Overnight Trading Summary 13/11/07

Discussion in 'Trading' started by Ransquawk, Nov 13, 2007.

  1. Ransquawk

    Ransquawk ET Sponsor


    JGB's were trading higher and the 10-year yield hit a 21-month low as the Nikkei fell near 0.5%, with investors awaiting comments from BoJ governor Fukui for clues on the policy outlook (RTRS) At 0630 JGB's were trading 136.92 (+0.23).

    The BoJ kept its policy rate target unchanged at 0.50% for the 11th straight review, as widely expected, reflecting caution among central bankers over market uncertainty and fallout from problems in the US housing sector (RTRS)** The vote was 8-1 with Mizuno dissenting.

    Soaring food costs pushed China's inflation back to a near 11-year high in October, reinforcing expectations of further interest rate rises and adding to worries that rising costs to consumers could undermine social stability (RTRS)** CPI (Oct) 6.5% vs Exp. 6.3% (Prev. 6.2%). Premier Wen Jiabao said the government will take measures to stabilise prices.

    SPREADS - US 2s/10s (0630) 80.36 bps (78.18 bps at 2100); US 10s/30s (0630) 39.09 bps (38.94 bps at 2100); EURO 2s/10s (0630) Unchanged (27.00 bps at 2100); EURO 10s/30s (0630) Unchanged (33.20 bps at 2100)

    US/GE 10s (0630): Unchanged (11.33 bps at 2100)
    UK/GE 10s (0630): Unchanged (65.10 bps at 2100)

    Consumer spending won't fall and cause recession - John Berry (BBG)**
    Writing in his article that this scenario is highly unlikely.

    Weak USD may be a checkmate for the Fed - Caroline Baum (BBG)
    Bernanke's problem is that if he cuts the dollar will go down even more.

    EU's Almunia said that France's Lagarde is expecting positive growth figures for Q3 this year. (RTRS)

    UK's CEPR says banks should retain debt risk (WSJ)

    Japan's PM Fukuda said the Yen appreciating too fast and that speculators should be careful to avoid the possibility of intervention (RTRS)** Japanese finance minister Nukaga said he share the G7 view that rapid FX moves are undesirable and is to eye FX moves and consider responses.

    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.

    UK PM Gordon Brown has warned Iran that it had to comply with non-proliferation rules on nuclear weapons or face further consequences (Telegraph)** Brown warned of sanctions on oil and gas companies and once again refused to rule out military intervention.

    OPEC members will not announce an increase in oil production at this weekend's Riyadh summit, according to Saudi's oil minister, suggesting oil prices are likely to stay around $100 a barrel (FT)** Ali Naimi said there is absolutely no discussion of a production increase. At 0645 crude has reversed its overnight losses and was trading up 3c at $94.65.

    Royal Dutch Shell said that output is near 190K b/d at its Mars platform after a multiday outage. The company expects to resume full output in a couple of days. (RTRS)

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