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California governor makes new proposals to fight wildfires, PG&E shares rise
(Reuters) - California Governor Gavin Newsom released a report on Friday calling for the creation of funds to fight wildfires and proposed that state law should be reformed to reduce liability of utilities, sending PG&E Corp up nearly 12 percent.
Newsom’s report calls for changing liability for wildfire damage to a fault-based system. The current system, known as inverse condemnation, exposes the state’s utilities to liabilities from wildfires regardless of their negligence, as long as their equipment is involved.
The current system pushed PG&E to seek bankruptcy protection in January, as it faced liabilities in excess of $30 billion related to the deadliest wildfires in California’s history.
“Under the status quo, all parties lose – wildfire survivors, energy consumers and Californians committed to addressing climate change. The imperative now is on action,” Newsom said.
The report proposed creating two funds to help utilities pay for wildfire damage claims and spread the cost more widely among stakeholders.
Shares of Edison International also rose 7 percent at $66.8.
Edison International is the parent company of the utility Southern California Edison Co. Earlier in March, investigators found that the devastating Thomas Fire in northwest of Los Angeles was sparked by power lines owned by SoCal.
https://www.reuters.com/article/us-pg-e-us-california-plan-idUSKCN1RO2D3
==Mktfag Report=
Disney, Dimon, & A China Debt Surge Lift Stocks As Economic Data Collapses
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Just keep repeating: "the market is not the economy".
Except that is the exact opposite of what former Fed Chair Alan Greenspan told the world this morning, explaining that much of the improvement has come from a rise in stock market prices:
He sees a “stock market aura” in the economy.
A rise of 10 percent in the S&P 500 corresponds to a 1 percent real GDP increase, he said. The S&P 500 has risen nearly 16 percent in 2019 and is on track for its best performance in history should current trends hold.
So who is right - Greenspan or the asset-gatherers and commission-takers?
China was weak on the week with ChiNext's worst week since before Thanksgiving (after rising for 9 straight weeks).
Mixed picture in Europe this week with Italy and France outperforming and Spain the laggard.
US futures show the moment that China credit and trade data hit, sending stocks soaring.
On the week, Trannies were the big winners as Small Caps clung to gains and The Dow scrambled today to get back to breakeven on the week…(despite utter desperation in the algos, The Dow ended the week red)
DISney lifted The Dow dramatically and sent NFLX lower.
Chevron tumbled as it bid for Anadarko.
And then there was JPM - which surged on record results and Dimon's bullish remarks - compared to Wells which was ugly.
(they both sucked-when you can move around the pile's on your balance sheet to achieve the result's you want it's not that hard to get a 'positive' result-Wells was moar honest about it than JPM imo)
Treasury yields were all notably higher on the week, led by the belly up 7-8bps.(that mean's medium to med-long term T-Notes)
10Y Yields rose back above 2.50%, back up to the March FOMC levels.
The Dollar Index (DXY) ended the week lower, back below the Maginot Line of 97.00 (as in DO NOT CROSS THIS)
For the seventh week in a row, China's Yuan was flat (thanks to a big jump overnight).
Bitcoin and Ethereum held on to gains for the week as Ripple and Litecoin tumbled.
(ha ha sucks to be you Bix!)
Despite the USD weakness, PMs were weaker (with silver slammed) as copper and crude gained.
Gold is trading at its 'richest' to silver (86.1x) since 1993. (this should tell you something-when everyone "hates" it, you should love it)
Commodities and rates are aligned in their view of reflation (nothing much)
Because, remember, fun-durr-mentals don't matter!!! Only global money supply does.
(stick that in your pipe anon from this morning)
https://www.zerohedge.com/news/2019-04-12/disney-dimon-china-debt-surge-lift-stocks-economic-data-collapses
(cap#3 is yesterday on NASDAQ-this was certainly short covering as if it were actual organic long buying the index would have risen substantially-it did not, see here:
What is Short Covering?
Short covering refers to buying back borrowed securities in order to close open short positions at a profit or loss. It requires the purchase of the same security that was initially sold short, since the process involved borrowing the security and selling it in the market. For example, a trader sells short 100 shares of XYZ at $20, based on the opinion those shares will head lower. When XYZ declines to $15, the trader buys back XYZ to cover the short position, booking a $500 profit from the sale. This process is also known as “buy to cover.”)
https://www.investopedia.com/terms/s/shortcovering.asp
https://finance.yahoo.com/quote/%5EDJI?p=^DJI
Please visit this site for any unfamiliar terms
https://www.investopedia.com/dictionary/
thanks? I think…knowing about shit is certainly applicable watching that movie.