Bobbys Corner-Open Market-Feb.28.2012

Good Morning:

The Greek sage continues:

S&P cuts Greece’s rating to “selective default” from CC.  This was expected once the debt swaps started.  S&P sees the Greek debt plan as nothing but a distressed restructuring.
Markets reacted positively to the initial news that the German Parliament voted in favor of the aid package to Greece.  It seems that the German courts may have a challenge to this aid package-we will see what happens in due time.

In US economic data Durable goods tumbled 4%-a dreadful report.  Durable goods data is always volatile-but this will be a hard number to overcome.

World equity and US Futures are higher.
Gold and silver are higher-while oil is stable.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Feb.16.2012

Good Morning:

Oh- the Greek sage:

With uncertainty being the main theme-the euro lost steam-and the EUR/USD fell below 1.30.
With the March 20 deadline on a 15 billion euro bond payment due-there is now talk of a bridge loan to Greece-if the bailout package cannot be completed in time.  This would be some what chaotic for the markets-but the thought is that Greece is holding elections in April-and the Troika would like to insure that the austerity measures passed will continue with the new (which there probably will be) government and Prime Minister.
Market participants will be looking for next Monday’s meeting of EU finance ministers for any new signs of progress.

In other news-Moody’s has commented that they will review and may cut 17 global and 114 European financial companies as the debt crisis in the euro zone continues to spread.

Oil is still over $101/bbl-as the Iranian situation continues to heat up.

World equity markets and US Futures are lower today.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Feb.15.2012

Good Morning:

A very interesting overnight session.

Greece:
Conservative Party leader Samaras stated that a commitment letter pertaining to the new measures for the 2nd bailout package will be sent today. The letter will keep negotiations going, and hopefully the EU’s Finance Ministers can agree to the package-and start by next Monday’s Eurogroup meeting.

Iran state TV stated that Iran will cut oil exports to 6 EU nations: Netherlands,Greece,Portugal,Italy, France and Spain.  Portugal’s only refiner, GALP, says that they do not import Iranian oil, so this will not effect them.  Confusing !

China’s Central Bank leader reiterated their support of the Euro, and committed to continuing buying euro denominated assets.  China has always been a supporter of the single currency-as China is always looking for a viable reserve currency besides the USD.

World equity markets and US futures are higher.

Oil is higher as Iran continues to rattle the international markets.  With WTI at$101.40/bbl.

Gold and silver are lso higher today.

HAVE A GREAT DAY& GOOD LUCK

Bobbys Corner-Open Market-Feb.10.2012

Good Morning:

The Greek saga continues:

The Euro, commodity and equity markets all took a turn south as we await the results  of this weekend’s vote by Greek politicians.
In the latest news, Greece’s far right Laos party stated that they cannot vote for the bailout package.  If it binds Greece for 50 years-the Laos party will not endorse the package.
It now appears that the Greek initiatives to shrink their budget will not be sufficient for the EU and IMF.  The civil servants union-ADEDY has called a 48 hour strike (again).  Mass transit is virtually stopped-and hospital doctors and bank employees are also on strike.

What a mess-  The markets may be rocky and spotty the next few sessions.

Equity markets worldwide are lower-as are futures.
Gold,Silver, Oil and most of the commodity world are lower.

HAVE A GREAT DAY-WEEKEND &GOOD LUCK

Bobbys Corner-Open Market-Feb.9.2012

Good Morning:

The ECB left interest rates unchanged at 1%-which was highly expected by market participants.
The BOE also left interest rates unchanged at .5%-and will increase their QE asset purchases.

The European Troika gave Greece an additional 15 days to find 300 million euros of pension cuts.  This seems to be a major stumbling block, and the process will be stalled until this issue is taken care of.

The ECB left interest rates unchanged-as the ECB is taking a “wait and see” approach to the Greek bailout deal.
Greek leaders could not come up with a full austerity plan-and the Greek Finance Minister is on his way to Brussels.  He was expected in Brussels to meet with EU leaders with a completed plan-he now goes to plead his countries case-Again-to EU leaders.

Gold, Silver and gold are all higher.

Asian equity markets were lower-Europe is flat-US Futures are higher.

HAVE A GREAT DAY & GOOD LUCK

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

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