Saturday, September 7, 2013

Bloomberg Has A Cool New Global Gas Price Data Visualization Tool

Bloomberg has launched an amazing web app that allows users to rank countries by gasoline prices.

"The average price of a gallon of gas in the U.S. is $3.52 but that's chump change compared to Turkey, where it's $9.98 a gallon, or $9.97 in Norway, with The Netherlands a distant third at $8.95," Bloomberg rankings deputy leader Mary Lowengard said in a release. "In fact, the U.S. ranks 51st out of the 60 countries in terms of the cost of a gallon of gas, putting in perspective that $65 you had to shell out."

The tool lets you rank countries according to average price of a gallon (which you can also view in liters), the percent of a day's wages that it would take to buy that gallon, and the percent of annual income spent at the pump.

It reveals that the Netherlands has the highest overall gas prices, but that wage earners in India have to shell out most for it. Each country's situation is laid out by reporter Tom Randall.

Bloomberg says it hopes to produce a version exclusively for U.S. states.

Here's a screenshot of the tool:

gas screenshot 2 Bloomberg


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Greece Is Getting Clobbered

Athens Stock Exchange Greece AP

Greece is  getting clobbered today.

The Athens Stock Exchange is down over 2.6%.

Yields on Greek bonds are jumping.

What's going on?

The big news is that the coalition government (which came into power in the summer of 2012) is deteriorating.

The small Democratic Left party has threatened to withdraw from government, following the attempt to shut down a public broadcaster, a move which has caused a massive political crisis.

Also not helping was an FT report (which has been denied) about the IMF playing hardball with the next Greek aid payment.


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Brazilian President Calls Emergency Cabinet Meeting After HUGE Night Of Protests All Around The Country

RIO DE JANEIRO (AP) — Police and protesters fought in the streets into the early hours Friday as an estimated 1 million Brazilians swarmed through more than 80 Brazilian cities in the biggest demonstrations yet against a government viewed as corrupt at all levels and unresponsive to its people.

President Dilma Rousseff called an emergency meeting of her top Cabinet members for Friday morning, more than a week after the protests began. Rousseff, who has a standoffish governing style, has been almost entirely absent from the public eye, making only one statement earlier in the week that peaceful protests are part of the democratic process.

But the protests that raged across Brazil late Thursday and into Friday were spiked with violence as people vented anger over a litany of complaints, from high taxes to corruption to rising prices.

At least one protester was killed in Sao Paulo state when a car rammed into a crowd of demonstrators, after the driver apparently became enraged about being unable to drive along a street.

In Rio de Janeiro, where an estimated 300,000 demonstrators poured into the seaside city's central area, running clashes played out between riot police and clusters of mostly young men with T-shirts wrapped around their faces. But peaceful protesters were caught up in the fray, too, as police fired tear gas canisters into their midst and at times indiscriminately used pepper spray.

Thundering booms echoed off stately colonial buildings as rubber bullets and gas were fired at fleeing crowds.

At least 40 people were injured in Rio, including protesters like Michele Menezes, a wisp of a woman whose youthful face and braces belie her 26 years. Bleeding and with her hair singed from the explosion of a tear gas canister, she said she and others took refuge from the violence in an open bar, only to have a police officer toss the canister inside.

The blast ripped through Menezes' jeans, tearing two coin-sized holes on the back of her thighs, and peppered her upper arm with a rash of small holes.

"I was leaving a peaceful protest and it's not the thugs that attack me but the police themselves," said Menezes, removing her wire-rim glasses to wipe her bloodshot eyes.

She later took refuge in a hotel, along with about two dozen youths, families and others who said they had been repeatedly hit with pepper spray by motorcycle police as they also sheltered inside a bar.

Protesters said they would not back down.

"I saw some pretty scary things, but they're not going to shake me. There's another march on the 22nd and I'm going to be there," said 19-year-old university student Fernanda Szuster.

Asked if her parents knew she was joining in the protests, Szuster said: "They know and they're proud. They also protested when they were young. So they think it's great."

She added, though, that she wouldn't tell her father the details of the police violence. "If he knew, he would never let me leave the house again."

In Brasilia, the national capital, police struggled to keep hundreds of protesters from invading the Foreign Ministry, while the crowd set a small fire outside. Other government buildings were attacked around the city's central esplanade. There, too, police used tear gas and rubber bullets trying to scatter demonstrators.

Clashes were also reported in the Amazon jungle city of Belem, Porto Alegre in the south, the university town Campinas north of Sao Paulo and the northeastern city of Salvador.

"This was meant to be a peaceful demonstration and it is," artist Wanderlei Costa, 33, said in Brasilia. "It's a shame some people cause trouble when there is a much bigger message behind this movement. Brazil needs to change, not only on the government level, but also on the grass-roots level. We have to learn to demonstrate without violence."

The protests took place one week after a violent police crackdown on a much smaller demonstration complaining about an increase in bus and subway fares in Sao Paulo galvanized Brazilians to take their grievances to the streets.

The unrest is hitting the nation as it hosts the Confederations Cup soccer tournament with tens of thousands of foreign visitors in attendance. It also comes one month before Pope Francis is scheduled to visit Brazil, and ahead of the 2014 World Cup and 2016 Olympics, raising concerns about how Brazilian officials will provide security.

Mass protests have been rare in this country of 190 million people in recent years, and the mushrooming demonstrations of the past week caught Brazilian government officials by surprise while delighting many citizens.

"I think we desperately need this, that we've been needing this for a very, very long time," said Paulo Roberto Rodrigues da Cunha, a 63-year-old clothing store salesman in Rio.

Despite the energy on the street, many protesters said they were unsure how the movement would win real political concessions. People in the protests have held up signs asking for everything from education reforms to free bus fares while denouncing the billions of public dollars spent on stadiums in advance of the World Cup and the Olympics.

"We pay a lot of money in taxes, for electricity, for services, and we want to know where that money is," said Italo Santos, a 25-year old student who joined a rally by 5,000 protesters at Salvador's Campo Grand Square.

But many believe the protests are no longer just about bus fares and have become larger cries for systemic changes.

"This is the start of a structural change in Brazil," said Aline Campos, a 29-year-old publicist in Brasilia. "People now want to make sure their money is well spent, that it's not wasted through corruption."

___

Associated Press writers Marco Sibaja in Brasilia, Bradley Brooks and Stan Lehman in Sao Paulo and Ricardo Zuniga in Salvador contributed to this report.


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One Look At Tesla's New 90-Second Battery Swap, And You'll See Why Elon Musk Is The New Steve Jobs

Yesterday, Tesla unveiled a new 90-second "Battery Swap" service.

To allay fears about long charge times for batteries, the company says that Model S drivers will be able to go to any service station this year, and swap their depleted battery for a fresh battery for a price of $60-$80, and that the whole process takes just 90 seconds.

That's cool, but what's really cool is watching the presentation, and seeing how masterful a presenter Elon Musk is.

In the clip below, Elon and Tesla have a car drive into the stage, getting its battery swapped ultra-fast, while a video of an Audi driver filling up his gas tank plays in the background. Not only is the swap they've set up faster, Tesla actually has a second driver come and get a battery swap on stage, which makes for some great showmanship.

Not since Steve Jobs has any CEO combined innovation and showmanship like this.


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Friday, September 6, 2013

Another Brutal Day In Brazil: Stocks Down After A Million Protestors Take To The Streets (EWZ)

Brazil's Bovespa is down nearly 2% to 47,258.

About a million Brazilians took to the street across 80 cities, prompting president Dilma Rousseff to call an emergency meeting. The protests were sparked a week ago over a hike in bus fares but have  mushroomed since.

"We view these protests as a wake-up call that the government needs to continue catering to the new demands of the rising middle class," wrote Barclays' Marcelo Salomon. 

"It is not enough to increase social transfers or create stimulus programs to push consumption up. Brazilians are now clamouring for a leaner and more efficient government, one that spends tax revenues in a sound manner, according to their needs. A necessary condition of  the uprising was the use of social media, which allowed for a leaderless movement to bring to the streets this incredible demonstration of power."

Brazil's measure of inflation, the IPCA-15 price index climbed 0.38%, above expectations and annual inflation ticked up to 6.67%. Brazil's central bank has a two percentage point tolerance against its 4.5% target.

On Thursday, Brazil's central bank sold currency swap contracts to help support the real which continues to be down 12% against the U.S. dollar since May.

President Rousseff's approval rating has fallen to 55%, according to the CNI/Ibope opinion poll.

Here's a look at Brazil's Intraday chart from Bloomberg:

bovespa Bloomberg


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David Zervos Has The Best Explanation For What Bernanke Was Trying To Do When He Tanked The Market On Wednesday

On Wednesday, Ben Bernanke came out guns blazing.

He said that plans to "taper" the pace of Fed purchases were going ahead, and that the rise in interest rates was not a big concern to the Fed.

And so the market tanked.

What was Bernanke going for?

According to Jefferies David Zervos, this is really all about injecting a little bit of uncertainty into the market to ward off excessive speculation.

[Wednesday's] pronouncements appear to be a conscious effort to inject uncertainty into a fixed income market that feeds on certainty. He was taking a cue from the great Hyman Minsky. By acting against a market that had become too complacent, he was attempting to force out the dangerous and excessive leverage in the system. And while that may feel a little painful right now, we may end up being very thankful that the Committee took the actions it did Wednesday in the name of preserving future financial stability.  Our path to recovery does not rely on 6 guys and Bloomberg levering up spready EM, mortgage or corporate debt.

Our recovery comes from individuals taking on real investments, in real economic endeavors. Increasing the funding opportunities for companies that innovate, put a real return on capital, generate real growth and create real jobs is the primary goal of QE. That is the portfolio balance channel at work. And the side effects related to too much leverage in bond markets have been a thorn in the side of developed market monetary policy implementation for decades. The Fed seems to have learned this lesson and it has decided to purge some of the QE demons from the fixed income markets early, before its too late and we have a souped-up version of 1994 on our hands.

The beauty, says Zervos, is that the Fed is still there to ease further if needed:

If economic prospects sour, they will buy more bonds and stay lower for longer. Ben said as much Wednesday. So the "Bernanke Put" is very much alive and well.

Find more Zervos at Markit Hub -->


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Now That The Dust Has Settled, Here Are The 6 Themes That Are Dominating Markets

Markets are rising today after the big declines yesterday and Wednesday.

The big event this week was, of course, the FOMC announcement, wherein Ben Bernanke confirmed the Fed's intention to "taper" the pace of bond purchases, provided the economy remains on its current trajectory.

So what does the landscape look like now?

Citi FX analyst Steven Englander explains the 6 big themes that are dominating global markets:

1)    The degree of Fed optimism on the US economy, its clarity on the proposed path of winding down QE and the apparent giving up of the objective of restoring employment-population ratios that reflect the pre-2008 trend. From a markets perspective this came across as a much more hawkish Fed.  In addition to this major theme, we have a continuation of themes that were earlier in play… 

2)    EM underperformance, especially among commodity producers. The weak China data overnight and concern about liquidity add to the headwinds EM and commodity currencies face. 

3)    Low, but rising yields and risk premium. There is a crucial difference between yield increases in the US where the economy is improving, and elsewhere where readings are worsening or, at best, as weak as expected. 

4)    Long USD positioning seems to have dropped off the map as a factor, possibly because positions had been greatly wound down going into FOMC. 

5)    Euro and UK stabilization – but these are also the regions where the central banks may be most aggressive in trying to counter the headwinds form tighter US liquidity. 

6)    Abenomics losing its unspoken fourth arrow – extremely easy liquidity outside as well inside Japan. The question now is what measures the Japanese authorities can take to get Japanese stimulus back on track.

For more on what's going on this morning, see here -->


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