News: 2014-02-13
Latin America
Venezuela alcanza la inflación más alta del mundo | Economía | EL PAÍS
Inflation in Venezuela was 3.3% on a monthly basis, bringing year’s price rise to 56.2%, the highest in the world
For Venezuela, Bond Payments Create a Bind – WSJ.com
Remember that Russia defaulted on domestic debt in order to pay foreign currency obligations in 1998. “The oil-rich country pays its overseas bondholders right on time. But the cash-strapped government is in hock to the tune of $50 billion to the private companies that service its economy. They range from oil contractors and airlines to supermarkets that need dollars to import everything from flour to toilet paper.”
Venezuela lurches deeper into crisis | beyondbrics
Apache to Sell Argentina Operations to YPF for $800 Million – WSJ.com
Though Apache is selling assets everywhere, I wonder if this sale is connected to a desire to avoid expropriation in Argentina. I don’t see this as a net positive for Argentina in terms of resource exploitation
El dólar blue vuelve a los $12 y el oficial se mantiene en $7,82
The dollar is now being quoted at $12 in the black market versus $7.82 at the official rate. This would suggest serious depreciation is coming
La inflación de enero fue 4,61% según consultoras privadas – lanacion.com
The monthly rate of inflation in January in Argentina was the highest since 2007 at 4.61% according to a private estimate. On an annualized basis, that would be over 50%. The annualized rate is supposed to now be over 30%.
Emerging Markets
World asleep as China tightens deflationary vice – Telegraph
“The transmission channel to the global banking system is through Hong Kong and Macao. Bejing’s credit squeeze is causing a scramble for off-shore dollar credit to plug the gap. It is this that keeps global regulators awake at night, for foreign currency loans to Chinese companies have jumped from $270bn to an estimated $1.1tn since 2009. “
China banks’ bad loan ratio hits two-year high | Reuters
Emerging Markets could get cheaper: but they’re cheap | FT Long Short
EMs are paying the price of ETF liquidity – FT.com
“the structure of ETFs, which allows trading through the day, had contributed significantly to the scale of the recent sell-off in emerging markets, and was helping to make the sector more volatile. “
The Fed is not to blame for turmoil in emerging markets – FT.com
“This whingeing ought to stop. The root of the problem is a failure of the domestic policy of their own governments. Emerging market central banks are being asked to keep currency values stable, hold down inflation, support growth and maintain financial stability. This balancing act, difficult at the best of times, becomes impossible when other policies – fiscal and structural – are providing little support, or even working at cross-purposes. “
India Consumer Inflation, Factory Output Fall After Rate Rises – Bloomberg
“The consumer-price index rose 8.79 percent from a year earlier, compared with 9.87 percent in December, the Statistics Ministry said in New Delhi yesterday. The median estimate in a Bloomberg News survey of 37 analysts was 9.2 percent. The latest rate was the lowest since January 2012. “
Technology
Comcast and Time Warner Cable: Forget TV, it is all about broadband — Tech News and Analysis
“Comcast has made a daring $44 billion offer to acquire its nearest cable competitor, Time Warner Cable. While it might seem like the deal is about video, our math says it is all about broadband. And it always has been. “
Comcast Is Buying Time Warner Cable to Make Big Cable Even Worse
Comcast to buy Time Warner Cable for $45.2 billion | Reuters
This deal would face regulatory hurdles in my view.
Lenovo CEO says he can cut Motorola’s losses in just a few quarters | The Verge
Lenovo Projects End to Motorola Losses With China Phone – Bloomberg
““We will relaunch and reintroduce the Motorola brand back to China and other emerging markets,” Yang said in a phone interview. “We will compete in the premium market, but this is not enough, we will also compete in the entry level.” “
Nielsen Feels Digital Heat From Rivals – WSJ.com
The Promise of Chromecast and the Future of TV | Re/code
Marc Andreessen: Tech Is Still Recovering From A Depression | TechCrunch
Android’s ‘Open’ System Has Limits – WSJ.com
Cisco’s Growth Hit by Sagging Tech Demand – WSJ.com
Could Android apps save Windows Phone? — Tech News and Analysis
Markets
More Support for Gold: Charts Take Bullish Turn – Barrons.com
I am positive on Gold now, btw. I think it will benefit from a safe haven bid due to EM turmoil. “for the first time since December 2012, the Market Vectors Gold Miners exchange-traded fund (ticker: GDX) traded above its 200-day moving average (see Chart 1). That’s bullish.”
As Gold Climbs, Silver Is Likely to Follow – Barrons.com
OPEC says North Sea oil output to hit new lows – Telegraph
Robust demand tightening oil market, IEA says | Reuters
“Stronger-than-expected demand has drained oil inventories to the lowest level since 2008, tightening the market and defying predictions of a glut, the West’s energy watchdog said on Thursday. The International Energy Agency (IEA) said oil inventories in the developed world plummeted by 1.5 million barrels per day (bpd) in the last three months of 2013, the steepest quarterly decline since 1999.”
North America
U.S. budget deficit smaller than expected in January | Reuters
“The federal government ran $10.4 billion into the red last month, the Treasury Department said on Wednesday in a monthly statement. Analysts polled by Reuters expected a budget deficit of $27.5 billion.”
U.S. auto industry quality slips for first time in 16 years: survey | Reuters
What Can New Pilots Make? Near Minimum Wage – WSJ.com
What does your employer know about your health? – Feb. 12, 2014
Soft data not enough to derail QE cuts: Fed’s Bullard | Reuters
IMF Paper: No U.S. Manufacturing Renaissance – Real Time Economics – WSJ
Europe
ECB Considers Negative Deposit Rate – Real Time Economics – WSJ
Britain warns Scotland: Forget the pound if you break away | Reuters
“ritain will warn Scotland on Thursday it can’t keep the pound if it votes for independence, its boldest attempt yet to scuttle a nationalist bid to break the 307-year-old union with England. In the latest salvo of a choreographed campaign to keep Scotland in the UK, George Osborne will seek to play on Scottish fears of losing the pound to argue that secession would put Scots’ prosperity at risk, pushing them into a tempest of volatility.”
BBC News – Has the Treasury killed Salmond’s sterling-zone?
“Macpherson has underwritten not only Osborne’s opposition to currency union, but that of Labour’s Ed Balls (Nottingham High and Keble) and the LibDem’s Danny Alexander (Lochaber High – as it happens, a state school – and St Anne’s). Which implies not that a separate Scotland could not use the pound. But that it would have to do so in a wholly informal way, with no control over interest rates or regulation of banks or even the supply of adequate quantities of bank notes.”
ekathimerini.com | Greek unemployment rises to 28 percent, a record high
“Youth unemployment remained exceptionally high, hitting 61.4 percent in November of last year, according to ELSTAT.”
Australia
In Australia, Job Losses Spread Unevenly as Mining Boom Wanes – Real Time Economics – WSJ
Unemployment rate rises to 6% for first time in more than a decade | World news | theguardian.com
“Australia’s unemployment rate rose to 6% in January, official figures show, the highest level since July 2003.”
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