Germans: Don't make me angry, you wouldn't like me when I'm angry!

Pivotfarm's picture


Today’s Data & journal links

Data sheets describing major market metrics, news and a journaling area for trading records in the centre of the pdf.

eurusd | gbpusd | usdjpy | s&p500 | nasdaq | dow jones | goldcrude oil

News and Views in brief


Prime Minister George Papandreou's shock decision to call a referendum on Greece's bailout drew veiled threats from Germany on Tuesday and hammered markets edgy over the euro zone crisis.

Stock index futures tumbled on Tuesday as the deal to rescue Greece and prevent a wider sovereign debt crisis faced a new hurdle and as Asian economic data reignited fears of a slowdown in global growth.

Greek Premier George Papandreou said he will put Greece's bailout deal through a referendum, throwing the long-awaited deal into disarray and sending European stocks down 3.5 percent. The region's bank shares fell 6 percent.

Australia’s central bank cut interest rates for the first time since 2009 and a Chinese manufacturing index slid, stoking concern that Europe’s debt crisis is weighing on Asia’s export-dependent economies.

The Reserve Bank of Australia today reduced its key lending rate to 4.5 percent from 4.75 percent, saying Europe’s woes are starting to hit Asian trade. In China, a purchasing managers’ index fell to 50.4, the lowest level since February 2009, while South Korea reported the smallest gain in exports in two years.

Asian stocks fell for a second day as slowing growth in the region threatens to limit a global expansion already constrained by elevated unemployment in the U.S. and Europe’s crisis. The Chinese report showed a contraction in export orders, fueling speculation that Premier Wen Jiabao may loosen policies to support the world’s second-biggest economy.

Indexes –

European stocks dropped, extending the Stoxx Europe 600 Index’s biggest plunge in four weeks, as the announcement of a Greek referendum spurred concern that the country may default. U.S. futures and Asian shares retreated.

Credit Suisse Group AG (CSGN) and Danske Bank A/S led a selloff in lenders, both dropping more than 7 percent, after earnings fell short of analysts’ estimates. National Bank of Greece SA (ETE) sank 12 percent in Athens trading. Mining companies tumbled after a gauge of Chinese manufacturing dropped to the lowest level since February 2009.

U.S. stock futures dropped, indicating the Standard & Poor’s 500 Index will retreat for a second day, on worse-than-expected manufacturing data from China and uncertainty surrounding European bailout efforts.

Bank of America Corp. (BAC) fell 3.1 percent in early New York trading as it may have to scrap plans to impose a monthly fee on some debit card users. Universal Display Corp. (PANL), the developer of technologies used in flat-panel displays, slid 2.4 percent in Germany. Pfizer Inc. rose 1.6 percent in early New York trading after reporting earnings that beat analysts’ estimates.

S&P 500 futures expiring in December fell 1.9 percent to 1,225.1 at 7:13 a.m. in New York. Contracts on the Dow Jones Industrial Average declined 158 points, or 1.3 percent to 11,739.


The euro weakened for a third day against the dollar, extending yesterday’s 2 percent slump, as renewed concern Greece will default and the European Central Bank will cut interest rates damped demand for the currency.

The 17-nation euro fell the most in two weeks versus the yen after Greek Prime Minister George Papandreou pledged to put the European Union’s latest accord to a referendum, risking pushing the country into default if rejected by voters. The dollar and yen strengthened as stocks slid around the world and a Chinese report showed manufacturing slowed. Australia’s dollar declined after the nation’s central bank cut interest rates.

“European fears and risk aversion are trumping everything and gives euro bears the confidence to have another go at the shared currency,” said Kit Juckes, head of foreign-exchange research at Societe Generale SA in London. “What the Greeks are considering doing would result in about as disorderly a default as you can get. That threatens to return Europe to the maelstrom” and boosts the chance of an rate cut

The Australian dollar fell for a third day against its U.S. counterpart after the Reserve Bank cut interest rates for the first time in 2 1/2 years on signs global growth is moderating.

The so-called Aussie declined against its 16 major peers after RBA Governor Glenn Stevens said inflation is close to the central bank’s target, adding to prospects policy makers may further reduce rates. Demand for the Australian and New Zealand dollars was limited after data showed manufacturing in China, the South Pacific nations’ major trading partner, slowed.

“The Aussie is lower after the RBA rate cut,” said Lee Wai Tuck, a currency strategist at Forecast Pte in Singapore. “It seems like they have opened the door for more rate cuts because they say that inflation is likely to be close to target. I think there’s a possibility there may be another cut in December.”


MF Global Holdings Ltd. (MF), the holding company that filed for bankruptcy protection, was suspended from trading on the London Metal Exchange. CME Group Inc., the largest futures market, also suspended the broker-dealer unit MF Global Inc. as a clearing member.

MF Global U.K. Ltd. was excluded from LME electronic and floor trading after it was declared a defaulter by LCH.Clearnet Ltd., which clears transactions, the LME said in an e-mailed statement yesterday. The unit is one of 12 category 1 members, giving it the right to trade in the LME’s 6-meter-wide (20-foot) ring, home to London’s last open-outcry transactions.

Steelmaker demand for iron ore, the biggest source of cargoes for commodity carriers, is weakening, threatening to end the most profitable shipping rates in almost a year.

Ore stockpiles at ports in China, the largest user, already expanded to within 3.6 percent of a record, according to Antaike Information Development, a Beijing-based researcher. Chinese steelmaking is near the least profitable in almost three years, data compiled by Bloomberg Industries show. Iron-ore swaps, traded by brokers and used to bet on future costs, show no price rebound until at least 2013, according to Clarkson Securities Ltd., a unit of the world’s biggest shipbroker.


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
AvenoSativo's picture

The title says the Germans have provided a threat and, yet, the article itself is just a re-cap of the market status.

Who of the Germans made that threat, pray?

walküre's picture

Germans aren't angry. We are just not stupid enough to believe anything ever again from the crooks in Greece.

If the crooks in Greece get to vote themselves their own misery, then Germans should equally be allowed to have a vote on whether to pay for Greece and other fuck-ups.

Greeks will end up with a completely worthless currency and a country drowning in liabilities and debt. That's their alternative to taking the bailout and austerity option and remaining a part of the EU and the Eurozone.

Voting against the deal is going to be much more painful unless global demand for olive oil and ruins goes parabolic.

eurogold's picture

I hope Greece enjoys being a Third World Country ! The sooner the better !

hourglass86's picture

At least Greeks didnt bake humans into ovens! 

eurogold's picture

Hourglass.......You are one stupid SOB!

kaiserhoff's picture

Nor did they fight a major war to preserve a monopoly on opium.

Dingleberry's picture

 A couple of opium wars in fact, if memory serves........I used to think Larouche was a total quack when he referred to the Queen as a "dope pusher".  Twenty years hence, I must be a quack now too.  Those Brits, with their "City of London" types, make the Nazi's look like angels.  They are truly the bane of the universe, and to think dumb-ass American bitches watch what the royals do all the time, like nuptials n' shit.  Fucking stupid.......

supernova's picture

Have you guys seen this? Apparently there are more Prsche Cayennes registered in Greece than taxpayers declaring an income of more than EUR 50,000...

kaiserhoff's picture

Shame on you pussy cat.  "We can't go on together, with suspicious minds."

                                                     Elvis the Pelvis;)

Sudden Debt's picture

Maybe they see "income" as the money you get after working. So income is not the word they use for the revenue they use to buy these cars.


eurogold's picture

So true....thankfully they will soon learn what the word "work" really means.

my puppy for prez's picture

This reminds me entirely of a 3rd grade playground fight!  Hair pulling, rock throwing, and all the other tactics we adults remember!  If it weren't so sad and so dire, it would be hilarious....

my puppy for prez's picture

I cruised over to CNBC to see what the zombies were discussing and to check on the minute-by-minute implosion of the markets.  I literally cracked up when I saw the headline to a link that pondered "Why are hedge funds doing so badly?"

Is this a serious question at CNBC?  Sheesh....

my puppy for prez's picture

I cruised over to CNBC to see what the zombies were discussing and to check on the minute-by-minute implosion of the markets.  I literally cracked up when I saw the headline to a link that pondered "Why are hedge funds doing so badly?"

Is this a serious question at CNBC?  Sheesh....

xcehn's picture

Yeah, the West will throw Papandreou to the wolves after he no longer serves their use (just like Mubarak and Gaddafi). Papandreou has come to understand that his future doesn't look good. And for all the lip-service the West pays to democracy, when it comes down to brass tacks, they care about serving the banksters only, not the best interests of the people ANYWHERE. Papandreou's only chance is to allow an honest referendum to determine Greece's fate. Sarko's poodle, Merkel, made her bed of nails and will soon be booted out, once all the insolvent banks quickly start falling down.

Mr_Wonderful's picture

Totally concur.

Insolvent banks need to seek capital in the markets by issuing new stock. It would be best for them to reverse split first to write off worthless shares.

gmrpeabody's picture

How is it that your two cents seems to supercede Vato Poco's two cents?

kaiserhoff's picture

check your settings.  the Tylers are always reinventing the wheel;)

vato poco's picture

Did I say 'Germany invades Poland'? Sorry. I meant to say 'Germany invades *Belgium*'. That IS the correct historical model, is it not?

gmrpeabody's picture

Between Greece and Italy, I think the Germans may just throw in the towel on the EU!

Looks like we are in for an EU shuffle, combined with a NATO shake-up. The Last Great War and the War To End All Wars apparently are still to be played out. This time, the Germans will choose a one front war or, at least, hold off on "Barbarrosa" for a time.

chunga's picture

Now might be a good time to re-read Robert Ludlum's "Apocalypse Watch".

Cole Younger's picture

The germans won't do squat. They will lick there wounds like the rest of the world. I find it funny how they can ask private investors to take a haircut but can't accept one if Greece defaults.

Rynak's picture

Actually, the title is kinda right..... but in the opposite way: The german population. They're pissed BECAUSE of the euro, and if you'd hold a referendum right now, they'd insta-leave the EMU.

But i guess, just as with the "Americans are shopping like mad" article, the memo didn't arrive to pivotfarm in time, so that he once again writes about stuff which he doesn't understand.

Mugatu's picture

Sonderkommando Elbe - For those who do not remember, the Germans had their own version of the kamikazee fighter. The Germans will not threaten to blow it up!


Sonderkommando "ELBE" was the name of a World War II Luftwaffe task force assigned to bring down Allied bombers by ramming German aircraft into the bombers to suspend allied tactical bombing for four to six weeks to create a significant amount of the Messerschmitt Me 262 jet fighter.

vato poco's picture

This just in: Germany invades Poland!

philipat's picture

The Greeks are so appreciative of the (Limited) support from the hard working Germans and Northern Europeans? The Germans and the hard working Northern Europeans should tell the Greeks to Fuck off and let them fail. Along with the French Banks. Let's get it over with so the rest of the world can move on?

WALLST8MY8BALL's picture

Cant wait to winter in the Greek Islands I mean the  German Riviera!

eurogold's picture

I love it! I will open a "Taverna" (on a nice stretch of beach) and serve the german tourists authentic Bratwurst and some decent German Beer.

Come visit Me in 2 years when I am a multi-millionaire.

disabledvet's picture

Yeah, well "that could be Napoleon's Winter Quarters" if Europe isn't careful here. "They've already committed to an invasion." Now it's "we can't pay for it either?"

disabledvet's picture

God help them "if they never had the money to begin with."

LawsofPhysics's picture

So, how's that infinite growth model working out for everyone?

GOSPLAN HERO's picture

Don't fuck with the Fourth Reich!

covert's picture

super kewl. Germany has a good chance at a great future.


ironsky's picture

Is the German army called Bundeshear because they wear nylons? Frederick II has decided to wait another 1000 years to reincarnate.