Posts Tagged TARP
Citgroup Equity Offering Becoming A Correction Catalyst?
Posted by Belisarius in Markets, U.S. Housing on December 17, 2009
Asia closed negative today, Europe is trading also negative -0.5% on average.
After I started began to doubt my calls on TARP repayments as a potential correction catalyst the Citigroup equity offering has turn out to be full blown fiasco. The offering was priced yesterday at $3.15 per share, a 20+ percent lower the share was trading before the offering announcement. Treasury delayed sale of its stake because the $3.15 per share price is 10% lower from the price the Treasury acquired its stake. Bloomberg story: U.S. Delays Sale of Citigroup Stake as Shares Sell at Discount.
Holidays Coming
Posted by Belisarius in Commodities, Markets on December 15, 2009
Well, with Wells Fargo moving to repay TARP funds that chapter in the economic history will be closed. Citigroup succeeded in repaying yesterday.
I expected that move to repay TARP funds and serial stock offerings would bring some strain to the bank share prices (and even broad market), but nothing jet on that front. Yes, the financials underperformed in recent month(s), but I expected something more significant.
Same with REIT’s, the sector outperformed broad market yesterday, my short position was closed on a stop loss order. No luck for me in last few days. In general, nothing is moving in recent days (one thing I correctly foretasted), maybe it would be wise to close this year trading early and enjoy the holidays.
Large U.S GDP Revision
Posted by Belisarius in Markets on November 24, 2009
U.S. GDP growth has got revised to 2.8% from previous estimate of 3.5%. Although the previous number (conspicuously high) helped to propel the market to new highs, revision doesn’t seem to raise any worries as U.S. equity futures are pointing on a higher opening.
S&P/Case-Shiller Composite 10 edged higher 0.4% in September while &P/Case-Shiller Composite 20 rose 0.35%. Prices edging higher, but we have to keep in mind that these indexes are calculated as 3-month rolling averages and are released for September, thus large time lag. The more current measures of housing prices (Loan Performance index -0.4%; the Radar Logic index -3.2% and the Zillow.com index -0.1% in September) suggest that the prices are falling.
Friday Reading
Posted by Belisarius in Markets on November 20, 2009
Belisarius is overwhelmed with the work in his new company + he has traveled to Vienna yesterday, so he’s a little bit sidelined concerning the market action.
I will post only a few interesting articles in last couple days.
- Trichet Says ECB Will Withdraw Liquidity Gradually, Bloomberg
- Fed Makes Monitoring Bank Capital Foremost Concern, Bloomberg
- Fears of China property bubble, FT
- Wells Fargo Needs TARP Money More Than It Admits: Jonathan Weil, Bloomberg. Brilliant.
- BofA Merrill cuts ’10 global semiconductor growth view, Reuters
Lowering Budget and Increasing Taxes?
Posted by Belisarius in Markets on November 12, 2009
As reported yesterday, Japan’s machinery orders rose 10.5% vs. 4.1% consensus in September. Bloomberg story: Japan Machine Orders Rise More Than Expected; Recovery May Last. Off course it sparked optimism for the bulls. Today Japan’s October producer prices came out at -6.7% vs. 6% consensus. This was 10th month in a row with negative figure. Bloomberg story: Japan’s Producer Prices Fall 6.7%, 10th Monthly Drop. Japan government bonds rose. Maybe a preview of the U.S. developments.
Interesting story on the U.S. budget in the WSJ: White House Aims to Cut Deficit With TARP Cash. Disregarding the nonsense on TARP repayment decreasing the budget deficit, the article offers some insights on the U.S. budget for the next year.