THURSDAY 2/13/14; Retail Sales

Aussie jobless rate is at a one-decade high. The ASX 200 drops -2%. The Aussie dollar falls under 0.90. Rio Tinto reports strong profits but loses -2%. 40% of Rio’s revenue is from iron ore production. BNP Paribas loses -5% after missing on earnings, the weakest earnings in six years, due to legal penalties and charges. BNP employee bonuses are decreased. The dollar/yen drops (yen strengthening) so NIKK loses -2%. Commodities and oil sell off. WTIC crude oil drops under 100. Copper drops as China stockpiles rise on weaker demand. SoftBank dumps -3.5%. TM loses -2% due to the Prius recall. Lenovo posts strong profits but loses -1%. China’s property sector weakens and this negativity sends the SSEC down -0.5%. Treasury Secretary Lew voices concern over China’s ongoing cyber-theft of US technology. China’s lunar robot breaks down with mechanical problems and is unfixable which creates a junkyard on the moon. Kospi falls -0.5% and India sells off -0.6%. Indonesia growth slows.

Italian politics heat up sending the country to the brink again. Renzi threatens Letta’s leadership and at the same time Berlusconi’s party may make a comeback. Italy’s unstable politics may result in new elections and create negativity across the Euro zone. MIB -1.2%. Concern over economic turmoil in Spain is increasing daily with the IBEX losing -1%. The potential split of Scotland from ........




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After the bell, AIG beats on earnings and boosts the dividend but most importantly increases the buyback by $1 billion. Buyback is the magic word so AIG jumps +2% higher. BRCD beats and jumps +4%. WTW misses on earnings and guides lower shedding -19% of its weight. Federal offices and businesses will remain closed tomorrow due to the winter storm that moves up the East Coast. 6,700 flights are cancelled the most in over 3 years. Valentine’s Day is tomorrow and many dinner reservations will be cancelled. Retailers will lose more sales on a key spending holiday.

The Obamacare debacle continues. 55% of America wished the Obamacare law would never have passed. Oregon politicians call for a Federal probe into this State’s health exchange disaster in shambles. The back-end payment system for Obamacare remains unfinished. This is why the Whitehouse will not comment on how many enrollees have actually paid their premiums. Liberal constitutional law experts, typically friendly to the president, voice concern over the president changing the ACA law without Congressional approval. If no one questions his actions, future presidents will simply act as kings as well, and the US will experience a constitutional crisis. The president makes unconstitutional changes since the press and media do not care or question his actions.