Archive - Sep 27, 2010

• Last week's key story , conveniently buried late on Friday: "Three Wholesale Credit Unions Nationalized As US Securitizes $50 Billion In Legacy Toxic Assets; Failure "Sweep Under The Rug" Friday Just Got Real" - (Zero Hedge)
• From media shy to publicity whore, book-talker extraordinaire, David Tepper is now everywhere (New York Mag Profile)
• China Imposes a Steep Tariff on U.S. Poultry (NYT)
• Gold is the final refuge against universal currency debasement (Ambrose Evans-Pritchard)
• Japan Looks At $55bn Stimulus Package (FT)
• Fed Relative Value Model for Treasuries Showing Diminishing Market Returns (Bloomberg)
• Wolfgang Munchau on why the European Rescue Facility (EFSF) is one
  bid CDO, and would collapse immediately if France is downgraded  (FT)
• Eurozone banks face test as loans expire (FT)
• Interview: Marc Faber on the Federal Reserve and Hyperinflation (Seeking Alpha)

• Asian stocks rise to five-month high on US capital goods.
• Brazil crops shrivel as Amazon dries up to lowest in 47 years.
• Europe’s central banks halt gold sales; run of large disposals ends.
• Euro trades close to 5-month high against dollar, buys $1.3469.
• Eurozone annual M3 money-supply growth grew at a 1.1% in August vs. 0.2% in July.
• German business confidence rose unexpectedly in September.
• Germany backs tough EU deficit rules.
• Gold may advance to record on weaker dollar; Silver climbs to 30-year high.
• Japan said to consider up to $55B extra stimulus as recovery slows.

The next Microsoft is emerging and nobody outside of Apple is paying attention!

Boring day, with just Dallas Fed on the roster.

Ireland wakes up to some very ugly news this morning: "Moody's expects a continued asset quality deterioration in the loan book of Anglo Irish that will require further government support for the bank's liabilities," says Ross Abercromby, Vice President and lead analyst for Anglo Irish at Moody's. The rating agency believes that the novation of the deposits into the FB could increase the government's options to share the burden of such support with other creditors that remain in the ARB. Without an explicit government guarantee for senior unsecured note holders, Moody's believes that the ratings for these instruments need to incorporate this greater marginal risk. While Moody's considers the likelihood of the government not supporting this debt to be very small, this risk has been reflected in the three-notch downgrade to Baa3 and will continue to be a focus of the review for possible downgrade. Moody's expects to receive further clarity from (a) the Irish government's upcoming announcement of further details of its plans for Anglo Irish over the coming weeks, and (b) the European Commission's verdict on the proposed restructuring. Until such clarification is forthcoming, Moody's review for possible downgrade will continue. "In the absence of explicit government guarantees, the senior unsecured debt ratings could be further downgraded into sub-investment grade," says Mr. Abercromby.

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 27/09/10

Retail Traders as a herd are wrong…most of the time (sorry guys its true).

This daily report is designed to help traders find opportunities to trade against this group. The premise is very simple we are looking for 66% of retail traders to be trading either long or short a currency pair, we then look for opportunities to fade (trade against) this group.