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Frontrunning: October 19

Submitted by Tyler Durden on 10/19/2010 09:17 -0400

Must read for all those who still don't get the Sino-US monetary/FX dynamics: PBOC's `Vicious Cycle' Worsened by Fed, Yu Yongding Says (BusinessWeek)
And, apparently, this guy should read it - IMF Head Cautions on Money Flows to Asia (WSJ)
Time to panic: Geithner vows U.S. will not devalue dollar (Reuters)
China Daily:Appreciation Must Proceed 'Gradually' (China Daily)
Instinet joins the Flash Crash voices of reason: SEC "flash crash" study draws another skeptic (Reuters)
Sarkozy Stands Firm Against Pension Protests (FT)
Japan Says Economy at Standstill (Reuters)
EU Deal Opens Treaties for Renegotiation (FT)
The Australian:Reserve Bank Minutes Harden Case for Rate Hike by 2011 (Australian)
Zapatero Heads to Spain Budget Victory After Getting Majority (Bloomberg)
Currencies Should Reflect Economic Fundamentals, Eurogroup's Juncker Says (Bloomberg)
Barker Says Adding BOE Stimulus Risks Stoking Inflation More Than Growth (Bloomberg)

Economic data:

Euro-Zone Current Account nsa for August -10.5.Previous 3.7.
Euro-Zone ECB Euro-Zone Current Account SA for August -7.5.Previous -3.8.
Euro-Zone Construction Output SA for August -0.4% m/m.Previous -3.1% m/m.
Euro-Zone Construction Output WDA for August -8.5% y/y.Previous -7.5% y/y.
Euro-Zone ZEW Survey (Econ. Sentiment) for October 1.8 - higher than expected.Consensus -2.0. Previous 4.4.
Germany Zew Survey (Current Situation) for October 72.6 - higher than expected.Consensus 64.00. Previous 59.9.
Germany ZEW Survey (Econ. Sentiment) for October -7.2 - lower than expected.Consensus -7.0. Previous -4.3.
Japan Nationwide Dept. Sales -5.2% y/y. Previous -3.2% y/y.
Japan Tokyo Sept.Store Sales -3.8% y/y. Previous -3.4% y/y.

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Tue, 10/19/2010 - 09:20 | 660892 bobert

Seems there's a positive correlation downward in all assets today cept MM's.

Tue, 10/19/2010 - 09:23 | 660900 Shameful

Wow Tiny Tim. I know our "leaders" don't think much of us, but jeez. What ever happened to keeping lies somewhat believable? He might as well say that he is going to pull a Superman, force the world back in time and prevent the crash of 08.

Tue, 10/19/2010 - 09:43 | 660978 Xedus129

Seriously. Does anyone buy this crap?

Tue, 10/19/2010 - 09:25 | 660914 EscapeKey

Hmm.. futures negative. I give it 15 minutes before the PPT has pumped the market into green.

Gold is taking a hit this morning, but I'd much rather keep my wealth in that, than that phony asset called the "US Dollar" (/Euro/GBP/...).

Tue, 10/19/2010 - 09:27 | 660922 bobert

Front run the PPT???

Or, react contrarian after they perform?

Tue, 10/19/2010 - 09:33 | 660948 EscapeKey

It's sickening the thought that you even CAN frontrun the PPT, isn't it? The PPT is there to save the market (in theory, at least), is backed by taxpayer money, ... and speculators actively invest against it.

Pretty much says it all about our "free markets".

Tue, 10/19/2010 - 09:31 | 660941 Spalding_Smailes

In a monthly report, the government downgraded its assessment of the economy for the first time since February 2009. A senior Japanese official said further pressure on the economy, which is mired in stubborn deflation, could tip it into recession.

"If the economy turns out as expected in our main scenario, we may end up describing the current situation as a soft patch," said the official at the Cabinet Office, which compiled the report.

"But if it comes under further downward pressure, it could end up slipping into recession," he said.

Tue, 10/19/2010 - 09:55 | 660953 HelluvaEngineer

Tue, 10/19/2010 - 09:45 | 660987 Cookie

Do not miss this news re REM

http://www.nytimes.com/2010/10/19/business/global/19mineral.html?_r=1&ref=business

Tue, 10/19/2010 - 10:00 | 661025 snowball777

That's just how a central-planner opens a long position.

Tue, 10/19/2010 - 10:00 | 661028 curbyourrisk

LET ME FIX THIS FOR YA...

Geithner vows U.S. will not devalue dollar ANYMORE.......(SERIOUSLY, I MEAN IT)

Tue, 10/19/2010 - 10:06 | 661044 zloty owadow

Of course they won't devalue the USD. They will do something else instead.

For example, in 1971, Richard Milhaus Nixon said he would never devalue the USD. Then the next Sunday he cut the tie between the USD and gold.

They already know what they're going to do, and it involves some action which will be explained on TV in a way which will allow the smiling people who enjoy taking smoke rectally to do so. Once they pull the trigger, others will scratch their head and say, "But isn't that a devaluation?"

Tue, 10/19/2010 - 10:36 | 661131 kathy.chamberli...

"enjoy taking smoke rectally" never ever heard of such a thing†

Tue, 10/19/2010 - 12:46 | 661635 zloty owadow

It's very common in countries where people watch more than one hour of TV each day. They get to where they like having smoke blown up their asses so they don't have to deal with reality...

Tue, 10/19/2010 - 10:25 | 661087 Johnlaw2012

19 October, 1987 BlacK Monday

DJIA (19 July 1987 to 19 January, 1988).

FTSE 100 Index (19 July, 1987 to 19 January, 1988).In finance, Black Monday refers to Monday, 19 October, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong, spread west through international time zones to Europe, hitting the United States after other markets had already declined by a significant margin. The Dow Jones Industrial Average (DJIA) dropped by 508 points to 1738.74 (22.61%).[1]

Losses
By the end of October, stock markets in Hong Kong had fallen 45.5%, Australia 41.8%, Spain 31%, the United Kingdom 26.4%, the United States 22.68%, and Canada 22.5%. New Zealand's market was hit especially hard, falling about 60% from its 1987 peak, and taking several years to recover.[2] (The terms Black Monday and Black Tuesday are also applied to October 28 and 29, 1929, which occurred after Black Thursday on October 24, which started the Stock Market Crash of 1929. In Australia and New Zealand the 1987 crash is also referred to as Black Tuesday because of the timezone difference.)

Tue, 10/19/2010 - 10:42 | 661151 kathy.chamberli...

i was just talking to one of the most beautiful human beings i have ever met, last saturday. she is quite astute with finances and all things stock market. she said she lost 7 million dollars during that crash. but she had her gold jewelry and that was her hedge against her loss. she came back just fine, thank you. plus we both agreed we could get on a plane with our gold jewelry valued over ten thousand dollars, and sell it some where else. i am still a little confused about my wording but you might know what i am saying. maybe it is mental insurance, gold jewelry and all.

Tue, 10/19/2010 - 10:55 | 661202 Silverhog