Break-ups are a lot like true loves: They never go smooth.
And apparently that's the path things took at Pimco, the fund group run by it legendary leader Bill Gross, who has tried to put this baby to bed more than once.
http://blogs.marketwatch.com/thetell/2014/03/20/more-troubles-for-pimco-in-wake-of-el-erian-exit/
The Ukraine is the sixth largest grain exporter in the world. At least that is what the market expected for this year. But given the current turmoil there now that remains to be seen.
But that's not the only possible headwind grains may face; dry weather in the Midwest, lower crop yields forecast for soybeans in Brazil might be just the tip of what could be much higher prices. Corn, beans and wheat prices are already up.
So don't doubt the drought
California needs Occidental much more than Oxy needs California; they just don't know it yet. These are the kinds of environmental lunacies that drive good businesses elsewhere. We view this bad news as good news; first off, it's temporary and, second, it's a buying opportunity in our view.
Finally, in the interest of full disclosure: we own Oxy and continue to add to it on
weakness.
.
http://www.bloomberg.com/news/2014-03-19/california-city-s-drilling-ban-slows-occidental-s-plan.html
Unlike Las Vegas what happens in China doesn't necessarily stay there.
That may be the fate of the Chinese currency if it weakens further. Concerns in the region about other currencies following suite to maintain their nation's export markets continue to trouble many in Asia.
So far this week the yuan has declined 1.2%, the biggest weekly drop since 1992.
http://www.reuters.com/article/2014/03/21/us-markets-global-idUSBRE96S00E20140321
Last year around this time the Cyprus crisis hit the headlines. Much of it focused on the financial aspect of the trouble. But on the back burner lurked an energy issue, Europe's heavy reliance on Russian energy.
:/www.futuresmag.com/2014/03/20/europe-needs-a-new-energy-supplier
What a difference a day makes. Interest rate-sensitive real estate and utilities ended down while the rising short end of the interest rate curve buoyed bank stocks as investors apparently tossed off concerns from yesterday's Fed speak.
The US dollar hit a three week high while UK 30-year debts gets dinged. Brent crude oil rose 60 cents to close at $106.45 a barrel. The S&P financial sector index finished up 1.7% and JP Morgan breached the $60 mark for the first time since early 2000 in an apparent case of how-quickly-they forget. Gold took its lead from the dollar closing slightly down at $1320, it's lowest level in three weeks.
No, it's not an ancient oracle, though he is getting on in years. He is Mr. Warren Buffett, the Omaha Hypocrite of Hypocrites.
He is at it again, cutting his taxes and telling the rest of us to: "Suck it up, cupcakes!"
You have to adore their terminology "efficient tax" moves. Buffett admits he prefers to own companies rather than invest in equities. What does that mean and how many of you can do that? And we thought that's what all America's small business owners who have to yearly visit the their tax proctologist do--own their business.
Though they may be hanging a bit lower at this stage of his life, one has to give him credit; he's got a pair and he doesn't mind putting them in your face. Russia has It Vladimir and we our Hypocrite of Omaha.
http://www.bloomberg.com/news/2014-03-19/buffett-graham-swap-is-latest-deal-to-limit-u-s-tax-take.html
Russian President Valadimir Putin just might have taken a page from the denizens of Wall Street, welcoming a rise in energy prices. According to Bloomberg, the Russian leader might looking after his own investments.
Expect the spin doctors from both sides to crank up their spinning presses.
http://www.bloomberg.com/news/2014-03-20/putin-is-investor-in-swiss-oil-trader-gunvor-u-s-treasury-says.html
If it gets much colder a new East-West Cold War could grab center stage. The Berlin Wall crumpled more than a generation ago, easing tension and proffering what was supposed to be a freer, gentler, kinder world.
Given the current impasse over the Crimea situation investors need never lose sight of the old maxim: What goes around comes around. If so, what are some of the economic consequences of such a new cold spell?
http://www.marketwatch.com/story/6-economic-consequences-of-a-new-cold-war-2014-03-19?pagenumber=2
Fake it until you make it is a saying nearly as old as what goes about comes about. And that--given it's new emphasis on qualitative rather than quantitative policy from the Federal Reserve-- roiled markets yesterday.
After all, so the assumption goes, quantitative numbers can be somewhat measured. But what's up with qualitative anything? The problem here is the quantative worshippers might be fooling themselves, believing their benchmark is the more objective of the two. It's also become the familiar beaten-down path.
Either way, investors' safest bet remains: the Fed is where it's always been--behind rather than out front of the curve. That's about as quantative and qualitative as it gets.
http://blogs.wsj.com/moneybeat/2014/03/19/analysts-react-you-have-to-read-this-statement-as-risk-off/
