Moody's Puts Portugal Aa2 Rating On Downgrade Review - Full Text

Today's rating action reflects the recent deterioration of Portugal's public finances as well as the economy's long-term growth challenges. "The review for possible downgrade will consider a repositioning of Portugal's ratings to reflect the potentially lasting deterioration in the government's debt metrics," says Anthony Thomas, Vice President-Senior Analyst in Moody's Sovereign Risk Group. "In the context of a small and slow-growing economy, such debt metrics may no longer be consistent with a Aa2 rating."

The weakening of Portugal's public finance position reflects the failure of successive administrations to consistently limit government budget deficits since Portugal joined the eurozone at its inception. "More recently, however, the government's has reiterated its objective to achieve or even surpass the deficit reduction targets published in its latest Stability and Growth Programme," says Mr. Thomas. "The well-structured debt profile means that refinancing risks are modest."

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 05/05/10

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 05/05/10

Daily Oil Market Summary: May 4

The oil markets were hammered on Tuesday as investors liquidated equities and commodities aggressively. From a purely technical perspective, looking only at crude oil, prices failed to break out above $87.09, getting only as high as $87.15 before turning back down. That can be seen as a technical failure.
Adding to yesterday’s heavy liquidation, though, was widespread selling in equities. The DJIA was down more than 230 points at noon and, shortly after that, crude touched the $3.00/bbl lower mark. Gold prices were down $7/ounce and the euro was down 150 points. The focal point Tuesday morning was the Greek bailout and its possible failure, which many thought could lead to chaos or panic.

Max Keiser On Goldman Sachs And Bill Clinton's Hypocrisy; Peter Schiff Interview

Max Keiser is in his prime discussing Goldman and Bill Clinton's hypocrisy in defending Goldman. Which is not all that surprising considering Clinton's son-in-law Marc Mezvinsky is a Goldman Investment banker. Anyway, in addition to the usual scathing observations on the life, universe and everything, Max goes head to head with Senate hopeful Peter Schiff. Good clean fun ensues, with Alan Greenspan's invitation to the Keiser show pending.

And We Are Not Done

A quick look at these charts says that unless this is yet another fake H&S which will get squeezed in no volume tomorrow, we have more to go. The previous times though we had divergence as we were triggering the patterns: not this time. Clean H&S break on the Nikkei future and Nasdaq future. Similar pattern on the S&P (though downward sloping neckline) and the Elliott Wave count indicates that whether this is a full bearish impulse from the highs or just an A-B-C correction, the 3/ or C wave is not completed for sure. Looking closely at the sub-structure for AUDUSD confirm our impressions. We see intermediary target at 1,934 for the Nasdaq future and 1,143 for the S&P future, but the key medium term support for the S&P future is currently at 1,114. - Nic Lenoir

Dom S-K (IMF) Says US Taxpayer Subsidy To Greece Should Have Come At Cheaper Rates

IMF CHIEF SAYS EUROPEAN LOAN SHOULD HAVE BEEN AT IMF RATE

Because, you know, it is so usurious and greedy of US taxpayers to demand a 5% rate for a 3 year loan to a bankrupt country. As we get more on this preamble into QE2, we will post it. Presumbly someone is transcribing the monologue by Mrs. Dominique Genghis-Khan, aka Shalom of the Old Country.

In Other News, Greeks Will NOT Hold A Full Day Strike On Sunday

If only the Greeks were as passionate about maintaining the debt of their economy at a reasonably insane level, as opposed to the "full retard" reserved for banana republics such as the UK and the US, as they are about striking when it comes to preserving their entitlements, Europe would have a budget surplus of several quintillion. Today, and tomorrow, and likely everyday thereafter, Greece will be shut down as billions in non-taxable economic output is eliminated, trade is shuttered, and the tourism industry is dead. And since hospitals are also on strike, tourism may be the least of the casualties. Bloomberg reports: "Greek government workers shut down schools and hospitals and disrupted flights as demonstrators occupied the Acropolis in an escalation of protests against 30 billion euros ($40 billion) of additional wage cuts and tax increases unveiled this week." And no, there is no hope: "“Protests will increase,” said Spyros Papaspyros, the head of ADEDY. “Opting for the easy path of cutting wages and pensions can’t be accepted.” In essence, the Greek people would rather see their country bankrupt, the EMU destroyed and their nation locked out of the funding market for the next decade than have to retired at age 63. But at least they gave us democracy.... The same democracy that will see the Supreme Court soon side with the Federal Reserve over 300+ million US citizens.