Treasury Comments on China Adviser

A China Adviser said that Geithner said Fed can’t do QE3, as reported by MNI (Mkt News Int’l.) However a Treasury spokesman commented that Geithner didn’t tell China the Fed is out of ammunition.

Bobbys Corner-Open Market-December.16.2011

Good Morning:

We see the end of the week ending with a weaker greenback and JPY.  With the US economy slowly showing signs of improvement-investors demand for safer assets lessened.

Following the downgrades by Moody’s and S&P-Fitch also downgraded Bank of America, Goldman Sachs, and Citigroup from the US.  European banks that were also downgraded were Barclays, Credi Suisse, Deutsche Bank and BNP.  The downgrades come after all three rating agencies completed their reviews of the financial sector.

Rumors are swirling around the markets that S&P is considering a downgrade of Italy and Spain-while leaving France alone-at least for this round.

World equity markets along with US Futures are all higher-as are commodity prices.

I will be on holiday until Dec. 27-so I would like to wish everyone a Merry Christmas.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

Bobbys Corner-Open Market-December.12.2011

Good Morning:

The USD and JPY rose as investors seek out safe haven assets as the European debt crisis continues to cause havoc in the marketplace.
It seems that some of the “crisis fighting” measures that have been put in place are not enough-as European borrowing costs are continuing to rise.
Moody’s Investor Services will again review the ratings of European Union countries after last weeks summit did not produce any real initiates to put and end to the debt crisis.
S&P also made comments that the EU summit made some progress, but did not come away with any concrete decisions.
The CHF also fell versus the USD as investors continued concerns that European leaders have not come up with an agreement to reign in the debt crisis, thus causing investors to seek assets with less ties to the Euro Zone.

Asian equity markets were mixed-Europe is lower-and US Futures are pointing to a lower opening this morning.
 
Gold and Silver and Oil are all lower.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-December.5.2011

Good Morning:

The euro was stronger against the JPY and USD to start the week.  The Italian government approved a new deficit reduction plan ahead of this week’s European summit to discuss the Euro Zone’s sovereign debt issues.  The new plan will include new taxes on luxury items, delay in state employee’s retirement age, and a levy on first time home buyers.
The Euro strength came on the heels of a proposal for ECB loans to be channeled through the IMF.
The proposal is loaded with problems of it’s own.  Many feel that the IMF is just not big enough to sustain large financing for the Euro Zone.  Also, there is concern that members of the undeveloped member countries will feel that too much of the IMF’s funds and resources will be diverted to the Euro Zone.

World equity markets are higher-as are US Futures.

Oil is slightly higher-but Gold is lower.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-November.23.2011

Good Morning:

The GBP dropped to it’s weakest level in 6 weeks-after minutes of the last Bank of England meeting showed that many members of the committee feel the need for an increase in the ongoing stimulus program.
In further news from the Euro Zone-the Euro fell to a 6 week low against the USD as data suggests that the sovereign debt crisis that is plaguing the region will directly effect growth within Europe.
Fitch rating have stated that the continued debt crisis  now facing France-may have a negative impact on their AAA rating.  With the latest increase in French government debt-their ability to absorb any fresh “shocks” will be difficult to control.

World equity markets are lower-as are US Futures.

Oil, Gold, and silver are all lower also.

I want to wish everyone (who celebrates this holiday) a HAPPY THANKSGIVING.

HAVE A GREAT DAY & GOOD LUCK

FED Requires Top 31 Banks to Submit Annual Capital Plan

• Fed will publish stress test results for 19 biggest firms.
• Fed begins 2012 review, stress test same as scenario for annual capital test.
• Review to include 31 banks with assets exceeding $50B.
• Fed aims to promote ‘robust, forward-looking capital planning.’

Treasury Sectretary Geithner Speaks at APEC (Asia-Pacific Economic Coorperation)

• Europe remains ‘central challenge’ to global growth.
• Says its ‘crucial’ for Europe to move quickly.
• Europe needs ‘strong plan’ to restore stability.
• APEC economies in better position to spur growth.
• Asia must do more to stimulate domestic demand.
• China must allow it currency to strengthen.
• Asia should let currencies adjust to market forces.
• Asia currency policies to help in global re-balancing.
• APEC economies ‘most vulnerable’ to global slowdown.

Fed Fischer Comments on Further Easing

• Fishers support for FOMC decision doesn’t mean he backs easing.
• ‘No reason to dissent,’ as ‘new steps’ not taken.
• Lack of clarity on US fiscal policy is drag on growth.
• Say’s he wouldn’t support third round of QE.
• Still against further easing.

There are no real surprises in this commentary, however we have seen the EURUSD pair inch lower to start the new trading day, moving into an Asian session lacking any significant data.

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