Anirudh Sethi Report

A month ago, Sarkozy was pissed that Merkel had dared to take the initiative over him and to ban naked CDS trading. Being a stubborn reactionary, this action only prolonged his inevitable decision to do the same (because politicians, being the wise Ph.D’s they are, realize fully all the nuances of screwing around with the financial ecosystem). However, looking at this week’s DTCC data, we have a feeling he may accelerate his decision to join the CDS-ban team. With a total of 456 million in net notional derisking, France was the top entity in which protection was sought in the past week. In a very quiet week, where the 5th most active name did not even make it past the $100 mm threshold, France was more than double the number two sovereign – Mexico (we are unclear if this is some sort of contrarian move to the Yuan reval, which Goldman was pitching as MXN positive, which means traders likely hedged by loading up on Mexican CDS). But what is probably most notable, is the sudden and dramatic appearance of China in the top 3rd position. Welcome China! And after tonight’s surprise PMI miss and the resulting market drubbing, we are confident within a week or two, China will promptly become a mainstay of the top 3, and will quickly rise to the top position, where it rightfully belongs. We are also confident those perennial Eastern European underdogs, Romania and Bulgaria will shyly make an entrance in the top 10 next week.

Some interesting action was also seen on the rerisking end, where Italy saw a whopping $1 billion+ in bearish positions get unwound. This is probably the single biggest weekly sov rerisking we have seen in months. Nonetheless, without any concrete news out of the boot, we assume this is merely profit taking after numerous week of consistent derisking. Greece, which nobody cares about, continues to see rerisking, which however in light of this week’s new record wides in 5 Year CDS, was somewhat unexpected.

Not shown on the table, but certainly in need of noting, was our very own state of California, which with 377 million in net derisking, was the 3rd most shorted entity of all. Is the last bastion of “all is well” propaganda about to fall?

Current account deficit widened to $13 billion in the March-quarter, compared with $12.2 billion in Oct-Dec, the Reserve Bank of India (RBI) said on Wednesday.

The Oct-Dec current account deficit was revised upwards to $12.2 billion from $12.03 billion that was announced in March.

The current account deficit stood at $1.2 billion in the Jan-March quarter of the fiscal year 2008-09.

The RBI said the balance of payments surplus in Jan-March was $2.1 billion, compared with a surplus of $1.8 billion in the Oct-Dec quarter.

The balance of payments had a marginal surplus of $0.3 billion in the corresponding quarter a year earlier, the bank said.

India’s merchandise trade deficit was $31.5 billion in the March-quarter as against an upwardly revised $31.1 billion in the December-quarter.

The merchandise trade deficit stood at $20.2 billion in Jan-March quarter of 2008/09.

Current account deficit widened to $13 billion in the March-quarter, compared with $12.2 billion in Oct-Dec, the Reserve Bank of India (RBI) said on Wednesday.

The Oct-Dec current account deficit was revised upwards to $12.2 billion from $12.03 billion that was announced in March.

The current account deficit stood at $1.2 billion in the Jan-March quarter of the fiscal year 2008-09.

The RBI said the balance of payments surplus in Jan-March was $2.1 billion, compared with a surplus of $1.8 billion in the Oct-Dec quarter.

The balance of payments had a marginal surplus of $0.3 billion in the corresponding quarter a year earlier, the bank said.

India’s merchandise trade deficit was $31.5 billion in the March-quarter as against an upwardly revised $31.1 billion in the December-quarter.

The merchandise trade deficit stood at $20.2 billion in Jan-March quarter of 2008/09.

Fox Business News’ Charlie Gasparino is reporting that Goldman Sachs (NYSE: GS) will likely settle the civil fraud case brought against the firm by the SEC for between $1 billion and $5 billion.

Goldman (GS) has been accused of misleading clients with regard to a synthetic CDO that the firm structured at the behest of hedge fund Paulson & Co. and subsequently sold to a German bank. Paulson took the short side of the trade.

Above is the 5 minute Line chart ,Just while updating look its freefall in stock.

Just see my targets for these stock ,I had written last week.Search now.

Updated at 20:36/6th May/Baroda

Russian prime minister Vladimir Putin appears to have forgotten his recent comments about reducing the state’s role in the economy.

As the The Wall Street Journal reported on Friday:

Russian Prime Minister Vladimir Putin said Friday that Renault SA’s stake in OAO AvtoVAZ could be diluted unless the French company helps bail out the failing Russian auto maker.

Renault’s $1 billion investment for a 25% stake last year was a landmark deal for Russia, representing the largest by a foreign company outside the energy sector. But the French car maker’s efforts to streamline production have stalled, and AvtoVAZ has struggled to pay suppliers and trim its bloated work force. Read more…

* Reliance Q1 net misses forecasts, down 11.5 pct

 * GRMs tumble over 50 pct, hurting earnings

 * Sees growth from new refinery, KG D6 production

Reliance Industries , India’s top energy firm, on Friday posted a larger-than-expected 11.5 percent fall in quarterly net profit, its third straight quarterly decline, as its refining margins more than halved.

Reliance said its net profit fell to 36.36 billion rupees ($754 million) from 41.1 billion a year ago.

Above result …now known to every street person !!Now what to expect on Monday ?

Chart indicates :Last close Rs.2021-July Future.

-1982—1961 are support points.Break below 1961 with volumes and trades for 5/10 minutes watch bloodbath of your life in this stock.Freefall upto 1854—–1833.

Students of Technical Analysis can see Hrly chart and watch out Triangle of  Rs.97.Triangle target is Rs.1891…….Sure to know more details send me mail at Anirudhsethi71@yahoo.com

Updating time :23:45 /Friday /24th July.

PEPSICO INC (NYSE: PEP)

PepsiCo Inc. and its largest bottler, Pepsi Bottling Group Inc., plan to spend $1 billion in Russia over the next three years, extending an investment in a key international market as the economy crimps growth in the U.S.

PepsiCo Chairman and Chief Executive Indra Nooyi announced the investment on a visit to Russia, which coincides with her attendance at a business summit called by U.S. President Barack Obama and Russian President Dmitry Medvedev.

Above is the Weekly chart and we are Highly Bullish on this stock.

Already broken triangle and it looks very soon will kiss $ 62-63 level.Any Panic….Buy this stock.

Two consecutive close above $61 or weekly close will take stock to $ 66-68 level.