News That Matters

thetrader's picture


Daily news by and some insight into the HFT and market Impact.


Regulators are nearing a settlement with Fannie Mae and Freddie Mac after a three-year investigation into whether the mortgage finance giants adequately disclosed their exposure to risky subprime loans,


The US Federal Reserve “will certainly do all that it can to help restore high rates of growth and employment”, said its chairman Ben Bernanke in a speech in Minneapolis on Thursday, a small change in his rhetoric that suggests a good chance of further Fed action at an extended monetary policy meeting later this month, the FT reports.


While strain in the short-term funding markets, where banks borrow money on a day-to-day basis, have grabbed the headlines, it is a slow withdrawal of longer-term funding that could turn out to be the bigger concern for Europe’s banks – and the wider economy,


China’s attempts to cool persistent price increases appear to be taking effect as the pace of inflation slowed in August from a three-year high in July, the FT reports. The country’s consumer price index, rose 6.2 per cent in August from a year earlier, compared with a 6.5 per cent rise in July, according to figures released on Friday by China’s National Bureau of Statistics. Consumer prices rose 0.3 per cent in August from the previous month, compared with a 0.5 per cent increase in July, marking the second consecutive moderation in the month-on-month reading. The Chinese government and most economists had predicted that inflation would peak by August and the slowdown is largely in line with expectations.



Barack Obama sought to resuscitate his flagging presidency and the US economy with a larger-than-expected $450bn jobs plan that emphasises tax cuts in a bid to win over Republican opposition, the FT reports.


Bank of America officials are discussing cutting as many as 40,000 staff over several years, the WSJ says, citing people familiar with talks about the bank’s restructuring plans. The sources say chief executive Brian Moynihan is expected to make an announcement at a conference on Monday. However the report cautioned the numbers could change;


Britain and China took fresh steps to improve their economic relationship on Thursday, agreeing to boost Chinese infrastructure investment in the UK and London’s role as an offshore trading centre for the renminbi,


Oil traders are buying protection against a 2008-style price collapse with options that gain value if US crude plummets by year end, the FT reports. Exchange data reveal a surge of interest in options that convey the right to sell oil at $50 a barrel by December,


US intelligence has received information about “specific and credible” threats of a terrorist act planned for 10th anniversary of the September 11 terrorist attacks, White House officials confirmed on Thursday evening. The information came from overseas and related to a car bomb in New York or Washington, the US media reported. However, the White House also said that the information was “unconfirmed”.


The correlation between the movement of big US stocks is at the highest level since Black Monday in 1987, with price moves increasingly driven by the ebb and flow of investors’ fears over the economic environment. Stocks, in theory, should move in individual directions based on company fundamentals. But markets of late have been characterised by mass selling alternating with waves of buying, as investors upgrade or downgrade the risk of the US slipping into recession, or a financial crisis sparked by a European sovereign default.


While Switzerland this week in effect pegged the franc to the euro, a debate is intensifying in Hong Kong over whether to sever the city’s 27-year-old peg to the US dollar. The mechanism that links the Hong Kong and US dollars at a rate of HK$7.80 to US$1 has served the city well since its introduction in 1983. It has survived the hand-over of sovereignty from Britain to China, the Asian financial crisis and repeated attacks from speculators.


Japan’s Nikkei Stock Average shed 0.5%, as investors remained non-committal after data showing the economy contracted more severely than previously reported in the April-June period after the March 11 natural disasters, as it was in line with expectations. Australia’s S&P/ASX 200 rose 0.5% and South Korea’s Kospi Composite lost 1.4%. Hong Kong’s Hang Seng Index added 0.2%, while China’s Shanghai Composite edged up 0.1%. Dow Jones Industrial Average futures were up 39 points in screen trade.


The Japanese economy contracted more severely than previously reported in the April-June period, data released Friday showed, with firms cutting back on capital spending at a faster pace in the wake of the March 11 earthquake and tsunami. The revised gross domestic product shrank at a price-adjusted annual pace of 2.1% in April-June from the previous quarter, the Cabinet Office said, compared with a preliminary 1.3% contraction announced three weeks ago. The figure matched expectations from a survey of economists by Dow Jones Newswires and the Nikkei.


The European Central Bank opened the door to interest-rate cuts if needed to bolster a weakening economic recovery—a dramatic U-turn from its decision to raise interest rates just two months ago. Economic risks have “intensified” to the downside with “enormous” uncertainty, ECB President Jean-Claude Trichet told reporters after the central bank held its main policy rate at 1.5%. He called the ECB’s reassessment of the economic outlook “significant,” and highlighted weakening global growth, declines in equity markets and strains in euro-zone government bond markets as trouble spots.


Fast-growing emerging economies in Asia are facing an unsettling combination of slowing growth and persistent inflation, complicating decisions for central banks who seem content for now to take a wait-and-see approach. With the global economy cooling, central banks in South Korea, Philippines, Indonesia and Malaysia opted Thursday to leave benchmark interest rates steady, despite signs that price pressures aren’t yet easing. These countries face a classic monetary-policy challenge of trying to fight inflation at a time when growth is slowing and the chances for an outright recession in the developed world have increased.?


The Organization for Economic Cooperation and Development Thursday slashed its growth forecasts for this year, painting a gloomy picture of the outlook in the world’s richest economies and putting pressure on central banks to intervene if there is continuing weakness or signs of recession. The Paris-based organization doesn’t expect a recession of the magnitude seen in 2008 and 2009, but protracted contractions in some countries would knock confidence, which in turn risks derailing medium term growth.


Greece’s Socialist government is scrambling to cut public spending after receiving stark ultimatums from euro-zone governments that further rescue money will be withheld if Athens doesn’t deliver on promises to reduce its budget deficit. The government now is looking at unprecedented public-sector layoffs and cuts in civil-service perks, steps that could reshape Greek political culture by upending decades of cozy ties between the ruling Socialist party and a core constituency.


Norwegian and Canadian officials on Thursday criticized Switzerland’s move this week to cap the rise of its currency, as the impact reverberated in currency markets world-wide. The Norwegian krone soared against the euro after the Swiss National Bank said Tuesday that it would use “unlimited” spending to prevent the euro from falling below 1.20 francs. The move sent investors flooding into other currencies belonging to economies viewed as fiscally sound, with Norway among the top destinations.  Norwegian central bank Gov. Oystein Olsen warned investors that a strengthening krone would stifle Norway’s economy by hurting exports. A swift policy response—likely lower interest rates—is in the offing if the krone keeps rising, Mr. Olsen said.


President Barack Obama called on Congress Thursday to pass a $447 billion package of spending initiatives and tax cuts to boost economic growth, in what might be the White House’s last chance to revive its political fortunes before the 2012 campaign kicks into high gear. More than half of Mr. Obama’s plan consists of payroll-tax cuts for employees and employers—an idea the White House hopes will appeal enough to Republican lawmakers—and is the policy that could have the best chance to pass. Among other measures, the president also called for more than $62 billion in spending to extend unemployment insurance benefits through 2012 and fund programs to alleviate long-term joblessness. He also proposed $140 billion in infrastructure spending and aid to states.


Spot gold eased 0.36 percent to $1,861.46 an ounce by 0013 GMT, well below a lifetime high around $1,920 hit this week. Lingering debt crisis in Europe and volatile currencies have sent gold prices to a series of record highs this year. U.S. gold GCcv1 added $5.2 an ounce to $1,862.7 an ounce.


Federal Reserve Chairman Ben Bernanke on Thursday said the U.S. central bank would spare no effort to boost weak growth, but to the dismay of investors stopped short of a full plunge into further monetary support. “The Federal Reserve will do all it can to help restore high rates of growth and employment in a context of price stability,” Bernanke told the Economic Club of Minnesota. In what could be taken as a bid to quell concerns among some of his colleagues that further easing could spark inflation, Bernanke said a rise in consumer prices this year would likely to be transitory.


The U.S. economy may be stumbling, but it is still standing. That was the message from two economic reports that pointed to a weak labor market but also a better performance on trade that should boost third-quarter gross domestic product. Still, Federal Reserve Chairman Ben Bernanke, highlighting an elevated jobless rate and sluggish underlying growth, hinted the central bank may ease monetary policy further at its September meeting.


G7 finance chiefs meet on Friday under heavy pressure to take action to revive flagging economic growth in rich nations and to calm the biggest confidence crisis in markets since the 2007-09 credit crunch. Host country France has called for a coordinated response from the Group of Seven industrialized nations after mounting anxiety over Europe’s debt crisis and the fragility of its banks caused a big fall in  world stockmarkets in recent weeks. Differences between the economic problems facing the United States, Britain and eurzone states are complicating the task though, meaning one-size-fits-all solutions, like moderating government budget cutbacks or unleasing more monetary stimulus, will not work.


Rising food prices that defy easing global inflation may challenge policy makers in countries including China to control costs without hurting economic growth, panelists at a forum said yesterday.  A growing middle class seeking higher-protein foods is contributing to increased demand and prices, Abby Joseph Cohen, partner and senior U.S. investment strategist at Goldman Sachs (GS) said at the Bloomberg Global Inflation Conference in New York hosted by Bloomberg Link.


Almost 13 years after its demise, the deutsche mark retains enough potency to haunt Jean-Claude Trichet’s final days as European Central Bank president.  Trichet, 68, lost his cool yesterday with a reporter who asked whether Germany should abandon the euro and return to the mark as Europe’s debt crisis roils markets and spooks voters.  “I would like very much to hear the congratulations for an institution which has delivered price stability in Germany for almost 13 years,” Trichet said in Frankfurt in an uncharacteristically raised voice. “It’s not by chance we have delivered price stability,” he said. “We do our job, it’s not an easy job.”


The race to the bottom in picking economic growth figures this year seems to have stopped nearly as quickly as it started.  No, that doesn’t mean that economists suddenly believe US gross domestic product will hit the pace it normally would see two years after the end of a recession.  But Wall Street’s biggest names have backed off earlier doom-and-gloom predictions of near-zero growth and now believe the economy at least has a better chance of avoiding an outright recession The impetus for the optimism: Thursday’s trade balance report which showed that the US deficit unexpectedly slid to $44.8 billion in July from $51.6 billion in June, primarily on the strength of a 3.6 percent surge in exports.


Taking a bleak view of Saab Automobile’s prospects for recovery, a Swedish court on Thursday rejected the troubled carmaker’s application for protection from creditors. The decision sharply narrows its room for maneuvering and pushes it a step closer to financial collapse. Saab employees have not been paid for August, and the company’s unions had been considering legal action that could have forced the company into liquidation when the bid for protection from creditors was announced on Wednesday. Saab’s unions had given guarded support to bankruptcy protection, partly because the government would have been asked to guarantee workers’ salaries. But with its prospects dwindling, unions may feel they have no choice but to press on with their legal action.


Fixed mortgage rates fell this week to the lowest levels in six decades. But few Americans can take advantage of the rates to refinance or buy a home. The average rate for a 30-year fixed mortgage fell to 4.12%, from 4.22%, Freddie Mac said Thursday. That’s the lowest level on records dating back to 1971. Freddie Mac says the last time rates were cheaper was 1951, when most home loans lasted just 20 or 25 years. The average rate on a 15-year fixed mortgage, a popular refinancing option, fell to 3.33% from 3.39%. That’s the lowest on records dating to 1991 and likely the lowest ever, according to economists.


German exports fell by 1.8% in July, much more than expected, official figures have shown. The month-on-month fall compares with a 1.2% decline in June. Economists had only expected exports to contract by 0.1% in July. At the same time, Germany’s imports fell 0.3% in July, again surprising analysts who had expected a 0.2% rise. Separate data showed France’s exports rose 0.3% in July, while its imports also increased, adding a sharp 2.9%.


Spanish home sales fell 41% in April to June from a year earlier, official figures have shown. This was a bigger fall than the 30% drop in the first quarter of 2011. The declines follow after Spain ended tax deductions for property purchases on 1 January. These had been introduced after the 2008 housing market crash. The fall in sales also reflects the continuing weakness in the Spanish economy. A new tax cut on the purchase of new homes was introduced last month


The Bank of England has kept interest rate unchanged at a record low of 0.5pc and resisted calls for more quantitative easing to boost economic growth. Thursday’s decision by the nine-member Monetary Policy Committee on Thursday was in with forcasts.  However, the minutes for the meeting due in around two weeks time is expected to reveal discussions on more economic stimulus – or money printing – as evidence grows that the economy is faltering.


Germany and Holland have threatened to block rescue payments to Greece unless the country complies to the letter with bail-out terms, raising the spectre of default and a chain-reaction through southern Europe. German finance minister Wolfgang Schauble said there will be no more money until Grecce “actually does” what it agreed to do. “I understand that there is resistance among the Greek population to austerity measures. But in the end it is up to Greece whether it can fulfil the conditions necessary for membership of the common currency. We offer no discounts,” he told Deutschlandfunk.


Britain is at “significant risk” of a double-dip recession said the Organisation for Economic Development and Co-operation, as it slashed its growth forecasts in a gloomy assessment of the wider G7 economy. The OECD predicted in its ‘interim assessment report’ that the UK economy would come to a virtual halt in the second half of 2011, with growth of just 0.1pc in the third and fourth quarters. That was a significant downgrade from the 0.4pc quarter-on-quarter growth it was forecasting in May.


One in three UK households ‘never worked’ in Liverpool. Almost one in three households in Liverpool, Nottingham and Glasgow has no-one in work – the highest concentration in the UK for the second year running, official figures show. In Liverpool, 31.9pc of houses last year were without anyone who has ever had a paid job. The figure fell from 32.1pc the previous year, but it is still the worst in the country. Glasgow had 31.1pc of workless households, down form 30.7pc the year before. But Nottingham’s “never-worked” rate increased slightly to 31.6pc.


Britain faces a very real chance that the lights could go out in the next five to 10 years, as its ailing energy infrastructure struggles to attract the massive investment needed to ensure a reliable electricity supply, according to a warning by the CBI. Companies named the potential absence of a secure, affordable energy supply as their biggest concern in a damning report published today by the employers’ organisation and KPMG. The report also finds that the UK’s road and rail systems are falling further behind the EU average, while 58 per cent of respondents said that, overall, the country’s infrastructure is more expensive, less reliable and inferior to that of the Continent.


Crude prices were up in Asian trade, boosted by data showing a drop in US oil stocks, analysts said. New York’s main contract, West Texas Intermediate (WTI) light sweet crude for delivery in October, gained 23 cents to $US89.28 per barrel. Brent North Sea crude for October delivery rose 21 cents to $US114.76. US crude oil inventories fell by four million barrels last week, according to weekly data published Thursday by the Department of Energy.


Greece ruled out quitting the euro on Thursday, shrugging off warnings by its biggest creditor Germany and yet another set of bad economic figures showing it is struggling under the weight of EU/IMF-imposed austerity. Anger at Greece’s failure to meet fiscal targets that are a condition for its international bailout is nearing breaking point in Berlin and other European capitals, with senior German politicians now talking openly about the possibility of Athens exiting the euro zone.


China’s Producer Price Index (PPI), a major measure of wholesale-level inflation, rose 7.3 percent year-on-year in August, the National Bureau of Statistics said Friday. August’s PPI growth was lower than July’s 7.5 percent increase, the NBS said in a statement on its website. During the first eight months of this year, the country’s PPI climbed 7.1 percent from the same period last year.


Brazil’s inflation has peaked, the country’s Monetary Policy Committee (Copom) said Thursday, apparently in response to doubts about its decision to slash interest rates last week. Inflation will start to drop in September, and the inflation rate in 2012 will further go lower, said Copom in a report. Given those aspects, the committee cut Brazil’s annual basic interest rate by 0.5 percentage points to 12 percent last week, and said there was room for further cuts in the future, according to the report.


South Korea’s producer prices grew at a faster pace last month than a month earlier due to higher food and energy prices, the central bank said Friday. The producer price index (PPI), a barometer of future consumer price inflation, jumped 6.6 percent in August from a year earlier, slightly faster than a 6.5 percent on-year gain in July, the Bank of Korea (BOK) said in a statement. The August growth was the highest in five months, keeping an on- year rise for the 21th straight month. From a month earlier, producer prices rose 0.3 percent last month, slightly down from a 0.4 percent on-month advance a month before.


U.S. consumer credit increased at an annual rate of 5.9 percent in July, the tenth consecutive monthly growth, offering some relief to a string of weak economic data in recent weeks, the Federal Reserve reported on Thursday. The U.S. central bank said that total borrowing in July rose to 2454.5 billion U.S. dollars from the revised figure of 2442.5 billion dollars in June. The Fed said demand for revolving credit, the category that includes credit cards, dropped 5.2 percent in July after rising 3. 9 percent in June.


France’s central bank Banque de France (BdF) on Thursday revised down growth rate forecast during the third quarter of the year to 0.1 percent from an initial estimation of 0.2 percent. According to the bank’s economic monthly report, “industrial activity rose very slightly in August” with the capacity utilisation rate reported an “ongoing decline” at 78.7 percent. In short term, the bank’s “forecasts point to stability in industrial production.” In August, services showed a tepid performance despite a buoyant activities in computer and information services. But, the BdF expected the sector’s improvement over the coming months.


Food inflation eased to single digit at 9.55 per cent for the week ended August 27 from 10.05 a week ago but provided hardly any relief to the common man as all items, except wheat and pulses, continued to rule at higher levels.  As per the WPI (Wholesale Price Index) data released here on Thursday, while pulses and wheat saw a decline in prices by 1.56 per cent and 1.04 per cent, respectively, on yearly basis, all other food items turned dearer. Prices of onions surged by 42.03 per cent and potatoes by 13.38 per cent on an annual while vegetables, as a whole, were 22.42 per cent dearer.


Union Commerce and Industry Minister Anand Sharma on Thursday said that India would meet its commitment of reducing tariff lines under sensitive list by 20 per cent for all by next month under the South Asian Free Trade Area (SAFTA) agreement signed by South Asian Association for Regional Cooperation (SAARC) member countries. “The time has come to take a call on reduction of barriers to trade. SAFTA is moving forward on the path of economic integration and India should give full support so that the region realises its full potential,”


A sharp jump in refunds eroded the Centre’s net direct tax collections by 3.4 percent during April-August 2011. However, gross tax collections for the first five months of the current fiscal grew 25.89 percent, higher than the 24 percent growth seen in the first quarter.  The improved performance mainly came through higher corporate taxes that grew about 30 percent during April-August this year.  The overall refund payout of the tax department jumped 156.04 percent in April-August to Rs 57,622 crore (Rs 22,505 crore). Net direct tax collections declined 3.4 percent to Rs 96,738 crore (Rs 100,113 crore).


India is unlikely to yield to a fresh effort by the developed countries to push for greater concessions by the larger emerging economies to salvage the World Trade Organisation’s Doha Round of global trade talks. WTO Director General Pascal Lamy told ET that some developing countries now expect the larger emerging economies, including India, to compete on a level playing field. “The question is whether emerging countries are rich, developing countries or poor, developed countries, which will determine the future course of events,” he said.


South Korea plans to expand its economic cooperation with South Asian countries in a bid to capitalize on one of the fast-emerging markets in the world, the finance ministry said Friday. The move comes amid growing demand for export market diversification as the world’s major economies such as the United States and European Union remain fragile, posing a threat to South Korea’s trade-reliant economy.


South Africa’s manufacturing output fell by a more than expected 6.0% year-on-year (y/y) in volume terms in July, compared with a revised 0.8% increase in June, Statistics South Africa said on Thursday. Economists in a Reuters poll saw a contraction of 0.6% y/y in July’s factory output.  Compared to June, production in volume terms also contracted by a seasonally adjusted 6.0% in July. It was down 3.5% in the three months to July, compared with the previous three months.


You might want to check out Dalio’s Secret Rules after reading the below. Dalio and Renaissance are the Winners this year. Link to Dalio’s Rules. From FinAlternatives; Amidst August’s hedge fund carnage, some managers were able to produce some impressive returns. Perhaps not surprisingly, some that did are among the biggest and most successful in the industry.


Remember when the World did care about Oil, Opec and Saudi Arabia? Well it is time for an OPEC meeting on Sep 9th. Some insight by Stratfor on OPEC and Saudi Arabia. On Sept. 9, OPEC will be holding one of its regular summits to decide what to do about their oil output quotas – raise them, lower them or keep them the same. The decision will be made with an eye towards Libya. When Libya descended into civil war a few months ago, it took about 1.8 million barrels per day of high-quality low-sulfur crude offline. There are many among the OPEC talks who are concerned what will happen in the aftermath of the fall of the Gadhafi government. If the replacement government, whatever that happens to look like, is able to bring oil back online quickly, oil prices could go into a tailspin, they fear.

Comment viewing options

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

Entertainment Supplies
Wholesale Dartboard

Wholesale Dartboard
Wholesale Cup
Electrical Gifts

Wholesale Bracelet
Wholesale Radio
Wholesale Candle

Poncho Raincoat
Baby Products Suppliers
Promotional Products

Business Gift
Wholesale Cap
Voice Recorder

Business Gift
Wholesale Lanyard
Wholesale Toys

Wholesale Tellurion
Pen Holder
Wholesale Racks

Wholesale Furniture
Wholesale Clap Hands
Promotional Gifts

Beauty Equipment
Promotional Gifts
Wholesale Thermometer

Wholesale Bookmark
Wholesale Whistle
China Wholesale

Audio Video Equipment
Health Care Products
Wholesale Stapler

Wholesale Whistle
China Wholesale
Wholesale lable

Entertainment Supplies
Wholesale Belt
Coca Cola Gifts

Wholesale Mouse
Wholesale Album
Vocal Concert Products

Wholesale Shoe
Wholesale Clothes Rack
Silicone Wallet

Wholesale Bookmark

janus's picture


yo tambien!

trader, you do yeoman's work, and it does not go unnoticed by janus.

hip-hip for TRADER! 

you deserve far more plaudits, as you are vital to janus's morning calculus.

so, here you go, my unappreciated one, the prodigal son:

Well father said, "Eldest son, kill the fatted calf,
Call the family round
Kill that calf and call the family round
My son was lost but now he is found
'Cause that's the way for us to get along"

kill dat calf!/

dats de way fer us to get along,


rufusbird's picture

"US intelligence has received information about “specific and credible” threats of a terrorist act planned for 10th anniversary of the September 11 terrorist attacks, White House officials confirmed on Thursday evening."

This is a Tremendous development! We have already received more advance information about the whispers of a potential 2011 9/11 attack that we have received from Government sources on the entire 2001 9/11 attack.

Soul Train's picture

Outstanding summary. Thanks.

Stax Edwards's picture

Really enjoy this summary every morning!