********** Greece **********
Greece’s Prime Minister Cancels US Trip, Says Second Rescue Package Is At Stake. Papandreou, who had left for London en route to New York, then returned to Greece on Saturday night.
Venizelos Says Greece Needs to Show Determination to Partners. SAYS PRIMARY SURPLUS WILL SHIELD COUNTRY, MUST PRODUCE PRIMARY SURPLUS AS SOON AS POSSIBLE
Venizelos Says Greek Government Prepared for ‘Serious’ Decisions. “The situation is serious in the sense that we need to take serious, definitive and complete decisions.”. Papandreou’s return to Athens “isn’t due to the fact there is an economic risk or some extraordinary economic event but to the fact that now is the time to take the necessary political, legislative, organisational and administrative initiatives”
Greek FinMin to have teleconference with troika heads on Monday.
Greek Private Rollover Involvement May Miss Target
Greece May Tap Bank Fund,, citing senior Greek goverment offficial. “The next loan tranche was supposed to be in September, but has been delayed. Cash is tight and we may have to tap the Financial Stability Fund for the banks until the loan resumes,” unidentified official told DJ.
Greek Minister Mulls Bank Based on KfW, Spiegel Says
********** comments on Greece **********
Ex-IMF Chief Strauss Kahn: Greece Unable To Pay Debt, Loss Unavoidable, Says Everyone Must Accept Losses on Greece
Irish MoF Noonan Says He Expects Greece to Get Next Payment, Dodge Default
Salgado Says EU Finance Chiefs Didn’t Consider Greek Default.
********** Germany **********
Schaeuble Says There Will Be No Economic Stimulus Programs
Schaeuble Says Monetary Policy Can’t Solve Real World Problems
Germany Rejects Using ECB to Lift EFSF Rescue-Fund Firepower.
Weidmann Says EFSF Shouldn’t Refinance Itself Through ECB
Merkel’s Party Defeated in Berlin as SPD Retains City-State
********** Italy **********
Berlusconi May Consider Early Election in 2012, Repubblica Says
Moody’s Investors Service is continuing its review for possible downgrade of Italy’s Aa2 local and foreign currency government bond ratings. The main drivers that prompted the rating review are:
(1) Economic growth challenges
(2) Implementation risks surrounding the fiscal consolidation plans
(3) Risks posed by changing funding conditions
In light of the increasingly challenging economic and financial environment and fluid political developments in the euro area, Moody’s is continuing to evaluate Italy’s local and foreign currency bond ratings in the context of the risks identified. Moody’s will strive to conclude the review within the next month. {NSN LRMVPV3PWT1D<GO>}
********** Ireland **********
Ireland Considers Asking EFSF to Buy Its Bonds, Noonan Says
Ireland May Use State Companies’ Profits to Fund Jobs
Ireland May Drop Anglo Irish Bondholder Loss Plan, Noonan Says.
********** Rest of Europe **********
EU Ministers Sign Off on Tougher Budget Rules
France’s Baroin Says EFSF Fund Will Be Operating by Mid-October
France’s Baroin Says EU Seeking ‘Technical Solution’ to Collateral Issue
EU’s Rehn Says Madeira Debt Reporting News ‘Less Than Welcome’
BOE Dale: QE1 Had Significant Economic Effects
********** Banks **********
Global Banks ‘Quietly’ Lobby BRICs for EU20 Billion for Greece
Netherlands Plan to Cut Stake in Banking Industry May Be Delayed
Volcker Rule May Extend to Foreign Banks Operating in U.S.
********** US **********
Geithner warns EU of ‘catastrophic risk’. FT
Geithner Proposed Scheme to Beef Up Eurozone Bailout Fund By Drawing on ECB Money
********** Markets **********
US Tsy Futures: COT Lg Spec Add To 10Y Shorts Pd End 09/13/11. speculators added -46,949 new shorts in the 10-year sector for a new net short of -82,901. This suggested the group was caught offsides into this week’s rally. Meanwhile in the 2-year note, large specs reduced shorts by +29,837 to a new net short of -4,206. In the 5-year note, large specs cut longs by -12,549 to a new net long of +266,944
********** Extra **********
Greece Weather Monday: Fair turning stormy. – Sudden change in weather in the afternoon with a drop in temperatures in most parts of the country is forecast for Monday. The change will initially affect the northwestern parts with heavy storms during the night. Winds will be variable and wind velocity will reach 7 on the Beaufort scale. Temperatures in the north will range from 13C to 35C.
Societe Generale
Research & Analytics