Archive - Sep 13, 2010 - Story

No surprise the reaction across Wall Street is strong to quite strong on the latest regulatory farice out of Europe, especially since our initial read of a 20x leverage cap was in fact low: the 3.5% minimum common equity ratio by 2013 means leverage will be just under 30x, or enough for every bank in the world to pull a Lehman, which blew itself up at roughly the same leverage. All who think European banks will survive through 2019 with this type of leverage should look into investing in these great companies: New Century Financial, Countrywide, and IndyMac.

• Asian stocks, oil rise as China output, retail sales expand; Yen declines.
• Banks worldwide face stiffer capital requirements as Basel forges accord.
• British unions warn government that public spending cuts will spark wave of strikes.
• China set Yuan's reference rate at 6.7509 vs USD - lowest level since 1980s.
• China shares, led by tourism, rise amid stronger economic indicators for August.
• China's Industrial production rises 13.9% in August, betters 13.4% growth of July.
• Economy recovering faster than expected across the European Union, but remains fragile.
• Hong Kong housing risks may exceed 1997 on rising rates, HKMA's Chan says.

Nothing on the economic front, just Tim Geithner speaking and the budget balance…

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 13/09/10