Chart of the Day
>> securities and exchange commission’s new guideline for when and how the agency’s enforcement decision may subpoena journalists. s.e.c. chairman christopher cox says enforcers must exhaust all other options in getting information and notify top officials before summoning reporters.
>> the purpose of the policies in force as of today is to ensure both that the securities and exchange commission can vigorously enforce the laws and rules within our jurisdiction and also that we don’t use journalists and journalism as our first resort source of information in the law enforcement function.
>> the changes come after the enforcement division subpoenaed two reporters back in january without notifying the commissioners first. the five-member commission unanimously approved the new rule. goldman sachs suggests that the swiss franc could advance against―not the dollar, not the euro, but the canadian dollar. here with more on the loony swissy is bloomberg news editor-at-large―that’s my new nickname for you, loony swissy.
>> this comes in all the time, foreign exchange strategists worldwide trying to find an edge and not about the basic pairs like dollar-yen. typically euro-yen being the most dominant rate. here’s jim nordvig out of london with goldman sachs today saying you should step into the loony swissy and this idea, you’re going to short canada and go along switzerland. if we go to the chart we can see it. it’s a chart i’ve never looked at before. there’s 30 years of a strong swiss. the red arrow is a strong swiss. the climb down is the overwhelming strength of switzerland versus canada and things changed 10 years ago. canada becomes stronger and at least they go level and as you can see, they’ve traded to the upper end of the 10-year zone and we’ve recently seen this move up, strong u.s. growth and of course those commodity prices, $60 oil.
>> what’s the advantage of looking at cross rates over traditional pairs?
>> you’re always trying to get an edge in exchanges and if everybody only looked at two or three pairs, it doesn’t lead to an interesting market where you can get the edge. you’re looking for edge and they’re always looking for the strike or―strategic or intellectual nuance.
>> what’s the edge?
>> the perfect edge here, loony swissy, the perfect edge here is canada, everybody’s betting on oil, everybody’s betting on canada, everybody’s betting on growth. that’s going to say there are risks out there i’ll go into in a second.
>> didn’t you say there is a concern about canadian oil supply?
>> yes, concern about the supply. but in the short term, there’s a lot of excitement about canada and less excitement about switzerland. the strategic trade is canada, it’s energy, it’s booming and swiss is the go-to currency for fear. in a separate note what goldman sachs is saying with dominique wilson and jim o’neill in their weekly note is they see risks rising. some of this, it’s not directly related to the trade is, slowing u.s. economy, higher oil prices, a stealthy advance of the chinese currency the renminbi and tighter real rates. they look for the swiss national bank to raise rates, again, making the swiss currency more attractive. it’s a lot of inside baseball.
>> this might be an offshoot question but why didn’t switzerland get in on the euro?
>> that’s an important question. there’s that historic independence going back to a geneva of the 16th century. lots of cultural heritage to be independent from the 12 nation euro zone.
>> tom keene, thank you very much for bringing us today’s “chart of the day,” the loony swissy, which is my nickname for you. looks like we have an opening price on advanced micro devices, responding to the trading, announcing earnings today. shares down 1%, $35.05 a share in the extended hours’ trading, following the release of the chipmaker’s earnings, which was 38 cents a share, eight cents above analysts’ estimates. sales matched estimates, up nearly 10% from last year. much more ahead, stay with us.
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>> welcome back. advanced micro devices’ shares are lower in extended hours’ trading. our stocks eddor, bob bowden, has been following the trade on a.m.d.
>> it’s an interesting report after the close of trading today. a.m.d. reporting quarterly net income at the highest in more than five years, $185 million. and the headline number is very impressive, 45 cents a share from calculations. this was compiled as the operating earnings number, beating the 30-cent estimate by 50%. i don’t need a calculator to tell you that. revenue also beating estimates, $1.33 billion announced, coming in exactly as analysts predicted on revenue. so meeting estimates for revenue, up 8.6% from last year. gross margin also a record, 58%. all this sounds like good news, over 100 basis points --
