Daily Overnight News - 14/11/07

Discussion in 'Trading' started by Ransquawk, Nov 14, 2007.

  1. Ransquawk

    Ransquawk ET Sponsor


    JGB's retreated from a 21-month high as a leap in Wall Street shares boosted the Nikkei (+2.47%), prompting investors to trim their JGB holdings (RTRS) At 0630 JGB's were trading 136.51 (-0.41).

    BoJ's Mizuno said a balanced monetary policy is needed; recent Yen rise stems from subprime woes and may impact sentiment; subprime impact on Japan not big so far; long-term inflows into the US could fall if US-EZ interest rate gap reverses (DJ)**

    Chinese retail sales jumped 18.1% vs Exp. 17.2% in October from a year earlier, the fastest pace on record propelled by rising incomes, accelerating inflation and windfall gains from the surging stock market (RTRS)

    SPREADS - US 2s/10s (0630) 71.99 bps (71.78 bps at 2100); US 10s/30s (0630) 34.93 bps (34.94 bps at 2100); EURO 2s/10s (0630) Unchanged (27.60 bps at 2100); EURO 10s/30s (0630) Unchanged (32.24 bps at 2100)

    US/GE 10s (0630): Unchanged (13.65 bps at 2100)
    UK/GE 10s (0630): Unchanged (62.24 bps at 2100)

    Fed's Fisher said he has discomfort about inflation due to oil prices and must stay vigilant on inflation; US economy weakened by housing problems, but sees no signs of a major spillover; Fed remains ready to act as needed (RTRS/DJ)** On growth Fisher said the likely outcome is for the US economy to continue to expand at a sustainable pace.

    Pending Home Sales Index unexpectedly rises 0.2% in September, signals sign of some stabilization (NAR)**
    The NAR said the Pending Home Sales Index rose to 85.7 in September, vs. the consensus estimate of a 2.0% fall. The NAR said that sales of existing homes would likely be flat in the short-term as the lingering impact of the credit crunch filters through the system.

    Center For Responsible Lending says about 44.5 million homes near foreclosures may see values drop (BBG)
    The CRL said subprime foreclosures may cut U.S. home values by USD 233 billion.

    October budget deficit rises to USD 55.56 billion vs. USD 59.0 billion expected (BBG)
    In October 2006, the budget deficit stood at USD 49.32 billion.

    ABC News/Washington Post Consumer Comfort Index falls to -17 in November 11 week vs. -16 expected (MNI)

    SNB's Jordan: 'outside shocks increase rate policy uncertainty', 'carry trades can temporarily eclipse monetary policy effect on FX' (RTRS)**

    USD 101.2 billion in Treasury coupon payments and redemptions due between November 15-November 30 (RTRS)
    Analysts are noting that big U.S. coupon payments can often result in a dollar negative impact.

    Iran gives IAEA plans to mold uranium into warheads, fails to meet other IAEA requests on nuclear work, envoys say (DJ)**

    Turkey's military deployed commando units and tanks along the border with Iraq in preparation for a possible incursion into the country's Kurdish controlled northern region (Hurriyet)**

    Oil rose slightly overnight rebounding from two sessions of losses as prices backed away from record highs on expectations data will show that US oil inventories fell for a fourth straight week (RTRS) At 0630 crude was trading $91.67 up 50c.

    Oil could reach $200 a barrel if the US invaded Iran, according to Venezuelan President Hugo Chavez (FT)

    Total shuts gasoline unit at Leuna refinery, according to industry sources (BBG)

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