STOCK MARKET WATCH, Thursday, April 28, 2011

[Pale Blue Dot]

Source: du

STOCK MARKET WATCH, Thursday, April 28, 2011

AT THE CLOSING BELL ON April 27, 2011

Dow 12,690.96 +95.59 (+0.75%)
Nasdaq 2,869.88 +22.34 (+0.78%)
S&P 500 1,355.66 +8.42 (+0.62%)
10-Yr Bond... 3.35 -0.01 (-0.18%)
30-Year Bond 4.48 +0.02 (+0.38%)

---

Market Conditions During Trading Hours

Euro, Yen, Loonie, Silver and Gold

---

Handy Links - Market Data and News:Economic Calendar    Marketwatch Data    Bloomberg Economic News    Yahoo! Finance    Google Finance    Bank Tracker    
Credit Union Tracker    Daily Job Cuts

Handy Links - Economic Blogs:
The Big Picture    Financial Sense    Calculated Risk    Naked Capitalism    Credit Writedowns
Brad DeLong      Bonddad    Atrios    goldmansachs666    The Stand-Up Economist

Handy Links - Government Issues:
LegitGov    Open Government    Earmark Database    USA spending.gov

Handy Links - Videos:
The Coming Collapse of the Middle Class    Charlie Rose talks with Roubini    Charlie Rose talks with Krugman
    William Black: This Economic Disaster    Bill Moyers with Kevin Drum and David Corn

Bush Administration Officials Convicted = 2
Names: David Safavian, James Fondren
Dishonorable Mention: former House majority leader, Tom DeLay

Bush Administration Officials Charged = 1
Name(s): Richard Lopez Razo

Financial Sector Officials Convicted since 1/20/09 = 11

---

---

This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.

Read more: du

[Pale Blue Dot]

1. Today's Reports - including GDP

Apr 28 08:30 GDP-Adv. Q1 0.5% 1.7% 3.1%
Apr 28 08:30 GDP Deflator Q1 2.0% 2.4% 0.4%
Apr 28 08:30 Initial Claims 04/23 390K 390K 403K
Apr 28 08:30 Continuing Claims 04/16 3700K 3690K 3695K
Apr 28 10:00 Pending Home Sales Mar 0.0% 1.7% 2.1%

Read more: http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm#ixzz1KoYxTdAR

[Pale Blue Dot]

9. Economy likely slowed last quarter but better now

WASHINGTON (AP) - The economy probably slowed in the first three months of this year as harsh winter weather and high oil prices hurt spending by consumers, builders and other businesses. But economists predict that was a temporary setback and growth will pick up over the rest of the year.

Thursday morning the government will release a new snapshot of the economy's health that is expected to show a 1.9 percent annual growth rate in the January-March quarter.

That would be much weaker than the 3.1 percent growth rate in the October-December quarter of 2010. And it would be the most sluggish growth since the spring of last year when fears about Europe's debt crisis caused the economy growth's to slow to a feeble 1.7 percent pace.

Looking ahead, economists predict consumers and businesses will spend more in the months ahead because gasoline prices, now averaging $3.88 a gallon nationwide, will stabilize by the summer and drop to about $3.50 by fall. Rising gas prices are taking up much of what Americans are pocketing from the Social Security payroll tax cut.

http://apnews.excite.com/article/20110428/D9MSK5NG0.html

All better now! Nothing to see here! Resume your hope and your spending! :grr:

[DemReadingDU]

15. 4/28/11 U.S. Economy Probably Grew at Slower Pace as Fuel Prices Rose

4/28/11 U.S. Economy Probably Grew at Slower Pace as Fuel Prices Rose

The U.S. economy probably grew at a slower pace in the first quarter as higher gasoline prices prompted American consumers to curb spending, economists said ahead of a government report today.

http://www.bloomberg.com/news/2011-04-28/u-s-economy-probably-cooled-in-first-quarter-as-gasoline-prices-climbed.html


probably? likely? unexpectedly?
:eyes:

[plumbob]

17. Or a few others, just to fill the vial of obfuscation to the top (no half-full here)

likely to happen, apparently, as likely as not, as the case may be, assumably, believably, dollars to doughnuts, doubtless, expediently, feasibly, imaginably, in all likelihood, in all probability, like enough, maybe, most likely, no doubt, one can assume, perchance, perhaps, plausibly, possibly, practicably, presumably, presumptively, reasonably, seemingly, to all appearances.

[Po_d Mainiac]

20. +1000

[DemReadingDU]

23. +++

[xchrom]

81. U.S. Economy Slows As Consumer Spending Decelerates

http://blogs.forbes.com/steveschaefer/2011/04/28/u-s-economy-slows-as-consumer-spending-decelerates/

It should come as little surprise that the U.S. economy slowed down in the first quarter. Federal Reserve Chairman Ben Bernanke noted as much during his first-ever press conference Wednesday and it was confirmed in Thursday morning’s gross domestic product report from the Commerce Department that showed growth of 1.8%.

That follows a 3.1% expansion in the fourth quarter, and much of the weakness can be attributed to “a sharp upturn in imports, a deceleration in , a larger decrease in federal government spending, and decelerations in non-residential fixed investment and exports,” the Commerce Department’s Bureau of Economic Analysis said.

Rising commodity prices were certainly a factor, but that may be reflected more in the second quarter, as consumer spending increased 2.7%. That was down from 4% in the fourth quarter, but hardly a massive drop given higher prices at the pump. That increase, and concurrent increases in food-related commodities, was borne out in a 3.8% increase in prices paid for domestic purchases, compared with just 2.1% in the prior quarter. (See “Bernanke Word Cloud: All About Inflation.”)

Wall Street was signaling a lower open before the GDP report and slipped slightly once the figure was released as Dow Jones industrial average and S&P 500 futures were mired in the red.

[xchrom]

53. U. S. first-quarter growth slows, inflation surges

http://in.reuters.com/article/2011/04/28/idINIndia-56635820110428?type=economicNews

(Reuters) - U.S. economic growth slowed more than expected in the first quarter as higher food and gasoline prices dampened consumer spending, and sent a broad measure of inflation rising at its fastest pace in 2-1/2 years.

But the pull back in output, which was also the result of harsh winter weather, a widening trade gap as well as weak government spending, will probably be fleeting given a firming labor market.

Growth in U.S. gross domestic product -- a measure of all goods and services produced within U.S. borders -- braked to a 1.8 percent annual rate after a 3.1 percent fourth quarter pace, the Commerce Department said on Thursday. Economists had expected a 2 percent growth pace.

"We hit a bit of a soft patch in the first quarter, but that should prove temporary because weather was a drag and we got blindsided a bit by a jump in gasoline prices late in the quarter," said Ryan Sweet, a senior economist at Moody's Analytics before the report was released.

[xchrom]

58. GDP slows sharply in first quarter; jobless claims rise

http://latimesblogs.latimes.com/money_co/

A pair of weak economic reports Thursday show the American recovery remains fragile: Economic growth slowed sharply in the first quarter, and jobless claims unexpectedly jumped last week.

The first report was widely expected. The Commerce Department said the nation’s output of goods and services expanded at an annual rate of 1.8% in the first three months of the year. That was down from 3.1% growth in the fourth quarter and 2.8% for all of last year.

The slowdown reflected the sapping effects of rising oil prices on consumer spending and the nation’s trade. National defense spending fell early this year, and budget-strapped state and local governments added to the weaker expenditures.

[Pale Blue Dot]

65. Jobless claims jump in latest week

(Reuters) - New U.S. claims for unemployment benefits surprisingly rose last week to their highest level since January in a sign an anticipated recovery in labor markets may take time, a government report showed on Thursday.

Initial claims for state unemployment benefits jumped 25,000 to a seasonally adjusted 429,000, up from a slightly upwardly revised 404,000 the preceding week, the Labor Department said. Economists polled by Reuters were expecting claims to slip to 392,000 from the previously reported 403,000.

Jobless claims below 400,000 are associated with steady job growth.

The four week moving average, a better measure of underlying trends, climbed to 408,500 from 399,250 in the previous week. It was the highest for the four-week average since February.

http://www.reuters.com/article/2011/04/28/us-usa-economy-jobs-idUSTRE73R3DO20110428

"surprisingly"
"anticipated recovery in labor markets"
:banghead:

[Pale Blue Dot]

2. Oil above $113 as dollar weakens on Fed comments

SINGAPORE – Oil prices rose above $113 a barrel Thursday in Asia to the highest since 2008 as a weakening U.S. dollar made commodities such as crude cheaper for investors with other currencies.

Benchmark crude for June delivery was up 51 cents at $113.27 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Crude reached $113.70 earlier in the session, the highest since September 2008.

The contract rose 55 cents to settle at $112.76 on Wednesday.

In London, Brent crude for June delivery was up 63 cents to $125.76 a barrel on the ICE Futures exchange.

http://news.yahoo.com/s/ap/oil_prices

[Po_d Mainiac]

19. The DX broke below 73 overnight

The record session low was around 70.7 in 08, although the close was 71+ change.

Walfart is now worried that customers are running out of money as most earnings are coming through with squeezed margins

[DemReadingDU]

37. CNN: Wal-Mart: Our shoppers are 'running out of money'

4/27/11 Wal-Mart: Our shoppers are 'running out of money'

Wal-Mart's core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried, CEO Mike Duke said Wednesday. "We're seeing core consumers under a lot of pressure," Duke said at an event in New York. "There's no doubt that rising fuel prices are having an impact." Wal-Mart shoppers, many of whom live paycheck to paycheck, typically shop in bulk at the beginning of the month when their paychecks come in. Lately, they're "running out of money" at a faster clip, he said.

more...
http://money.cnn.com/2011/04/27/news/companies/walmart_ceo_consumers_under_pressure/index.htm?source=cnn


I wonder how low the dollar will go before it rises again.

[Demeter]

47. I have a song for that--it describes how the dollar will rise, too

http://www.youtube.com/watch?v=fT-aEcPgkuA

(hint--it won't be the Corporations NOR the Government that do it)


She went down last October in a pouring driving rain.
The skipper, he'd been drinking and the Mate, he felt no pain.
Too close to Three Mile Rock, and she was dealt her mortal blow,
And the FORMER US DOLLAR settled low.
There were just us five aboard her when she finally was awash.
We'd worked like hell to save her, all heedless of the cost.
And the groan she gave as she went down, it caused us to proclaim
That the FORMER US DOLLAR would rise again.

Well, the owners wrote her off; not a nickel would they spend.
She gave 200 years of service, boys, then met her sorry end.
But insurance paid the loss to them, they let her rest below.
Then they laughed at us and said we had to go.
But we talked of her all winter, some days around the clock,
For she's worth a quarter TRillion, afloat and at the dock.
And with every jar that hit the bar, we swore we would remain
And make the FORMER US DOLLAR rise again.

Rise again, rise again, that her name not be lost
To the knowledge of men.
Those who loved her best and were with her till the end
Will make the FORMER US DOLLAR rise again.

All spring, now, we've been with her on a barge lent by a friend.
Three dives a day in hard hat suit and twice I've had the bends.
Thank God it's only sixty feet and the currents here are slow
Or I'd never have the strength to go below.
But we've patched her rents, stopped her vents, dogged hatch and
porthole down.
Put cables to her, 'fore and aft and girded her around.
Tomorrow, noon, we hit the air and then take up the strain.
And make the FORMER US DOLLAR Rise Again.

For we couldn't leave her there, you see, to crumble into scale.
She'd saved our lives so many times, living through the gale
And the laughing, drunken rats who left her to a sorry grave
They won't be laughing in another day. . .
And you, to whom adversity has dealt the final blow
With smiling bastards lying to you everywhere you go
Turn to, and put out all your strength of arm and heart and brain
And like the FORMER US DOLLAR, rise again.

Rise again, rise again - though your heart it be broken
And life about to end
No matter what you've lost, be it a home, a love, a friend.
Like the FORMER US DOLLAR, rise again.

[Po_d Mainiac]

56. With more QE to go

and no plans to even talk about raising interest rates till the end of Q4, there appear to be plenty of stairs between here and the cellar.

EM's can't be happy with the comments from Bennie and his Inkjets. Expect further moves away from the FRN as the petro-buck and more down the rathole of carry-trade status.

Start saving those copper pennies and current issues of nickels.
YMMV

[xchrom]

27. Assessing the energy implications of political intervention

http://www.theoildrum.com/node/7798

Energy is back in the public consciousness and perhaps higher up political priority lists than at any time since the summer of 2008. Disruptions in Libya, leaked cables about Saudi Arabia's creative accounting, and rapid growth in worldwide understandings of resource depletion make dodging future energy supply problems increasingly difficult. A few symptoms of this are:

* Hype about "getting off the oil hook” from the UK's energy secretary
* Spain limiting speed limit to “combat” rising oil prices
* Talk of releasing some of IEA members' 1.6 bbl of reserves as a “last resort”

People in power seem to be waking up to the importance of oil and talking about it in public in ways that they never have before. But this raises some questions: Do they (or we) have any idea about the likely impacts of different interventions proposed to deal with energy problems? and how can the energy implications of different interventions be assessed?

In this essay I aim to answer these questions with reference to a paper published in Energy Policy titled “The energy implications of replacing car trips with bicycle trips in Sheffield, UK”. A preprint is available for those without institutional access.




there is some good reading and some good graphs in this.

[Demeter]

46. Now, How Long Before They Wake Up to the Importance of "People"?

FRSP!

[xchrom]

52. UPDATE 1-Berry Petroleum Q1 profit lags Street view, ups FY spend plan

http://in.reuters.com/article/2011/04/28/berry-idINL3E7FS45C20110428

* Q1 adj EPS $0.41 vs est of $0.45

* Sees FY capex $400-$450 mln (Follows alerts)

April 28 (Reuters) - Oil-focused explorer and producer Berry Petroleum Co raised its full-year spending outlook without a substantial hike in output forecast, and posted a second straight estimate-lagging quarterly profit on higher expenses.

For 2011, Berry now expects capital spending to be $400-$450 million, compared with earlier forecast of $375-$425 million. However, output view was increased by just 500 barrels of oil equivalent per day (boed) to 37,500-39,500 boed.

[Pale Blue Dot]

3. Stock futures tread water ahead of GDP, post-Fed

MADRID (MarketWatch) — U.S. stock market futures were trading mostly steady on Thursday ahead of key gross domestic product data and as investors paused for breath in the wake of the prior day’s rally after the U.S. Federal Reserve vowed to stick to a low interest-rate policy.

Futures for the Dow Jones Industrial Average rose 4 points to 12,645, while futures for the S&P 500 index inched up 0.7 points to 1,351.70. Futures for the Nasdaq 100 were flat at 2,408.75.

The Dow Industrials DJIA +0.76% closed up 0.8% to 12,690.96 on Wednesday, its highest since May 20, 2008. The Nasdaq Composite COMP +0.78% , meanwhile, knocked out a 2007 closing high to finish at its best level since December 12, 2000.

Speaking in the Fed’s first post-statement press conference, Federal Reserve Chairman Ben Bernanke said the central bank will keep its easy monetary policy and isn’t mulling any quick policy moves to fight higher inflation or slower growth.

http://www.marketwatch.com/story/stock-futures-tread-water-ahead-of-gdp-post-fed-2011-04-28?dist=beforebell

[xchrom]

30. Bernanke Starts Dialogue With Public, Pledges to Keep Stimulus

http://www.businessweek.com/news/2011-04-28/bernanke-starts-dialogue-with-public-pledges-to-keep-stimulus.html


April 28 (Bloomberg) -- Ben S. Bernanke, at the first press conference by a Federal Reserve Chairman following a policy meeting, said the economy still requires monetary support while the need to contain inflation means further easing is unlikely.

The 57-year-old former Princeton University professor stepped before the television cameras in a top-floor conference room in the Fed’s Washington headquarters yesterday and began a dialogue with the American public about the central bank’s goals and strategies. He explained the tension between reducing an 8.8 percent unemployment rate and keeping a lid on inflation.

“It’s not clear that we can get substantial improvements in payrolls without some additional inflation risk,” Bernanke said to nearly 60 reporters. “Ultimately, if, if inflation persists or if inflation expectations begin to move, then there’s no substitute for action,” he said. “We would have to respond.”

The Fed’s decision to have its chairman hold press conferences four times a year fulfills a key goal Bernanke has sought since he was a governor in 2002. The added transparency, already practiced by central banks from the U.K. to New Zealand, over time is likely to narrow the range of estimates on when the Fed will change course and reduce swings in short-term interest rates, said Julia Coronado at BNP Paribas.



he's gonna need a cardigan and a fireside:eyes:

[Demeter]

41. He Needs to Get Out

Retire, flee the country, get a lobotomy, anything but stay there, twisting the levers of the economy.

This is Bernanke's world depression. He went to grad school to learn how to crash the economy. Studied for it specifically.

[xchrom]

45. Indeed. Nt

[xchrom]

31. Nasdaq Invades NYSE as Niederauer Champions Deutsche Boerse

http://www.businessweek.com/news/2011-04-28/nasdaq-invades-nyse-as-niederauer-champions-deutsche-boerse.html

(Updates with NYSE Earnings from fifth paragraph.)

April 28 (Bloomberg) -- Robert Greifeld, the Nasdaq OMX Group Inc. chief executive officer who has spent two weeks sowing dissent among holders of NYSE Euronext, will find out how successful he’s been at the Big Board’s annual meeting today.

While Greifeld and IntercontinentalExchange Inc. CEO Jeffrey Sprecher will be absent from the event in downtown Manhattan when New York Stock Exchange owners vote on directors and speak to management about a month-old takeover battle, money managers say their bid should be considered. Nasdaq OMX and ICE made an unsolicited offer to acquire NYSE Euronext for $11.3 billion on April 1 to block the Big Board’s $10 billion merger agreement with Deutsche Boerse AG.

NYSE Euronext CEO Duncan Niederauer plans to use the meeting to explain the long-term benefits of his agreement and why the board declined to negotiate over the competing proposal. Bill Miller, the chief investment officer of Legg Mason Capital Management Inc. in Baltimore, said the refusal to meet is inconsistent with Niederauer’s obligations.

[Po_d Mainiac]

4. The day after the chaisatan spoke

Look for more pain at the pump which is just 'transitory'

More grocery hurt

Further decline of the FRN (but that ain't a concern)

QE2 will continue

And if you are a saver..You'll be getting more butt sex from the banksters, till at least two FOMC meetings out

[Pale Blue Dot]

5. Gold hits fresh high as US dollar falls to three-year low

Gold climbed to a fresh high of more than $1,532 an ounce after US Federal Reserve chairman Ben Bernanke effectively ruled out an early interest rate rise, sending the US dollar skidding to three-year lows.

On Wednesday Bernanke used his first ever live press conference to warn the US deficit is "not sustainable" and pledged to keep US interest rates low in order to keep the country's tentative economic recovery on track.

In what was a second record-breaking day for gold, the spot price hit $1,532.91 (£918) an ounce. First quarter US GDP data is due to be released at 13.30 BST and Bernanke predicted a weak performance with growth below 2% and indicated it would be at least two more meetings before the Fed considered raising rates.

The Fed has kept rates low and pumped cash into the economy in an effort to boost lending but that policy has also helped inflate the prices of dollar-based commodities such as oil, which has risen by 50% since last summer.

http://www.guardian.co.uk/business/2011/apr/28/gold-hits-fresh-highs-us-dollar

[Po_d Mainiac]

8. Metals are factoring in the future TP status of the FRN n/t

:donut: Good Morning

[Pale Blue Dot]

6. No QE3 Right - So Why Did The USD Just Hit A New Cyclical Low? Citi Explains Why

The factors:

1) the Fed comfort zone with how core inflation is evolving -- investors may have been looking for an upgrading of the degree of inflation concern that did not emerge either in the statement or in the press conference comments -- neither emerged

2) the dismissal of USD weakness as a factor driving commodity prices -- echoing a speech by Fed Vice-Chairman Yellen a few weeks ago; rapid growth in EM economies was viewed as the major factor in commodity price strength

3) the comments on a strong dollar policy were treated pretty much as pro forma relative to the view that a stronger US economy is a prerequisite to a stronger USD in the medium -- a view that embraces USD weakness in the near-term -- "The second thing we are trying to accomplish is get a stronger recovery and achieve maximum employment. Again, a strong economy attracting foreign capital will be good for the dollar."

4) reference to the success of QE2 -- in particular to the gains in stock and credit prices as the measure of the success of QE2 -- by implication a weaker USD is an unindicted co-conspirator in that success

http://www.zerohedge.com/article/no-qe3-right-so-why-did-usd-just-hit-new-cyclical-low-citi-explains-why

More at the link.

[Po_d Mainiac]

11. And chopper thinks the stock markets are more indicitive

of the economy than the main street marketplaces. :grr:

[Demeter]

14. Or the employment statistics, Massaged as they are

[DemReadingDU]

7. Karl Denninger: TickerCon symbol now 2

On April 21, Denninger had set it to 1, now back to 2. I don't follow enough of his his postings to know why it was reset.

previous posting from 4/21/11..,
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4822243&mesg_id=4822437

[Demeter]

16. Denninger is a Tea Party Founder?

Karl Denninger, Tea Party Founder, Blasts Palin, Gingrich & 'Douchebag' Tea Party Groups

http://www.huffingtonpost.com/2010/10/20/karl-denninger-tea-party_n_770108.html

Karl Denninger, an original organizer of the Tea Party, is out with a livid blog post blasting current leaders of the conservative movement and the apparent hypocrisy in their views of the economic issues that originally catalyzed its creation.

According to Denninger, "Sarah Palin, Newt Gingrich, Bob Barr, and douchebag groups such as the Tea Party Patriots" are to blame for the bastardization of a movement that now seems focused on "Guns, gays, God," instead of the Tea Party's original mission: to castigate the federal government for supporting the "rampant theft" of taxpayer dollars that went toward "propping up FAILED private businesses."

Here's the down and dirty of what Denninger believes the Tea Party was all about:

In short, The Tea Party was and is about the the corruption of American Politics and the blatant and outrageous theft from all Americans that has resulted. It is about personal responsibility and enforcement of the law against those who have robbed, financially ****d and pillaged the nation.

Denninger's analysis of the movement now led by former Alaska Governor Sarah Palin and represented by GOP candidates such as Sharron Angle, Rand Paul and Christine O'Donnell is biting:


Tea Party my ass. This was nothing other than The Republican Party stealing the anger of a population that was fed up with The Republican Party's own theft of their tax money at gunpoint to bail out the robbers of Wall Street and fraudulently redirecting it back toward electing the very people who stole all the ****ing money!

HE SHOULD HAVE GOTTEN IT TRADEMARKED

[Po_d Mainiac]

18. Too bad he's getting to be a legand in his own mind n/t

[DemReadingDU]

21. video 4/28/08 FedUpUSA Protest - New York City

Three years ago, there was a group of people (from Denninger's blog) who were Fed Up with the banksters and protested in New York. They formed the group FedUpUSA, informally called a tea party. Later people like Palin, Gringich, Barr, associated themselves with The Tea Party.

4/28/08 FedUpUSA Protest - New York City
http://www.youtube.com/watch?v=3Y0c1dpD4yY

[Festivito]

10. Debt: 04/26/2011 14,304,410,507,726.10 (UP 5,480,487,027.57) (Tue, UP a little.)

(Over the old debt limit of 14.294-trillion dollars by 10-billion dollars. Good day.)
Wow, oil is stable. All those threats of investigations into price fixing?
(Debt under Obama seems to jump up big then drop slowly maybe up a little and down a little for days--repeat.)
= Held by the Public + Intragovernmental(FICA)
= 9,651,121,964,676.35 + 4,653,288,543,049.75
UP 207,526,568.97 + UP 5,272,960,458.60

Source: Debt to the penny:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 312-Million person America.
If every American, man, woman and child puts in $3.21 THAT'S 1B$, and $3,206.40 makes 1T$.
A family of three: Mom, Dad, Child: $9.62, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 12 seconds we net gain another American, so at the end of the workday of the report, there should be 311,876,192 people in America.
http://www.census.gov/population/www/popclockus.html ON 10/04/2010 04:37 -> 310,403,677
Currently, each of these Americans owe $45,865.67.
A family of three owes $137,597.01. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 20 reports in the last 30 to 32 days.
The average for the last 20 reports is 4,643,847,804.26.
The average for the last 30 days would be 3,095,898,536.17.
The average for the last 32 days would be 2,902,404,877.66.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 174 reports in 253 days of Obama's part of FY2009 averaging 7.33B$ per report, 5.07B$/day so far.
There were 249 reports in 365 days of FY2009 averaging 7.57B$ per report, 5.16B$/day.
There were 251 reports in 365 days of FY2010 averaging 6.58B$ per report, 4.53B$/day.
There were 141 reports in 208 days of FY2011 averaging 5.27B$ per report, 3.57B$/day.
Above line should be okay

PROJECTION:
There are 635 days remaining in this Obama 1st term.
By that time the debt could be between 15.2 and 17.6T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
04/26/2011 14,304,410,507,726.10 BHO (UP 3,677,533,458,813.02 so far since Obama took office.)

FISCAL YEAR DEBT CHANGE, Sep 30 prior year to Sep 30 named year:
(One "* " for each 40B$ reached)
FY1994 +0,281,261,026,873.94 ------------* * * * * * * WJC
FY1995 +0,281,232,990,696.07 ------------* * * * * * * WJC
FY1996 +0,250,828,038,426.34 ------------* * * * * * WJC
FY1997 +0,188,335,072,261.61 ------------* * * * WJC
FY1998 +0,113,046,997,500.28 ------------* * WJC
FY1999 +0,130,077,892,735.81 ------------* * * WJC
FY2000 +0,017,907,308,253.43 ------------WJC
FY2001 +0,133,285,202,313.20 ------------* * * C&B
01-WJC +0,053,598,528,417.78 ------------* WJC 31% of FY, 40% of FY-Debt
01-GWB +0,079,686,673,895.42 ------------* GWB 69% of FY, 60% of FY-Debt
FY2002 +0,420,772,553,397.10 ------------* * * * * * * * * * GWB
FY2003 +0,554,995,097,146.46 ------------* * * * * * * * * * * * * GWB
FY2004 +0,595,821,633,586.70 ------------* * * * * * * * * * * * * * GWB
FY2005 +0,553,656,965,393.18 ------------* * * * * * * * * * * * * GWB
FY2006 +0,574,264,237,491.73 ------------* * * * * * * * * * * * * * GWB
FY2007 +0,500,679,473,047.25 ------------* * * * * * * * * * * * GWB
FY2008 +1,017,071,524,649.92 ------------* * * * * * * * * * * * * * * * * * * * * * * * * GWB
FY2009 +1,885,104,106,599.30 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B&O
09GWB +0,602,152,152,000.60 ------------* * * * * * * * * * * * * * * GWB 31% of FY, 32% of FY-Debt
09-BHO +1,282,951,954,598.70 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO 69% of FY, 68% of FY-Debt
FY2010 +1,651,794,027,380.00 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
FY2011 +0,742,787,476,834.40 ------------* * * * * * * * * * * * * * * * * * BHO
Endof11 +1,303,449,178,098.83 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
04/05/2011 -000,031,815,631.67 ----
04/06/2011 -000,011,756,275.73 ----
04/07/2011 +002,235,163,853.48 ------------*********
04/08/2011 +000,001,314,747.36 ------------******
04/11/2011 +000,390,366,211.15 ------------******** Mon
04/13/2011 +000,216,450,469.86 ------------********
04/14/2011 +004,827,508,513.07 ------------*********
04/15/2011 +021,566,615,397.70 ------------**********
04/18/2011 +000,320,133,441.47 ------------******** Mon
04/19/2011 +000,498,845,624.51 ------------********
04/20/2011 +000,031,154,878.79 ------------*******
04/21/2011 -029,604,944,039.31 -
04/22/2011 +000,169,463,975.78 ------------********
04/25/2011 +000,297,069,525.13 ------------******** Mon
04/26/2011 +000,207,526,568.97 ------------********

1,113,097,260.56 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008 while Bush was in power JUST BEFORE fiscal year end.
Bush admin borrowed $962,245,245,654.01 in those last 124 days in office crossing two fiscal years.
$360,093,093,653.42 in last 12 days of FY2008, and $602,152,152,000.59 in subsequent 112 days before leaving office.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock
http://www.usdebtclock.org/
DUer primer on National debt

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4828978&mesg_id=4829576

[Festivito]

87. Debt: 04/27/2011 14295127825809.1 (DOWN 9,282,681,917.00) (Wed, DOWN some.)

(Over the old debt limit of 14.294-trillion dollars by 1-billion dollars. Good day.)
Oh my, a quick trip to Ann Arbor for the evening workaholics.
(Debt under Obama seems to jump up big then drop slowly maybe up a little and down a little for days--repeat.)
= Held by the Public + Intragovernmental(FICA)
= 9,648,789,481,220.81 + 4,646,338,344,588.29
DOWN 2,332,483,455.54 + DOWN 6,950,198,461.46

Source: Debt to the penny:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 312-Million person America.
If every American, man, woman and child puts in $3.21 THAT'S 1B$, and $3,206.33 makes 1T$.
A family of three: Mom, Dad, Child: $9.62, ABOUT TEN BUCKS for a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is the federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)

PERSONALIZED DEBT:
Every 12 seconds we net gain another American, so at the end of the workday of the report, there should be 311,883,392 people in America.
http://www.census.gov/population/www/popclockus.html ON 10/04/2010 04:37 -> 310,403,677
Currently, each of these Americans owe $45,834.85.
A family of three owes $137,504.54. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 21 reports in the last 30 to 33 days.
The average for the last 21 reports is 3,980,679,722.30.
The average for the last 30 days would be 2,786,475,805.61.
The average for the last 33 days would be 2,533,159,823.28.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 174 reports in 253 days of Obama's part of FY2009 averaging 7.33B$ per report, 5.07B$/day so far.
There were 249 reports in 365 days of FY2009 averaging 7.57B$ per report, 5.16B$/day.
There were 251 reports in 365 days of FY2010 averaging 6.58B$ per report, 4.53B$/day.
There were 142 reports in 209 days of FY2011 averaging 5.17B$ per report, 3.51B$/day.
Above line should be okay

PROJECTION:
There are 634 days remaining in this Obama 1st term.
By that time the debt could be between 15.2 and 17.6T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
04/27/2011 14295127825809.1 BHO (UP 3,668,250,776,896.02 so far since Obama took office.)

FISCAL YEAR DEBT CHANGE, Sep 30 prior year to Sep 30 named year:
(One "* " for each 40B$ reached)
FY1994 +0,281,261,026,873.94 ------------* * * * * * * WJC
FY1995 +0,281,232,990,696.07 ------------* * * * * * * WJC
FY1996 +0,250,828,038,426.34 ------------* * * * * * WJC
FY1997 +0,188,335,072,261.61 ------------* * * * WJC
FY1998 +0,113,046,997,500.28 ------------* * WJC
FY1999 +0,130,077,892,735.81 ------------* * * WJC
FY2000 +0,017,907,308,253.43 ------------WJC
FY2001 +0,133,285,202,313.20 ------------* * * C&B
01-WJC +0,053,598,528,417.78 ------------* WJC 31% of FY, 40% of FY-Debt
01-GWB +0,079,686,673,895.42 ------------* GWB 69% of FY, 60% of FY-Debt
FY2002 +0,420,772,553,397.10 ------------* * * * * * * * * * GWB
FY2003 +0,554,995,097,146.46 ------------* * * * * * * * * * * * * GWB
FY2004 +0,595,821,633,586.70 ------------* * * * * * * * * * * * * * GWB
FY2005 +0,553,656,965,393.18 ------------* * * * * * * * * * * * * GWB
FY2006 +0,574,264,237,491.73 ------------* * * * * * * * * * * * * * GWB
FY2007 +0,500,679,473,047.25 ------------* * * * * * * * * * * * GWB
FY2008 +1,017,071,524,649.92 ------------* * * * * * * * * * * * * * * * * * * * * * * * * GWB
FY2009 +1,885,104,106,599.30 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B&O
09GWB +0,602,152,152,000.60 ------------* * * * * * * * * * * * * * * GWB 31% of FY, 32% of FY-Debt
09-BHO +1,282,951,954,598.70 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO 69% of FY, 68% of FY-Debt
FY2010 +1,651,794,027,380.00 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
FY2011 +0,733,504,794,917.40 ------------* * * * * * * * * * * * * * * * * * BHO
Endof11 +1,281,001,196,865.32 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
04/06/2011 -000,011,756,275.73 ----
04/07/2011 +002,235,163,853.48 ------------*********
04/08/2011 +000,001,314,747.36 ------------******
04/11/2011 +000,390,366,211.15 ------------******** Mon
04/13/2011 +000,216,450,469.86 ------------********
04/14/2011 +004,827,508,513.07 ------------*********
04/15/2011 +021,566,615,397.70 ------------**********
04/18/2011 +000,320,133,441.47 ------------******** Mon
04/19/2011 +000,498,845,624.51 ------------********
04/20/2011 +000,031,154,878.79 ------------*******
04/21/2011 -029,604,944,039.31 -
04/22/2011 +000,169,463,975.78 ------------********
04/25/2011 +000,297,069,525.13 ------------******** Mon
04/26/2011 +000,207,526,568.97 ------------********
04/27/2011 -002,332,483,455.54 --

-1,187,570,563.31 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008 while Bush was in power JUST BEFORE fiscal year end.
Bush admin borrowed $962,245,245,654.01 in those last 124 days in office crossing two fiscal years.
$360,093,093,653.42 in last 12 days of FY2008, and $602,152,152,000.59 in subsequent 112 days before leaving office.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock
http://www.usdebtclock.org/
DUer primer on National debt

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4830740&mesg_id=4830769

[Pale Blue Dot]

12. Philly School District Plans 3,820 Job Cuts

In a Philadelphia School District budget briefing Wednesday, chief financial officer Michael Masch gave some pretty grim news: the $629 million budget gap means major job and program cuts.

With the current state funding cuts the district would have to eliminate 1,260 teaching jobs, 400 members of central office staff (50 percent of district headquarters personnel), 650 noon-time aids, about 400 custodians, 180 counselors and 51 nurses, according to a statement by the district Wednesday.

Full-day Kindergarten would also be eliminated.

Seventy percent of the District’s budget is mandated. For the past eight years the Philadelphia School District’s 200,000 students have had rising test scores, and the district has been successful in charter school expansion. The state’s current budget proposal that cuts funding could turn the district’s progress around, the statement said.

http://www.nbcphiladelphia.com/news/local/Philly-School-District-Plans-3820-Job-Cuts-120809839.html

[Demeter]

13. Unequal Protection: The Early Role of Corporations in America

http://truthout.org/unequal-protection-early-role-corporations-america/1303765294


...In researching nineteenth-century laws regulating corporations, Morris found that in Wisconsin, as in most other states at that time:

* Corporations were required to have a clear purpose, to be fulfilled but not exceeded.2

* Corporations’ licenses to do business were revocable by the state legis- lature if they exceeded or did not fulfill their chartered purpose(s).3

* The state legislature could revoke a corporation’s charter if it misbehaved.4

* The act of incorporation did not relieve corporate management or stockholders/owners of responsibility or liability for corporate acts.5

* As a matter of course, corporation officers, directors, or agents couldn’t break the law and avoid punishment by claiming they were “just doing their job” when committing crimes but instead could be held criminally liable for violating the law.6

* State (not federal) courts heard cases where corporations or their agents were accused of breaking the law or harming the public.7

* Directors of the corporation were required to come from among stockholders.8

* Corporations had to have their headquarters and meetings in the state where their principal place of business was located.9

* Corporation charters were granted for a specific period of time, such as twenty or thirty years (instead of being granted “in perpetuity,” as is now the practice).10

* Corporations were prohibited from owning stock in other corporations, to prevent them from extending their power inappropriately.11

* Corporations’ real estate holdings were limited to what was necessary to carry out their specific purpose(s).12

* Corporations were prohibited from making any political contributions, direct or indirect.13

* Corporations were prohibited from making charitable or civic donations outside of their specific purposes.14

*State legislatures could set the rates that some monopoly corporations could charge for their products or services.15

*All corporation records and documents were open to the legislature or the state attorney general.16

Similar laws existed in most other states. It is important to understand that tens of thousands of entrepreneurs did business in the early colonies and continue to do so today without being incorporated—the proverbial butcher, baker, and candlestick maker. To do business in America or most of the world does not require a corporate structure—people can run partnerships, individual proprietorships, or simply manufacture and sell products or offer services without any business structure whatsoever other than keeping track of the money for the Internal Revenue Service.

It’s only when a group of people get together and put capital (cash) at risk and want to seek from the government legal limits on their liability, and to legally limit their possible losses, that a corporate form becomes necessary. In exchange for these limitations on liability, governments demand certain responsibilities from corporations. The oldest historic one was that corporations “operate in the public interest” or “to the public benefit.” After all, if the people, through their elected representatives, are going to authorize a legal limitation of liability for a group of people engaged in the game of business, it’s quite reasonable to ask that the game be played in a way that throws off some benefit to the government’s citizens or at least doesn’t operate counter to the public welfare.

But the bigger they got, the less America’s corporations (or their investors) seemed to like regulation and the more they started to seek more flexibility. Railroads, in particular, were finding themselves increasingly subject to local and state taxes, regulations, and tariff and passenger fare limits, which were specifically designed to keep prices affordable for the people and to limit the profits of the railroads to what the people’s governments considered fair for state-authorized monopolies.

So, starting in the 1870s, the railroads and their owners began directing massive legal attacks against the power of governments to regulate them...

[xchrom]

22. This should be it's own thread & refreshed everyday. Nt

[Hotler]

25. +1 k&r n/t

[xchrom]

24. Dickensian tragedy in India

http://www.atimes.com/atimes/South_Asia/MD29Df01.html

CHENNAI - The recent murder of 10-year-old Moin Khan in New Delhi by his employer-uncle once again highlights the terrible practice of child labor in India. Incredible as it may sound, child workforce is strictly banned by law in India. Yet, there are 60 million very young boys and girls toiling day and night for a pittance, while rightfully they ought to be at school.

It is very common, therefore, to see even eight-year-old children working all day long, in some of the most dangerous industries like firecracker and glass production. Here life is at peril during every working minute.

Moin did not work in perilous conditions, but his hours in a sweat-shop rolling bidis (Indian cigarettes) were laboriously long and


backbreaking. He was only seven when he boarded a train from his native state of Bihar bidding goodbye to his parents. He never saw them again after being taken away by his uncle to work in the shop he owned. The uncle, Kalimullah Khan, probably promised the parents that the money their son earned in the shop would be sent back home.

[xchrom]

26. Fly China, risk included

http://www.atimes.com/atimes/China_Business/MD29Cb01.html

For business, possibly nowhere in the world is the balance between risks and reward more obvious than within the Chinese aviation market. On one hand is the lucrative Chinese market, with its growing middle class eager to travel within the country, around the region and across the world; yet on the other is an aggressive government-funded aviation sector, hungry to develop its own industrial national champions that can compete with the likes of Airbus and Boeing.

To make this tension that much more interesting, there are obvious national security implications to this sector as know-how in commercial and general aviation inevitably directs and informs


parts of China's fast-growing defense industry.

While the aviation market shows the shortsightedness of protectionism (are we really to turn our backs on the phenomenal market opportunity in China?), it equally shows the limits of nationalism (are we OK that the price of entry to China's aviation market is a once-in-a-generation technology transfer to their manufacturing base?).

[xchrom]

28. BofA Said to Target Individual States in Foreclosure Inquiry

http://www.businessweek.com/news/2011-04-28/bofa-said-to-target-individual-states-in-foreclosure-inquiry.html

April 28 (Bloomberg) -- Bank of America Corp. was accused by a top official at the Iowa attorney general’s office of engaging in a divide-and-conquer strategy by undermining support for the settlement of a nationwide probe into foreclosure practices, a person familiar with the matter said.

The bank tried to get attorneys general to break away from those supporting the proposed accord, Iowa Assistant Attorney General Patrick Madigan said during a recent conference call, according to the person. A second person familiar with the settlement talks said the bank sought to sow dissent among the states, eight of which have publicly criticized the proposal’s terms. Both people asked not to be identified because the talks are private. Madigan declined to comment.

“We have held face to face negotiating sessions and our negotiations continue,” Iowa Attorney General Tom Miller, a Democrat who leads the 50-state effort, said in a statement. “We believe all the banks are negotiating in good faith.”

Madigan, who was giving an update to state officials, said the largest U.S. lender by assets was taking a “divide-and- conquer” approach in a bid to disrupt negotiations, according to the person on the call. Jumana Bauwens, a spokeswoman for the Charlotte, North Carolina-based bank, declined to comment.

[xchrom]

29. Apple Risks Following Google as Europe Leads Privacy Probes

http://www.businessweek.com/news/2011-04-28/apple-risks-following-google-as-europe-leads-privacy-probes.html

April 28 (Bloomberg) -- Apple Inc. may face greater scrutiny in the European Union than the U.S. as regulators investigate possible data-privacy lapses betraying the location of iPhone and iPad users.

The Apple probes in Europe echo similar inquiries that have dogged Google Inc. over wireless Internet data collected by its Street View service, said Nick Graham, head of the London Internet and data protection group of law firm SNR Denton.

“Issues that may not look terribly serious in the U.S. can have much greater significance and seriousness here in Europe, as Google has found out in connection with the WiFi,” said Graham. “There is this tension between the U.S. rules which are much narrower and the EU rules which are much broader.”

Regulators in Germany, France and Italy said last week they are checking whether Apple’s iPhone and iPad products violate privacy rules by tracking, storing and sharing data about the locations of users. Irish officials are also examining “a number of complaints about this issue,” Diarmuid Hallinan, a spokesman for the country’s data protection commissioner, said in an e-mail today.

[xchrom]

32. europe: Most European Stocks Climb as Deutsche Bank Beats Estimates

http://www.businessweek.com/news/2011-04-28/most-european-stocks-climb-as-deutsche-bank-beats-estimates.html

April 28 (Bloomberg) -- Most European stocks rose as Deutsche Bank AG’s earnings beat estimates and the Federal Reserve pledged to keep rates low for an “extended period.” U.S. futures were little changed and Asian shares gained.

Deutsche Bank rose 4 percent as Germany’s biggest bank reported a 17 percent increase in first-quarter profit. Suez Environnement rose 4.2 percent after also posting higher profit. SAP AG sank the most in 1 1/2 years after reporting a smaller- than-expected increase in profit.

The benchmark Stoxx Europe 600 Index rose less than 0.1 percent to 282.15 at 12:51 p.m. in London as 58 percent of the index members rose. The MSCI Asia Pacific Index advanced for the first time this week, adding 1.1 percent, while futures contracts expiring in June on the Standard & Poor’s 500 Index slipped less than 0.1 percent.

“Equity markets are supported by powerful and strong earnings on the one hand and low interest rates on the other hand,” said Philipp Musil, who helps manage about $12 billion at Semper Constantia Privatbank AG in Vienna. “The market ignores all other crises around us right now. There’s no alternative to investing in equities.”

[xchrom]

64. Scientists oppose European stem cell patent ban

http://www.reuters.com/article/2011/04/27/us-europe-stemcells-scientists-idUSTRE73Q66520110427

(Reuters) - Research scientists hit out on Wednesday at a European Court of Justice (ECJ) case they say could block development of embryonic stem cell-based therapies in Europe.

The ECJ's advocate general has said all patents on embryonic stem cell-related technologies should be banned on moral grounds, but in a letter in the journal Nature and during a briefing in London, leading stem cell scientists said that could spell disaster for drug firms seeking treatments for conditions such as blindness and spinal chord injuries.

"If the ECJ was to follow this opinion, the reality is that all patents in Europe that relate to human embryonic stem cells will be eliminated," said Austin Smith of the Center for Stem Cell Research in Cambridge, one of letter's 13 signatories.

"This will put Europe at a huge disadvantage."

[xchrom]

66. European shares hit 8-week closing high

http://www.reuters.com/article/2011/04/28/markets-europe-stocks-close-idUSLDE73R0VS20110428

(Reuters) - European shares rose on Thursday to aneight-week closing high, boosted by strong results from companies including Suez Environnement (SEVI.PA) and on hopes the U.S. central bank will support the economy.

The pan-European FTSEurofirst 300 .FTEU3 index of top shares provisionally closed up 0.3 percent at 1,152.97 points highest since early March, but volumes were below its 90-day daily average ahead of a four-day holiday weekend in the UK.

[xchrom]

33. india: Market to remain volatile on macro headwinds: Experts

http://www.moneycontrol.com/news/market-edge/market-to-remain-volatilemacro-headwinds-experts_539010.html

The market has remained choppy for the fifth consecutive session. Analysts feel that the market tends to remain highly volatile during the expiry day of the month and since it is expiry day of the F&O (futures & options) contracts today, the market is facing volatility.

Moreover, investors are dealing with macroeconomic concerns like interest rates, inflation and oil, and hence, there is a possibility that the market will be a bit unstable for now before gearing up to head higher.

In the view of Siddharth Bhamre from Angel Broking, the market was under pressure due to selling. He said, “It appears that 5800 on Nifty is also selling off April contracts and we are not seeing any built up happening in 5800, which clearly suggests that we may not have a great closing for the expiry but this won’t change our view that this is not a market where you should short because we are not seeing any fresh shorting by FII in index futures.”

In the view of Hemen Kapadia, chartpundit.com, 5,771-5737 in terms of Nifty futures has been reasonably strong despite of today being an expiry day. “As of now 5,800 on Nifty has been like a psychologically important level but technically, 5,771 is more important now,” he said.

[xchrom]

34. 2G scam: Are Ambani and Tata too big for the CBI?

http://www.moneycontrol.com/news/business/2g-scam-are-ambanitata-too-big-forcbi_539022.html

The NGO, which brought the 2G spectrum case to the Supreme Court, on Wedenesday alleged that telecom bigwigs like Reliance Communications’ Anil Ambani, Essar's Prashant Ruia and Tatas' who are real beneficiaries have been left out of CBI chargesheets.

In an interview with CNBC-TV18’s Karan Thapar, Subramanian Swamy, Chief Petitioner, 2G Scam and HP Ranina, Corporate Tax Lawyer, speak about the issue.

Anil Ambani, Tatas untouched by CBI: NGO to SC

Below is a verbatim transcript. Also watch the accompanying video.

[xchrom]

38. Nifty ends below 5800 on settlement day; RIL, TCS, SBI dip

http://www.moneycontrol.com/news/local-markets/nifty-ends-below-5800settlement-day-ril-tcs-sbi-dip_538995.html

Equity benchmarks witnessed selling pressure in the late trade on Thursday - a settlement day for the month of April. Technology, capital goods, power, steel, auto and Anil Dhirubhai Ambani Group companies' shares took beating today, which dragged the Sensex down by 157 points.

The 50-share NSE Nifty closed below the 5800 mark, which was quite below experts' expectations. Hemant Thukral of SBI Capital Securities was expecting Nifty to expire around 5870-5900.

VK Sharma of HDFC Securities too said the index was going to close sub-5850. However, he believes people in the market do expect some kind of weakness. The Nifty May futures closed at 25 points premium.

"We could see weakness coming in the next one week. If I have long positions, I would not carry long positions where I am losing money but will roll over only 50% of those where I am making money because I expect weakness to set in the next settlement in the first week. We will return on the May 9 to have a relook at the markets and build fresh ones," Sharma said.

[xchrom]

49. Facts about Eurofighter, Rafale in India fighter race

http://in.reuters.com/article/2011/04/28/idINIndia-56634520110428

REUTERS - India has shortlisted European defence firms Dassault and Eurofighter for an $11 billion fighter jet contract, rejecting U.S. and Russian firms in a move that indicates an effort by Asia's third largest economy to broaden its strategic ties.

Eurofighter, shortlisted for the order, is a four-nation consortium of EADS, representing Germany and Spain, Britain's BAE Systems and Italy's Finmeccanica. Dassault makes the Rafale.

Here are some details on both planes:

[xchrom]

50. India rejects Boeing, Lockheed for $11 bln jet order

http://in.reuters.com/article/2011/04/28/idINIndia-56625520110428

(Reuters) - India has rejected U.S. firms for an $11 billion fighter jet contract, shortlisting European firms instead, in a move that could sour its relationship with the United States while broadening its strategic ties with other regions.

The rejection comes despite lobbying from President Barack Obama during a high-profile visit to India five months ago, and coincides with the unexpected resignation of the U.S. ambassador to India, who cited "personal, professional, and family considerations" in a statement on Thursday.

The U.S. embassy in India declined to comment if Timothy Roemer's resignation was linked to the jet decision, with a spokeswoman referring queries to a statement on their website.

Roemer said in a separate statement on India's decision: "We are...deeply disappointed by this news. We look forward to continuing to grow and develop our defense partnership with India."

[xchrom]

51. Rupee ends off 1-week high; oil, shares weigh

http://in.reuters.com/article/2011/04/28/idINIndia-56635720110428

Reuters) - The rupee erased early gains to end flat on Thursday, after rising to a one-week high, as dollar demand from oil importers and negative local shares weighed.

The partially convertible rupee closed steady at 44.43/44 per dollar, after hitting 44.2575 earlier in the day, its highest since April 21.

"The rupee should be treading in gains tomorrow with month-end dollar demand almost through. The euro is likely to rise further against the dollar," said Vikas Chittiprolu, a senior forex dealer with Andhra Bank.

[xchrom]

69. Soaring silver set to hit India imports

http://www.arabianbusiness.com/soaring-silver-set-hit-india-imports-396773.html

Soaring silver prices are driving Indians to recycle jewellery into bars as an easier, more reliable way to invest, a trend that will limit imports of the metal in the world's fourth largest consumer.

Problems over storage and quality make silver bars more attractive than jewellery such as bangles.

Global silver prices have risen by nearly half this year to 31-year highs, after a gain of more than 80 percent in 2010, far outpacing gains for gold where India is the world's top consumer.

"People are diversifying their portfolios," said Suresh Hundia, chairman of Mumbai-based silver trader, Hundia Exports, one of the country's largest private silver refiners. "Now they have to have silver in their portfolios."

But the rising demand was unlikely to mean higher imports, he added.

[xchrom]

35. asia: BOJ reckons Japan in recession, stands pat on policy

http://www.moneycontrol.com/news/world-news/boj-reckons-japanrecession-stands-patpolicy_538982.html

The Bank of Japan kept monetary policy unchanged on Thursday even as it lowered growth forecasts and estimated the economy tipped into recession early this year, disappointing economists who felt the grim readings after last month's earthquake called for more policy easing.

Japan's recovery from the quake would accelerate from October, the BOJ said in its twice-yearly outlook on the economy. At the same time, it revised up economic forecasts for the year ending in March 2013 and raised its estimate for inflation in the current fiscal year.

Speaking after the policy meeting, BOJ Governor Masaaki Shirakawa said he was well aware of the uncertainty in the economic outlook. The central bank earlier said it would take steps in the future as needed.

Still, market participants were surprised to learn the BOJ board had outvoted a proposal by Deputy Governor Kiyohiko Nishimura to expand the pool of funds for asset buying and market operations by 5 trillion yen (USD 61 billion) to 45 trillion yen.

[xchrom]

36. IMF sees more pressing need for tightening in Asia

http://www.moneycontrol.com/news/world-news/imf-sees-more-pressing-need-for-tighteningasia-_538920.html

Many Asian economies have been slow to raise interest rates and clamp down on credit and they need to act promptly to avoid overheating, the International Monetary Fund said on Thursday.

Higher currency exchange rates should be a key line of defense against rising inflation, the fund said in its periodic Asia economic outlook.

"The tightening cycle has generally been slow, possibly reflecting lingering doubts about the strength of the global recovery and of private domestic demand in Asia," the IMF said.

"The need to tighten macroeconomic policy stances in Asia has become more pressing now than it was six months ago."

[Demeter]

43. "Pressing Needs" Are Things Like Food, Shelter, and Medicine

Next in line are stable economies, jobs, and environment, education, and government to keep society free and fair and its citizens safe from predators.

Lastly, maybe one might worry a bit about interest rates, if one wants to borrow money with the intent to pay it back.

But if the intent is to defraud the lender, the interest rate makes no difference whatsoever....

[xchrom]

54. Panasonic to axe thousands of jobs, close dozens of plants

http://in.reuters.com/article/2011/04/28/idINIndia-56622720110428

(Reuters) - Japanese consumer electronics giant Panasonic Corp said it would cut another 17,000 jobs and close up to 70 factories around the world over the next two years in a bid to pare costs and keep up with Asian rivals.

The maker of Viera TVs and Lumix cameras said it was aiming to trim its workforce of 367,000 at the end of last month to 350,000 by March 2013. The cull comes on top of nearly 18,000 job cuts made in the past business year, for a total of around 35,000 over three years.

"The figure is huge, but so is the company, and for an old-fashioned one like Panasonic, this is a big move," said Toru

[xchrom]

55. Nikkei slips to 1-week low, stronger yen hurts exporters

http://in.reuters.com/article/2011/04/26/us-markets-japan-stocks-idINTRE73L0AV20110426

(Reuters) - Japan's Nikkei average closed at a one-week low on Tuesday, losing 1.2 percent as exporters were hit by a stronger yen in thin trade ahead of corporate earnings announcements.

Falls in exporter shares undermined the overall market after the dollar hit a four-week low against the yen, reducing the value of their overseas earnings.

Electronics giants fell, with Sony Corp (6758.T) losing 2.1 percent to 2,415 yen and Toshiba Corp (6502.T) down 2.8 percent at 416 yen.

Among carmakers, Toyota Motor Corp (7203.T) fell 2.4 percent and Honda Motor Co (7267.T) lost 1.6 percent.

[Po_d Mainiac]

57. Busted supply lines tend to kill production..assanine article. n/t

[Demeter]

70. Global supply lines was a really dumb idea to begin with.

Has nobody heard about Napoleon's Trek to Russia?

[xchrom]

67. Is Beijing brewing something?

http://blogs.reuters.com/george-chen/2011/04/27/beijing-brewing-something/

The opinions expressed are the author’s own.

There are growing signs that something is brewing in relation to China’s foreign exchange rate regime.

When Hong Kong traders returned from the Easter break, many were surprised to be told by their mainland colleagues about growing market speculation that Beijing might be planning a one-off deal to lift the value of the yuan — some say by as much as 10 percent.

Others are more cautious. They say a one-off revaluation sounds unlikely although Beijing may relax foreign exchange controls by setting new “game rules” around the upcoming Labour Day holiday in the first week of May. The Financial Times yesterday ran a nice scoop about sovereign wealth fund China Investment Corp being set to win new funds, likely $100-200 billion, as Beijing seeks to diversify its massive foreign exchange reserves, now exceeding $3 trillion.

I support the idea of further empowering CIC. If Beijing wants to reduce its exposure to U.S. debt, expanding direct investment worldwide is a very workable solution. Will Beijing make a formal statement on its ambition to boost CIC’s shopping power abroad during the Labour Day holiday?

[xchrom]

76. Samsung launches new Galaxy S II smartphone

http://www.arabianbusiness.com/samsung-launches-new-galaxy-s-ii-smartphone-396789.html

Samsung Electronics Co, the world's number two handset maker, launched a new version of its flagship smartphone Galaxy S in South Korea ahead of its global debut in May, targeting global sales of over 10 million this year.

The local debut of the Galaxy S II comes as it is locked in a legal battle with Apple Inc over alleged mobile technology patent infringements and design copy claims, as they jockey for position in the competitive smartphone market.

The South Korean firm said on Thursday it would roll out the new model, at the heart of its drive to boost smartphone shipments to 60 million units this year, globally from May through 140 operators in 120 countries.

[xchrom]

79. China's yuan rises to new high against USD

http://news.xinhuanet.com/english2010/china/2011-04/28/c_13849698.htm

BEIJING, April 28 (Xinhua) -- The Chinese currency Renminbi (RMB), or the yuan, Thursday gained 45 basis points from Wednesday to a record new high of 6.5051 per U.S. dollar.

On China's foreign exchange spot market, the yuan can rise or fall 0.5 percent from the central parity rate each trading day.

[xchrom]

39. Starbucks profit up 20%; no plans to raise drink prices

http://seattletimes.nwsource.com/html/businesstechnology/2014892987_starbucks28.html

SEATTLE —

Starbucks' profit grew 20 percent for the second quarter ended April 3, as the chain added cafes slowly and improved sales of coffee and other products in grocery stores.

Its profit was $261.6 million, up from $217.3 million a year earlier. It earned 34 cents a share, about 4 cents lower than it would have, had coffee prices not spiked in recent months.

Starbucks has no plans to raise drink prices across the board to offset higher costs, executives told analysts during a conference call Wednesday.

"There's going to be a lot of pressure on large and small players in the marketplace," CEO Howard Schultz said, and the Seattle company is "making sure our customers are seeing the fact that Starbucks is providing value for them at a time when perhaps others are going to have to raise prices in a significant way."

[DemReadingDU]

40. And So The Billionaires Turn On Each Other - Sokol's Lawyer Accuses Buffett Of Lying

4/27/11 And So The Billionaires Turn On Each Other - Sokol's Lawyer Accuses Buffett Of Lying

And so the cannibalism at the very top begins. According to a statement just released by Barry Wm. Levine, attorney of David Sokol (who was slated to be the next head of Berkshire... until Berkshire decided to sue him that is), none other than the Octogenarian (soon possibly the Outcast) of Omaha was in fact lying, and arguably committing 10(b)-5 fraud by not disclosing the full details of his and Sokol's involvement in the situation in the Lubrizol proxy. To wit: "Mr. Buffett was told twice, not once, about Mr. Sokol’s ownership of Lubrizol stock before Mr. Buffett engaged in any discussions with Lubrizol." And we personally can't wait for Munger to be the next fall guy: we are confident that Charlie will suck it in, like every other good citizen who benefited from the infinite taxpayer largesse. Grab the popcorn - it's dirty laundry "on the record" time.

Full statement of Barry Wm. Levine, attorney for David Sokol

I am profoundly disappointed that the Audit Committee of Berkshire Hathaway would authorize the issuance of its report to the public without the care and decency to ask even a single question of Mr. Sokol. Mr. Sokol had been associated with the Berkshire Hathaway companies for 11 years. During this time, his indefatigable efforts helped create enormous value for the Berkshire shareholders. He deserved better. While I take issue with much of the Committee’s report, I briefly make the following points. If the Audit Committee had asked, it would have learned that:

* Mr. Sokol had been studying Lubrizol for personal investment since the summer of 2010; such investments are specifically allowed by his employment agreement.
* Mr. Buffett was told twice, not once, about Mr. Sokol’s ownership of Lubrizol stock before Mr. Buffett engaged in any discussions with Lubrizol.
* Contrary to the Audit Committee’s statement, Mr. Sokol’s Lubrizol shares were not acquired pursuant to a “100,000 limit order.” Rather, they were purchased as a result of several limit orders, over a period of days, at specified prices, for the day only, in order to acquire the stock at low prices. At that time, Mr. Sokol had no reason to anticipate that Mr. Buffett would have any interest whatsoever in Lubrizol.

I have known Mr. Sokol and have represented his companies in business litigation since the mid 1980s. I know him to be a man of uncommon rectitude and probity. He would not, and did not, trade improperly, nor did he violate any fair reading of the Berkshire Hathaway policies.
5

http://www.zerohedge.com/article/and-so-billionaires-turn-each-other-sokols-lawyer-accuses-buffett-lying

[Demeter]

44. Finally! Those Trailers and Ads Are Getting Excessive

:popcorn:

[xchrom]

48. and AIG is going to sue a couple of firms for fraud!

just when you thought IRONY was dead.

[Demeter]

72. "History always repeats itself twice: first time as tragedy, second time as farce." - Karl Marx

Which explains the Clinton impeachment, among other things.

Too bad this Depression is going to be so much worse than the last, tragedy-wise.

[xchrom]

73. i LOVE that quote.

i always trot it out whenever i can -- and you used it brilliantly here.

[Demeter]

82. ty!

[alterfurz]

83. Maybe if we listened to it, history would stop repeating itself. -- Lily Tomlin

The only thing we learn from history is that we don't learn from history. -- Martin Heidegger

[Demeter]

84. I will have to add those to my repertoire; thanks!

[xchrom]

42. 2011 delivery target for 787 can be met, McNerney insists

http://seattletimes.nwsource.com/html/businesstechnology/2014884764_boeingearns28.html

Boeing's senior leadership Wednesday shrugged off the serious buildup of rework on the 787 Dreamliners already built as "nothing new" and already accounted for in the company's latest delivery plan.

On its quarterly earnings conference call, Chairman and CEO Jim McNerney insisted Boeing can meet its forecast and deliver 12 to 20 Dreamliners this year by skipping over the most troublesome planes now parked on the Everett flight line.

Looking farther ahead, McNerney said the company's production rates are to rise 40 percent over the next three years — as the new 787 and 747-8 jets roll out along with a faster pace of 777s and 737s — "fueling really an unprecedented growth for Commercial Airplanes."

He said Boeing will be in hiring mode for the foreseeable future in both the Puget Sound region and in South Carolina.

[xchrom]

59. New wave of tainted food in China and how inflation could make it worse

http://latimesblogs.latimes.com/money_co/2011/04/new-wave-of-food-scares-in-china-could-spread-because-of-inflation.html

Three years after China was rocked by a massive tainted-milk scandal, the country has again been hit by a wave of food scares in recent weeks.

The list includes diseased pigs used for bacon; noodles made of corn, ink and paraffin; rice contaminated with heavy metals, sausages made of rotten meat and fertilizer; and pork described as "Tron blue" because it glowed in the dark from bacteria.

That so many new scandals have emerged even after the central government implemented a sweeping food-safety law in 2009 speaks to the depth of the regulation's ineffectiveness, experts say.

An article Tuesday in the state-owned Global Times said food inspectors could be bribed to ignore diseased pork entering the food chain.

[xchrom]

60. Verizon's 4G LTE network suffering service outages

http://latimesblogs.latimes.com/technology/2011/04/verizons-4g-lte-network-outages.html

Verizon Wireless' 4G LTE network was failing to provide service to customers on Wednesday, leaving many to run on the carrier's slower 3G networks.

The nation's largest mobile service provider confirmed the 4G problems in a Twitter message, stating:

We're aware of an issue with #4G #LTE connections & our network engineers are working to resolve quickly. Will update here.

Verizon officials were unavailable for comment on the 4G problems as of Wednesday afternoon, and the company has offered no indication of how many 4G customers are being affected.

[xchrom]

61. Chrysler to fully repay U.S., Canada loans

http://www.reuters.com/article/2011/04/28/us-chrysler-refinancing-idUSTRE73Q76G20110428

(Reuters) - Chrysler Group LLC, which came to the brink of collapse before a federal bailout in 2009, plans to fully repay more than $7 billion in loans from the U.S. and Canadian governments by the end of June.

The company's announcement on Thursday comes almost two years after Chrysler emerged from a U.S.-funded bankruptcy under the management of Italian automaker Fiat SpA (FIA.MI).

Proceeds from term loans and debt sold to institutional investors will be used to repay the governments, Chrysler said in a statement. Chrysler aims to repay the governments and pay related fees and expenses in the second quarter.

Fiat will also exercise an option to buy 16 percent of Chrysler for $1.27 billion during the quarter. Chrysler said it will use that cash to repay the loans.

[xchrom]

62. UPDATE 2-NYSE chairman calls Nasdaq/ICE bid 'illusory'

http://www.reuters.com/article/2011/04/28/nyse-shareholders-idUSN2824965320110428

NEW YORK, April 28 (Reuters) - NYSE Euronext (NYX.N) Chairman Jan-Michiel Hessels called an unsolicited takeover bid by Nasdaq OMX Group (NDAQ.O) "illusory" and defended the board's decision not to engage in discussions with the rival.

NYSE favors a $10.1 billion friendly deal to merge with Deutsche Boerse (DB1Gn.DE), and has twice rejected the $11.2 billion rival offer by Nasdaq and IntercontinentalExchange Inc (ICE.N) to take over the Big Board parent.

NYSE has cited regulatory risks and long-term company strategy in rejecting the Nasdaq and ICE offer, and has refused to engage in discussions.

Some shareholders at NYSE's annual meeting on Thursday urged the company to talk with the rival bidders and also sweeten the terms of their existing deal with Deutsche Boerse. Eight out of nine investors polled this week by Reuters said NYSE should at least talk to Nasdaq and ICE about their bid.

[xchrom]

63. US STOCKS SNAPSHOT-Stocks gain strength; Nasdaq turns positive

http://www.reuters.com/article/2011/04/28/markets-stocks-positive-idUSWEN215620110428

(Reuters) - Wall Street edged up on Thursday, erasing early losses, as investors brushed off disappointing economic reports and bet on a further rally in the stock market.

[xchrom]

68. middle east: Gulf markets end mixed

http://www.arabianbusiness.com/gulf-markets-end-mixed--396670.html

Most Mideast markets rose on Thursday, showing strength in individual stocks.

Downbeat sentiment dominated UAE bourses on concerns a delay on a new payment settlement system may affect the country's bid to gain coveted MSCI emerging market status while investors in Qatar were more upbeat on its preparation for a similar review in June.

UAE's bourses have given brokers and custodians until May 29 to switch to delivery versus payment (DvP), a global standard, after concerns emerged from some market participants about the process.

"Delaying implementing of DvP if anything, just increases the uncertainly whether they will make it or not," said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading. "Uncertainty is never good for the market."

[xchrom]

71. Dubai widens July oil-price differential to 40-cent discount

http://www.arabianbusiness.com/dubai-widens-july-oil-price-differential-40-cent-discount-396701.html

Dubai oil, a Arabian Gulf benchmark for Asia, will sell in July at its deepest discount in a year as buyers favour lighter, sweeter crudes over the more sulfur-heavy blends sold mainly in the Middle East.

The official selling price for Dubai crude loading in July will be 40 cents less than the Oman futures contract for that month, according to an e-mailed statement Thursday from Dubai’s Department of Petroleum Affairs. The discount grew from 25 cents below Oman for June and takes Dubai crude to its lowest level against the benchmark since June 2010.

The Oman futures contract is the only product traded on the Dubai Mercantile Exchange, which announced the price differential determined by the department. The spread between Oman oil futures and costlier European benchmark Brent crude has more than tripled over the past six months to $6.74 a barrel on Wednesday April 27.

[xchrom]

74. Dubai's Thani Group eyes listing in next three years

http://www.arabianbusiness.com/dubai-s-thani-group-eyes-listing-in-next-three-years-395486.html

Dubai’s Thani Group, a privately owned venture capitalist firm, plans an initial public offering within the next three years, its chief executive officer said.

The group, whose subsidiaries include minerals company Thani Emirates Resources Holdings, plans to list a number of its units, CEO Richard Camball told Arabian Business.

“The time horizon is over the next three years. It could be a few of the Thani companies, but at the moment it’s too early to say ,” he said.

The company announced a joint venture Wednesday with South Africa’s AngloGold Ashanti, a gold mining company with a capital expenditure of $1,015m in 2010.

[xchrom]

75. video: Dubai's Gold Souq traders on selling at record prices

http://www.arabianbusiness.com/videos/gold-rush-374046.html

Trade in Dubai’s Gold Souq has been flourishing since the 1940s when the government introduced a series of free trade policies that encouraged entrepreneurs from India and Iran to set up gold stores.

Today, the emirate known as the City of Gold is the world’s second largest redistributor of gold bullion and one of the biggest regional trading hubs for gold. In 2009, the value of gold imports reached $14.5bn, according to official statistics.

In more recent years the price of gold has steadily increased as investors have flocked to the precious metal as a safe haven for their investments amid the downturn. In December the price reached an all-time high of $1,431 per ounce but analysts have predicted it could go higher still.

What does this record high price mean for traders at one of Dubai's most traditional souqs? ABTV talks to traders and buyers to find out whether or not gold is still just as popular.

[xchrom]

77. Short-term handouts no answer to Arab crisis, says IMF

http://www.arabianbusiness.com/short-term-handouts-no-answer-arab-crisis-says-imf--396804.html

Creating jobs and restructuring energy and food subsidies remain critical challenges for Middle East oil exporting countries the wake of the political turmoil in the region, the IMF has said.

High unemployment rates and untargeted subsidies have sparked social unrest across the region, but the solution doesn’t lie in short-term spending plans or social reforms, said the Middle East director for the fund.

“I think it’s certainly the case that whenever you look around the world whenever there is a crisis there is acceleration in momentum for reform or change,” Masood Ahmed told Arabian Business.

“Right now we are in a point in the region where we've seen the first round of changes. Those are mostly changes to try and bide time and to give people initially what they want in terms of more handouts,” he added.

[Demeter]

85. They Aren't the Only Ones!

[xchrom]

78. latin america: World Economic Forum on Latin America opens in Rio de Janeiro

http://news.xinhuanet.com/english2010/business/2011-04/28/c_13849849.htm

RIO DE JANEIRO, April 27 (Xinhua) -- The World Economic Forum on Latin America 2011 opened here Wednesday, focusing on economic perspectives for the region.

The theme of the forum is "Laying the Foundation for a Latin American Decade," comprised of three thematic pillars: strengthening regional and international governance, enhancing innovation and productivity for equitable growth and promoting effective partnerships for sustainable development.

[xchrom]

80. Vale Brasil Sea Monster Sends Shipping Returns Plummeting: Freight Markets

http://www.bloomberg.com/news/2011-04-27/vale-brasil-sea-monster-sends-shipping-returns-plummeting-freight-markets.html

The biggest iron-ore carrier ever built arrives in Brazil next week, a sign of strengthening demand for commodities that means record profit for Vale SA (VALE5) and a slump in earnings for shipping companies.

The Vale Brasil, almost as big as the Bank of America Tower in New York, is scheduled to be at Rio de Janeiro on May 3, tracking data compiled by Bloomberg show. It is the first of a fleet of 19 such vessels that Vale, the world’s largest iron-ore producer, is building to supply China, which buys about 60 percent of all shipments of the raw material used to make steel.

For Rio de Janeiro-based Vale, the new ships ensure it can export more ore at a time when shortages drove prices 84 percent higher in a year. For ship owners, it worsens a glut that caused returns to drop 66 percent since January. A measure of the combined earnings of the 12-member Bloomberg Dry Ships index will fall 23 percent this year, with Genco Shipping & Trading Ltd. (GNK) reporting a 75 percent decline in profit, according to analysts’ estimates compiled by Bloomberg.

“These sea monsters are going to prolong the slump,” said Erik Nikolai Stavseth, an analyst at Arctic Securities ASA in Oslo whose recommendations on shares of shipping companies returned 27 percent in six months. “It’s going to change the way iron ore flows to China, and it will take longer until the market rebalances,” he said, predicting some rates in the spot, or single-voyage, market may not be profitable until 2015.

[DemReadingDU]

86. OMG, gas jumped to $4.15 this afternoon