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Aug 6, 2013

News Analysis Washington Steps Warily On Housing : NYT: ALERT FGC BOLSA - FGC FINANCIAL MARKETS AUGUST 06, 2013.



Compiled: August 6, 2013 10:08:20 PM

News Analysis

Washington Steps Warily On Housing
Efforts to change the current system for financing the American dream of owning a home will be difficult, because Americans like inexpensive mortgage loans.

Jan Skoyles: The nature of gold demand is changing: GATA | THE GATA DISPATCH AUGUST 06, 2013.

Jan Skoyles: The nature of gold demand is changing

10:11p ET Tuesday, August 6, 2013

Jan Skoyles, research director for The Real Asset Co. in London, summarizes her recent studies of the various components of what passes for the gold market. Skoyles concludes:
"The gold price is not determined by demand and supply of physical gold. Instead it has become the victim of a highly speculative paper market where financial instruments have been created to derive benefit from the inherent desire felt by investors to own, trade, and punt gold.
"The nature of gold demand is changing. As Eastern nations and emerging economies take their place on the global economic stage, their investment decisions will also make an impact on markets. These countries do not wish to hold these paper products when they can own physical gold instead."
Skoyles' commentary is headlined "The Nature of Gold Demand Is Changing" and it's posted at The Real Asset Co.'s Internet site here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

John Browne: What's in the vault?: GATA | THE GATA DISPATCH AUGUST 06, 2013.

John Browne: What's in the vault?

9:50p ET Tuesday, August 6, 2013

John Browne of Euro Pacific Capital, Peter Schiff's shop, today gets pretty explicit, seemingly for the first time, about surreptitious intervention in the gold market by central banks. If Schiff, predicting in his many television and radio appearances the collapse of the world financial system and the renaissance of gold, has ever acknowledged the possibility that the gold market may be less than free and transparent it has escaped GATA's notice. Does Browne's commentary signal a little more awareness in Schiff's thinking or does it signal that Browne's days at Euro Pacific are numbered? In any case his commentary is headlined "What's in the Vault?" and it's posted at GoldSeek here:
And at 24hGold here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

NYT: ALERT FGC BOLSA - FGC FINANCIAL MARKETS AUGUST 06, 2013: 2 Fed Presidents Hint Tapering of Stimulus Could Begin Next Month



Compiled: August 6, 2013 07:35:52 PM

2 Fed Presidents Hint Tapering of Stimulus Could Begin Next Month
Presidents of two Federal Reserve banks indicated that the end of qualitative easing might come in early fall — depending, of course, on how the economy fares.

RTAmerica August 06, 2013: Ex-Gitmo guard: We were told not to treat inmates as humans

CNBC Top News and Analysis August 06, 2013

CNBC Top News and Analysis

CNBC Latest Stories August 06, 2013.


NYT - International Herald Tribune Global Update August 6, 2013: U.S. and Britain Withdraw Personnel from Yemen

August 6, 2013
Compiled 20:45 GMT

Global Update


U.S. and Britain Withdraw Personnel from Yemen

The measures followed a disclosure by American officials that the United States had intercepted electronic communications signaling a possible attack by an affiliate of Al Qaeda.

Meeting May Decide Fate of Obama-Putin Visit

Secretary of State John Kerry and Secretary of Defense Chuck Hagel planned to meet in Washington this week with their Russian counterparts.

Iran's New President Says Nuclear Talks Could Succeed

In a series of Twitter messages, the president, Hassan Rouhani, also said Western sanctions were counterproductive.
Dining & Wine

Video: Anita Lo's Shanghainese Feast

Anita Lo, chef and owner of Annisa, in Manhattan's West Village, visits Flushing, Queens, to sample dishes that have inspired her cooking.

Op-Ed Contributors

Egypt's Economy of Dependence

So long as foreign donors keep coming to the rescue, Cairo can avoid carrying out much-needed economic reforms.

Rebels Gain Control of Government Air Base in Syria

The victory, said to have been led by two foreign men who carried out a suicide attack, was bound to boost the morale of an insurgency that has faltered.

Across Forbidden Border, Doctors in Israel Quietly Tend to Syria's Wounded

As the Syrian civil war rages, scores of Syrian casualties have been discreetly spirited across the hostile frontier for lifesaving treatment in Israel, an enemy country.

Turkish Court Hands Down Prison Sentences in Coup Plot

A local court sentenced dozens of defendants, including a former military chief of staff, to long prison terms for their role in plotting to overthrow Prime Minister Recep Tayyip Erdogan.

In Loeb Rejection, Sony Cites Poor I.P.O. Record for Unit

In rejecting a proposal by hedge fund manager Daniel S. Loeb, Sony's chief executive acknowledged the times when companies have regretted publicly listing part of a subsidiary.

A Mogul Gets a Landmark in the Capital

Jeff Bezos, the founder and chief executive of Amazon, has kept a low profile in politics and has said almost nothing about his interest in newspapers, except that he reads them.

The Guiding Hand Behind a Thriving Steel Maker

Wolfgang Eder has led the Austrian company Voestalpine since 2004, pushing innovation as the key to sustained profitability in trying times.

Credit Agricole's Profit Soars After Bank Leaves Greece

The French bank said its second-quarter profit rose more than 12 times, to $922 million, from the period a year earlier, after it sold Greek and Italian units that had weighed on its results.

Giants Stay Home for Training Camp

The Giants are part of the trend of N.F.L. teams holding training camp at home at their permanent facilities rather than on a remote campus, but either location has its pros and cons.

Suspension Leaves Many Questions for Now and Later

Some questions, and answers, about the status of Yankees third baseman Alex Rodriguez, who was suspended by Major League Baseball on Monday.

Broad Decline in Obesity Rate Seen in Poor Young Children

A new report by the Centers for Disease Control was the clearest evidence yet that the obesity epidemic may be turning a corner for 2- to 4-year-old children from low-income families.

Fort Hood Defendant Says 'I Am the Shooter'

Maj. Nidal Malik Hasan, who is representing himself, delivered an opening statement on Tuesday as his long-delayed court-martial began.
Op-Ed Columnist

Striking Olympic Gold

The Winter Games in Sochi present a prime opportunity for the world to weigh in on Russia's anti-gay laws.

Terrorism and the Embassies

The closing of American embassies after an Al Qaeda threat is reasonable, but it is not a long-term solution.

DealBook P.M. Edition August 06, 2013: Justice Sues Bank of America Over Mortgage Securities

Tuesday, August 6, 2013
Justice Sues Bank of America Over Mortgage Securities
Justice Sues Bank of America Over Mortgage Securities The government accuses the bank of defrauding investors by vastly underestimating the quality of some $850 million worth of mortgage-backed securities.
For the latest updates, go to »

Billionaires' Battle Over LightSquared Breaks Into the Open The hedge fund tycoon Philip A. Falcone accused the satellite television mogul Charles W. Ergen of colluding to prevent his company LightSquared from emerging out of bankruptcy.
After Tourre Decision, UBS Pays $50 Million to Settle ACA Management provided UBS with about $23 million in upfront cash payments related to the creation of a mortgage security. UBS pocketed the $23 million rather than sweeping it into the security and failed to disclose it, making it an "undisclosed fee," according to federal regulators.
Preet Bharara, the United States attorney for the Southern District of New York, spoke during a news conference after the indictment of SAC Capital Advisors.
SAC Prosecutor Hits the Media Trail Preet Bharara, the United States attorney in Manhattan, discussed why his office indicted the hedge fund SAC Capital Advisors and not its owner, the billionaire Steven A. Cohen.
Kazuo Hirai, the chief executive of Sony.
In Loeb Rejection, Sony Cites Poor I.P.O. Record for Unit In rejecting a proposal by hedge fund manager Daniel S. Loeb, Sony's chief executive acknowledged the times when companies have regretted publicly listing part of a subsidiary.
Pension Reform Could Disrupt Investment Funds Shifting more responsibility to the private sector would cause some unintended consequences by cutting off an important source of financing for venture capital and private equity, writes Victor Fleischer in the Standard Deduction column.
Standard Chartered's First-Half Profit Fell 24% The British bank Standard Chartered reported that profit fell 24 percent, to $2.1 billion, in the first half of the year, as the firm took a $1 billion charge related to its operations in South Korea.
Credit Agricole's Profit Soars After Bank Leaves Greece The French bank said its second-quarter profit rose more than 12 times, to $922 million, from the period a year earlier, after it sold Greek and Italian units that had weighed on its results.
Sony Brush-Off Leaves Daniel Loeb With Few Options There are some encouraging signs for the hedge fund tycoon: Even after the latest sell-off, Sony shares are still 8 percent higher than when he started his campaign, notes Peter Thal Larsen of Reuters Breakingviews.
Carlyle Group and Tesla Motors report quarterly earnings. As does Mondelez, which investor Nelson Peltz has pushed to be acquired by PepsiCo.
For the latest updates, go to »

Quotation of the Day
"Today's filing marks the latest step forward in the Justice Department's ongoing efforts to hold accountable those who engage in fraudulent or irresponsible conduct."
Attorney General Eric H. Holder Jr. , on the Justice Department's lawsuit against Bank of America

Wall Street at Close Report by MarketWatch August 06, 2013.

U.S. stocks fall as Fed talks timing of taper

By Kate Gibson, MarketWatch 
NEW YORK (MarketWatch)U.S. stocks extended losses into a second day Tuesday as Federal Reserve official Charles Evans said the economy should be able to shoulder reduced Fed asset purchases later this year. 

“It’s more of this taper tempest that we seem to go into. The market gets a little confused; it seems fine as long as the talk around taper is around data, but it gets flustered when you talk about the calendar,” said Jim Dunigan, managing executive for investments at PNC Wealth Management. 

Bloomberg Image
Charles Evans, president of the Chicago Fed.
“There appears to be a lot on our plates as we get into fall season, with budget talks, a new Fed chair and the debt ceiling, which might lead the market to churn here a bit,” said Dunigan, who added that the market has reached an inflection point, given its “fairly significant upside performance,” with the S&P 500 up 19% so far this year.
After falling 139 points, the Dow Jones Industrial Average DJIA -0.60%  shed 93.39 points, or 0.6%, to end at 15,518.74, with International Business Machine Corp. IBM -2.31% leading the decline that included 24 of the Dow’s 30 components.
IBM’s IBM -2.31%  shares fell 2.3% after the computer-services company reportedly said U.S. employees in its hardware unit would take a week furlough with reduced pay in August and after Credit Suisse downgraded the tech giant to underperform from neutral.
The S&P 500 index SPX -0.57%  fell 9.77 points, or 0.6%, to 1,697.37, with materials pacing broad sector declines. The Nasdaq Composite COMP -0.74%  shed 27.18 points, or 0.7%, to 3,665.77.
For every stock rising, roughly three fell on the New York Stock Exchange, where 658 million shares traded. Composite volume cleared 3.1 billion.
Treasury prices were little changed, with the yield on the benchmark 10-year note 10_YEAR +0.30%  holding steady at 2.64%.
The dollar DXY -0.30%  fell against the currencies of major U.S. trading partners, including the Japanese yen USDJPY -0.59%  and the euro EURUSD +0.38% .
Crude-oil futures CLU3 -1.03%  declined $1.26, or 1.2%, to $105.30 a barrel and gold futures GCZ3 -1.45%  slid $19.90, or 1.5%, to $1,282.50 an ounce on the New York Mercantile Exchange.
Data showed Tuesday that the U.S. trade gap narrowed in June to $34.2 billion from $44.1 billion in May, coming in below expectations of $43 billion. Separately, job openings rose to 3.94 million in June from 3.91 million in May, the U.S. Department of Labor reported

Three undervalued stocks ready to rally

Stock bargains are growing scarcer. One way to find relative bargains is to search among companies that have lagged behind the market’s recent rally, but which look likely to catch up in coming quarters. Jack Hough of Barron's has details. Photo: Getty Images. 

“If exports are improving, things in Europe seem to be getting better, so maybe it’s coming out of recession, and maybe China isn’t as bad as the headlines would suggest,” said PNC’s Dunigan.

Moving issues

Results from retailers also disappointed investors, with American Eagle Outfitters Inc. AEO -12.02% sliding 12% a day after the teen-apparel retailer slashed its second-quarter outlook.
CVS Caremark Corp. CVS -2.81%  dropped 2.8% after the provider of prescription drugs cut the top end of its 2013 adjusted earnings target.
J.C. Penney Co. JCP -3.91%  retreated 3.9%.
Bucking the negative trend, Fossil Group Inc. FOSL +17.81%  rose nearly 18% after the fashion-accessories supplier reported better-than-expected results and raised its 2013 earnings forecast. Inc. AMZN -0.08% CEO Jeff Bezos said late Monday he’s buying the newspaper-publishing business of the Washington Post WPO +4.27% for $250 million. Shares of the Post, 28% of which is owned by Warren Buffett, gained 4.3%.

Fed timing

Evans, president of the Chicago Fed, expects growth in the second half of the year to pick up to an annual rate of 2.5% and climb above 3% next year. The central bank could then taper its asset purchases in several stages, and likely end them by mid-2014, said Evans, who is a voting member of the Federal Open Market Committee.
“We will hear more of this type of talk from Fed members as they do their verbal best to soften the market impact of a growing likelihood of a fall taper,” emailed Peter Boockvar, chief market analyst at the Lindsey Group
Evans spoke to reporters in Chicago after Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, told Market News International the Fed could start curtailing its bond-buying program at any of the three remaining FOMC meetings this year.
U.S. stocks finished mostly lower on Monday after a better-than-expected report on services-sector growth and remarks by Dallas Fed Bank President Richard Fisher that the central bank is closer to tapering its bond purchases. 

Kate Gibson is a reporter for MarketWatch, based in New York.

Wall Street at Close Report by CNBC August 06, 2013.

Stocks log worst day since June on Fed jitters, S&P ends below 1700

Stocks closed near session lows Tuesday, with major averages logging their biggest declines since June, after two Federal Reserve President said the Fed could begin tapering its easy-money program as early as September.
"This week has been pretty slow so far, but whenever that word 'taper' is put out there, it scares the market," said Joe Bell, senior equities analyst with Schaeffer's Investment Research.
(Read more: Wien: Government should spend more and taper less)
Name Price Change %Change
DJIA Dow Jones Industrial Average 15518.82
-93.31 -0.60%
S&P 500 S&P 500 Index 1697.37
-9.77 -0.57%
NASDAQ Nasdaq Composite Index 3665.77
-27.18 -0.74%

The Dow Jones Industrial Average tumbled nearly 100 points, dragged by IBM and Hewlett-Packard.
The S&P 500 finished below its 1,700-mark and the Nasdaq snapped a five-day win streak. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, ended above 12.
All key S&P sectors closed in the red, led by materials and financials.
"You stay away from a dull market [because] there's very little money to be made," said Art Cashin, director of floor operations at UBS Financial Services. "You look for opportunity or news changes, so you need some volatility to inspire a little extra volume."
Where to invest now: Fulton
Susan Fulton, FBB Capital, shares the best places to put your money; including Qualcomm, PetSmart, and TJX.
Atlanta Fed president Dennis Lockhart said the initial taper in the central bank's asset purchase program could start at any of the three remaining Federal Open Market Committee meetings this year. Lockhart added he was not disappointed by the July unemployment report and said he'll be watching data closely for "the next few weeks" to see if the economy is on track for faster growth. Chicago Fed President Charles Evans also echoed Lockhart's earlier comments, saying the central bank will likely reduce its stimulus program later this year. Evans is typically among the most dovish policymakers. (Read more: Fed outlier! No taper before year-end: Strategist) The government auctioned $32 billion in 3-year notes at a high yield of 0.631 percent. The bid-to-cover ratio, an indicator of demand, was 3.21, versus a recent average of 3.44. Among earnings, Michael Kors spiked higher after the luxury retailer posted earnings that nearly doubled, thanks to gains in Europe and roll-out of shops within department stores. Fossil surged after the fashion accessory maker posted better-than-expected earnings and lifted its full-year outlook. Meanwhile, American Eagle Outfitters tumbled after the teen apparel retailer said its second-quarter profit will likely be less than half of what Wall Street was expecting, citing weak sales and lower margins. Rivals Abercrombie & Fitch and Aeropostale also declined. Disney, 21st Century Fox, Zillow and Office Max are among notable companies slated to post results after the closing bell. So far, nearly 85 percent of S&P 500 companies have reported results this quarter, with 67 percent of companies topping earnings expectations and 55 percent beating revenue forecasts, according to the latest data from Thomson Reuters. If all remaining companies report earnings in line with estimates, earnings will be up 4.3 percent from last year's second quarter. Bank of America traded lower after the U.S. Justice Department said it had filed a civil lawsuit against the financial giant for what government lawyers said was a fraud on investors involving $850 million of residential mortgage-backed securities. Washington Post soared after founder Jeff Bezos agreed to buy the publishing company's newspaper assets for $250 million. IBM slipped after Credit Suisse downgraded the tech giant to "underperform" from "neutral" and cut its price target on the Dow component to $175 from $200, saying organic growth would be challenging in the future. On the economic front, the U.S. trade deficit fell 22.4 percent to $34.2 billion in June, narrowing to its lowest level in more than 3-1/2 years, according to the Commerce Department. Economists polled by Reuters had expected the trade deficit to narrow to $43.5 billion.
In Europe, shares were slightly higher following reports that showed German industry orders beat forecasts in June to record their biggest rise since October and British manufacturing grew much more strongly than expected. The positive economic news pushed gold prices to a 2-1/2 week low to below $1,300 an ounce. Most gold miners including Yamana Gold and Iamgold tumbled sharply. Meanwhile Japan's benchmark index reversing earlier losses to rally 1 percent as the yen weakened, while the rest of Asian stocks were mixed in choppy trade. Australia's benchmark index was little changed after the Reserve Bank of Australia cut interest rates by 25 basis points to a record low of 2.5 percent, as widely expected. It marks the eighth rate cut since November 2011 when the central bank first acknowledged a growth slowdown as the country's decade-long mining boom began to fade.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: