Nice equity (and commodities) close (DAX futures peaking at +2%).
Didn’t seem to impress EGBs, though. Nor credit, as it stands. No ROn mode behaviour here. And certainly not for Italy.
- If Hilsenrath leaks a Fed party line and nobody cares, does Hilsenrath exist? Fed Weighs More Stimulus (WSJ)
- Clock Is Ticking on Crisis Charges (WSJ)
- South Korea in first rate cut since 2009 (FT)
- Shake-Up at New York Fed Is Said to Cloud View of Risk at JPMorgan (NYT)
- Italy stats office threatens to stop issuing data (Reuters)... because Italy is "out of money"
- China New Yuan Loans Top Forecasts; Forex Reserves Decline (Bloomberg).. and here are Chinese gold imports
- Italy Faces 'War' in Economic Revamp, Monti Warns (WSJ)... says Mario Monti from Sun Valley, cause Italy is "out of money"
- NY Fed to release Libor documents Friday (Reuters)
- U.S. House Again Votes to Repeal Obama’s Health Care Law (Bloomberg)
- Germany May Turn to Labor Programs as Crisis Worsens, Union Says (Bloomberg)
- Ireland to unveil stimulus package (FT)
- San Bernadino: Another Calif. city goes bankrupt (247)... It appears Hell's Angels don't pay municipal taxes after all
- Rajoy announces 65 Billion Euros Of Cuts To Fight Crisis (Bloomberg)... And Spaniards prepare to not pay taxes
- Spain pressed to inflict losses on savers (FT)... And Spaniards prepare to sue
- Spain to Cede Bank Control (WSJ)... And Spaniards prepare to protest
- Rate Scandal Stirs Scramble for Damages (NYT)... but who do you sue: the Fed?
- Paulson Ex-Lieutenant Caught in Fund's Slide (WSJ)
- ILO warns 4.5m jobs at risk in eurozone (FT)
- Global economic crunch confirmed every day: Airbus Scraps Target of 30 A380 Sales as Demand Dwindles (BBG)
- Same old: Finland says requires collateral from Spain for bank aid (Reuters)
- Cameron and Hollande clash on tax (FT)
- Wen Says Boosting Investment Now Key to Stabilizing China Growth (Bloomberg)
A preview of the key events in the coming week (which will see more Central Banks jumping on the loose bandwagon and ease, because well, that is the only ammo the academic econ Ph.D's who run the world have left) courtesy of Goldman Sachs whose Jan Hatzius is once again calling for GDP targetting, as he did back in 2011, just so Bill Dudley can at least let him have his $750 million MBS LSAP. But more on that tomorrow.
- Beggars can't be choosers after all: Greece Drops Demand to Ease Bailout Terms (FT)
- It took journalists 4 years to get that under ZIRP all banks have to be hedge funds: US Banks Taking Risks in Search of Yield (FT)
- Made-In-London Scandals Risk City Reputation As Money Center (Bloomberg)
- Merkel Approval Rises to Highest Since 2009 After EU Summit (Bloomberg)
- Judge orders JPMorgan to explain withholding emails (Reuters)
- U.S. hiring seen stuck in low gear in June (Reuters)
- Germans Urged to Block Merkel on Integration (WSJ)
- Crony Capitalism Rules: Countrywide used VIP program to sway Congress (Reuters)
- Barclays’ US Deal Rewrites Libor Process (FT)
- Cyprus Juggles EU and Russian Support (FT)
- Delay Seen (Again) For New Rules on Accounting (WSJ)
- Lagarde Says IMF to Cut Growth Outlook as Global Economy Weakens (Bloomberg)
- The next Enron: JPMorgan at centre of power market probe (FT)
- Former Brokers Say JPMorgan Favored Selling Bank’s Own Funds Over Others (NYT)
- Ex-JPMorgan Trader Feldstein Biggest Winner Betting Against Bank (Bloomberg)
- Finland Firm On Collateral As Spain Aid Terms Discussed (Bloomberg)
- Heatwave threatens US grain harvest (FT)
- Wall Street Is Still Giving to President (WSJ)
- Greenberg Suit Against U.S. Over AIG To Proceed In Court (Bloomberg)
- Crisis forces "dismal science" to get real (Reuters)
- Hope continues to be as a strategy: Asia Stocks Rise On Expectation Of Monetary Policy Easing (Bloomberg)
Understands who can… The Brussels nightly drama yielded first tweeted “results”, then none, then yes. Then some bickering, Southern drama, then truce. Then they still were not done haggling.
Happy Father's Day!
Four months before the election. And yet, a horrendous migration across the Pacific
Following misses to expectations in every single economic data point for the past week, not to mention today's Empire Index, Industrial Production, and Capacity Utilization we just got the latest June University of Michigan Consumer Confidence number which, lo and behold, printed at 74.1 on expectations of 77.5, and a plunge from May's 79.3. In brief, this was the biggest miss to expectations since February of 2006. If this latest economic datapoint abortion does not send the market soaring, nothing will.
The announcement by the UK Treasury and BoE to take co-ordinated steps to boost credit and with the central bank re-activating its emergency liquidity facility has resulted in a sharp move higher in UK fixed income futures. GBP swaps are now pricing in a cut of 25bps in the base rate by the end of this year and following on from Goldman Sachs, analysts at Barclays and BNP Paribas are now calling for an increase in QE next month. The new measures have seen the likes of Lloyds Banking Group (+4.3%) and RBS (+7.0%) outperform the more moderate gains observed in their European counterparts. Meanwhile in Europe the focus remains on the possibility of co-ordinated action from the major central banks. However, it would seem more realistic that any new measures will likely come after the Greek election results are known and once ministers have conducted their G20 meetings. Given that there is an EU level conference call this afternoon scheduled for 1500BST the likelihood of rumours seem high but as the wires have indicated already these conversations are purely based upon co-ordination ahead of the meeting which is usual practice. The yields in Spain and Italy have been a lot calmer so far with the 10yr in Spain at 6.88%, off the uncomfortable test of 7% seen yesterday.
The Euro Takes the Road Well Traveled: Paths emerge. The EU has options. Yet they continually choose the well-beaten road of fiscal suicide.
If Greece, Ireland, Portugal and Spain can do it, why not everyone? Heck, why pay for anything, instead of just ramping up debts, until the consolidated debt load is so high the Fed has no choice but to bail everyone out? Of course, this is purely a thought experiment (for now... there are still 5 months in the presidential race). Still, we were curious to see if there is validation of this meme "out there" - and to do this we of course went straight to the source - Google's most recent addition in tracking public queries, Insights for Search, and looked up the term "bailout." We were not at all surprised to find the English-speaking world's curiosity in this particular synonym for a 'free lunch' (with other people's money) has exploded in the last few weeks.