Thursday, December 29, 2011

A few questions for God

A man dies and goes to Heaven. He gets to meet GOD and asks GOD if he can ask him a few questions.

 

"Sure," GOD says, "Go right ahead".

 

OK," the man says. "Why did you make women so pretty?"

 

GOD says, "So you would like them."

 

"OK," the guy says. "But how come you made their bodies so beautiful?"

 

"So you would LOVE them", GOD replies.

 

The man ponders a moment and then asks, "But why did you make some of them such airheads?"

 

GOD says, "So they would love you!"

 

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One City Plaza, 7th Floor

Corner of North Blvd & 4th Street

Exit 1B I-110 Convention Street, Turn Left to get to North Blvd

 

It's The Economy Stupid: Jobless Claims Good / Euro Bad

Okay, Initial Jobless Claims numbers are trending below 400K.  They came in at 381K and the prior period number had a minimal revision.  This is a good thing.

 

Economic Event

Period

Economic Survey

Actual Reported

Original Prior

Revised Prior

Initial Jobless Claims

24-Dec

375K

381K

364K

366K

Continuing Claims

17-Dec

3600K

3601K

3546K

3567K

 

I wish all the news were good, but it ain’t.  The Euro has fallen to a 10 year low versus the Yen as the Italian bond auction was ‘poorly’ received.  The Italian bond auction fiasco points to the continuing problem in Europe, one that has no end in sight.

 

The Euro decreased 0.7 percent to 100.16 Yen in New York trading. The 17-nation currency slipped 0.6 percent to $1.2862, the lowest versus the Dollar since September 2010. The yield on Italian 10-year bonds climbed seven basis points to 7.07 percent. Gold declined to a five-month low.  Gold fell as much as 2 percent to $1,524.80 an ounce, the lowest price since July 7.

Yield levels around 7 percent are absolutely not sustainable by Italy’s economy.

 

 

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One City Plaza, 7th Floor

Corner of North Blvd & 4th Street

Exit 1B I-110 Convention Street, Turn Left to get to North Blvd

 

Wednesday, December 28, 2011

The rich get richer!!!!

#1 Quarterback prospect commits.  It’s good to be a LSU fan.  Geaux Tigers!!!

 

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

 

From: Steve Clark [mailto:SCLARK@newground.com]
Sent: Tuesday, December 27, 2011 11:01 PM
To: Bobby Butcher; craig.clark@doerlefoodservice.com; Chris Kaupp; Doug Mills; Danny E. Gilder; Wilton, Douglas; dlmhughes@bellsouth.net; Debbie Lunn; David Lestage; Frank Duffy 770-367-2642; Gary Schoen; Greg Carr; Hal Strickland; Jeff Benard; Jeff Springmeyer; John Broussard; buras.kenneth@nola.sysco.com; mitchell.hale@pumpjack.com; Michael Blake; Neil Kool; palandrum@lusfiber.net; Pou, Michael; rosslandry@dsi-pbl.com; randy-hale@sbcglobal.net; sonny clark
Subject: The rich get richer!!!!

 

No. 1 QB Prospect Makes College Decision

Gunner Kiel

By Allen Trieu

Midwest Regional Manager
Posted Dec 27, 2011

 

| More


The nation's top-ranked quarterback, Columbus East (Ind.) senior quarterback Gunner Kiel, made his college decision on Tuesday, giving the LSU Tigers a belated Christmas present.


LSU offered Gunner Kiel last February, just after Signing Day, and by the time this year's National Signing Day rolls around, Scout.com's top-ranked quarterback will already be on campus, as he will enroll early at the Baton Rouge school.

Kiel, a 6-foot-4, 200-lb senior from Columbus East High School (Columbus, Ind.), chose the Tigers on Tuesday over Notre Dame, USC and Vanderbilt, although he held offers from nearly every major program in America. Over the summer, he verbally committed to Indiana but re-opened his recruitment in October.

Coming from a family of quarterbacks, Kiel has demonstrated his polish, intelligence, consistency and all-around feel for the position, and that's largely what makes him special. This is not a kid who picked things up late or was forced to play quarterback because he was his team's best athlete. He was born to be a signal caller.

"Ever since I was a little kid, that was my position," he said. "I love playing quarterback. I love the competitiveness of it. I grew up around it a lot. My uncle was a big-time quarterback. My dad played a little, and my other uncle played quarterback. It just kind of grew on me, and Drew and Dusty helped me a lot. From working out, going through footwork, throwing motion and all that, I learned a lot from them."

Scout.com's director of scouting, Scott Kennedy, has seen Kiel several times over the past two years and says he compares favorably to the last few quarterbacks who have topped the rankings.

"When comparing Gunner to the last few number one quarterbacks, I think he is the best pure thrower we've had in several years. The last couple of seasons has seen athletic quarterbacks at the top of the heap, including Jeff Driskel and Braxton Miller in 2011. He's got a stronger arm and better frame than Jake Heaps, who was No. 1 in 2010. If I go back a little farther, I don't think he's quite in the same league as Matt Barkley ('09) or Matthew Stafford ('06)."

His skill set may be special, but even more of a rarity has been Kiel's attitude and his approach to recruiting. In a time where recruits revel in their celebrity status and Tweet and Facebook with fans, sometimes with questionable results, this is one prospect who has abstained from that.

Past No. 1 quarterbacks like Jimmy Clausen have arrived to their announcements in stretch hummers. Terrelle Pryor took his decision past Signing Day and announced on national television. Kiel has done very few interviews and throughout his senior season, regularly put the focus on his team, a team he took to the state semifinals.

Columbus East head coach Bob Gaddis coached both of Kiel's brothers and Gunner has been with him on the varsity team since his freshman season, so he has seen his growth and believes the Tigers have a player with the attributes to step in early if necessary.

"He's very accurate," Gaddis said. "Being accurate throwing the ball down the field is one of his fortes. I think what he'll need to get much better at is checking the ball down and throwing that intermediate pass, which we've not done as much in high school. The fact he's got the mechanics, the arm strength, those kind of things, I think he's going to be able to come in and compete. In my opinion, I think he'll go in and be physically able to handle it."

And for reasons like that, Kennedy believes Kiel will bring new dimensions to the Tigers' offense.

"LSU hasn't always asked its quarterbacks to make plays throwing the ball. They've had excellent game managers who make throws when they have to and have good mobility from Matt Flynn to Jordan Jefferson, but they haven't had anyone who can stretch the field like Gunner can. LSU has always had play-making wide receivers, and having Gunner at the helm will not only enable them to get the ball down field more, it should also loosen up the defense and make their already terrific running game even more effective."

 

 

Stephen W Clark

Senior Vice President

Business Development

The Woodlands, Texas

NewGround

(314) 740-5115

sclark@newground.com

Visit us at: newground.com

 

breakthrough

IDEAS I SPACE I GROWTH

 

Please consider the environment before you print this email and/or its attachments.

 

Tuesday, December 27, 2011

White Pelicans on LSU Lake

I was walking the lakes this afternoon when I ran across this. This is a video I filmed with my iPhone. It's of white pelicans on the LSU Lake in Baton Rouge herding minnows up against the dam and then feeding on them.

You Tube link: http://www.youtube.com/watch?v=H-0oF4zA2Sg

John

Thursday, December 22, 2011

It's The Economy Stupid: Naughty or Nice?

JOBLESS CLAIMS DROP TO THE LOWEST LEVEL SINCE 2008!

 

NICE!  DEFINITELY NICE!

 

Wire: BLOOMBERG News (BN) Date: Dec 22 2011  7:30:01

Jobless Claims in U.S. Decrease to Lowest Since April 2008

 

 

By Timothy R. Homan

     Dec. 22 (Bloomberg) -- The number of applications for

unemployment benefits unexpectedly dropped last week to the

lowest since April 2008, a sign that the U.S. labor market is

strengthening heading into 2012.

     Jobless claims fell by 4,000 to 364,000 in the week ended

Dec. 17, Labor Department figures showed today in Washington.

The median forecast of 45 economists surveyed by Bloomberg News

projected an increase to 380,000.

     A consistent slowdown in firings lays the foundation for an

increase in employment that may bolster consumer spending, which

accounts for about 70 percent of the world’s largest economy. At

the same time, a possible recession in Europe and a political

stalemate in Washington regarding a payroll tax cut are making

some companies hesitant to boost hiring.

     “Most of the recent improvement in initial claims is

genuine and points toward stronger job growth this month,”

Aaron Smith, a senior economist at Moody’s Analytics Inc. in

West Chester, Pennsylvania, said before the report. “The

economy is ending 2011 on a positive note.”

 

Economic Event

Period

Economic Survey

Actual Reported

Original Prior

Revised Prior

Chicago Fed Nat Activity Index

NOV

-0.17

-0.37

-0.13

-0.11

GDP QoQ Annualized

3Q T

2.0%

1.8%

2.0%

-

Personal Consumption

3Q T

2.3%

1.7%

2.3%

-

GDP Price Index

3Q T

2.5%

2.6%

2.5%

-

Core PCE QoQ

3Q T

2.0%

2.1%

2.0%

 

Initial Jobless Claims

DEC 17

380K

364K

366K

368K

Continuing Jobless Claims

DEC 17

3600K

3546K

3603K

3625K

 

 

Season Greetings!  Happy Holidays!  Merry Christmas!  Happy Hanukkah!  Joyous Kwanzaa!

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One City Plaza, 7th Floor

Corner of North Blvd & 4th Street

Exit 1B I-110 Convention Street, Turn Left to get to North Blvd

 

Tuesday, December 20, 2011

FW: The Night Before The BCS

THE NIGHT BEFORE THE BCS
By: Ralph Bergeron...


Twas the nite
Before the BCS
And all through N'Awlins
The pits were a smoking
The crawfish boilin'

The banners were hung
In the Superdome with care
Knowing LSU & BAMA
Soon would be there

The Tigers were nestled
All safe in their beds
While visions of Shady's
Danced in their heads

And Nick with his pitchfork
And Les in his cap
Were drawing the game plan
No time for a nap

When out in the Quarter
There arose such a clatter
It startled Nick Satan
And Les the Mad Hatter

A guy yelled "Go Bama"
Another "Roll Tide"
The Tiger fans
Turned from Jekyll to Hyde

They shouted in Unison
Bama Sucks; Tiger Bait
For Bama was the team
They all loved to hate

Dusk turned to dawn
And fans stumbled home
In just a few hours
They'd all fill the dome

The game soon kicked off
It was lively and quick
Bama scored first
Which gladdened St. Nick

Les calmly bent down
And chewed on some turf
He wouldn't be outcoached
By a little red smurf

Now Jordan
Now Spencer
Now Kenny
Now O'Dell
On Reuben
On Russell
On Jarvis
Give em' hell!

To the end of the field
And into the zone
Let's go score some points
And bring the title home

The O started rolling
And soon they did score
The crowd went wild
Mike let out a roar

But the Tide seemed to beacon
The ghost of the Bear
And right before halftime
A kick sailed through the air

It soared through the uprights
Both mighty and true
Alabama had 10
To 7 for LSU

The bands took the field
And put on a show
The crowds hit the john
They all had to go

Meanwhile in the locker
Adjustments were made
The second half game plan
Was carefully laid

The second half kickoff
Went to the Tide
LSU tried to trick em
And kicked it onside

The Tide did recover
And started their drive
But the Tiger D stiffened
The crowd came alive

Between the Freak
And the kid named Mingo
They were all over the field
Like an old lady at Bingo

They went back and forth
A heavyweight battle
The fans got real nervous
But Les didn't rattle

Who would you trust
A coach who eats grass
Or one who looks distressed
As if he has gas

We should all thank St. nick
And bend on our knees
It was he who chose Culpepper
Instead of Drew Brees

The clock ticked down
Only 10 seconds to go
Bama punted the ball
Time to put on a show

He weaved through the Tide
As if they weren't there
They grasped at his jersey
And came up with air

He crossed the goal line
As the clock ticked to zero
Once again number 7
Was the LSU hero

The crowd did erupt
The journey was through
The National Champions
The Tigers of LSU

And I heard him proclaim
Over cheering and taunts
Honey Badger gets
What Honey Badger wants!

 

 

 

It's The Economy Stupid: The Year In Review

You will find below my favorite market analogy from 2011

 

------------------------------------

 

David Zervos

Global Head of Fixed Income Strategy

Jefferies & Company, Inc.

 

January 28, 2011

Charlie Sheen's dealer and Ben Bernanke

 

It appears that yesterday in Beverly Hills, America’s favorite TV comedian over committed to a late night party session

involving the most traditional of vices. A suitcase full of “punch” was delivered to his door step and the festivities went

into overdrive. While our beloved actor looks to be OK after a 48 hour bender, his story provides a useful reminder of the

consequences of gorging oneself at the punchbowl. It was the Fed Chairman in 50s and 60s, William McChesney Martin,

who famously said “It is the job of the Federal Reserve to take away the punch bowl just as the party gets going”. But

that is NOT the mantra of our modern day Fed. Ben Bernanke, just like Charlie Sheen’s dealer has arrived on everyone’s

door step with suitcase full of “punch”. He is pushing “risk on” - so go ahead make some risky investments and push

your consumption higher. It’s right there for the taking! And Ben am not taking that punch bowl away for a good long

while. We have a lot of partying to do with unemployment at 9.4% and core PCE below 1%. This Fed Chairman will not

let this economy go cold turkey into the 1930s.

 

Ben’s remedy for America’s last visit to the intensive care unit in 2008 is – you guessed it – to get on the juice again!

Much like the rollercoaster life of Charlie Sheen, the American economy is about go into full scale party mode. Ending in

the hospital is a given, but that's a long way off. The permanent damage from these juice binges are stomach pains for

Charlie and inflation for America - of course using the juice has costs! But the alternative of rehab and cold turkey is

simply too painful for either Charlie or America! So put your party hat on and get ready to ride the rollercoaster! It's

going to get crazy!!! Good luck trading.

 

 

 

 

 

 

 

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One City Plaza, 7th Floor

Corner of North Blvd & 4th Street

Exit 1B I-110 Convention Street, Turn Left to get to North Blvd

 

Friday, December 16, 2011

Beach Boys @ Jazz Fest

Add another name to the list of Jazz Fest performers

 

New Orleans Jazz & Heritage Festival

The founding members of The Beach Boys, one of the world’s most legendary bands in popular music history, will reunite for a global 50th Anniversary CELEBRATION in 2012 including a performance at the New Orleans Jazz & Heritage Festival! Beach Boys Brian Wilson, Mike Love, Al Jardine, Bruce Johnston, and David Marks will come together for a new studio album and commemorative catalog releases. We can't wait to see you during the first weekend of Jazz Fest!

 

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One City Plaza, 7th Floor

Corner of North Blvd & 4th Street

Exit 1B I-110 Convention Street, Turn Left to get to North Blvd

 

It's The Economy Stupid: CPI

Okay, inflation, commonly identified by the use of the governments Consumer Price Index (CPI), is trending up, depending on which CPI metric you use.  But it ain’t up a lot.

 

All I can say is that CPI obviously doesn’t shop at the same grocery store that I shop at.

 

 

Economic Event

Period

Economic Survey

Actual Reported

Original Prior

Revised Prior

Consumer Price Index   (MoM)

NOV

0.1%

0.0%

-0.1%

-

CPI Ex Food & Energy   (MoM)

NOV

0.1%

0.2%

0.1%

-

Consumer Price Index   (YoY)

NOV

3.5%

3.4%

3.5%

-

CPI Ex Food & Energy   (YoY)

NOV

2.1%

2.2%

2.1%

-

 

 

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One City Plaza, 7th Floor

Corner of North Blvd & 4th Street

Exit 1B I-110 Convention Street, Turn Left to get to North Blvd

 

Thursday, December 15, 2011

It's The Economy Stupid - Jobless Claims & PPI

Good numbers this morning.  Jobless claims headed downward.  That’s some good news.  Let’s hope it’s a trend that continues and not just a seasonal anomally.  PPI was a mixed bag, but the numbers look like they are firming up with prices trending upward.

 

Economic Event

Period

Economic Survey

Actual Reported

Original Prior

Revised Prior

Producer Price Index   (MoM)

NOV

0.2%

0.3%

-0.3%

-

PPI Ex Food & Energy   (MoM)

NOV

0.2%

0.1%

0.0%

-

Producer Price Index   (YoY)

NOV

5.8%

5.7%

5.9%

-

PPI Ex Food & Energy   (YoY)

NOV

2.9%

2.9%

2.8%

-

Initial Jobless Claims

10-Dec

390K

366K

381K

385K

Continuing Claims

3-Dec

3637K

3603K

3583K

3599K

 

 

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One City Plaza, 7th Floor

Corner of North Blvd & 4th Street

Exit 1B I-110 Convention Street, Turn Left to get to North Blvd

 

Wednesday, December 14, 2011

LSU Corners Market on AP All-American Cornerbacks

LSU corners market on AP All-American cornerbacks

 

By RALPH D. RUSSO, AP College Football Writer

 

 

NEW YORK (AP)—LSU’s Tyrann Mathieu and Morris Claiborne were selected to The Associated Press All-America team, making the top-ranked Tigers the first school with two cornerbacks on the first team.

 

The LSU corners were joined on the first team by Tigers punter Brad Wing. LSU guard Will Blackwell was a second-team selection and defensive end Sam Montgomery made the third team.

 

 

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One City Plaza, 7th Floor

Corner of North Blvd & 4th Street

Exit 1B I-110 Convention Street, Turn Left to get to North Blvd

 

It's The Economy Stupid: PIGS

PIGS – Portugal, Italy, Greece, Spain.  These days, if the news leads with Europe, it’s probably going to be a down day.  No matter how you cut it, someone is going to have to eat some European debt.  Clearly the markets don’t think that the European banks have the capital to write off 50% of the Greek, or Italian, or Spanish, or Portugese debt on their books.  Greece has $14.4 Billion of principal payments are due on March 20th. IF they can’t come up with the money (that’s almost a joke, AS IF they can come up with the money), then they will need more funding from the rest of Europe.  Add to that the fact that there is a lowered GDP estimate for Germany released today.  Many experts expect that at some point Germany going to take care of themselves and leave the PIGS to fend for themselves. 

 

 

Wire: BLOOMBERG News (BN) Date: Dec 14 2011  10:32:37

Stocks, Euro, Commodities Decline on European Debt Concern

 

 

By Stephen Kirkland and Allison Bennett

     Dec. 14 (Bloomberg) -- U.S. stocks fell for a third day,

the euro slid below $1.30 for the first time since January and

commodities sank as growing funding stress in Europe fueled

concern the region is struggling to contain the debt crisis.

     The Standard & Poor’s 500 Index fell 1.1 percent to

1,211.95 at 11:27 a.m. in New York and the Stoxx Europe 600

Index retreated 1.9 percent. The euro depreciated as much as 0.7

percent to $1.2946. Oil dropped the most since September and

gold slid below $1,600 an ounce for the first time since

October. Ten-year U.S. Treasury yields lost five basis points to

1.92 percent, while the rate on the the 30-year German bund

reached a euro-era record low of 2.38 percent.

     Italy’s five-year yield increased at an auction today,

default swaps protecting European sovereign debt traded near a

record high and borrowing costs climbed for banks in the region

as plans hashed out last week to create a closer fiscal union in

the euro zone fail to alleviate concern about the crisis.

     “We’re not seeing the developments unfold that show they

want to put an end to the crisis now,” said David Watt, senior

currency strategist at Royal Bank of Canada’s RBC Capital unit

in Toronto. “Talking about a fiscal union is now next to

useless because that would happen five years from now,” he

said. “As long as they continue to talk about issues that are

irrelevant, we’re going to continue to have a market that gives

the thumbs down to EU policy-maker efforts.”

 

                         Lower Forecast

 

     The euro slid against 10 of its 16 major peers. The Dollar

Index, which tracks the U.S. currency against those of six

trading partners, advanced 0.5 percent to 80.652, gaining for a

third day and reaching the highest level in 11 months. The krone

weakened against 13 of its 16 main counterparts after Norway cut

its benchmark rates by more than economists forecast as the euro

area’s debt crisis threatens growth.

     Gauges of energy and technology companies led losses in

U.S. stocks, falling more than 1.5 percent. Cisco Systems Inc.,

Caterpillar Inc. and Exxon Mobil Corp. dropped at least 2

percent to pace declines in the Dow Jones Industrial Average.

     Thirteen stocks declined for every one that gained in the

Stoxx 600. Logica Plc plunged 17 percent, the most since 2002 on

a closing basis, as the Anglo-Dutch computer-services provider

accelerated a reorganization after customers cut spending amid a

“tougher” economy.

 

                       No ‘Fast Solutions’

 

     German Chancellor Angela Merkel, during a speech to

parliament in Berlin, reiterated her opposition to euro bonds as

a tool for dealing with the region’s debt crisis. Merkel said

there’s no looking back after last week’s European summit deal

on stricter budget controls, with the path to fiscal union in

the euro region now “irreversible.”

     “There are no simple and fast solutions,” Merkel told

lower-house lawmakers.

     Plans led by France and Germany to amend European Union

rules and create closer fiscal union face misgivings from the

European Commission and potentially from some of the 26 member

states that agreed to the changes, the Handelsblatt newspaper

said. Merkel favors one accord to accommodate both the setting-

up of a permanent bailout fund and to usher in new stringent

budget constraints on euro-region countries, while the

commission wants two separate treaties, the newspaper reported,

citing EU President Herman van Rompuy.

     The cost for European banks to borrow in dollars rose for a

fifth day to the highest in two weeks, according to money-market

indicators. The three-month cross-currency basis swap, the rate

banks pay to convert euro payments into dollars, was 147 basis

points below the euro interbank offered rate, from 141 basis

points yesterday. The gap has widened by 38 basis points since

the European Central Bank cut its main interest rate on Dec. 8.

 

                           Libor Rises

 

     The London interbank offered rate, or the rate that London-

based banks say they pay for three-month loans in dollars, was

0.555 percent, according to the British Bankers’ Association,

rising for a fourth straight day and reaching the highest level

since July 2009. The dollar Libor-OIS spread, a gauge of banks’

reluctance to lend, was 46.5 basis points, from 46.0 basis

points.

     Italy’s 10-year yield increased 11 basis points to 6.79

percent. The government sold 3 billion euros ($3.9 billion) of

five-year bonds at an average yield of 6.47 percent, up from

6.29 percent on Nov. 14. French 10-year yields decreased eight

basis points to 3.19 percent.

     The Markit iTraxx SovX Western Europe Index of credit-

default swaps rose 6.7 basis points to 385.5.

     European Central Bank policy makers are becoming more

skeptical about the efficacy of the bank’s bond-purchase program

and the idea that the crisis can be tamed "through the printing

press" should be ignored, ECB council member Jens Weidmann said.

 

                        Treasury Auction

 

     Treasury 30-year yields lost six basis points to 2.95

percent before the nation sells $13 billion of the debt. A

three-year sale drew record demand on Dec. 12 and bidding

increased at a 10-year auction yesterday as investors sought a

haven from Europe’s debt crisis.

     Oil in New York declined 4.6 percent to $95.52 a barrel as

the Organization of Petroleum Exporting Countries agreed to

raise its production ceiling, moving the group’s supply target

nearer to current output levels.

     The MSCI Emerging Markets Index fell 1.4 percent, declining

for a fifth day. China’s Shanghai Composite Index retreated 0.9

percent after the Conference Board’s October leading indicator

index for the country fell 0.1 percent.

 

 

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One City Plaza, 7th Floor

Corner of North Blvd & 4th Street

Exit 1B I-110 Convention Street, Turn Left to get to North Blvd