European Morning News (19/11/2007)

Discussion in 'Trading' started by Ransquawk, Nov 19, 2007.

  1. Ransquawk

    Ransquawk ET Sponsor

    JGBs - The benchmark 10-year futures contract was down just 1 tick to 137.03 by 0620 as market players digested a fall in USTs on Friday but credit jitters remained.

    China to raise rates, reserve ratio this year, Peking University economist says (China Securities Journal)

    Chinese NDRC: preventing economic overheating remains top priority of Chinese government (MNI)
    In related news, China has quietly asked its banks to freeze their lending through the end of the year, according to the WSJ.

    PBOC's Zhou: China will gradually make Yuan rate more flexible, could broaden trading band or other means (MNI)
    Zhou also said that the PBOC is 'comfortable' with the level of interest rates, but is closely observing incoming data. PBOC does not see big price risks over the next year.

    SPREADS - US 2s/10s (0630) 81.74 bps (81.70 bps at 2100); US 10s/30s (0630) 36.32 bps (36.33 bps at 2100); EURO 2s/10s (0630) Unchanged (30.70 bps at 2100); EURO 10s/30s (0630) Unchanged (35.80 bps at 2100)

    US/GE 10s (0630): Unchanged (6.90 bps at 2100)
    UK/GE 10s (0630): Unchanged (52.70 bps at 2100)

    Fed's Stern: must see how things evolve, will be flexible on Fed rates, spillover into economy from housing market 'modest' so far (MNI)**
    Stern (Minneapolis, non-voter) also said that the adjustment in the U.S. housing market still has some way to go.

    NABE: recession is not the most likely outcome for U.S. economy, growth to pick-up 'gradually' even without more Fed easing (MNI)
    The NABE sees 'slightly higher' 2008 headline inflation, but lower core; generally expects Fed to stay on hold in 2008 at 4.50%.

    Treasury's Paulson: U.S. economy to weather housing slump, decline not over, financial markets to volatile for some time (RTRS)

    Fannie Mae's credit losses still in doubt (Fortune Magazine)

    Iranian President said Sunday that OPEC's members have expressed interest in converting their cash reserves into a currency other than the depreciating U.S. dollar, which he called a "worthless piece of paper." (AP)**

    BOC's Dodge: BOC will adjust monetary policy to reflect risk of global economic slowdown, CAD has borne brunt of USD weakness (Globe & Mail)

    ECB's Trichet: 'abrupt' currency moves are not welcome (MNI)**

    Saudi Arabia & U.A.E. may consider revaluing their currencies, but will not drop dollar pegs; moves could happen within a month (DJ)
    DJ, citing sources, said the revaluation would be 'very small'.

    G20: Down-side risks to near-term global economic outlook but likely modest slowing, food & energy to add to price pressures (RTRS)

    Iran will not use crude oil as a 'weapon', President Ahmadinejad says (BBG)

    OPEC nations in clash over mention of dollar’s weakness (Weekend FT)**
    The Iranian and Venezuelan ministers called for more radical measures and a specific mention of the effect of the dollar to be added to the draft declaration. However, the Saudi foreign affairs minister warned “the mere mention that OPEC is studying the issue of the dollar is going to have an impact”. An Iranian official pointed out that in euros the average price of oil for the year to date was significantly below the average last year. OPEC states agreed their finance ministers would meet before December 5 to discuss the sliding dollar's impact.


    The above commentary was provided by Real-time Analysis & News (R.A.N) Ltd (known to traders as “Ransquawk”) operates from 0630GMT until 2200GMT to incorporate full coverage of the US bond and equity futures markets. Currently R.A.N covers Bond, STIR and Index futures in the US, UK and Eurozone as well as NYMEX crude and Gold. Furthermore, R.A.N has a stand alone Forex service (Ransquawk FX) which covers all the major currency pairs. Coverage is based around the economic calendar for that day but the product finds its value looking at flows, rumours and breaking news, and delivers that information to the customer via an internet ‘squawk-box’.

    For more information and a 1-week free trial please email us at