Chillin' out till it needs to be funded
Business Lyme – Apple Lyme – Lyme of Lymes
Even as Apple considers itself part of a lucky tribe creating investors that bought bonds for pennies in interest and conducted its WWDC safely with Jonathan Ive releasing a new range of Android savvy new OS and new generation iMacs, iPhones and iPads, one is forced to pen this because one is not sure it would keep its significance except as a ponzi scheme for the sponsoring tribe of investors who were taken for their interest in Apple instead in the six days of trading seen in the debt. As of now I am unable to devote more time to the technological prowess either of Google or Apple and the future of the Cloud and Google and Apple but it seems the tax amendments to bring global cash from US Corps back to the USA is also likely to end up in winded up honors for representation in a gridlocked Congress. As FT Fast reports, Apple cost its sponsor investors $1.5B in 6 days, more than $300 mln in the 3 year issue, and another $300 mln in the 10 year issue as well
Just a note thus to remind my readers and me, that this was an important event in once history Apple’s corporate redux in borrowing at the lowest rate available only to find its just less than $20 bln of bonds raised, trading at much higher yields in the week after, showing again that my colleagues at the big banks are facing more investigations and scars on their body of work are showing too often before Apple ventures with its remaining 5 tranches of debt or that of any other corporate trying to make do with investor hubris at this turnabout in market trend.
Trading Lymes – Economic lymes and Currency lymes
Investors are also looking to define their market exits to get more cash back into their portfolios and probably looking at higher yields for debt investments still in HY(Junk) and investment grade markets as US yields rush to catch back the “significant” return for financial markets including banks which continue to suffer from decreasing NIMs for liquidity reasons despite the rising US yields.
Around the world in other devolutions of investor confidence, Aussie is enjoying its depreciation earlier we hoped ranged to 95 cents but rappelling on after weak housing data. Carney started this week in London as BoE chief, and while market speculation is ramant, he is not looking like a sucker for extra liquidity esp as we think there are no negative edges in that economy right now, the Pound receding from term highs at 1.55. The UK is not printing 100 year bonds at this time and the 10 year bonds stoked up to a 2.365% yield from the 1.7% last time as more wonder about things other than injection of liquidity
India data / rupee
Indian CPI and Industrial production remained uninspiring at 9.1% and 2.4% (should we have just that flip the switch here? only i woud not think 2.4% CPI is any effective growth prospect for producers at all) but the RBI stepped in to ssave the honor of the Rupee from 58.98 at its low, closing around the mean day move for Asian currencies instead at 58.5
Israel data / Dealtax
Israeli Trade Data confirmed a 10% contraction in both exports and imports probably because of business conditions in its neighbours and the Big Brother is watching scheme backfired but not for the Reuters reporter on whom fame has come calling. On the Israel situation, though the CBI said differently, it seems to be start of a big scare as exports make 40% of their GDP and the 9% appreciation in the currency is not helping.
Apparently a yearbook entry for the state of israel is th return of innovation as google bought up Waze and the yearbook entry will note how investors were all overseas and cost the state all excet $55 m in taxes. Go figure. None of the 40% exports to our nowledge include patents or intellectual services though Haifa remains a big iBM center