Tokyo Exodus Part 2: Thriving Metropolis Or Ghost Town?

Submitted by Tyler Durden on 03/16/2011 10:13 -0400

A stunning report from Reuters on how the crisis has transformed one of the world's most populous cities: "Areas of Tokyo usually packed with office workers crammed into sushi restaurants and noodle shops were eerily quiet. Many schools were closed. Companies allowed workers to stay home. Long queues formed at airports. As Japanese authorities struggled to avert disaster at an earthquake-battered nuclear complex 240 km (150 miles) to the north, parts of Tokyo resembled a ghost town."

Gold Is The Ultimate Safe Haven

posted by Eric De Groot at Eric De Groot - 6 minutes ago

The Swiss franc has been the safe haven against the devaluation of most, if not all, fiat currency. Swiss Franc (FXF) A safe haven discussion, however, must include gold. Gold priced in Swiss francs has be...

Visual Real-Time Summary Of Japanese Radiation Levels, Wind Patterns And Tokyo Blackouts

Submitted by Tyler Durden on 03/16/2011 09:15 -0400

We present a handy real-time visual summary of radiation levels by Japanese prefecture. The levels in Fukushima and Sendai continue to be NA or "under survey" as the politically correct term is. We also show critical wind patterns as well as real time Tokyo power blackouts. 

Latest Digitalglobe Satellite Photos Of Fukushima Show Extensive Damage To Reactors 2 And 4

Submitted by Tyler Durden on 03/16/2011 09:39 -0400

Satellite imaging company Digitalglobe has just released its latest flyover image of reactors 1 through 4. Sadly, each one appears to have suffered extensive damage. 

Reactor Status Update And Fukushima Risk Q&A

Submitted by Tyler Durden on 03/16/2011 08:54 -0400

The following summarises what is happening at each unit, and the major risks 

Housing Starts Plummet To Second Lowest Ever At 479K, Finished Consumer Food PPI Jumps By Highest Since 1974

Submitted by Tyler Durden on 03/16/2011 08:44 -0400

Stagflation, bitchez. PPI in February doubled to 1.6% on expectations of 0.7%, compared to 0.8% previously, and 5.6% Y/Y! This is the largest increase in finished goods prices since a 1.9-percent advance in June 2009. At the earlier stages of processing, prices received by manufacturers of intermediate goods moved up 2.0 percent, and the crude goods index climbed 3.4 percent. On an unadjusted basis, prices for finished goods advanced 5.6 percent for the 12 months ended February 2011, the largest 12-month increase since a 5.9-percent rise in March 2010." And the stunner: "The index for finished consumer foods surged 3.9 percent in  February, the largest increase since a 4.2-percent climb in November 1974. About seventy percent of the February rise can be traced to higher prices for fresh and dry vegetables, which jumped 48.7 percent. Advances in the indexes for meats and dairy products also were major factors in the increase in the finished consumer foods index." And while inflation is everywhere, or at least for items people need, the housing market is now official dead. February housing starts came at 479K on expectations of 566K, a massive 22.5% collapse from revised January data, and the second lowest ever, better only to April 2009's 477K. Overall: complete stagflationary disaster, and one which means the Fed will use any excuse for QE3, inflation be damned. 

Mizuho Unable To Complete ¥570 Billion Of Transactions: Money Transfers Affected Due To "System Glitch"

Submitted by Tyler Durden on 03/16/2011 08:03 -0400

Is Japan's already fragile financial system about to realize that not even endless pumping of liquidity by the BOJ will do much when the entire country is on the brink? According to Kyodo, Mizuho is unable to complete ¥570 billion in transactions, as problems include money transfers caused by a "system glitch." Si ATMs now, shadow banking tomorrow? The last thing an already stricken Japan needs right now is to remove cash access to its citizens. And while we await more information, we can't help but wonder just how lucky the country's financial system has been so far in preventing a wholesale freeze. 

Deplorable Portugal 12 Month Auction Validates Belgium Decision To Pull Sovereign Issuance Due To "Market Conditions"

Submitted by Tyler Durden on 03/16/2011 08:22 -0400

Earlier today Portugal had a deplorable bond auction of €1 billion in 12 month Bills, which saw the interest rate paid jump to nearly 4.5% even as general demand indicated by Bid to Cover plunge from 3.1 to 2.2. And even so, the bulk of the purchasing was from Asia, read China, as the last thing Japan needs now is to rescue a insolvent Portugal, according to a finance minister disclosure. From Reuters: "The 12-month T-bill yield rose to 4.331 percent from 4.057 percent in an auction on March 2, in line with analyst expectations of around 4.3 percent and with the secondary market. It also stayed below record levels seen in December." Alas, while Portugal purchased a few days of funding, it merely confirmed that it is now effectively bankrupt as paying 4.3% for 12 months worth of debt indicates the Rubicon has long been passed. Look for Portugal to be bailed out any minute. And in attempting to avoid the same fate, Belgium decided to "postpone" its own bond issuance of 6 year benchmark notes on concern investors will puke all over the paper. "Belgium delayed the sale of a new six-year benchmark bond on Tuesday due to market volatility caused by the Japan earthquake and explosions at a nuclear power station there. Plans to issue the new bond, maturing in June 2017, were announced on Monday, with Deutsche Bank, KBC Bank and Morgan Stanley mandated as joint bookrunners. The markets are so volatile at the moment and attention is concentrating on what is happening in Japan," debt agency chief Anne Leclerq told Reuters." Luckily unlike Portugal which has no choice but to raise debt at every opportunity, Belgium has the choice to await greener pastures. For now. 

Overnight Nikkei Heatmap

Submitted by Tyler Durden on 03/16/2011 07:30 -0400

Below is a heatmap of the Nikkei "no news is great news, as is 26.5 trillion in fiat injections" relief rally. Note the main equity outlier, TEPCO, which however has seen its CDS tighten substantially overnight from 390-440 to just 285-315. The reason for the credit melt up is that according to an article, the operator of a nuclear facility will not be responsible for any damage caused by their reactor if it was due to "a grave natural disaster of an exceptional character or by an insurrection." Which simply means that the nationalization of TEPCO will be indirect and that Japan will have to issue that much more debt. 

Summary Update Of Japan's Nuclear Crisis - Last Ditch Attempt To Cool Reactor 4 Involves Police And A Water Cannon

Submitted by Tyler Durden on 03/16/2011 07:13 -0400

• A helicopter was unable to drop water to cool the No.3 reactor at the quake-damaged Fukushima Daiichi nuclear power complex in northeastern Japan probably because of the high radiation, Kyodo news agency said, quoting the defence minister.
• Police will attempt to cool No.4 reactor's spent nuclear fuel pool using a water cannon, TV says.
• Japan's top government spokesman says radiation levels around the complex are not at levels to cause an immediate health risk.
• There is no evidence of a significant spread of radiation from Japan's crippled nuclear plants, the World Health Organisation says.
• Operator says it is unable to resume work cooling the reactors due to radiation risk. Workers ordered to leave the plant were allowed back in after radiation levels fall. Operator says there were 180 workers on site as of 0230 GMT.
• Operator of the nuclear power complex in northeastern Japan recorded the site's highest levels of radiation at the No.3 reactor on Wednesday.
• Water is being poured into reactors No.5 and No.6 at the plant, the operating company says. Those two reactors had been shut down for scheduled maintenance.