Interesting developments to come - See what made the cut...|
Hurricane Sandy the Freaky Frankenstorm Barrels Toward New York Financial
No doubt that the wrath of Sandy will be front and center attention on
everyone's mind into the beginning of the week, especially the worlds hub of
financial centers, Wall Street. The storm slammed Jamaica and the Caribbeans,
where it left 21 dead due to the storm, before heading up the coast of Florida
where it packed a punch of strong winds and rain as it makes its path toward New
England. By Friday night, travelers were feeling the domino affects of cancelled
and delayed flights. Travelers should check with their airlines for flight
status, check carrier’s websites and sign up for alerts for real-time updates
for flight changes. Some of the nations most densely populated cities including
Baltimore, Philadelphia, New York, and Boston are on high alert. Wall Street has
put into place operational contingency plans, ahead of the storms arrival. Rich
Adamonis, a spokesman for the New York Stock Exchange (NYSE: NYX) , said
contingency plans are being drawn up. Spokesperson for Nasdaq OMX Group Inc.
(NASDAQ: NDAQ) said Friday the electronic equities exchange plans to continue to
operate despite the approach of Hurricane Sandy early next week. “We have fully
rehearsed business continuity plans for all critical operations including
facilities, market operations and key staff and stand ready to implement should
a situation necessitate,” said Nasdaq spokesman Ryan Wells.
“We will continue to monitor the situation and will notify customers, market
participants and our employees as appropriate,” emailed Damon Leavell, a
spokesperson for the CME Group (NASDAQ:CME) , which owns the NYME, where
crude-oil futures and other commodities are traded. “We have no immediate plans
to close the exchange,” said Leavell, who added that the CME’s Globex platform,
the exchange’s electronic trading system, is based in the Midwest, with backup
systems scattered in varying locations.
The Metropolitan Transportation Authority cancelled weekend subway work due to
the storm and laid out additional contingency plans. The MTA will shut down
service before the arrival of sustained winds of 39 miles per hour or higher.
“No decision has been made whether to suspend some or all service in advance of
the storm, but ample notice will be provided,” according to a statement from the
Reports are that New York Mayor Michael Bloomberg said the Big Apple has
activated its Office of Emergency Management situation room. Maryland and
Virginia have both declared states of emergency. Virginia Gov. Bob McDonnell’s
office said in a statement on Friday, “Based on our current forecasts, the
eastern third of Virginia could experience tropical storm force winds for more
than 48 hours, several inches of rain and coastal flooding.” Inland areas of
Virginia could see strong winds and significant rainfall, with strong likelihood
of extensive power outages, it said.
North Carolina state emergency management office said on its Facebook page on
Friday that it expects coastal flooding from Saturday night into Monday, with
expected storm surges of 1 to 5 feet. Rainfall along the coast is anticipated to
be 4 to 6 inches, with up to 8 inches in some areas.
Sandy is expected to make landfall between Washington and Boston before Monday.
According to meteorologists, Sandy could mushroom into a colossal “Frankenstorm”
if it mixes with a cold front moving eastward from the Midwest. Even if
Hurricane Sandy weakens as it moves north or moves farther out to sea, it could
still collide with cooler air and transform or feed into a Nor’easter.
“With the angle that it’s coming in, it’ll just pile up water right up against
the shoreline,” said Henry Margusity, senior meteorologist with AccuWeather.
“We’re still trying to assess the surge of water from the storm. There could be
flooding up the Hudson River all the way to New York City.” While the standard
hurricane power is centered near the eye, 'Frankenstorm' Sandy damage could be
generated from the outer edges. The path and strength of the storm is expected
to stretch as fas as New England, Margusity said. Under a worst-case scenario,
New York could face the most intense storm in its history. “There will be school
closures, travel will be messed up for days and major airports will be closed,”
Margusity said. “This could be a disaster of biblical proportions — a
multi-billion-dollar disaster.” Winds in the storm’s outlying areas are expected
to gust as high as 80 miles per hour, he said.
Here near Daytona Beach, walking on the deserted beach with sustained winds of
30+ mph and heavier gusts, was a line off of someone's bucket list. One of those
crazy things you do once, think of how crazy it is while doing it as you buck
the wind and flying sea foam, and realize one is not prepared to do this again,
any time soon.
Volcker Rule, SEC and Banking Regulators Proposal...
“There are a lot of issues to work through,” Schapiro said in response to
concerns raised that regulators are divided about how to proceed. “The
relationship has never been stronger between the capital markets regulators and
the banking regulators.”
Although the SEC and four other regulators face differences of opinions as they
work on the Volker Rule proposal - their focus is to complete the effort after
regulators introduced a 300-page proposal in October 2011. Critics of the Volker
Rule argued repeatedly since its proposal that regulators will have a difficult
time differentiating between legitimate market-making actions and prohibited
profit-making speculative transactions. Major banks that would be impacted
include Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS)
because a large chunk of their revenues come from trading.
Upcoming Earnings on Tap and November...
The new week on Wall Street brings to a close the month of October and the
street welcomes the start of November as we head toward countdown for the final
days ahead of the Presidential Election.
We're moving forward to a packed week of numerous S&P 500 company earnings into
the upcoming trading week including PG&E Corp (PCG) on Monday; Tuesday we'll see
earnings released from: Ford Motor Co (F) and United States Steel Corp (X);
Wednesday First Solar Inc (FSLR), MasterCard Inc (MA), Time Warner Cable Inc
(TWC) and Visa Inc (V); Thursday November 1: American International Group Inc
(AIG), Exxon Mobil Corp (XOM), Kellogg Co (K) and Starbucks Corp (SBUX); Friday
brings earnings reports from Chevron Corp (CVX) and the Washington Post Co (WPO).