Breaking News

Author Archives: Jeff Bergstrom

About Author

Bergstrom is chief information officer of John J. Lothian & Co. He edits MarketsWiki and JLN Options.

JLN Financials: Pimco’s Gross: Bonds Can ‘Float Above Water in 2014’; MarketAxess Research’s Alex Sedgwick: The December Effect; Banking rivalries: Risk on, risk off Standard

First Impressions We Cry for Thee, Argentina by Doug Ashburn The economic policy decision-making process exists, for the most part, in a theoretical world. Today’s decisions are taken from yesterday’s problems and (hopefully) adjusted for the conditions that make each situation unique. For example, central bank policy over the past few years has drawn heavily from “lessons learned” during the Great Depression and, to a lesser extent, from the two decades-old Japanese malaise. Runaway inflation is another economic topic for which many historical parallels can be drawn, but for which no magic bullet clearly exists, as no two hyperinflations have…

JLN Options: E*Trade Website Goes Down as Fed Comments Spur Volume Surge; What Options Tell us about the Men’s Wearhouse and Jos. A. Bank Battle; VIX IV Continues to Be Silly Cheap Standard

Lead Stories E*Trade Website Goes Down as Fed Comments Spur Volume Surge Sam Mamudi – BloombergSome E*Trade Financial Corp. (ETFC) customers were briefly unable to access their brokerage accounts today, locking them out of the market as comments from the Federal Reserve spurred a surge in trading. http://jlne.ws/KEJ6TO What Options Tell us about the Men’s Wearhouse and Jos. A. Bank BattleAndrew Wilkinson – Wall Street PitIn many merger or takeover tussles there is invariably a winner and a loser. Typically shares in the acquirer dip on assimilation concerns, while those in the target rise as its market cap reaches the…

JLN Financials: The Fed Shifts Ground on Big Banks; Gross Says Focus on Shorter Maturities as Inflation Trumps Jobs; China ETFs launch in London Standard

First Impressions How big is “too big” regarding global banking institutions? We were discussing this very question as the article by Simon Johnson of the New York Times hit the inbox today. The size question was not allowed to be answered by regulators for the first few years after the financial crisis, as the game plan had been to recapitalize banks and put them on solid footing to forestall systemic fears. Now, however, with the financial sector pulled back from the abyss, and with a new slew of regulators taking over, it is time to revisit the issue. I think…

JLN Options: Timing of Apple Earnings Has Options Traders Scrambling; Stock-Index Trades Rising at Fastest Pace in Six Years: Options; Investors Embrace Risk on Tuesday Standard

Lead Stories Timing of Apple Earnings Has Options Traders Scrambling Kaitlyn Kiernan – The Wall Street JournalA later-than-expected earnings report date for Apple Inc.AAPL +0.47% has some options traders nursing losses Wednesday.Apple said Tuesday that it would report its fiscal first-quarter results after the close of trading on Jan. 27, four days later than some brokerage and stock-data sources had predicted.While that difference is relatively small, it spans two different stock-option expiration dates.http://jlne.ws/1er7Acl Stock-Index Trades Rising at Fastest Pace in Six Years: Options Lu Wang, Inyoung Hwang and Nikolaj Gammeltoft – BloombergOptions trading in benchmark gauges such as the Standard…

JLN Financials: Bank of China Chooses London to Sell Yuan-Denominated Bonds; Mr. Draghi Plays Chicken With Deflation; Deutsche Bank Said Set to Weigh Punishing Staff on Libor Standard

First Impressions Argentina and its currency have fallen on hard times. John Lothian News is in the process of putting together a feature story on the peso’s slide and the prospects for the future but, alas, it is time to hit the “send” button on today’s newsletter. Suffice it to say there are several paths Argentina can choose, and none of them are particularly good. Tomorrow’s newsletter will feature a close look at the past, present and future of Argentina. As an appetizer, please have a look at this story from Reuters. Argentine peso at new lows as food price…

JLN Options: Short Covering Boosts Speculators’ Net-Long Positions In Gold, Silver, Platinum – CFTC Data; Oil Market Hopes New Year Brings More Volatility; VIX Volume Hits All-Time High in Complacent Market Standard

Lead Stories Short Covering Boosts Speculators’ Net-Long Positions In Gold, Silver, Platinum – CFTC DataKitco News (via Forbes)Net-long positions in gold, silver and platinum futures and options, held by large speculators at the Comex division of the New York Mercantile Exchange and the Nymex, rose in the latest weekly commitments of traders data from the Commodity Futures Trading Commission, released Monday.http://jlne.ws/KwhiBb Oil Market Hopes New Year Brings More VolatilityBrett Philbin – The Wall Street JournalOil traders are hoping for a little excitement in 2014.Oil prices ended last year almost exactly where they started, denying investors the chance to make money…

JLN Financials: Yellen Wins Backing of Senators to Lead Fed; Surprise drop in euro zone inflation shows deflation risk; Swaps regulator Gensler: banker turned Wall Street scourge Standard

First Impressions Gensler a “scourge”?  Really?John Lothian News Staff We confess to being puzzled at the Reuters story “Swaps regulator Gensler: banker turned Wall Street scourge” below talking about Gary Gensler’s legacy at the CFTC.  It is noted in the article that bankers really did not like the guy, thus leading to the question, what will Gensler’s legacy be? If he is a scourge, as the headline points out, Wall Street’s wings will be substantially clipped in the coming months and years as the Dodd-Frank Act rules he ushered in take hold. The US banking sector, thanks in large part…

JLN Options: Calmest Options Markets in 12 Years as Fed Boosts Confidence; Volatility buyer targets silver fund; Videocast: Big call spread in VIX Standard

First Impressions Flex Time: Object Trading’s Dan Hubscher on Shedding Operational Complexity JohnLothianNews.com From a flurry of new regulations and rapid changes in market structure to constant updates from exchanges, simple, flexible infrastructure has never been more important in the trading world. John Lothian News spoke with Dan Hubscher of Object Trading on the topic of shedding operational complexity and what they found from their most recent research. Watch the video » Lead Stories Calmest Options Markets in 12 Years as Fed Boosts ConfidenceNikolaj Gammeltoft and Liz Capo McCormick – BloombergBusinessweekMarkets for stocks, currencies, bonds and commodities are the calmest…

JLN Financials: China’s Cabinet Drafts Shadow-Banking Plan; Bond Tab for Biggest Economies Seen at $7.43 Trillion in ’14; Arthur Laffer Interview Standard

First Impressions Flex Time: Object Trading’s Dan Hubscher on Shedding Operational Complexity JohnLothianNews.com From a flurry of new regulations and rapid changes in market structure to constant updates from exchanges, simple, flexible infrastructure has never been more important in the trading world. John Lothian News spoke with Dan Hubscher of Object Trading on the topic of shedding operational complexity and what they found from their most recent research. Watch the video » Quote of the Day “There has been a shift of a significant amount of debt” into the public sector during the crisis. “Despite some improvement on the debt…