SUNDAY 2/9/14

Iran is sending warships towards the US border but no one considers the move any great threat. Russia officials say the Bitcoin and other virtual currencies are not acceptable as a parallel currency and are illegal. The Sochi Olympics continue to generate lots of press but for the wrong reasons with more negative stories highlighting unfinished hotels, undrinkable brown water and poorly managed games. A situation grows tense at one venue as spectators, with tickets, are forced to wait for hours before entering the stadium. The news that Russia has surveillance cameras in the bathrooms and showers of hotel rooms sets a creepy tone for the games.

DG stores place banners above store fronts advertising low cigarette prices. Dollar stores, rival drug store chains and other cigarette sellers are capitalizing on the CVS decision to no longer carry cigarettes and tobacco products in stores. The Savannah rubber plant fire continues spewing black smoke across Georgia.

Australia continues to fight rampant wild fires due to the ongoing drought conditions. The dollar/yen jumps to 102.60. NIKK jumps higher at the open due to the weaker yen as usual. Japan exports are weaker than expected, however, despite the BOJ destroying the value of the yen which should increase exports. HSBC says output growth from emerging markets is slowing so those expecting an export-led growth pattern from EM are likely mistaken.