'Castrate Capitalism' Vs. Fixing the Problem

Wake Up....Global mkts under pressure. Gold up, Oil down as recent comments by the Saudi's raise doubts over the ability of anyone to agree to freeze output......Earnings season is upon us and concern continues to mount....Overnight Christine Lagarde - IMF (International Monetary Fund) Managing Director sounding alarm bells about the state of the global economy..........trying to balance her statement to sound somewhat positive - she says that

'while we have growth and are not in crisis mode - the recovery remains far too slow and too fragile and RISKS are INCREASING'........so many people 'are not feeling it...'

Couple that with Boston's Fed Pres - Eric Rosengren - who said

"If, as I expect the economy data continue to show a moderate recovery, it will likely be appropriate to resume the path of gradual tightening sooner than is implied by financial-market futures,"

And that Wall St is 'mistaken' about the timing and direction of rates ( here we go again with the inmates running the asylum...)..... Back up one min, won't you.....'economic data continuing to show moderate recovery'? ....OK? And we have the perfect recipe for RISK OFF.....

US futures are getting smashed...down 19 pts in early pre-mkt trading...sending the S&P future down and thru 2040......(must be all that good news......)

Yesterday the gov't reported that Factory orders for manufactured goods in February FELL 1.7%, marking the third time in the last four months that they have been down. Total factory orders are down 1.7% year-over-year while orders, excluding transportation, are down 3.4%. (Eric - those are negative numbers...not positive numbers....just sayin...). This supports Friday's NFP report that showed nearly 30,000 lost jobs in manufacturing (another negative number) ....Never mind that Producer prices in Europe continued to fall, resuming their downward deflationary path falling at -4.2% y/y! (grossly negative number...)

Overnight - The Nikkei plummeted by 2.4%, the Yen rallies (bad for exporters) - How are those negative rates working? How much more can the Yen rally before we enter 'intervention territory'? Will PM Shinzo Abe announce another stimulus plan? Kathy Lien - Managing Director at FX Strategy at BK Asset Management had this to say:

"With the high level of long yen/short dollar positions, this is the prime time for the BoJ to intervene....however Japanese policy makers have not confirmed any intervention thus far...."

Hong Kong and Australia both lower by 1.5% - China bucking the trend rallies by 1.3% .

This morning European mkts also getting slammed.....Euro zone macro data supporting the recent Lagarde statements as they show little signs of improvement. Euro zone composite PMI - both output and services coming in below the earlier flash estimates.....Now Chris Williams - Chief Economist at Markit - tried to stop the bleed by saying:

"This Euro zone data is by no means a disaster....it's just disappointing growth......"

He tried to accentuate the positive by saying that there are 'pockets of growth' in both Spain and Ireland.....well that's all well and good - but when you take Germany, France, and Italy out of the equation - it sends a very clear message....and so investors are voting with their feet and heading for the exits today.....FTSE - 1.4%, CAC 40 - 2.2%, DAX -2.3%, EUROSTOXX - 2.25%, SPAIN -2.1% and ITALY -2.2%

This morning's WSJ headlines with another round of gov't REGULATION that will serve to further CHOKE the economy.....Jack Lew - another Harvard Educated rocket scientist - announces

"New Rules on Tax Inversions Threaten Pfizer/Allergen Deal....In a move , which is far more aggressive than anticipated, sent Allergen's shares tumbling..."

Now yes, these new rules - 'the 3rd wave of administrative action against inversions will make it harder for companies' and will curb corporate inversions - but here is the issue.

Instead of addressing the 'structural issues' that cause inversions (corp tax structure) - the gov't decides to 'castrate big business" with more regulation . And so this seems to be the Obama Administrations (and by default the Democrats) way to the future.....Castrate capitalism!

And in another attempt to become a listed exchange - BATS has launched a new road show - marketing itself to investors 4 yrs after that massive humiliating failed attempt the first time around...... The offering is expected to generate about $212 mil - and allow the private investors an opportunity to 'get out'..... Price talk is in the $17/$19 range. Once again - they are choosing to list their shares on their exchange....let's hope that they fixed that 'software glitch'......

Eco data today includes: Markit US Services PMI - exp of 51.2, ISM Non Manf Composite of 54.2 and the JOLTS job openings - Not a major data point at all - unless of course they can use it to sell their story.

I suspect that if the mkt remains weak into the opening and we break 2050 on the S&P cash - then a test lower to the 200 dma at 2015 - is not out of the question...as it now appears that all of the excitement at month end has turned into caution ahead of today's slew of mixed to negative news - at the moment there is no reason for mkts to rally....buyers will be patient as they watch sellers squirm....

 

Lobster Arrabiato

For you this you need: a live - 2 lb lobster,, olive oil, minced garlic, chopped fresh basil, lemon zest, lemon juice, red hot pepper and minced red onion.

Begin by breaking the claws off of the body - crack them open. Now slit the belly and the tail. Mix all of the ingredients and place the lobster in a large bowl. Pour the marinade over the lobster and place in the fridge and let it marinate for 2 -4 hrs.

Now when ready - light the grill - let it get nice and hot. Place the lobster and the claws on the grill.

Now look - rule of thumb.....on a grill you need to cook a lobster for about 7 min /lbs....so a 2 lbs lobster will cook for a total of about 14 mins......so Cook for about 6 -7 mins - and then turn the pieces over and cook for another 6-7 mins.

Serve immediately.


Buon Appetito.