SATURDAY 2/8/14

Austria imposes new taxes on sekt (champagne) which serves as a luxury tax on the wealthy. A French train with nearly 40 passengers traveling between Saint Benoit and Annot in the Alps is derailed by a large boulder killing two. The train crash creates concern over the safety of France transportation lines since the tragic Paris commuter train crash occurred less than six months ago.

US consumer credit leaps higher. Folks are using credit cards far more, especially due to the holiday spending in December. Typically, this is a healthy sign for the economy but the rise in credit card debt, auto loans, student loans and other debt is occurring against a backdrop of high unemployment and stagnant wages rather than in concert with a robust recovery. The US Great Lakes continue to ice over with Lake Superior now setting a record for ice cover. Lake Erie is 93% covered in ice. Lake Huron 85%. Lake Michigan 63%. The ice on the lakes brings ship traffic to a standstill which impacts the iron ore and mining industries. The US power outages continue with hundreds of thousands remaining in the dark in eastern Pennsylvania and along the East Coast.

The severe winter weather sends natty gas and propane prices through the roof. Home owners are receiving far higher monthly heating bills that will impact their spending moving forward. Hospitals are now requesting blood donors due to shortages. Casino revenues are dropping near -10% each month as folks are not willing to venture out into the frigid weather to gamble. A rubber plant in Savannah, Georgia, catches fire spewing thick black smoke that can be seen for over 15 miles away. Savannah is the fourth busiest US port so commerce and containerized cargo shipments are slightly impacted.

The FBI is investigating sniper attacks against a Pacific Gas and Electric substation in California last year. Authorities believe the attacks may have been terrorism so fears increase over potential future attacks on the electric infrastructure. Decades ago, troubled individuals would shoot out transformers more frequently in the US, but these folks were committing vandalism and otherwise needed mental help, so the jury remains out that the attack on this Silicon Valley transformer station was terrorism. Smart grid and other power-type companies provide long trading opportunities in light of this electrical infrastructure concern.