This page has been archived and commenting is disabled.

Daily US Opening News And Market Re-Cap: July 27

Tyler Durden's picture




 

From Ran Squawk:

  • German finance minister expressed his reluctance in the use of EFSF/ESM to purchase government bonds in the secondary market, and said it would be wrong to think that Eurozone crisis could be permanently solved by a one-off summit
  • ECB's Provopolous said ECB’s rates are appropriate, however the ECB will act if there is a need to contain inflation
  • The impasse over the issue of raising US's debt ceiling prevailed ahead of an August 2nd deadline

Market Re-Cap
 
Markets remained apprehensive as the impasse over the issue of raising US's debt ceiling prevailed, and further risk-aversion materialised after German finance minister expressed his reluctance in the use of EFSF/ESM to purchase government bonds in the secondary market. This resulted in weakness in European equities, led by financials, which provided support to Bunds, and also weighed upon the EUR across the board. In other news, AUD received strength following higher than expected inflation data from Australia overnight, whereas a downtick was observed in GBP/USD after a sharp decline in CBI trends total orders figures from the UK.
 
Moving into the North American open, markets look ahead to key economic data from the US in the form of durable goods report, DOE inventories figures, as well as the release of Fed's Beige Book. In terms of fixed income, USD 35bln 5-year Note auction is scheduled for later in the session. Markets will also watch keenly US corporate earnings from the likes of Boeing, ConocoPhillips, and Visa.
 
Asia Headlines:
 
BoJ’s board member, Kamezaki, said Japan’s economy will resume moderate recovery in October-March second half of fiscal 2011/12, adding that the BoJ needs to be proactive in taking necessary steps for growth and price stability. He added that the BoJ needs to be mindful of downside risks to Japanese economic outlook in long term, adding that large downside risks exist for BoJ’s long-term growth forecasts. (RTRS)
 
In other news, according to an adviser to the PBOC, Xia Bin, China should gradually make real benchmark bank deposit rate positive and continue to use open market operations and bank reserve requirements to slow money supply. He also said that flexible CNY will help to curb imported inflation, adding that monetary policy should stay relatively tight. (People’s Daily)
 
US Headlines
 
The US House of Representatives postponed an expected Wednesday vote on a Republican plan to raise the debt ceiling after budget experts said it would not deliver the spending cuts it claimed. The House will delay action until Thursday, while the US House speaker Boehner is reworking his debt plan to ensure spending cuts are larger than debt ceiling increase. Meanwhile, Treasury Secretary Geithner said it is essential Congress lifts the US’s USD 14.3trl debt ceiling to ward off a historic default and preserve financial stability. (RTRS)
 
In related news, US money market funds are stockpiling cash in case Congress fails to raise the debt ceiling, distorting the short-term market for US government debt and raising borrowing costs for banks and other financial institutions. (FT-More)
 
Also, S&P’s global head of sovereign ratings, David Beers, said prioritising US debt payments to avoid a default would be deeply disruptive to the economy, adding that a small increase in the US debt ceiling would be negative to US ratings. S&P also said that it is looking for some programme to make a difference in medium term in slowing rising government debt to avoid a downgrade, and will look at potential deal to determine if it is actionable and credible. S&P said it would be concerned if debt ceiling debate comes back soon, adding that partial payment would not be a default but not tenable for long. S&P further said it is not going to say a downgrade is imminent and will judge plan when it comes, adding that decreasing rating would mean higher interest rates. (RTRS/CNBC)
 
BarCap month-end extensions: US Treasury +0.07years
 
EU and UK Headlines:
 
S&P’s global head of sovereign ratings, David Beers, said a new and bigger restructuring of Greek debt is likely within the next two years, and a further downgrade of Greece’s sovereign debt rating was “pretty certain”. (RTRS)
 
•    German CPI - Baden Wuerttemberg (Jul) Y/Y 2.7% vs. Prev. 2.3%
•    German CPI - Bavaria (Jul) Y/Y 2.3% vs. Prev. 2.1%
•    German CPI - North Rhine West (Jul) Y/Y 2.7% vs. Prev. 2.5%
•    German CPI - Brandenburg (Jul) Y/Y 2.2% vs. Prev. 1.9%
•    German CPI - Hesse (Jul) Y/Y 2.2% vs. Prev. 2.1%
•    German CPI - Saxony (Jul) Y/Y 2.5% vs. Prev. 2.3%
•    UK CBI Trends Total Orders (Jul) M/M -10 vs. Exp. -3 (Prev. 1) (RTRS)
 
BarCap month-end extensions: Euro +0.14years
BarCap month-end extensions: Sterling +0.02years
 
EQUITIES
 
Markets remained apprehensive as the impasse over the issue of raising US's debt ceiling prevailed, and further risk-aversion materialised after German finance minister expressed his reluctance in the use of EFSF/ESM to purchase government bonds in the secondary market, which resulted in weakness in European equities, led by financials. European peripheral indices, including the Italian FTSE MIB and Spanish IBEX 35, underperformed its European peers in particular. However, basic materials remained one of the better performing sectors partly on the back of strong corporate earnings from ArcelorMittal. Moving into the North American open, equities continue to trade lower, with financials and utilities being the worst performing sectors.

FX
 
Weakness was observed in EUR across the board after German finance minister expressed his reluctance in the use of EFSF/ESM to purchase government bonds in the secondary market, and came under further pressure following comments from ECB’s Provopolous that ECB’s rates are appropriate. In other news, AUD received strength following higher than expected inflation data from Australia overnight, whereas a downtick was observed in GBP/USD after a sharp decline in CBI trends total orders figures from the UK.
 
•    Australian Consumer Prices (Q2) Q/Q 0.9% vs. Exp. 0.7% (Prev. 1.6%)
•    Australian Consumer Prices (Q2) Q Y/Y 3.6% vs. Exp. 3.4% (Prev. 3.3%) (RTRS)
 
Elsewhere, Japanese finance minister Noda said that he would continue to watch foreign exchange rates closely. Meanwhile, BoJ’s board member, Kamezaki, said JPY’s gains could hurt exports and corporate profits, adding that the US debt ceiling issue is affecting currencies. He also said that currency intervention could have effect when done at a time of rapid movement. (RTRS/Sources)

COMMODITIES
 
WTI and Brent crude futures traded under pressure during the European session, weighed upon by strength in the USD-Index, an impasse over the issue of raising US’s debt ceiling, and the ongoing Eurozone debt concerns.
 
Oil & Gas News:
•    Iranian president proposed to parliament a Revolutionary Guards commander, Rostam Qasemi, as his choice for oil minister. Parliament will debate a vote of confidence for Qasemi on August 3rd.
•    Iran has temporarily cut oil exports to India by 90,000 BPD due to technical problems, according to Mehr News Agency.
•    China’s crude oil output in the first half of 2011 rose 4.6% on year to 103mln tonnes, according to the China Petroleum and Chemical Industry Federation.
 
Geopolitical News:
•    Continued bombing of Libya by NATO forces will see Venezuela refuse to support any increase in oil production quotas from OPEC, according to AFP, citing Venezuelan oil minister.
•    UK's foreign secretary, Hague, said Britain will recognise the Libyan Opposition Council as the sole legitimate governing authority.

Daily Us Opening News

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 07/27/2011 - 08:33 | 1497211 No Bid
No Bid's picture

WIth that DG number maybe we can finally get some volume going?  

Wed, 07/27/2011 - 10:24 | 1497224 slewie the pi-rat
slewie the pi-rat's picture

in unrelated news:

NAT0 declares victory; offers the moQ a penthouse & a pension

Summary of the American and International Press on the Libyan Revolution - Morgan Strong
27/07/2011 09:21:00 NATO seeks urgent exit strategy in Libya

(UPI) - NATO is seeking an urgent exit strategy from Libya that will end the fighting and decide the future of embattled leader Muammar Al Qathafi, even if that means letting him stay in the country though out of power, it emerged Tuesday after British and French foreign ministers met in London.

British Foreign Secretary William Hague and French Foreign Minister Alain Juppé said NATO and even members of the opposition Transitional National Council wouldn't oppose Al Qathafi staying in Libya as long as he gave up power.

this is my favorite part, tho: 

Hague and Juppé received support for the proposal from former British Foreign Secretary Malcolm Rifkind, who said it would be important to avoid a "blood bath in Tripoli" - seen as a likely outcome if a final military push to the Libyan capital triggered close combat.

Hague said: "What happens to Al Qathafi is ultimately a question for the Libyans ... What is absolutely clear, as Alain (Juppé) has said, is that whatever happens, Al Qathafi must leave power. He must never again be able to threaten the lives of Libyan civilians nor to destabilize Libya once he has left power."  (emphases mine) 

of course, the NATO "alliance" and the muslim bros could win.  all they hafta do is finish surrounding tripoli, lat seige, and then go in and fight for it.  apparently, NATO & the m.b. have not convinced the good people of tripoli to turn against mo in quite the required numbers.  he's been there for 41 years.  and "the colonel" has defended the city pretty well, considering something of the order of 5,000 airstrikes within the city.  against military targets.  some collateral dead guys, but hey, whatchagonnadoo?  can ya make an omelette w/out breaking a few eggs?  huh?  can ya? 

but, it's ramadan aug 1-30, and this is it!  so that's it for moQ.  he either accepts this, or else.  or else what?  or else NAT0 + m.b. are gonna fukin cry so there!

but wait! 
"Obviously him leaving Libya itself would be the best way of showing the Libyan people that they no longer have to live in fear of Al Qathafi," Hague said.

"But as I have said all along, this is ultimately a question for Libyans to determine."

Juppé said the allies were in "perfect cooperation" in Libya and "must continue to exert strong pressure on the Libyan regime with the same methods."
"If we did not intervene four months ago it would have been a massacre in Benghazi and I think we may be proud to have taken this courageous decision," Juppé said.
Diplomacy is being driven by lack of results from the military campaign as it drains NATO resources amid constant Libyan opposition pleas for more military aid, food and medical supplies.
NATO decision-makers are treading cautiously to forestall an escalation that could pit them against a moral dilemma or - worse - require large-scale military commitments on ground.
(end paste)

NAT0 = courageous = 0 casualties.  lord know we've tried to kill the s.o.b.  we give up!
m.b. = constant whining, not enuf killing/dying/victory for NAT0, so, NAT0 will just let you folks settle it from here, like we always said, ok? 

but wait!
ICC: Al Qathafi staying in Libya means arrest

(UPI) - The International Criminal Court threw water on British and French diplomats' hints that Libyan leader Muammar Al Qathafi could cede power and remain in Libya.

same shit, diff day.  here, there, everywhere.  try to end a war and the ICC tosses a water balloon!  can you imagine how totally totalled libya must be?  5 months of help from uncle sugar & friends complements of NAT0 & the UN. 
i'd like to say :  what a country!  but that wouldn't be appropriate, at this point. 
and people want to try to figure out & straighten out the finances and where the money goes? 
because all we have left, apparently, is a huge short position in IOU'z, and a ton of freaking invoices!
way to go, team!  Yay!

but wait!
here's what we got for out money, here:  (Washington Post) - The part of Libya under Muammar Al Qathafi’s control is wracked by shortages in fuel, food and cash despite a veneer of normalcy, according to a U.N. fact-finding mission.

In a statement issued late Monday, the United Nations said its weeklong mission to the country had identified lack of fuel, rising food prices, a strained medical system, and a cash crunch as some of the problems besetting Al Qathafi’s government.

no shit.  sounds like home!  let's see that again:  lack of fuel, rising food prices, a strained medical system, and a cash crunch as some of the problems
this is the NWO + Nanny.  with awesome fuking fire-power.  and printing presses.
coming soon to to a theatre near everybody!

[and thanks 2 morgan strong for making this so eZ for me!]

Wed, 07/27/2011 - 09:25 | 1497376 disabledvet
disabledvet's picture

should we be surprised if oil soars come Monday? Clearly the muni's in 'bama are being more than just "stressed." How does lowering Federal spending without the due diligence of a revenue plan prevent that? Of course we must have growth in our economy. But don't we also have to pay our debts as well? How can we have one without the other? And of course we just had a tax cut this past December of which i was not a supporter but i took note no one else anywhere seemed opposed. In short "the debt bomb" to reign in Federal "largesse" strikes as a very dangerous weapon to employ indeed.

Tue, 08/23/2011 - 22:38 | 1593254 karmete
karmete's picture

Well done! Thank you very much for professional templates and community edition sesli siteler sesli sohbet

Wed, 09/14/2011 - 03:48 | 1667107 chinawholesaler
chinawholesaler's picture

Digital Photo Frame
Tangle Puzzle

Beauty Equipment
Wholesale Speakers
Wholesale Bag

Wholesale Frisbee
China Wholesale
China Wholesale

Pen Holder
Wholesale Ashtray
Muslim Products

Silicone Products
Automotive Products
China Suppliers

Wholesale Cap
Garden Decorations
Promotional Gifts

Wholesale Scarf
Pen Holder
Wholesale Racks

Wholesale Furniture
Wholesale Banner
Flash Gift

World Cup Products
Wholesale Clothes Rack
Silicone Wallet

Wholesale Bookmark
Wholesale Album
Vocal Concert Products

Wholesale Shoe
Wedding Favors
Wedding Favors

Wholesale Bedding
Digital Photo Frame
Outdoor Leisure Products

Outdoor Leisure Products
Stuffed Animals
Heating Products

Digital Photo Frame
Wholesale Tellurion
Wholesale Socks

Giveaway Material
Wholesale Cup
Electrical Gifts

Wholesale Bracelet

Do NOT follow this link or you will be banned from the site!