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News that Matters - Market Close

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HEADLINES

 
  • S&P Revises U.S. Credit Outlook To "Stable" From Negative
  • Fed's Bullard Details How QE Can Be Cut
  • Fed Retreat From Bond Buying Expected By Fourth Quarter - Poll
  • U.S., Japan Leading Recovery In Major Economies - OECD
  • ECB's Draghi: ECB Will Not Buy Bonds To Save States From Going Under
  • Germany's Schaeuble: Global Monetary Policy Causing Big Problems
  • Canada Housing Starts Rise At Fastest Pace In 13 Months
  • Apple Unveils Revamped iOS, iTunes Radio
  • McDonald's May Sales Rise 2.6 Percent; Shares Up
 

COMMENTARY

 
High Noon for the euro in Karlsruhe court Commentary: German court could unmask ECB’s magic trickExpect this week the most gladiatorial of tussles between Germany’s Bundesbank and the European Central Bank at the German Constitutional Court — a High Noonepisode in long-running European psychological warfare to prevent full-scale unrest breaking out across monetary union.The eagerly awaited public hearing centers on the legitimacy of the ECB’s (so far unused) outright monetary transactions (OMT) proposition to buy weaker countries’ government bonds to heal the risk of euro EURUSD -.00%  break-up.As Mario Draghi, the ECB president, put it last week, the OMT “has been probably the most successful monetary policy measure undertaken in [the] recent time.” The OMT’s problem has also been its triumph, namely that the threat (or hope) that the ECB could undertake ‘unlimited’ support purchases of Italian or Spanish bonds, has not been turned into practice. Probably it never will be. http://www.marketwatch.com/story/high-noon-for-the-euro-in-karlsruhe-court-2013-06-10
 

 

To the Fed, taper is a four-letter word “Taper” is not a word used in polite Federal Reserve circles.That’s according to the latest piece from Wall Street Journal Fed watcher Jon Hilsenrath. He points out the term has never been uttered out loud by Fed Chairman Ben Bernanke, or by influential New York Fed President William Dudley.It’s not that the Fed can’t foresee a time when it would reduce the current $85 billion per month rate of bond purchases. But the central bank is holding out the possibility it could also increase the rate. See full WSJ.com story (subscription required).As Hilsenrath writes:

 

Because Fed officials are uncertain about the economic outlook and the pros and cons of their own program, they might reduce their bond purchases once and then do nothing for a while. Or they might cut their bond buying once and then later increase it if the economy falters. Or they might indeed reduce their purchases in a series of steps if warranted by economic developments — but they don’t want the markets to think that’s a set plan. It is, as Fed officials like to say, “data dependent.” http://blogs.marketwatch.com/election/2013/06/10/to-the-fed-taper-is-a-four-letter-word/

Euro bailout Troika nears end of road with patchy record If the Troika that handles bailouts of distressed euro zone countries were a soccer team, it would probably be looking for a new manager after achieving a track record of one win, one loss and one draw.The uneasy trio of European Commission, International Monetary Fund and European Central Bank was assembled in haste in March 2010 after Greece’s public debt and deficit exploded and it was about to lose access to market funding.Last week’s IMF “mea culpa” report about the failures of the Greek program blew the lid off the fiction that the three institutions saw eye-to-eye on the rescue packages they designed and are enforcing in GreeceIrelandPortugal and now Cyprus.http://www.reuters.com/article/2013/06/10/us-eurozone-troika-idUSBRE95904420130610

 

Greece awakens from coma but recovery likely to be anaemic Greek business is awakening from a coma; the long-forgotten sound of drills and hammers can be heard on Athens construction sites again while customers queue calmly at banks to deposit cash rather than to withdraw it in panic.Nevertheless, the government’s declaration that an economic recovery is underway seems premature, with the hard numbers signalling stagnation rather than the robust growth needed to meet ambitious debt targets and reduce towering unemployment.“True, the phones have started ringing again but nobody is placing orders yet,” said furniture maker Nikos Papadopoulos. http://uk.reuters.com/article/2013/06/10/uk-greece-economy-analysis-idUKBRE9590NZ20130610
 

FILES & LINKS

 
DATA

 

 

GOVERNMENT/ CENTRAL BANK NEWS & COMMENTARY
GOVERNMENT/ BONDS NEWS & COMMENTARY
EQUITY NEWS & COMMENTARY
CURRENCY/ COMMODITY NEWS & COMMENTARY
EMERGING MARKET NEWS & COMMENTARY

 

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Tue, 06/11/2013 - 02:20 | 3645079 ItsDanger
ItsDanger's picture

I think they mean the negative outlook is stable.

Mon, 06/10/2013 - 22:53 | 3644767 rsnoble
rsnoble's picture

When QE isn't enough to pump to higher highs.

Mon, 06/10/2013 - 21:55 | 3644599 MFLTucson
MFLTucson's picture

The clown act continues.  When we had 10 Trillion in debt we were unstable and now with 17 Trillion we are stable!  lol!!!

Mon, 06/10/2013 - 21:41 | 3644558 nathan1234
nathan1234's picture

S&P is now rated as "UNSTABLE"

Now bordering on Lunacy.

Suggest taking Prozac , if not already on it.

Mon, 06/10/2013 - 23:34 | 3644363 One World Mafia
One World Mafia's picture

S&P couldn't withstand the costs of litigation they faced by the govt after S&P downgraded the credit outlook, so they caved and upgraded the credit outlook.

In its suit following the S&P's credit downgrade the govt actually faulted the S&P for failing to predict the financial crisis when the Federal Reserve, U.S. Treasury and Wall Street also failed to see it coming.

Mon, 06/10/2013 - 19:56 | 3644222 bank guy in Brussels
bank guy in Brussels's picture

Sadly -

NSA 'whistleblower' - Edward Snowden is connected directly to the Trilateral Commission, Bilderbergs and all the oligarchs who own the American government, US Congress, US President and US bribed judges

Millionaire journalist Mika Brzezinski pumping Snowden, is the daughter of master warmonger Zbigniew 'Great Chessboard' Brzezinski, as much of a central US Shadow Government figure as the Rockefellers, Henry Kissinger, or anyone else

And her brother Ian Brzezinski has been working with Snowden at the CIA-NSA tied company Booz Allen

ZH commenter Moe (of the 3 stooges on his avatar) took the lead in spotting something fishy here very quickly when this story broke ... I hadn't looked at the video, did not know it was Mika in this

No wonder the corporate media is pumping all of this ... the same 'usual suspects' like the corrupt intel-agency-tied UK Guardian that first pumped and promoted and Assange and then started bashing him

As David Harrison of Trade With Dave says,

« What are the odds that the lady doing the interviewing about the guy who spilled his guts on the NSA are brother, sister and employee, not to mention children (a super-majority at least) of the one man who may have the President of the United State’s ear more than any other single person?  Purely a coincidence… nothing to see here folks… move along.  You can forget the Trilateral Commission ... »

http://tradewithdave.com/?p=16948

Tue, 06/11/2013 - 01:07 | 3645023 One World Mafia
One World Mafia's picture

She looks cluesless that she was handed WH talking points.  She's daddy's little girl is why she got the job.  Media is filled with ties to the oligarchs.  Same can be automatically assumed for NSA.

Mon, 06/10/2013 - 21:19 | 3644485 willwork4food
willwork4food's picture

Shit. I figured it was too good to be true. The fact that it was covered by the major news was evidence to be suspicious.

The obvious question if you are correct is WHY would they do this? I don't know what scares me more: the reality we are all tracked or the answer to that question.

Mon, 06/10/2013 - 21:46 | 3644571 nathan1234
nathan1234's picture

Apparnetly it's time for the Obummer to go.

And for the Brainless Biden ( not that the Obummer had any brains in the first place- only ability to read the teleprompter) to replace him to carry out the rest of the Agenda

 

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