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.

Fed Governor Lockhart on the Wire

Fed Governor of Atlanta Dennis Lockhart had the following comments:

• Operation Twist will likely have ‘modest’ impact.
• Inflation too high but moving in the ‘right direction.’
• Implementing Dodd-Frank is ‘enormous task.’
• Rates will rise when economy in ‘healthier positions.’
• ‘Uncertainty level’ is ‘more vexing’ than in past.
• ‘Not calling’ for Fed to focus only on inflation.
• Fed not succeeding on employment mandate.
• Decline in home values gives economy ‘fragile feel.’
• Downgrades of 3rd quarter growth too pessimistic.
• Economic data more upbeat reducing downturn risks.
• Criticisms of Bernanke ‘not remotely justified.’
• Reduction in Balance Sheet would be tightening.
• Not facing circumstances warranting QE3.
• Onset of downturn, deflation forces needed before QE3.
• Growth pace could allow ‘a little patience’ for Fed.

Fed’s Lacker Comments

The Federal Reserve of Richmond’s Lacker had the following comments in a speech in Maryland that moved the USD lower across the board:

• Job mismatch impedes economic recovery.
• Sees 2-3% US economic growth pace over ‘near term.’
• Says he cant rule out ‘less robust’ growth path.
• Sustained inflation of less than 2% unlikely.
• Risk to inflation outlook ‘lie to the upside.’
• Fed shouldn’t ‘relax our vigilance’ on inflation.
• Recovery to be ‘relatively independent’ of Fed policy.
• Main effect of operation Twist will be higher inflation.
• Three dissents at Fed meeting ‘ no cause for concern.’
• Its inappropriate to channel credit to some sectors.
• Unwilling to support reinvestment into MBS.
• Feds attempts to boost growth may only raise prices.
• Withdrawing stimulus ‘may be warranted soon.’
• Fed ‘should not be adding monetary stimulus.’
• Recent data confirm chances of ‘downturn’ remote.
• Inflation likely to settle around 2%.
• Economy has shown ‘continued modest growth.’

Bobbys Corner-Open Market-Oct.12.2011

Good Morning:

Risk was back on the table overnight as equity markets traded higher, thus forcing the USD and JPY lower as investors seek higher-yielding assets-and forfeit the safer havens for now.
Aussie and Kiwi jumped higher, as did the Euro.  The Euro rose to a 3 week high as news that the European Commission will present proposals to recapitalize the European banks today.
The Swiss Franc also rose overnight-as investors anticipate that the Swiss Nat’l Bank may act to further weaken the CHF by adjusting the original cap that the SNB put into place last month versus the Euro.
In other news from accross the pond-the BOE stated that their new round of stimulus is needed, and that the BOE will do whatever needs to be done to keep the UK economy on track.

World equity markets rose-as did Gold, and Oil.
US Futures are also higher at this time.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Oct.11.2011

Good Morning:

Quotes from the five best foreign-exchange forecasters (as measured by Bloomberg), say that the best is over for the dollar.  The rally that has helped the greenback has no chance of continuing-as the slow US economy will force the Fed to flood the world with USD, to inject liquidity into the financial sector through bond purchases.  With almost 3 years of near zero interest rates, and $2.35 billion of bond purchases during the same 3 years pulled the US out of a recession, but the faltering economy has some analysts fearing a new recession is brewing on the horizon.

The Euro was a bit softer ahead of a vote by Slovakian Lawmakers on the Euro Zone bailout.  Most feel that this will pass, but that the vote will be messy-thus adding additional uncertainty to an already uncertain situation.
In other Euro Zone news, the  Greek government is  comenting that the budget deficit will be 9.1% of Greek GDP-versus the original target of 7.5%.  I am not surprised-are you?  

Asian equity markets were higher, following NY”s rally on Monday (up 330 points).  European markets and US Futures are lower at this time.

Gold and oil are lower.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Oct.3.2011

Good Morning:

Fears of a default by Greece has pushed the Euro to a 8 month low versus the USD.  The Euro’s decline was it’s steepest since June 2010.
Questions regarding Greece’s ability to secure additional bailout funds on the heels of fresh budget cuts made by the Greek government are on the forefront of most investors thoughts these days. 
The main issue is that weak growth prospects in Greece’s economy, along with additional cuts in Greek government spending, and additional taxes being placed on the Greek population are all leading to economic failure.
The cost of an EU bailout, along with keeping the debt crisis from spreading larger will not only take a lot of time-it will take a lot of money-most certainly more than the 440 billion Euros that have been agreed to so far.
In other European banking news-Dexia Bank -the French-Belgian Bank has been placed on a downgrade watch by Moody’s.
Moody’s already downgraded Soc Gen and Credit Agricole’s long term rating in September.  This just adds to the woes of the French Banking sector-which is rumored to be exposed to Greek debt in a big way.

World equity markets were and are mostly lower-at this time-and US Futures are pointing to a lower opening this morning.

Gold and silver are higher-Oil is lower at this time.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Sept.27.2011

Good Morning:

The Aussie and Kiwi rallied in overnight trading-as Asian equity markets also rallied-indicating that investors are seeking higher-yielding assets in these uncertain economic times.
In Euro Zone business-The Greek Finance Minister stated that the EU should stick with the deal that was agreed to in July. He feels that the EZ should be focused on growth-not looking for a default.  The Greek Parliament has a vote scheduled today regarding additional austerity measures that were imposed by the ECB,EU and IMF so that additional bailout funds can be distributed to the country.  One of the austerity measures is a new property tax which is going to be a tough sell to their fellow countrymen-but is expected to pass during today’s vote.

World equity markets rallied, as US Futures are also posting higher numbers as we speak.  So it looks like the equity markets will open higher-and let’s hope they stay that way during the day.

Gold and Oil are also trading in positive territory this morning.

HAVE A GREAT DAY & GOOD LUCK

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