:29 EST Faeries got no Umph!

Dow 11,056.17 -42.18 (-0.38%)
Nasdaq 2,141.38 -17.38 (-0.81%)
S&P 500 1,249.90 -6.67 (-0.53%)
10-Yr Bond 5.022 -0.44 (-0.87%)

NYSE Volume 2,142,811,000
Nasdaq Volume 1,699,850,000

2:00 pm : Choppiness continues as the most recent turn of events -- further deterioration in oil prices -- helps the major averages pare much of their intraday losses as lift the Dow back into positive territory. Aside from crude oil briefly slipping below $70 a barrel (-2.5%) offering some relief, especially heading into the summer driving season, a turnaround in chip stocks and a spike in Dell (DELL 24.19 +0.10) also have the Nasdaq at its best levels of the afternoon. DJ30 +3.37 NASDAQ -3.95 SOX +0.2% SP500 -3.00 NASDAQ Dec/Adv/Vol 2142/826/1.66 bln NYSE Dec/Adv/Vol 2427/782/1.40 bln

[UpInArms]

146. 2:39 EST pscho market on the loose - up/down/up/down/up/down?

Dow 11,102.83 +4.48 (+0.04%)
Nasdaq 2,153.99 -4.78 (-0.22%)
S&P 500 1,254.54 -2.03 (-0.16%)
10-Yr Bond 5.024 -0.42 (-0.83%)

NYSE Volume 2,222,045,000
Nasdaq Volume 1,771,352,000

2:30 pm : Recent recovery efforts are short-lived as bargain hunters just can't seem to garner enough support to get the early 2006 rally back on track. The market is simply going through one of those periods where everything is suddenly viewed in a negative light, as the absence of leadership from Energy and Materials remains more of a concern than the subsequent relief investors are finally getting on the commodity price front with a 2.7% pullback in oil prices and a 5.4% decline in gold -- the biggest one-day slide in 12 years.DJ30 -34.74 NASDAQ -14.80 SP500 -6.09 NASDAQ Dec/Adv/Vol 2004/970/1.85 bln NYSE Dec/Adv/Vol 2174/1043/1.56 bln

I do believe I need the dramamine!

[Roland99]

150. Bipolar Wednesday!

[UpInArms]

151. 2:21 EST roller coaster ride continues

Dow 11,090.28 -8.07 (-0.07%)
Nasdaq 2,157.52 -1.24 (-0.06%)
S&P 500 1,254.63 -1.94 (-0.15%)
10-Yr Bond 5.034 -0.32 (-0.63%)

NYSE Volume 2,553,547,000
Nasdaq Volume 2,076,983,000

3:00 pm : Stocks make another attempt to regain some upside momentum, but market internals reflect little conviction whatsoever on the part of buyers as a bearish bias remains intact. As evidenced in the A/D line, decliners still hold a more than 2-to-1 edge over advancers on both the NYSE and Nasdaq. It is also worth noting that at this time yesterday, the indices were posting almost the exact same gains, only to get hit by a broad-based wave of selling interest in the final hour of trading that led to further losses for the Dow, S&P and Nasdaq.DJ30 +22.89 NASDAQ +4.39 SP500 +1.46 NASDAQ Dec/Adv/Vol 2011/986/2.05 bln NYSE Dec/Adv/Vol 2350/890/1.74 mln

This time I brought the chewable Dramamine with me :D

[UpInArms]

152. 3:47 EST heading for the close with a full head of steam

Dow 11,153.18 +54.83 (+0.49%)
Nasdaq 2,172.81 +14.05 (+0.65%)
S&P 500 1,262.01 +5.44 (+0.43%)
10-Yr Bond 5.034 -0.32 (-0.63%)

NYSE Volume 2,806,215,000
Nasdaq Volume 2,312,568,000

3:30 pm : As expected, the market is back on the defensive amid ongoing uncertainty as to when a market bottom will be reached. Despite reasonable valuations, which is barely being evidenced by renewed interest in depressed areas like Technology and Health Care, the specter of rising interest rates continues to act as an overhang and prompt investors to lock in gains should the market continue to slide. DJ30 -12.52 NASDAQ -3.70 SP500 -2.99 NASDAQ Dec/Adv/Vol 1818/1196/2.26 bln NYSE Dec/Adv/Vol 2054/1209/1.92 bln

[Gregorian]

147. Is it time for another war, to jack up the DOW.

I assume that's where the energy came from to get it above 11,000. Just a wild guess. I know nothing about economics.

[Zynx]

148. The Iraq War simply correlates with a higher Dow.

The two sectors that benefit from the war, energy and defense, are not enough to give the Dow that kind of a boost. In addition, the most direct effect of the war, higher energy prices, hurts most stocks. What it comes down to is that stocks in 2003 were very badly undervalued.

[Buttercup McToots]

153. Dizzy

I'm dizzy...
:crazy:

[Gregorian]

155. Cool. Thanks.

I guess I'll have to relay that to Lee Ving, the singer of Fear. They have lyrics that suggest that we should have another war to "jack up the dow jones". I think they mean specific stocks. Like the ones the Cheney's of the world own.

[mojavekid]

154. Yahoo: Interest in silver increased in 2005

http://news.yahoo.com/s/ap/20060524/ap_on_bi_ge/silver_survey

NEW YORK - Demand for silver rose in 2005 to the highest level in five years as strength in jewelry and industrial products offset softness in photography and coins, the Silver Institute said Wednesday

snip...

"For much of 2005, investment demand in silver tracked moves in the gold prices, as well as expectations," the report said.

The report, which was prepared by London-based GFMS Ltd., a metals research company, said demand for silver for fabrication totaled 864.4 million troy ounces (26,885 metric tons) in 2005, up 3 percent from 839.4 million ounces in 2004 and the highest level since 866.8 million ounces in 2001. A metric ton equals about 2,200 pounds.

snip....

"Chinese silver jewelry and silverware demand rose by a stunning 20 percent in 2005," the report said. "Indian fabrication for this category rose by 8.5 percent ... while North America experienced its fourth successive year of growth."

Production at mines was a record 641.6 million ounces (19,954 metric tons) in 2005, up 3.4 percent from 620.4 million ounces in 2004. Other sources of silver were government sales and silver scrap.

more....

[Ghost Dog]

159. I'd like to hear more about those 'industrial products'...

I recall a Mogambo reference to 'medical applications' a short while ago?

[mojavekid]

161. I have a copy of a laundry list of Industrial Apps.

In newsletter form from Investment Rarities Inc. I must dig it out and find the link for you. In the meantime you can check out the archives, lots of stuff on Silver.

http://www.investmentrarities.com/

They post Ted Butler's weekly commentary on Silver - the most Bully Silver Bull Ever.

-mojavekid

[ozymandius]

156. at the close - AND - jeebus, look at the volume!

Dow 11,117.32 +18.97 (+0.17%)
Nasdaq 2,169.17 +10.41 (+0.48%)
S&P 500 1,258.56 +1.99 (+0.16%)
10-Yr Bond 50.34 -0.32 (-0.63%)
NYSE Volume 2,998,279,000
Nasdaq Volume 2,646,313,000

4:20 pm : For a second straight session, the stock market was extremely volatile as divergent views as to whether or not a bottom might be forming continued to dictate trading. On a positive note, it was the bulls' turn to swoop in at the end of the day to determine the day's outcome, which lifted the indices toward session highs before pulling back to close with only modest gains.

With little in the way of corporate news, investors finally got some economic data to analyze after a two-day hiatus. First out was a larger than expected 4.8% drop in April durable goods new orders. The weakness sparked some chatter that the report might help the Fed hold off on raising rates at the June FOMC meeting. That consideration helped offset early angst related to a report of a potential bird flu outbreak, which incited weakness in overseas markets. The World Health Organization was quick to indicate, though, that it has found "no evidence" that bird flu is more contagious in humans.

Next up was an unexpected 4.9% rise in April new home sales to 1.198 mln -- the highest level this year. While it remains to been seen how policy makers will view the surprisingly strong housing data, as evidenced by a pullback in Treasuries that carried into the close, the report provided some relief that the housing market, which has bolstered consumer spending for years via mortgage refinancing and home equity withdrawals, isn't about to roll over and prompt a material slowdown in economic activity.

Fresh off hitting a new three-year low two days ago was, Microsoft (MSFT 23.50 +0.71) was among the biggest bargains to be found Wednesday, surging 3.1%. General Motors (GM 26.51 +2.03) -- the first Dow component to lose 50% or more over the course of a year in 2005 -- extended its 2006 gain to over 40%, soaring 8.3% after Merrill Lynch upgraded the auto giant to Buy from Neutral and set a price target of $37.

Further underscoring a day that as favored by bargain hunters was the fact that Health Care, Technology, and Utilities -- the year's three worst performing economic sectors -- were today's top three performers. Despite more consolidation in HMOs and declines in drug stocks, renewed enthusiasm in biotech and medical equipment helped the Health Care sector pare some of its leading 5.5% year-to-date disappointment. Medtronic (MDT 50.18 +2.23) was the headliner after it raised FY07 and FY08 EPS guidance.

Technology provided the bulk of upside leadership, though, as Microsoft's surge restored some interest in software and semiconductor chipped away at recent weakness. While Utilities also pared some of its losses, Consumer Staples was a more influential leader to the upside, benefiting primarily from its defensive characteristics as Food Distributors and Tobacco were among the top ten performing S&P industry groups.

Investors getting more relief on the commodity price front, led by a 2.7% pullback in oil prices and a 5.4% decline in gold -- the biggest one-day slide in 12 years, also helped improve sentiment. However, the Energy and Materials sectors -- two of this year's best performers -- succumbed to further profit-taking and prevented the indices from turning in an even better recovery effort. DJ30 +18.97 NASDAQ +10.41 SOX +0.8% SP500 +1.99 NASDAQ Dec/Adv/Vol 1619/1433/2.63 bln NYSE Dec/Adv/Vol 1934/1355/2.03 bln

[Roland99]

157. Traders/brokerages are making serious $$ on the buying/selling of paper.