Week of Mar 1 2014- Weekly Recap & The Week Ahead
“‘A bull market is like sex. It feels best just before it ends.'” — Barton Biggs
1. Ukraine calls for urgent aid after Yanukovich ousted — per Reuters, cash-strapped Ukraine appealed for urgent financial assistance to prevent a default, saying it needed $35 billion over two years to stop the economy “heading into the abyss”. Ukraine has called for a donor’s conference that will involve the EU, the U.S. and the IMF. The plea for a bailout comes after parliament ousted President Viktor Yanukovych. A warrant has been put out for Yanukovych’s arrest after he fled the capital before his removal. Acting President Oleksandr Turchinov said yesterday that Ukraine was close to default, with the economy facing an abyss.
2. JPMorgan (JPM) to cut thousands of extra jobs at its mortgage business — FT reports JPMorgan (JPM) plans to slash thousands more jobs at its mortgage business and at its branches amid plummeting demand for home loans and the increased automation of clerical jobs,. The cuts would be part of a new efficiency program and would add to the 10,000-15,000 positions that JPMorgan has already axed.
3. Japan Sees Key Role for Nuclear Power — WSJ, Japan intends to revive nuclear energy as a major source of electricity, the government disclosed in a draft document about its long-term energy strategy. Japan’s nuclear plants were idled following the Fukushima disaster almost three years ago, which has caused the country to significantly increase its energy imports.
4. Russian troops put on alert amid Ukraine crisis — MarketWatch, Russian President Vladimir Putin ordered a test of combat readiness for troops stationed in a region that touches Ukraine’s northern border. The move comes amid growing tension between Russia and Ukraine, whose pro-Russian president, Viktor Yanukovych, was ousted by European-leaning protesters at the weekend following violence in which more than 80 people were killed. A warrant for his arrest was issued this week.
5. Japanese economic activity bumps up ahead of sales-tax hike. Japanese industrial production grew at the fastest pace since June 2011 in January, jumping 4% on month after a drop of 0.9% in December. Retail sales leapt 4.4% vs +2.5%. The strong figures are not a total surprise, as a bump in economic activity has been expected ahead of a rise in sales tax in April, which is forecast to then drag on the economy. Core inflation held steady at 1.3% on year in January, while the unemployment rate was unchanged at 3.7%.
The week ahead — Economic data from Econoday.com:
