Corrected-shanghai Stock Exchange To Launch When-issued Gov’t Bond Trading In Oct – Sources

31. We model for Citis FICC trading revenue to decline 25 percent, John McDonald , a Sanford C. Bernstein & Co. analyst, wrote in a Sept. 20 report, referring to fixed-income, currency and commodities trading. Citigroup, based in New York, is the third-biggest U.S.
Source: http://www.bloomberg.com/news/2013-09-23/citigroup-drops-after-report-that-bond-trading-will-drop.html

The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 69%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract . Should the contract expire worthless, the premium would represent a 3.14% return on the cash commitment, or 21.23% annualized at Stock Options Channel we call this the YieldBoost. Click here to find out the Top YieldBoost Puts of the S&P 500 Below is a chart showing the trailing twelve month trading history for Cabot Oil & Gas Corp., and highlighting in green where the $35.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $37.50 strike price has a current bid of $1.85. If an investor was to purchase shares of COG stock at the current price level of $37.22/share, and then sell-to-open that call contract as a covered call, they are committing to sell the stock at $37.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.72% if the stock gets called away at the November 16th expiration (before broker commissions).
Source: http://www.forbes.com/sites/stockoptionschannel/2013/09/23/cog-november-16th-options-begin-trading/

Back on September 19, Main Street Capital Corporations Director, John Earl Jackson, invested $29,940.00 into 1,000 shares of MAIN, for a cost per share of $29.94. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. Click here to find out which 9 other dividend bargains you can buy cheaper than insiders, at DividendChannel.com In trading on Tuesday, bargain hunters could buy shares of Main Street Capital Corporation ( NYSE: MAIN ) and achieve a cost basis even cheaper than Jackson, with shares changing hands as low as $29.76 per share. Main Street Capital Corporation shares are currently trading off about 0.2% on the day. The chart below shows the one year performance of MAIN shares, versus its 200 day moving average: Looking at the chart above, MAINs low point in its 52 week range is $25.52 per share, with $34.45 as the 52 week high point that compares with a last trade of $29.77.
Source: http://www.forbes.com/sites/dividendchannel/2013/09/24/main-trading-below-directors-recent-buy-price/

10, in the latest move by regulators to develop the country’s fledging bond market, sources with direct knowledge of the matter told Reuters. China’s main bourse is likely to publish detailed regulations on when-issued trading by the end of this month, once it gains approval from the Ministry of Finance, which issues the country’s government bonds, and the China Securities Regulatory Commission (CSRC), which oversees the stock exchange. When-issued trading refers to the trading of securities after their sale has been announced but before issuance occurs. Such transactions aid price discovery for upcoming issues. Economists say the development of a reliable and liquid interest-rate curve for government bonds, which can serve as a benchmark for other types of borrowing, is a necessary step in a broader push to allow market forces to set financing costs in the Chinese economy. continue
Source: http://www.reuters.com/article/2013/09/24/china-bonds-issue-idUSL4N0HK18120130924

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Obama Says He’s Not Worried About Style Points. He Should Be.

It was going to be an uphill slog for a president who doesnt like conflict. The letter of support for Yellen signed by almost a third of the 54-member Senate Democratic caucus landed in the vacuum with a thud. With only a two-vote margin in the Senate Banking Committee and facing the opposition of Senator Elizabeth Warren , Obama figured he might not even more.. get the Summers nomination onto the floor for a vote. Warren said Summers wasnt her first choice (meaning he probably wasnt even her 10th), and her pent-up frustration over how Wall Street had prevailed over Main Street gave her a stomach for the fight that Obama would have a hard time matching. The Summers debacle had a dress rehearsal in Obamas botched handling ofthe nonappointment of Susan Rice to be secretary of state. Like Summers, Rice is an Obama friend.
Source: http://www.bloomberg.com/news/2013-09-16/summers-is-felled-by-obama-the-community-organizer.html

From his Syria gyrations to Monday’s ill-timed economic speech attacking Republicans as a mass shooting was in progress at the nearby Washington Navy Yard, Obama’s apparently willful dismissal of style could do more than just hurt his poll numbers. It could yield midterm election losses and create perhaps insurmountable obstacles to achieving his policy goals. The Syria moves were head-spinning, from beginning (Obama’s stunning decision to ask Congress to authorize a military strike) to end (Russia convening negotiations on Syria’s chemical weapons). What with Congress poised to reject Obama’s request and Vladimir Putin’s twin tours de force coming up with a viable diplomatic path and landing an annoying op-ed in The New York Times the commander in chief has appeared to be in a less than commanding position. Ronald Reagan biographer Lou Cannon calls Obama’s performance on Syria “appalling.” Presidential historian Robert Dallek says he’s coming across as “indecisive, almost Hamlet-like.” Among the descriptions tweeted by Richard Haass , president of the Council on Foreign Relations, were unsteady, undisciplined, poorly executed, and “serial U.S. ineptitude.” Obama has a high-profile chance to step up and counter all that with strong, organized, consistent leadership in the budget and debt battles of the next few weeks.
Source: http://www.nationaljournal.com/whitehouse/obama-says-he-s-not-worried-about-style-points-he-should-be-20130917

Obama’s ‘unbelievably small’ presidency

Despite the unlikely claim of agreement with the Russians that the stockpiles be destroyed by mid-2014, much more likely this would require constant cooperation with the regime over several years, constituting implicit acknowledgement of its legitimacy, sovereignty, and yes, security from any U.S reprisal throughout that extended period. Wasnt it Secretary Kerry himself who said as recently as September 9 that the U.S. could ask Assad to turn over his chemical weapons, but he isnt about to do it, and it cant be done.? But still, were expected to believe that Assad will faithfully report just how many chemical weapons he has, the ones he and Putin previously denied that he had at all, guaranteed, of course by Russia. This is the very same Russia that hasnt complied with a commitment to eliminate its own chemical weapons. According to a January State Department assessment , Russia provided an incomplete list of its chemical agents to be destroyed, and also missed deadlines to convert its former chemical weapon production plants.
Source: http://www.forbes.com/sites/larrybell/2013/09/17/obama-putins-gift-that-keeps-on-giving/

Obama: Putin’s Gift That Keeps On Giving

Mr. Obama said he had been briefed on the situation, adding we still dont know all the facts, but we do know that several people have been shot and some have been killed. Mr. Obama said those who were injured and killed were both military personnel and civilians. Theyre patriots and they know the dangers of serving abroad but today they faced the unimaginable violence that they wouldnt have expected here at home, he said from the White House, where his speech marking the 5thanniversary of the financial crisis was delayed by the shootings. The president said the U.S.
Source: http://blogs.wsj.com/washwire/2013/09/16/obama-we-dont-know-all-facts-yet-on-navy-yard-shooting/

Obama: We Don’t Know All Facts Yet on Navy Yard Shooting

The revolutionaries of Syria appear in this game to be effective subalterns, he wrote. Those who do not have a voice and who cant speak to Western academic circles. Arwa Damon, a CNN correspondent, was blunter in a tweet after Obamas Syria address. missing from #syria debate is how we ended up in world w/such lost moral compass & so many utterly desensitized 2 sheer suffering of others. Four years after Obamas Cairo address, cynicism about the Middle East is pervasive across the American political spectrum. American influence in limited, those on the left and right argue, in a region where there are only two options: autocrats or jihadists. Trusting dictators from Assads ruling clique to Egypts generals to the Saudi royal family to sort out a backward region is viewed as pragmatic. Any military action, no matter how limited, would lead to another Iraq. In Cairo, of course, Obama was not proposing more Iraq-style ground invasions. Instead, he spoke of a new relationship between the United States and the Islamic world based on common principles of justice and progress, tolerance and the dignity of all human beings.By the time last months Sarin attack occurred, talk of common principles had vanished.
Source: http://blogs.reuters.com/david-rohde/2013/09/16/from-cairo-to-geneva-obama-steps-back-from-mideast/

From Cairo to Geneva, Obama steps back from Mideast

strike would be just muscular enough not to get mocked ? Or when Kerry declared that any strike would be unbelievably small and would not really constitute war? Or when Obama used his prime-time, nationally televised address to call on Congress to do . . . nothing?
Source: http://www.washingtonpost.com/opinions/marc-thiessen-obamas-unbelievably-small-presidency/2013/09/16/e01838ca-1ed3-11e3-94a2-6c66b668ea55_story.html

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Global Stocks & Bonds Rally, Dollar Dips As Summers Steps Aside

Contracts from late 2014 out to 2016 all enjoyed double-digit gains suggesting a hike was now considered more likely in 2015, rather than in late 2014. The prospect of a more protracted easing cycle would be a big relief to emerging markets from India to Brazil which have been hammered by expectations offshore funds would switch to developed markets as yields there rose. Gold recouped some of last week’s losses, with the metal rising to $1,331.36 an ounce, from around $1,308. Oil prices declined as the likelihood of a U.S.
Source: http://www.reuters.com/article/2013/09/16/us-markets-global-idUSBRE96S00E20130916

Hong Kong Stocks Gain Most in a Week as Summers Withdraw

Cosco Pacific rose 1.2 percent to HK$11.70, while port operator China Merchants Holdings International Co. (144) advanced 3.1 percent to HK$27.95. Chinas plan for a free trade zone in Shanghai is very positive and will help improve the countrys competitiveness, World Bank President Jim Yong Kim said at a briefing in Shanghai yesterday. Galaxy jumped 5.4 percent to HK$55.20, leading the Hang Seng Index higher, while Melco Crown Entertainment Ltd. (6883) , the Macau venture between Australian billionaire James Packer and a son of casino mogul Stanley Ho , climbed 5.2 percent to HK$83.90.
Source: http://www.bloomberg.com/news/2013-09-16/hong-kong-stocks-gain-most-in-2-weeks-as-summers-withdraw.html

Stocks end higher ahead of Fed meeting, Dow caps best week since Jan.

For more, click on: CREDIT SUISSE * Credit Suisse wants to sell the private clients business of its German unit Credit Suisse Deutschland AG, German weekly WirtschaftsWoche reported on Saturday, citing financial sources. * Israeli holding company Koor Industries has sold another 5.5 million shares in Swiss bank Credit Suisse for 157.47 million Swiss francs ($169 million), the company said on Sunday. For more, click on: ROCHE Christoph Franz, chief executive of Deutsche Lufthansa is in pole position to take over as chairman of Swiss drugmaker Roche, the NZZ am Sonntag newspaper reported on Sunday. For more, click on: GEBERIT Three peers of Europe’s biggest bathroom equipment maker, Grohe, including Geberit, submitted final offers for the private-equity owned company by a Friday midnight deadline, three sources familiar with the deal told Reuters. For more, click on: COMPANY STATEMENTS * Forbo said it is revoking a suspension of its approved share buyback after concluding the sale of a maximum of 2.5 percent of treasury shares and increasing its distributable, withholding tax free capital contribution reserves. * Kaba said its net profit fell to 85.5 million Swiss francs in the financial year ended June 30.
Source: http://www.reuters.com/article/2013/09/16/markets-swiss-stocks-idUSL5N0H92S320130916

Invest In Stocks With A Margin Of Safety To Reduce Risk And Enhance Returns

First, I examined the 35 largest weighted holdings. Next, I eliminated the 11 holdings that had cut dividends within the past 5 years. Third I substituted the next 11 holdings in the ETF, bringing the total back to 35. I now have a portfolio of 35 stocks that have each produced sustained and growing dividends for 15 years or more.
Source: http://seekingalpha.com/article/1694102-do-retirees-need-a-dividend-etf-or-a-portfolio-of-individual-stocks-part-3

Swiss stocks – Factors to watch on Sept. 16

It offers consulting and technology services, such as IT strategy, program management, operations improvement, strategy, and business consulting services; and application design and development, systems integration, and enterprise resource planning and customer relationship management implementation hot stok picks services. It also provides enterprise information management services, such strategic, advisory, and management consulting; enterprise data management; descriptive analytics/business intelligence; strategic corporate performance management; and packaged analytics services, as well as big data services that assist clients in managing and deriving actionable insights from the explosion in the volume, variety, velocity, and complexity of dataCognizant Technology Solutions was founded in 1998 and is headquartered in Teaneck, New Jersey.” With Cognizant, we once again see an example of earnings continuing to strongly advance, while only fear drove stock price down. Consequently, as we’ve seen with all of the examples cited in this article, recessions can be as much about opportunity as they are about risk. At the end of 2008 and the beginning of 2009, this powerful growth stock could be purchased at a P/E of only 12 (Note: I have added a 12 P/E overlay-the magenta line). The following Earnings and Price Correlated Graph since the beginning of 2009 provides an additional perspective on the margin of safety concept. Notice that Cognizant’s earnings growth rate did slow down from 35.7% to 23.7%. Nevertheless, the margin of safety provided by its lower-than-average valuation, mitigated the risk of slower growth. The following performance results associated with the above Earnings and Price Correlated graph illustrate the profit opportunity afforded by investing in a high-growth stock, even when earnings growth slowed a bit. Simply stated, buying Cognizant at a low valuation reduced risk while generating a compounded annual rate of return of 36.8% per annum that exceeded its earnings growth rate by a wide margin. Finding A Margin Of Safety In Today’s Strong Market At this point, I would like to address what I believe to be a very important misconception held by many investors. Instead of predicating their stock investing decisions based on their view of the relative merits of individual companies, investors will often allow their biased view of the overall market deter them. The refrain goes something like – after such a strong run, the stock market is now too high for me to invest in stocks.
Source: http://www.istockanalyst.com/finance/story/6569493/invest-in-stocks-with-a-margin-of-safety-to-reduce-risk-and-enhance-returns

Do Retirees Need A Dividend ETF Or A Portfolio Of Individual Stocks? Part 3

Most Dow components finished in positive territory for the week, led by Disney and Microsoft, while Hewlett-Packard was the only blue-chip stock that closed in the red. All 10 S&P sectors finished higher for the week, led by industrials and consumer discretionary. Will they or won’t they: Gross on tapering Days before a critical meeting of the Federal Reserve on whether to wind down its $80 million a month bond-buying program, the founder of the world’s biggest bond Fund, PIMCO’s Co-CIO Bill Gross weighs in on the investor impact of tapering. On the economic front, the Thomson Reuters/University of Michigan Surveys of Consumers’ preliminary September consumer sentiment index fell to 76.8 from the final August figure of 82.1, according to the survey released on Friday. Economists in a Reuters survey expected a reading of 82.
Source: http://www.cnbc.com/id/101032600

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Forex-dollar Tumbles Broadly After U.s. Jobs Data

Foreign currency assets, which form a substantial part of the reserves, fell by $3 billion. However, the fall got compensated a little as the value of gold held by the RBI increased by $977 million after the monthly revaluation. The country’s reserve position at the International Monetary Fund (IMF) decreased by $112.5 million to $1.9 billion, while special drawing rights from the IMF increased by $7.2 million to $4.3 billion. According to a currency dealer, the fall in reserves was partly due to the RBI’s intervention in the forex market and partly due the revaluation of currencies. The central bank, apart from dollars, also holds pounds, euros and Japanese Yen.
Source: http://www.sify.com/finance/forex-reserves-fall-2-23-billion-in-a-week-at-39-month-low-news-default-njhc6tjghaj.html

Forex reserves dipped to 7 months import cover at end-March

Despite the holiday-shortened week, this one is a big week for investors, and not solely because of the unanswered Syrian question. The Federal Reserve gets to focus on the U.S. labor market for deciding when and how fast to cut back on its asset purchases. This Fridays nonfarm payrolls (NFP) employment situation report http://www.etftradingsignals.com will be a critical one as it is the last report before the highly anticipated mid-month Federal Open Market Committee meeting. Helicopter Ben Bernanke and company have assured investors that the timing of tapering is data dependent and the NFP is the granddaddy of fundamental data. The market should be expecting that the employment report from here to the remainder of the year in particular will be more of a contentious release.
Source: http://www.forbes.com/sites/deanpopplewell/2013/09/03/missile-alerts-will-keep-forex-traders-on-edge/

job growth was lower than expected in August, while the job count for the previous two months was revised lower. Expectations the Fed would announce a tapering of its monthly bond purchases at its Sept. 17-18 policy meeting have buoyed in the dollar lately. A reduction in stimulus will lift U.S. Treasury yields and bolster the appeal of dollar-denominated assets. “The August employment report is weak enough to seriously throw into doubt the tapering the market widely expected on Sept.
Source: http://www.reuters.com/article/2013/09/06/markets-forex-idUSL2N0H21RP20130906

The rupee has depreciated over 25 percent in value since May. Because of its deficits, it has fared worse than other emerging market currencies since the U.S. Federal Reserve first indicated it is considering reducing its bond-buying stimulus. External factors coupled with slowing domestic growth have dragged the rupee to a series of record lows, forcing the central bank to sell dollars from its reserves to avert a deeper slide of the local currency. The rupee touched a lifetime low of 68.85 to the dollar on August 28, and ended at 67.63/64 on Tuesday. India’s ratio of short-term debt to forex reserves rose to 33.1 percent at the end of March from 28.7 percent last September, the central bank added in its half-yearly foreign exchange reserves management report.
Source: http://in.reuters.com/article/2013/09/03/india-rbi-forex-reserves-idINDEE9820F720130903

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1 Company Charging Into The Student Loan Business

After a stalemate in Washington D.C., the interest rates for newly issued federally guaranteed student loans doubled to 6.8% on July 1. It took presidential action earlier this month to restore them to 3.9%, as Barack Obama signed a bill linking the interest on the loans to the 10-year U.S. Treasury note. Some 18 million loans were covered by the most recent bill, and with a total outstanding value of $106 billion. That means the average undergraduate will save $1,500 on interest charges compared to the 6.8% rate. Yet passing that bill will not end the discussion on student loans and the rising costs of education.
Source: http://www.fool.com/investing/general/2013/08/31/1-bank-charging-into-the-student-loan-business.aspx

Congress OKs cheaper student loans

Senators voted 81 to 18 to lower interest rates for undergraduates taking out government loans this school year http://www.obamastudentloanforgiveness.net to 3.86% — cheaper than the 6.8% interest rate that kicked in on July 1. The new rates would be retroactive and apply to loans taken out after July 1. However, the bill has provisions for rates to go higher in coming years. It is expected to become law, with support from the White House and the House of Representatives, which will likely take up the bill in coming days. “This fall, all undergraduates, subsidized or unsubsidized, would only have to pay 3.86% interest rate for the life of the loan,” said Sen. Tom Harkin, an Iowa Democrat, whose support was key to a Washington deal.
Source: http://money.cnn.com/2013/07/24/news/economy/senate-student-loans/index.html

Student loan deal passes Senate

Now comes financial aid director Trish Harmon. The tone darkens. “Caution! Student Loans must be paid back!” screams the headline of the flier she hands out. It lists the consequences a dozen in all for borrowers who default: Garnished wages.
Source: http://www.usatoday.com/story/news/nation/2013/08/25/colleges-student-loan-defaults/2666173/

What Happens to Student Loans When You Die?

When you repay, younger children get the loan they need for their education,” Prime Minister Yingluck Shinawatra said. Tanusak said the Student Loan Fund and its allies would now jointly develop a database on student-loan recipients to boost their employment opportunities. He expected employment to raise the loan recipients’ chances of making repayments. He said the Finance Ministry had also asked the Revenue Department to study the feasibility of setting up an agency to automatically deduct loan recipients’ income for repayment to the Student Loan Fund. Central Retail Corporation, which is among the Student Loan Fund’s allies, said it had more than 1,000 jobs for fresh graduates and students interested in working part time. Student Loan Fund manager Thitima Vichairat said her agency would soon offer special deals for loan recipients who come forward to settle their debts.
Source: http://www.nationmultimedia.com/national/Govt-tightens-screws-on-student-loan-defaulters-30213801.html

Colleges are toughening up on student borrowing

WASHINGTON (CNNMoney) The House on Wednesday approved a bipartisan bill that ensures lower interest rates on loans for students heading to college this fall. Members of the House voted 392 to 31 to lower rates for undergraduates taking out government loans this school year to 3.86% — cheaper than the 6.8% interest rate that kicked in on July 1. The new rates would be retroactive and apply to loans taken out after July 1. The bill, which passed the Senate last week, will now go to the President Obama’s desk to be signed into law. It has provisions for rates to go higher in coming years.
Source: http://money.cnn.com/2013/07/31/pf/college/student-loan-house/index.html

Govt tightens screws on student-loan defaulters

We recently received this question from a reader: If the borrower of a student loan dies, is the spouse liable for that loan? Maybe, maybe not. With traditional loans, as long as the spouse is not listed as a co-signer or joint account holder, he or she is not legally liable for the debt — unless you live in a community property state. If you live in a community property state and your spouse dies , you’re typically liable for your spouse’s debt, regardless of whether your name was on the original loan or not. Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
Source: http://abcnews.go.com/Business/student-loans-die/story?id=19460467

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As Investors Shift, Housing Is The New Stock Market

“You look at the stock prices of the companies that are public, and it’s pretty clear that Wall Street remains unconvinced in the single family rental model, and I think it’s natural for these firms to start right sizing and make sure that they are profitable.” That could mean consolidation, with some of the larger firms that have stronger management structures buying up smaller players. Large-scale investors are still a relatively small segment of the 14 million single family rental market, but it appears they are here to stay, despite the recent volatility. Smaller investors, however, may be moving on, having exhausted their cash and their credit opportunities. The classrooms were packed. “There was a surge because people read the papersin March, April, there was a bull market in housing. Suddenly at every cocktail party somebody wanted to make a killing in real estate,” Kelman said.
Source: http://www.cnbc.com/id/100988740

6 gut checks before the stock market’s opening bell

Again, Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) seems our most likely winner here. Now go to the National Retail Federation and things are a bit different. The NRF spokesperson called this cautious conservatism and called this an “either/or” economyon spending.
Source: http://www.marketwatch.com/story/labor-day-2013-stock-market-winners-2013-08-29

51 trillion. Investors yesterday staked N5.17 billion on 559.81 million shares in 5,547 deals. Investors were cautious in their dealings as they targeted shares of highly capitalised companies. There were 51 price movements at the close of business with 22 companies recording price appreciation and 29 others recorded losses. DN Meyer Plc led the gainers table with 0.13 Kobo or 10 per cent to close at 1.43 Kobo per share.
Source: http://thenationonlineng.net/new/stock-market-rebounds-gains-n32-06bn/

Stock market rebounds, gains N32.06bn

16 to spike to more than 50 percent above the previous day’s level. Everbright’s orders totaled 23.4 billion yuan ($3.7 billion), according to the CSRC. It said completed transactions were almost 7.3 billion yuan ($1.2 billion). The brokerage asked to cancel the trades, the government-run China News Service reported earlier. However, the Shanghai Stock Exchange said any transactions that already had been completed would be cleared normally. Everbright is part of the state-owned China Everbright Group, which also controls banks and other financial businesses.
Source: http://abcnews.go.com/International/wireStory/china-fines-brokerage-85m-stock-market-chaos-20115587

China Fines Brokerage $85M for Stock Market Chaos

You know all those countdowns, the dramatic intros, the ever-repeating footage of riots and the dramatic music? wrote Sverre Rorvik Nilsen, from the Finansakrobat blog . I present to you blog the strong correlation between volatility in the markets and CNBC viewership. Finansakrobat The call of the day: The canary in the coalmine just let out his last, fateful tweet, according to SocGens Edwards. The emerging markets story has once again been exposed as a pyramid of piffle, he warned. So what does that cute alliterative flourish at the end there mean for the big picture? At the risk of being called a crackpot again, I repeat my forecasts of 450 for the S&P, sub-1% US 10y yields and gold above $10,000, Edwards.
Source: http://blogs.marketwatch.com/need-to-know/2013/08/30/6-gut-checks-before-the-stock-markets-opening-bell-88/

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