(BFW) RATES: Fed is ‘Clearly On Hold’ for Rest of 2015, Di Galoma Says


RATES: Fed is ‘Clearly On Hold’ for Rest of 2015, Di Galoma Says
2015-04-03 12:43:58.0 GMT


By James Holloway
(Bloomberg) -- “Fed is clearly on hold for the balance of
the year,” ED&F Man head of rates/credit Tom Di Galoma writes
in note.
* “They have may trouble raising rates in 2016 at this pace.
There is no inflation and until that is seen the Fed will be
sidelined for months to come”
* “Bottom line here, this is not a positive report for
the US economy”
* “Bottom line here, this is not a positive report for
the US economy”</li></ul>



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(BFW) Bill Gross Sees 1 Fed Rate Increase in 2015


Bill Gross Sees 1 Fed Rate Increase in 2015
2015-04-03 12:51:45.249 GMT


By Tom Kohn
(Bloomberg) -- Gross says obviously the economy is cooling,
very bullish on Treasuries.
* Gross says Yellen to go gradually, Fed raising rates 50bps
per year would put rates at 2% in 2018
* Janus Capital’s Gross comments in Bloomberg TV interview
* NOTE: U.S. March nonfarm payrolls miss ests. Link


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WSJ : A Brief History of the Iranian Oil Industry


A Brief History of the Iranian Oil Industry
Oil discovery in 1908 laid foundation for oil industry and BP

In 1908, the Anglo-Persian oil company struck oil at Masjid-i-Suleiman in the southwest of modern day Iran, the end of a seven-year odyssey of dry holes, disease and mounting debts. The discovery laid the foundations for the company that would one day become BP PLC and the rise of one of the world’s biggest oil powers.

Over the last century, Iran has become one of the world’s largest oil producers and a hard-nosed hawk within the ranks of the Organization of the Petroleum Exporting Countries known for its frequent challenges to Saudi Arabia’s dominance of the oil cartel.

Now that the framework of an agreement to lift sanctions on Iran has been reached, the cloistered country could open up again soon. But its relationship with western oil companies has been checkered.

For 40 years after it was first discovered, Iranian oil flowed to Europe, fueling two world wars and building resentment in Iran over the exploitation of national resources by western companies. In 1951, Iranian Prime Minister Mohammed Mossadeq nationalized the oil industry, kicking out the company then known as Anglo-Iranian, now BP. That triggered a Western-sponsored coup, opened Iran to a new consortium of western companies and put the country on course for its 1979 revolution.

The rise of the Islamic Republic spelled the end of western participation in the Iranian oil industry until the late 1990s.

“It was kind of a very tumultuous and difficult history and it’s still very present in people’s minds today,” said Valerie Marcel, associate fellow at U.K.-based Chatham House.

Iran began opening up before the turn of the century, courting the expertise of international oil companies to help increase production. European oil companies invested billions of dollars in the country, eager to gain access to Iran’s vast reserves despite tough terms.

Within a decade the brief bonanza was over. European oil companies withdrew as the West tightened sanctions on the Islamic Republic in response to concerns over its nuclear program. Over the last few years Iran’s oil production has fallen from around 3.6 million barrels a day in 2011 to 2.8 million barrels a day in 2014.

“Some foreign companies may be eager to return, but Iran still has to overcome its reputation, retool contracts and convince the world they are—and will remain—open for business,” said Matthew Reed, an analyst at Washington-based consultancy Foreign Reports.

>>> US Close


Closing Market Summary: S&P 500 Ekes Out Slim Weekly Gain

The major averages eked out modest gains on Thursday after spending the day inside narrow ranges. The S&P 500 gained 0.4% while the Nasdaq Composite (+0.1%) underperformed. The market ended the abbreviated week on a mixed note with the S&P 500 adding 0.3% while the Nasdaq shed 0.1% for the week.

Today's session was very quiet with the S&P 500 bouncing between its 100- (2,060) and 50-day moving averages (2,073). The index settled in the top half of its trading range, but it is worth noting that many participants chose to forego the session, evidenced by light trading volume. To that point, fewer than 700 million shares changed hands at the NYSE floor.

Still, nine of ten sectors registered gains with telecom services (+0.9%) spending the day ahead of its peers. Meanwhile, the remaining three countercyclical groups posted slimmer gains. Notably, the health care sector (+0.2%) registered a modest gain despite intraday weakness in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 339.70, -0.38) shed 0.1%.

The relative weakness in biotechnology kept the Nasdaq Composite behind the S&P 500 while high-beta chipmakers also lagged. Micron (MU 26.72, -0.41) lost 1.5% after reporting a bottom-line beat and issuing below-consensus revenue guidance while the broader PHLX Semiconductor Index slipped 0.3%.

Conversely, chipmakers also pressured the technology sector (-0.1%), which was the only group ending in the red. The modest loss was not entirely due to weakness among microchip names as several large cap components like Google (GOOGL 541.31, -8.18), Microsoft (MSFT 40.29, -0.43), and Qualcomm (QCOM 67.97, -1.46) dropped between 1.1% and 2.1%.

Elsewhere among cyclical groups, the energy sector (+0.2%) settled just above its flat line while crude oil endured a volatile session before ending lower by 1.8% at $49.10/bbl. On a related note, leaders from six countries and Iran agreed on a general framework for a deal that will require Iran to reduce its uranium stockpiles in exchange for the removal of sanctions that are currently in place. The deadline for the final agreement has been pushed back to June 30.

Also of note, the consumer discretionary sector (+0.9%) finished ahead of other cyclical groups thanks to broad strength. Homebuilders rallied with the iShares Dow Jones US Home Construction ETF (ITB 28.61, +0.48) climbing 1.7% while media names like CBS (CBS 61.16, +1.54), Comcast (CMCSA 57.94, +0.88), and Time Warner (TWX 85.00, +2.20) also posted solid gains.

Treasuries spent the day in a steady slide from their early morning highs, sending the 10-yr yield higher by five basis points to 1.91%.

Economic data included ISM Index, Construction Spending, ADP Employment, and MBA Mortgage Index:
  • The ADP National Employment Report revealed that employment in the nonfarm private business sector rose by 189K in March while the consensus expected an increase of 225K 
    • The February reading was revised up to 214,000 from 212,000 
  • The ISM Manufacturing Index declined to 51.5 in March from 52.9 in February while thé consensus expected a decrease to 52.5 
    • Nearly all of the regional manufacturing surveys pointed toward a sharp deceleration in the national manufacturing index so the drop in the ISM Index shouldn't have been much of a surprise 
    • Production levels actually improved, albeit by a very small margin, as the related index increased to 53.8 in March from 53.7 in February 
  • Construction spending declined 0.1% in February after declining a downwardly revised 1.7% (from -1.1%) in January while the consensus expected a decline of 0.3% 
    • The unseasonably harsh winter weather conditions, which were blamed for a significant downturn in new housing starts, had little to no effect on overall construction levels 
      • Total private construction increased 0.2% in February after declining 1.1% in January 
  • The weekly MBA Mortgage Index rose 4.6% to follow last week's 9.5% spike
Tomorrow, the Nonfarm Payrolls report for March (consensus 250K) will be released at 8:30 ET even though the stock market will be closed.
  • Nasdaq Composite +3.2% YTD 
  • Russell 2000 +4.1% YTD 
  • S&P 500 +0.4% YTD 
  • Dow Jones Industrial Average -0.3% YTD 

RTR - Ex-Cheyne partner Massoud readies own hedge fund for Q3 launch- sources

(Reuters) - Former partner at hedge fund Cheyne Capital, Michel Massoud, is preparing to launch his own hedge fund in the third quarter of 2015, three sources familiar with the matter told Reuters.

Massoud, who co-managed Cheyne Capital's event driven hedge fund, is setting up Melqart Asset Management in London and will launch a similar fund, the sources said.

Event-driven funds look to profit from corporate events such as mergers and acquisitions.

Massoud, who left Cheyne in March 2014 after more than nine years at the firm, plans to launch with a start-up capital of about $100 million, the sources said.

(BFW) Former Cheyne Capital Partner Massoud Starting Own Fund: Reuters

Former Cheyne Capital Partner Massoud Starting Own Fund: Reuters
2015-04-02 15:15:40.933 GMT


By Joshua Fineman
(Bloomberg) -- Michel Massoud preparing to start hedge fund
in 3Q, Reuters said, citing 3 people familiar.
* Massoud managed Cheyne’s event driven fund
* New fund to be called Melqart Asset Mgmt; will be based in
London


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(BFW) O2 CEO Says European Phone Companies Needs More Consolidation

O2 CEO Says European Phone Companies Needs More Consolidation
2015-04-02 15:11:38.694 GMT


By Jim Silver and Amy Thomson
(Bloomberg) -- If Europe wants its mobile networks to be as
advanced as those in U.S., further wireless mergers are
necessary, CEO of Telefonica’s O2 unit, says in interview with
Bloomberg.
* European regulations need reforms to allow cross-border
mergers, which will support investment in new networks and
increasing wireless data use, Dunne said
* Bigger companies, like Telefonica and its peers with
operations in several countries, will then be in a
position to “roll up” some of the smaller operators
* “There’s a realization that you need in-country scale,
but you also need some European champions”
* “There’s a realization that you need in-country scale,
but you also need some European champions”</li></ul>
* NOTE: Telefonica agreed to sell its O2 unit in the U.K. to
Hutchison Whampoa for GBP10.25b last week
* “Scale is going to continue to be important and
increasingly important,” Dunne said, “we needed to be a
buyer or a seller”
* Dunne declined to comment on how a merged Three-O2 might
participate in cross-border deals

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