As everybody reading and/or listening to financial news all week knows, tomorrow at 7:30 a.m. CST the Bureau of Labor Statistics will release the unemployment report, which has been deemed as the most important data since …….????? The consensus is now for a nonfarm payroll increase of 170,000, the RATE TO STAY AT 8.2% and average hourly earnings to increase 0.2%. After Wednesday’s ADP data, the market has lowered its NFP expectations and thus, a consensus number of 170,000 will be a positive for the EQUITY markets, positive for the DOLLAR and meaningless for the BONDS.
Posts Tagged ‘Bini-Smaghi’
Notes From Underground: Bini Smaghi Resigns From ECB Executive Board … What’s It All About?
November 10, 2011The global markets were on the verge of a failed rally when a news story broke about the resignation of Bini Smaghi. In my mind this is a very significant event as it portends the beginning of a major deal on EFSF funding in the works. WHY? Two weeks ago it appeared that Mr. Berlusconi had castrated President Sarkozy by reneging on an agreement for Mr. Bini Smaghi to resign his ECB position once Mario Draghi assumed the Presidency of the ECB. If SMAGHI retained his seat it meant Italy would occupy two key positions in the ECB and France would have none. Sarkozy supported Draghi only on that basis that the Bini Smaghi seat would go to a Frenchman.
Notes From Underground: Charles Evans Stars In LONESOME DOVE
November 3, 2011The markets initial reaction to the FOMC statement was perplexing as the financial media reported the FED to be hawkish for there was nothing explicit about a potential QE3 program. Readers of this BLOG were well aware that the consensus was for no change from the FED as it would have been difficult to announce any new program with the G-20 meeting this weekend in Cannes. The BRICs have already accused the U.S. of causing havoc in world currency markets by utilizing its monetary policy as a “stealth devaluation” of the U.S. DOLLAR. It seemed though that the FOMC statement was DOVISH because the previous three dissenters all voted with the majority–there was a lone no vote and that came from Chicago FED President Charles Evans.