WEDNESDAY 4/16/14; BAC; USB; Housing Starts; Industrial Production; Fed Chair Yellen Speaks; Beige Book; AXP; GOOG; IBM

China’s Q1 GDP is 7.4% beating the 7.3% estimates and relaxing fears of a drastic slowdown or hard landing. IMF’s Lagarde’s warning of a hard landing appears unwarranted. Growth is slowing but at a very slow rate. The data creates an upbeat mood in Asia as traders believe the Chinese economy is stabilizing. The dollar/yen continues higher from yesterday launching above 102 to 102.20. Banzai! The BOJ weakens the yen to pump the stock market higher. NIKK catapults +3%. Topix +2.7%. BOJ Governor Kuroda says stimulus is not imminent but remains committed to an inflation rate target of 2% within one year’s time. To meet this goal traders expect more BOJ stimulus within two or three months which sends equities higher. Aussie dollar 0.9352.

World markets take on a joyous tone overnight with the happy China news and promises of more sugar candy from the BOJ. 



[Text is Redacted: Purchase April 2014-04 to Read the Complete Chronology]

New York Attorney General Schneiderman subpoenas six HFT firms including Jump Trading, Chopper Trading, Tower Research and three others with potentially more coming. The high-frequency trading clamp-down begins. At issue is the relationship and interaction between the HFT firms and the exchanges. Dark pools are also under investigation.

Detroit sets up an eBay style web site to liquidate city property as part of its bankruptcy plan. The houses are mainly shells that have been stripped by thieves scrapping metal and stealing any of the contents worth money. Investors and folks that are trying to fix-up and renovate Detroit homes are victims of further theft which makes rehabilitation impossible and chases away any potential buyers.

Japan’s demographics continue to show a shrinking and aging population. The elderly are 25% of the total population for the first time ever. An ever-larger burden is placed on young people as the older folk’s population and pensions must be supported on their backs. Japan’s population is shrinking for three consecutive years.