Archive - Aug 30, 2013 - Story

• Al-Qaeda Links Cloud Syria as U.S. Seeks Clarity on Rebels (BBG)
• Administration Tells Lawmakers of Evidence Linking Assad to Attack (WSJ)
• Director of National Intelligence James R. Clapper to publish numbers of secret spying orders (CBS)
• U.S., Switzerland strike bank deal over tax evasion (Reuters)
• Another Budget Deal Bites the Dust (WSJ)
• Contemplating Summers Drives Investors to Seek Beltway Expertise (BBG)
• Austerity Test Looms in Australia as Abbott Pledges Cuts (BBG)
• Gay Spouses in All States Now Married Under U.S. Tax Law (BBG)
• Shadow banks face limits to securities trading (FT)
• EU's Rehn sees European recovery strengthening in 2014 (Reuters) ... or 2015... or 2022... or never?

Overnight, the market continued to digest news out of the UK that the formerly solid pro-war alliance has splintered following a historic vote by the House of Commons, leaving Obama to "go it alone." The result was a rather sizable slamdown in both crude and gold, accelerating as Europe opened for trading, and pushing gold back under $1400. This happened even as data out of Europe showed that European unemployment remained at a record high 12.1%, while inflation missed expectations and printed at 1.3%, or below 2% for the seventh month. Earlier in the session, headline data out of Japan showed that inflation had risen at the fastest pace since 2008. However, before the deflation monster is proclaimed dead, the core-core figure (excluding foods and energy) of the Tokyo CPI was down 0.4% yoy, unchanged since June for three months, suggesting that prices are still largely driven by energy-related costs. In other words cost-push inflation is rampant, which is the worst possible scenario and means the BOJ's QE is going to all the wrong place.