Posts Tagged ‘CDU’
May 6, 2012
Before politics, it is important to review the two big stories from Friday:
1. The U.S. unemployment data was certainly on the weak side of expectations as nonfarm payrolls came in at a tepid 115,000, very close to the ADP report. Average hourly earnings were soft, which will challenge the view of consumer demand ramping up any time soon. Yes, the unemployment rate dropped to 8.1%, but with so many people dropping out of the job market this indicator lends itself to so much POLITICAL SPIN THAT ITS USE IS BECOMING NEGLIGIBLE. Economists have twisted its meaning and therefore markets are disregarding its usefulness. The real positive in the data was the continue growth in MANUFACTURING as 16,000 factory jobs were created. Otherwise, the number was weak and will be a reason for the FED TO KEEP THE MUSIC OF OPERATION TWIST IN PLACE.
Tags:10-yr OATs, ADP, bond vigilantes, Bundesbank, CDU, deleveraging, ECB, Fed, Francois Hollande, Greek elections, Merkel, Merkozy, Norwegian Sovereign Wealth Fund, operation twist, SPD, unemployment
Posted in 2012 Election, Debt Market, Europe, France, Germany, Greece | 4 Comments »
November 15, 2011
TO OUR READERS: WE’RE REISSUING LAST NIGHT’S PIECE AS MANY OF YOU DID NOT RECEIVE THE POST BECAUSE OF A WORDPRESS GLITCH. ENJOY!
The DEBT markets in Europe renewed the sombre tone of a collapse of Italy and Spain. In the early part of the European trading day, the Italian BTP was holding on to last week’s gains and outperforming the BUNDS to the upside. As the day wound to a close, the “negative” news out of the Merkel’s CDU conference pressured the DEBT markets as new fears arose that the German Chancellor had her party’s support for the jettisoning of some of the weaker peripherals.
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Tags:10-Year Tresury notes, BTP, Bunds, CDU, Debt, Gilts, JGB, Le Fort Franc, Merkel, risk-on, Trichet, U.S. Dollar, Yen
Posted in Debt Market, Europe, Italy, Spain | 5 Comments »
November 14, 2011
The DEBT markets in Europe renewed the sombre tone of a collapse of Italy and Spain. In the early part of the European trading day, the Italian BTP was holding on to last week’s gains and outperforming the BUNDS to the upside. As the day wound to a close, the “negative” news out of the Merkel’s CDU conference pressured the DEBT markets as new fears arose that the German Chancellor had her party’s support for the jettisoning of some of the weaker peripherals.
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Tags:10-Year Tresury notes, BTP, Bunds, CDU, Debt, Gilts, JGB, Le Fort Franc, Merkel, risk-on, Trichet, U.S. Dollar, Yen
Posted in Debt Market, Europe, Italy, Spain | 1 Comment »
September 18, 2011
Friday and Saturday were the days that U.S. Treasury Secretary Geithner was in Poland sitting in on an ECOFIN meeting to try to persuade the financial policy makers of the EU to come to some type of resolution on a bailout of the PIIGS, an increase in the European Financial Stability Facility, and, hopefully, some program of support for the recapitalization of the European banking sector. Geithner pressed the ECB and European Governments to increase the 440 billion EURO EFSF rescue fund by utilizing leverage in its buying of sovereign debt. The tone of Geithner’s message was that the U.S. has woken up to the huge threat the EU debt crisis poses for the American economy, and, of course, President Obama’s election chances. Mr. Geithner warned that the EU crisis was a “CATASTROPHIC RISK TO FINANCIAL MARKETS.” He advised that the conflict between European governments and its central bank must end.
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Tags:Ackermann, BOE, BOJ, CDU, ECB, Ecofin, EFSF, FDP, Fed, G-20, Geithner, Greens, IIF, IMF, Merkel, money, PIIGS, Pro-Euro labor, QE, SNB, SPD, swap lines, Twist
Posted in ECB, Europe, Federal Reserve, FOMC, Germany | 5 Comments »
September 12, 2011
Well, the media was running wild in the last hour of U.S. equity trading with a rumor of the Chinese offering to purchase Italian bondsx. Every time the Euro debt crisis comes to a full boil, rumors arise about the Chinese riding to the rescue and buying beleaguered sovereign debt. In December 2009, the rumors were that the Chinese Investment Corporation [CIC] was interested in acquiring the 25 billion euros of Greek debt that was being road-showed–that was prior to the Greek Debt Crisis and the expected rate was roughly 6.5%.
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Tags:2-year notes, Bernanke, CDU, Chinese Investment Corporation, equity markets, EU, Euro, Euro debt crisis, Fed, FOMC, Italian bonds, Italian debt, Merkel, Peter Altmaier, PIIGS, QE3, Spanish debt, Twist
Posted in China, Debt Market, Federal Reserve, Germany, Italy | 9 Comments »
March 27, 2011
The weekend news was not economic but political as governments all over the globe suffered major setbacks. The Liberals secured a “NO CONFIDENCE” vote in the Canadian Parliament and bring down the Harper Government. I know that Michael Ignatieff will claim that he is perserving the democratic basis of Canada as the ruling party was brought down on an issue of CONTEMPT. The only thing that appears contemptuous is the ego of Ignatieff. He claims that the TORIES are out of touch and out of control. The election is called for May 2 and then the electors will have the final say on who is out of touch. This will be the fourth general election in seven years and let’s hope the citizens of Canada show their anger and elect an outright majority so Canada can get on governing itself.
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Tags:Angela Merkel, anti-EU, austerity, Australia, Baden-Wurttemberg, Britain, Canadian Dollar, CDU, Enda Kenny, EU Summit, European Debt Crisis, FDP, Finns, Greens, Irish banks, Julia Gillard, Loonie, Michael Ignatieff, New South Wales, riots, Stephen Harper, Tories, Tory/Liberal coalition
Posted in Australia, Canada, Germany, Ireland, UK | Leave a Comment »
March 24, 2011
It seems that overnight many traders were selling the EURO because of news that the Portuguese Government was to fall. As I have written about this before, it is certainly no surprise. The only surprise was its timing as it comes as the “RUBBER STAMP SUMMIT” is taking place today and tomorrow. Also, the credit rating agencies downgraded many Spanish Banks, making the EU SUMMIT that much more volatile. Throw in the French anger toward the Germans regarding its Libyan decision and the mood in Europe continues to darken.
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Tags:2/10 yield curve, Aussie, Baden-Wurttemberg, CDU, Dollar, ECB, EU Summit, Euro, flat, France, Germany, Greens, inflation, no-fly zone, PIIGS, Portugal, Pound, steep
Posted in Currency, Europe, UK | 2 Comments »
March 20, 2011
This weekend brought mixed news about the lessening of RISK in Japan, and possibly Bahrain, while increasing the sense of risk in Libya and other parts of the Middle East. It appears that the threat of nuclear catastrophe has been diminished as some power has been restored to the nuclear plants under stress and the needed cooling is proceeding. The Japanese equity market will be a good source to monitor investor sentiment as weekend news publications were filled with articles about the values abound in the Nikkei and other Japan-based indexes. The YEN will be a much more difficult barometer because of the impact of YEAR END and its ability to cause disruptive volatility in currency markets.
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Tags:Angela Merkel, Bahrain, Brazil, CDU, central banks, Chile, Dilma Rousseff, Dollar, ECB, Euro, Fed, France, G-20, G-7, Greens, Japan, Libya, no-fly zone, nuclear, Petrobras, risk, Sarkozy, Yen
Posted in Brazil, Currency, France, Germany, Japan, Obama | 7 Comments »
March 16, 2011
As we all know, the FED held rates at the FOMC meeting and left the “extended period” phrase in and will maintain QE2 through its duration. Two weeks ago Jon Hilsenrath opined that the FED would likely remove the “extended period” language but that proved another opinion without material support. Many analysts felt that the March 15 FOMC statement was more hawkish than previous statements but I struggle to see how that is in fact the case. Yes, the FED did say the economy is on “firmer footing and overall conditions in the labor market appear to be improving gradually.” There were a few references to inflation but that hardly makes for a hawkish outlook.
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Tags:Angela Merkel, CDU, Christian Noyer, ECB, EU, Fed, Fisher, FOMC, France, Guenther Oettinger, nuclear power, Plosser, QE2
Posted in Federal Reserve, FOMC, France, Germany | 3 Comments »
February 21, 2011
NOTES FROM UNDERGROUND has been banging on the table for Axel Weber to become the president of the ECB but my desires were dashed as Herr Weber resigned his presidency of the BUNDESBANK last week and announced that he wished not to be considered for the ECB job. Axel broke our hearts as he would have been the strong voice for the BAVARIAN BURGHERS. Alas, Axel did not enjoy being thrown under the bus by Chancellor Merkel to placate the French who were opposed to the ECB being run by a “hard money man.”
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Tags:Angela Merkel, Axel Weber, Bundesbank, CDU, ECB, EU, Fed, Gold, Kiwi, New Zealand, oil, PIIGS, SPS
Posted in Commodities, Currency, ECB, Germany, Gold, Middle East, Oil | 1 Comment »
