The Banking and Strategy Initiative

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US Morning Report: ‘K-Nightmare’ on Wall Street

BHP Perfomance Show Lydden Hill 7th May 2012

BHP Perfomance Show Lydden Hill 7th May 2012 (Photo credit: R-Harrison)

A personal note of sorrow: I do not know how Dollar sympathisers play, but I now know that even my expertise does not help when they are looking for an easy target while losing their shirt in the speculation. The US too will be praying for a weaker Dollar thru the second half to ease the pain of a non existent recovery as consumers pay out scarce dollars to boost spending data.

While the dollar ticked down unidirectionally from 56.5 levels in the morning in India trading each short position still seems to engender an uptick and a sudden staying power that bleeds you while they continue losing anyway and while the trade will end below 56 levels many like me would have had to sacrifice the profit trade in shorting the dollar because of the targeted dumbrating of the currency markets.

Of course it is difficult to be an active analyst and commentator while trading but it is more because of market players not having the maturity than anything else. Knight Capital for example is still counting $44o million in losses and over 300 million trades canceled in just six scrips triggered by algorithms that disappointed investors and traders yesterday morning.

The daily jugglery of pain and gain

RBS in the meantime is closer to nationalisation in the UK though it has tried bravely to get rid of any future Criminal Liabilities in LIBORgate by sacking more staff as it reported another pre tax loss at GBP 100 mln adding provisions of GBP 125 mln for a systems failure and a GBP 135 mln provision for fines in mis-selling mortgage insurance to seniors and a GBP 50 mln in another settlement with FSA for  interest rate swaps mis represented to SME businesses

Of course  Europe is positive today despite problems of idle mines at BHP and falling commodity prices and a smaller profit from BNP among others that reported today. Spain 2 yr yields have plunged as marketmakers finally believe the ECB makes sense BHP charged $2.4B in impairment of Fayetteville shale assets because of the glut in Natural Gas Earlier in Q1 rio had paid $8.8B on trouble at Alcan, its Aluminium operations

US Jobs report in a couple of hours.


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This entry was posted on August 3, 2012 by in Financial Markets.


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