We’re on strike until March 2nd

QUICK OVERVIEW

• (MarketWatch) U.S. stocks end the week and the month with deep losses following a selloff on Friday, which was prompted by disappointing earnings, renewed fears over deflation in the euro zone and a continuing rout in emerging markets.
• Richard Russell, of Dow Theory Letters fame, notes that every down January since 1950 has been followed by a bear market. (Hulbert's view).

• Cocoa futures rose to a more than 28-month high  on concerns that supplies for the key chocolate ingredient will not keep up with demand this year. Cocoa-bean stockpiles monitored by ICE Futures U.S. dropped 2.9% last week, adding to supply concerns. The current estimates have production 105,000 metric tons smaller than demand in the year started Oct. 1, followed by a shortage of 74,000 tons the next season.

• The U.S. government and leading Internet companies  announced a compromise that will allow those companies to reveal how often they are ordered to turn over customer information in national security investigations.
• U.S. pending home sales fell in December to the lowest level in more than two years, a fresh sign that the housing recovery lost momentum. The NAR said its index of pending home sales, which measures the number of contracts that have been signed but not yet closed for purchasing previously owned homes, fell 8.7% to 92.4 in December, the lowest level since October 2011.
• Representing oil addicts, a U.S. State department study says that the Keystone XL pipeline would have little impact on tar-sands use. A different opinion thinks that the pipeline would probably increasing supply, decrease prices and therefore drive up global oil consumption.
• Ban Ki- moon on Friday announced the appointment of the former New York City mayor Bloomberg as his special envoy for cities and climate change.
• Honda Motor Co expects to sell a record 1.6 million cars in the United States, its biggest market, this calendar year, up 5 percent from 1.525 million sold in 2013.

• Britain’s Office for National Statistics (ONS) is expected on Tuesday to reveal the economy grew by 0.7% in the final three months of 2013 following growth of 0.8% in the third quarter. This would equate to an overall expansion of 1.9% for 2013, much stronger than the 0.3pc expansion in 2012. However, output would remain 1.3pc below its pre-recession peak.

• With the end of QE in the West and changes in Chinese fiscal policies "forcing up the cost of capital across emerging markets asset class" the tide is going out on emerging markets - so warns Fidelity.
• China's PMI for the manufacturing sector dropped to five-month low to 50.5 % in January
• BEIJING (AP) Authorities in eastern China have banned live poultry sales after an increase in the number of people infected with the H7N9 strain of bird flu, state media reported.

• India's central bank raised the repo rate by a quarter point to 8%, citing inflationary threats..

• (MarketWatch) -- Dallas Federal Reserve Bank President Richard Fisher defended the U.S. central bank for charges from overseas that it was recklessly ignoring the impact of tapering on other countries. The Fed's moves have been one factor in a spike of turbulence in emerging markets. "Some believe we are the central bank of the world and should conduct policy accordingly. We are the central bank of America," Fisher said in a speech in Forth Worth, Texas, according to Dow Jones. Fisher added that other nations have their own central banks with their own responsibilities.
• He wants the U.S. central bank to end its economic-stimulus program as soon as possible, but he says the Fed can't go from "Wild Turkey to cold turkey overnight..

• Argentina's government limited monthly dollar purchases by Argentines to $2,000 (Ms Kirchner went missing). .