Archive - Apr 27, 2010 - Story

For those wishing to watch the full 10:00am Goldman hearing live and commercial free we suggest the following C-Span link. The witness panel for today's hearing is presented. We will update this post with all Goldman-relevant news as the day progresses.

• Brazilian policy makers poised to raise borrowing costs at the fastest pace since 2003.
• China may use capital requirements for developers as policy tool to cool property market.
• Cost of insuring Greece's debt against default soared to a new record.
• Portugal suffering Greek debt contagion puts pressure on EU's bond markets.
• Republicans joined in the Senate to block Democrats' overhaul of financial regulation.
• Shanghai shares down 2.1%, with real estate stocks down on policy concerns.
• Trend in U.S. home prices may have been positive for first time since 2006

Greece 5y CDS now at a meaningless 762bps, which is the highest non-upfront CDS spread for any sovereign. This alone should be enough for another monster day in the decoupled algo-driven US markets. And Portugal is now where Greece was just a few weeks ago: its own CDS just hit 350 bps (40 wider), as its 10 spread widens by 17 bps to 235 bps. While the Greek negative basis is still about 250 bps, Portugal is still less pronounced. We expect the Portuguese basis to hit negative territory soon. According to CMA the biggest wideners are all Spanishand Portuguese entities: Enel SpA at 137.07(+16.04), Banca Monte dei Paschi di Siena SpA (SUB) at 215.22 (+23.25), Banco Popolare SC at 164.46 (+15.67), Banca Monte dei Paschi di Siena SpA at 122.64 (+10.82). As for Greece, it's too late: Germany says country may have to leave the Eurozone, as we suspected was Germany's intention all along.

RANsquawk European Morning Briefing - Stocks, Bonds, FX 27/04/10

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 27/04/10