Tagged: The Day Today

Due to a printing error, tomorrow’s Guardian is full of water.


* Drowned Italian Wins Eurovision
* Bank of England Recovers from Swollen Chairman Unusualness
* Elastic song strangles Hucknall
* Girl Made Of Paint Wins By-election


Hello you
There was a rotting smell of fear in the City today when leisure conglomerate Bottington Fiasco fell 10 percentages leaving the cup open for a hammer bid from Silica FistFruit at 12.
There were no dollars today.

Onto the money markets, with a quick look at the currency kidney. There’s a lot of pressure on the Bundersvessel leading to a slight inflammation in the exchange tract causing a flow
of waste pounds across all international membranes.

The central numerical council issued the new 7 today: it will be 3 kilos heavier than the old 7 and made of glass.

Arguments ballooned across the markets when international talks collapsed, and Spain withdraw and started trading with itself. The peseta burst open at 4.

The pound was barely audible this morning, it rotted by 3.9 points against the dollar.

And there was a great big whoop of dismay in the market when TroubleFinch Dusky Holdings dropped off an eighth at 2.4 after a disappointing gutter surge tomorrow.

To see how the pound fared, let’s look at the Currency Susan: It started off the day quite healthily as a Medium Susan, while the Yen surged to a quite attractive, popular Susan by close of trading, with the Euro resting on a plain dumpy Susan with bad ears.

In summary then: Oh no.


[And this post is for all of you who say that my blog makes little or no sense!! With thanks to the genius of Chris Morris and Armando Ianucci for the above]





The Day Today 15 July 2014

  • Fed Chair semi-annual testimony today, so Janet Yellen’s magazine interview with the New Yorker pored over with even more interest than usual. Latest quote: ‘”And so even when the headwinds have diminished to the point where the economy is finally back on track and it’s where we want it to be, it’s still going to require an unusually accommodative monetary policy,” http://reut.rs/1ykW8tG
  • WSJ’s Hilsenrath points out that for her last testimony, Janet faced 6.7% unemp and 1.2% inflation, now 6.1% and 1.8% respectively. That’s good, but how did jobs rise when growth fell? She may argue that the job market is far from strong, more part timers want full time work http://on.wsj.com/1npFfWz
  • Bloomberg’s guide to the Yellen testimony: http://bloom.bg/1kYm8Tr


  • As has been the case all year (but only picked up more widely now) 3 regional Fed banks have argued for a hike in the discount rate  http://bit.ly/1p0Wn7u


  • Draghi, we know his road map: ‘”In the present context, an appreciated exchange rate is a risk to the sustainability of the recovery,” and “QE falls squarely in our mandate” http://reut.rs/UavQey



  • UK Cabinet reshuffle says goodbye to William Hague with the Eurosceptic and ‘safe pair of hands’ Philip Hammond set to replace to him as Foreign Secretary. Hammond has previously said he would vote for the UK to leave the EU. http://bit.ly/1sX3NLz Another risk to add to anyone looking at GBP volatility in the year ahead…

The Day Today 7 July 2014

* Following last week’s stellar jobs report… ex-Fed Vice Chair Alan Blinder warns that “there is a risk” the economy repeats the 1970s due to poor productivity growth, meaning the FOMC must be a “little more cautious” about keeping rates near zero {fifw NSN N8B6UX6TTDS0 <go>}


ECB Speakers singing from the same song sheet:

* Noyer: “it would be logical, given the difference in the economic cycle with the US, that the euro depreciated a bit” http://reut.rs/1xECPez

* Coeure: “We’ve been clear I think that rates will remain very low, very close to zero for a very long period, regardless of the developments in the rest of the world. One must expect a divergence between monetary conditions in the euro zone and in the U.S. and the U.K., where rates will rise at some point.” {fifw NSN N8A9UO6S972C <go>}

* Nowotny: “markets have understood ECB package of measures” {fifw NSN N8BZ4I6S973X <go>}


* China’s Premier Li says the economy still faces downward pressure. “Must step up” fine-tuning, pre-emptive adjustments. {fifw NSN N8BRCQ6JTSED <GO>}


* Italy’s PM Renzi criticises head of Bundesbank: “Its role is not to get involved in Italian political debate . . . just as I don’t talk about the Sparkassen, or the Landesbanken, I don’t expect the Bundesbank to talk about Italian politics.” http://bit.ly/1pTLAkQ


* BBRG: Bond Anxiety in $1.6 Trillion Repo Market as Failures Soar….’failures to deliver Treasuries have averaged $65.6 billion a week this year, reaching as much as $197.6 billion in the week ended June 18, Fed data show.’ {fifw NSN N8BR2T6JTSEF <GO>}


* SNB’s Zurbruegg: “Inflation will remain low for longer than we assumed at our last policy assessment”.. Says current situation in Swiss property markets is reminiscent of real estate crash in 1990s {fifw NSN N89D9T6VDKHT <go>}


The (Independence) Day Today 4 July 2014

Oh say can you see, by the dawn’s early light… that the US data yesterday was uniformly indicative of a strong economy. On this day 13 years ago yours truly arrived in New York as a fresh faced graduate with an American bank, unaware of the two stock market crashes on the horizon, but very aware that Americans struggle with how to make a good cup of tea. It is, more importantly, the first anniversary of the BOE’s forward guidance, when Carney told us that the market pricing of a first hike in H2 2014 was “not warranted” – and now a year later he said a low probability of hikes by the end of 2014 was “somewhat surprising”. Let’s bear that in mind as the US data shows the fall in the unemployment rate to be as dramatic as that in the UK…..


* Mr Draghi announced that the ECB will be having fewer meetings going forward, every 6 weeks rather than every 4, and will produce Minutes of each meeting [maybe there’s less to do when rates are negative?] {fifw NSN N85BU46K50XX <go>}


* FT: China and South Korea poised for bilateral trade deal http://on.ft.com/1qVbnGd


* Good times keep a’coming: Malaysia is set for its largest initial public offering so far this year after 1MDB, a vast sovereign wealth fund formed only five years ago, unveiled plans for a listing of its power generation assets that could raise up to $3bn (FT) http://on.ft.com/1vEsrAx


* BMW will invest $1bn to build a car plant in Mexico as it follows other premium automakers in seeking to use the low-cost location to tap growing sales in North America (FT) http://on.ft.com/1j2edZQ


* The state-run newspaper Global Times has warned its readers that Hong Kong faces becoming the next Ukraine or Thailand if it embraces a period of “political upheaval” http://bit.ly/1rsjc8L


* JPMorgan Said to Have Unwittingly Helped BNP Hide Sudan Money {fifw NSN N85RUE6KLVRN <go>}




The Day Today 3 July 2014

Today’s the big one, with the US holiday tomorrow bringing forward all the US data, so Mario Draghi will have to fight the non-farm payrolls backwash if he wants to make waves with his press conference at the same time. The jobs report has been remarkably stable so are we due fireworks the day before the start of the market’s unofficial summer holiday?

* Sweden’s Riksbank surprises with a 50bp cut, and follows the Norges Bank with substantial reductions to their future rate path, of 100bps {fifw NSN N84MAF6S9728 <go>}

* RBA’s Stevens warns on currency strength: “the cash rate is well below normal…[the A$] is overvalued and not by just a few cents”. He also warned investors to “take care” in the Sydney property market, pointing out prices could fall http://bit.ly/1pL4tGC

* He also devotes part of his speech to communications, pointing out they used the word ‘stability’ to stop market from pricing in hikes. When they move to tighten he says they will use the word ‘appropriate’. He also said market read too much into dropping of the phrase about the currency being ‘uncomfortably high’. In the Q&A he flagged up again the “underestimation of the likelihood of the AUD going down at some point, and possibly quite materially” http://bit.ly/1pL5s9F


* BOE’s Cunliffe says the pace of rate hikes will be “gentler than it’s been in the past” {fifw NSN N84LHI6TTDS6 <go>}


* 20% drop in volumes traded at Eurex in June compared to last year http://bit.ly/TQN3tl


* In an interview to be aired today on American Public Media’s Marketplace radio program, Obama said an “unfinished piece of business” is to address banks that “take big risks

because the profit incentive and the bonus incentive is there for them.”{fifw NSN N849TI6K50YY <go>}


* Chinese Trader Said to Pledge Same Metals Three Times as Loan Collateral, according to an official investigation {fifw NSN N84MU26JTSEG <go>}