Bloomberg | The market Now - April 9, 2014: The news that drives the U.S. and global markets

THE MARKET NOW The news that drives the U.S. and global markets.

April 9, 2014 For more, visit Bloomberg.com/markets >>

Ally Financial Raises $2.38 Billion Pricing IPO at $25Ally Financial Inc., the auto lender rescued by the U.S. government during the 2008 financial crisis, raised $2.38 billion in its initial public offering after pricing the shares at the bottom of the proposed range. Read the full story Putin Lacks Beachhead in East Ukraine, Creating StalemateIt took Vladimir Putin just three weeks to annex Crimea. Figuring out what to do with eastern Ukraine might take him longer. With Russia at risk of the full force of economic sanctions, Putin will be content to choke Ukraine's economy and snarl its politics in the run-up to May 25 presidential elections. Read the full story Federal Reserve Plays Down Forecasts for Rate RiseThe Federal Reserve played down forecasts by some of its own policy makers that interest rates might rise faster than they previously predicted. Read the full story Read more news at Bloomberg.com >>

Sometimes, Cheaper Turns Out to be Better by Mark Gimein Bloomberg's Cristina Alesci and Leslie Picker report that the domain name registrar Go Daddy has chosen underwriters for a public offering later this year. Over the years, a lot of folks have criticized Go Daddy for advertising that is silly (certainly true) and sexist (yes). And The Market Now, despite being a longtime Go Daddy Operating Co. customer (more on this in a second) can't even begin to imagine what the heck the name means. Nonetheless, TMN welcomes this IPO. Here's why: In the early days of the Internet, there was one company authorized to register .com domain names. That was Network Solutions, and at first it was a government sanctioned monopoly. At the time, domain name registration ran about $70 a year for a domain, a very nicely profitable number for doing nothing but keeping records. Eventually this created a furor among folks who thought that handing tolls to a monopoly was not a good way to run the Internet, and the domain registration business was opened up to competition. Network Solutions was bought in 2000 by Verisign, Inc. for $21 billion. At the time, many observers believed that even though Network Solutions no longer had an official monopoly on domain name registration the "first mover advantage" would still make it the dominant player for many years. This turned out, fortunately, to be untrue. Verisign did keep one part of the monopoly -- a six-dollar-a-year fee it was allowed to charge all domain name registrars as a wholesale rate. Once the rest was deregulated, though, companies like Go Daddy quickly ate Network Solutions' lunch. Getting to market first with an over-priced product was not a sustainable business plan. It turned out that consumers had no particular attachment to the Network Solutions brand and would flock to competitors like Go Daddy to register domain names, and buy related services -- web hosting and the like. The Market Now is one of those consumers, having promiscuously registered domain names for himself, his blogs, businesses he thought of starting for about two minutes, and his infant son. Go Daddy's domain registration is probably not the cheapest out there, but at about $8.99 for a domain -- less if you search the Internet for a discount code -- it is cheap enough, and costs a lot less than folks once thought domain registration would cost. Network Solutions, meanwhile, was spun off from Verisign in 2003 and was last sold in 2011, for about $550 million . That's not nothing, but it's less than the $2.25 billion that Go Daddy was valued at the same year, and probably a lot less than Go Daddy will be worth after the IPO (if the IPO market holds up). The winner here, as it is in the textbooks, is the company that offers a good product for less money. With so many examples around of how how the invisible hand develops arthritis, it's nice to find one market (domain name registration) in which competition works as it should. Read Go Daddy Said to Pick Morgan Stanley, JPMorgan for 2014 IPO.

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THE MARKET NOW is brought to you from the desk of: Mark Gimein Companies and Markets Editor, Bloomberg.com mgimein@bloomberg.net Twitter: @markgimein

YouTube | VOAvideo has uploaded Pistorius Urged to Look at Police Photo of Steenkamp - April 9, 2014.

VOAvideo has uploaded Pistorius Urged to Look at Police Photo of Steenkamp Pistorius Urged to Look at Police Photo of Steenkamp VOAvideo South African runner Oscar Pistorius faced a tough cross-examination during his murder trial on Wednesday. The athlete broke down and sobbed after prosecutors showed a photo of the bloodied head of his girlfriend, Reeva Steenkamp. VOA's Pam Dockins has the story.

YouTube | Al Jazeera English has uploaded Toyota recalls over six millions vehicles and 2 other videos.

Al Jazeera English has uploaded Toyota recalls over six millions vehicles and 2 other videos    Play all   Toyota recalls over six millions vehicles Al Jazeera English Belgium crushes ivory stockpile Al Jazeera English Solar plane aims for round-the-world flight Al Jazeera English

YouTube | TheAlexJonesChannel has uploaded Feds Arrest And Beat Up Rancher's Son and one other video - April 9, 2014.

TheAlexJonesChannel has uploaded Feds Arrest And Beat Up Rancher's Son and one other video    Play all   Feds Arrest And Beat Up Rancher's Son TheAlexJonesChannel Nevada Rancher Under Siege By 200 Federal Agents: Full Interview TheAlexJonesChannel

CFTC | Press Releases - April 9, 2014: CFTC’s Divisions of Market Oversight and Swap Dealer and Intermediary Oversight Provide Conditional No-Action Relief with Respect to Swaps Trading on Multilateral Trading Facilities Overseen by Authorities Designated by European Union Member States.

April 9, 2014

CFTC’s Divisions of Market Oversight and Swap Dealer and Intermediary Oversight Provide Conditional No-Action Relief with Respect to Swaps Trading on Multilateral Trading Facilities Overseen by Authorities Designated by European Union Member States

Washington, DC — The Commodity Futures Trading Commission’s (CFTC) Divisions of Market Oversight (DMO) and Swap Dealer and Intermediary Oversight (DSIO) today announced the joint issuance of CFTC No-Action Letter No. 14-46 (No-Action Letter 14-46), replacing CFTC No-Action Letter No. 14-16 (No-Action Letter 14-16), which DMO and DSIO issued on February 12, 2014.

No-Action Letter 14-16 provided no-action relief for:

• Qualifying MTFs from the SEF registration requirement;
• Parties executing swap transactions on qualifying MTFs from the trade execution mandate; and
• Swap dealers and major swap participants executing swap transactions on qualifying MTFs from certain business conduct requirements.

Subsequent to the issuance of No-Action Letter 14-16, CFTC staff continued to engage in dialogue with the staffs of the European Commission and the Financial Conduct Authority of the United Kingdom, as well as with facility operators and market participants, concerning certain terms and conditions in No-Action Letter 14-16.

As a result of these conversations, and seeking to build upon the significant progress achieved to date towards harmonizing a regulatory framework for CFTC-regulated swap execution facilities (SEFs) and EU-regulated multilateral trading facilities (MTFs), CFTC staff today issued No-Action Letter 14-46, which generally tracks the conditional relief provided in No-Action Letter 14-16. However, No-Action Letter 14-46 features several notable clarifications, as well as new and amended conditions including, but not limited to, the following items:

• An MTF must report all swap transactions to a Commission-registered or provisionally-registered swap data repository as if it were a SEF, in compliance with parts 43 and 45 of the Commission’s Regulations, as a condition subsequent to qualifying for relief;
• An MTF must certify that it is subject to and compliant with regulations that require all MTF participants to consent to the MTF’s jurisdiction, thereby enabling the MTF to effectively enforce its rules;
• Qualifying MTFs must submit monthly reports to CFTC staff summarizing levels of participation and volume by U.S. persons; and
• Clarifications regarding the reporting obligations for counterparties to swap transactions executed on or pursuant to the rules of a qualifying MTF.

CFTC staff believes that the revisions included in No-Action Letter 14-46 are consistent with the commitments made by the CFTC in the CFTC-EC Path Forward statement and the spirit of international cooperation evidenced by that document.

Issuance of No-Action Letter 14-46 was preceded by issuance of CFTC No-Action Letter No. 14-31, which provides additional time for MTFs to comply with the conditions for obtaining relief under No-Action Letter 14-46, and for DMO to consider certifications made by MTFs pursuant to No-Action Letter 14-46. The short-term no-action relief provided by CFTC No-Action Letter No. 14-31 will expire on May 14, 2014.

Last Updated: April 9, 2014

Telegraph notes research on China's huge gold demand by GoldMoney's Macleod: GATA | THE GATA DISPATCH - April 9, 2014.

Telegraph notes research on China's huge gold demand by GoldMoney's Macleod

Submitted by cpowell on 04:16PM ET Wednesday, April 9, 2014. Section: Daily Dispatches

China 'Has More Gold Than Official Figures Show'

By Olivia Goldhill
The Telegraph, London
Wednesday, April 9, 2014

http://www.telegraph.co.uk/finance/commodities/10753182/China-has-more-g...

China could be holding even more gold than previously realised, according to Alasdair Macleod, a researcher at online precious metals trader GoldMoney.

Official figures from China Gold Association (CGA) show that the Asian superpower consumed 1,176 tonnes of gold in 2013, 41 percent higher than in 2012.

However, about 500 tonnes of gold from Chinese mines and scrap is unaccounted for by the CGA.

Mr Macleod believes the country holds more gold that the stated figures suggest, and in fact consumed 4,843 tonnes in 2013 alone. He raised his estimate after researching Chinese Gold Reports, where he said he found details of the amount of gold vaulted. He said the quantity of vaulted gold has been increasing steadily.

"Nobody had really any idea how much was going into the vaulting figures," Mr Macleod said. "The changes in the level of vaulted gold has been increased on a fairly consistent level almost at exactly the same rate as the increase in deliveries."

Increased levels of gold held by China match with the country's politics, according to Mr Macleod.

"It fits in with what appears to be Chinas geo-political strategy when it comes to gold," he said. "China, by having control of a large amount of gold, has leverage in the financial relationship with the West. Owning gold gives power to China over America," he said.

Martin Arnold, director-research analyst at ETF Securities, said that estimates of China's store of gold may well be too low.

"The evidence suggests that China is a very big consumer of gold with a gap in reporting for the last several years. It does point to some build up of stocks.

"China is the world's biggest producer of gold. Not only do they consume all the gold that is mined in the country but are also a net importer. 2013 was a record level -- we're talking several million ounces, to the extent where we're looking at about 35 million ounces in terms of the net gold import," he said.

Mr Arnold said that by owning gold, China diversified its reserves and so is less dependent on US treasuries.

"The US dollar over the past decade or so has been in a period of structural decline so when the public sector invests their holdings, they don't want to hold it all in US treasuries, which are necessarily dollar-based," he said.

China is one of the biggest holders of US treasuries in the world.

"China have got a large foreign exchange reserve with over L3.5 trillion invested around the world and so necessarily a large part of that goes into US treasuries," said Mr Arnold.

Owning a lot of gold to diversify investments means China is not beholden to the political decisions or monetary policy decisions from the United States, he said.

YOUTube | Al Jazeera English has uploaded US Latinos struggle against deportations - April 9, 2014.

Al Jazeera English has uploaded US Latinos struggle against deportations US Latinos struggle against deportations Al Jazeera English Since President Barack Obama took office, the US has forced two million people to leave the country, a number higher than under any other US president. Some who have been deported insist that they are US citizens and that the country is the only home they have ever known. Many risk arrest, injury or worse trying to make it back to the US. Al Jazeera's Adam Raney reports from Tucson in the US state of Arizona.

YouTube | Al Jazeera English has uploaded Inside Story - Pakistani justice: A dysfunctional system? and one other video - April 9, 2014.

Al Jazeera English has uploaded Inside Story - Pakistani justice: A dysfunctional system? and one other video    Play all   Inside Story - Pakistani justice: A dysfunctional system? Al Jazeera English Kenya clamps down on illegal immigrants Al Jazeera English

WSJ | Biggest Decliners Closing April 9, 2014.

THE WALL STREET JOURNAL Biggest Decliners Closing

Biggest Decliners 4:31 pm ET 04/09/2014 NYSE ISSUE VOLUME PRICE CHG % CHG Haverty Furniture (HVT) 261,382 $25.89 -2.09 -7.47 Alpha Natural Resources (ANR) 18,477,086 4.57 -0.31 -6.35 Walter Energy (WLT) 7,556,374 7.83 -0.52 -6.23 Centrais Eletricas Brasileiras ADS (EBR) 2,716,329 3.13 -0.20 -6.01 Quicksilver Resources (KWK) 2,786,675 2.76 -0.17 -5.80 Ashford Hospitality Trust (AHT) 9,035,005 10.58 -0.62 -5.54 Companhia Siderurgica Nacional ADS (SID) 8,685,791 4.20 -0.22 -4.98 Companhia Energetica de Minas Gerais-Cemig ADS (CIGC) 3,700 7.15 -0.35 -4.67 Diamond Offshore Drilling (DO) 3,558,973 47.69 -2.07 -4.16 Harte-Hanks (HHS) 263,501 8.39 -0.33 -3.78 Arch Coal (ACI) 8,693,576 4.99 -0.19 -3.67 Kingsway Financial Services (KFS) 89,923 5.20 -0.19 -3.53 Pacific Drilling (PACD) 465,809 9.95 -0.35 -3.40 American Realty Investors (ARL) 28,755 9.23 -0.32 -3.35 Aviv REIT (AVIV) 774,386 24.22 -0.75 -3.00 Sturm Ruger (RGR) 360,294 63.11 -1.91 -2.94 Genie Energy (GNE) 80,100 9.03 -0.27 -2.90 KCG Holdings (KCG) 440,813 10.04 -0.30 -2.90 Turkcell Iletisim Hizmetleri A.S. ADS (TKC) 515,925 14.09 -0.42 -2.89 Hershey (HSY) 2,921,287 98.91 -2.81 -2.76 Transocean (RIG) 6,490,585 40.89 -1.14 -2.71 Companhia Paranaense de Energia-COPEL ADS (ELP) 656,011 13.30 -0.37 -2.71 China Ming Yang Wind Power Group ADS (MY) 3,525,706 2.91 -0.08 -2.68 500.com ADS (WBAI) 332,759 36.70 -1.00 -2.65 Chico's Fas (CHS) 6,675,579 16.52 -0.45 -2.65

Nasdaq ISSUE VOLUME PRICE CHG % CHG ProShares UltraShort Nasdaq Biotechnology (BIS) 752,741 $17.80 -1.52 -7.87 Intuitive Surgical (ISRG) 2,583,620 456.64 -33.20 -6.78 WD-40 (WDFC) 279,712 72.75 -4.73 -6.10 Eagle Bulk Shipping (EGLE) 768,023 4.34 -0.25 -5.45 ProShares UltraPro Short QQQ (SQQQ) 5,627,280 54.31 -2.95 -5.15 China Information Technology (CNIT) 279,130 4.51 -0.22 -4.65 RCM Technologies (RCMT) 49,104 6.55 -0.27 -4.01 Take-Two Interactive Software (TTWO) 3,650,577 20.35 -0.82 -3.87 Atlanticus Holdings (ATLC) 3,716 2.28 -0.09 -3.80 VelocityShares Daily 2x VIX Short Term ETN (TVIX) 6,406,717 6.34 -0.24 -3.65 Apollo Education Group Cl A (APOL) 5,829,602 28.68 -1.03 -3.47 Hercules Offshore (HERO) 5,746,065 4.46 -0.16 -3.46 BioTelemetry (BEAT) 524,375 9.59 -0.34 -3.42 BIND Therapeutics (BIND) 84,254 10.78 -0.38 -3.41 PacWest Bancorp (PACW) 2,935,202 42.96 -1.51 -3.40 Big 5 Sporting Goods (BGFV) 278,202 15.69 -0.55 -3.39 Globus Maritime (GLBS) 35,100 3.95 -0.14 -3.38 Lincoln Educational Services (LINC) 176,772 3.77 -0.13 -3.33 Wayne Savings Bancshares (WAYN) 3,593 11.30 -0.35 -3.00 First Citizens Bancshares Cl A (FCNCA) 19,517 235.30 -7.22 -2.98 Sears Holdings (SHLD) 1,585,546 35.97 -1.02 -2.76 Veracyte (VCYT) 111,538 14.19 -0.40 -2.74 VelocityShares VIX Short Term ETN (VIIX) 52,786 55.32 -1.47 -2.59 Viasystems Group (VIAS) 6,578 12.17 -0.32 -2.56 RMG Networks Holding (RMGN) 12,300 4.60 -0.12 -2.54

NYSE Arca ISSUE VOLUME PRICE CHG % CHG ProShares Ultra Russell2000 Value (UVT) 2,517 $57.55 -3.85 -6.27 ProShares Ultra VIX Short-Term Futures ETF (UVXY) 3,990,108 56.22 -3.02 -5.10 Direxion Daily Japan Bear 3x Shares (JPNS) 2,041 31.14 -1.40 -4.30 Direxion Daily Small Cap Bear 3x Shares (TZA) 20,324,443 15.95 -0.70 -4.20 ProShares UltraPro Short Russell2000 (SRTY) 930,663 40.49 -1.76 -4.17 Direxion Daily Developed Markets Bear 3x Shares (DPK) 3,870 30.72 -1.27 -3.97 ProShares UltraShort Health Care (RXD) 2,808 22.86 -0.94 -3.95 Direxion DailyTechnology Bear 3x Shares (TECS) 147,633 18.81 -0.76 -3.88 ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (MORL) 677,725 21.12 -0.78 -3.56 ProShares UltraShort QQQ (QID) 8,518,716 58.13 -2.07 -3.44 Teucrium Wheat Fund (WEAT) 144,425 15.90 -0.57 -3.43 2xLeveraged Long E-TRACS Linked to Wells Fargo Business Development Co. Index 052441 (BDCL) 373,376 26.56 -0.94 -3.42 Direxion Daily S&P 500 Bear 3X Shares (SPXS) 2,446,070 30.61 -1.05 -3.32 PowerShares DB Commodity Double Short ETN (DEE) 2,509 29.20 -1.00 -3.31 ProShares UltraPro Short Dow30 (SDOW) 1,276,130 29.01 -0.99 -3.30 ProShares UltraPro Short S&P 500 (SPXU) 3,129,632 55.86 -1.88 -3.26 Direxion Daily Semiconductor Bear 3X Shares (SOXS) 75,529 26.63 -0.89 -3.23 Direxion Daily FTSE China Bear 3X Shares (YANG) 68,908 21.52 -0.70 -3.15 VelocityShares 3x Inverse Crude ETN linked to the S&P GSCI Crude Oil Index Excess Return (DWTI) 33,674 26.04 -0.84 -3.13 ProShares UltraPro Short MidCap400 (SMDD) 14,713 49.79 -1.51 -2.94 ProShares UltraShort Basic Materials (SMN) 13,635 31.33 -0.95 -2.94 Direxion Daily Mid Cap Bear 3x Shares (MIDZ) 65,639 16.51 -0.49 -2.88 ProShares UltraShort Russell2000 (TWM) 1,967,757 46.61 -1.37 -2.86 ProShares UltraShort Consumer Services (SCC) 3,351 18.18 -0.52 -2.79 Direxion Daily Junior Gold Miners Index Bear 3X Shares (JDST) 619,857 20.69 -0.58 -2.73

Composite ISSUE VOLUME PRICE CHG % CHG Delcath Systems (DCTH) 1,187,434 $3.73 -0.95 -20.30 ProShares UltraShort Nasdaq Biotechnology (BIS) 752,741 17.80 -1.52 -7.87 Haverty Furniture (HVT) 261,382 25.89 -2.09 -7.47 Intuitive Surgical (ISRG) 2,583,620 456.64 -33.20 -6.78 22nd Century Group (XXII) 583,375 2.83 -0.20 -6.60 Alpha Natural Resources (ANR) 18,477,086 4.57 -0.31 -6.35 Walter Energy (WLT) 7,556,374 7.83 -0.52 -6.23 WD-40 (WDFC) 279,712 72.75 -4.73 -6.10 Centrais Eletricas Brasileiras ADS (EBR) 2,716,329 3.13 -0.20 -6.01 Quicksilver Resources (KWK) 2,786,675 2.76 -0.17 -5.80 Ashford Hospitality Trust (AHT) 9,035,005 10.58 -0.62 -5.54 Eagle Bulk Shipping (EGLE) 768,023 4.34 -0.25 -5.45 Eaton Vance Ohio Municipal Income Trust (EVO) 12,540 13.25 -0.73 -5.22 ProShares UltraPro Short QQQ (SQQQ) 5,627,280 54.31 -2.95 -5.15 ProShares Ultra VIX Short-Term Futures ETF (UVXY) 3,990,108 56.22 -3.02 -5.10 IsoRay (ISR) 7,680,342 2.82 -0.15 -5.05 Companhia Siderurgica Nacional ADS (SID) 8,685,791 4.20 -0.22 -4.98 Perfumania Holdings (PERF) 8,744 6.54 -0.33 -4.80 Chanticleer Holdings (HOTR) 28,785 3.01 -0.15 -4.75 Companhia Energetica de Minas Gerais-Cemig ADS (CIGC) 3,700 7.15 -0.35 -4.67 China Information Technology (CNIT) 279,130 4.51 -0.22 -4.65 Prana Biotechnology ADS (PRAN) 1,532,319 2.13 -0.10 -4.48 Huttig Building Products (HBP) 5,429 4.57 -0.21 -4.39 Direxion Daily Japan Bear 3x Shares (JPNS) 2,041 31.14 -1.40 -4.30 First Internet Bancorp (INBK) 2,635 22.76 -1.00 -4.21   See All Decliners

Footnotes Includes common, closed end funds, ETFs, ETNs and REITS with prior day close of $2 a share or higher, with volume of at least 2,000. x - stock is trading ex-dividend Source: WSJ Market Data Group