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One Minute Macro Update
Via Brian Yelvington of Knight Capital
US: Futures in positive territory this AM as news continues to be dominated by European sovereign issues and worldwide policy. Interbank spreads in the US are still sanguine, but have trickled out 2bp over the past week. The Fed disappointed (in our opinion) by announcing only $105B in asset purchases versus stepping up purchases to combat the selloff in Treasuries that has emerged over the past two weeks.
Europe: Spanish banks maintained on Neg Outlook by Moody's with an expected 12-18M outlook horizon. Jawboning over the weekend seems to have killed EFSF expansion as well as Eurobonds for the time being. We believe that Germany and France will need to see much more pain in order to make a de facto taxation palatable. The possibility of the EFSF purchasing bonds seems to be far fetched to us considering its construction, limited size, and anticipated pari passu issuance of what amounts to Eurobonds. We note that EURIBOR-OIS has widened a bit over the last two weeks and Euro CP has followed, indicating that the Euro banking system may be more vulnerable than first imagined during this period moving into turn financing.
Asia: Chinese M2 Growth Target at 16% for 2011 versus an expectation of a lowered 15% target. New loan growth lowered for 2011 and for 2010 the target it CNY 7.5T. Lack of rate hike over the weekend bolsters global markets, but we caution that eventually rate hikes will be necessary to stave off a bursting bubble owing to the extreme loan growth in the area over the past two years. AUD bank reforms out, including covered bonds.
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ah man you left out the best chart silver!
....but we caution that eventually rate hikes will be necessary to stave off a bursting bubble owing to the extreme loan growth in the area over the past two years.
this statement makes no sense at all...
The Ben Bernank movie
http://www.xtranormal.com/watch/7933323/
Page One: Sarah Palin in Haiti
Nothing on this: Richard Holbrooke critically ill after heart surgery
http://www.guardian.co.uk/world/2010/dec/12/richard-holbrooke-critical-condition
Also, SFChronical has it in the "Business" section. http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/12/12/bloomberg137...
Black Swan?
ES
Is that a growl I hear?
http://99ercharts.blogspot.com/2010/12/es_13.html
http://www.zerohedge.com/forum/99er-charts
Good luck, folks!
Buy silver.