Friday, March 16, 2012

Morning Journal-Part 3 on China + Germany fails to meet its own austerity goals


Economics
This Week’s Data


The March Philadelphia Fed manufacturing index came in at 12.5 versus expectations of 10.0 and February’s reading of 10.2.

The February consumer price index was reported up 0.4% versus estimates of up 0.5%; core CPI rose 0.1% versus forecasts of up 0.2%.
http://www.calculatedriskblog.com/2012/03/bls-cpi-increases-04-in-february.html

Other

Risks of a profit margin squeeze (short):
http://advisorperspectives.com/dshort/updates/Profit-Margins-and-Inflation-Risk.php

Latest data on federal tax receipts (short):
http://blog.yardeni.com/2012/03/us-federal-tax-receipts.html

Housing affordability reaches a new high (short):
http://mjperry.blogspot.com/2012/03/housing-affordability-reaches-record.html

There is no such thing as ‘a little’ inflation (medium):
http://www.bloomberg.com/news/2012-03-14/watch-bernanke-s-little-inflation-capsize-u-s-amity-shlaes.html

What the TIPS are telling us (short):
http://scottgrannis.blogspot.com/2012/03/tips-update-not-very-attractive.html

Politics

Domestic


How conservative is Rick Santorum (short):
http://www.powerlineblog.com/archives/2012/03/how-conservative-is-rick-santorums-record.php

Another whistleblower comes forward in the robosigning scandal (long):
http://www.zerohedge.com/news/terminated-cbo-whistleblower-shares-her-full-story-zero-hedge-exposes-deep-conflicts-impartial-

International

Part three of the analysis of the Chinese economy (medium):
http://www.nakedcapitalism.com/2012/03/satyajit-das-%E2%80%9Call-feasts-must-come-to-an-end%E2%80%9D-part-3-fake-goods-fake-growth.html

Germans fail to meet their own austerity goals (medium):
http://www.spiegel.de/international/germany/0,1518,820828,00.html

News on Stocks in Our Portfolios-courtesy of Seeking Alpha

Exxon in talks to divest Hong Kong power asset. Exxon Mobil (XOM) is in negotiations to sell its 60% stake in Hong Kong's Castle Peak Power to CLP Holdings (CLPHY.PK) - which already owns the other 40% - and China Southern Power Grid. RBS analyst Jenny Cosgrove estimates that the U.S. oil giant could receive up to HK$22B ($2.83B) for the stake. Any sale would be part of Exxon's strategy of divesting non-core assets.

Chevron's troubles in Brazil continue. Chevron (CVX) has filed a request to suspend production at the 61,500 bpd Frade field off the coast of Brazil after a "small new seep" of oil was detected in the area. Frade is the same field in which Chevron suffered a high-profile leak in November, which continues to cause the firm much legal and potentially monetary aggravation.

UPS still wants to buy TNT Express. UPS (UPS) has reiterated its plan to make an offer for TNT Express and intends to file for the approval of its bid documents to Dutch market regulator AFM by May 11, UPS said in an obligatory update. Despite TNT rebuffing UPS's €4.9B ($6.4B) offer, the firms remain in talks, although the latter is not expected to raise its bid due to TNT's poor results and the lack of a rival suitor.




Steve Cook received his education in investments from Harvard, where he earned an MBA, New York University, where he did post graduate work in economics and financial analysis and the CFA Institute, where he earned the Chartered Financial Analysts designation in 1973. His 40 years of investment experience includes institutional portfolio management at Scudder, Stevens and Clark and Bear Stearns. Steve's goal at Strategic Stock Investments is to help other investors build wealth and benefit from the investing lessons he learned the hard way.