Bobbys Corner-Open Market-Feb.7.2012

Good Morning:

In an unexpected move, the Reserve Bank of Australia left their benchmark interest rates unchanged at 4.25%.  With signs of growth in North America and Asia-the RBA opted to leave rates steady for the time being.  The RBA will monitor the growth of the global economy, and will set their interest and monetary policy accordingly.

In other news-it seems that Greece is getting closer to an agreement with their creditors.  We have heard this for the past few weeks-so when we get confirmation-I will let you know.  In the meantime-European leaders are running out of patience for Greece to get their monetary policy in place.

Fed Chairman Bernanke will be speaking to Congress today-after last friday’s positive jobs data-will his  tone be different?  No likely.

Equity markets are lower-as are US Futures.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Feb.6.2012

Good Morning:

I have returned after my knee surgery.  The surgery went well-and now my job is to do physical therapy and get back up to speed.

I see that very little changed- Greece is still trying to work out their latest mess.  The discussions between the parties regarding austerity measures to ensure the bailout funds for March (as Greece has a 14 billion payment due) are virtually at a stand still.
There needs to be agreement within the Papademos’ government regarding these new austerity and the restructuring of government  programs and staffing.
EU officials are waiting for the Greek government to come to terms with the new package which includes “wage and pension reductions, along with job cuts and tougher tax enforcement programs”.

Asian equity markets were higher-but with no news out of Greece-European equity markets dropped lower-and US Futures are lower at this time.

Last night the NY Giants won the NFL Superbowl-and the big winners were the advertisers and networks.  Commercials cost up to $3.5 million for a  30 second spot during the game.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-January.25.2012

Good Morning:

Another choppy night of trading as Euro and GBP led the parade.
With better than expected German IFO data-the EUR/USD pair rose to the mid 1.30 range before falling back into the mid 1.29 range.
GBP did worse-as lower than expected Q4 GDP surprised the markets.  With manufacturers cutting production, and the service sector stagnant-is the UK looking at a double-dip recession?  The BOE will be assessing it’s QE program to see if additional stimulus will not only be needed-but will it do anything in reality-only time will tell.
Greece is still negotiating with private bond holders to work out new interest rates for a bond swap.  The prospects are not looking rosy.

Apple Inc blew out Q4 earnings-expected earnings $10.16/share-real earnings $13.87/share.  Apple is now the largest company in the world.  They have jumped over Exxon/Mobil to take the #1 spot.

Last night President Obama gave his “State of the Union” speech.  He called for higher taxes on the rich, and more government spending (I have no idea where this money will come from) for job creation.  It was a very political and partisan speech-pitting Democrats and Republicans against each other.  In my opinion-the fighting between parties has added to the problems in Washington.   

 This afternoon we have the statement from the FOMC-and a news conference By Chairman Bernanke.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-January.23.2012

Good Morning:

Asian trading was muted as the start the Chinese New Year kept many Asian market participants away.

In a move that has been anticipated- EU Foreign Ministers announced that there will a ban on Iranian oil imports beginning July 1st in an effort to pressure the nation to contain its nuclear program.  The EU will try to put measures in place to ease the pain of an embargo for some countries, like Greece
Iran has been meeting with Indian officials on how to maintain trade-as the world looks to tighten sanctions around Iran and countries doing business with them.  Iran is India’s second largest oil supplier-and they have discussed Iran being paid in rupees.  Iran is seeking partial payment in JPY-as Iran is concerned about the value of the rupee staying somewhat stable.

Equity markets are higher-as are US Futures.

Oil, Gold and silver are all higher.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-December.6.2011

Good Morning:

Risk 0ff after yesterday’s late afternoon announcement by S&P that they are putting 17 European countries on a negative credit watch.
This negative watch may lead to possible downgrades.
In other S&P news-they have reaffirmed China’s Aa/A-1+ rating.
S&P seems to be interested in politics again, after downgrading the US this summer.  S&P commented that the “continued disagreements among European policy makers” was a main reason for the downgrade warning.  Many feel that S&P should back off-as the downgrade watch just complicates solving the EU debt crisis.
With the EU meeting for yet another summit in Brussels on Dec 8 and 9-analysts questioned the timing of the S&P move.
Ahead of the summit-German Chancellor Merkel and French President Sarkozy will present a plan to rewrite the EU’s governing treaty to enforce tighter economic controls over member countries.
The crisis has already led to bailouts for Greece,Ireland and Portugal-and it looks like Italy is next in line.

World equity markets were mostly lower-but US futures are slightly higher.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Nov.14.2011

Good Morning:

The initial euphoria of new leadership in Italy and Greece faded as the morning went on.   Mr. Papandremous of Greece and Mario Monti
of Italy both have economic backgrounds, which was an essential component in picking new leadership to govern these countries.
With the chaos going on in the region-the markets are looking to the ECB, and their new leadership to right the ship.
In reality-any new economic reforms will take time to put in place. With a population that is already reeling from weak regional economies, along with austerity measures that have been in place,and are not popular with the masses-any new reforms will be a hard sell.
Comments from ECB members also put a damper on any positive direction for the markets.  One member stated that the ECB’s support for Italy would only be temporary-and that the ECB will not be the lender of last resort in the EU.

Gold, Silver,Oil are all lower.

Equity markets are lower-and US Futures are slightly lower this morning.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-November.3.2011

Good Morning:

As expected, Greece took center stage in the FX theatre overnight, as the markets await news on an ECB rate decision. 
First their were rumors that Greek PM Papandreou was going to resign-then that was denied.  Then the PM announced an emergency cabinet meeting for today.
EU members have virtually told Greece that they will not get one Euro in additional bailout funds until the austerity package is agreed upon.  With PM Papandreou insisting on a referendum vote, which will take 40 days or more to organize, this action could cause Greece to go into bankruptcy, which would be detrimental for Greece, Europe and the global economy in general.

US Weekly jobless claims fall 9K to 397K.  Nice to see the number under 400K-even if it is by a hair.
This is more proof of a slow (to say the least) labor market-maybe we do need some more QE???

We will get news of the ECB rate decision in about 10 minutes, and then we will be introduced to the new ECB President Draghi.  I am sue that the press conference will be focused on the ECB lowering rates, continuation of ECB purchase of Italian and Spanish debt, and the Greek situation.

HAVE A GREAT DAY & GOOD LUCK  

 

Spanish Finance Minister Salgado on the Wires

Says:

• ‘Nothing was said on Greek referendum at summit
• Main two Greek parties should reach agreement
• Greek parties should make accord to reduce uncertainty
• Economic forecasts are ‘out of date’
• There’s ‘enormous slowdown’ in developed countries
• No one expected Greek referendum

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