World economy talk

[uls]

overnight --

S&P500 fell 2.6%

S&P500 and Nasdaq are below their 200 dma

US consumer spending -0.2% in June (expected +0.2%) -- more confirmation the US economy is slowing

[uls]

US 10 yr yield


US 30 yr yield


^^ what do they mean?

confirmed US economic slowdown + USG spending cuts = US economy SCREWED

[Ry_Tower]

overnight --

S&P500 fell 2.6%

S&P500 and Nasdaq are below their 200 dma

US consumer spending -0.2% in June (expected +0.2%) -- more confirmation the US economy is slowing

For us gas guzzlers, mababang fuel cost sa hinaharap. hehe

[uls]

For us gas guzzlers, mababang fuel cost sa hinaharap. hehe

kung hindi mag QE3 ang Fed

---

tonight: ADP report

Thursday: weekly jobless claims

Friday: non-farm payrolls

[tidus1203]

As usual I am eager waiting for Friday... I have a kinda adventurous hunch it could be NEGATIVE. Yeah a bold thought but you never know given June's job report...

[uls]

^^

what the hell happened?

this happened:

http://www.snb.ch/en/mmr/reference/p...0110803.en.pdf

Swiss National Bank takes measures against strong Swiss franc

The Swiss National Bank (SNB) considers the Swiss franc to be massively overvalued at present. This current strength of the Swiss franc is threatening the development of the economy and increasing the downside risks to price stability in Switzerland. The SNB will not tolerate a continual tightening of monetary conditions and is therefore taking measures against the strong Swiss franc.

Effective immediately, the SNB is aiming for a three-month Libor as close to zero as possible, narrowing the target range for the three-month Libor from 0.00–0.75% to 0.00– 0.25%. At the same time, it will very significantly increase the supply of liquidity to the Swiss franc money market over the next few days. It intends to expand banks’ sight deposits at the SNB from currently around CHF 30 billion to CHF 80 billion. Consequently, with immediate effect, the SNB will no longer renew repos and SNB Bills that fall due and will repurchase outstanding SNB Bills, until the desired level of sight deposits has been reached.

Since the SNB’s last quarterly monetary policy assessment, the global economic outlook has worsened. At the same time the appreciation of the Swiss franc has accelerated sharply during the last few weeks. Consequently, the outlook for the Swiss economy has deteriorated substantially.

The SNB is keeping a close watch on developments on the foreign exchange market and will take further measures against the strength of the Swiss franc if necessary.

[tidus1203]

Good opportunity to short EUR/CHF then...

Its not the CHF mga SNB parekoys, its the EURO and the USD that is the problem that's why your currency is strengthening... Unless of course you guys want to put Switzerland in the same position as the US and the peripheral Euro countries that could solve your strong CHF crisis!

[Monseratto]

Almost forgot about our favorite commodities...

NYMEX Crude


GOLD

[eld]

this whole debt ceiling drama demonstrated the power of the tea party movement in the states

the tea party congressmen almost prevented the raising of the debt ceiling which would have led to USG default

I've heard a hit was put on the lives of the tea party congressmen na against raising the ceiling. Ewan ko lang kung totoo 'yan. But whatever teh case may be, it was all political theatre. Siyempre ipapasa talaga nila 'yan. Better to kill America slowly para masanay ang mga tao and avoid a bloodbath. Dems and Repubs are both sides of the same coin

[eld]

Spain's Prime Minister Jose Luis Zapatero has been forced to postpone his holiday as investors continue to flee his country's debt.

You mean they haven't done so already? meron pa rin investors na natira? hahaha antatanga naman. :rofl:

[eld]

Good opportunity to short EUR/CHF then...

Its not the CHF mga SNB parekoys, its the EURO and the USD that is the problem that's why your currency is strengthening... Unless of course you guys want to put Switzerland in the same position as the US and the peripheral Euro countries that could solve your strong CHF crisis!

Hmm...so lumalabas na resulta ng Bilderberg meet? We all know what happened to the last two countries that hosted them.

[tidus1203]

Good opportunity to short EUR/CHF then...

Its not the CHF mga SNB parekoys, its the EURO and the USD that is the problem that's why your currency is strengthening... Unless of course you guys want to put Switzerland in the same position as the US and the peripheral Euro countries that could solve your strong CHF crisis!

USD/CHF and we are not even done for the trading day yet, US markets is still open... So all those declines of the CHF a few hours ago wiped out and we are back roughly where we started... Brilliant!

[uls]

hahaha

so much for SNB's attempt to weaken the swiss franc

lasted only a few hours

[uls]

Brazil

[tidus1203]

WASHINGTON (AP) -- Unemployment rates rose in more than 90 percent of U.S. cities in June, mirroring a national slowdown in hiring.

The Labor Department said Wednesday that unemployment rates rose in 345 large metro areas. They dropped in 20 cities and were unchanged in seven. That's worse than May, when rates rose in only 210 cities. And it is a sharp reversal from April, when unemployment rates fell in nearly all metro areas.

Unemployment rose in nearly all US cities - Yahoo! Finance

Nice setup for Friday!

[uls]

did Japan intervene?



BRB

update:

confirmed. Japan intervened. ministry of finance sold yen (under 500 billion)

impressive spike no?

[tidus1203]

Japan's MOF confirms intervention in the market... JPY down, I say JOY oh JOY opportunity again to buy JPY! Bahala ka na kung against USD or EUR...

[uls]

over German 10 yr

Italy 10 yr spread


Spain 10 yr spread



---


Italy PM Berlusconi --

“Our economy is healthy. The country is economically and financially solid.”

yeah right

[tidus1203]

Ikaw naman uls oh, he's (Berlusconi) a politician. Kailangan nya mag-bola and mag sinungaling yan naman trabaho ng mga pulitiko e...

[uls]

it would be more fun if he just said "Italy is screwed"

hehe

--

anyway, Europe banks hold a lot of Italy and Spain bonds

those bonds are used as collateral for short term loans

with bond prices falling, lenders aren't very willing to accept those bonds

Europe banks are experiencing funding problems already