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WYNN/OKADA ROUND 2: A KNOCKOUT?

We doubt it.  Hard to believe Mr. Universal will settle for even close to a 30% haircut and a 2% decade long promissory note.

 

 

The sell side will portray this as a leveraged recap of Wynn Resorts.  Under the current terms, we calculate 16% earning accretion in 2012 and 20% in 2013.  On a free cash flow basis, the accretion looks even better – almost 20% for this year.  Not bad but also not realistic.  Okada doesn’t strike us as the kind of dude who is going to bend over and take a 30% haircut to the value of his shares along with payment in the form of a 2% yielding 10 year promissory note.

 

The move by the WYNN Board of Directors appears unprecedented.  Ultimately, the relationship is unsustainable and we suspect the two warriors will reach some sort of a settlement - eventually.  However, we think WYNN will have to pony up more cash and significantly narrow the discount.  Under any believable scenario, the transaction will still be accretive to EPS and FCF per share, just not at the levels discussed above or by the Street.

 

The big tail risk here is that Okada retaliates.  He has a history of being litigious and an airing of dirty laundry won’t be a positive for the Wynn brand both with customers and regulators (see http://www.bloomberg.com/news/2012-02-21/okada-takes-court-experience-to-wynn-fight.html).  Come to think of it, it may not be a positive for any US gaming company operating overseas.

 

WYNN will hold a 9am conference call this morning to discuss.


THE M3: OKADA CASE; SCC; CHANGI TRAFFIC; CPI; LRT TAIPA; SHERATON; CHINA HOME PRICES

The Macau Metro Monitor, February 21, 2012

 

 

WYNN DIRECTOR COULD FACE MACAU BRIBERY CHARGES Macau Daily Times

Wynn Macau director Kazuo Okada may face bribery charges after a probe by Wynn Resorts uncovered alleged improper payments to Philippine gaming officials.  WYNN has asked Okada to quit the board and filed a lawsuit in Nevada State against Okada and two of his companies for breach of fiduciary duty and related offenses.  WYNN said it found “more than three dozen instances over a three-year period in which Mr. Okada and his associates engaged in improper activities...in apparent violation of U.S. anti-corruption laws”.  Sources say the probe was carried out on the ground by a local company linked to the gaming industry and that the report’s conclusions have been sent to the US judicial bodies.

 

Okada told the investigators he was not aware of the payments, which he claimed were made by his employees.  One employee was fired and another resigned over the incident, he added.  The Japanese businessman also said he had launched an investigation and would ask the Filipino officials to return the payments and gifts.  One of his companies, Universal Entertainment, a Japanese pachinko machine maker, said it would “take all legal actions necessary to protect its investment in Wynn."

 

According to the local Commercial Code, Wynn Macau can only remove a director through a shareholder vote.  However, a WYNN spokesperson said, “the board of directors of Wynn Macau can vote to remove a director for cause”.


The Gaming Inspection and Coordination Bureau (DICJ) said it was informed of the incident by Wynn Macau even before Wynn Resorts made a public statement.  “We have already asked for more information and our legal advisors will look into these allegations and whether there was any breach of Macau laws, gaming licenses or concession contracts,” DICJ director Manuel Joaquim das Neves said.  Wynn Macau has assured the gaming regulator that the decision and the ongoing legal dispute with Okada “will in no way affect the normal operation of the company,” he added.

 

Wynn Resorts said it redeemed the 24 million shares held by Aruze USA, a slot-machine company controlled by Okada’s Universal Entertainment, at 'fair value' and issued a 10-year USD 1.9 billion promissory note for the stock.

 

SANDS COTAI CENTRAL OPEN FOR RESERVATIONS Macau Daily Times

Sands Cotai Central which will open in April, has begun accepting accommodation reservations.  Guests can begin booking rooms and suites at Conrad and Holiday Inn for stays from May 2.

 

The first Phase of the opening of the Cotai development will feature 600 rooms and suites from Conrad, and over 1,200 guestrooms and suites from Holiday Inn.  When Sands Cotai Central is fully completed in 2013, Sheraton will offer an additional 4,000 guestrooms and suites, bringing the total to nearly 5,800 rooms and suites.

 

MONTHLY BREAKDOWN OF PASSENGER MOVEMENTS Changi Airport Group

January 2012 passenger traffic increased 12.1% YoY.

 

THE M3: OKADA CASE; SCC; CHANGI TRAFFIC; CPI; LRT TAIPA; SHERATON; CHINA HOME PRICES - singapore

 

MACAU CONSUMER PRICE INDEX FOR JANUARY 2012 DSEC

January CPI increased 6.8% YoY and 0.93% MoM.  

 

LRT TAIPA WORKS START TOMORROW Macau Daily Times

The construction works for the first Light Rapid Transit route in downtown Taipa will start tomorrow but the Transportation Infrastructure Office (GIT) has pledged to minimize the impact on traffic.  The two-kilometer project, which will include five stations – Ocean Gardens, Macau Jockey Club, Macau Stadium and one between the old Taipa village and the Galaxy Macau resort – will cost MOP 489 million.  The works should be ready around May 2015.

 

SHERATON MACAO HOTEL RECRUITING STAFF FOR OPENING IN SEPTEMBER 2012 Macau Daily Times

Sheraton Macao Hotel, which plans to open in September 2012, has announced a large-scale recruitment drive for the local market from March 2-4.  The 3,863-room Sheraton Macao Hotel will be both the largest hotel in Macau and in the over 1,000-strong portfolio of hotels and resorts owned by Sheraton.  The hotel will be set over two towers with access to over 20,000 square meters of flexible meeting space and is a good place for large-scale association, meetings and incentive groups and events of all sizes.  Recreational facilities include a Spa, three pools surrounded by 12,000 square meters of deck space, as well as fitness and kid’s entertainment programmes.

 

CHINA JANUARY HOME PRICES POST WORST PERFORMANCE IN A YEAR Bloomberg

Prices in 47 of the cities fell, while home values in the remaining 23 were unchanged from December, the National Statistics Bureau said.  New home prices in the nation’s four major cities of Shanghai, Beijing, Shenzhen and Guangzhou declined for a fourth month.


Corridors of Power

This note was originally published at 8am on February 07, 2012. INVESTOR and RISK MANAGER SUBSCRIBERS have access to the EARLY LOOK (published by 8am every trading day) and PORTFOLIO IDEAS in real-time.

“Inspired by a common creed, the young Keynesians sought each other out in the corridors of power.”

-Nicholas Wapshott

 

Picture that. I just love the drama associated with that quote by Nicholas Wapshott in Chapter 11 of “Keynes Hayek” titled Keynes Takes America. He was referencing meetings these guys would have in Washington at the National Planning Association in the early 1930s.

 

A National Planning Association!

 

Back to the Global Macro Grind

 

Evidently we are now centrally planning a tax on not only American Savers, but Global Consumers too. Nice.

 

The price of Brent Oil is up almost +6% ($115.95/barrel this morning) since The Bernank’s decision to pander to the Corridors of Power and adopt his conflicted and compromised 0% rate or return for American Savers through 2014.

 

This is not new, but since President Obama took office in January of 2009:

  1. The US Dollar Index = down -8.3%
  2. The Price of Oil = up +165.8%

Now before you get all heated for my using the name Obama (my wife and I voted for him – team vote), long-time readers of my morning rants will recall that I was equally critical of President Bush’s Keynesian Policies to Inflate. Democrat or Republican in this country, if you’ve been economically “advised” in the last decade within the Corridors of Power, you’ve been Keynesed.

 

So how is that working out for you?

  1. The net jobs added during the Bush/Obama decade in America = 0
  2. The Price of Oil = +460% in the last decade (since February 2002)
  3. Your Savings Account has been given The Gold Finger (Gold up for 11 consecutive years)

But say nothing of these common Keynesian Creeds because political life is easier that way. Or is it? And for whom?

 

Broadening our horizons beyond the World Bank and IMF’s headquarters (right next to the Fed in Washington, DC), what’s happening in the rest of the world right now (particularly in the East) is that, ironically enough, 80 years later, young economists are gathering at their own meetings – Hayekians, Thatcherites, and Chaos Theorists – all of them. They don’t believe in National Planning Boards.

 

Look at what’s going on outside of the Corridors of Washington Power this morning:

  1. The Prime Minister of Singapore is warning of a “rough landing” in China if food/energy inflation re-accelerates
  2. The head of the Reserve Bank of Australia, Glenn Stevens, refused to cut interest rates on his citizenry’s savings accounts
  3. Greece

What about Greece? It’s literally the first time in 2012 that all 3 of the Most Read headlines on the Bloomberg machine are about Greece this morning. Now that the Greek stock market is down -54% since February of last year when your local Keynesian strategist was telling you Greece was a “one-off” and Global Growth was “going to be fine”, I guess it matters…

 

Or does it?

 

Bloomberg news also reports this morning that the “Irish Urge Children to Leave Amid Job Losses.” Great.

 

The Global Zeitgeist on these macro matters is fairly straight forward. No one trusts that any one of these aging Keynesians will get it right in the end. That’s one of the many reasons why the US Labor Participation Rate in last week’s glorified employment report hit a 30-year low. People are giving up.

 

Keynes nailed it – in the long-run, all of the politicians will be dead. That said, in the short-run the rest of us have to live.

 

Larry Kudlow asked me last night where I see the immediate-term economic pressure (growth expectations falling as inflation expectations are rising). With Energy stocks (XLE – we’re long inflation expectations) up +1.2% on the day and the SP500 flat, it was fairly obvious yesterday. That was good for my P&L – not good for the country.

 

Long-term US Treasury yields have been signaling Growth Slowing since Ben Bernanke made his move on January 25th. Just when free markets were getting ready to bust a move above my key intermediate-term TREND line of 2.03% resistance on the 10-year, boom – we got Bernanked.

 

Being Keynesed or Bernanked may be good for short-term stock sector and commodity market inflations, but they’re not good for the long-term economic health of this or any other consumption led economy.

 

My immediate-term support and resistance ranged for Gold, Oil (Brent), EUR/USD, Energy (XLE), 10-year UST Yield, and the SP500 are now $1704-1762, $112.56-115.93, $1.30-1.32, $71.93-73.76, 1.80-1.96%, and 1325-1348, respectively.

 

Best of luck out there today,

KM

 

Keith R. McCullough
Chief Executive Officer

 

Corridors of Power - Chart of the Day

 

Corridors of Power - Virtual Portfolio


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TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS

*Interbank risk throws off mixed signals. Euribor-OIS continues to improve, but the TED Spread saw a sharp reversal in the final two days of trading last week. Interbank risk, both US and European, have been among the most important factors to monitor in the last several months. We would look to the next round of LTRO on 2/29 as the next significant milestone/catalyst on this front. Moreover, we would expect that with Greece in the rear view mirror, interbank risk should recede further in the short term. Euribor-OIS tightened 2 bps last week, while the TED spread tightened less than a basis point.

 

* High yield rates sank to a new YTD low on Friday. This is both a risk gauge as well as a reflection of the Fed's policy to pay zero for the foreseeable future.   

 

*European Bank CDS widened last week with the majority of the widening coming from banks in Sweden, The United Kingdom, and Spain. 

 

Financial Risk Monitor Summary  

• Short-term(WoW): Negative / 2 of 12 improved / 3 out of 12 worsened / 7 of 12 unchanged

• Intermediate-term(WoW): Positive / 6 of 12 improved / 2 out of 12 worsened / 4 of 12 unchanged  

• Long-term(WoW): Negative / 0 of 12 improved / 7 out of 12 worsened / 5 of 12 unchanged

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - Summary 

 

1. US Financials CDS Monitor – Swaps widened for 14 of 27 major domestic financial company reference entities last week.   

Widened the most WoW: MS, ACE, GS

Tightened the most WoW: RDN, MTG, JPM

Widened the most MoM: ACE, MBI, CB

Tightened the most MoM: RDN, GNW, SLM

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - CDS  US

 

2. European Financials CDS Monitor – Bank swaps were wider in Europe last week for 24 of the 40 reference entities. The median widening was 2.6%.

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - CDS  Euro

 

3. European Sovereign CDS – European Sovereign Swaps mostly widened over last week. American sovereign swaps tightened by 8.7% (-4 bps to 37) and Spanish sovereign swaps widened by 3.8% (14 bps to 374).

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - Sov CDS 1

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - Sov CDS 2

 

4. High Yield (YTM) Monitor – High Yield rates fell 5.0 bps last week, ending the week at 7.32 versus 7.37 the prior week.

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - HY

 

5. Leveraged Loan Index Monitor – The Leveraged Loan Index fell 1 point last week, ending at 1634.

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - LLI

 

6. TED Spread Monitor – The TED spread fell 0.8 points last week, ending the week at 41.4 this week versus last week’s print of 42.2. However, it's worth noting that in the last two days the TED Spread has backed up notably. As of this morning, it widened to 41.6. We'll be keeping an eye on this. For reference, its European cousin, Libor-OIS showed steady improvement.

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - TED

 

7. Journal of Commerce Commodity Price Index – The JOC index fell 1.3 points, ending the week at -10.8 versus -9.5 the prior week.

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - JOC

 

8. Euribor-OIS spread – The Euribor-OIS spread (the difference between the euro interbank lending rate and overnight indexed swaps) measures bank counterparty risk in the Eurozone. The OIS is analogous to the effective Fed Funds rate in the United States.  Banks lending at the OIS do not swap principal, so counterparty risk in the OIS is minimal.  By contrast, the Euribor rate is the rate offered for unsecured interbank lending.  Thus, the spread between the two isolates counterparty risk. The Euribor-OIS spread tightened by 2 bps to 69 bps last week.

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - Euribor OIS

 

9. ECB Liquidity Recourse to the Deposit Facility – The ECB Liquidity Recourse to the Deposit Facility measures banks’ overnight deposits with the ECB.  Taken in conjunction with excess reserves, the ECB deposit facility measures excess liquidity in the Euro banking system.  An increase in this metric shows that banks are borrowing from the ECB.  In other words, the deposit facility measures one element of the ECB response to the crisis.  

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - ECB liquidity

 

10. Markit MCDX Index Monitor – The Markit MCDX is a measure of municipal credit default swaps. We believe this index is a useful indicator of pressure in state and local governments. Markit publishes index values daily on six 5-year tenor baskets including 50 reference entities each. Each basket includes a diversified pool of revenue and GO bonds from a broad array of states. We track the 14-V1. Last week spreads widened , ending the week at 127 bps versus 123 bps the prior week.

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - MCDX 2

 

11. Baltic Dry Index – The Baltic Dry Index measures international shipping rates of dry bulk cargo, mostly commodities used for industrial production. Higher demand for such goods, as manifested in higher shipping rates, indicates economic expansion. Last week the index rose 2 points, ending the week at 717 versus 715 the prior week.

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - Baltic Dry

 

12. 2-10 Spread – We track the 2-10 spread as an indicator of bank margin pressure.  Last week the 2-10 spread widened to 173 bps, 2 bps wider than a week ago.

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - 2 10

 

13. XLF Macro Quantitative Setup – Our Macro team’s quantitative setup in the XLF shows 0.5% upside to TRADE resistance and 2.2% downside to TRADE support.

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - XLF  

 

Margin Debt -  December

We publish NYSE Margin Debt every month when it’s released. NYSE Margin debt hit its post-2007 peak in April of 2011 at $320.7 billion. The chart below shows the S&P 500 overlaid against NYSE margin debt going back to 1997. In this chart both the S&P 500 and margin debt have been inflation adjusted (back to 1990 dollar levels), and we’re showing margin debt levels in standard deviations relative to the mean covering the period 1. While this may sound complicated, the message is really quite simple. First, when margin debt gets to 1.5 standard deviations or greater, as it did last April, that has historically been a signal of extreme risk in the equity market - the last two times it did this the equity market lost half its value in the ensuing period. We flagged this for the first time back in May 2011. The second point is that margin debt trends tend to exhibit high degrees of autocorrelation. In other words, the last few months’ change in margin debt is the best predictor of the change we’ll see in the next few months. This is important because it means that margin debt, which retraced back to +0.53 standard deviations in November, still has a long way to go. We would need to see it approach -0.5 to -1.0 standard deviations before the trend runs its course. There’s plenty of room for short/intermediate term reversals within this broader secular move, as we saw in November and December's print of +0.55 and +0.53 standard deviations.  Overall, however, this setup represents a headwind for the market. One limitation of this series is that it is reported on a lag.  The chart shows data through December.

 

TUESDAY MORNING RISK MONITOR: EURIBOR-OIS AND THE TED SPREAD A STUDY IN CONTRASTS - Margin Debt


THE HEDGEYE DAILY OUTLOOK

TODAY’S S&P 500 SET-UP – February 21, 2012


As we look at today’s set up for the S&P 500, the range is 13 points or -0.82% downside to 1350 and 0.13% upside to 1363. 

 

SECTOR AND GLOBAL PERFORMANCE

 

THE HEDGEYE DAILY OUTLOOK - one

 

THE HEDGEYE DAILY OUTLOOK - two

 

THE HEDGEYE DAILY OUTLOOK - three

 

 

EQUITY SENTIMENT:

  • ADVANCE/DECLINE LINE: 432 (-1109) 
  • VOLUME: NYSE 897.31 (11.36%)
  • VIX:  17.78 -7.49% YTD PERFORMANCE: -24.02%
  • SPX PUT/CALL RATIO: 2.31 from 1.45 (59.31%)

CREDIT/ECONOMIC MARKET LOOK:


10yr YIELD – this is the 2nd time this year that we’ve seen an intraday test of our 2.03% intermediate-term TREND line for 10yr Treasury yields. A sustained close > than this line could tip flows from bonds to stocks. But we need to see this confirm for at least 3 weeks in a row, not 6 hours. 

  • TED SPREAD: 41.68
  • 3-MONTH T-BILL YIELD: 0.08%
  • 10-Year: 2.03 from 2.00
  • YIELD CURVE: 1.74 from 1.71 

MACRO DATA POINTS (Bloomberg Estimates):

  • 8:30am: Chicago Fed, Jan., est. 0.22 (prior 0.17)
  • 11am: Export inspections: corn, soybeans, wheat
  • 11:30am: U.S. to sell $33b 3-mo., $31b 6-mo. bills
  • 1pm: U.S. to sell $35b 2-yr notes 

GOVERNMENT:

    • IAEA Inspectors return to Iran, Feb. 21-22
    • House, Senate not in session 

WHAT TO WATCH: 

  • Greece won a second bailout after European governments wrung concessions from private investors; European finance ministers approved $173b in aid
  • Japanese billionaire Kazuo Okada, forced to sell stake in Wynn Resorts at discount, pledged to fight to protect his investment
  • URS Corp. agreed to buy Flint Energy Services for C$1.25b
  • Misys received rival bid from Vista Equity Partners, challenging previous agreement with Temenos
  • TNT Express, in talks with UPS on takeover bid, said it plans to refocus operations in Europe
  • FDA hosts media briefing on progress on drug shortages, noon
  • China Telecom becomes second carrier in China to offer iPhone
  • Barnes & Noble may give update on plans for its Nook e- reader unit when it reports 3Q results today
  • Alibaba 4Q net income trails est.
  • No U.S. IPOs scheduled: Bloomberg data 

EARNINGS:

    • Medco Health Solutions (MHS) 5:55 a.m., $1.17
    • Dollar Thrifty Automotive Group (DTG) 6 a.m., $0.75
    • Home Depot (HD) 6 a.m., $0.42
    • Mylan (MYL) 6 a.m., $0.50
    • Kraft Foods (KFT) 6:30 a.m., $0.57
    • Rockwood Holdings (ROC) 6:30 a.m., $0.79
    • Cracker Barrel Old Country Store (CBRL) 7 a.m., $1.14
    • Dana Holding (DAN) 7 a.m., $0.38
    • Wal-Mart Stores (WMT) 7 a.m., $1.45
    • RadioShack (RSH) 7 a.m., $0.12
    • Medtronic (MDT) 7:15 a.m., $0.84
    • Clear Channel Outdoor Holdings (CCO) 8 a.m., $0.10
    • Macy’s (M) 8 a.m., $1.65
    • Saks (SKS) 8 a.m., $0.14
    • Barnes & Noble (BKS) 8:30 a.m., $0.92
    • Genuine Parts Co (GPC) 8:33 a.m., $0.83
    • Expeditors International (EXPD) 9 a.m., $0.47
    • Intuit (INTU) 4 p.m., $0.45
    • Nabors Industries Ltd (NBR) 4 p.m., $0.50
    • Chesapeake Energy (CHK) 4:01 p.m., $0.59
    • Dell (DELL) 4:01 p.m., $0.52
    • Brocade Communications Systems (BRCD) 4:04 p.m., $0.13
    • Newfield Exploration Co (NFX) 4:04 p.m., $1.02
    • HCC Insurance Holdings (HCC) 5 p.m., $0.67
    • Range Resources (RRC) 5:06 p.m., $0.30

COMMODITY/GROWTH EXPECTATION (HEADLINES FROM BLOOMBERG)


OIL – never in the history of Global Consumption has $100 handle per barrel (pick your flavor) not slowed Consumption. On the margin is where discretionary consumption matters and if we push toward $5 at the pump, we think you’ll see this time is not different. After being long Consumer Discretionary (XLY) for most of December-January (on Strong Dollar = Strong Consumption), we shorted it on Friday. 

  • Record Rice Crop Boosting Stockpiles to Decade High
  • Oil Trades Near Nine-Month High as Europe Reaches Greek Aid Deal
  • Copper Gains for a Second Day as Greece Wins Another Bailout
  • Commodities Rally to Highest in More Than Six Months on Greece
  • Soybeans Gain on Dry Weather in South America, China’s Purchase
  • Gold Imports by India Seen Declining From Record on Prices
  • Australia Seen Gaining Asian Wheat Market Share From U.S.
  • Robusta Coffee Falls as Vietnam Sales May Advance; Cocoa Rises
  • Gold May Gain a 2nd Day as Commodities Climb on Greece Bailout
  • Copper Imports by China Decline for First Time in Eight Months
  • Coal to India Beating China on Supply Shortfall: Energy Markets
  • BP’s Maple Bonds Expose Drought Carney Frets: Canada Credit
  • Russia Has Enough Grain to Continue Exports, Minister Says
  • Raw Materials Rally as Greece Wins Bailout
  • Oil Profits Slide Fastest Since Lehman Collapse on Gas: Energy
  • Billionaire Fredriksen Sees Golar LNG Rates Surging: Freight 

THE HEDGEYE DAILY OUTLOOK - four

 

 

CURRENCIES


THE HEDGEYE DAILY OUTLOOK - five

 

 

EUROPEAN MARKETS


FRANCE – now that we have a +18% German DAX rally (YTD) out of the way (Greece was +23% at its YTD peak), we can focus on separating the weak parts of European growth from the strong (Germany). France’s CAC40 fails to breakout above its long-term TAIL of 3565 resistance again. Growth Slowing in France is a major problem – so is Hollande’s continued momentum in the polls vs Sarkozy.


THE HEDGEYE DAILY OUTLOOK - six

 

 

ASIAN MARKETS

 

THE HEDGEYE DAILY OUTLOOK - seven

 

 

MIDDLE EAST


THE HEDGEYE DAILY OUTLOOK - eight

 

 

 

The Hedgeye Macro Team

 



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