Ransquawk Overnight News Summary 28/11/07

Discussion in 'Trading' started by Ransquawk, Nov 28, 2007.

  1. Ransquawk

    Ransquawk ET Sponsor


    JGB's rose to 137.10 by 0655, as investors remained doubtful of a quick resolution to global credit problems, with many financial institutions still struggling with losses from the slumping US housing sector (RTRS)

    SPREADS: US 2s/10s (0630): 88.87 bps (87.36 bps at 2100); US 10s/30s (0630): 41.93 bps (41.45 bps at 2100); EU 2s/10s (0630): Unchanged (35.80 bps at 2100); EU 10s/30s (0630): Unchanged (42.90 bps at 2100)

    US/GE 10s (0630): Unchanged (6.85 bps at 1800)
    UK/GE 10s (0630): Unchanged (54.80 bps at 2100)

    Fed's Evans (Chicago, voter): 'insurance is in place, risk of surprisingly weak growth unlikely, growth to return toward potential in 2008' (RTRS)**
    Evans also said that there is a good deal of uncertainty in the economy now, forecast in growth looks for large Q4 residential construction drop, housing markets will still struggle in 2008, jobs outlook currently remains healthy.

    Fed's Plosser (Philadelphia, non-voter): 'higher price expectations are a risk given Oct. rate cut, if inflation rises Fed may need to hike rate (BBG)**
    Plosser also said that he sees the U.S. economy growing at 2.5% by the end of 2008, economy to grow more slowly in coming months despite rate cuts, expects economy to rebound by mid-2008, hearing that some capital spending being put on hold.

    Fed Discount Rate meeting minutes highlight split in Fed over rates (BBG)**
    The minutes from the Fed's Discount Rate meeting minutes leading up to the October 30th FOMC meeting showed that 5 out of 12 regional banks requested a cut in the discount rate to 5.0% (25 basis points) before October 30th-31st meeting, New York joined the 5 on October 30th in requesting a 25 basis point cut.

    Freddie Mac cuts dividend by 50% to USD 0.25/share, will offer USD 6.0 billion of preferred stock (RTRS)**

    Citigroup may be open to more investments by outside parties, will not bring SIV assets onto its balance sheet (DJ)**

    Wells Fargo said it would take a USD 1.4bln Q4 charge related to losses on home equity loans (RTRS)

    ABC News/Washington Post Consumer Comfort Index falls to 2007 low at -21.0 in November 25 week (MNI)
    Previously, the Index stood at -19.0.

    Lehman Bros month-end extentions in treasuries extends by an exceptionally large +0.21 years into December (MNSI)

    ECB's Kranjec: 'were it not for growth uncertainties, ECB would probably have already raised rates, all options open for Dec. meeting' (RTRS)**
    Kranjec also said that the ECB is 'permanently vigilant and ready to act', doesn't know if ECB is concerned over Euro Zone inflation, still gathering information.

    ECB's Trichet said he does not welcome brutal currency moves (MNSI)**

    ECB infusion of extra cash fails to curb rates (WSJ) This following the ECB's pledge yesterday for an extra EUR 30bln of one week funds.

    iBoxx Euro Sovereign index extends by +0.01 years into December, lower than the historical average (MNSI)

    Chinese officials have reached a consensus on the need to let the Yuan appreciate more quickly and are considering how this will be put into effect (RTRS)

    Oil fell below $94 a barrel, while nagging fears that a credit market squeeze will sap global growth weighed on the dollar and the region's exporters (RTRS) At 0625 crude was trading 93.86 down 56c. The FT runs the headline 'Opec to discuss rise in output' citing that the cartel will look at all information available after prices fell more than $3 a barrel yesterday.

    OPEC's President and the Saudi oil minister said that oil markets were well supplied and that high oil prices were unjustified, as they steered clear of saying whether OPEC would raise output next week (RTRS)

    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’.

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