After starting lower the Dow crawled up 4, decliners just ahead of advancers & NAZ lost pennies. The MLP index gained a fraction in the 453s & the REIT index slipped a fraction to 270. Junk bond funds were mixed while Treasuries inched higher. Oil slid lower & gold was even.
AMJ (Alerian MLP Index tracking index)
The Federal Reserve (FED) is investigating whether traders at the world’s biggest banks rigged benchmark currency rates, raising the risk that firms will be penalized for lax controls as regulators look for wrongdoing. The FED is among authorities from London to DC probing whether traders shared information that may have let them manipulate prices in the $5.3T-a-day foreign-exchange market to maximize their profits. The FED punished firms for internal-control lapses last year as it worked with state & federal authorities on cases involving Iranian sanctions & botched derivatives bets. The foreign-exchange inquiry looks at benchmark WM/Reuters rates used by companies & investors around the world. Those rates are determined by trades executed in a minute-long period called “the fix” at 4PM in London each day. By concentrating orders in the moments before & during the 60-second window, traders can push the rate up or down, known in the industry as “banging the close.” Banks, which had a good run last year, are having a tough time finding friends in 2014.
Banks Seek to Restrict Volcker Rule by Challenging Definition of Ownership
General; Motors is closer to issuing a div, the first since suspending the payout in Jul 2008, & knows investors are expecting one, according to the the CFO. “It’s clear to us that investors are anticipating a dividend,” Dan Ammann said yesterday at an event in advance of the North American International Auto Show. “We’re closer than we have been given all of the actions that have been taken.” GM is likely headed for its 16th straight qtr of profit. The company has improved its cash flow & has fewer outstanding preferred shares following its 2009 bankruptcy reorganization. The Treasury sold its remaining stake last month & Mary Barra is slated to become CEO this week as Dan Akerson retires. Ammann will become president of GM. Executives have said the company wants to maintain a “fortress balance sheet” that can withstand a sharp economic downturn, as well as return cash to shareholders. Investor optimism rose last year as the gov sold its stake & GM brought out 18 new or refreshed vehicles in the US, pushing the shares up 42%. GM has been pushing for increased operating margins in North America, stemming losses in Europe & boosting sales in China. The new GM stock has done well & is up a quarter today.
GM’s Ammann Says Closer to First Dividend Since Suspending Payout in 2008
This is a good day to take a nap. Nothing exciting is happening which is why a lot of news stories focus on Gov Christie & the bridge mess. Earnings are coming out this week & the ones from the big banks will be watched very closely.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking index)
Treasury yields:
U.S. 3-month |
0.03% | |
U.S. 2-year |
0.36% | |
U.S. 10-year |
2.84% |
| CLG14.NYM | ...Crude Oil Feb 14 | ...92.16 |  ...0.56 (0.6%) |
| GCF14.CMX | ...Gold Jan 14 | .......1,247.50 | ...0.80 | (0.1%) |
The Federal Reserve (FED) is investigating whether traders at the world’s biggest banks rigged benchmark currency rates, raising the risk that firms will be penalized for lax controls as regulators look for wrongdoing. The FED is among authorities from London to DC probing whether traders shared information that may have let them manipulate prices in the $5.3T-a-day foreign-exchange market to maximize their profits. The FED punished firms for internal-control lapses last year as it worked with state & federal authorities on cases involving Iranian sanctions & botched derivatives bets. The foreign-exchange inquiry looks at benchmark WM/Reuters rates used by companies & investors around the world. Those rates are determined by trades executed in a minute-long period called “the fix” at 4PM in London each day. By concentrating orders in the moments before & during the 60-second window, traders can push the rate up or down, known in the industry as “banging the close.” Banks, which had a good run last year, are having a tough time finding friends in 2014.
Banks Seek to Restrict Volcker Rule by Challenging Definition of Ownership
General; Motors is closer to issuing a div, the first since suspending the payout in Jul 2008, & knows investors are expecting one, according to the the CFO. “It’s clear to us that investors are anticipating a dividend,” Dan Ammann said yesterday at an event in advance of the North American International Auto Show. “We’re closer than we have been given all of the actions that have been taken.” GM is likely headed for its 16th straight qtr of profit. The company has improved its cash flow & has fewer outstanding preferred shares following its 2009 bankruptcy reorganization. The Treasury sold its remaining stake last month & Mary Barra is slated to become CEO this week as Dan Akerson retires. Ammann will become president of GM. Executives have said the company wants to maintain a “fortress balance sheet” that can withstand a sharp economic downturn, as well as return cash to shareholders. Investor optimism rose last year as the gov sold its stake & GM brought out 18 new or refreshed vehicles in the US, pushing the shares up 42%. GM has been pushing for increased operating margins in North America, stemming losses in Europe & boosting sales in China. The new GM stock has done well & is up a quarter today.
GM’s Ammann Says Closer to First Dividend Since Suspending Payout in 2008
General Motors (GM)
This is a good day to take a nap. Nothing exciting is happening which is why a lot of news stories focus on Gov Christie & the bridge mess. Earnings are coming out this week & the ones from the big banks will be watched very closely.
Dow Jones Industrials
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