Feb 14. Retail Sales slightly weaker than expected at +0.4%
–Moody’s cut european ratings (Italy, Spain, etc) and warned that France, UK and Austria might lose AAA ratings. Japan unexpectedly eased through further QE and will target 1% inflation rate. From WSJ: “In Tuesday’s meeting, the [BoJ] expanded that plan by ¥10 trillion, or about $130 billion. The facility, which includes low-cost loans, is now worth about ¥65 trillion, or $844 billion.”
–There was a buyer of 50k EDJ 9937p yesterday for 2.5 up to 3.25. (New position, open int +39k). Also a new buyer of 10k TYM 134c. Not that these buys could be related to pre-info on Moody’s… Unending liquidity injections by central banks can’t stop deterioration that even the rating agencies are being forced to acknowledge. Not good for commercial banks, and all at once, won’t be good for stocks.
–Energy trading on CME platform was halted yesterday due to a technical glitch (quote stuffing?). At the same time NYSE volume was the lowest (for non-holiday) in ten years, according to ZH. Are markets being damaged and final users driven away by algo trading? Good for CME?
–Difference between gov’t dealing with benefit programs and private sector? Pepsi put out a memo detailing cuts to matching for some 401K plans. Period.
