News: 2014-02-12

I will be going into a winter break on Sunday, so my owning posting may be sporadic next week. Other posts will appear as normal.


Emerging Markets

Chances are high of exodus from EM –

“The risks posed by emerging markets relate less to their own vulnerabilities than to deficiencies in the global financial architecture. Financial intermediation mismatches, volatility mispricing and co-ordination failure threaten a train wreck in emerging markets and an atypical spillover to the weakest developed economies. “

La inflación es la principal preocupación social en Argentina, según un estudio,Latinoamérica – toda la actualidad de Latam – Expansió

According to a recent study, inflation is the principal worry for citizens in Buenos Aires

Las clínicas privadas piden un aumento por la devaluación –

Hospitals and clinics in Argentina are asking to raise prices in order to deal with increased costs from the recent devaluation. Either the government allows these kinds of price increases to go through or they will find some businesses shutting down and going out of business. This is the inflation predicament.

Peso plunge forces Argentine soya hoarding –

““Pesos are no use – the worst thing you can do is hold pesos.” “

Mobius Says Emerging-Market Rout Near End as Valuations Lure

India warns U.S. about dumping investigation in solar trade spat | Reuters

China squeeze is hampering Asian growth – 

“China is a big factor in this new dynamic. Today, the world is focusing on the implications of slower growth in China. But it also needs to start focusing on the role of Chinese banks as a source of liquidity for neighbours and emerging markets generally.”

Strong China January trade data sparks cheers, doubts | Reuters

” Many struggled to explain the unexpectedly buoyant trade figures, especially since Taiwan and South Korea both saw export sales slump in January, when the Lunar New Year holiday reduced the number of working days. Four separate purchasing managers’ indices also showed China’s factory and services sectors sliding to multi-month or multi-year lows in January as export and domestic orders fell.”

China Resource Imports Hit New Highs – China Real Time Report – WSJ

Fed admits it triggered emerging markets sell-off but says some countries’ policies made them vulnerable | South China Morning Post

interesting viewpoint from China 



Australia Readies More Than $100 Billion in Asset Sales –

Australian Treasurer Hockey: Budget Cuts Won’t Harm Economic Growth –

Australia joins the group of countries saying monetary policy should be an offset to tighter fiscal. This is unbalanced and will end in tears.


Federal Reserve

Fed Urges Emerging Markets to Take Heftier Policy Actions to Stem Capital Flight – Real Time Economics – WSJ

Fed Chairwoman Janet Yellen’s prepared remarks for Congress – Real Time Economics – WSJ

Yellen: ‘Too many Americans remain unemployed’ – Feb. 11, 2014

Fed Might Pause Taper if Outlook Worsened Notably, Yellen Says – Real Time Economics – WSJ

Fed’s Plosser: Taper Process Might Need To Be Quicker – Real Time Economics – WSJ


North America 

A Walmart Worker Explains Why Walmart’s Customer Service Is Horrible

Some Hot Housing Markets Cool –

Is U.S. Housing Unaffordable? It Depends on How You Chart It – Real Time Economics – WSJ

Labor Battle at Kellogg Plant in Memphis Drags On –

““It’s simple — Kellogg’s is a highly profitable company and just wants to pay people less,” said Mr. Watts, who has worked at the plant for 28 years. “It’s just plain greed.””

Vital Signs: Small Businesses Expect More Customers and Workers – Real Time Economics – WSJ

“The National Federal of Independent Business said its small business optimism index edged up to 94.1 in January, returning to levels posted before the government shutdown caused the index to crater. Important for the economic outlook, small businesses owners are more upbeat about future sales and hiring plans.”

A plan for Puerto Rico | MuniLand

Puerto Rico Expects to Issue Bonds to Refinance Some Debt –

“The offering could be up to $3.5 billion with a final maturity of between 15 and 20 years, according to people familiar with the offering. Puerto Rico legislators have put forth a bill to authorize a sale of as much as $3.5 billion, according to an island government website. The final size hasn’t been determined and will likely depend on the level of investor demand, said investors.” 

Boehner Sets Clean Vote for Borrowing Limit –

“Mr. Boehner’s retreat marks a major victory for President Barack Obama and congressional Democrats who have long insisted that the debt limit should be approved without conditions. Democrats and the White House contend increasing the borrowing limit is a routine measure needed to fulfill fiscal obligations already incurred. “The era of threatening default has to be over,” White House National Economic Council Director Gene Sperling said Tuesday at a breakfast hosted by the Christian Science Monitor.” 



House prices: if wages had kept up, we’d earn £44,000 more – Telegraph

Portugal Property Buyers Reappear as Economy Mends, Cushman Says – Bloomberg

ECB Weidmann: ECB Needs Clear Limits To Flexibility | MNI



Record tumble in Japan machinery orders casts doubt on Abenomics | Reuters

About that 1929 Chart -The Details Matter | PRAGMATIC CAPITALISM



Why global water shortages pose threat of terror and war | Environment | The Observer

Small Caps hit 24-year high against FTSE 100 –

PIMCO | Viewpoints – Leveraged Finance Outlook: Riding the Low Default Wave

“Following strong performance in 2013, we expect low (1%–3%) defaults in leveraged finance markets this year. Issuance should remain healthy, and continued slow but steady growth in the U.S. economy should offer further stability to these companies. However, careful credit selection and monitoring of sector trends remain imperative. Investors with low tolerance for volatility and more interest rate sensitivity may emphasize loans, while investors with greater risk tolerance and a more benign outlook for rates may look to high yield.”

The Single-Best Metric: EV/EBITDA Crossing Wall Street



The Embarrassing Fact MtGox Left Out Of Their Press Release: Their Bad Code Hygiene Was The Direct Cause Of Problems

Why nobody can withdraw bitcoins from one of the currency’s largest exchanges – Quartz

Bitcoin hit by denial of service attacks as regulators prepare clampdown | Reuters

Canada Regulators Look at Ways to Get a Better Handle on Bitcoin – Canada Real Time – WSJ

The Bitcoin bump: stores turn to virtual currency for a marketing boost | The Verge



Sochi Olympics is a cyber war zone, experts warn –

How to Watch the Sochi Olympics Online Without a Cable Account

‘Flappy Bird’ Creator Dong Nguyen Pulled Game Because It Was ‘Too Addictive’ –

New iPhone – now upsized – set for release in September | South China Morning Post

Biggest DDoS ever aimed at Cloudflare’s content delivery network | Ars Technica

Exclusive: Lithium Technologies to Acquire Klout | Re/code



Rand Paul Joining NSA Lawsuit |

Maryland lawmakers want to cripple the NSA’s headquarters | The Verge



KTLA’s Sam Rubin Apologizes to Samuel L. Jackson – News Distribution Network, Inc.

This interview is a train wreck

Getting a Parking Ticket Has Never Felt This Good [VIDEO]

De de Gaulle à Sarkozy… les présidents français en visite aux Etats-Unis, Diaporamas

In anticipation of Hollande’s visit to the US, here are photos of French and American Presidents together over the last 50-60 years. Good photo review.


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