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London gold fix injects 'synthetic supply' into market, Hathaway says
Submitted by cpowell on 07:59AM ET Friday, May 9, 2014. Section: Daily Dispatches
11a ET Friday, May 9, 2014
The daily gold price fixings in London may be serving mainly to inject into the market through bullion banks a "synthetic supply" of gold leased from central banks, the Tocqueville Gold Fund's John Hathaway tells Kitco News in an interview this week. The fix's archaic nature, Hathaway adds, is an advantage to its participating banks, which are always essentially short the metal. The price-setting process should be more transparent, he says. The interview is not quite 10 minutes long and can be heard at Kitco News here:
That truth was laid bare on Thursday, when Snapchat, the popular mobile messaging service, agreed to settle charges by the Federal Trade Commission that messages sent through the company's app did not disappear as easily as promised, Jenna Wortham reports.
Snapchat has built its service on a pitch that has always seemed almost too good to be true: that people can send any photo or video to friends and have it vanish without a trace. That promise has appealed to millions of people, particularly younger Internet users seeking refuge from nosy parents, school administrators and potential employers.
But the commission charged that there were several easy ways to save messages from the service, and in settling the accusations, the company agreed not to misrepresent the disappearing nature of its messages.
Twitter Insiders Sell After Lockup Expires| Three executives of the social network, including Ali Rowghani, its No. 2 executive, sold stock on Tuesday after restrictions were lifted on insider selling after the initial offering of stock.
Crimea celebrated the 69th anniversary of Victory over Nazi Germany in the Great Patriotic War (WWII) with some awe inspiring stunts from Russian aviation aces. Earlier Moscow celebrated May 9th on the Red Square with 11,000 troops, 149 vehicles and 69 warplanes.
The Bank of Korea's monetary policy board on Friday decided to hold the nation's benchmark interest rate at 2.50 percent - unchanged for the 12th straight month and in line with expectations. (May 9, 2014) Full Article
Chinese inflation slowed more-than-expected to an 18-month low in April, while the negative trend in producer prices persisted for the 26th straight month, giving leeway for the government to provide more stimulus to achieve its 7.5 percent growth target. Inflation eased notably to 1.8 percent in April from 2.4 percent in March, the National Bureau of Statistics said Friday. (May 9, 2014) Full Article
The Reserve Bank of Australia on Friday said the current accommodative monetary policy setting is likely to be appropriate for some time yet. In its quarterly statement on monetary policy, the bank said a degree of spare capacity will be present for much of the forecast period. Today, the central bank raised its growth outlook for June 2014 to 3 percent from 2.75 percent estimated in February. (May 9, 2014) Full Article
Standard & Poor's Ratings Services upgraded its rating outlook for Portugal as both economic and budgetary performance outpaced expectations, but maintained its credit rating for the nation at 'BB'. The outlook was revised to Stable from Negative, indicating that credit metrics of the nation are stabilizing and there is less than one-in-three probability of upgrade or downgrade. (May 9, 2014) Full Article
Germany's exports in March declined at the fastest pace since last May, and imports fell for the first time this year, as the Ukraine crisis and the slowdown in China weighed on demand. Defying expectations, exports fell 1.8 percent month-on-month in March, which was sharper than the 1.3 percent fall seen in February, data from Destatis revealed Friday. (May 9, 2014) Full Article
U.K. manufacturing output maintained growth momentum for the fourth consecutive month in March and robust exports took the visible trade gap to the lowest since December, reports published by the Office for National Statistics showed Friday. Manufacturing output gained 0.5 percent in March from February and exceeded the 0.3 percent rise forecast by economists. (May 9, 2014) Full Article
Broker Ratings Changes
FBR Capital Markets Lowers Comstock Resources Inc. (CRK) To Market Perform From Outperform With $27 Price Target
(May 9, 2014)
Todays WS Events
Baker Hughes Analyst Conference At 9:40 AM ET
Baker Hughes Incorporated (BHI) will hold its 2014 Analyst Conference on May 9, 2014, at 9:40 AM ET, in Tomball. To access the live webcast, log on at www.bakerhughes.com/investor (May 9, 2014)
E.W. Scripps Q1 14 Earnings Conference Call At 9:00 AM ET
E.W. Scripps Company (SSP) will host a conference call at 9:00 AM ET May 9, 2014, to discuss its Q1 14 earnings results. To access the live webcast, log on at http://www.scripps.com/ A call can be accessed by dialing (800) 611-1147 (US) or (612) 332-0634 (International). For replay a call, dial (800) 475-6701 (US) or (320) 365-3844 (International); passcode: 324284. (May 9, 2014)
Ralph Lauren Q4 14 Earnings Conference Call At 9:00 AM ET
Ralph Lauren Corp.(RL) will host a conference call at 9:00 AM ET May 9, 2014, to discuss its Q4 14 earnings results. To access the live webcast, log on at http://investor.ralphlauren.com A call can be accessed by dialing 517-623-4799. For replay a call, dial 203-369-1973; passcode: 2347. (May 9, 2014)
LONDON (MarketWatch) — U.S. stock futures trimmed losses ahead of the opening bell Friday, a session that will cap a choppy week marked by a retreat in tech stocks.
Deal news from Apple Inc. may be on the way, while two huge advertising firms called off their merger talks. The euro fell under $1.38.
Futures for the Dow Jones Industrial Average DJM4-0.04% fell 16 points, or 0.1%, to 16,494, and futures for the S&P 500 index SPM4-0.05% shed 1 point, or 0.1%, to 1,871. Futures for the Nasdaq-100 index NDM4-0.04% fell 4 points, or 0.1%, to 3,533.
The tech-heavy index on Friday may take its cue from Apple AAPL-0.91% , which is in talks to buy Beats Electronics for about $3.2 billion, The Wall Street Journal reported. Beats sells premium-sound headphones and speakers, and just launched a music-subscription service that could bolster Apple’s presence in that area. Beats was established in 2008 by rapper Dr. Dre and record producer Jimmy Iovine.
“The challenges that still remained to be overcome, in addition to the slow pace of progress, created a level of uncertainty detrimental to the interests of both groups and their employees, clients and shareholders,” the companies said in a joint statement late Thursday.
In premarket moves, shares of Rocket Fuel Inc. FUEL-23.23% tumbled 28%, stretching sharp losses made late Thursday after the digital ad company’s quarterly sales outlook missed expectations.
Investors will get a fresh take on U.S. labor-market conditions from the so-called JOLTS report from the Labor Department at 10 a.m. Eastern Time. While the pace of hiring and jobs openings have increased, that data may show that number of quits in March — an indicator of how willing workers are to trade job security for career advancement — remained below far below pre-recession levels. In February, there were 2.38 million quits and 4.17 million job openings.
Federal Reserve Chairwoman Janet Yellen, who finished two days of congressional testimony on Thursday, looks at the JOLTS report for trends underlying payroll growth.
Also due Friday was the U.S. Commerce Department’s report on March wholesale inventories, at 10 a.m. Eastern Time. Economists polled by Dow Jones Newswires expect growth of 0.5%, matching February’s increase.
Dallas Federal Reserve President Richard Fisher, a voting member of the Fed’s policy committee this year, is expected to give his perspective on the limitations of U.S. monetary policy at 12 p.m. Eastern Time in New Orleans.
The drop in U.S. stocks Thursday marked a “subdued close ... with concerns that [Russian President Vladimir] Putin’s apparent pullback on rhetoric will not be enough to stop a referendum in eastern Ukraine from taking place at the weekend, the ramifications of which could be significant,” said Richard Perry, market analyst at Hantec Markets, in a note.
Before the start of U.S. trade Friday, Asian stocks ended mixed after a lower-than-expected consumer-inflation reading from China. Stocks in Europe fell following a string of disappointing corporate updates. A day ago, the Stoxx Europe 600 XX:SXXP-0.51% hit a six-year high after European Central Bank President Mario Draghi said the central bank may be ready to cut rates next month.
The euro UK:EURO+1.26% extended its decline against the U.S. dollar in the wake of Draghi’s easing signal, trading at $1.3787, compared with $1.3851 late Thursday.
Among commodities, gold for June delivery GCM4+0.27% rose $5.40, or 0.4%, to $1,293 an ounce and June oil CLM4+0.36% gained 32 cents, or 0.3%, to $100.58.