In The News:
Buffet’s Grabbin Goldman.. Warren Buffet’s Berkshire Hathaway grabbed a bigger stake in Goldman Sahs (aka Goldman Socks) in exchange for letting go of his option, granted to him when he floated a loan to the company in 2008, to buy shares later at a below market costs later. Leave it to Buffet to masterfully create a new arrangement with Goldman where he can receive shares without deploying a dime to buy them. Don’t be fooled it was a win win for both parties. Warren got a bigger piece of the pie and Goldman got a huge boast to its reputation.
Bric Bank: The BRIC’s (Brazil, Russia, India, and China) are exploring establishing their own new development bank much like the IMF (International Monetary Fund) with a sharper focus on the nations involved. Capital plans have already been established with several different options along with a cap on counties contributions.
Ford Opposition: Ford’s CE ,Alan Mulally, oppose Japan’s entry into free trade talks with the United States. What will change his mind..? The Japanese to open its markets to more U.S. cars and measures to strengthen the yen. American Pride Baby!
Mixed Bag of Data: Economic reports out Tuesday failed to provide any clear direction how the economy is really doing. February Durable Goods Orders (Orders for goods that do not wear out quickly or have a lifespan of more than three years. Things like cars, planes, and computers) and S&P Case-Shiller home-price index were better than expected, but new-home sales for February and consumer confidence for March fell shy of estimates.
You’ve been slapped: The Federal Reserve slapped Citigroup’s hand with a consent order demanding the bank clean up their anti-money laundering procedure. The consent order, which followed similar orders last year from the Office of the Comptroller of the Currency and the FDIC, told Citigroup they failed to comply fully with the Bank Secrecy Act. The Act requires Banks to report suspicious actives. Citigroup has 60 days to submit a written plan detailing enhancements in compliance related to anti money laundering. Citibank is not alone in getting slapped; JPMorgan received the same order for the same issue in Jan.
Sharing Seeds: DuPont has agreed to pay Monsanto $1.75 billion as part of licensing agreement between the two companies. The new licensing agreement allows DuPont to sell genetically modified seed technology for corn and soybeans. The agreement puts aside the $ 1 Billion jury awarded to Monsanto for DuPont’s infringing on Monsanto’s patients.
In The Markets:
Asia: Following in the footsteps of the US, Markets in Asia were higher, with both the Japanese Nikkei and Shanghai Composite up 0.2 percent.
Europe: European markets rose Tuesday as investor took the encouraging data from the US as an excuse to take profits.
US: US markets continued their winning ways on Tuesday with the Dow closing in triple digits having its biggest gain in nearly three weeks. Investors took the mixed bag of economic data threw the bad out and kept the good.
DJIA: +111.90 14559.65 Nasdaq: +17.18 3252.48 S&P +12.08 15693.77
In Dinner or Drink:
Today we pick a drink to celebrate the Buffet/Goldman deal. One of my personal favorites…
Measure 1/4 cup of Whiskey in a graduated cylinder and pour into a glass carafe. Repeat with 2 tsp. of red vermouth. Add a few drops of angostura and ice cubes. Mix everything together with a long handle spoon. Pour into cup holding the ice back with the spoon.