Tuesday, January 19, 2016

The Cost Of Keeping The Netflix "Growth Story" Intact: A Record $276 Million In Q4 Cash Burn

Considering the stock is up about 10% in the after hours, the Netflix story remains intact.  What was the cost of keeping the last FANG momentum "story" alive? A record $276 million in cash burn in the quarter.

50 Million Americans Prepare For "Potentially Historic" Winter Storm

Stocks Stumble Into Green As China Stimulus Headline Trumps Collapsing Crude

IBM Hits 5 Year Lows After Sales Drops For 15 Consecutive Qtrs, EPS "Beats" On Plunging Tax Rate

It appears that IBM once again "beat" the GAAP EPS by using the oldest trick in the accounting book: a sharply lower effective tax rate. While IBM had used 22.3% for its tax rate a year ago, it decided to use a far lower effective tax rate in the current quarter, only 12.5%. The non-GAAP tax rate was also sharply lower.

Blissfully Ignorant Arrogance Exposed

Artist's Impression Of The Stock Market "Correction"

Overheard on CNBC this morning "now is the time to buy and believe."

The Coming Era Of Financial Triage

Virtually every major program of every major nation-state is financially unsustainable going forward. Though triage is typically used in a medical setting, we are entering an era when financial triage will increasingly be necessary on a household, enterprise and national level.

Stocks Slump After Saudis Threaten Nukes Against "Nefarious" Iran

"While Iran claims its top foreign policy priority is friendship, its behavior shows the opposite is true. Iran is the single-most-belligerent-actor in the region, and its actions display both a commitment to regional hegemony and a deeply held view that conciliatory gestures signal weakness either on Iran’s part or on the part of its adversaries. Saudi Arabia will not allow Iran to undermine our security or the security of our allies. We will push back against attempts to do so."

In A Post-Boom World, Auto Prices Will Fall

As with houses, it doesn’t matter how big or luxurious or complex you make new cars. When the credit bubble bursts, auto prices will not “always go up.”

The Market Stubbornly Refuses To Believe A Crash May Be Coming: Here's Why

The fabric of the market is showing signs of fracturing, as 9 years of declining policy rates and 6 years of QEs failed to kick-off growth, while, as Fasanara Capital's Francesco Filia notes, further easing has a visibly decreasing marginal effectiveness. It is end-of-cycle-type policymaking and market responsiveness and while some markets and sentiment reflect the concerns of a tail-risk-like collapse, stocks remain dissonant in the medium-term to the ongoing rioting against monetary activism and market manipulation by global Central Banks.

Canada Set To Unleash Negative Rates As Oil Patch Dies, Depression Deepens

Canada’s oil “dream” is dying thanks to the inexorable slide in crude prices and as the IEA made clear earlier today, the pain is set to persist for the foreseeable future as the world “drowns in oversupply.” Now, the Bank of Canada must make a choice: cut to support the economy and the country's dying oil patch, or hold to shore up the plunging loonie. Whatever the BOC decides on Wednesday, some say the country's depression means NIRP is right around the corner.

Not "Off The Lows" - Stocks Slammed As Crude Crashes To Post-Iran Lows

But China was going to stimulate the world???

Former IMF Chief Economist Warns "If Stock Slump Lasts Longer, Will Become Self-Fulfilling"

"If, however, the stock market slump lasts longer or gets worse, it can become self-fulfilling," former IMF Chief Economist Olivier Blanchard tells his fellow Elite in Davos this week. Somebody has to do something! However, Blanchard warns, "The ability of the Fed, fresh out of the zero lower bound, to counteract a slowdown in demand remains limited."

What If The Imploding Baltic Dry Index Does Reflect Global Trade After All

For staunch goalseeking Keynesian the collapse in Baltic Dry rates had little to do with actual demand for this services, and everything to do with the alleged supply of drybulk shipping, which was the stated reason for the collapse in costs.In other words, "trade was fine." Well, maybe not as the following chart from Capital Economics shows.


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