Bond Trading Lull Leaves Banks Set For Third Quarter Squeeze

Bernstein & Co. analyst, wrote in a Sept. 20 report, referring to fixed-income, currency and commodities trading. Citigroup, based in New York, is the third-biggest U.S. bank by assets.
Source: http://www.bloomberg.com/news/2013-09-23/citigroup-drops-after-report-that-bond-trading-will-drop.html

India considers late trading in agricultural commodities – regulator

A year ago, the nations third-biggest bank reported that it generated $3.7 billion in the third quarter from trading fixed income, currencies and commodities, but The Financial Times reports that some investors believe that Citibanks FICC revenue has fallen by more than 10%. Investor jitters over Citigroup come after investment bank Jefferies Group Jefferies Group last week announced an 88% quarterly decline in its fixed-income trading revenue. We experienced a very challenging summer in our fixed income business due to the rising rate environment, spread widening, redemptions experienced by our client base which heavily muted trading, and related mark-to-market write downs within our inventory, Richard Handler, chief executive of Jefferies, said in a statement. Jefferies is part of Leucadia. JPMorgan Chase JPMorgan Chase & Co., the nations biggest bank and a fixed-income trading powerhouse, has already warned investors to expect a hit to trading revenue.
Source: http://www.forbes.com/sites/nathanvardi/2013/09/23/the-wall-street-trading-machine-is-sputtering/

Insider Trading Buddies Nailed by … Metrocards?

Investment bank earnings can be the most volatile part of a bank’s results and are being watched for clues on how cost cuts and restructuring are reshaping the competitive landscape. The fight is on among top names to grab market share from banks that are retreating, such as UBS (UBSN.VX) and Royal Bank of Scotland (RBS.L). FICC is investment banks’ bread-and-butter activity and typically accounts for more than half their revenue. Quarterly FICC revenues topped $40 billion at times in 2009 and 2010, but in more normalised markets and with leaner businesses that will be nearly impossible to repeat, analysts reckon. Banks pulled in $26 billion from FICC in the second quarter and $36 billion in the first quarter, or half of the $122 billion in total investment bank revenues, according to Morgan Stanley analysts. The way banks report fixed income revenue is not always comparable, but analytics firm Tricumen estimated Citi (C.N) was the leading FICC bank in the first half, with revenue of $7.4 billion delivering a pretax operating profit of $3.6 billion.
Source: http://uk.reuters.com/article/2013/09/24/uk-banks-trading-bonds-idUKBRE98N0L020130924

Baltic Trading Limited Announces Exercise of Underwriters’ Option to Purchase Additional Shares

It is the one that is the most adaptable to change. -Charles Darwin There are often too many factors converging in the market for our mind to trade effectively and objectively, trading automation may provide a way around this problem. Talking Points: *Discretionary trading has the challenge to be objective when your money is on the line *Its tough to be objective when the pros disagree *It can often be helpful to turn to auto trading based on a methodology you trust * Mirror Trading is a no-fee option to shop auto trading systems Trading by its nature involves extreme multi-tasking around the clock under the stress of potential financial gain or loss. The human mind often has difficulty successfully multi-tasking in a way that allows progress to be made in the task at hand. When trading, the task at hand is taking real time information via price as well as news coming off the wires that can affect your trades outcome. All the while professional traders can be on opposite sides of the trade. If you dont feel like you have the tools to trade like a professional, weve review created a FREE certificate course here to help you understand the key concepts we believe a professional trader should know, whether they use automated trading or not.
Source: http://www.dailyfx.com/forex/education/trading_tips/post_of_the_day/2013/09/24/Discretionary_Traders_Dilemma.html

The Discretionary Trader’s Dilemma & Automated Trading’s Solution

These forward looking statements are based on management’s current expectations and observations, and include those that discuss the offering, the anticipated timing of closing of the offering and the use of net proceeds from the offering. These forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. Such statements are subject to various risks, uncertainties and assumptions, including market conditions. Should one or more of those risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed in any forward-looking statements. These risks, as well as others, are discussed in greater detail in Baltic Trading’s filings with the SEC, including, without limitation, the “Risk Factors” section in the preliminary prospectus supplement and related prospectus relating to our offering, our Annual Report on Form 10-K for the year ended December 31, 2012, and our subsequent filings with the SEC. @yahoofinance on Twitter, become a fan on Facebook Related Content Chart Your most recently viewed tickers will automatically show up here if you type a ticker in the “Enter symbol/company” at the bottom of this module. You need to enable your browser cookies to view your most recent quotes.
Source: http://finance.yahoo.com/news/baltic-trading-limited-announces-exercise-123800234.html

The Wall Street Trading Machine Is Sputtering

Late trading is currently allowed only in metals and energy products, where prices follow global markets. In agriculture commodities, futures trading currently takes place between 10 a.m. and 5 p.m. “We are discussing with exchanges and other trade participants how we can start late-evening trading in agriculture commodities as some spot markets remain open till 8 p.m.,” Abhishek told reporters on the sidelines of a conference. The National Commodity and Derivatives Exchange, the biggest platform for futures trade in agriculture commodities, has already sought approval of the FMC to start late trading in some commodities. “Late-evening trading can help market participants.
Source: http://in.reuters.com/article/2013/09/22/futures-trading-agricultural-commodities-idINDEE98L03P20130922

Citigroup Drops After Report That Bond-Trading Will Drop

So you tell your friend, and your friend trades, and then he hands you a bag of cash. Division of labor! These guys got that part down: Allen never traded a share, says the SEC, and Bennett paid him with bags of cash.* Also, you don’t tell your friend stuff on a recorded phone line . These guys managed that, though they did occasionally communicate on un-recorded phone calls, which is also sub-optimal, since the SEC can cite phone records showing that Allen called Bennett on days that he learned new information.** Most important, you keep your hand-offs of bags of cash secret. Really, though, this seems like it should have worked: For example, on July 1, 2008, Bennett withdrew $5,200 from a Citibank branch located near his office at 10:52 am. Allen swiped his Metrocard at the 47-50 Rockefeller Center subway stop (the subway stop closest to Allen’s office) at 12:36 pm and then again at the 59 Street Columbus Circle subway stop (the subway stop closest to Bennett’s office) at 1:54pm.
Source: http://www.bloomberg.com/news/2013-09-23/insider-trading-buddies-nailed-by-metrocards-.html

Streamline Student Loans: Opposing View

As the president has said recently, there is still much more work to do,” said Matt Lehrich, a White House spokesman. “In the coming months he will lay out an aggressive strategy to build upon the historic work his administration has already done to keep college affordable and help Americans struggling with their student debt.” Correction: A previous version of this story mistated the day that Remondi spoke with investors. Also on HuffPost: Loading Slideshow Obama Holds Final Primary Night Event In St. Paul ST. PAUL, MN – JUNE 3: Democratic presidential candidate Sen. Barack Obama (D-IL) (R) and his wife Michelle Obama bump fists at an election night rally view publisher site at the Xcel Energy Center June 3, 2008 in St.
Source: http://www.huffingtonpost.com/2013/09/11/income-based-repayment_n_3903208.html

EDT September 8, 2013 Give relief to those who earn less. President Obama speaks at Henninger High School in Syracuse, N.Y., on Aug. 22. (Photo: Jacquelyn Martin, AP) Story Highlights If you have high debt compared with your income, IBR caps monthly payments on a sliding scale based on income and family size. Pay As You Earn started last year and is a lot like IBR, but with lower monthly payments. SHARE 29 CONNECT 22 TWEET COMMENTEMAILMORE As part of his college affordability plan, the president has wisely proposed both improving and raising awareness of income-based repayment options for federal student loans.
Source: http://www.usatoday.com/story/opinion/2013/09/08/student-loans-institute-for-college-access-and-success-editorials-debates/2783185/

The basic principle is that it ties student loan rates to the bond markets. This fall, undergraduate students will pay an overall interest rate of 3.86% on their loans. It is comprised of the yield on the 10-year Treasury note on June 1, plus an additional 2.05%. Graduate students will have to pay 5.41% on loans this fall, or 3.6% over the 10-year Treasury, also on June 1. Related: Bill helps college students now, but future students to see rate hikes If rates on Treasury notes rise, so would student loan rates under the new deal. However, if interest rates were to spike, the bill makes provisions to cap the rates.
Source: http://money.cnn.com/2013/07/24/news/economy/senate-student-loans/index.html

Student loan deal passes Senate

For purposes of the deduction, an individual can be your dependent even if you are the dependent of another taxpayer; even if the individual files a joint return with a spouse and even if the individual had gross income for the year that was equal to or more than the exemption amount for the year. As with other education tax breaks, you must reduce your qualified education expenses by the total amount paid for employer-provided educational assistance; tax-free distribution of earnings from a Coverdell education savings account or a qualified tuition program (QTP); U.S. savings bond interest previously excluded from income; tax free scholarships, fellowships and grants ; and veterans benefits . You can typically deduct all of the interest you paid on your student loan until the loan is paid off. There are limits and phaseouts, however, depending on your income.
Source: http://www.forbes.com/sites/kellyphillipserb/2013/09/10/back-to-school-deducting-interest-paid-on-student-loans-even-if-you-dont-pay-the-loans/

Evaluating a Variable Rate Student Loan

Lets say youve borrowed $50K to finance your student debt, and youre about to enter the repayment period. Now well take a look at three potential scenarios in which prevailing interest rates change in order to see how they would affect your variable rate loan your total payment over the life of your loan and your maximum monthly payment over the next ten years: Scenario #1: 1-month LIBOR rises to 5.82% (its 10-year high) Scenario #2: 1-month LIBOR rises to 11.64% (2X its 10-year high) Scenario #3: 1-month LIBOR rises to 2.91% (half of its 10-year high) In Scenario #1, where rates rise to their 10-year high level, the variable rate SoFi loan still beats all but the lowest fixed rate loan on the federal side. In Scenario #2, where rates rise to twice the 10-year high level, SoFi still has the edge in terms of total payments again beating out all but the lowest rate federal loan. How is that possible? Because rates are starting out very low today, and the variable rate SoFi loan is capped at 8.95%. Having a cap on a variable rate loan can remove some of the risk if youre concerned about interest rates going sky high.
Source: http://dealbreaker.com/2013/09/evaluating-a-variable-rate-student-loan/

Back To School: Deducting Interest Paid On Student Loans (Even If You Don’t Pay The Loans)

The CFPB maintains a very helpful navigator on their website ( http://www.consumerfinance.gov/paying-for-college/repay-student-debt ) that covers the basics. Here are the options, from simplest to most complicated. 1. Repayment. Obviously, this is easier said than done, but some borrowers in default do actually have the wherewithal to pay up all at once. If you have, say, an inheritance or real estate you can sell to fund repayment, in the long run this is the cheapest way to get out of default.
Source: http://www.chicagotribune.com/business/sns-201309101900–tms–savingsgctnzy-a20130910-20130910,0,2500170.story

Stocks Rise As Syria Conflict Looks Less Likely

The change becomes effective at the start of trading on Sept. 23. The Dow is made up of 30 stocks. S&P Dow Jones Indices says the change won’t disrupt the level of the industrial average. It said it made the change to diversify the sector and industry group representation of the index. Hewlett-Packard fell 20 cents, or 0.9 percent, to $22.16.
Source: http://finance.yahoo.com/news/stocks-rise-syria-conflict-looks-141842345.html

Financial stocks to lead European dividend rebound

APPLE: Set to unveil new iPhone Economic data released in China Tuesday boosted stocks in the region. The Shanghai composite index rose 1.2% to 2,238 and Hong Kong’s Hang Seng index climbed 1.0% to 22,977 after industrial production and retail sales in the nation accelerated. In Japan, the Nikkei 225 index shot 1.5% higher to 14,423. Markets in Europe saw strong gains.
Source: http://www.usatoday.com/story/money/markets/2013/09/10/stocks-tuesday-apple-iphone/2791289/

Stocks rally again thanks to Syria and China

Nike ( NKE , Fortune 500 ), Goldman Sachs ( GS , Fortune 500 ) and Visa ( V , Fortune 500 ) were also in focus, as the three will be the newest members of the Dow , replacing Alcoa ( AA , Fortune 500 ), Hewlett-Packard ( HPQ , Fortune 500 ) and Bank of America ( BAC , Fortune 500 ). Alcoa and HP fell while BofA was flat. Meanwhile, shares of Urban Outfitters ( URBN ) tumbled after it warned that its third-quarter same-store sales, a key measure for retailers, would only grow at a mid-single digit pace, below analysts forecasts. Related: Investors yank $20 billion from ETFs The broader market was likely moving higher again as concerns about a U.S.-led military strike on Syria have been pushed to the back burner.
Source: http://money.cnn.com/2013/09/10/investing/stocks-markets/index.html

Stocks Surge Around The World, Market Eyes Apple Event

Ctrip (CTRP) has been building an upper level base with all key moving averages rising up. Its been hugging the 8-day after having a nice gap and go on August 1st. CTRP looks like it could continue higher above $48.02. THe Limited (LTD) had a nice rally from $43 to $62 within five months before having a controlled pull-back. Active traders could potentially look for some buying opportunities at $58 area as a move above this could help it break above the recently descending trend line. A stop could be placed at last weeks lows of $56.26 as this is the new support level to trade against. We went over the banks that woke up on 8/28 and are starting to get some follow-through.
Source: http://www.forbes.com/sites/greatspeculations/2013/09/10/stocks-surge-around-the-world-market-eyes-apple-event/

Stocks rise, oil falls as Syria fears ease

“There is a developing theme of companies, be they insurers or banks … having good potential for dividend growth for the next three to five years,” said Samuel Morse, who manages 3.3 billion pounds ($5.2 billion) across two Fidelity equity funds. A 10 percent surge since July in the December 2016 dividend future contract, a bet on payouts in three years, shows investors expect the increase to last, Charles de Boissezon, head of global equity flow engineering and advisory at Societe Generale, said. “And financials are big contributors in terms of dividends for the Euro STOXX 50 index,” he added. SocGen expects financial stocks to contribute 30 percent of all Euro STOXX 50 dividends in 2015, up from 27 percent now. Buying stocks for their dividends has been an increasingly popular theme in the past year-and-a-half as investors look for bond-like investments in equities, and this trend is likely to http://www.todayhotstocks.com continue even as bond yields in some developed markets rise.
Source: http://www.reuters.com/article/2013/09/10/markets-europe-stocks-insurers-idUSL6N0H13CK20130910

Stocks Rise on Mergers, Homebuilder Outlook

Industrial production was 10.4 percent higher in August than the year before, ahead of the consensus of analysts forecasts of a 9.9 percent increase. Activity data have surprised persistently to the upside over the last month and this should at least arrest the process of persistent forecast downgrades for a while, said Adam Cole, an analyst at RBC Capital Markets. The figures helped further buoy stock markets, particularly in Asia. Tokyos Nikkei 225, the regional heavyweight, finished 1.5 percent up to 14,423.36.
Source: http://www.washingtonpost.com/business/asian-stocks-buoyed-by-positive-data-from-china-japan-and-easing-of-concerns-over-syria/2013/09/10/1664dcf0-19e6-11e3-80ac-96205cacb45a_story.html

Top Stocks to Buy as Leading Market Analyst Predicts 1,750 for S&P 500 in 2013

The blue-chip index is trying for its first consecutive triple-digit gains since June. Meanwhile, Goldman Sachs , Visa and Nike will join the Dow Jones Industrial Average , replacing Alcoa , Bank of America and Hewlett-Packard . The changes will be effective with the opening of trading on Sept. 23, S&P Dow Jones Indices said in a statement. The index changes were prompted by the low stock price of the three companies slated for removal and the index committee’s desire to diversify the sector and industry group representation of the index. The S&P 500 and the Nasdaq also climbed.
Source: http://www.cnbc.com/id/101022439?doc=101022439|Stocks+jump+at+open+on+st

Oil prices down further and stocks rally on hopes of diplomatic breakthrough over Syria crisis

Markets close in 4 hrs 52 mins Stock Watch Top Stocks to Buy as Leading Market Analyst Predicts 1,750 for S&P 500 in 2013 By Lee Jackson | 24/7 Wall St. 2 hours 38 minutes ago 69.73 +0.43 The equity strategy team and the market analysts at Deutsche Bank are starting to feel pretty comfortable that the rest of this year and beyond could really start to show some positive earnings growth for S&P 500 companies. Despite some well-known headwinds that include quantitative easing (QE) tapering, the country hitting the debt ceiling, ongoing geopolitical issues in Syria and the Middle East, the Deutsche Bank team is encouraged that 5% earnings growth is starting to return. With a sustained acceleration in capital expenditure (capex) spending, a very positive increase in U.S exports could be just around the corner. That combined with a well-managed slowdown in China and an overdue upgrade cycle in U.S. manufacturing, enterprise technology and infrastructure may turn the earnings tide. Deutsche Bank is focused on three areas: information technology (IT), financials and energy.
Source: http://finance.yahoo.com/news/top-stocks-buy-leading-market-123004642.html

Stocks advance as Dow jumps 100, Nasdaq hits best level since 2000

The Dow got a shakeup on Tuesday, with its manager saying it will drop Bank of America, Hewlett-Packard, and Alcoa. They’re being replaced by Goldman Sachs, Nike, and Visa. The change becomes effective at the start of trading on Sept. 23. The Dow is made up of 30 stocks. S&P Dow Jones Indices says the change won’t disrupt the level of the industrial average.
Source: http://abcnews.go.com/Business/wireStory/stocks-rise-promising-data-asia-20200001

Singapore Now Asia’s Largest Forex Centre

FOREX-Dollar tumbles broadly after U.S. jobs data

The single currency failed to gain support from a recent run of encouraging economic data. Earlier, sterling was supported after the Bank of England announced no changes to interest rates or its bond-buying program and made no further statement on policy. The main focus, however, is on the U.S. nonfarm payrolls report, due out on Friday. If that data confirms a continued recovery in the job market, it will be seen as sufficient for the Federal Reserve to decide at its Sept. 17-18 meeting to start reducing its bond-buying program.
Source: http://www.reuters.com/article/2013/09/05/markets-forex-idUSL6N0H12CL20130905

The euro failed to gain support from data showing euro zone businesses had their best month in over two years in August, because investors expect the European Central Bank on Thursday to stick to its line that interest rates will stay low to support the euro zone’s fragile recovery. The single currency was last down 0.3 percent at $1.3172 , not far from a six-week low of $1.3138, hit on Tuesday. “Even though we have seen euro zone data picking up, I don’t think it is sufficient to warrant any shift in the ECB’s stance,” said Neil Jones, head of hedge fund FX sales at Mizuho Corporate Bank. “So I do expect them to reiterate stimulus and maintain an accommodative stance to prop the euro zone economy up and this would weigh on the euro.” The ECB rate decision is due at 1145 GMT, after which the central bank’s president, Mario Draghi, will hold a press conference at 1230 GMT. The Bank of England also wraps up a policy meeting on Thursday, with some analysts expecting it to talk down markets pricing in a rate hike earlier than its own forward guidance, which could weigh on sterling.
Source: http://in.reuters.com/article/2013/09/05/markets-forex-idINL6N0H10XG20130905

Globally, it is now the third-largest forex centre, behind London and New York, said the Bank for International Settlements (BIS). Over the past three years, Singapore’s average daily forex turnover has grown 44 per cent, reaching US$383 billion (S$489 billion) in April this year. The pace surpassed the 35 per cent growth seen in global forex turnover. Average daily turnover for interest rate derivatives in Singapore grew 6 per cent to US$37 billion in April this year – the second-highest figure for Asia, behind only Japan’s. The figures were revealed in the BIS triennial central bank survey of turnover in forex markets. Separately, the Monetary Authority of Singapore (MAS) said the Singapore Foreign Exchange Market Committee found in its latest semi-annual forex survey in April that average daily turnover at the top 30 trading banks in Singapore had grown 6 per cent over the previous six months to US$381 billion.
Source: <a http://www.etftradingsignals.com href=’http://business.asiaone.com/news/singapore-now-asias-largest-forex-centre&#8217; >http://business.asiaone.com/news/singapore-now-asias-largest-forex-centre

Treasury yields and bolster the appeal of dollar-denominated assets. “The August employment report is weak enough to seriously throw into doubt the tapering the market widely expected on Sept. 18th before this latest key release,” said Alan Ruskin, global head of foreign exchange strategy at Deutsche Bank in New York. “This is the kind of employment report that throws the cat among the pigeons, generating maximum uncertainty for markets.” The dollar index, which measures the greenback against a basket of six major currencies, was at 82.152, down 0.6 percent, moving away from a seven-week peak of 82.671 set on Thursday. The jobless rate hit a 4-1/2 year low of 7.3 percent as Americans gave up the search for work. Kiran Kowshik, currency strategist at BNP Paribas in New York said the report is consistent with the firm’s view that the Fed will taper in December.
Source: http://www.reuters.com/article/2013/09/06/markets-forex-idUSL2N0H21RP20130906