Archive - Nov 1, 2011 - Story

• China PMI in surprise fall, lowest since 2009 (Reuters)
• Fury in Germany after Greek referendum call (Reuters)
• Europe Debt Crisis Threatens Asian Growth (Bloomberg)
• Gang Forms Inside US Debt Panel in Quest for Deal (Reuters)
• Italy's crisis deepens on eurozone slump, bail-out doubts (Telegraph)
• Greek vote would be on euro membership: Finnish minister (Reuters)
• President Hu confident in Europe (China Daily)
• New invoice system to further regulate rare earths industry (China Daily)
• Ministers fear steep rise in job losses(FT)

• Concerns surrounding the Greek debt situation resurfaced after the Greek PM called for a referendum on the new EU aid package, and news that the Greek government is planning a vote of confidence this Friday
• Lacklustre manufacturing PMI data from China dented appetite for risk
• GBP came under pressure following weaker than expected manufacturing PMI data from the UK, however did recover some strength after higher than expected UK’s third quarter advanced GDP reading
• The RBA cut its benchmark interest rate overnight by 25 basis points as expected

The futures are tumbling with U.S. futures falling in sympathy with plunge in European stocks; Italy’s FTSEMIB index down 5.3%, DAX down 4.4%, CAC down 4.3%, Spain’s Ibex down 4.1%, FTSE down 2.9%. But here is the true reason why Europe already needs another bailout, or the promises thereof, courtesy of those so vile CDS which no matter how hard it tries, Europe just can't kill:

• Italy CDS Rise 45.5 bps to 491; update +53 495/505
  
• France CDSs rise 14 bps to 190; update + 17 191/196
• Spain CDSs rise 33.5 bps to 374.5; update + 41 375/385
  
• Portugal CDSs rise 57 bps to 1,028; update + 71 1015/1055

The reason? Why Greece of course: the same referendum decision that it took the market yesterday 45 minutes to process before the sell off began.