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Daily US Opening News And Market Re-Cap: September 23

Tyler Durden's picture




 

From RanSquawk:

  • Finance ministers and central bank governors of the G20 countries pledged for a strong and coordinated international response to boost global economic recovery
  • ECB’s Coene said that the central bank may take action as soon as next month if the economic data continues to disappoint. However, he also said that giving EFSF bank license would not be a good idea. Meanwhile, ECB’s Knot said that a Greek default cannot be excluded
  • Kathimerini wrote that several Greek MP’s are resisting a new round of austerity
  • The Head of Finnish Parliament said that the use of new EFSF powers should always require parliament approval
  • Handelsblatt quoted a German economic professor saying that Germany has EUR 5trl of hidden debt, while Deutsche Bank said co.’s write downs on Greek bonds could be higher than the 21% level foreseen in a July agreement

Market Re-Cap

Risk-aversion gathered pace, as the European session progressed, with market participants focusing on the ongoing Greek debt concerns. ECB's Knot said that a Greek default cannot be excluded, whereas ECB's Coene said that giving EFSF bank license would not be a good idea. Kathimerini wrote that several Greek MP's are resisting a new round of austerity, whereas the Head of Finnish Parliament said that the use of new EFSF powers should always require parliament approval. Meanwhile, Handelsblatt quoted a German economic professor saying that Germany has EUR 5trl of hidden debt, while Deutsche Bank said co.'s write downs on Greek bonds could be higher than the 21% level foreseen in a July agreement. In forex news, EUR/USD, GBP/USD and commodity-linked currencies came off their best levels as the European session progressed and the USD-Index gained strength.

Moving into the North American open, the economic calendar remains thin, however markets will keep a close eye on developments relevant to the Eurozone debt crisis. In fixed income, another Fed's Outright Treasury Coupon Purchase operation in the maturity range of Nov'21-Aug'41, with a purchase target of USD 0.5-1.25bln is also scheduled.

Asian Headlines:

Japanese market holiday.

US Headlines:

Republicans in the US House of Representatives regrouped on Friday to approve a must-pass spending bill, but the prospect of a government shutdown loomed as Democrats said it would go nowhere in the Senate. (RTRS)

In other news, Fed’s balance sheet was USD 2.841trl on September 21st, compared with USD 2.847trl on September 14th. Also, foreign central banks’ overall holdings of US marketable securities at the Fed fell USD 6.882bln in the week ended September 21st to stand at USD 3.456trl. (RTRS)

EU and UK Headlines:

European officials look set to speed up plans to recapitalise the 16 banks that came close to failing last summer’s pan-EU stress tests as part of a co-ordinated effort to reassure the markets about the strength of the 27-nation bloc’s banking sector. A senior French official said the 16 banks regarded to be close to the threshold would now have to seek new funds immediately. Although there has been widespread speculation that French banks are seeking more capital, none is on the list. Other European officials said discussions were still under way. Separately, ECB’s Noyer said that French banks are able to handle a default by Greece on its sovereign debt. (FT - More/Sources)

EQUITIES

European equities came under pressure, as the European session progressed, as market participants focused on the ongoing Greek debt concerns, which weighed on financials. Strength in the USD-Index exerted downward pressure on commodities, which in turn resulted in declines in the basic materials and oil & gas sectors. In other news, Handelsblatt quoted a German economic professor saying that Germany has EUR 5trl of hidden debt, while Deutsche Bank said co.'s write downs on Greek bonds could be higher than the 21% level foreseen in a July agreement. Moving into the North American open, equities continue to trade lower with basic materials and industrials as the worst performing sectors.

FX

EUR/USD, GBP/USD and commodity-linked currencies came off their best levels as the European session progressed and the USD-Index gained strength.

In other news, the RBA said the domestic banks are well capitalised and funded, however they need to be prudent given slower credit growth. Meanwhile, S&P affirmed Australia’s AAA sovereign rating, with a stable outlook. (RTRS)

COMMODITIES

Moving into the NYMEX pit open WTI and Brent crude futures traded lower as the USD-index strengthened and Eurozone debt concerns continued.

Oil & Gas News:

•    A substation fire knocked out power to Texas refineries according to local media.
•    Syria is missing crude oil deliveries this month because of EU sanctions, according to two people with direct knowledge of the matter.
•    Indian refiners processed about 3.32 MBPD crude in August, up 3.9% Y/Y, and Natural gas output down 5.3% Y/Y at 4.1bln cubic meters.
•    Libya’s Sirte oil has resumed gas production from Hateiba and Assoumoud gas fields according to the chairman. In other news Libyan oil workers and officials said damage to ports and oil terminals is so severe and security so poor that the large-scale resumption of exports to Western markets could be delayed longer than some officials had predicted.

Geopolitical News:

•    Yemeni president Ali Abdullah Saleh returned to Yemen his morning after spending three months in Saudi Arabia recovering from an assassination attempt in June.

 

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Fri, 09/23/2011 - 08:24 | 1700485 CapitalistRock
CapitalistRock's picture

Ben is gonna pull a Switzerland if this keeps up.

Fri, 09/23/2011 - 08:29 | 1700503 oobrien
oobrien's picture

Run to the hills, bitches!

The deflationary depression is upon us.

Gold is dead.

Don't stone me.  I'm just telling you the truth.

http://geraldcelente.proboards.com

Fri, 09/23/2011 - 08:38 | 1700524 janus
janus's picture

http://www.youtube.com/watch?v=PVcra0yj43w&feature=fvst

 

there ya go!

 

half a mile from the county fair/

and the rain came pourin down/

me and bully standin there/

with a silver half a pound/

we just stood there gettin wet/

with our backs against the fence/

...and the rain let up and the sun came out/

and we were gettin dry,

janus

Fri, 09/23/2011 - 08:38 | 1700529 trav7777
trav7777's picture

dead?  Not yet.  In any event, the world's largest debtors are the sovereigns.

We've hit the point where they can't kick that can to a bigger debtor.  We made the banks here whole in 2008 and it still has made no difference.

There IS NO credit creation to sustain the exponential growth animal that is debtmoney.  Without continuous printing, the system will collapse.  In such an event, precedent suggests FRNs won't retain value.

Fri, 09/23/2011 - 09:04 | 1700632 Smiddywesson
Smiddywesson's picture
  • Handelsblatt quoted a German economic professor saying that Germany has EUR 5trl of hidden debt, while Deutsche Bank said co.’s write downs on Greek bonds could be higher than the 21% level foreseen in a July agreement
  • OOBrien,

    Yes, the price of paper gold is dropping too.  Read the excerpt quoted above.  If Germany is also screwed, what does that say about the lifespan of this economic system?  Yes, you can make more money trading in and out of stocks and currencies than sitting in gold, but if your timing is off when you run for the lifeboats, you go down with the ship.

    Your argument assumes they won't destroy the currency, and that the global economic system can be saved, so we don't have to take precautions today that compromise immediate return. 

    I gave you a green, because you are half right.  You will remain correct, until you aren't. 

    Fri, 09/23/2011 - 13:08 | 1701997 covert
    covert's picture

    too bad the attempt failed.

    http://covert3.wordpress.com

     

    Fri, 09/23/2011 - 09:02 | 1700634 Zedge Hero
    Zedge Hero's picture

    The biggest under reported headline of the week is the protest on Wall Street.  Sometimes things this subtle can grow in to some major demonstrations- ask Egypt, Greece, Spain or even Israel right now.

    Video on this weeks New York protest- Occupy Wall Street

    http://www.youtube.com/user/zedgehero?feature=mhee

     

    Fri, 09/23/2011 - 08:24 | 1700491 GeneMarchbanks
    GeneMarchbanks's picture

    'Asian Headlines:

    Japanese market holiday.'

     

    The Japanese are always on holiday. Lame.

    Fri, 09/23/2011 - 08:27 | 1700496 1835jackson
    1835jackson's picture

    News just in....were fucked. Baby boomers want to kick off their shoes not deal with this shit they will sell

    Fri, 09/23/2011 - 09:05 | 1700649 Smiddywesson
    Smiddywesson's picture

    Have to green that comment.  Baby boomers are not sitting on a pile of cash.  They will have to liquidate their stock anyway.  It's going to happen.

    Fri, 09/23/2011 - 08:28 | 1700502 PaperWillBurn
    PaperWillBurn's picture

    It's a Dow 10,000 kind of day

    Fri, 09/23/2011 - 08:32 | 1700511 Sledge
    Sledge's picture

    Look for a classic Barton Biggs interview late in the trading day.  :-)

    Fri, 09/23/2011 - 08:32 | 1700512 HelluvaEngineer
    HelluvaEngineer's picture

    8:25 EST - OK, so what rumor just got leaked?

    Fri, 09/23/2011 - 08:33 | 1700519 sudzee
    sudzee's picture

    Will the corner store let me buy a loaf of bread with my million dollar treasury note. All this talk of "being in cash" don't mean shit when there is only 300billion in physical notes to cover quadrillions in obligations. The rarest thing on earth right now is physical US dollars.

    Fri, 09/23/2011 - 08:40 | 1700532 trav7777
    trav7777's picture

    nah...they have a pallets of those at the ready and can print them day and night.

    Nevermind that the entire debit/credit card processing system stands ready to move eDollars around ad infinitum.

    Fri, 09/23/2011 - 08:34 | 1700520 LongSoupLine
    LongSoupLine's picture

    FU Blythe you f'ing whore!

    Fri, 09/23/2011 - 08:40 | 1700535 trav7777
    trav7777's picture

    another guy who got suckered by silverbug pumper bullshit and is losing his ass?

    Fri, 09/23/2011 - 08:49 | 1700583 reload
    reload's picture

    to boost global economic recovery

    They should be honest and say "to try and slow down the economic train wreck, and save our own hides"

    What recovery is it they keep talking about? where exactly is it being experienced?

     


    Fri, 09/23/2011 - 09:18 | 1700707 Comay Mierda
    Comay Mierda's picture

    on a comical side note - fox news debate poll that showed Ron Paul winning just disappeared down the memory hole

    before:
    http://www.prisonplanet.com/fox-news-poll-ron-paul-wins-orlando-debate.html

    after:
    http://www.foxnews.com/opinion/2011/09/22/who-won-debate/

    fucking MSM presstitute sons of cocksucking crack cocain whore bitches

    Fri, 09/23/2011 - 09:26 | 1700742 Georgesblog
    Georgesblog's picture

    I'm just grateful that I have coffee, this morning. I have a chance to make an intelligent comment, sometime today. You can't tell me that the cure for poisoning is more poison. Debt is a most insidious poison. It is an extreme stimulant. It overdrives the senses and compromises sound judgment. I'd like to find a solution. The obvious answer is to retrace our historical steps and send this centralized corporate structure into the Pit. I say that in a commercial contract context. We get what we agree with. The hard way is the good way. We must cease from these contractual agreements that enslave us. There, I feel better, now. Thank you for enduring my rant. 

    http://georgesblogforum.wordpress.com/2011/09/22/war-of-the-money-worlds-update-09222011/

     

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