Markets Are Rising In The Calm Before The Storm
Tomorrow is the big day, when we might get clues about whether the Fed will begin to pull back a bit on monetary easing.
Today is the calm before the storm, and it’s pretty quiet.
Futures are up in the US and markets are higher in Europe.
Japan ended down merely 0.2%, which is super-quiet.
China gained 0.4%.
Today we get CPI and housing starts.
Both should be [...]
OPERATION – RESULTS
Outright Coupon Purchase
Maturity/Call Date Range:
02/28/2018 – 02/15/2019
Total Par Amt Accepted (mlns) :
Total Par Amt Submitted (mlns) :
BRUSSELS - Moody’s ratings agency on Monday (22 October) downgraded five of Spain’s biggest regions to “junk” status.
“Very limited cash reserves” as of September and “significant reliance on short-term credit lines” are Moody’s main arguments for slashing Catalonia, Andalucia, Castilla-La Mancha, Extremadura and Murcia to below investment grade, where punters take high default risks when buying bonds.
Catalonia – representing a fifth of Spain’s economy – saw its rating cut further into [...]
Just because one foreign – note: not local because US bankers know very well where the bodies are buried - bank (whose CEO forgot to bribe American congressmen as efficiently as some other bank CEOs), namely HSBC, was not enough to convince Americans just how active America’s corrupt political muppets are when it comes to eradicating the evil banking scourge, here comes redirection target #2:
STANDARD CHARTERED MAY FACE SUSPENSION OVER IRAN TRANSACTIONS
BANK HAD $250 [...]
NEW YORK (MarketWatch) — Nexen Inc., NXY -1.27% CA:NXY -0.86% the Calgary energy producer, definitively agreed to be acquired by Cnooc Ltd. CEO -1.82% for US$27.50 a share, or about US$15.1 billion. Cnooc is the Chinese oil producer. Nexen shares closed Friday at $17.06, so the deal premium is 61%. In a Monday statement, the companies said that both boards approved the terms. The [...]
Moscow made a secret deal with Tehran that it now publicly refuses to abide by. Iran filed a lawsuit to an international court in Geneva demanding $4 billion.
Iran Demands $4 Bln From Russia Over Canceled Missile Deal
“The case was started on April 13, 2011. The subject of the case is “Possible damages of $3,985,159,773.32 to fulfil obligations for delivery of special property,” the report says in reference to ongoing legal [...]
GERMANY WON’T ACCEPT NEW ANTI-CRISIS INSTRUMENTS – GERMAN SOURCE *DJ
Maybe the Italian football team should have bent over just a little.
* * *
Today’s edition of the Eurosummit is over. There was some news, however, as always happens, there is a twist:
EU LEADERS HAVE AGREED A GROWTH PACKAGE OF 120 BLN EUROS BUT ITALY AND SPAIN NOT PREPARED TO SIGN OFF ON IT – EU OFFICIALS – *DJ
ITALY WON’T [...]
Two months ago, Carmel Asset Management came out with what we dubbed “Spain: The Ultimate Doomsday Presentation.” Since that day Spanish yields have exploded, the domestic (and global) stock market has collapsed, and as of hours ago, Spain for the first time requested an official bail out from its European partners. But Spain was easy – only Nobel prize winning economists and TV anchors could not foresee the final outcome [...]
Bundesbank data, largest switch in deposits is from Luxemburg and Netherlands. The largest increase in EUR deposits by non-residents is by U.K. residents from €232 bln at end december 2011 to €395 bln at end of april 2012.
By Sara Sjolin
NEW YORK (MarketWatch) — The board of troubled Spanish lender Bankia SA [es: bkia] announced Friday that it will seek 19 billion euros ($23.8 billion) from the government in a recapitalization plan, making it the largest bailout in the nation’s history. The figure already has been agreed with the government, a source familiar with the matter said, according to The Wall Street Journal. Shares of Bankia were [...]
Well under 24 hours ago we wrote, “As Bankia Bailout Costs Grow Exponentially, Is A Stealth Bank Run Taking Place” in which among other things, we listed the chronology of the Bankia bailout. To wit: “Note the following sequence of events, bolded numbers, and dates:
Bank Of Spain Formally Nationalizes Bankia, Says Insolvent Bank Is “Solvent”, Adds There Is No Cause For Concern, Zero Hedge, May 9
Spain is taking over [...]
It was only a matter of time before the next bank bailout began despite all those promises to the contrary. Sure enough, as math always wins over rhetoric and policy, earlier this morning the shot across the Spanish bow was fired after PM Rajoy did a 180 on “no bank bailout” promises as recent as last week. From Dow Jones: “Spain may pump public funds into its banking system to [...]
–Spain, Italy banks buy EUR44 bln in bonds, but lending falls
–Private-sector lending also fell in Ireland, Greece, Portugal
–Healthy increases in credit in France, Germany, Netherlands
LONDON — Fresh signs of a credit crunch in the euro zone periphery emerged Monday, as new data showed banks continuing to hoard government bonds rather than sustain credit supply in their national economies.
New figures from the European Central Bank showed Spanish and Italian banks were once again heavy [...]
By Chris Oliver
HONG KONG (MarketWatch) — China’s sovereign-wealth fund, China Investment Corp. (CIC), has received an additional $50 billion in funding from the central government, according to a report Tuesday in the Financial Times. The increase was disclosed in Beijing by CIC officials attending a forum, according to the report. The funding is a portion of the $100 billion-$200 billion sought by the CIC and likely represents an effort [...]
Prime Minister Mariano Rajoy said Spain’s situation is one of “extreme difficulty” and signaled that his budget cuts are less painful than a bailout would be, as demand for the nation’s debt slumped at an auction.
“Spain is facing an economic situation of extreme difficulty, I repeat, of extreme difficulty, and anyone who doesn’t understand that is fooling themselves,” Rajoy told a meeting of his People’s Party today in the southern coastal city of Malaga.
SCHAEUBLE SAYS EUROGROUP TO DECIDE ON MAIN GREEK AID NEXT WEEKEND
A number of headlines from Bloomberg, via Die Welt, that the ECB will undergo a bond swap with the NCBs on their greek government bonds and the ‘profit’ will flow to governments.
*ECB SWAPPING GREEK BONDS FOR NEW GREEK BONDS, WELT SAYS
*ECB BOND SWAP TO BE COMPLETE BY MONDAY, WELT SAYS
*ECB TO PROFIT FROM BOND SWAP, WELT SAYS - Explain please!
*WELT: ECB SWAPPING EST. EU50 BLN GREEK BONDS AT NOMINAL VALUE
Uploaded by RTAmerica on Feb 14, 2012
President Obama has revealed the military defense budget and in it $3 billion are set aside for post-war Iraq. The initiative which is being called operation “Post-New Dawn,” is unclear as to where the money will go – and some believe it will almost certainly go into the pockets of war contractors. This will add to the $800 billion the US has spent in the last [...]
MF GLOBAL DIDN’T ALWAYS RECORD CASH MOVEMENTS, TRUSTEE SAYS
TRUSTEE SAYS MF HAD SHORTFALL IN COMMODITIES FUNDS START OCT 26
MF BROKERAGE TRUSTEE TRACED $105 BLN IN CASH MOVEMENT
MF COMPUTERS COULDN’T TRACK VOLUME IN FINAL DAYS, TRUSTEE SAYS
Of course, we know that MF Global is the only company to not follow Fiduciary Principles 101 (client cash commingling) but also Accounting 101 (T square, debits, credits, and all that boring and apparently irrelevant in a [...]
First we learn the LTRO may be €1 trillion, then €10 trillion, now the IMF tells us it has misplaced $1 trillion. The world may be going totally broke but at least it does in style – in perfectly round 12 digit numbers.
IMF SAID TO SEE POTENTIAL 2-YEAR FINANCING GAP AT $1 TRILLION
IMF SAID TO SEEK RAISING LENDING RESOURCES BY $500 BLN
In other words, even after it “miraculously” procures this [...]
You didn’t think US consumer confidence could be bought for free now did you?
U.S. TREASURY SAYS DEBT LIMIT TO BE RAISED BY $1.2 TRILLION
U.S. DEBT TO BE $100 BLN WITHIN LIMIT ON DEC. 30, TREASURY SAYS
STEPS FOR INCREASING DEBT LIMIT UNDER 2011 BUDGET CONTROL ACT
And the piece de resistance that 100% debt to GDP brings:
OBAMA ON DEC. 30 LIKELY TO ASK CONGRESS TO RAISE DEBT LIMIT
Just as we thought the [...]
“As Bloomberg noted, the German government sold €3.6bn ($4.9bn) in new 2 per cent 10-year bonds at an average yield of 1.98 per cent on Wednesday.
The total auction was meant to be for €6bn. As such, this can be described as technically uncovered.
Or as Marc Ostwald, of Monument Securities puts it:
“I cannot recall a worse auction, only EUR 3.889 Bln of bids in total for a EUR 6.0 Bln auction, and [...]
Fed Seen Laying Ground for More Large-Scale Asset Purchases
Japan Faces $510 Billion Losses From Yen Sales, JPMorgan Says
Portugal’s Borrowing Costs Rise at Auction of Three-Month Bills
Two-Thirds of Colorado Voters Reject Tax Increase for Schools
NY Gov: state’s deficit next year could top $2 bln
Birmingham wants JEFFCO to pull the trigger on bankruptcy
Medicare to slash doctors’ pay unless Congress acts
Greek Yields Rise Over 90 Percent on Default Concern; French Bonds Decline
U.S. plans to borrow $305 bln Oct. through Dec.
“The U.S. Treasury expects to borrow $305 billion this quarter and $541 billion in the next three-month period as the government struggles to bring down future budget deficits despite a weak economy.
Treasury on Monday said its new estimate on debt issuance for October through December is higher than an earlier estimate of $285 billion. The increase in borrowing was related to [...]
Bloomberg has just disclosed a statement from the German Budgetary Committee which is critical to the future shape of the EFSF:
GERMAN CDU/CSU PARLIAMENTARY SPOKESMAN SCHARLACK SPEAKS ON EFSF
GERMAN BUDGET COMMITTEE SETS CONDITIONS FOR EFSF LEVERAGING
GERMAN BUDGET COMMITTE GUIDELINES VOTE EXCLUDES LEVERAGING
BUDGET COMMITTEE SAYS EFSF REPOS MUSTN’T RAISE GUARANTEES
GERMAN BUDGET COMMITTEE SAYS EFSF LEVERAGING MUST EXCLUDE ECB
GERMAN BUDGET COMMITTEE BACKS EFSF DRAFT GUIDELINES
So far so good… But this…
BUDGET COMMITTEE SAYS [...]
JPMorgan\’s Quarterly Income Falls 4%, to $4.26 Billion
J.P. Morgan private equity unit $542 mln loss
J.P. Morgan Q3 revenue $24.4 billion
J.P. Morgan Chase Q3 net $1.02
J.P. Morgan takes $1 bln litigation cost
JPM: “Consumer & Business Banking results will reflect the full negative revenue impact from the Durbin Amendment of $300mm+/- in 4Q”
1) Italy Sells $10.77 Billion in Bonds as Borrowing Costs Rise
“Italy sold 7.9 billion euros ($10.77 billion) in bonds, less than the maximum target, as borrowing costs rose amid contagion from Europe’s debt crisis.
The Rome-based Treasury sold 3.14 billion euros of bonds due in 2014 to yield 4.68 percent, compared with a yield of 3.87 percent at the last auction on Aug. 30. Demand was 1.36 [...]
Chinese state-owned energy giant China Power Investment Corporation plans to invest six billion dollars to develop bauxite production in Guinea, a senior executive said here Saturday.
A child watches a train pull some 100 bauxite ladened carriages in Kamsar 2008. Chinese
state-owned energy giant China Power Investment Corporation plans to invest six billion dollars
to develop bauxite production in Guinea, a senior executive said here Saturday
China Power Investment “intends to invest [...]
Gold Gains as European Measures to Contain Debt Crisis May Be Too Little
Fitch: Greek Deal a Restrictive Default
In China, Mortgage Slaves Curse U.S. Debt: World View
Fed should do more if US economy doesn’t improve-Evans
European Banks Could Face $23 Bln Writedown on Greece, FT Says
China business lobby warns of bankruptcy wave
Jefferson County Gets Closer to Bankruptcy
Don’t expect economy to brighten this summer, reports say
Ireland’s bailout interest rate reduced [...]