TOP
ECB rate decision today. Over the past week, analysts have scaled back rate expectations after Trichet has on a number of occasions noted that they can keep standard and non-standard measures separate, raising expectations for additional non-standard measures. These could include resuming the covered bond purchases, introducing a 12m LTRO or cutting the deposit facility. {http://bit.ly/q0ZUAs}
With European govs seemingly ready to move to stabilise banks, The Times writes global sovereign wealth funds could soon move to pick up bargains, as several banks are trading at big discounts to book values.
(BN) *FRANCE IS WORKING ON PLAN TO TAKE STAKES IN BANKS, FIGARO
SAYS {http://www.lefigaro.fr/conjoncture/2011/10/05/04016-20111005ARTFIG00635-paris-prepare-un-plan-pour-aider-ses-banques.php}
Talks between the Troika and the Greek government are at a standstill, eKathimerini reports. {http://bit.ly/p0BQTt} Whilst a senior Troika official said that Greece must prove it can implement reform before receiving its next tranche of aid. {http://reut.rs/pABiam}
Apple Inc. says co-founder and former CEO Steve Jobs has passed away. {http://bit.ly/rjBWXX} {http://reut.rs/ruSzIu}
The White House on Wednesday edged closer to criticizing proposed legislation to punish China for undervaluing its currency, saying it might contravene international law. {http://on.ft.com/otHJzn}
EUROPE
The European Banking authority has started to re-examine the strength of the region’s banks, modeling a big write-down of all peripheral EZ sovereign debt. {http://on.ft.com/qC5H7y}
The WSJ moves on from the comments Weds from IMF’s Borges and notes IMF staff have floated variations of the ideas mention in the past. However, as the WSJ says, the ideas failed to gain traction from the US or other major shareholders. {http://on.wsj.com/oEXoCl}
The SNB’s report on foreign-currency reserves today will mask how much money it spent to keep the franc capped against the euro to protect exports and fight the threat of deflation.
Moody’s three-notch downgrade of Italy’s sovereign rating is increasing the pressure on Italian PM Berlusconi, the FT says. {http://on.ft.com/qy2Mhe}
In an interview with the FT, Irish Deputy PM Gilmore says Ireland should be able to tap the EFSF in order to reduce the cost of its bank bailouts. {http://on.ft.com/p9SAjn}
Britain must help the EZ in its hour of need but must also aim to claw back powers from the EU, says Hague. {http://reut.rs/oJWa7B}
Cameron warns that Britain faces a long road back to prosperity and promises to stick to austerity plan. {http://reut.rs/paZjLu}
US
US:GEITHNER: A SEVERE EU CRISIS WOULD DAMAGE GROWTH WORLDWIDE
GEITHNER: EUROPE WELCOME’S SUPPORT, ADVICE FROM U.S
GEITHNER:DON’T WANT TO SEE EU WEAKENED BY A PROLONGED CRISIS
GEITHNER: EXPECT GOING TO SEE EU AUTHORITIES ACT DECISIVELY
GEITHNER: REPEATS: EU HAS FINANCIAL RESOURCES TO TACKLE CRISIS
Thousands marched through Manhattan yesterday protesting against what they described as Wall Street’s impunity and the US gov’s intimate relationship with corporate America. {http://on.ft.com/p8tXCc}
The market value of US Reits were hit hard as concerns grew that EZ worries could further affect their sources of funding. {http://on.ft.com/opyhwt}
Senate Democrats proposed a 5.6% surtax on people earning more than $1 million a year to pay for the $447 billion cost of Obama’s job-creation bill, in a move designed to shore up their party’s support for the measure. {http://online.wsj.com/article/SB10001424052970203476804576612930412626412.html?mod=WSJ_WSJ_US_News_5}
Sarah Palin, the former Alaska governor, said that she would not seek the Republican nomination for president, a further sign that the GOP field for 2012 is set. {http://online.wsj.com/article/SB10001424052970203388804576613531624627852.html?mod=WSJ_Election_MIDDLEFourthStories}
ASIA
Singapore has asked the WTO to explore new ways to overcome issues causing a logjam in world trade talks, known as the Doha Developmental Agenda (DDA), Channel News Asia reports. {http://bit.ly/rqxt4i}
The death toll in Thailand’s worst floods in five decades rose to 244 and threatened to disrupt operations of automakers that use the Southeast Asian country as a production base. {http://buswk.co/oM1ama}
South Korea top retailers September sales growth at worst since February – Fin min. {http://reut.rs/pv0nFQ}
Asian shares rose for the first time in five days as exporters and commodity producers were buoyed by better than expected US economic data. {http://on.ft.com/q6vFus}
Fears of an economic slowdown in China have fuelled a surge in CDS prices. {http://on.ft.com/oHt4jn}
India has launched what it says is the world’s cheapest touch-screen tablet computer, priced at just $35. {http://bbc.in/oyUrLf}
CORPORATE
Microsoft is set to win Brussels approval for its planned $8.5bn (€5.9bn) acquisition of Skype. {http://on.ft.com/pdkuf1}
Microsoft is considering a bid for Yahoo which already has several potential suitors. {http://reut.rs/n1klM3}
The business heads in charge of the UBS unit where the bank’s $2.3bn alleged rogue-trading scandal took place have resigned. {http://on.ft.com/pCQlWv}
Whilst the Times notes UBS have suspended 8 employees Weds, as it attempts to move past the recent “rouge trader” scandal.
OTHER MARKETS
Equities: The S&P Dec contract was last trading down 1.0 points at 1134.0, while the Nasdaq Dec contract was down 12.5 points at 2155.0, weighed in part by Apple. Nikkei 8502 (+1.4%), HangSeng 16951 (+4.3%), S&P/ASX 200 index 4069 (+3.6%), Shanghai SE Composite 2360 (-0.2%), Kopsi 1725 (+3.5%)
Treasuries: Another burst of dip-buying from Asian names helped USTs edge higher in Asian trade, with light buying seem from both retail accounts and hot money names. 2 yr US Treasuries at 0.251 (-1.5%), 10yr at 1.884 (-0.2%)
Commodities: Crude futures are modestly lower in Asian trade Thursday, although off the lows and largely consolidating the previous day’s gains. The front-month WTI contract was last down 10 cents at $79.58, having touched a low at $79.43. Brent crude last at 102.36 (-0.4%) and WTI at 79.48 (-0.25%). Gold last trades at 1646 (+0.3%) and Silver at 30.385 (-0.2%)
COMING UP TODAY( times GMT/ET)
0700/0300 Spain Aug industrial output
0700/0300 UK Sep-11 Halifax House Price Index
0730/0330 UK Sep-11 UN FAO Food Price Index
0800/0400 UK Sep-11 SMMT New Car Registrations
0830/0430 UK Q2-11 BOE Housing Equity Withdrawal
0830/0430 UK Jul Index of Services
0900/0500 Germany’s DIW economic research institutes releases new growth forecasts, in Berlin
1000/0600 Germany Aug-11 manufacturing orders
1100/0700 UK Oct-11 BOE MPC Interest Rate Decision
– France E6.5-E7.5 bln 3.75% Apr 2017 OAT Tap
– France ” 4.00% Apr 2018 OAT Tap
– France ” 3.25% Oct 2021 OAT Tap
– Spain E3.5-E4.5 bln 3.40% Apr 2014 Bono Tap
– Spain ” 3.30% Oct 2014 Bono Tap
– Spain ” 3.00% Apr 2015 Bono Tap
– Spain Tesoro to make announcement on issuance
1100/0700 Brazil Sep-11 FGV IGP-DI price index, IPA-DI producer prices, IPC-DI consumer prices
1145/0745 ECB announces rate decision
1230/0830 ECB President Jean-Claude Trichet holds press
conference following rate decision, in Berlin
1230/0830 Canada Aug-11 Building permits
– US Sep-11 Store Sales
1230/0830 US 01-Oct Jobless Claims
1330/0930 IMF regular biweekly briefing in Washington.
1345/0945 US 02-Oct Bloomberg Comfort Index
1400/1000 Insee, IFO, ISAE 4Q Eurozone economic outlook
1400/1000 US Treasury Secretary Tim Geithner presents FSOC report to Senate Banking Committee.
1400/1000 Canada Sep-11 Ivey Purchasing Mgrs Index
1430/1030 US 30-Sep EIA Natural Gas Stocks
1500/1100 German Chancellor Angela Merkel, German Finance Minister Wolfgang Schaeuble, French Finance Minister Francois Baroin, ECB president Jean-Claude Trichet, IMF managing director Christine Lagarde, World Bank president Robert Zoellick, OECD secretary general Angel Gurria, joint press conference on improving the international currency system, in Berlin
1800/1400 US Treasury Secretary Tim Geithner presents FSOC
report to House Financial Services Committee.
1900/1500 US Sep-11 Treasury STRIPS
2000/1600 France Oct-11 Insee economic outlook
2030/1630 US 26-Sep Money Supply (M2)
HSBC Global Research