Thursday, July 10, 2014

Friday July 11 Housing and Economic stories


China Metal Probe Weighs on Copper Outlook - (online.wsj.com) Hedge funds and other money managers are increasing their bets against copper, according to U.S. data, amplifying pressure on prices following allegations of fraudulent metal-backed financing in China. The wagers are likely to further weigh on the outlook for one of the world's most heavily traded metals, as the effects of an official probe on stockpiles in the eastern Chinese port of Qingdao continue to ripple across global markets. The port's operator has confirmed that Chinese authorities are investigating allegations of fraud relating to stockpiles of metals, though the government hasn't commented publicly. Data from the U.S. Commodity Futures Trading Commission issued Friday showed hedge funds, institutional investors and other large speculators increased their short positions in New York copper futures and options in the week ending Tuesday to 29,063 contracts, compared with 25,734 a week earlier and 21,802 three weeks ago. The CFTC publishes such data on a weekly basis.
The rise extends a buildup of copper shorts since early June, which had snapped four straight weeks of decline. Long positions have fallen to 28,750 contracts in the latest CFTC report, compared with 42,800 in late May. "These investigations are a threat to the copper price," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago, which manages $66 billion. "There's a great deal of shadow inventory that's not being calculated and it could hurt the prices when it hits the market."

Stocks are ‘dangerously overvalued,’ M&A deals suggest - (www.marketwatch.com)  Here’s one sign a significant stock market decline might occur sooner rather than later: the rapid acceleration of recent merger and acquisition activity. This past week saw news of another big deal, led by medical-device maker Medtronic’s announcement of its $43 billion bid to acquire rival Covidien. At the current pace, M&A deals could reach $3.51 trillion this year, the most since 2007, according to data provider Dealogic. It wasn’t a fluke that a surge in M&A activity coincided with that year’s market top, according to Matthew Rhodes-Kropf, a professor at Harvard Business School and an expert in the field. “Each of the last five great merger waves on record” — going back more than 125 years — “ended with a precipitous decline in equity prices,” he says. Some experts have found that merger activity surges when stocks are richly priced, at least in part because companies can use their inflated shares to pursue acquisitions.

Iraqi military facing ‘psychological collapse’ after losses, desertions  - (www.washingtonpost.com) The 300 U.S. advisers authorized to assist the Iraqi security forces will find an army in crisis mode, so lacking in equipment and shaken by desertions that it may not be able to win back significant chunks of territory from al-Qaeda renegades for months or even years, analysts and officials say. After tens of thousands of desertions, the Iraqi military is reeling from what one U.S. official described as “psychological collapse” in the face of the offensive from militants of the Islamic State of Iraq and Syria (ISIS). The desperation has reached such a level that President Nouri al-Maliki is relying on volunteers, who are in some cases receiving as little as a week’s military training, to protect his ever-shrinking orbit of control.

Judge Who Sentenced Saddam Hussein To Death Has Been Executed By ISIS, Local Media Reports  - (www.zerohedge.com) Back in 2006, after the second US invasion of Iraq culminated if not with the discovery of the WMDs (which were the pretext for the invasion in the first place), but the unearthing (literally) and kangaroo court trial of Saddam Hussein, the US was quick to announce "mission accomplished." Recent events have made a mockery of that claim, however what is truly the straw that broke the back of poetic justice, to mix metaphors, are reports from local media that as part of its blitz-campaign to take over northern Iraq, ISIS found and the promptly executed Rauf Rashid Abd al-Rahman, the judge who sentenced Saddam to death: a death which to many was the crowning moment of the second US invasion of Iraq, and the confirmation of successful US foreign policy. It goes without saying that if true, the murder of the man who indirectly did the US bidding in slamming the book shut on the Saddam regime (and with it US claims of Iraqi "liberation") and was responsible for Saddam's death, means the last "Mission Accomplished" posted can now be safely taken down.

The US Healthcare System: Most Expensive Yet Worst In The Developed World - (www.zerohedge.comOne month ago we showed that when it comes to the cost of basic (and not so basic) health insurance, the US is by far the most expensive country in the world and certainly among its "wealthy-nation"peers. It would be logical then to think that as a result of this premium - the biggest in the world - the quality of the healthcare offered in the US among the best, if not thebest, in the world. Unfortunately, that would be wrong and, in fact, the reality is the complete opposite: as a recent study by the Commonweath Fund, looking at how the US healthcare system compares internationally, finds, "the U.S. fails to achieve better health outcomes than the other countries, and as shown in the earlier editions, the U.S. is last or near last on dimensions of access, efficiency, and equity." In other words: most expensive, yet worst in the developed world.





No comments: