Today. Why the sudden love for the market . First, its december and december, we get what i used to call the Old Hedge Fund the era of good feelings. Thats when you get a tacit deal between Major Investment Firm Research Departments and large institutional shareholders. Its kind of like the deal my grandmother mary told me. If you dont have anything nice to say, dont say it except it applies to stocks, not people. Simply put, the analysts understand that it isnt worth rocking the boat and downgrading stocks at the end of the year when it could hurt the very accounts of the hedge funds and mutual funds that their firms cover. Whats the point of knocking down a stock now when it might damage the annual performance of the big bill payers . So if the analysts dont have up and save it for january. The corollary is true, too. The rule of december is that if you have some good things to say, then you shout them from the rooftops. Exhibit a, is an excellent piece from barclays today called be
We have hsbc releasing their own data this morning. Lets take a look at the shanghai drop. It is a 2 drop today. Last week was the worst week for chinese stock in over a year. That is what is happening across these markets. Disappointing data, perhaps. A lot of speculation there. And the china market, there are a lot of big movers today. Which one is down for you . A few. Obviously we are following shares from h and ashares. We are watching if there are moves down in any other banking shares. The company is saying it may be forced into consultancy. We will get more on why later on. This Steel Industry in china seeing a bit of a pitch. They are down 3 today. I want to mention. The Mining Machinery is expecting a 75 drop in net income. They are seeing some pressure. Let me send it back to you. As david just mentioned, the president of chinas Minsheng Bank has resigned. What do we know so far . The details are still coming in and we have to rely on a beijing magazine for some of these det
Quarterly results missed estimates and said compensating victims for defective ignitions will cost at least 440 million. Matt miller joins me along with chuck stevens. Matt, take away. Thank you. About the costsk you have set aside or the cost you pay for the actual recalls. It was 1. 3 billion in the First Quarter, 1. 2 billion in the Second Quarter, and a lot of analysts do not seem to have accounted for that in their forecast. Why do you think that is, and how much do you think it is going to be Going Forward . Before i get into questions specifically arm the recall, if i could talk about overall performance, i think it is an Important Message to get out. We continue to have strong twolts, especially in our key markets, north america and china. Recallexclude the campaigns, earnings on a yearoveryear basis were up 20 with margins of about 9. 2 . 14 hina, earnings were up yearoveryear with margins of 10 . Specifically to north america, despite the challenges related to the recap campa
Host our guest, larry elder. Radio talk show host, columnist. The firms are up on the the numbers are up on the screen. Were talking about his most recent book which is a memoir. Mr. Elder writes a lot about politics as people who follow him know. If youd like to dial in and talk about that as well, 2025853885 in the east and central time zones, 5853886 if youre in the mountain or pacific time zone where we are right now on the campus of usc. Mr. Elder, chapter two, if norl was hate. My hatred for my father was not the kind where you get a spanking, seethe for a bit and things go pack to number go back the number because you realize he punishes you because he loves you. Norm was intimidation. Normal was tense. Normal was wondering if you would Say Something that could set him off. Normal was hate. Yeah. When people look at me and im smiling, they often wonder why is it that im so sort of nonchalant about it. Im writing that from the perspective of a child, andering seems romantic, ever
Technical traders. The s p 500 closed last at 17 82. The next important line of support is 1775. If the market ends below that level, the market could continue a rough tumble. What worries the market is the 2 day Federal Reserve meeting getting underway toda and apples earnings outlook was weaker than predicted. Its an extra busy day for the bond market, Glenn Schultz of Performance Trust joins us now and will the bonds be stressing over the fed meeting that gets under way today . And then the president speaks tonight . In terms of the bond market and the quantitative using program of the Federal Reserves,my expectation is that the Federal Reserve will continue on their Quantitative Easing Program and theyre going to continue on the type tapering of that program. So we are likely going to see another 10 billion reduction in the large scale Assets Purchase Program which is gonna put the Federal Reserve on track to end the large scale Assets Purchase Program sometime in the Second Quarte