Treasurys End Best Year In Three On A High Note
Treasury prices rose slightly on Friday, pushing 10-year yields further under 2%, with some month-end buying and lingering worries about European debt providing support at the end of the best year for U.S. government bonds since 2008.
http://jlne.ws/tFkDk1
Tenth guilty plea in municipal bond indictments
USA Today
A politically connected financial firm and its founder pleaded guilty Friday to taking part in fraud and bid-rigging conspiracies related to the municipal bond business.
http://jlne.ws/tZI2Ie
Fed to buy about $45 billion longer-term Treasuries in January and sell about $44 billion short-end
http://jlne.ws/hp922J
Foreign Central Banks Cut US Treasuries
FT.com
Holdings of US Treasuries by foreign central banks has fallen by a record amount over the past four weeks according to the latest Federal Reserve data. The net $69bn drop in Treasury holdings registered at the Fed by foreign official institutions comes as benchmark yields ended 2011 near record low levels and when the US central bank is conducting Operation Twist, its $400bn programme to sell shorter-lived Treasury bonds and buy those with longer maturities.
http://jlne.ws/uN1S2Y
Confetti drop closes bond trade on the floor for 2011
http://jlne.ws/tG0lqN
Muniland’s public officials are clueless, not corrupt
http://jlne.ws/rM8oTA
HSBC's Sale of Thai Unit Shows Priority Is Scale, Not Geography
BusinessWeek
HSBC Holdings Plc's effort to sell its retail bank in Thailand, a market it entered more than a century ago, marks a shift toward larger-scale operations as the bank sells assets to bolster its capital base.
http://jlne.ws/uvEO7J
UBS Said to Plan Sale of Covered Bonds Backed by Prime Swiss Home Loans
Bloomberg
UBS AG (UBSN) hired banks for a planned sale of covered bonds denominated in euros and backed by prime Swiss residential mortgages, according to a banker and investor familiar with the matter.
http://jlne.ws/uTUlwT
Bank regulation battle focuses on liquidity
By Brooke Masters, Chief Regulation Correspondent - Financial Times
When UK regulators pressed ahead last year with requirements for banks to hold a buffer of easy-to-sell assets against a potential market crisis, bankers in London made no bones about their unhappiness.
http://jlne.ws/vQLW0Z
It's time for the IMF to stand up to the European bullies
Mohamed El-Erian - Financial Times
Sovereign risk was a principal theme in 2011 most visibly in Europe and, to a lesser extent, in America's loss of its triple A rating. Along with poor growth and rising inequality, it will continue to raise serious questions next year about the functioning of the global economy. As this occurs, one institution - the International Monetary Fund - will attract special attention. The key question is whether it can finally step up to the role of global conductor, rather than suffering yet more erosion of its credibility.
http://jlne.ws/sL90m0
IMF Warned Greece on Debt Levels
By IAN TALLEY And COSTAS PARIS - WSJ
WASHINGTON—The International Monetary Fund recently told the Greek government that a worsening economic outlook suggests the beleaguered nation may be unable to reduce its debt to sustainable levels even with a planned 50% write down in privately-held Greek government bonds, according to two officials familiar with the conversations.
http://jlne.ws/tXkkal
Berkowitz Loses Again as Sears Drop Adds to Failed Bank Bets
BusinessWeek
Bruce Berkowitz, whose $8 billion Fairholme Fund is suffering its worst year on record because of wrong-way bets on financial firms, may have lost $203 million today on Sears Holdings Corp., the third-largest investment of his flagship fund.
http://jlne.ws/vBaNuP
FSOC Proposes Dodd-Frank Rule on Assessments for Treasury
Bloomberg BusinessWeek
The Financial Stability Oversight Council, a group of regulators charged with preventing a financial crisis, approved a proposal today outlining how the U.S. Treasury’s assessment fee would be administered.
http://jlne.ws/syuDvh
Spain unveils tax hikes
the Globe anf Mail
Spain’s new government said on Friday the public deficit for 2011 would come in at 8 per cent of gross domestic product, well above a target of 6 per cent, and announced income and property tax hikes and a civil servant wage freeze in response.
http://jlne.ws/t0sIBV
Pimco's El-Erian: IMF Must 'Find Courage to Resist European Bullying'
NewsMax.com
The International Monetary Fund (IMF), a multilateral lender of last resort, is known for imposing tough economic measures on the countries it has assisted in the past.
http://jlne.ws/tx4CKm
Who Really Needs the CFPB? Not Consumers - American Banker
Has the Consumer Financial Protection Bureau, with over 500 employees and growing like cancer, actually protected any consumers yet? Well, next best thing. It garners headlines nearly daily in lobbying to gain full powers by getting Cordray confirmed. Dodd-Frank says the CFPB must have a confirmed director to fire from all barrels.
http://jlne.ws/tuFEdz
Spain’s yields are actually down from a year ago
For all the flailing about yields for Spain potentially reaching unsustainable levels, yields on its benchmark 2- and 10-year notes are actually down slightly from a year ago. Italy’s are still up, though off their highs.
http://jlne.ws/syumke
Jumat, 30 Desember 2011
Kamis, 29 Desember 2011
December 29, 2011: Federal Government Near Borrowing Limit - To Request Another $1.2 Trillion In Borrowing Authority [Newsletter]
December 29, 2011
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starter
*CN: Since we are, technically speaking, still in the 12 days of Christmas...
FEDERAL RESERVE'S LACKER: BANKING AND COMMUNITIES - A CLASSIC
‘Tis the season. We Americans do it every year.
This month, millions of us will gather around our television sets, settle into armchairs or sofas, curl up under blankets … and learn a little bit about banking. We seem to take an interest in it each December.
Of course, it might have something to do with the fact that this primer on banking is a movie classic called “It’s a Wonderful Life.” Basic banking is the foundation of our economy, but it’s based on a potentially fragile business model. Banks use the money their customers deposit into savings and checking accounts to make loans to other customers. While depositors can rightfully demand their money from the banks at any time, banks generally can’t do the same to their borrowers or can do so only at considerable cost. And because banks lend out their depositors’ money, they don’t have a lot of cash lying around, which means that, in a crisis, when all of their depositors show up at once demanding all the money in their accounts, banks are stuck.
“It’s a Wonderful Life” depicts this when George Bailey has to explain to the panicked depositors of the Bailey Building and Loan Association that their money isn’t available for immediate withdrawal. When they got shares in the Building and Loan, their money was instead invested in their neighbors’ homes.
“You’re thinking of this place all wrong,” George explains to the gathered crowd. “As if I had the money back in a safe. The money's not here. Your money's in Joe's house ... that's right next to yours. And in the Kennedy House, and Mrs. Macklin's house, and, and a hundred others.”
When this happens to one depository institution, like a bank or the Building and Loan, it's a run. When it happens to many at once, it's a panic. The Building and Loan survives this particular panic because George remains committed to his depositors. He understands the community they share, and he knows that their survival depends on stable growth over the long run. George’s connections to the community allow him to convince his depositors that, although the Building and Loan is short of cash at the moment, it’s still fundamentally sound.
This kind of connection to community bolsters banks. As the president of a Federal Reserve Bank, I think about this a lot because connection to community is what makes Reserve Banks unique.
Discussions about what a Reserve Bank is often get muddled because of widespread misconceptions of the Federal Reserve. When most people think of the Fed, they probably think of a government agency run from the nation’s capital. In the Fed’s case, they’d be half right; the Board of Governors is indeed an independent federal agency in Washington.
See Lacker's entire holiday speech here.
Lead Stories
Federal Government Near Borrowing Limit - To Request Another $1.2 Trillion In Borrowing Authority
USA Today
The Obama administration says the federal government has nearly reached its borrowing limit — again. Treasury officials said Tuesday that the White House plans to request another $1.2 trillion in borrowing authority Friday. The increase is necessary, they say, because the government will be within $100 billion of its current limit by then. In the past, such a request would be routine. But this one follows a summer of intense partisan debate over the nation's record debt, which has yet to end despite a last-minute deal reached in August that averted a potential default.
http://jlne.ws/t6NYeO
** CN: The increase would boost the debt limit to $16.4 trillion.
Fed calls it quits on 'twist' for year
Chicago Tribune
The Federal Reserve isn't scheduled to buy Treasury securities Thursday for its latest stimulus plan that extends the average maturity of the U.S. government debt sitting on its balance sheet.
http://jlne.ws/rF0EPX
Fed Seeks to Curb Repo Market Risk
CNBC
An industry task force sponsored by the US Federal Reserve is working on a plan to scale back systemic risk in the funding market at the center of the financial crisis and to reduce trader dependence on JPMorgan Chase and Bank of New York Mellon.
http://jlne.ws/t19PlR
Federal Reserve Balance Sheet Shrinks $31 Billion In November
Nasdaq
http://jlne.ws/tALslw
Obama nominates 2 to Federal Reserve Board
CBS News
Obama nominated a Harvard professor and a former Treasury official under Pres. George H.W. Bush to the Federal Reserve Board
http://jlne.ws/u2vNFY
Fed Nominee Jeremy Stein 'Could Shutter The US Financial Services Industry' If He Gets His Way
Business Insider
Jefferies strategist David Zervos takes aim at Harvard professor and Federal Reserve Board nominee Jeremy Stein in his latest note today, and it's not pretty.
http://jlne.ws/u5CekW
ECB's Visco hints at lower rates if economy worsens
Reuters via Yahoo! News
MILAN (Reuters) - European Central Bank Governing Council Member Ignazio Visco said in a newspaper interview on Saturday that the bank will be attentive to the economic cycle when setting monetary policy, suggesting rates could fall more if the euro zone economy worsens.
http://jlne.ws/rZUAqA
ECB Nowotny Says Price Stability Top Priority
Nasdaq
http://jlne.ws/vtIhHN
ECB Overnight Deposits Fall Back From Record High
Nasdaq
http://jlne.ws/ruZSH7
Solid Italian bond auction
Associated Press via Yahoo! Finance
A pair of successful bond auctions that raised $14 billion for Italy forced down the interest rate the country pays on its debt and boosted European markets on Wednesday.
http://jlne.ws/rw9J27
Italy seeks bigger euro fund
Reuters via Yahoo! News
MILAN/ROME (Reuters) - Italy's PM called for significantly more firepower for the euro zone's bailout fund after a bond auction did little to ease concerns over how the country would finance public spending in the next few months.
http://jlne.ws/ur1Otb
Italy's Monti warns of ongoing market turbulence
Associated Press via Yahoo! Finance
Italy's borrowing costs fell for a second day Thursday but the country's new premier said his government has more to do before it convinces financial markets it can manage the heavy debts that have made ...
http://jlne.ws/ufdpi9
Bernanke may offer more news briefings
Pittsburgh Post-Gazette
Federal Reserve Chairman Ben S. Bernanke could double press briefings to improve understanding of policy changes that may include signaling interest rates will stay near zero longer, economists said. Adding briefings "is a viable option because Bernanke has been an effective communicator" of policy aims, said Sam Bullard, senior economist at Wells Fargo Securities.
http://jlne.ws/toU8JD
Bernanke may double press briefings
Crain's New York Business
(Bloomberg) - Federal Reserve Chairman Ben Bernanke could double press briefings to improve understanding of policy changes that may include signaling interest rates will stay near zero longer, economists said. Adding briefings "is a viable option because Mr. Bernanke has been an effective communicator" of policy aims, said Sam Bullard, senior economist at Wells Fargo Securities.
http://jlne.ws/uvz3fC
Bernanke Money Policy Seen Successful as Savers Become Consumers
BusinessWeek
Federal Reserve Chairman Ben S. Bernanke finally may be catching a break: His easy-money policies are showing signs of speeding up the economic rebound three years after he cut interest rates to zero.
http://jlne.ws/tocPhI
Bernanke Drive for Openness May Include More Briefings: Economy
BusinessWeek
Federal Reserve Chairman Ben S. Bernanke could double press briefings to improve understanding of policy changes that may include signaling interest rates will stay near zero longer, economists said.
http://jlne.ws/rYNky0
Ex-Fed Official Accuses Bernanke of "Covert Bailout" of European Banks
International Business Times
The Federal Reserve, led by Chairman Ben Bernanke, has engaged in a "covert bailout" of European banks, according to ex-Fed vice president Gerald P.
http://jlne.ws/t1nyd6
Did Bernanke protect the U.S. from the euromess?
Washington Post
So far, American banks have largely managed to avoid catching the contagion of the Eurozone debt crisis. That's partly because there's little direct exposure to the banks in the most distressed countries. But there are other big reasons behind the U.S. banks' relative health, as the Economist points out.
http://jlne.ws/rXa1jz
Feds: MF Global improperly moved customer money
Post-Bulletin
WASHINGTON - Federal authorities investigating the demise of MF Global think that the firm began improperly moving customer money to a middleman on Oct. 27, according to people briefed on the matter. The
http://jlne.ws/uFRlkR
Clearing in spotlight after MF Global debacle
Reuters via Yahoo! News
LONDON (Reuters) - The collapse of U.S. futures brokerage MF Global has brought to light inconsistencies in the way clearing houses operate, prompting questions over regulatory plans to use more of these platforms to make markets safer.
http://jlne.ws/w1iZ0m
Regulators Extend Comment Period on Volcker-Rule Proposal
BusinessWeek
U.S. regulators will extend the comment period for the so-called Volcker rule, giving lawmakers and banks more time to seek changes in the proposed proprietary trading ban required by the Dodd-Frank Act.
http://jlne.ws/tGwRxv
U.S. Savings Bonds Going Electronic After Dec. 31; Will Save Taxpayers $120 Million Over Five Years
Cordele Dispatch
The U.S. Department of the Treasury reiterates that paper U.S. Savings Bonds are going electronic after Dec. 31 - a move that will save taxpayers $120 million over five years.
http://jlne.ws/vlYJVD
The U.S. Treasury Says China's Not Manipulating Its Currency
The Atlantic Wire via Yahoo! News
The U.S. Treasury Department issued a report Tuesday saying they would not refer to China as a "currency manipulator," despite widespread claims that the Chinese government keeps the value of the yuan artificially low.
http://jlne.ws/vLMkV6
Pimco Forecasts U.S. May Stagnate Amid Data Showing Growth
BusinessWeek
Pacific Investment Management Co., whose largest fund is suffering its worst year on record after Bill Gross's failed bet against Treasuries, said the U.S. may stagnate next year, a view at odds with recent data signaling continued growth.
http://jlne.ws/u4nVlJ
Payroll tax cut may hurt housing market
Los Angeles Times
To pay for the two-month payroll tax cut, a small fee will be levied for a decade on all mortgages sold to Fannie Mae and Freddie Mac. That also makes it harder to overhaul the housing finance system.
http://jlne.ws/u7zpj6
Housing And Banking Are Key To 2012 Markets
Forbes
I follow the U.S. Capital focusing on U.S. Treasuries, Comex gold, Nymex Crude Oil, the euro versus the U.S. sollar, and the major U.S. equity averages. I view myself as an expert on monetary policy, the housing market, and the banking system with my unique dissection of the FDIC Quarterly Banking Profile.
http://jlne.ws/so3Tdg
Eurozone faces tough hurdles early in 2012
Associated Press via Yahoo! News
After a turbulent 2011, the 17 countries that use the euro will be quickly confronted in the new year with major hurdles to solving their government debt crisis, just as the eurozone economy is expected to sink back into recession.
http://jlne.ws/rvX54n
Banks still waiting on most Dodd-Frank rules
Washington Post
A year and a half has gone by since the Dodd-Frank financial reform act was signed into law, but barely a quarter of the rules in the legislation have been finalized, though federal regulators are rolling out key components of the bill.
http://jlne.ws/u6TCx6
These 5 Countries Should See GDP Growth Heat Up In 2012
Business Insider
Morgan Stanley's Global Economics Research team led by Joachim Fels recently cut its 2012 GDP growth outlook from to 3.5%, as the world continues to decelerate from an estimated 3.9% growth in 2011 and 5.2% growth in 2010.
http://jlne.ws/w4TZwr
Events
Fixed Income Markets 2012
January 24, 2012
Tabb Forum Looks At Changes Ahead And Staying Ahead In Fixed Incomes
http://jlne.ws/snQ3VO
Treasury Futures: Using International Fixed-Income and Money Market Spreads
January 31, 2012
The IFM Instructs On Using Fixed Income And Money Market Spreads
http://jlne.ws/u7MgUK
National Association of Home Builders' Show
February 10, 2012
Special Session With Fed's Bernanke Open To All Registered Attendees
http://jlne.ws/tEcqjW
Economic News
Weekly Jobless Claims Drift Higher; Still Below Key Level
CNBC
New claims for unemployment benefits rose more than expected last week, but the underlying trend continued to point to improving labor market conditions.
http://jlne.ws/s0LJXB
Home Prices in 20 U.S. Cities Decrease More Than Forecast
BusinessWeek
Residential real estate prices dropped more than forecast in the year ended October, showing a broad-based decline that indicates the U.S. housing market continues to be weighed down by foreclosures.
http://jlne.ws/uD0Tfc
Germany’s annual inflation rate seen dropping to 2.1 percent in December
An official estimate shows that the year-on-year inflation rate in Germany, Europe’s biggest economy, declined to 2.1 percent in December. The figure reported Thursday by the Federal Statistical Office compares with a 2.4 percent year-on-year increase in consumer prices in November. The office says inflation this year has been driven largely by energy and fuel prices, but gave no reason for the dip in December.
http://jlne.ws/u6UGw1
**CN: Data from Germany are important as the ECB decides if it should cut interest rates for the eurozone.
Swiss KOF at Two-Year Low Signals Deeper Slowdown: Economy
BusinessWeek
Switzerland's forward-looking economic indicator fell to the lowest in more than two years in December, adding to signs of a deepening slowdown.
http://jlne.ws/tErNZT
Exchanges, Clearing Houses & MTFs
U.S. Clears NYSE-Deutsche Boerse Deal With Direct Edge Sale
BusinessWeek
NYSE Euronext's acquisition by Deutsche Boerse AG was cleared by the U.S. Department of Justice, putting the transaction in the hands of European antitrust authorities who have resisted approval.
http://jlne.ws/v3tmxk
Firms & Banks
Goldman Rethinks Business Model
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage. NEW YORK (Trefis) -- Goldman Sachs has been forced to rethink its business model, as it has come under fire from regulators of late.
http://jlne.ws/s3eeqz
Pinnacle Financial Redeems 25 Percent of Its Preferred Shares Held by U.S. Treasury
Business Wire via Yahoo! Finance
Pinnacle Financial Partners, Inc. announced that earlier today it redeemed 25 percent of the preferred shares the Company originally issued to the U.S. Treasury under the TARP Capital Purchase Program.
http://jlne.ws/sEHqZj
Unleashed, MetLife tells Ben: Take a walk
New York Post
Snoopy doesn't like walking on Ben Bernanke's tight leash. MetLife - which uses the spunky comic-strip beagle as its corporate mascot - said it is so fed up with the heavy hand of Bernanke's Federal Reserve regulators that it is getting out of the banking business.
http://jlne.ws/uckcti
Goldman Negotiates with Heungkuk
Zacks via Yahoo! Finance
On Wednesday, South Korean insurer-Heungkuk Life Insurance Co. withdrawn the case filed against New York-based The Goldman Sachs Group Inc. earlier this year.
http://jlne.ws/ue81C3
Peoples Bancorp To Repurchase $18 Mln Of $39 Mln Received Under The TARP Capital
Nasdaq
http://jlne.ws/rQJtIN
Global News
IMF boosts Canada outlook for 2011
AFP via Yahoo! News
The International Monetary Fund on Thursday slightly raised its 2011 outlook for the Canadian economy.
http://jlne.ws/tugvPe
Vietnam Growth Holds Near 6% as Higher Rates Counter Exports
BusinessWeek
Vietnam's growth held near 6 percent this quarter, reducing the pressure for further monetary tightening after higher interest rates limited the boost to the economy from exports and domestic consumption.
http://jlne.ws/sVTT5h
Food Inflation Rate in India Falls to Lowest Level in at Least Five Years
Bloomberg
India's food inflation rate fell to the lowest level in at least five-and-a-half years, increasing the scope for the central bank to cut interest rates after it halted a record pace of monetary tightening.
http://jlne.ws/sOPa7o
Serbia Has Room to Cut Rates, Central Bank Chief Soskic Says
BusinessWeek
Serbian central bank Governor Dejan Soskic said policy makers may be in a position to cut borrowing costs in the first half to help foster economic growth because inflation will continue to slow.
http://jlne.ws/vhKgYO
RBS' future as murky as a Scottish loch
Connecticut Post
Uncertainty will hang over the Royal Bank of Scotland's Connecticut operations for possibly years while the U.K. government figures out how to recoup a $69 billion bailout of the institution.
http://jlne.ws/slZvtz
Greek PM pledges 150,000 new jobs in early 2012
Associated Press via Yahoo! News
Greece's interim coalition government pledged Wednesday to create 150,000 new jobs in the first quarter of 2012 and boost welfare programs, seeking to alleviate the effects of an acute financial crisis that has sent unemployment soaring amid a deep recession.
http://jlne.ws/sajDmb
Thai Ministry Of Finance: 4Q GDP Likely To Shrink 5% On Year
Nasdaq
http://jlne.ws/w49Oo6
Zambia CPI slows, 2011 GDP growth seen lower
Reuters via Yahoo! News
LUSAKA (Reuters) - Zambia's consumer inflation slowed sharply in December on lower food prices while economic growth was seen down in 2011 compared with last year due to decreased output from mining in Africa's largest copper producer, the Central Statistics Office said on Thursday.
http://jlne.ws/tarlJl
Unemployment surge hits Sarkozy re-election hopes
AFP via Yahoo! News
French President Nicolas Sarkozy's re-election hopes have been hit by new figures showing unemployment at a 12-year high amid an austerity drive that leaves him little room to manoeuvre.
http://jlne.ws/tFBIJs
Egypt cbank to offer 22 bln Eg pounds in repos
Reuters via Yahoo! News
CAIRO (Reuters) - Egypt's central bank said it would offer 22 billion Egyptian pounds in seven-day repurchase agreements in the money market on Tuesday at a fixed rate of 9.75 percent.
http://jlne.ws/uOpmFv
Chilean Interbank Rates Jump Even After Central Bank Acts to Add Liquidity
Bloomberg
Chilean short-term bank borrowing costs continued to rise today even after the central bank announced an extra liquidity package aimed at bringing rates down.
http://jlne.ws/tROq7P
Disclaimer: The John Lothian, Environmental Markets, JLN Metals, JLN Managed Futures, JLN Interest Rates, JLN Options and JLN FX newsletters and blogs and MarketsWiki are products of John J. Lothian & Company, Inc. The opinions expressed in these publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
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JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starter
*CN: Since we are, technically speaking, still in the 12 days of Christmas...
FEDERAL RESERVE'S LACKER: BANKING AND COMMUNITIES - A CLASSIC
‘Tis the season. We Americans do it every year.
This month, millions of us will gather around our television sets, settle into armchairs or sofas, curl up under blankets … and learn a little bit about banking. We seem to take an interest in it each December.
Of course, it might have something to do with the fact that this primer on banking is a movie classic called “It’s a Wonderful Life.” Basic banking is the foundation of our economy, but it’s based on a potentially fragile business model. Banks use the money their customers deposit into savings and checking accounts to make loans to other customers. While depositors can rightfully demand their money from the banks at any time, banks generally can’t do the same to their borrowers or can do so only at considerable cost. And because banks lend out their depositors’ money, they don’t have a lot of cash lying around, which means that, in a crisis, when all of their depositors show up at once demanding all the money in their accounts, banks are stuck.
“It’s a Wonderful Life” depicts this when George Bailey has to explain to the panicked depositors of the Bailey Building and Loan Association that their money isn’t available for immediate withdrawal. When they got shares in the Building and Loan, their money was instead invested in their neighbors’ homes.
“You’re thinking of this place all wrong,” George explains to the gathered crowd. “As if I had the money back in a safe. The money's not here. Your money's in Joe's house ... that's right next to yours. And in the Kennedy House, and Mrs. Macklin's house, and, and a hundred others.”
When this happens to one depository institution, like a bank or the Building and Loan, it's a run. When it happens to many at once, it's a panic. The Building and Loan survives this particular panic because George remains committed to his depositors. He understands the community they share, and he knows that their survival depends on stable growth over the long run. George’s connections to the community allow him to convince his depositors that, although the Building and Loan is short of cash at the moment, it’s still fundamentally sound.
This kind of connection to community bolsters banks. As the president of a Federal Reserve Bank, I think about this a lot because connection to community is what makes Reserve Banks unique.
Discussions about what a Reserve Bank is often get muddled because of widespread misconceptions of the Federal Reserve. When most people think of the Fed, they probably think of a government agency run from the nation’s capital. In the Fed’s case, they’d be half right; the Board of Governors is indeed an independent federal agency in Washington.
See Lacker's entire holiday speech here.
Lead Stories
Federal Government Near Borrowing Limit - To Request Another $1.2 Trillion In Borrowing Authority
USA Today
The Obama administration says the federal government has nearly reached its borrowing limit — again. Treasury officials said Tuesday that the White House plans to request another $1.2 trillion in borrowing authority Friday. The increase is necessary, they say, because the government will be within $100 billion of its current limit by then. In the past, such a request would be routine. But this one follows a summer of intense partisan debate over the nation's record debt, which has yet to end despite a last-minute deal reached in August that averted a potential default.
http://jlne.ws/t6NYeO
** CN: The increase would boost the debt limit to $16.4 trillion.
Fed calls it quits on 'twist' for year
Chicago Tribune
The Federal Reserve isn't scheduled to buy Treasury securities Thursday for its latest stimulus plan that extends the average maturity of the U.S. government debt sitting on its balance sheet.
http://jlne.ws/rF0EPX
Fed Seeks to Curb Repo Market Risk
CNBC
An industry task force sponsored by the US Federal Reserve is working on a plan to scale back systemic risk in the funding market at the center of the financial crisis and to reduce trader dependence on JPMorgan Chase and Bank of New York Mellon.
http://jlne.ws/t19PlR
Federal Reserve Balance Sheet Shrinks $31 Billion In November
Nasdaq
http://jlne.ws/tALslw
Obama nominates 2 to Federal Reserve Board
CBS News
Obama nominated a Harvard professor and a former Treasury official under Pres. George H.W. Bush to the Federal Reserve Board
http://jlne.ws/u2vNFY
Fed Nominee Jeremy Stein 'Could Shutter The US Financial Services Industry' If He Gets His Way
Business Insider
Jefferies strategist David Zervos takes aim at Harvard professor and Federal Reserve Board nominee Jeremy Stein in his latest note today, and it's not pretty.
http://jlne.ws/u5CekW
ECB's Visco hints at lower rates if economy worsens
Reuters via Yahoo! News
MILAN (Reuters) - European Central Bank Governing Council Member Ignazio Visco said in a newspaper interview on Saturday that the bank will be attentive to the economic cycle when setting monetary policy, suggesting rates could fall more if the euro zone economy worsens.
http://jlne.ws/rZUAqA
ECB Nowotny Says Price Stability Top Priority
Nasdaq
http://jlne.ws/vtIhHN
ECB Overnight Deposits Fall Back From Record High
Nasdaq
http://jlne.ws/ruZSH7
Solid Italian bond auction
Associated Press via Yahoo! Finance
A pair of successful bond auctions that raised $14 billion for Italy forced down the interest rate the country pays on its debt and boosted European markets on Wednesday.
http://jlne.ws/rw9J27
Italy seeks bigger euro fund
Reuters via Yahoo! News
MILAN/ROME (Reuters) - Italy's PM called for significantly more firepower for the euro zone's bailout fund after a bond auction did little to ease concerns over how the country would finance public spending in the next few months.
http://jlne.ws/ur1Otb
Italy's Monti warns of ongoing market turbulence
Associated Press via Yahoo! Finance
Italy's borrowing costs fell for a second day Thursday but the country's new premier said his government has more to do before it convinces financial markets it can manage the heavy debts that have made ...
http://jlne.ws/ufdpi9
Bernanke may offer more news briefings
Pittsburgh Post-Gazette
Federal Reserve Chairman Ben S. Bernanke could double press briefings to improve understanding of policy changes that may include signaling interest rates will stay near zero longer, economists said. Adding briefings "is a viable option because Bernanke has been an effective communicator" of policy aims, said Sam Bullard, senior economist at Wells Fargo Securities.
http://jlne.ws/toU8JD
Bernanke may double press briefings
Crain's New York Business
(Bloomberg) - Federal Reserve Chairman Ben Bernanke could double press briefings to improve understanding of policy changes that may include signaling interest rates will stay near zero longer, economists said. Adding briefings "is a viable option because Mr. Bernanke has been an effective communicator" of policy aims, said Sam Bullard, senior economist at Wells Fargo Securities.
http://jlne.ws/uvz3fC
Bernanke Money Policy Seen Successful as Savers Become Consumers
BusinessWeek
Federal Reserve Chairman Ben S. Bernanke finally may be catching a break: His easy-money policies are showing signs of speeding up the economic rebound three years after he cut interest rates to zero.
http://jlne.ws/tocPhI
Bernanke Drive for Openness May Include More Briefings: Economy
BusinessWeek
Federal Reserve Chairman Ben S. Bernanke could double press briefings to improve understanding of policy changes that may include signaling interest rates will stay near zero longer, economists said.
http://jlne.ws/rYNky0
Ex-Fed Official Accuses Bernanke of "Covert Bailout" of European Banks
International Business Times
The Federal Reserve, led by Chairman Ben Bernanke, has engaged in a "covert bailout" of European banks, according to ex-Fed vice president Gerald P.
http://jlne.ws/t1nyd6
Did Bernanke protect the U.S. from the euromess?
Washington Post
So far, American banks have largely managed to avoid catching the contagion of the Eurozone debt crisis. That's partly because there's little direct exposure to the banks in the most distressed countries. But there are other big reasons behind the U.S. banks' relative health, as the Economist points out.
http://jlne.ws/rXa1jz
Feds: MF Global improperly moved customer money
Post-Bulletin
WASHINGTON - Federal authorities investigating the demise of MF Global think that the firm began improperly moving customer money to a middleman on Oct. 27, according to people briefed on the matter. The
http://jlne.ws/uFRlkR
Clearing in spotlight after MF Global debacle
Reuters via Yahoo! News
LONDON (Reuters) - The collapse of U.S. futures brokerage MF Global has brought to light inconsistencies in the way clearing houses operate, prompting questions over regulatory plans to use more of these platforms to make markets safer.
http://jlne.ws/w1iZ0m
Regulators Extend Comment Period on Volcker-Rule Proposal
BusinessWeek
U.S. regulators will extend the comment period for the so-called Volcker rule, giving lawmakers and banks more time to seek changes in the proposed proprietary trading ban required by the Dodd-Frank Act.
http://jlne.ws/tGwRxv
U.S. Savings Bonds Going Electronic After Dec. 31; Will Save Taxpayers $120 Million Over Five Years
Cordele Dispatch
The U.S. Department of the Treasury reiterates that paper U.S. Savings Bonds are going electronic after Dec. 31 - a move that will save taxpayers $120 million over five years.
http://jlne.ws/vlYJVD
The U.S. Treasury Says China's Not Manipulating Its Currency
The Atlantic Wire via Yahoo! News
The U.S. Treasury Department issued a report Tuesday saying they would not refer to China as a "currency manipulator," despite widespread claims that the Chinese government keeps the value of the yuan artificially low.
http://jlne.ws/vLMkV6
Pimco Forecasts U.S. May Stagnate Amid Data Showing Growth
BusinessWeek
Pacific Investment Management Co., whose largest fund is suffering its worst year on record after Bill Gross's failed bet against Treasuries, said the U.S. may stagnate next year, a view at odds with recent data signaling continued growth.
http://jlne.ws/u4nVlJ
Payroll tax cut may hurt housing market
Los Angeles Times
To pay for the two-month payroll tax cut, a small fee will be levied for a decade on all mortgages sold to Fannie Mae and Freddie Mac. That also makes it harder to overhaul the housing finance system.
http://jlne.ws/u7zpj6
Housing And Banking Are Key To 2012 Markets
Forbes
I follow the U.S. Capital focusing on U.S. Treasuries, Comex gold, Nymex Crude Oil, the euro versus the U.S. sollar, and the major U.S. equity averages. I view myself as an expert on monetary policy, the housing market, and the banking system with my unique dissection of the FDIC Quarterly Banking Profile.
http://jlne.ws/so3Tdg
Eurozone faces tough hurdles early in 2012
Associated Press via Yahoo! News
After a turbulent 2011, the 17 countries that use the euro will be quickly confronted in the new year with major hurdles to solving their government debt crisis, just as the eurozone economy is expected to sink back into recession.
http://jlne.ws/rvX54n
Banks still waiting on most Dodd-Frank rules
Washington Post
A year and a half has gone by since the Dodd-Frank financial reform act was signed into law, but barely a quarter of the rules in the legislation have been finalized, though federal regulators are rolling out key components of the bill.
http://jlne.ws/u6TCx6
These 5 Countries Should See GDP Growth Heat Up In 2012
Business Insider
Morgan Stanley's Global Economics Research team led by Joachim Fels recently cut its 2012 GDP growth outlook from to 3.5%, as the world continues to decelerate from an estimated 3.9% growth in 2011 and 5.2% growth in 2010.
http://jlne.ws/w4TZwr
Events
Fixed Income Markets 2012
January 24, 2012
Tabb Forum Looks At Changes Ahead And Staying Ahead In Fixed Incomes
http://jlne.ws/snQ3VO
Treasury Futures: Using International Fixed-Income and Money Market Spreads
January 31, 2012
The IFM Instructs On Using Fixed Income And Money Market Spreads
http://jlne.ws/u7MgUK
National Association of Home Builders' Show
February 10, 2012
Special Session With Fed's Bernanke Open To All Registered Attendees
http://jlne.ws/tEcqjW
Economic News
Weekly Jobless Claims Drift Higher; Still Below Key Level
CNBC
New claims for unemployment benefits rose more than expected last week, but the underlying trend continued to point to improving labor market conditions.
http://jlne.ws/s0LJXB
Home Prices in 20 U.S. Cities Decrease More Than Forecast
BusinessWeek
Residential real estate prices dropped more than forecast in the year ended October, showing a broad-based decline that indicates the U.S. housing market continues to be weighed down by foreclosures.
http://jlne.ws/uD0Tfc
Germany’s annual inflation rate seen dropping to 2.1 percent in December
An official estimate shows that the year-on-year inflation rate in Germany, Europe’s biggest economy, declined to 2.1 percent in December. The figure reported Thursday by the Federal Statistical Office compares with a 2.4 percent year-on-year increase in consumer prices in November. The office says inflation this year has been driven largely by energy and fuel prices, but gave no reason for the dip in December.
http://jlne.ws/u6UGw1
**CN: Data from Germany are important as the ECB decides if it should cut interest rates for the eurozone.
Swiss KOF at Two-Year Low Signals Deeper Slowdown: Economy
BusinessWeek
Switzerland's forward-looking economic indicator fell to the lowest in more than two years in December, adding to signs of a deepening slowdown.
http://jlne.ws/tErNZT
Exchanges, Clearing Houses & MTFs
U.S. Clears NYSE-Deutsche Boerse Deal With Direct Edge Sale
BusinessWeek
NYSE Euronext's acquisition by Deutsche Boerse AG was cleared by the U.S. Department of Justice, putting the transaction in the hands of European antitrust authorities who have resisted approval.
http://jlne.ws/v3tmxk
Firms & Banks
Goldman Rethinks Business Model
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage. NEW YORK (Trefis) -- Goldman Sachs has been forced to rethink its business model, as it has come under fire from regulators of late.
http://jlne.ws/s3eeqz
Pinnacle Financial Redeems 25 Percent of Its Preferred Shares Held by U.S. Treasury
Business Wire via Yahoo! Finance
Pinnacle Financial Partners, Inc. announced that earlier today it redeemed 25 percent of the preferred shares the Company originally issued to the U.S. Treasury under the TARP Capital Purchase Program.
http://jlne.ws/sEHqZj
Unleashed, MetLife tells Ben: Take a walk
New York Post
Snoopy doesn't like walking on Ben Bernanke's tight leash. MetLife - which uses the spunky comic-strip beagle as its corporate mascot - said it is so fed up with the heavy hand of Bernanke's Federal Reserve regulators that it is getting out of the banking business.
http://jlne.ws/uckcti
Goldman Negotiates with Heungkuk
Zacks via Yahoo! Finance
On Wednesday, South Korean insurer-Heungkuk Life Insurance Co. withdrawn the case filed against New York-based The Goldman Sachs Group Inc. earlier this year.
http://jlne.ws/ue81C3
Peoples Bancorp To Repurchase $18 Mln Of $39 Mln Received Under The TARP Capital
Nasdaq
http://jlne.ws/rQJtIN
Global News
IMF boosts Canada outlook for 2011
AFP via Yahoo! News
The International Monetary Fund on Thursday slightly raised its 2011 outlook for the Canadian economy.
http://jlne.ws/tugvPe
Vietnam Growth Holds Near 6% as Higher Rates Counter Exports
BusinessWeek
Vietnam's growth held near 6 percent this quarter, reducing the pressure for further monetary tightening after higher interest rates limited the boost to the economy from exports and domestic consumption.
http://jlne.ws/sVTT5h
Food Inflation Rate in India Falls to Lowest Level in at Least Five Years
Bloomberg
India's food inflation rate fell to the lowest level in at least five-and-a-half years, increasing the scope for the central bank to cut interest rates after it halted a record pace of monetary tightening.
http://jlne.ws/sOPa7o
Serbia Has Room to Cut Rates, Central Bank Chief Soskic Says
BusinessWeek
Serbian central bank Governor Dejan Soskic said policy makers may be in a position to cut borrowing costs in the first half to help foster economic growth because inflation will continue to slow.
http://jlne.ws/vhKgYO
RBS' future as murky as a Scottish loch
Connecticut Post
Uncertainty will hang over the Royal Bank of Scotland's Connecticut operations for possibly years while the U.K. government figures out how to recoup a $69 billion bailout of the institution.
http://jlne.ws/slZvtz
Greek PM pledges 150,000 new jobs in early 2012
Associated Press via Yahoo! News
Greece's interim coalition government pledged Wednesday to create 150,000 new jobs in the first quarter of 2012 and boost welfare programs, seeking to alleviate the effects of an acute financial crisis that has sent unemployment soaring amid a deep recession.
http://jlne.ws/sajDmb
Thai Ministry Of Finance: 4Q GDP Likely To Shrink 5% On Year
Nasdaq
http://jlne.ws/w49Oo6
Zambia CPI slows, 2011 GDP growth seen lower
Reuters via Yahoo! News
LUSAKA (Reuters) - Zambia's consumer inflation slowed sharply in December on lower food prices while economic growth was seen down in 2011 compared with last year due to decreased output from mining in Africa's largest copper producer, the Central Statistics Office said on Thursday.
http://jlne.ws/tarlJl
Unemployment surge hits Sarkozy re-election hopes
AFP via Yahoo! News
French President Nicolas Sarkozy's re-election hopes have been hit by new figures showing unemployment at a 12-year high amid an austerity drive that leaves him little room to manoeuvre.
http://jlne.ws/tFBIJs
Egypt cbank to offer 22 bln Eg pounds in repos
Reuters via Yahoo! News
CAIRO (Reuters) - Egypt's central bank said it would offer 22 billion Egyptian pounds in seven-day repurchase agreements in the money market on Tuesday at a fixed rate of 9.75 percent.
http://jlne.ws/uOpmFv
Chilean Interbank Rates Jump Even After Central Bank Acts to Add Liquidity
Bloomberg
Chilean short-term bank borrowing costs continued to rise today even after the central bank announced an extra liquidity package aimed at bringing rates down.
http://jlne.ws/tROq7P
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Rabu, 28 Desember 2011
Top Interest Rate Headlines 12-28-2011: Fed Seeks To Curb Repo Market Risk
Fed seeks to curb repo market risk
FT.com
http://jlne.ws/vePyDJ
More Year-End Buying Sets 10-Year Record Low
The Bond Buyer
So much for a slow week between Christmas and New Year’s.
http://jlne.ws/uSiRXs
BRIC Decade Ends as Growth Peaked: Goldman
Bloomberg
In the past decade, mutual funds poured almost $70 billion into Brazil, Russia, India and China, stocks more than quadrupled gains in the Standard & Poor’s 500 Index and the economies grew four times faster than America’s.
http://jlne.ws/vUZAZX
China eclipses US as top IPO venue
FT.com
http://jlne.ws/uba5ak
Holiday online spending jumps 15%: ComScore
MarketWatch
Retail e-commmerce spending for the November-December holiday period jumped 15% to $35.3 billion, tracking service ComScore said Wednesday. And for the most recent week, ended Dec. 25, it was up 16% year-over-year to $2.8 billion.
http://jlne.ws/tGPXLS
Whistleblower Records Shed Light On BNYMellon Case
Huffington Post
Confidential whistleblower documents that helped spark a massive state and federal investigation into how Bank of New York Mellon Corp charged pension funds for currency exchange, provide a rare window into how a bank insider aided a lawsuit against the bank.
http://jlne.ws/vlLXO8
Strong demand at Italian debt sale
Reuters
The euro grabbed support from strong investor demand at an Italian debt sale on Wednesday but the currency's gains against the dollar were limited in thin trade pending an auction of longer-dated bonds.
http://jlne.ws/rSfGVU
Carlyle Creating a Second Fund to Invest in Financial Firms
American Banker
The Carlyle Group, a powerhouse private-equity firm that has been aggressively acquiring stakes in ailing banks, is looking to raise additional funds to invest in troubled and capital-starved financial institutions.
http://jlne.ws/t90N4p
Deposits at ECB Hit High
WSJ.com
The amount of money parked by euro-zone banks at the European Central Bank surged to another new record Tuesday, as banks used the ECB's latest vast liquidity injection to build up reserves rather than take on new risks.
http://jlne.ws/vBF4gF
Obama's unforced Fed error
CNN Money
President Obama yesterday announced plans to nominate Jerome Powell to the Federal Reserve's board of governors. Somewhere in Iowa, Mitt Romney was cheering.
http://jlne.ws/u02QAI
FT.com
http://jlne.ws/vePyDJ
More Year-End Buying Sets 10-Year Record Low
The Bond Buyer
So much for a slow week between Christmas and New Year’s.
http://jlne.ws/uSiRXs
BRIC Decade Ends as Growth Peaked: Goldman
Bloomberg
In the past decade, mutual funds poured almost $70 billion into Brazil, Russia, India and China, stocks more than quadrupled gains in the Standard & Poor’s 500 Index and the economies grew four times faster than America’s.
http://jlne.ws/vUZAZX
China eclipses US as top IPO venue
FT.com
http://jlne.ws/uba5ak
Holiday online spending jumps 15%: ComScore
MarketWatch
Retail e-commmerce spending for the November-December holiday period jumped 15% to $35.3 billion, tracking service ComScore said Wednesday. And for the most recent week, ended Dec. 25, it was up 16% year-over-year to $2.8 billion.
http://jlne.ws/tGPXLS
Whistleblower Records Shed Light On BNYMellon Case
Huffington Post
Confidential whistleblower documents that helped spark a massive state and federal investigation into how Bank of New York Mellon Corp charged pension funds for currency exchange, provide a rare window into how a bank insider aided a lawsuit against the bank.
http://jlne.ws/vlLXO8
Strong demand at Italian debt sale
Reuters
The euro grabbed support from strong investor demand at an Italian debt sale on Wednesday but the currency's gains against the dollar were limited in thin trade pending an auction of longer-dated bonds.
http://jlne.ws/rSfGVU
Carlyle Creating a Second Fund to Invest in Financial Firms
American Banker
The Carlyle Group, a powerhouse private-equity firm that has been aggressively acquiring stakes in ailing banks, is looking to raise additional funds to invest in troubled and capital-starved financial institutions.
http://jlne.ws/t90N4p
Deposits at ECB Hit High
WSJ.com
The amount of money parked by euro-zone banks at the European Central Bank surged to another new record Tuesday, as banks used the ECB's latest vast liquidity injection to build up reserves rather than take on new risks.
http://jlne.ws/vBF4gF
Obama's unforced Fed error
CNN Money
President Obama yesterday announced plans to nominate Jerome Powell to the Federal Reserve's board of governors. Somewhere in Iowa, Mitt Romney was cheering.
http://jlne.ws/u02QAI
Selasa, 27 Desember 2011
Top Interest Rate Headlines 12-27-2011: Jean-Claude Trichet: A Centralized Europe Is A Globalized Europe
Jean-Claude Trichet: A Centralized Europe Is A Globalized Europe
http://jlne.ws/skBMf3
Greek conservatives drop February election demand
Reuters
Greece's conservative New Democracy party dropped its insistence on holding elections as early as February 19 on Tuesday, potentially giving technocrat Prime Minister Lucas Papademos a few more weeks to pass reforms and get a vital debt restructuring deal.
http://jlne.ws/syZH0q
MetLife sells bank deposits to GE Capital
FT.com
http://jlne.ws/vY2Xtq
China Investment Wave Unlikely to Swamp EU
CNBC
The sign in a boutique selling glass hand-crafted on the Venetian island of Murano betrays an uncertain grasp of English. But the owner is very sure who is to blame for the tough times confronting the 700-year-old local glass making industry.
http://jlne.ws/t4V2sD
Finra Fines Credit Suisse $1.75 Million for Alleged Short-Sale Violations
WSJ.com
The Financial Industry Regulatory Authority fined Credit Suisse Group AG $1.75 million for allegedly violating Regulation SHO and failing to properly supervise short sales and marking sale orders.
http://jlne.ws/rruM73
Treasury Sees U.S. Debt Near Limit By End Of Friday
WSJ.com
The U.S. debt will come within $100 billion of its ceiling on Friday, and the Treasury Department anticipates the Obama administration will begin steps to seek a $1.2 trillion increase in the limit.
http://jlne.ws/uI3M8X
Conflicting signals for U.S. economy
Reuters
As 2011 draws to an unspectacular close, U.S. economic data are sending thoroughly mixed messages about the near-term path of the recovery. That’s not particularly reassuring given the still enormous risks emanating from Europe – but it’s better than the unequivocal weakness that prevailed during the first half of the year.
http://jlne.ws/snGE6i
CME Group Fines Trader $50,000 Over Rogue Algorithm
WSJ.com
CME Group Inc. (CME) on Friday fined a trader at Infinium Capital Management $50,000 for unleashing an automated trading strategy that erroneously bought thousands of crude-oil futures over the course of three seconds.
http://jlne.ws/uFy1Zq
Deutsche Boerse Plans To Continue Growth In 4 Areas In '12
Nasdaq.com/Dow Jones
German exchange operator Deutsche Boerse AG (DB1.XE) Tuesday said it will continue growth initiatives in the areas of risk management, clearing, sales and products in 2012.
http://jlne.ws/sNfEUO
Nation urged to increase holdings of gold
China Daily
China should further diversify its foreign-exchange portfolio and make more gold purchases when the metal's price dips but is still at a relatively high level, a senior central bank official said on Monday.
http://jlne.ws/sIEr5c
Online shopping jumps 16% Christmas Day
The Globe And Mail
A growing number of shoppers apparently need only the briefest of breaks before diving back in, especially if they can log in to shop. IBM found that online shopping jumped 16.4 per cent on Christmas Day over last year, and the dollar amount of those purchases that were made using mobile devices leaped 172.9 per cent.
http://jlne.ws/sBFz5Q
Schaeuble vows to push for financial transaction tax
Reuters
German Finance Minister Wolfgang Schaeuble vowed in an interview published on Sunday to push ahead for a financial transaction tax in the European Union in 2012 despite objections from Britain that it could harm London as a global financial centre.
http://jlne.ws/ulct6D
Consumer Confidence Index Surges In December
Fox News
Americans are gaining faith that the economy is on the upswing. An improving job outlook helped the Consumer Confidence Index soar to the highest level since April and near a post-recession peak, according to a monthly survey by The Conference Board. It marked the second straight monthly surge and coincided with what's wrapping up to be decent spending for the holiday shopping season.
http://jlne.ws/t60nDl
Banks still waiting on most Dodd-Frank rules
The Washington Post
A year and a half has gone by since the Dodd-Frank financial reform act was signed into law, but barely a quarter of the rules in the legislation have been finalized, though federal regulators are rolling out key components of the bill.
http://jlne.ws/u9Cz1J
http://jlne.ws/skBMf3
Greek conservatives drop February election demand
Reuters
Greece's conservative New Democracy party dropped its insistence on holding elections as early as February 19 on Tuesday, potentially giving technocrat Prime Minister Lucas Papademos a few more weeks to pass reforms and get a vital debt restructuring deal.
http://jlne.ws/syZH0q
MetLife sells bank deposits to GE Capital
FT.com
http://jlne.ws/vY2Xtq
China Investment Wave Unlikely to Swamp EU
CNBC
The sign in a boutique selling glass hand-crafted on the Venetian island of Murano betrays an uncertain grasp of English. But the owner is very sure who is to blame for the tough times confronting the 700-year-old local glass making industry.
http://jlne.ws/t4V2sD
Finra Fines Credit Suisse $1.75 Million for Alleged Short-Sale Violations
WSJ.com
The Financial Industry Regulatory Authority fined Credit Suisse Group AG $1.75 million for allegedly violating Regulation SHO and failing to properly supervise short sales and marking sale orders.
http://jlne.ws/rruM73
Treasury Sees U.S. Debt Near Limit By End Of Friday
WSJ.com
The U.S. debt will come within $100 billion of its ceiling on Friday, and the Treasury Department anticipates the Obama administration will begin steps to seek a $1.2 trillion increase in the limit.
http://jlne.ws/uI3M8X
Conflicting signals for U.S. economy
Reuters
As 2011 draws to an unspectacular close, U.S. economic data are sending thoroughly mixed messages about the near-term path of the recovery. That’s not particularly reassuring given the still enormous risks emanating from Europe – but it’s better than the unequivocal weakness that prevailed during the first half of the year.
http://jlne.ws/snGE6i
CME Group Fines Trader $50,000 Over Rogue Algorithm
WSJ.com
CME Group Inc. (CME) on Friday fined a trader at Infinium Capital Management $50,000 for unleashing an automated trading strategy that erroneously bought thousands of crude-oil futures over the course of three seconds.
http://jlne.ws/uFy1Zq
Deutsche Boerse Plans To Continue Growth In 4 Areas In '12
Nasdaq.com/Dow Jones
German exchange operator Deutsche Boerse AG (DB1.XE) Tuesday said it will continue growth initiatives in the areas of risk management, clearing, sales and products in 2012.
http://jlne.ws/sNfEUO
Nation urged to increase holdings of gold
China Daily
China should further diversify its foreign-exchange portfolio and make more gold purchases when the metal's price dips but is still at a relatively high level, a senior central bank official said on Monday.
http://jlne.ws/sIEr5c
Online shopping jumps 16% Christmas Day
The Globe And Mail
A growing number of shoppers apparently need only the briefest of breaks before diving back in, especially if they can log in to shop. IBM found that online shopping jumped 16.4 per cent on Christmas Day over last year, and the dollar amount of those purchases that were made using mobile devices leaped 172.9 per cent.
http://jlne.ws/sBFz5Q
Schaeuble vows to push for financial transaction tax
Reuters
German Finance Minister Wolfgang Schaeuble vowed in an interview published on Sunday to push ahead for a financial transaction tax in the European Union in 2012 despite objections from Britain that it could harm London as a global financial centre.
http://jlne.ws/ulct6D
Consumer Confidence Index Surges In December
Fox News
Americans are gaining faith that the economy is on the upswing. An improving job outlook helped the Consumer Confidence Index soar to the highest level since April and near a post-recession peak, according to a monthly survey by The Conference Board. It marked the second straight monthly surge and coincided with what's wrapping up to be decent spending for the holiday shopping season.
http://jlne.ws/t60nDl
Banks still waiting on most Dodd-Frank rules
The Washington Post
A year and a half has gone by since the Dodd-Frank financial reform act was signed into law, but barely a quarter of the rules in the legislation have been finalized, though federal regulators are rolling out key components of the bill.
http://jlne.ws/u9Cz1J
U.S. Savings Bonds are going electronic after December 31 - Move to Online Savings Bonds to Save Taxpayers $120 Million
U.S. Savings Bonds are going electronic after December 31 - Move to Online Savings Bonds to Save Taxpayers $120 Million
WASHINGTON, Dec. 27, 2011 /PRNewswire/ -- The U.S. Department of the Treasury today reiterated that paper U.S. Savings Bonds are going electronic after December 31 – a move that will save taxpayers $120 million over five years. To commemorate the rich history of savings bonds from 1935 to present, the Treasury Department has launched an online timeline that captures major milestones through the years.
"As we transition our savings bond program online – a move that will produce significant taxpayer savings – we wanted to step back and remember how savings bonds came to symbolize the events, people and places that shaped our nation through good times and difficult periods over the past 76 years," said Rosie Rios, Treasurer of the United States.
The interactive timeline features archived images of savings bond posters, special events and other memorabilia through the years, including photos or videos of movie stars such as Judy Garland and Mickey Rooney and popular television programs such as "Lassie," "The Bugs Bunny Show" and "Cheers." The interactive timeline is available at www.treasurydirect.gov/timeline.htm.
Ending the sales of paper savings bonds at financial institutions, originally announced in July 2011, supports the Treasury Department's goal to increase the number of electronic transactions with citizens and businesses. In December 2010, the Treasury Department ended the sale of paper savings bonds through traditional payroll plans. Both actions will save taxpayers $120 million over five years.
Series EE and I electronic savings bonds remain available for purchase on TreasuryDirect, a secure, web-based system operated by Public Debt – where investors have been purchasing savings bonds since 2002.
Although paper savings bonds are no longer available at financial institutions, local banks and credit unions will continue redeeming paper savings bonds. For more information about how to purchase savings bonds and other Treasury securities, or how to replace lost, stolen or destroyed bonds, visit www.treasurydirect.gov.
Series I paper savings bonds remain available for purchase using part or all of one's tax refund. For more information on this feature, visit www.irs.gov.
WASHINGTON, Dec. 27, 2011 /PRNewswire/ -- The U.S. Department of the Treasury today reiterated that paper U.S. Savings Bonds are going electronic after December 31 – a move that will save taxpayers $120 million over five years. To commemorate the rich history of savings bonds from 1935 to present, the Treasury Department has launched an online timeline that captures major milestones through the years.
"As we transition our savings bond program online – a move that will produce significant taxpayer savings – we wanted to step back and remember how savings bonds came to symbolize the events, people and places that shaped our nation through good times and difficult periods over the past 76 years," said Rosie Rios, Treasurer of the United States.
The interactive timeline features archived images of savings bond posters, special events and other memorabilia through the years, including photos or videos of movie stars such as Judy Garland and Mickey Rooney and popular television programs such as "Lassie," "The Bugs Bunny Show" and "Cheers." The interactive timeline is available at www.treasurydirect.gov/timeline.htm.
Ending the sales of paper savings bonds at financial institutions, originally announced in July 2011, supports the Treasury Department's goal to increase the number of electronic transactions with citizens and businesses. In December 2010, the Treasury Department ended the sale of paper savings bonds through traditional payroll plans. Both actions will save taxpayers $120 million over five years.
Series EE and I electronic savings bonds remain available for purchase on TreasuryDirect, a secure, web-based system operated by Public Debt – where investors have been purchasing savings bonds since 2002.
Although paper savings bonds are no longer available at financial institutions, local banks and credit unions will continue redeeming paper savings bonds. For more information about how to purchase savings bonds and other Treasury securities, or how to replace lost, stolen or destroyed bonds, visit www.treasurydirect.gov.
Series I paper savings bonds remain available for purchase using part or all of one's tax refund. For more information on this feature, visit www.irs.gov.
Jumat, 23 Desember 2011
Top Interest Rate Headlines 12-23-2011: Fed May Signal Low Rates Into 2014
Fed May Signal Low Rates Into 2014
WSJ.com
The Federal Reserve could signal it is likely to keep short-term interest rates near zero into 2014 or beyond, to bolster the fragile economic recovery. Fed officials have grown increasingly uncomfortable with their August statement that they are likely to hold short-term rates exceptionally low at least through mid-2013. Some believe low inflation and high unemployment could warrant low rates for longer.
http://jlne.ws/vfOzen
Regulators Extend Comment Period on Volcker-Rule Proposal
Bloomberg
U.S. regulators will extend the comment period for the so-called Volcker rule, giving lawmakers and banks more time to seek changes in the proposed proprietary trading ban required by the Dodd-Frank Act.
http://jlne.ws/vRQjST
UK authorities fight for MF Global's $700 million
CNNMoney
U.S. and UK authorities are wrestling over $700 million in funds from MF Global customers that has been found in the failed futures and commodities trader's London operations.
http://jlne.ws/vt341O
MF Global Trustee Seeks Money From British Arm
NY Times
The trustee liquidating MF Global’s trading operations said on Friday that his office was seeking the return of more than $600 million from the failed firm’s British arm, potentially setting up a cross-border fight over customer money.
http://jlne.ws/ti9mR1
Obama’s Signature Puts Quick End to Payroll Tax Fight
New York Times
The central conflict that has dogged Speaker John A. Boehner is this: how to answer the hue and cry of the far-right corner of his conference — especially the most conservative of the 87 freshmen who often seem willing to walk to the point of legislative disaster over a point of principle — and actually get things done.
http://jlne.ws/u225Nk
BofA Mulls Asset Sales to Keep Up With the Joneses
New York Times
Bank of America Corp is lagging behind its major U.S. competitors in complying with new capital rules, leading the bank to consider even more asset sales, sources said.
http://jlne.ws/rBznF1
Italy's Senate approves emergency austerity plan
MarketWatch
Italy's Prime Minister Mario Monti secured approval for his €30 billion ($39 billion) emergency austerity package, media reports said. The package won a final confidence vote in the Senate after a lengthy debate Thursday evening.
http://jlne.ws/u70gT4
Moody's backs Austria's triple-A credit rating
MarketWatch
Moody's Investors Service on Friday backed Austria's triple-A credit rating, saying it considered the government's financial strength to be very high.
http://jlne.ws/rtyUg2
Federal Judge Questions SEC Settlement
Huffington Post
A federal judge in Milwaukee has criticized the Securities and Exchange Commission for being too soft with corporate enforcement, marking the second time the agency has been criticized for weak settlements in the past month.
http://jlne.ws/sCB3NR
Clearing in spotlight after MF Global debacle
http://jlne.ws/rFvqcJ
Muni Bonds: A Disaster That Wasn't
Reuters
The collapse of U.S. futures brokerage MF Global has brought to light inconsistencies in the way clearing houses operate, prompting questions over regulatory plans to use more of these platforms to make markets safer.
http://jlne.ws/uX73IV
Congress passes payroll tax cut, extends jobless benefits, amid House Republicans retreat
The Republic
The collapse of U.S. futures brokerage MF Global has brought to light inconsistencies in the way clearing houses operate, prompting questions over regulatory plans to use more of these platforms to make markets safer.
http://jlne.ws/vow1Ve
Consumers’ Mood Brightens as 2011 Ends
WSJ.com
Consumers ended a tumultuous — and often glum — year on a sunnier note. In December, the Thomson Reuters/University of Michigan Consumer Sentiment Index climbed to 69.9, compared with 64.1 in November. December’s reading was the fourth consecutive monthly rise. That isn’t as high as the January reading, but well above August’s low of 55.7.
http://jlne.ws/rE3ssE
WSJ.com
The Federal Reserve could signal it is likely to keep short-term interest rates near zero into 2014 or beyond, to bolster the fragile economic recovery. Fed officials have grown increasingly uncomfortable with their August statement that they are likely to hold short-term rates exceptionally low at least through mid-2013. Some believe low inflation and high unemployment could warrant low rates for longer.
http://jlne.ws/vfOzen
Regulators Extend Comment Period on Volcker-Rule Proposal
Bloomberg
U.S. regulators will extend the comment period for the so-called Volcker rule, giving lawmakers and banks more time to seek changes in the proposed proprietary trading ban required by the Dodd-Frank Act.
http://jlne.ws/vRQjST
UK authorities fight for MF Global's $700 million
CNNMoney
U.S. and UK authorities are wrestling over $700 million in funds from MF Global customers that has been found in the failed futures and commodities trader's London operations.
http://jlne.ws/vt341O
MF Global Trustee Seeks Money From British Arm
NY Times
The trustee liquidating MF Global’s trading operations said on Friday that his office was seeking the return of more than $600 million from the failed firm’s British arm, potentially setting up a cross-border fight over customer money.
http://jlne.ws/ti9mR1
Obama’s Signature Puts Quick End to Payroll Tax Fight
New York Times
The central conflict that has dogged Speaker John A. Boehner is this: how to answer the hue and cry of the far-right corner of his conference — especially the most conservative of the 87 freshmen who often seem willing to walk to the point of legislative disaster over a point of principle — and actually get things done.
http://jlne.ws/u225Nk
BofA Mulls Asset Sales to Keep Up With the Joneses
New York Times
Bank of America Corp is lagging behind its major U.S. competitors in complying with new capital rules, leading the bank to consider even more asset sales, sources said.
http://jlne.ws/rBznF1
Italy's Senate approves emergency austerity plan
MarketWatch
Italy's Prime Minister Mario Monti secured approval for his €30 billion ($39 billion) emergency austerity package, media reports said. The package won a final confidence vote in the Senate after a lengthy debate Thursday evening.
http://jlne.ws/u70gT4
Moody's backs Austria's triple-A credit rating
MarketWatch
Moody's Investors Service on Friday backed Austria's triple-A credit rating, saying it considered the government's financial strength to be very high.
http://jlne.ws/rtyUg2
Federal Judge Questions SEC Settlement
Huffington Post
A federal judge in Milwaukee has criticized the Securities and Exchange Commission for being too soft with corporate enforcement, marking the second time the agency has been criticized for weak settlements in the past month.
http://jlne.ws/sCB3NR
Clearing in spotlight after MF Global debacle
http://jlne.ws/rFvqcJ
Muni Bonds: A Disaster That Wasn't
Reuters
The collapse of U.S. futures brokerage MF Global has brought to light inconsistencies in the way clearing houses operate, prompting questions over regulatory plans to use more of these platforms to make markets safer.
http://jlne.ws/uX73IV
Congress passes payroll tax cut, extends jobless benefits, amid House Republicans retreat
The Republic
The collapse of U.S. futures brokerage MF Global has brought to light inconsistencies in the way clearing houses operate, prompting questions over regulatory plans to use more of these platforms to make markets safer.
http://jlne.ws/vow1Ve
Consumers’ Mood Brightens as 2011 Ends
WSJ.com
Consumers ended a tumultuous — and often glum — year on a sunnier note. In December, the Thomson Reuters/University of Michigan Consumer Sentiment Index climbed to 69.9, compared with 64.1 in November. December’s reading was the fourth consecutive monthly rise. That isn’t as high as the January reading, but well above August’s low of 55.7.
http://jlne.ws/rE3ssE
Kamis, 22 Desember 2011
December 22, 2011: European Banks Rush to Grasp Lifeline
December 22, 2011
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starter
Federal Reserve Bank Of New York: Central Bank Imbalances In The Euro Area
Matthew Higgins and Thomas Klitgaard
The euro area sovereign debt crisis sparked an outflow of bank deposits from countries in the periphery to commercial banks in Germany and other core countries. The outflow highlighted a key aspect of the payments system linking national central banks in euro area countries. In particular, net outflows from private commercial banks in a given country are matched by credits to that country’s central bank, with those credits extended by central banks elsewhere in the euro area. In this post, it's explained how the credits affected the adjustment pressures faced by countries in the euro area during the ongoing debt crisis.
See the full Federal Reserve Bank Of New York report here.
------------------------------------------------------------------------------------------------------------------
SIFMA Issues 2012 Municipal Bond Issuance Survey
--Forecast shows $402 Billion in Issuance for 2012--
New York, NY, December 21, 2011—The Securities Industry and Financial Markets Association (SIFMA) today released its 2012 Municipal Bond Issuance Survey. Compiled from responses provided by large and regional municipal bond underwriters and dealers, the report forecasts what type of activity is expected in the taxable and tax-exempt municipal securities market in 2012.
Respondents expected total municipal issuance, both short- and long-term, to reach $402.0 billion in 2012, a significant recovery from their expectation of $342.0 billion in 2011. Additionally, excluding short-term notes, long-term issuance is also expected to recover in 2012, with a forecasted $347.0 billion total in 2012 compared with $288.0 billion in 2011.
See the entire survey here.
**CN: Survey respondents also offered relatively uniform views on interest rate trends in the coming year, generally expecting little to no change in rates throughout 2012.
Lead Stories
European Banks Rush to Grasp Lifeline
WSJ.com
Hundreds of euro-zone lenders took out €489.19 billion ($640 billion) in low-interest loans from the European Central Bank on Wednesday, as the currency area extended a massive financial lifeline to its struggling banking industry. The unexpectedly heavy demand from 523 banks for the three-year loans highlighted the severity of Europe's financial crisis, while also stirring some hopes that the action could help defuse it, or at least prevent it from getting worse.
http://jlne.ws/so9Csf
Bernanke Tells Senators Fed Plans No Aid to European Banks
BusinessWeek
Federal Reserve Chairman Ben S. Bernanke told Republican senators the Fed plans no additional aid to European banks amid the region's sovereign debt crisis, according to two lawmakers who attended the meeting.
http://jlne.ws/uECNms
Italian Parliament Approves Monti’s Budget
Bloomberg
Prime Minister Mario Monti’s emergency budget plan won final approval in Parliament today as Italy struggles to tame surging borrowing costs before facing 53 billion euros ($69 billion) in debt repayments early next year.
http://jlne.ws/umOnS5
PIMCO Cyclical Outlook: Deleveraging, Austerity and Europe’s Potential Minsky Moment
The year ahead will likely be very challenging for the global economy. Growth faces several hurdles that we believe collectively will impose a sense of greater uncertainty and increased volatility on financial markets. These hurdles include the need for accelerated balance sheet deleveraging, slowly creeping but surely rising risks of financial and economic de-globalization, and the constant drum beat of re-regulation, particularly in developed country banking systems.
http://jlne.ws/uRvsro
Boost from ECB lending seen limited
Reuters
Europe's banks borrowed nearly 490 billion euros from the European Central Bank at its first-ever offer of three-year loans on Wednesday, encouraging demand for the euro and stocks on hopes the funding will ease the two-year old debt crisis. But the very heavy take-up of the ECB money also highlighted the scale of the pressures European banks are under and some of the initial gains in asset prices were quickly given back.
http://jlne.ws/stcx0D
ECB's Mario Draghi Tells Financial Times More Resilient Financial System Needed
http://jlne.ws/uTXEg2
**CN: Draghi says a financial system with less debt and more capital is required.
Roubini: Euro Zone 'In Denial,' US Postpones Reforms
CNBC
Famous economist Nouriel Roubini, credited for predicting the financial crisis, made a plea to policymakers to take the tough action needed to address current economic problems, in an article published on the Financial Times website.
http://jlne.ws/vGIYF0
Federal Reserve says large banks should hold more capital to cushion against crisis
Washington Post
NEW YORK - The Federal Reserve on Tuesday said the largest U.S. banks and financial companies should hold extra cash on their balance sheets to cushion themselves against financial crises. The proposal by the chief U.S. banking regulator will affect banks with over $50 billion in assets. There are even stricter rules for companies with over $500 billion in assets such as JPMorgan Chase & Co.
http://jlne.ws/uxO7Df
Real Reasons That Bankers Don't Like Basel Rules: Clive Crook
Bloomberg
The Federal Reserve, according to reports, has decided that big U.S. banks will have to comply with an emerging new global rule on capital. It's a move the banks have fought, arguing that it will increase their costs and discourage lending.
http://jlne.ws/u8Oltm
Obama endorses McConnell payroll tax cut plan
USA Today
President Obama today endorsed a proposed compromise by the Senate Republican leader on the payroll tax cut impasse: to have House Republicans pass a temporary two-month extension, while Senate Democrats agree to negotiate a year-long extension at the same time.
http://jlne.ws/vbbxFv
NYSE-Deutsche Boerse Merger Given U.S. Approval Pending Direct Edge Sale
Bloomberg
The U.S. approved the $9 billion merger of NYSE Euronext (NYX) and Deutsche Boerse AG (DB1) on the condition that the German exchange sells its 31.5 percent stake in Direct Edge Holdings LLC to preserve competition among stock exchanges.
http://jlne.ws/tYxu5Q
Fannie Mae, Freddie Mac Sued by California in Foreclosure Probe
Bloomberg Businessweek
Fannie Mae and Freddie Mac were accused in a lawsuit by California Attorney General Kamala Harris of hindering her probe into mortgage lending and foreclosure practices.
http://jlne.ws/spoU7E
Daniel Mudd, ex-Fannie Mae CEO, takes leave of absence from hedge fund firm
The Washington Post
Former Fannie Mae chief executive Daniel Mudd, who was charged with fraud last week by the SEC, is taking a leave of absence from his job as chief executive of hedge fund manager Fortress Investment Group, the firm said Wednesday.
http://jlne.ws/tYdJSt
Municipal Bond ETFs Turn in Solid Year
Yahoo! Finance
Municipal bonds were one of the best-performing categories in fixed-income exchange traded funds in 2011 despite talk of widespread defaults earlier in the year. One of the largest muni bond ETFs is up about 12% year to date.
http://jlne.ws/tJUlbX
U.S. Faces 2013 Fitch AAA Downgrade Unless Deficit Cuts Made
Bloomberg Businessweek
The U.S.’s AAA rating will probably be cut by Fitch Ratings by the end of 2013 unless lawmakers are able to formulate a plan to reduce the budget deficit after next year’s congressional and presidential elections.
http://jlne.ws/sd39uZ
Freddie Mac: Record-Breaking Low Mortgage Rates for the Holidays
Press Release
Freddie Mac today released the results of its Primary Mortgage Market Survey, showing average fixed mortgage rates at or near all-time record lows helping to keep homebuyer affordability high. The 30-year fixed averaged 3.91 percent for the week, a new all-time low, dropping below last week's 3.94 percent, the previous record low. The 15-year fixed matched last week's all-time record low at 3.21 percent. Adjustable rate products also hit new all-time lows in this week's survey.
http://jlne.ws/t5vKag
Mortgage rates fall to historic lows again
AP/USA Today
The average rate on 30-year fixed mortgages fell to a record 3.91% this week, third time this year that rates have hit new lows. Freddie Mac says the rate on the 30-year home loan fell from 3.94% the previous week. The average on the 15-year fixed mortgage was unchanged at 3.21%. That's also a record.
http://jlne.ws/t6wSOB
ISDA: OTC Derivatives Market Analysis: Despite Increase in Notionals, Over 50% of IRS Market Is Cleared
Reuters/Press Release
The International Swaps and Derivatives Association, Inc. (ISDA) published today its analysis of the over-the-counter (OTC) derivatives market based on June 30, 2011 statistics. According to the ISDA analysis, the notional amount of OTC derivatives outstanding (adjusted to exclude FX transactions and for the impact of clearing) increased 18 percent from $416.7 trillion at year-end 2010 to $491.3 trillion at June 30, 2011. This increase in notional outstanding reverses declines in 2008, 2009 and 2010. From year-end 2007 through year-end 2010, the OTC derivatives markets decreased in size by approximately 12 percent when measured on this adjusted basis.
http://jlne.ws/rp8Vj9
Why The Fed Can't Be Counted On To Save The Economy
Forbes
The Federal Reserve was established in 1913 supposedly to maintain economic stability, but it presided over America’s worst depression (1930s), the worst peacetime inflation (mid-1960s to mid-1980s) and probably the worst asset bubble and bust (early 2000s to the present). In addition, there have been 18 recessions or depressions during the Fed era, generally the result of prior inflations.
http://jlne.ws/t1Lqe4
Feds approve RBC sale to PNC
Rocky Mount Telegram
WASHINGTON - The Federal Reserve has given approval for PNC Financial Services Group Inc. to purchase the U.S. retail operations and credit-card assets of Royal Bank of Canada.
http://jlne.ws/tnPXwQ
The Fed: 2012 to be Year of the Dove on Fed
Market Watch
The makeup of the Federal Open Market Committee in 2012 will be decidedly more dovish and willing to back Fed chairman Ben Bernanke's activist policies, Fed watchers said.
http://jlne.ws/shhiy1
U.S. 10-Year Yields May Fall to 1.5% in 2012, Deutsche Bank's Konstam Says
Bloomberg
Treasury 10-year note yields could drop to a record low 1.5 percent in 2012 as global growth concern persists and the Federal Reserve buys more debt to support the U.S. economic recovery, according to Deutsche Bank AG's Dominic Konstam.
http://jlne.ws/tYEDly
Treasury headquarters attains LEED Gold certification
Federal Times
The Treasury Department announced today that their headquarters has attained LEED Gold certification by the U.S. Green Building Council. Gold is the second-highest rating. The building was made more energy and water efficient, resulting in a 7 percent decrease in electricity use and a 53 percent decrease in steam use over 2008 levels.
http://jlne.ws/uAsrvx
Events
Fixed Income Markets 2012
January 24, 2012
Tabb Forum Looks At Changes Ahead And Staying Ahead In Fixed Incomes
http://jlne.ws/snQ3VO
Treasury Futures: Using International Fixed-Income and Money Market Spreads
January 31, 2012
The IFM Instructs On Using Fixed Income And Money Market Spreads
http://jlne.ws/u7MgUK
National Association of Home Builders' Show
February 10, 2012
Special Session With Fed's Bernanke Open To All Registered Attendees
http://jlne.ws/tEcqjW
Economic News
Unemployment applications lowest since April '08
CBS News
The number of people applying for unemployment benefits dropped last week to its lowest level since April 2008, extending a downward trend that shows the job market strengthening.
http://jlne.ws/vQmvBU
Unemployment Fell in Nearly All States in November
CNBC
Unemployment rates in almost all U.S. states dropped in November, and 45 states had jobless rates lower than the year before, U.S. Labor Department data showed Tuesday.
http://jlne.ws/vFEbZU
3rd straight decline puts jobless claims at April 2008 levels
Dow Jones Newswires/Chicago Tribune
New claims for unemployment benefits unexpectedly fell last week, reaching the lowest level since April 2008 and providing another sign of improvement for the weak labor market.
http://jlne.ws/tuSBjq
Housing Starts in U.S. Increase to Highest Level in a Year
Bloomberg Businessweek
Builders broke ground in November on the most houses in over a year, a sign that the market is stabilizing heading into 2012. Starts increased 9.3 percent to a 685,000 annual rate, exceeding the highest estimate of economists surveyed by Bloomberg News and the highest level since April 2010, Commerce Department figures showed today in Washington. Building permits, a proxy for future construction, also climbed to a more than one- year high.
http://jlne.ws/tkLMli
GDP Growth Revised Lower
WSJ.com
The U.S. economy expanded less than thought during the third quarter as consumer spending fell short of an earlier estimate, though signs point to stronger growth in the final months of the year.
http://jlne.ws/uWIrS9
Consumer Sentiment Rose More Than Forecast
Bloomberg
Confidence among U.S. consumers rose more than forecast in December, to a six-month high, as Americans began wrapping up their holiday spending. The Thomson Reuters/University of Michigan final index of consumer sentiment climbed to 69.9 from 64.1 at the end of November. The median estimate in a Bloomberg News survey called for 68 after a preliminary reading of 67.7. The gauge averaged 89 in the five years leading up to the recession that began in December 2007 and ended in June 2009.
http://jlne.ws/uiTarr
Exchanges, Clearing Houses & MTFs
SwapClear Enhancements Drive Additional $32.7 billion of IRS Client Clearing
PR Newswire via Yahoo! Finance
NEW YORK , Dec. 19, 2011 /PRNewswire/ -- LCH.Clearnet Limited (LCH.Clearnet), the world's leading independent clearinghouse, today announced that SwapClear, its interest rate swap (IRS) clearing service.
http://jlne.ws/tPoVIh
Firms & Banks
First Midwest Bancorp, Inc. Repurchases Warrant From U.S. Treasury
Marketwire
ITASCA, IL--(Marketwire - Dec 22, 2011) - First Midwest Bancorp, Inc. ("First Midwest" or the "Company") ( NASDAQ : FMBI ) announced today that it has repurchased the warrant the Company issued to the United States Department of the Treasury ("Treasury") as a part of the Capital Purchase Program ("CPP").
http://jlne.ws/unStjA
Massachusetts Saves as JPMorgan Beats Bank of America on Bond-Sale Bidding
Bloomberg
The competition between JPMorgan Chase & Co. (JPM) and Bank of America Merrill Lynch to be the top underwriter of municipal bonds offered by auction helped Massachusetts save $880,000 on a $400 million borrowing.
http://jlne.ws/s4i9xO
FINRA Fines Wells Fargo $2 Million Over Broker's Sales, Missed Discounts
Nasdaq
The Financial Industry Regulatory Authority fined Wells Fargo & Co. (WFC) $2 million for unsuitable sales of reverse convertible securities through one broker to 21 customers and for failing to provide sales charge discounts to unit investment trust transactions to eligible customers.
http://jlne.ws/uDhhCq
NYC pension funds want tougher Wall Street clawbacks
Yahoo! News
New York City's pension funds want three big Wall Street banks to impose tougher compensation-clawback rules for top executives. NYC Pension Funds and City Comptroller John Liu called on the boards of Goldman Sachs Group Inc, Morgan Stanley and JPMorgan Chase & Co to strengthen language in top executives' compensation agreements. The funds held $483.3 million worth of stock in the three banks as of Monday.
http://jlne.ws/rXCUd1
Jefferies shares close up 23%
CNN Money
The investment bank Jefferies has taken steps to shrink its assets, and fourth quarter results were "mediocre," according to CEO Richard Handler. Yet, for Handler, these results were a vindication, after rumors swirled in the wake of MF Global's collapse that Jefferies could swiftly suffer a similar fate.
http://jlne.ws/vpptXQ
Auctions & Statistics
Treasury prices fall after weak demand at an auction of $29 billion of 7-year notes
The Washington Post
U.S. Treasury prices fell Wednesday after an auction of $29 billion seven-year notes failed to generate strong demand from investors. The government had to pay a yield of 1.43 percent on the notes, sharply higher than the 1.38 percent yield the seven-year note was trading at prior to the sale.
http://jlne.ws/tudcmr
Spanish borrowing costs plunge in debt auction
AP
Spain's borrowing costs plummeted in a short-term debt auction Tuesday, indicating market confidence in the country's ability to handle its debt is recovering as conservative Mariano Rajoy prepared to take over as the new prime minister. The Treasury said it sold euro5.6 billion ($7.3 billion), way above the euro4.5 billion it had initially sought.
http://jlne.ws/rIBOtV
Regulators
CFTC Approves 30-Minute Delay in Swap-Trade Price Reporting
Bloomberg Businessweek
Prices for swaps traded on so-called swap execution facilities or exchanges will be delayed for 30 minutes under a rule approved by the U.S. Commodity Futures Trading Commission.
http://jlne.ws/tWuyda
CFTC sheds light on real-time reporting of swaps
Reuters
Wall Street will be required to report complex swap trades in "real time" under a final rule the U.S. futures regulator approved on Tuesday, moving to lift the veil on the murky $700 trillion market, but the agency delayed a decision on block trades until next year.
http://jlne.ws/rLN9BE
FINRA spent $280K lobbying in third quarter
Yahoo! Finance
The Financial Industry Regulatory Authority, the securities industry's self-policing organization, spent $280,000 in the third quarter to lobby on regulation of brokers and investment advisers, and on new rules putting the financial overhaul law into effect, a disclosure report shows.
http://jlne.ws/tWk7BN
Federal Reserve Bank of San Francisco Elects Megan Clubb and Richard Galanti to its Board of Directors
Business Wire via Yahoo! Finance
The Federal Reserve Bank of San Francisco announced the election of Ms. Megan Clubb, president and CEO of Baker Boyer National Bank in Walla Walla, Washington, and Mr. Richard Galanti, executive vice president, CFO, and director of Costco Wholesale Corporation in Issaquah, Washington to its board of directors.
http://jlne.ws/sklVrk
Lacker sees no need for Fed to ease
Reuters via Yahoo! News
CHARLOTTE (Reuters) - The Federal Reserve is unlikely to need to ease monetary policy further given the country's steady if moderate pace of economic growth, Richmond Fed President Jeffrey Lacker said on Monday. Lacker, an inflation hawk who will rotate into a voting seat in the policy-setting Federal Open Market Committee next year, said he expects the economy to expand.
http://jlne.ws/w4ShA5
OTC
ISDA Updates OTC Derivatives Market Analysis: Despite Increase in Notionals, Over 50% of IRS Market Is Cleared
Yahoo! Finance
According to the ISDA analysis, the notional amount of OTC derivatives outstanding (adjusted to exclude FX transactions and for the impact of clearing) increased 18 percent from $416.7 trillion at year-end 2010 to $491.3 trillion at June 30, 2011. This increase in notional outstanding reverses declines in 2008, 2009 and 2010. From year-end 2007 through year-end 2010, the OTC derivatives markets decreased in size by approximately 12 percent when measured on this adjusted basis.
http://jlne.ws/s3SQK8
ICE Recognised for Leading Role in Emissions Markets
Yahoo! Finance
IntercontinentalExchange, a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, has been recognised as "best exchange" in four categories by Environmental Finance and Carbon Finance Magazine in its 12th Carbon Finance Annual Market Survey.
http://jlne.ws/sOQYvG
Global News
U.K. Budget Deficit Narrowed More Than Forecast in November
Bloomberg
Britain’s budget deficit narrowed more than economists forecast in November as tax revenue rose and the government’s fiscal squeeze restrained spending.
http://jlne.ws/taplTs
Japan's trade deficit widens in November
Market Watch
Japan posted its second straight trade deficit in November, the Ministry of Finance reported Wednesday, with the trade gap growing to 684.7 billion ($8.79 billion) from ¥273.8 billion in October. The deficit was also wider than a Dow Jones Newswires survey median forecast of ¥440 billion. Exports for the month were 4.5% lower than those a year earlier, while imports rose 11.4%.
http://jlne.ws/utlg0E
Sweden Lowers Repo Rate First Time Since 2009 As Euro Crisis Dampens Growth
Nasdaq
The Swedish central bank on Tuesday decided to cut its benchmark repo rate for the first time since July 2009. Additionally, the bank lowered the repo rate path as recent economic developments in the euro area dampened domestic economic activity.
http://jlne.ws/stNBLu
Credit Suisse Races UBS Building Buffers in Fortress Switzerland
Businessweek
UBS AG and Credit Suisse Group AG, Switzerland’s largest banks, are finding that the advantages of Europe’s toughest capital requirements are helping offset the costs as the region’s sovereign-debt crisis escalates.
http://jlne.ws/tCY5Ew
French Banks Won't Be Able To Handle Inevitable Italian Restructuring
Forbes
Despite the latest attempt by the European Central Bank to kick the proverbial can far down the road, the Eurozone remains under heavy pressure, and France’s AAA credit rating hangs from a thread. According to research by Nomura, France’s exposure to peripheral Europe tops €680 billion ($887 billion), more than 25% of its GDP, putting its banks at substantial risk in the event of another debt restructuring or an outright default among the PIIGS.
http://jlne.ws/tvu9TY
Citigroup Said to Face Suspension of Some Operations in Japan
Businessweek
Citigroup Inc., the third-biggest U.S. bank, will be ordered by regulators to suspend some operations in Japan after a probe revealed compliance violations, according to two people familiar with the matter.
http://jlne.ws/sREE8v
Germany's Word of the Year: 'Stress Test'
ABC News
"Stress test" has beaten out "leverage" in the race to become Germany's word of the year as the deepening debt crisis makes its mark on the language.
http://jlne.ws/tzW7IT
Brazil's Unemployment Rate Tumbled to Record Low 5.2 Percent in November
Bloomberg
Brazil's unemployment rate fell to its lowest on record in November, showing a resilience in Latin America's biggest economy that may limit policymakers ability to enact further rate cuts. Interest-rate futures rose.
http://jlne.ws/sQnSdr
RBA Rate Cut Reflected `Non-Trivial' Risk of Sharp Europe Slump
BusinessWeek
Australia's central bank lowered its benchmark interest rate this month because increased risks to global growth from Europe's sovereign-debt crisis overshadowed evidence the nation's mining boom is intensifying, minutes of its Dec. 6 meeting showed.
http://jlne.ws/rRMWLZ
New Zealand Economy Perks Up, but Rates on Hold
CNBC
New Zealand's economy grew at its fastest pace in almost two years in the September quarter as manufacturing and retail spending rose during the Rugby World Cup, but markets remained wary of the impact from the European debt crisis and continued to expect low interest rates for longer.
http://jlne.ws/tYXqSb
China Economy, Monetary Policy, Political Outlook
Bloomberg
Dec. 22 (Bloomberg) -- Andy Rothman, China macro strategist at CLSA Asia Pacific Markets, talks about the outlook for China's economy, central bank monetary policy and government in 2012.
http://jlne.ws/spzY7F
Disclaimer: The John Lothian, Environmental Markets, JLN Metals, JLN Managed Futures, JLN Interest Rates, JLN Options and JLN FX newsletters and blogs and MarketsWiki are products of John J. Lothian & Company, Inc. The opinions expressed in these publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
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Copyright 2011 John J. Lothian & Company, Inc. All Rights Reserved.
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starter
Federal Reserve Bank Of New York: Central Bank Imbalances In The Euro Area
Matthew Higgins and Thomas Klitgaard
The euro area sovereign debt crisis sparked an outflow of bank deposits from countries in the periphery to commercial banks in Germany and other core countries. The outflow highlighted a key aspect of the payments system linking national central banks in euro area countries. In particular, net outflows from private commercial banks in a given country are matched by credits to that country’s central bank, with those credits extended by central banks elsewhere in the euro area. In this post, it's explained how the credits affected the adjustment pressures faced by countries in the euro area during the ongoing debt crisis.
See the full Federal Reserve Bank Of New York report here.
------------------------------------------------------------------------------------------------------------------
SIFMA Issues 2012 Municipal Bond Issuance Survey
--Forecast shows $402 Billion in Issuance for 2012--
New York, NY, December 21, 2011—The Securities Industry and Financial Markets Association (SIFMA) today released its 2012 Municipal Bond Issuance Survey. Compiled from responses provided by large and regional municipal bond underwriters and dealers, the report forecasts what type of activity is expected in the taxable and tax-exempt municipal securities market in 2012.
Respondents expected total municipal issuance, both short- and long-term, to reach $402.0 billion in 2012, a significant recovery from their expectation of $342.0 billion in 2011. Additionally, excluding short-term notes, long-term issuance is also expected to recover in 2012, with a forecasted $347.0 billion total in 2012 compared with $288.0 billion in 2011.
See the entire survey here.
**CN: Survey respondents also offered relatively uniform views on interest rate trends in the coming year, generally expecting little to no change in rates throughout 2012.
Lead Stories
European Banks Rush to Grasp Lifeline
WSJ.com
Hundreds of euro-zone lenders took out €489.19 billion ($640 billion) in low-interest loans from the European Central Bank on Wednesday, as the currency area extended a massive financial lifeline to its struggling banking industry. The unexpectedly heavy demand from 523 banks for the three-year loans highlighted the severity of Europe's financial crisis, while also stirring some hopes that the action could help defuse it, or at least prevent it from getting worse.
http://jlne.ws/so9Csf
Bernanke Tells Senators Fed Plans No Aid to European Banks
BusinessWeek
Federal Reserve Chairman Ben S. Bernanke told Republican senators the Fed plans no additional aid to European banks amid the region's sovereign debt crisis, according to two lawmakers who attended the meeting.
http://jlne.ws/uECNms
Italian Parliament Approves Monti’s Budget
Bloomberg
Prime Minister Mario Monti’s emergency budget plan won final approval in Parliament today as Italy struggles to tame surging borrowing costs before facing 53 billion euros ($69 billion) in debt repayments early next year.
http://jlne.ws/umOnS5
PIMCO Cyclical Outlook: Deleveraging, Austerity and Europe’s Potential Minsky Moment
The year ahead will likely be very challenging for the global economy. Growth faces several hurdles that we believe collectively will impose a sense of greater uncertainty and increased volatility on financial markets. These hurdles include the need for accelerated balance sheet deleveraging, slowly creeping but surely rising risks of financial and economic de-globalization, and the constant drum beat of re-regulation, particularly in developed country banking systems.
http://jlne.ws/uRvsro
Boost from ECB lending seen limited
Reuters
Europe's banks borrowed nearly 490 billion euros from the European Central Bank at its first-ever offer of three-year loans on Wednesday, encouraging demand for the euro and stocks on hopes the funding will ease the two-year old debt crisis. But the very heavy take-up of the ECB money also highlighted the scale of the pressures European banks are under and some of the initial gains in asset prices were quickly given back.
http://jlne.ws/stcx0D
ECB's Mario Draghi Tells Financial Times More Resilient Financial System Needed
http://jlne.ws/uTXEg2
**CN: Draghi says a financial system with less debt and more capital is required.
Roubini: Euro Zone 'In Denial,' US Postpones Reforms
CNBC
Famous economist Nouriel Roubini, credited for predicting the financial crisis, made a plea to policymakers to take the tough action needed to address current economic problems, in an article published on the Financial Times website.
http://jlne.ws/vGIYF0
Federal Reserve says large banks should hold more capital to cushion against crisis
Washington Post
NEW YORK - The Federal Reserve on Tuesday said the largest U.S. banks and financial companies should hold extra cash on their balance sheets to cushion themselves against financial crises. The proposal by the chief U.S. banking regulator will affect banks with over $50 billion in assets. There are even stricter rules for companies with over $500 billion in assets such as JPMorgan Chase & Co.
http://jlne.ws/uxO7Df
Real Reasons That Bankers Don't Like Basel Rules: Clive Crook
Bloomberg
The Federal Reserve, according to reports, has decided that big U.S. banks will have to comply with an emerging new global rule on capital. It's a move the banks have fought, arguing that it will increase their costs and discourage lending.
http://jlne.ws/u8Oltm
Obama endorses McConnell payroll tax cut plan
USA Today
President Obama today endorsed a proposed compromise by the Senate Republican leader on the payroll tax cut impasse: to have House Republicans pass a temporary two-month extension, while Senate Democrats agree to negotiate a year-long extension at the same time.
http://jlne.ws/vbbxFv
NYSE-Deutsche Boerse Merger Given U.S. Approval Pending Direct Edge Sale
Bloomberg
The U.S. approved the $9 billion merger of NYSE Euronext (NYX) and Deutsche Boerse AG (DB1) on the condition that the German exchange sells its 31.5 percent stake in Direct Edge Holdings LLC to preserve competition among stock exchanges.
http://jlne.ws/tYxu5Q
Fannie Mae, Freddie Mac Sued by California in Foreclosure Probe
Bloomberg Businessweek
Fannie Mae and Freddie Mac were accused in a lawsuit by California Attorney General Kamala Harris of hindering her probe into mortgage lending and foreclosure practices.
http://jlne.ws/spoU7E
Daniel Mudd, ex-Fannie Mae CEO, takes leave of absence from hedge fund firm
The Washington Post
Former Fannie Mae chief executive Daniel Mudd, who was charged with fraud last week by the SEC, is taking a leave of absence from his job as chief executive of hedge fund manager Fortress Investment Group, the firm said Wednesday.
http://jlne.ws/tYdJSt
Municipal Bond ETFs Turn in Solid Year
Yahoo! Finance
Municipal bonds were one of the best-performing categories in fixed-income exchange traded funds in 2011 despite talk of widespread defaults earlier in the year. One of the largest muni bond ETFs is up about 12% year to date.
http://jlne.ws/tJUlbX
U.S. Faces 2013 Fitch AAA Downgrade Unless Deficit Cuts Made
Bloomberg Businessweek
The U.S.’s AAA rating will probably be cut by Fitch Ratings by the end of 2013 unless lawmakers are able to formulate a plan to reduce the budget deficit after next year’s congressional and presidential elections.
http://jlne.ws/sd39uZ
Freddie Mac: Record-Breaking Low Mortgage Rates for the Holidays
Press Release
Freddie Mac today released the results of its Primary Mortgage Market Survey, showing average fixed mortgage rates at or near all-time record lows helping to keep homebuyer affordability high. The 30-year fixed averaged 3.91 percent for the week, a new all-time low, dropping below last week's 3.94 percent, the previous record low. The 15-year fixed matched last week's all-time record low at 3.21 percent. Adjustable rate products also hit new all-time lows in this week's survey.
http://jlne.ws/t5vKag
Mortgage rates fall to historic lows again
AP/USA Today
The average rate on 30-year fixed mortgages fell to a record 3.91% this week, third time this year that rates have hit new lows. Freddie Mac says the rate on the 30-year home loan fell from 3.94% the previous week. The average on the 15-year fixed mortgage was unchanged at 3.21%. That's also a record.
http://jlne.ws/t6wSOB
ISDA: OTC Derivatives Market Analysis: Despite Increase in Notionals, Over 50% of IRS Market Is Cleared
Reuters/Press Release
The International Swaps and Derivatives Association, Inc. (ISDA) published today its analysis of the over-the-counter (OTC) derivatives market based on June 30, 2011 statistics. According to the ISDA analysis, the notional amount of OTC derivatives outstanding (adjusted to exclude FX transactions and for the impact of clearing) increased 18 percent from $416.7 trillion at year-end 2010 to $491.3 trillion at June 30, 2011. This increase in notional outstanding reverses declines in 2008, 2009 and 2010. From year-end 2007 through year-end 2010, the OTC derivatives markets decreased in size by approximately 12 percent when measured on this adjusted basis.
http://jlne.ws/rp8Vj9
Why The Fed Can't Be Counted On To Save The Economy
Forbes
The Federal Reserve was established in 1913 supposedly to maintain economic stability, but it presided over America’s worst depression (1930s), the worst peacetime inflation (mid-1960s to mid-1980s) and probably the worst asset bubble and bust (early 2000s to the present). In addition, there have been 18 recessions or depressions during the Fed era, generally the result of prior inflations.
http://jlne.ws/t1Lqe4
Feds approve RBC sale to PNC
Rocky Mount Telegram
WASHINGTON - The Federal Reserve has given approval for PNC Financial Services Group Inc. to purchase the U.S. retail operations and credit-card assets of Royal Bank of Canada.
http://jlne.ws/tnPXwQ
The Fed: 2012 to be Year of the Dove on Fed
Market Watch
The makeup of the Federal Open Market Committee in 2012 will be decidedly more dovish and willing to back Fed chairman Ben Bernanke's activist policies, Fed watchers said.
http://jlne.ws/shhiy1
U.S. 10-Year Yields May Fall to 1.5% in 2012, Deutsche Bank's Konstam Says
Bloomberg
Treasury 10-year note yields could drop to a record low 1.5 percent in 2012 as global growth concern persists and the Federal Reserve buys more debt to support the U.S. economic recovery, according to Deutsche Bank AG's Dominic Konstam.
http://jlne.ws/tYEDly
Treasury headquarters attains LEED Gold certification
Federal Times
The Treasury Department announced today that their headquarters has attained LEED Gold certification by the U.S. Green Building Council. Gold is the second-highest rating. The building was made more energy and water efficient, resulting in a 7 percent decrease in electricity use and a 53 percent decrease in steam use over 2008 levels.
http://jlne.ws/uAsrvx
Events
Fixed Income Markets 2012
January 24, 2012
Tabb Forum Looks At Changes Ahead And Staying Ahead In Fixed Incomes
http://jlne.ws/snQ3VO
Treasury Futures: Using International Fixed-Income and Money Market Spreads
January 31, 2012
The IFM Instructs On Using Fixed Income And Money Market Spreads
http://jlne.ws/u7MgUK
National Association of Home Builders' Show
February 10, 2012
Special Session With Fed's Bernanke Open To All Registered Attendees
http://jlne.ws/tEcqjW
Economic News
Unemployment applications lowest since April '08
CBS News
The number of people applying for unemployment benefits dropped last week to its lowest level since April 2008, extending a downward trend that shows the job market strengthening.
http://jlne.ws/vQmvBU
Unemployment Fell in Nearly All States in November
CNBC
Unemployment rates in almost all U.S. states dropped in November, and 45 states had jobless rates lower than the year before, U.S. Labor Department data showed Tuesday.
http://jlne.ws/vFEbZU
3rd straight decline puts jobless claims at April 2008 levels
Dow Jones Newswires/Chicago Tribune
New claims for unemployment benefits unexpectedly fell last week, reaching the lowest level since April 2008 and providing another sign of improvement for the weak labor market.
http://jlne.ws/tuSBjq
Housing Starts in U.S. Increase to Highest Level in a Year
Bloomberg Businessweek
Builders broke ground in November on the most houses in over a year, a sign that the market is stabilizing heading into 2012. Starts increased 9.3 percent to a 685,000 annual rate, exceeding the highest estimate of economists surveyed by Bloomberg News and the highest level since April 2010, Commerce Department figures showed today in Washington. Building permits, a proxy for future construction, also climbed to a more than one- year high.
http://jlne.ws/tkLMli
GDP Growth Revised Lower
WSJ.com
The U.S. economy expanded less than thought during the third quarter as consumer spending fell short of an earlier estimate, though signs point to stronger growth in the final months of the year.
http://jlne.ws/uWIrS9
Consumer Sentiment Rose More Than Forecast
Bloomberg
Confidence among U.S. consumers rose more than forecast in December, to a six-month high, as Americans began wrapping up their holiday spending. The Thomson Reuters/University of Michigan final index of consumer sentiment climbed to 69.9 from 64.1 at the end of November. The median estimate in a Bloomberg News survey called for 68 after a preliminary reading of 67.7. The gauge averaged 89 in the five years leading up to the recession that began in December 2007 and ended in June 2009.
http://jlne.ws/uiTarr
Exchanges, Clearing Houses & MTFs
SwapClear Enhancements Drive Additional $32.7 billion of IRS Client Clearing
PR Newswire via Yahoo! Finance
NEW YORK , Dec. 19, 2011 /PRNewswire/ -- LCH.Clearnet Limited (LCH.Clearnet), the world's leading independent clearinghouse, today announced that SwapClear, its interest rate swap (IRS) clearing service.
http://jlne.ws/tPoVIh
Firms & Banks
First Midwest Bancorp, Inc. Repurchases Warrant From U.S. Treasury
Marketwire
ITASCA, IL--(Marketwire - Dec 22, 2011) - First Midwest Bancorp, Inc. ("First Midwest" or the "Company") ( NASDAQ : FMBI ) announced today that it has repurchased the warrant the Company issued to the United States Department of the Treasury ("Treasury") as a part of the Capital Purchase Program ("CPP").
http://jlne.ws/unStjA
Massachusetts Saves as JPMorgan Beats Bank of America on Bond-Sale Bidding
Bloomberg
The competition between JPMorgan Chase & Co. (JPM) and Bank of America Merrill Lynch to be the top underwriter of municipal bonds offered by auction helped Massachusetts save $880,000 on a $400 million borrowing.
http://jlne.ws/s4i9xO
FINRA Fines Wells Fargo $2 Million Over Broker's Sales, Missed Discounts
Nasdaq
The Financial Industry Regulatory Authority fined Wells Fargo & Co. (WFC) $2 million for unsuitable sales of reverse convertible securities through one broker to 21 customers and for failing to provide sales charge discounts to unit investment trust transactions to eligible customers.
http://jlne.ws/uDhhCq
NYC pension funds want tougher Wall Street clawbacks
Yahoo! News
New York City's pension funds want three big Wall Street banks to impose tougher compensation-clawback rules for top executives. NYC Pension Funds and City Comptroller John Liu called on the boards of Goldman Sachs Group Inc, Morgan Stanley and JPMorgan Chase & Co to strengthen language in top executives' compensation agreements. The funds held $483.3 million worth of stock in the three banks as of Monday.
http://jlne.ws/rXCUd1
Jefferies shares close up 23%
CNN Money
The investment bank Jefferies has taken steps to shrink its assets, and fourth quarter results were "mediocre," according to CEO Richard Handler. Yet, for Handler, these results were a vindication, after rumors swirled in the wake of MF Global's collapse that Jefferies could swiftly suffer a similar fate.
http://jlne.ws/vpptXQ
Auctions & Statistics
Treasury prices fall after weak demand at an auction of $29 billion of 7-year notes
The Washington Post
U.S. Treasury prices fell Wednesday after an auction of $29 billion seven-year notes failed to generate strong demand from investors. The government had to pay a yield of 1.43 percent on the notes, sharply higher than the 1.38 percent yield the seven-year note was trading at prior to the sale.
http://jlne.ws/tudcmr
Spanish borrowing costs plunge in debt auction
AP
Spain's borrowing costs plummeted in a short-term debt auction Tuesday, indicating market confidence in the country's ability to handle its debt is recovering as conservative Mariano Rajoy prepared to take over as the new prime minister. The Treasury said it sold euro5.6 billion ($7.3 billion), way above the euro4.5 billion it had initially sought.
http://jlne.ws/rIBOtV
Regulators
CFTC Approves 30-Minute Delay in Swap-Trade Price Reporting
Bloomberg Businessweek
Prices for swaps traded on so-called swap execution facilities or exchanges will be delayed for 30 minutes under a rule approved by the U.S. Commodity Futures Trading Commission.
http://jlne.ws/tWuyda
CFTC sheds light on real-time reporting of swaps
Reuters
Wall Street will be required to report complex swap trades in "real time" under a final rule the U.S. futures regulator approved on Tuesday, moving to lift the veil on the murky $700 trillion market, but the agency delayed a decision on block trades until next year.
http://jlne.ws/rLN9BE
FINRA spent $280K lobbying in third quarter
Yahoo! Finance
The Financial Industry Regulatory Authority, the securities industry's self-policing organization, spent $280,000 in the third quarter to lobby on regulation of brokers and investment advisers, and on new rules putting the financial overhaul law into effect, a disclosure report shows.
http://jlne.ws/tWk7BN
Federal Reserve Bank of San Francisco Elects Megan Clubb and Richard Galanti to its Board of Directors
Business Wire via Yahoo! Finance
The Federal Reserve Bank of San Francisco announced the election of Ms. Megan Clubb, president and CEO of Baker Boyer National Bank in Walla Walla, Washington, and Mr. Richard Galanti, executive vice president, CFO, and director of Costco Wholesale Corporation in Issaquah, Washington to its board of directors.
http://jlne.ws/sklVrk
Lacker sees no need for Fed to ease
Reuters via Yahoo! News
CHARLOTTE (Reuters) - The Federal Reserve is unlikely to need to ease monetary policy further given the country's steady if moderate pace of economic growth, Richmond Fed President Jeffrey Lacker said on Monday. Lacker, an inflation hawk who will rotate into a voting seat in the policy-setting Federal Open Market Committee next year, said he expects the economy to expand.
http://jlne.ws/w4ShA5
OTC
ISDA Updates OTC Derivatives Market Analysis: Despite Increase in Notionals, Over 50% of IRS Market Is Cleared
Yahoo! Finance
According to the ISDA analysis, the notional amount of OTC derivatives outstanding (adjusted to exclude FX transactions and for the impact of clearing) increased 18 percent from $416.7 trillion at year-end 2010 to $491.3 trillion at June 30, 2011. This increase in notional outstanding reverses declines in 2008, 2009 and 2010. From year-end 2007 through year-end 2010, the OTC derivatives markets decreased in size by approximately 12 percent when measured on this adjusted basis.
http://jlne.ws/s3SQK8
ICE Recognised for Leading Role in Emissions Markets
Yahoo! Finance
IntercontinentalExchange, a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, has been recognised as "best exchange" in four categories by Environmental Finance and Carbon Finance Magazine in its 12th Carbon Finance Annual Market Survey.
http://jlne.ws/sOQYvG
Global News
U.K. Budget Deficit Narrowed More Than Forecast in November
Bloomberg
Britain’s budget deficit narrowed more than economists forecast in November as tax revenue rose and the government’s fiscal squeeze restrained spending.
http://jlne.ws/taplTs
Japan's trade deficit widens in November
Market Watch
Japan posted its second straight trade deficit in November, the Ministry of Finance reported Wednesday, with the trade gap growing to 684.7 billion ($8.79 billion) from ¥273.8 billion in October. The deficit was also wider than a Dow Jones Newswires survey median forecast of ¥440 billion. Exports for the month were 4.5% lower than those a year earlier, while imports rose 11.4%.
http://jlne.ws/utlg0E
Sweden Lowers Repo Rate First Time Since 2009 As Euro Crisis Dampens Growth
Nasdaq
The Swedish central bank on Tuesday decided to cut its benchmark repo rate for the first time since July 2009. Additionally, the bank lowered the repo rate path as recent economic developments in the euro area dampened domestic economic activity.
http://jlne.ws/stNBLu
Credit Suisse Races UBS Building Buffers in Fortress Switzerland
Businessweek
UBS AG and Credit Suisse Group AG, Switzerland’s largest banks, are finding that the advantages of Europe’s toughest capital requirements are helping offset the costs as the region’s sovereign-debt crisis escalates.
http://jlne.ws/tCY5Ew
French Banks Won't Be Able To Handle Inevitable Italian Restructuring
Forbes
Despite the latest attempt by the European Central Bank to kick the proverbial can far down the road, the Eurozone remains under heavy pressure, and France’s AAA credit rating hangs from a thread. According to research by Nomura, France’s exposure to peripheral Europe tops €680 billion ($887 billion), more than 25% of its GDP, putting its banks at substantial risk in the event of another debt restructuring or an outright default among the PIIGS.
http://jlne.ws/tvu9TY
Citigroup Said to Face Suspension of Some Operations in Japan
Businessweek
Citigroup Inc., the third-biggest U.S. bank, will be ordered by regulators to suspend some operations in Japan after a probe revealed compliance violations, according to two people familiar with the matter.
http://jlne.ws/sREE8v
Germany's Word of the Year: 'Stress Test'
ABC News
"Stress test" has beaten out "leverage" in the race to become Germany's word of the year as the deepening debt crisis makes its mark on the language.
http://jlne.ws/tzW7IT
Brazil's Unemployment Rate Tumbled to Record Low 5.2 Percent in November
Bloomberg
Brazil's unemployment rate fell to its lowest on record in November, showing a resilience in Latin America's biggest economy that may limit policymakers ability to enact further rate cuts. Interest-rate futures rose.
http://jlne.ws/sQnSdr
RBA Rate Cut Reflected `Non-Trivial' Risk of Sharp Europe Slump
BusinessWeek
Australia's central bank lowered its benchmark interest rate this month because increased risks to global growth from Europe's sovereign-debt crisis overshadowed evidence the nation's mining boom is intensifying, minutes of its Dec. 6 meeting showed.
http://jlne.ws/rRMWLZ
New Zealand Economy Perks Up, but Rates on Hold
CNBC
New Zealand's economy grew at its fastest pace in almost two years in the September quarter as manufacturing and retail spending rose during the Rugby World Cup, but markets remained wary of the impact from the European debt crisis and continued to expect low interest rates for longer.
http://jlne.ws/tYXqSb
China Economy, Monetary Policy, Political Outlook
Bloomberg
Dec. 22 (Bloomberg) -- Andy Rothman, China macro strategist at CLSA Asia Pacific Markets, talks about the outlook for China's economy, central bank monetary policy and government in 2012.
http://jlne.ws/spzY7F
Disclaimer: The John Lothian, Environmental Markets, JLN Metals, JLN Managed Futures, JLN Interest Rates, JLN Options and JLN FX newsletters and blogs and MarketsWiki are products of John J. Lothian & Company, Inc. The opinions expressed in these publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
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Rabu, 21 Desember 2011
Top Interest Rate Headlines 12-21-2011: ISDA Updates OTC Derivatives Market Analysis: Despite Increase in Notionals, Over 50% of IRS Market Is Cleared
U.S. Faces ’13 Fitch Downgrade Without Deficit Cuts
http://jlne.ws/unc02B
Indignant rich round on protest movement
http://jlne.ws/sp8Vw9
ISDA Updates OTC Derivatives Market Analysis: Despite Increase in Notionals, Over 50% of IRS Market Is Cleared
http://jlne.ws/vnz2pN
U.S. in $335 mln settlement with B. of A.
http://jlne.ws/ugcDdM
Italian banks tap 116 billion euros of ECB loans
http://jlne.ws/uRoPbr
Are Treasuries the new JGBs?
http://jlne.ws/ur6Tbi
Similarities in Form PF and ESMA guidance may signal emergence of global finance regulatory framework
http://jlne.ws/rWQVT9
MF Global U.S. Trustee Pursuing $700M In Client Funds Held In UK
http://jlne.ws/rz0WJD\
S&P Lowers Hungary Ratings To 'BB+/B'; Outlook Negative
http://jlne.ws/uY5fBT
UBS Adds a Hire From MF Global
http://jlne.ws/ueQAKC
The ECB Long-Term Repo Operation is about price not quantity
http://jlne.ws/s25IL6
PIMCO | Global Central Bank Focus - Hot Potato
http://jlne.ws/s810Zh
Fed ‘Punted’ on Capital, Liquidity Limits
http://jlne.ws/tueib6
JPM Chase Tops Investment Bank Rankings
http://jlne.ws/tHOZ3O
http://jlne.ws/unc02B
Indignant rich round on protest movement
http://jlne.ws/sp8Vw9
ISDA Updates OTC Derivatives Market Analysis: Despite Increase in Notionals, Over 50% of IRS Market Is Cleared
http://jlne.ws/vnz2pN
U.S. in $335 mln settlement with B. of A.
http://jlne.ws/ugcDdM
Italian banks tap 116 billion euros of ECB loans
http://jlne.ws/uRoPbr
Are Treasuries the new JGBs?
http://jlne.ws/ur6Tbi
Similarities in Form PF and ESMA guidance may signal emergence of global finance regulatory framework
http://jlne.ws/rWQVT9
MF Global U.S. Trustee Pursuing $700M In Client Funds Held In UK
http://jlne.ws/rz0WJD\
S&P Lowers Hungary Ratings To 'BB+/B'; Outlook Negative
http://jlne.ws/uY5fBT
UBS Adds a Hire From MF Global
http://jlne.ws/ueQAKC
The ECB Long-Term Repo Operation is about price not quantity
http://jlne.ws/s25IL6
PIMCO | Global Central Bank Focus - Hot Potato
http://jlne.ws/s810Zh
Fed ‘Punted’ on Capital, Liquidity Limits
http://jlne.ws/tueib6
JPM Chase Tops Investment Bank Rankings
http://jlne.ws/tHOZ3O
SIFMA: FHFA Proposal Would Raise Cost of Borrowing for Consumers
SIFMA: FHFA Proposal Would Raise Cost of Borrowing for Consumers
Release Date: December 21, 2011
Contact: Andrew DeSouza, 202-962-7390, adesouza@sifma.org
SIFMA: FHFA Proposal Would Raise Cost of Borrowing for Consumers
New York, NY, December 21, 2011–SIFMA today filed a comment letter on the Federal Housing Finance Administration’s (FHFA) Alternative Mortgage Servicing Compensation Discussion Paper.
While SIFMA respects FHFA’s interest in aligning servicers’ financial interests and incentives with those of other pertinent parties, particularly those of investors, it has not seen any effort by FHFA to prove that case. The servicing industry compensation model, a subject critical to the soundness of housing and the more general economy, should not be subjected to radical change without strong research and proof. That has not been shown. Accordingly, SIFMA very strongly believes that changes to the structure of mortgage servicing compensation should not increase the cost of credit for mortgage borrowers, and is concerned that each of the fee-for-service and reserve fund approaches proposed by the FHFA proposals would do that.
Because the merits of the proposed changes are either illusory or have yet to be proved, SIFMA believes FHFA should not implement either of the proposals it outlines in its discussion paper at this time. Instead, SIFMA encourages FHFA to work more closely with the securitization industry to determine if there is a need to make changes in markets for Fannie Mae and Freddie Mac mortgage-backed securities (MBS) and, if so, what the most effective changes would look like.
In particular, SIFMA stresses that the proposed “fee for service” approach would make mortgages more expensive for nearly everyone in the country. Under this approach, servicers would receive a set dollar fee per loan for performing loan servicing, and separate compensation for distressed loans. This approach would severely impair liquidity in the “To-Be-Announced” (TBA) markets for Fannie Mae and Freddie Mac MBS, and therefore would increase borrowing costs for consumers.
“Currently, the Agency markets fund almost all residential mortgage credit in the United States. It is critical to ensure that any changes to the structure of the market do not impair its ability to meet the credit needs of American consumers,” said Richard Dorfman, managing director and head of SIFMA’s Securitization Group. “Homogeneity and stability are key underpinnings of this market. Securities traded in these markets must be fungible, and above all, attractive to investors.”
As an alternative, FHFA proposes a regime whereby servicers continue to be compensated with a strip of income based on the balance of the loans in a pool and a reserve account would be created, intended to cover costs for servicing non-performing loans. This proposal would represent a less dramatic change from the current regime but SIFMA believes this approach would still reduce TBA market liquidity and increase costs for mortgage borrowers. Therefore SIFMA urges FHFA to continue discussions with participants in the markets for Agency MBS before implementing any change.
The comment letter can be found here.
-30-
The Securities Industry and Financial Markets Association (SIFMA) brings together the shared interests of hundreds of securities firms, banks and asset managers. SIFMA's mission is to support a strong financial industry, investor opportunity, capital formation, job creation and economic growth, while building trust and confidence in the financial markets. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.
Release Date: December 21, 2011
Contact: Andrew DeSouza, 202-962-7390, adesouza@sifma.org
SIFMA: FHFA Proposal Would Raise Cost of Borrowing for Consumers
New York, NY, December 21, 2011–SIFMA today filed a comment letter on the Federal Housing Finance Administration’s (FHFA) Alternative Mortgage Servicing Compensation Discussion Paper.
While SIFMA respects FHFA’s interest in aligning servicers’ financial interests and incentives with those of other pertinent parties, particularly those of investors, it has not seen any effort by FHFA to prove that case. The servicing industry compensation model, a subject critical to the soundness of housing and the more general economy, should not be subjected to radical change without strong research and proof. That has not been shown. Accordingly, SIFMA very strongly believes that changes to the structure of mortgage servicing compensation should not increase the cost of credit for mortgage borrowers, and is concerned that each of the fee-for-service and reserve fund approaches proposed by the FHFA proposals would do that.
Because the merits of the proposed changes are either illusory or have yet to be proved, SIFMA believes FHFA should not implement either of the proposals it outlines in its discussion paper at this time. Instead, SIFMA encourages FHFA to work more closely with the securitization industry to determine if there is a need to make changes in markets for Fannie Mae and Freddie Mac mortgage-backed securities (MBS) and, if so, what the most effective changes would look like.
In particular, SIFMA stresses that the proposed “fee for service” approach would make mortgages more expensive for nearly everyone in the country. Under this approach, servicers would receive a set dollar fee per loan for performing loan servicing, and separate compensation for distressed loans. This approach would severely impair liquidity in the “To-Be-Announced” (TBA) markets for Fannie Mae and Freddie Mac MBS, and therefore would increase borrowing costs for consumers.
“Currently, the Agency markets fund almost all residential mortgage credit in the United States. It is critical to ensure that any changes to the structure of the market do not impair its ability to meet the credit needs of American consumers,” said Richard Dorfman, managing director and head of SIFMA’s Securitization Group. “Homogeneity and stability are key underpinnings of this market. Securities traded in these markets must be fungible, and above all, attractive to investors.”
As an alternative, FHFA proposes a regime whereby servicers continue to be compensated with a strip of income based on the balance of the loans in a pool and a reserve account would be created, intended to cover costs for servicing non-performing loans. This proposal would represent a less dramatic change from the current regime but SIFMA believes this approach would still reduce TBA market liquidity and increase costs for mortgage borrowers. Therefore SIFMA urges FHFA to continue discussions with participants in the markets for Agency MBS before implementing any change.
The comment letter can be found here.
-30-
The Securities Industry and Financial Markets Association (SIFMA) brings together the shared interests of hundreds of securities firms, banks and asset managers. SIFMA's mission is to support a strong financial industry, investor opportunity, capital formation, job creation and economic growth, while building trust and confidence in the financial markets. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.
Selasa, 20 Desember 2011
Top Interest Rate Headlines 12-20-2011: Fed Proposes New Capital Rules for Banks
Fed Proposes New Capital Rules for Banks
http://jlne.ws/rBWjUV
Moody's gives UK high scores but warns of 'challenges'
http://jlne.ws/vc1xWT
IMF Urges European Firewall Around Ireland
http://jlne.ws/thOAVw
Spanish Borrowing Costs Plunge In Debt Auction
http://jlne.ws/sufSqV
Fed Strengthens Its Tools for Preventing Collapse of Large Financial Firms
http://jlne.ws/vaRKCV
Fitch cuts UniCredit, puts Italy, Spain's banks on watch
http://jlne.ws/vSyoJJ
Economic geography: Moving toward stagnation
http://jlne.ws/uIzEjM
Europe set to delay derivatives reforms
http://jlne.ws/tJNggj
Spain's borrowing costs fall sharply
http://jlne.ws/sHfVCf
Nov. housing starts up 9.3% to 685,000 annual rate
http://jlne.ws/uL9rDR
http://jlne.ws/rBWjUV
Moody's gives UK high scores but warns of 'challenges'
http://jlne.ws/vc1xWT
IMF Urges European Firewall Around Ireland
http://jlne.ws/thOAVw
Spanish Borrowing Costs Plunge In Debt Auction
http://jlne.ws/sufSqV
Fed Strengthens Its Tools for Preventing Collapse of Large Financial Firms
http://jlne.ws/vaRKCV
Fitch cuts UniCredit, puts Italy, Spain's banks on watch
http://jlne.ws/vSyoJJ
Economic geography: Moving toward stagnation
http://jlne.ws/uIzEjM
Europe set to delay derivatives reforms
http://jlne.ws/tJNggj
Spain's borrowing costs fall sharply
http://jlne.ws/sHfVCf
Nov. housing starts up 9.3% to 685,000 annual rate
http://jlne.ws/uL9rDR
Top Interest Rate Headlines 12-20-2011: ISDA Publishes Draft OTC Taxonomies for a 30-Day Comment Period
ISDA Publishes Draft OTC Taxonomies for a 30-Day Comment Period
NEW YORK, December 20, 2011 – The International Swaps and Derivatives Association, Inc. (ISDA) published today its draft taxonomies for credit, interest rate, commodity, foreign exchange (FX) and equity derivatives. These taxonomies are currently open for a 30-day comment period.
As part of ISDA’s ongoing efforts to improve the OTC derivatives infrastructure, ISDA developed an implementation plan in June 2011 to define a standardized taxonomy (classification) for OTC derivatives and develop Unique Product Identifiers (UPI). The ISDA OTC Taxonomies and UPI will support regulatory mandates to increase transparency through public and regulatory reporting. In addition to the coordination of the market discussions that led to the proposed taxonomies for the different asset classes, ISDA put a governance model in place to oversee the development of the taxonomies and ensure proper support going forward. The final taxonomies will be included in the FpML data standard to facilitate the reporting process. Coordination with other international standards such as ISO to align with the ISDA taxonomies is ongoing.
The draft OTC taxonomies, as well as the ISDA OTC Taxonomies Rules of Operations, are available on the ISDA website.
For More Information, Please Contact:
Lauren Dobbs, ISDA New York, +1 212 901 6019, ldobbs@isda.org
Rebecca O’Neill, ISDA London, +44 203 088 3586, roneill@isda.org
Donna Chan, ISDA Hong Kong, +852 2200 5906, dchan@isda.org
About ISDA
Since 1985, ISDA has worked to make the global over-the-counter (OTC) derivatives markets safer and more efficient. Today, ISDA is one of the world’s largest global financial trade associations, with over 825 member institutions from 58 countries on six continents. These members include a broad range of OTC derivatives market participants: global, international and regional banks, asset managers, energy and commodities firms, government and supranational entities, insurers and diversified financial institutions, corporations, law firms, exchanges, clearinghouses and other service providers. Information about ISDA and its activities is available on the Association's web site: www.isda.org.
ISDA is a registered trademark of the International Swaps and Derivatives Association, Inc.
NEW YORK, December 20, 2011 – The International Swaps and Derivatives Association, Inc. (ISDA) published today its draft taxonomies for credit, interest rate, commodity, foreign exchange (FX) and equity derivatives. These taxonomies are currently open for a 30-day comment period.
As part of ISDA’s ongoing efforts to improve the OTC derivatives infrastructure, ISDA developed an implementation plan in June 2011 to define a standardized taxonomy (classification) for OTC derivatives and develop Unique Product Identifiers (UPI). The ISDA OTC Taxonomies and UPI will support regulatory mandates to increase transparency through public and regulatory reporting. In addition to the coordination of the market discussions that led to the proposed taxonomies for the different asset classes, ISDA put a governance model in place to oversee the development of the taxonomies and ensure proper support going forward. The final taxonomies will be included in the FpML data standard to facilitate the reporting process. Coordination with other international standards such as ISO to align with the ISDA taxonomies is ongoing.
The draft OTC taxonomies, as well as the ISDA OTC Taxonomies Rules of Operations, are available on the ISDA website.
For More Information, Please Contact:
Lauren Dobbs, ISDA New York, +1 212 901 6019, ldobbs@isda.org
Rebecca O’Neill, ISDA London, +44 203 088 3586, roneill@isda.org
Donna Chan, ISDA Hong Kong, +852 2200 5906, dchan@isda.org
About ISDA
Since 1985, ISDA has worked to make the global over-the-counter (OTC) derivatives markets safer and more efficient. Today, ISDA is one of the world’s largest global financial trade associations, with over 825 member institutions from 58 countries on six continents. These members include a broad range of OTC derivatives market participants: global, international and regional banks, asset managers, energy and commodities firms, government and supranational entities, insurers and diversified financial institutions, corporations, law firms, exchanges, clearinghouses and other service providers. Information about ISDA and its activities is available on the Association's web site: www.isda.org.
ISDA is a registered trademark of the International Swaps and Derivatives Association, Inc.
Senin, 19 Desember 2011
Top Interest Rate Headlines 12-19-2011: Philly Fed Sees No evidence BLS More Likely To Underestimate Job Growth During Expansions
Philly Fed sees no evidence BLS is more likely to underestimate job growth during expansions
http://jlne.ws/uI6AJP
Eurozone agrees 150-bn-euro IMF bailout boost: source
http://jlne.ws/sxiFL6
CFTC Issues Final Order Amending the Effective Date for Swap Regulation
http://jlne.ws/vImdkU
Dodd-Frank: Fed’s final rule requires large bank holding companies to submit annual capital plans
http://bit.ly/uPkvGK
S&P Downgrade Proves Absurd as Investors Prefer U.S.
http://jlne.ws/sdAkI4
NAHB housing market index +2 points in Nov, beating expectations
http://jlne.ws/uQhql9
Investors are furious that they can't get back the gold and silver they stashed with MF Global
http://jlne.ws/uSX9xI
http://jlne.ws/uI6AJP
Eurozone agrees 150-bn-euro IMF bailout boost: source
http://jlne.ws/sxiFL6
CFTC Issues Final Order Amending the Effective Date for Swap Regulation
http://jlne.ws/vImdkU
Dodd-Frank: Fed’s final rule requires large bank holding companies to submit annual capital plans
http://bit.ly/uPkvGK
S&P Downgrade Proves Absurd as Investors Prefer U.S.
http://jlne.ws/sdAkI4
NAHB housing market index +2 points in Nov, beating expectations
http://jlne.ws/uQhql9
Investors are furious that they can't get back the gold and silver they stashed with MF Global
http://jlne.ws/uSX9xI
Jumat, 16 Desember 2011
Top Interest Rate Headlines 12-16-2011: CFTC Commissioner Jill E. Sommers Responds to Concerned Customers of MF Global, Inc.
CFTC Commissioner Jill E. Sommers Responds to Concerned Customers of MF Global, Inc.
http://jlne.ws/uDBVkf
House GOP unveils $1 trillion spending bill
http://jlne.ws/sSVVag
JPMorgan Chase Mortgage Securities Investors Seeking Put-backs in $95 Billion Pool
http://jlne.ws/u5RFj7
Moody’s warns Ontario its credit rating is at risk
http://jlne.ws/uYeVWl
Banks resist European pressure to buy government debt
http://jlne.ws/s7Vx0L
CME Sues Corzine [Video]
http://jlne.ws/vSQKq9
House Passes Bill To Keep Government Funded; Senate To Follow
http://jlne.ws/rDmVqK
Fitch says comprehensive solution to eurozone crisis is 'beyond reach' - statement in full - Telegraph
http://jlne.ws/sWeQqA
The Associated Press: Fitch puts 6 eurozone countries on downgrade watch
http://jlne.ws/sRCFOY
Fed's Fisher repeats opposition to further easing
http://jlne.ws/u9UAxE
Fed, Treasury officials testify on euro crisis
http://jlne.ws/sKWgJ5
MF Global Told CME It Used Customer Funds: Timeline
http://jlne.ws/sG0Mdn
Fannie Builds Servicing Business via Secret Contracts
http://jlne.ws/uBtvlv
Europe crisis serious risk to outlook: Treasury
http://jlne.ws/t81nTY
Regulators sue former top execs at Fannie, Freddie
http://jlne.ws/rvFQLR
Fed’s Dudley Doesn’t Expect More Action to Shield U.S. From Europe Crisis
http://jlne.ws/rS8qnn
http://jlne.ws/uDBVkf
House GOP unveils $1 trillion spending bill
http://jlne.ws/sSVVag
JPMorgan Chase Mortgage Securities Investors Seeking Put-backs in $95 Billion Pool
http://jlne.ws/u5RFj7
Moody’s warns Ontario its credit rating is at risk
http://jlne.ws/uYeVWl
Banks resist European pressure to buy government debt
http://jlne.ws/s7Vx0L
CME Sues Corzine [Video]
http://jlne.ws/vSQKq9
House Passes Bill To Keep Government Funded; Senate To Follow
http://jlne.ws/rDmVqK
Fitch says comprehensive solution to eurozone crisis is 'beyond reach' - statement in full - Telegraph
http://jlne.ws/sWeQqA
The Associated Press: Fitch puts 6 eurozone countries on downgrade watch
http://jlne.ws/sRCFOY
Fed's Fisher repeats opposition to further easing
http://jlne.ws/u9UAxE
Fed, Treasury officials testify on euro crisis
http://jlne.ws/sKWgJ5
MF Global Told CME It Used Customer Funds: Timeline
http://jlne.ws/sG0Mdn
Fannie Builds Servicing Business via Secret Contracts
http://jlne.ws/uBtvlv
Europe crisis serious risk to outlook: Treasury
http://jlne.ws/t81nTY
Regulators sue former top execs at Fannie, Freddie
http://jlne.ws/rvFQLR
Fed’s Dudley Doesn’t Expect More Action to Shield U.S. From Europe Crisis
http://jlne.ws/rS8qnn
Kamis, 15 Desember 2011
December 15, 2011: Fitch Downgrades Banks, Including Bank of America and Goldman
December 15, 2011
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starter
Celent Says Long-Term Investors Have Derisked Portfolios Due To Regulatory, Accounting Changes
According to a new report from financial research firm Celent, the financial crisis and regulatory changes - coupled with falling returns in traditional equities - have changed the long-term dynamics for buy-side firms. Of more immediate importance to the financial markets is that many long-term investors have derisked their portfolios in response to regulatory and accounting changes, including a move toward mark-to-market accounting and stricter capital requirements, as well as a lower institutional tolerance for risk. This shift has led many institutions to increase their buffers of liquid investments - with some institutions shunning illiquid investments altogether - and reduce the capital allocated to risky and volatile assets.
See the full report here:Celent: Derivatives and Investment Risk Solutions for the Buy Side: Optimizing the Risk-Return Equation
Six in Ten Americans Still Likely to Cut Back on Dining and Entertainment
NEW YORK , N.Y. - For the last several years the economy has been one of the hottest topics, and everyone - including politicians, economists, retailers, business owners, employees and consumers - has been following closely. Much has been said about Americans' cutting back, budgeting, and possibly, a "new normal". The Harris Poll has been tracking Americans' spending and savings plans for over three years and on the whole has not seen a tremendous amount of change. This month, similar to the last time, the questions were asked in May 2011, six in 10 U.S. adults say they are likely to decrease spending on eating out at restaurants (61 percent) and on entertainment (58 percent) within the next six months. Despite reducing their spending in these non-essential areas, Americans do not seem to indicate overwhelmingly that they will be saving or investing more in the coming six months as 51 percent say they are likely to, and 49 percent say they are unlikely to do so. These numbers have remained generally constant since November of 2008, when 49 percent said they would save or invest more money.
See the full release here.
--Christine Nielsen
Lead Stories
Fitch Downgrades Banks, Including Bank of America and Goldman
Fitch Ratings has today taken rating actions on nine global trading and universal banks (GTUBs). The actions complete its assessment of the GTUBs, carried out in conjunction with a broad review of the ratings for the largest banking institutions in the world. Fitch has downgraded eight issuers’ Viability Ratings (VRs) and affirmed one, removing them from Rating Watch Negative where they were placed on Oct. 13, 2011.
http://jlne.ws/uqRggO
Investors Still Reluctant to Buy Euro Zone Bank Debt
CNBC
Warnings from rating agencies that they might broadly downgrade euro zone sovereign debt , in which the region's banks have a significant stake, have added to investors' reluctance to lend their dollars.
http://jlne.ws/vHz3D8
Bernanke worried Europe could hurt U.S.
CNN Money
Federal Reserve Board Chairman Ben Bernanke told Republican senators on Capitol Hill on Wednesday that he's concerned about European sovereign debt problems spilling over to the U.S. economy, according to senators.
http://jlne.ws/tid8RG
Bernanke Tells Senators Federal Reserve Has No Plan to Aid European Banks
Bloomberg
Federal Reserve Chairman Ben S. Bernanke told Republican senators the Fed has no plan to provide aid to European banks amid the region's sovereign debt crisis, according to two lawmakers who attended the meeting.
http://jlne.ws/usnweT
FOMC: Global Financial Markets Pose Downside Risk to U.S. Economic Outlook
Wall Street Cheat Sheet via Yahoo! Finance
To fulfill its dual mandate to foster maximum employment and price stability, the Federal Open Market Committee has decided to continue Operation Twist and keep interest rates at record lows.
http://jlne.ws/vC3Y5C
Text of Statement by Federal Reserve
New York Times
The full text of the statement released on Tuesday by the Federal Open Market Committee of the Federal Reserve.
http://jlne.ws/s8WZyF
FOMC Statement:: Economy Expanding "Moderately," Global Growth Slowing
Calculated Risk
Information received since the Federal Open Market Committee met in November suggests that the economy has been expanding moderately, notwithstanding some apparent slowing in global growth . While indicators point to some improvement in overall labor market conditions, the unemployment rate remains elevated.
http://jlne.ws/trBFrl
Federal Reserve keeps monetary policy on ice
CNN Money
The Federal Reserve acknowledged the job market has improved slightly, but said the economy's immediate future remains on pins and needles.
http://jlne.ws/tBnCXR
How Federal Reserve policymakers affect the economy
The Post-Standard
The Federal Reserve's chief policymaking group, the Federal Open Market Committee, has vast power over the economy through its ability to set monetary policy.
http://jlne.ws/vhBqyj
What to Look for from the Fed in 2012
U.S.News & World Report LP via Yahoo! News
The Fed is treading water for now, but how long will it last?
http://jlne.ws/uR214f
Senate panel OKs bank critic Hoenig to FDIC
Market Watch
WASHINGTON (MarketWatch) - The Senate Banking Committee on Tuesday approved White House nominee Thomas Hoenig -- who recently retired as Kansas City Fed president - to be Federal Deposit Insurance Corp. vice chairman. Hoenig must still be approved by the full Senate before he can begin work at the agency.
http://jlne.ws/sDE8yd
Mortgage Rates Sink to New Low
PR Newswire via Yahoo! Finance
NEW YORK , Dec. 15, 2011 /PRNewswire/ -- The 30-year fixed mortgage rate fell to a new record low of 4.19 percent, according to Bankrate.com's weekly national survey.
http://jlne.ws/tIqEQc
Ben Bernanke Is an Ordinary American Homeowner
New York Magazine
Fed chairman Ben Bernanke, like lots of people, still owes the bulk of money on the $850,000 Washington, D.C. home he purchased in 2004. Like lots of people, he had to send proof of employment and pay stubs in order to get a loan. Also, like lots of people, he's refinanced a couple of times in the past couple of years at key junctures, reports.
http://jlne.ws/vfaBmu
**CN: He's just Benny From The Block.
Ben's birthday a bust for marts
New York Post
Ben Bernanke marked his 58th birthday by being Wall Street's party pooper.
http://jlne.ws/sc7yaU
Regulators know where MF Global funds went
Reuters via Yahoo! News
WASHINGTON (Reuters) - Regulators now have a more complete picture of money transfers in the final days of bankrupt brokerage MF Global, but must sort out which transactions were legitimate before more money can be released to customers, a top official told Reuters on Wednesday.
http://jlne.ws/udsXRU
MF Global puts harsh light on self-regulation
Reuters via Yahoo! News
WASHINGTON (Reuters) - Two weeks after MF Global's collapse, officials from the Commodity Futures Trading Commission briefed Senate staff on the brokerage firm's final days. When asked about reports that the brokerage firm had written checks that bounced when customers tried to cash them, the regulators had an admission that surprised the room: they didn't know about the bad checks."
http://jlne.ws/rq5NZi
MF Global Probe Said to Investigate Use of Funds to Post Margin
BusinessWeek
U.S. authorities are investigating whether MF Global Holdings Ltd. intentionally tapped customer funds to cover the bankrupt firm's margin payments on European government bond trades while lawmakers press top company officials on the possible misuse of as much as $1.2 billion.
http://jlne.ws/vWp56h
MF's Corzine said to know of customer-backed loan
Reuters via Yahoo! News
WASHINGTON (Reuters) - An MF Global employee told regulators that former chief Jon Corzine knew that the now-bankrupt brokerage firm used customer money to lend to a European affiliate, a CME Group executive said on Tuesday.
http://jlne.ws/vigGO3
Corzine Says He Didn't Order Misuse of Funds at MF Global
BusinessWeek
Jon S. Corzine, the former chairman and chief executive officer of MF Global Holdings Ltd., told lawmakers he "never gave any instructions to misuse customer funds" and didn't give orders that could be misconstrued.
http://jlne.ws/tCDVwo
Corzine Visited NY Fed as MF Global Sought Primary Dealer Status
BusinessWeek
Jon S. Corzine, former chairman and chief executive officer of MF Global Holdings Ltd., met with New York Federal Reserve officials in 2010 as the broker sought to become a primary dealer of government securities, Thomas C. Baxter Jr., general counsel of the New York Fed, said.
http://jlne.ws/u66EdP
Fire Bernanke? Not So Fast, Mr. Gingrich
Wall Street Journal Blogs
Newt Gingrichs promise to fire Fed chairman Bernanke isn't as easily executed as the Republican presidential nominee has often made it sound on the stump.
http://jlne.ws/ufJ3QH
Banks face E350bn Basel III shortfall
By Brooke Masters in London - Financial Times
European banks will have to raise nearly E200bn ($260bn) in new capital or cut their balance sheets by nearly 20 per cent, to achieve the tougher new Basel III banking reform rules that start taking effect in 2013, a new study has found.
http://jlne.ws/uBVBsA
Fitch cuts ratings on 5 European banks
AP via Yahoo! News
Fitch Ratings on Wednesday downgraded the debt ratings for five major European commercial banks and cooperative banking groups, citing the eurozone crisis and stronger headwinds facing the banking sector.
http://jlne.ws/sKLaSX
U.S. runs $137 billion deficit in November
Market Watch
WASHINGTON (MarketWatch) -- The federal government ran a budget deficit of $137 billion in November, the Treasury Department reported Monday, keeping its finances in the red in the second month of the fiscal year. The government spent $290 billion in the month and took in $152 billion, pushing the fiscal year-to-date deficit to $236 billion. For the first two months of the year, the U.S. is ...
http://jlne.ws/vk4Zyr
U.S. Growth Decouples From Debt as JPMorgan Sees Lower Yield
BusinessWeek
The strengthening U.S. economy is proving no deterrent to the biggest rally in Treasuries since 2008, and America's largest bank says it may get even better for bond investors.
http://jlne.ws/sa5igb
Forecasters Miss by Most in 9 Months on Improving Data: Economy
BusinessWeek
U.S. economic data are outperforming expectations by the most in nine months, a trend Federal Reserve officials may incorporate into their policy statement tomorrow.
http://jlne.ws/vYHvTw
Pimco Leads 'Go-Anywhere' Funds Veering Off-Course as Rates Fall
BusinessWeek
Pimco Unconstrained Bond Fund and other "go-anywhere" bond funds created during the 2008 credit crisis went mostly to the wrong places in 2011 after missing a rally in Treasuries and buying riskier assets that lost ground.
http://jlne.ws/vY8j8I
Berkshire's Bond Holdings May Give Buffett Role in ResCap Plan
BusinessWeek
Warren Buffett's Berkshire Hathaway Inc., one of the largest creditors of government-owned Ally Financial Inc., may wind up playing a central role in the restructuring of its Residential Capital LLC mortgage unit.
http://jlne.ws/tdc5WD
Wall Street seeks dismissal of record bankruptcy
AP via Yahoo! Finance
Wall Street creditors are asking a judge to throw out the record bankruptcy filed by Alabama's largest county over more than $4 billion in debt.
http://jlne.ws/viQePz
Events
Fixed Income Markets 2012
January 24, 2012
Tabb Forum Looks At Changes Ahead And Staying Ahead In Fixed Incomes
http://jlne.ws/snQ3VO
Treasury Futures: Using International Fixed-Income and Money Market Spreads
January 31, 2012
The IFM Instructs On Using Fixed Income And Money Market Spreads
http://jlne.ws/u7MgUK
National Association of Home Builders' Show
February 10, 2012
Special Session With Fed's Bernanke Open To All Registered Attendees
http://jlne.ws/tEcqjW
Economic News
Jobless Claims in U.S. Decrease Last Week to Three-Year Low
BusinessWeek
The number of applications for unemployment benefits unexpectedly dropped last week to the lowest level in three years, showing the U.S. labor market is healing.
http://jlne.ws/tgqmJT
Skills 'Mismatch' Hurts Unemployed in U.S. as Job Openings Grow: Economy
Bloomberg
Federal Reserve policy makers yesterday said that while the American job market shows signs of improving, they are still concerned with the "elevated" level of unemployment. One reason may be because employers can't find qualified help, according to economists like Dean Maki.
http://jlne.ws/vMwla1
US pre-open: Manpower sees best hiring outlook since 2008
LONDON (SHARECAST) - The major US equity benchmarks are now pointing to average gains of 0.5% at the start of today's trading. That despite worse than expected economic numbers out in the pre-open and ahead of tonight's meeting of the Federal Reserve's Open Market Committee.
http://jlne.ws/v7kXpO
Industrial Production in U.S. Unexpectedly Fell in November
BusinessWeek
U.S. industrial production unexpectedly dropped in November for the first time in seven months, an indication of a pause in manufacturing as 2011 comes to a close.
http://jlne.ws/tzP3BT
U.S. Retail Sales Rose at Slower Pace in November: Economy
BusinessWeek
Retail sales rose in November at the slowest pace in five months, indicating American consumers were trying to live within their means heading into the holiday shopping season as wages dropped.
http://jlne.ws/rIYemC
Exchanges, Clearing Houses & MTFs
Javelin and CME Execute and Clear $4.1 Billion of Interest Rate Swaps in Real Time
PR Newswire
NEW YORK, Dec. 14, 2011 /PRNewswire/ -- Javelin Capital Markets, a swaps trading platform, and the CME, a swaps clearing house, today announced that they had executed and cleared over $4.1 Billion of interest rates swap trades in an average time of under 2 seconds-a market...
http://jlne.ws/v8rFBS
CME Group, Javelin clear first rate swaps in real time
Chicago Tribune
Javelin Capital Markets, an electronic trading platform for privately traded derivatives, said on Wednesday that it has executed and cleared over $4 billion in interest rate swaps through CME Group, the first time the trades have been cleared in real time.
http://jlne.ws/w1SRHR
Firms & Banks
BGC Partners Launches Hybrid Trading Platform for Treasury Inflation-Protected Securities (TIPS)
CNW Group via Yahoo! Finance
http://jlne.ws/rRAg9L
Software developer Broadway Technology gets investment from Goldman Sachs, others
Austin American-Statesman
http://jlne.ws/uofruY
Invesco Mortgage Capital and CYS Investments to See Uptick in Net Interest Income
Marketwire via Yahoo! Finance
NEW YORK, NY- For roughly three years, the central bank has kept overnight interest rates near zero as unemployment remains relatively high and housing issues persist.
http://jlne.ws/vmJFrn
First Asset Licenses Morningstar Equity, Fixed Income, and Managed Futures Indexes for ETFs
CNW Group Finance Press Releases via Yahoo! Finance
http://jlne.ws/sTLToD
Morgan Stanley spent $750K on lobbying in 3Q
AP via Yahoo! News
Morgan Stanley & Co. spent $750,000 in the third quarter to lobby the federal government on new financial regulations, complex trading investments and mortgage industry reforms, among other issues, according to a recent disclosure filing.
http://jlne.ws/t20ukF
JPMorgan Chase spent $2.45M on 3Q lobbying
AP via Yahoo! News
JPMorgan Chase & Co. spent $2.45 million to lobby the federal government in the third quarter on rules governing home mortgages, Wall Street reform and other issues, according to a disclosure report.
http://jlne.ws/ueYzId
Credit Agricole to cut jobs as loss looms
Reuters via Yahoo! News
PARIS (Reuters) - Credit Agricole will make a 2011 loss, write off 2.5 billion euros ($3.2 billion) worth of assets and cut 2,350 jobs in a cull of its investment banking operations, the French bank said on Wednesday in its second profit warning of the year.
http://jlne.ws/uwHLTr
Credit Suisse to Merge Private, Investment Bank Operations
http://jlne.ws/vjWgb0
State Street leaves UK and German bond markets
By Michael Mackenzie in New York and David Oakley in London - Financial Times
State Street, the large US custodian bank, has cited new regulations including the “Volcker rule” for its decision to quit the UK and German government bond markets just three months after becoming an official dealer.
http://jlne.ws/ucxkxk
Commerzbank boosts capital by 700 mn euros
AFP via Yahoo! News
Commerzbank, Germany's second-biggest bank needing 5.3 billion euros in fresh funds, said Wednesday a repurchase of securities will beef up its core capital by more than 700 million euros ($910 million).
http://jlne.ws/rJ6jzf
Goldman losing at least 37 partners
Boston Globe
Goldman Sachs has lost at least 37 partners in 2011 as the firm heads toward the end of its worst year for profit and share performance since 2008. The number is an estimate based on internal memos, company filings and news reports as the New York-based bank doesn't publicize departures.
http://jlne.ws/sYV8cx
Lloyds takes a gamble on chief’s health
By Sharlene Goff, Kate Burgess and Patrick Jenkins - Financial Times
Bushy-tailed and smiling was how the chairman of Lloyds Banking Group described António Horta-Osório as he confirmed the bank’s chief executive would return from a period of sick leave on January 9.
http://jlne.ws/svQSxa
Old Mutual to Sell Its Nordic Business for $3.2 Billion
By MARK SCOTT - NY Times
LONDON — British insurer Old Mutual agreed on Thursday to sell the Skandia Insurance Company, its Nordic savings and banking business, to the Swedish insurance company Skandia Liv for £2.1 billion, or $3.2 billion.
http://jlne.ws/uOrI9s
Regulators
IMF boosts emergency response powers
Washington Post
The International Monetary Fund could pour more than $100 billion in short-term loans into Italy under a program recently expanded as part of an effort to ramp up the fund's crisis fighting. But a broader bailout of the country remains problematic as European, IMF and other international officials debate how extensively the burden of Europe's rescue should be spread around the globe.
http://jlne.ws/tY0McD
EU Asks Deutsche Boerse-NYSE Clients, Rivals for Remedy Response
BusinessWeek
European Union regulators asked clients and rivals of Deutsche Boerse AG and NYSE Euronext whether the revised concessions offered this week are sufficient to eliminate antitrust concerns over their planned merger.
http://jlne.ws/w4jBnF
NY Fed Didn't Give Corzine Preferential Treatment, Baxter Says
BusinessWeek
MF Global Holdings Ltd. and Jon S. Corzine, the broker's former chairman and chief executive officer, didn't receive preferential treatment in a bid to become a primary dealer of government securities, said Thomas C. Baxter Jr., general counsel of the New York Federal Reserve.
http://jlne.ws/rTSG5L
Global News
European Central Bank monthly Bulletin
International Business Times
The European Central Bank responded to mounting market pressure and speculation of a rate cut this meeting, where the Governing Council voted to cut key interest rates by quarter basis point to 1.00%, the fourth move this year, while the Bank also cut the marginal lending facility by 25 bp to 1.75% .
http://jlne.ws/vGvivH
Europe's Central Bank Maneuvers Crisis Intervention
NPR
The European Central Bank has ruled out large scale bond purchases to save struggling countries from their mounting debts. But the ECB has said it will extend unlimited credit to European banks. Some observers say these low-interest bank loans could be a back door way to address the debt crisis. National banks would have a new source of cash to buy their home country's sovereign debt.
http://jlne.ws/vN1XXA
Brazil Rate Futures Yields Rise on European Debt Optimism as Real Advances
Bloomberg
Yields on most Brazilian interest- rate futures contracts rose after Spain sold more bonds than expected, spurring bets that stability in Europe may prompt the central bank to slow its pace of interest-rate cuts.
http://jlne.ws/vCEIao
Brazil Says Done With Stimulus to Reignite Growth, Lending
BusinessWeek
Brazil has taken the bulk of stimulus measures needed to reignite economic growth next year and sees no need to rely on state banks to help boost credit, Deputy Finance Minister Nelson Barbosa said.
http://jlne.ws/vXStlT
Italy government calls confidence vote on austerity
Reuters via Yahoo! News
ROME (Reuters) - Italy's government has called a confidence vote in parliament on Friday to speed up approval of a 33-billion euro ($43 billion)austerity package intended to restore market confidence in the euro zone's third largest economy. Minister for Parliamentary Relations Piero Giarda announced the confidence vote, expected early on Friday afternoon.
http://jlne.ws/vwagaf
Singh Says No Surrender as Markets Query India's Ambition
BusinessWeek
India's Prime Minister Manmohan Singh pledged to overcome opposition to opening the country's retail industry to companies like Wal-Mart Stores Inc., saying his two-decade reform agenda is the best way of reviving the slowest economic growth in two years.
http://jlne.ws/um6yPx
Czech Lawmakers Approve 2012 State Budget That Trims the Shortfall by 22%
Bloomberg
Czech lawmakers approved the 2012 state budget, endorsing a 22 percent deficit cut, as the government prepares crisis measures to mitigate the effects of the euro area's debt crisis.
http://jlne.ws/tMGjjm
China To Continue Prudent Monetary Policy Next Year - Xinhua
http://jlne.ws/tq8X31
Finnish central bank forecasts growth will drop from current 2.8 pct to 0.4 pct in 2012
Washington Post
HELSINKI - The Finnish central bank says economic growth in the Nordic country will fall from a predicted 2.8 percent this year to 0.4 percent in 2012, unless the euro debt crisis worsens. The governor of the Bank of Finland warns that economic growth will "at best be sluggish" in the next few years. In 2013, gross domestic product is expected to increase 1.8 percent.
http://jlne.ws/sqptH2
Libya Central Bank expected to have sanctions lifted
Reuters via Yahoo! News
UNITED NATIONS (Reuters) - Libya's central bank and a subsidiary are expected to have U.N. sanctions against them lifted on Friday in a move to ease a cash crunch since the country's civil war ended, diplomats said on Wednesday.
http://jlne.ws/rP9C5C
Japan central bank says business confidence falls
AP via Yahoo! News
A key central bank survey showed Thursday that confidence at major Japanese manufacturers fell over the last quarter, as the export-reliant country battled a strong yen and an increasingly precarious global economy.
http://jlne.ws/s63b18
French central bank chief mocks British economy
AFP via Yahoo! News
The head of the French central bank criticised the British economy on Thursday, arguing that ratings agencies are targeting the wrong country for a debt downgrade.
http://jlne.ws/sfrABG
Kenya central bank seeks to mop up $45 mln
Reuters via Yahoo! News
NAIROBI (Reuters) - Kenya's central bank said on Wednesday it was seeking to mop up 4 billion shillings from the market through repurchase agreements. The Central Bank of Kenya hoovered up 2 billion shillings on Tuesday at a weighted average of 14.156 percent.
http://jlne.ws/udrHw7
Disclaimer: The John Lothian, Environmental Markets, JLN Metals, JLN Managed Futures, JLN Interest Rates, JLN Options and JLN FX newsletters and blogs and MarketsWiki are products of John J. Lothian & Company, Inc. The opinions expressed in these publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
Futures and options trading involve risk. Past results are no indication of future performance.
Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any web site or newsletter content.
Copyright 2011 John J. Lothian & Company, Inc. All Rights Reserved.
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starter
Celent Says Long-Term Investors Have Derisked Portfolios Due To Regulatory, Accounting Changes
According to a new report from financial research firm Celent, the financial crisis and regulatory changes - coupled with falling returns in traditional equities - have changed the long-term dynamics for buy-side firms. Of more immediate importance to the financial markets is that many long-term investors have derisked their portfolios in response to regulatory and accounting changes, including a move toward mark-to-market accounting and stricter capital requirements, as well as a lower institutional tolerance for risk. This shift has led many institutions to increase their buffers of liquid investments - with some institutions shunning illiquid investments altogether - and reduce the capital allocated to risky and volatile assets.
See the full report here:Celent: Derivatives and Investment Risk Solutions for the Buy Side: Optimizing the Risk-Return Equation
Six in Ten Americans Still Likely to Cut Back on Dining and Entertainment
NEW YORK , N.Y. - For the last several years the economy has been one of the hottest topics, and everyone - including politicians, economists, retailers, business owners, employees and consumers - has been following closely. Much has been said about Americans' cutting back, budgeting, and possibly, a "new normal". The Harris Poll has been tracking Americans' spending and savings plans for over three years and on the whole has not seen a tremendous amount of change. This month, similar to the last time, the questions were asked in May 2011, six in 10 U.S. adults say they are likely to decrease spending on eating out at restaurants (61 percent) and on entertainment (58 percent) within the next six months. Despite reducing their spending in these non-essential areas, Americans do not seem to indicate overwhelmingly that they will be saving or investing more in the coming six months as 51 percent say they are likely to, and 49 percent say they are unlikely to do so. These numbers have remained generally constant since November of 2008, when 49 percent said they would save or invest more money.
See the full release here.
--Christine Nielsen
Lead Stories
Fitch Downgrades Banks, Including Bank of America and Goldman
Fitch Ratings has today taken rating actions on nine global trading and universal banks (GTUBs). The actions complete its assessment of the GTUBs, carried out in conjunction with a broad review of the ratings for the largest banking institutions in the world. Fitch has downgraded eight issuers’ Viability Ratings (VRs) and affirmed one, removing them from Rating Watch Negative where they were placed on Oct. 13, 2011.
http://jlne.ws/uqRggO
Investors Still Reluctant to Buy Euro Zone Bank Debt
CNBC
Warnings from rating agencies that they might broadly downgrade euro zone sovereign debt , in which the region's banks have a significant stake, have added to investors' reluctance to lend their dollars.
http://jlne.ws/vHz3D8
Bernanke worried Europe could hurt U.S.
CNN Money
Federal Reserve Board Chairman Ben Bernanke told Republican senators on Capitol Hill on Wednesday that he's concerned about European sovereign debt problems spilling over to the U.S. economy, according to senators.
http://jlne.ws/tid8RG
Bernanke Tells Senators Federal Reserve Has No Plan to Aid European Banks
Bloomberg
Federal Reserve Chairman Ben S. Bernanke told Republican senators the Fed has no plan to provide aid to European banks amid the region's sovereign debt crisis, according to two lawmakers who attended the meeting.
http://jlne.ws/usnweT
FOMC: Global Financial Markets Pose Downside Risk to U.S. Economic Outlook
Wall Street Cheat Sheet via Yahoo! Finance
To fulfill its dual mandate to foster maximum employment and price stability, the Federal Open Market Committee has decided to continue Operation Twist and keep interest rates at record lows.
http://jlne.ws/vC3Y5C
Text of Statement by Federal Reserve
New York Times
The full text of the statement released on Tuesday by the Federal Open Market Committee of the Federal Reserve.
http://jlne.ws/s8WZyF
FOMC Statement:: Economy Expanding "Moderately," Global Growth Slowing
Calculated Risk
Information received since the Federal Open Market Committee met in November suggests that the economy has been expanding moderately, notwithstanding some apparent slowing in global growth . While indicators point to some improvement in overall labor market conditions, the unemployment rate remains elevated.
http://jlne.ws/trBFrl
Federal Reserve keeps monetary policy on ice
CNN Money
The Federal Reserve acknowledged the job market has improved slightly, but said the economy's immediate future remains on pins and needles.
http://jlne.ws/tBnCXR
How Federal Reserve policymakers affect the economy
The Post-Standard
The Federal Reserve's chief policymaking group, the Federal Open Market Committee, has vast power over the economy through its ability to set monetary policy.
http://jlne.ws/vhBqyj
What to Look for from the Fed in 2012
U.S.News & World Report LP via Yahoo! News
The Fed is treading water for now, but how long will it last?
http://jlne.ws/uR214f
Senate panel OKs bank critic Hoenig to FDIC
Market Watch
WASHINGTON (MarketWatch) - The Senate Banking Committee on Tuesday approved White House nominee Thomas Hoenig -- who recently retired as Kansas City Fed president - to be Federal Deposit Insurance Corp. vice chairman. Hoenig must still be approved by the full Senate before he can begin work at the agency.
http://jlne.ws/sDE8yd
Mortgage Rates Sink to New Low
PR Newswire via Yahoo! Finance
NEW YORK , Dec. 15, 2011 /PRNewswire/ -- The 30-year fixed mortgage rate fell to a new record low of 4.19 percent, according to Bankrate.com's weekly national survey.
http://jlne.ws/tIqEQc
Ben Bernanke Is an Ordinary American Homeowner
New York Magazine
Fed chairman Ben Bernanke, like lots of people, still owes the bulk of money on the $850,000 Washington, D.C. home he purchased in 2004. Like lots of people, he had to send proof of employment and pay stubs in order to get a loan. Also, like lots of people, he's refinanced a couple of times in the past couple of years at key junctures, reports.
http://jlne.ws/vfaBmu
**CN: He's just Benny From The Block.
Ben's birthday a bust for marts
New York Post
Ben Bernanke marked his 58th birthday by being Wall Street's party pooper.
http://jlne.ws/sc7yaU
Regulators know where MF Global funds went
Reuters via Yahoo! News
WASHINGTON (Reuters) - Regulators now have a more complete picture of money transfers in the final days of bankrupt brokerage MF Global, but must sort out which transactions were legitimate before more money can be released to customers, a top official told Reuters on Wednesday.
http://jlne.ws/udsXRU
MF Global puts harsh light on self-regulation
Reuters via Yahoo! News
WASHINGTON (Reuters) - Two weeks after MF Global's collapse, officials from the Commodity Futures Trading Commission briefed Senate staff on the brokerage firm's final days. When asked about reports that the brokerage firm had written checks that bounced when customers tried to cash them, the regulators had an admission that surprised the room: they didn't know about the bad checks."
http://jlne.ws/rq5NZi
MF Global Probe Said to Investigate Use of Funds to Post Margin
BusinessWeek
U.S. authorities are investigating whether MF Global Holdings Ltd. intentionally tapped customer funds to cover the bankrupt firm's margin payments on European government bond trades while lawmakers press top company officials on the possible misuse of as much as $1.2 billion.
http://jlne.ws/vWp56h
MF's Corzine said to know of customer-backed loan
Reuters via Yahoo! News
WASHINGTON (Reuters) - An MF Global employee told regulators that former chief Jon Corzine knew that the now-bankrupt brokerage firm used customer money to lend to a European affiliate, a CME Group executive said on Tuesday.
http://jlne.ws/vigGO3
Corzine Says He Didn't Order Misuse of Funds at MF Global
BusinessWeek
Jon S. Corzine, the former chairman and chief executive officer of MF Global Holdings Ltd., told lawmakers he "never gave any instructions to misuse customer funds" and didn't give orders that could be misconstrued.
http://jlne.ws/tCDVwo
Corzine Visited NY Fed as MF Global Sought Primary Dealer Status
BusinessWeek
Jon S. Corzine, former chairman and chief executive officer of MF Global Holdings Ltd., met with New York Federal Reserve officials in 2010 as the broker sought to become a primary dealer of government securities, Thomas C. Baxter Jr., general counsel of the New York Fed, said.
http://jlne.ws/u66EdP
Fire Bernanke? Not So Fast, Mr. Gingrich
Wall Street Journal Blogs
Newt Gingrichs promise to fire Fed chairman Bernanke isn't as easily executed as the Republican presidential nominee has often made it sound on the stump.
http://jlne.ws/ufJ3QH
Banks face E350bn Basel III shortfall
By Brooke Masters in London - Financial Times
European banks will have to raise nearly E200bn ($260bn) in new capital or cut their balance sheets by nearly 20 per cent, to achieve the tougher new Basel III banking reform rules that start taking effect in 2013, a new study has found.
http://jlne.ws/uBVBsA
Fitch cuts ratings on 5 European banks
AP via Yahoo! News
Fitch Ratings on Wednesday downgraded the debt ratings for five major European commercial banks and cooperative banking groups, citing the eurozone crisis and stronger headwinds facing the banking sector.
http://jlne.ws/sKLaSX
U.S. runs $137 billion deficit in November
Market Watch
WASHINGTON (MarketWatch) -- The federal government ran a budget deficit of $137 billion in November, the Treasury Department reported Monday, keeping its finances in the red in the second month of the fiscal year. The government spent $290 billion in the month and took in $152 billion, pushing the fiscal year-to-date deficit to $236 billion. For the first two months of the year, the U.S. is ...
http://jlne.ws/vk4Zyr
U.S. Growth Decouples From Debt as JPMorgan Sees Lower Yield
BusinessWeek
The strengthening U.S. economy is proving no deterrent to the biggest rally in Treasuries since 2008, and America's largest bank says it may get even better for bond investors.
http://jlne.ws/sa5igb
Forecasters Miss by Most in 9 Months on Improving Data: Economy
BusinessWeek
U.S. economic data are outperforming expectations by the most in nine months, a trend Federal Reserve officials may incorporate into their policy statement tomorrow.
http://jlne.ws/vYHvTw
Pimco Leads 'Go-Anywhere' Funds Veering Off-Course as Rates Fall
BusinessWeek
Pimco Unconstrained Bond Fund and other "go-anywhere" bond funds created during the 2008 credit crisis went mostly to the wrong places in 2011 after missing a rally in Treasuries and buying riskier assets that lost ground.
http://jlne.ws/vY8j8I
Berkshire's Bond Holdings May Give Buffett Role in ResCap Plan
BusinessWeek
Warren Buffett's Berkshire Hathaway Inc., one of the largest creditors of government-owned Ally Financial Inc., may wind up playing a central role in the restructuring of its Residential Capital LLC mortgage unit.
http://jlne.ws/tdc5WD
Wall Street seeks dismissal of record bankruptcy
AP via Yahoo! Finance
Wall Street creditors are asking a judge to throw out the record bankruptcy filed by Alabama's largest county over more than $4 billion in debt.
http://jlne.ws/viQePz
Events
Fixed Income Markets 2012
January 24, 2012
Tabb Forum Looks At Changes Ahead And Staying Ahead In Fixed Incomes
http://jlne.ws/snQ3VO
Treasury Futures: Using International Fixed-Income and Money Market Spreads
January 31, 2012
The IFM Instructs On Using Fixed Income And Money Market Spreads
http://jlne.ws/u7MgUK
National Association of Home Builders' Show
February 10, 2012
Special Session With Fed's Bernanke Open To All Registered Attendees
http://jlne.ws/tEcqjW
Economic News
Jobless Claims in U.S. Decrease Last Week to Three-Year Low
BusinessWeek
The number of applications for unemployment benefits unexpectedly dropped last week to the lowest level in three years, showing the U.S. labor market is healing.
http://jlne.ws/tgqmJT
Skills 'Mismatch' Hurts Unemployed in U.S. as Job Openings Grow: Economy
Bloomberg
Federal Reserve policy makers yesterday said that while the American job market shows signs of improving, they are still concerned with the "elevated" level of unemployment. One reason may be because employers can't find qualified help, according to economists like Dean Maki.
http://jlne.ws/vMwla1
US pre-open: Manpower sees best hiring outlook since 2008
LONDON (SHARECAST) - The major US equity benchmarks are now pointing to average gains of 0.5% at the start of today's trading. That despite worse than expected economic numbers out in the pre-open and ahead of tonight's meeting of the Federal Reserve's Open Market Committee.
http://jlne.ws/v7kXpO
Industrial Production in U.S. Unexpectedly Fell in November
BusinessWeek
U.S. industrial production unexpectedly dropped in November for the first time in seven months, an indication of a pause in manufacturing as 2011 comes to a close.
http://jlne.ws/tzP3BT
U.S. Retail Sales Rose at Slower Pace in November: Economy
BusinessWeek
Retail sales rose in November at the slowest pace in five months, indicating American consumers were trying to live within their means heading into the holiday shopping season as wages dropped.
http://jlne.ws/rIYemC
Exchanges, Clearing Houses & MTFs
Javelin and CME Execute and Clear $4.1 Billion of Interest Rate Swaps in Real Time
PR Newswire
NEW YORK, Dec. 14, 2011 /PRNewswire/ -- Javelin Capital Markets, a swaps trading platform, and the CME, a swaps clearing house, today announced that they had executed and cleared over $4.1 Billion of interest rates swap trades in an average time of under 2 seconds-a market...
http://jlne.ws/v8rFBS
CME Group, Javelin clear first rate swaps in real time
Chicago Tribune
Javelin Capital Markets, an electronic trading platform for privately traded derivatives, said on Wednesday that it has executed and cleared over $4 billion in interest rate swaps through CME Group, the first time the trades have been cleared in real time.
http://jlne.ws/w1SRHR
Firms & Banks
BGC Partners Launches Hybrid Trading Platform for Treasury Inflation-Protected Securities (TIPS)
CNW Group via Yahoo! Finance
http://jlne.ws/rRAg9L
Software developer Broadway Technology gets investment from Goldman Sachs, others
Austin American-Statesman
http://jlne.ws/uofruY
Invesco Mortgage Capital and CYS Investments to See Uptick in Net Interest Income
Marketwire via Yahoo! Finance
NEW YORK, NY- For roughly three years, the central bank has kept overnight interest rates near zero as unemployment remains relatively high and housing issues persist.
http://jlne.ws/vmJFrn
First Asset Licenses Morningstar Equity, Fixed Income, and Managed Futures Indexes for ETFs
CNW Group Finance Press Releases via Yahoo! Finance
http://jlne.ws/sTLToD
Morgan Stanley spent $750K on lobbying in 3Q
AP via Yahoo! News
Morgan Stanley & Co. spent $750,000 in the third quarter to lobby the federal government on new financial regulations, complex trading investments and mortgage industry reforms, among other issues, according to a recent disclosure filing.
http://jlne.ws/t20ukF
JPMorgan Chase spent $2.45M on 3Q lobbying
AP via Yahoo! News
JPMorgan Chase & Co. spent $2.45 million to lobby the federal government in the third quarter on rules governing home mortgages, Wall Street reform and other issues, according to a disclosure report.
http://jlne.ws/ueYzId
Credit Agricole to cut jobs as loss looms
Reuters via Yahoo! News
PARIS (Reuters) - Credit Agricole will make a 2011 loss, write off 2.5 billion euros ($3.2 billion) worth of assets and cut 2,350 jobs in a cull of its investment banking operations, the French bank said on Wednesday in its second profit warning of the year.
http://jlne.ws/uwHLTr
Credit Suisse to Merge Private, Investment Bank Operations
http://jlne.ws/vjWgb0
State Street leaves UK and German bond markets
By Michael Mackenzie in New York and David Oakley in London - Financial Times
State Street, the large US custodian bank, has cited new regulations including the “Volcker rule” for its decision to quit the UK and German government bond markets just three months after becoming an official dealer.
http://jlne.ws/ucxkxk
Commerzbank boosts capital by 700 mn euros
AFP via Yahoo! News
Commerzbank, Germany's second-biggest bank needing 5.3 billion euros in fresh funds, said Wednesday a repurchase of securities will beef up its core capital by more than 700 million euros ($910 million).
http://jlne.ws/rJ6jzf
Goldman losing at least 37 partners
Boston Globe
Goldman Sachs has lost at least 37 partners in 2011 as the firm heads toward the end of its worst year for profit and share performance since 2008. The number is an estimate based on internal memos, company filings and news reports as the New York-based bank doesn't publicize departures.
http://jlne.ws/sYV8cx
Lloyds takes a gamble on chief’s health
By Sharlene Goff, Kate Burgess and Patrick Jenkins - Financial Times
Bushy-tailed and smiling was how the chairman of Lloyds Banking Group described António Horta-Osório as he confirmed the bank’s chief executive would return from a period of sick leave on January 9.
http://jlne.ws/svQSxa
Old Mutual to Sell Its Nordic Business for $3.2 Billion
By MARK SCOTT - NY Times
LONDON — British insurer Old Mutual agreed on Thursday to sell the Skandia Insurance Company, its Nordic savings and banking business, to the Swedish insurance company Skandia Liv for £2.1 billion, or $3.2 billion.
http://jlne.ws/uOrI9s
Regulators
IMF boosts emergency response powers
Washington Post
The International Monetary Fund could pour more than $100 billion in short-term loans into Italy under a program recently expanded as part of an effort to ramp up the fund's crisis fighting. But a broader bailout of the country remains problematic as European, IMF and other international officials debate how extensively the burden of Europe's rescue should be spread around the globe.
http://jlne.ws/tY0McD
EU Asks Deutsche Boerse-NYSE Clients, Rivals for Remedy Response
BusinessWeek
European Union regulators asked clients and rivals of Deutsche Boerse AG and NYSE Euronext whether the revised concessions offered this week are sufficient to eliminate antitrust concerns over their planned merger.
http://jlne.ws/w4jBnF
NY Fed Didn't Give Corzine Preferential Treatment, Baxter Says
BusinessWeek
MF Global Holdings Ltd. and Jon S. Corzine, the broker's former chairman and chief executive officer, didn't receive preferential treatment in a bid to become a primary dealer of government securities, said Thomas C. Baxter Jr., general counsel of the New York Federal Reserve.
http://jlne.ws/rTSG5L
Global News
European Central Bank monthly Bulletin
International Business Times
The European Central Bank responded to mounting market pressure and speculation of a rate cut this meeting, where the Governing Council voted to cut key interest rates by quarter basis point to 1.00%, the fourth move this year, while the Bank also cut the marginal lending facility by 25 bp to 1.75% .
http://jlne.ws/vGvivH
Europe's Central Bank Maneuvers Crisis Intervention
NPR
The European Central Bank has ruled out large scale bond purchases to save struggling countries from their mounting debts. But the ECB has said it will extend unlimited credit to European banks. Some observers say these low-interest bank loans could be a back door way to address the debt crisis. National banks would have a new source of cash to buy their home country's sovereign debt.
http://jlne.ws/vN1XXA
Brazil Rate Futures Yields Rise on European Debt Optimism as Real Advances
Bloomberg
Yields on most Brazilian interest- rate futures contracts rose after Spain sold more bonds than expected, spurring bets that stability in Europe may prompt the central bank to slow its pace of interest-rate cuts.
http://jlne.ws/vCEIao
Brazil Says Done With Stimulus to Reignite Growth, Lending
BusinessWeek
Brazil has taken the bulk of stimulus measures needed to reignite economic growth next year and sees no need to rely on state banks to help boost credit, Deputy Finance Minister Nelson Barbosa said.
http://jlne.ws/vXStlT
Italy government calls confidence vote on austerity
Reuters via Yahoo! News
ROME (Reuters) - Italy's government has called a confidence vote in parliament on Friday to speed up approval of a 33-billion euro ($43 billion)austerity package intended to restore market confidence in the euro zone's third largest economy. Minister for Parliamentary Relations Piero Giarda announced the confidence vote, expected early on Friday afternoon.
http://jlne.ws/vwagaf
Singh Says No Surrender as Markets Query India's Ambition
BusinessWeek
India's Prime Minister Manmohan Singh pledged to overcome opposition to opening the country's retail industry to companies like Wal-Mart Stores Inc., saying his two-decade reform agenda is the best way of reviving the slowest economic growth in two years.
http://jlne.ws/um6yPx
Czech Lawmakers Approve 2012 State Budget That Trims the Shortfall by 22%
Bloomberg
Czech lawmakers approved the 2012 state budget, endorsing a 22 percent deficit cut, as the government prepares crisis measures to mitigate the effects of the euro area's debt crisis.
http://jlne.ws/tMGjjm
China To Continue Prudent Monetary Policy Next Year - Xinhua
http://jlne.ws/tq8X31
Finnish central bank forecasts growth will drop from current 2.8 pct to 0.4 pct in 2012
Washington Post
HELSINKI - The Finnish central bank says economic growth in the Nordic country will fall from a predicted 2.8 percent this year to 0.4 percent in 2012, unless the euro debt crisis worsens. The governor of the Bank of Finland warns that economic growth will "at best be sluggish" in the next few years. In 2013, gross domestic product is expected to increase 1.8 percent.
http://jlne.ws/sqptH2
Libya Central Bank expected to have sanctions lifted
Reuters via Yahoo! News
UNITED NATIONS (Reuters) - Libya's central bank and a subsidiary are expected to have U.N. sanctions against them lifted on Friday in a move to ease a cash crunch since the country's civil war ended, diplomats said on Wednesday.
http://jlne.ws/rP9C5C
Japan central bank says business confidence falls
AP via Yahoo! News
A key central bank survey showed Thursday that confidence at major Japanese manufacturers fell over the last quarter, as the export-reliant country battled a strong yen and an increasingly precarious global economy.
http://jlne.ws/s63b18
French central bank chief mocks British economy
AFP via Yahoo! News
The head of the French central bank criticised the British economy on Thursday, arguing that ratings agencies are targeting the wrong country for a debt downgrade.
http://jlne.ws/sfrABG
Kenya central bank seeks to mop up $45 mln
Reuters via Yahoo! News
NAIROBI (Reuters) - Kenya's central bank said on Wednesday it was seeking to mop up 4 billion shillings from the market through repurchase agreements. The Central Bank of Kenya hoovered up 2 billion shillings on Tuesday at a weighted average of 14.156 percent.
http://jlne.ws/udrHw7
Disclaimer: The John Lothian, Environmental Markets, JLN Metals, JLN Managed Futures, JLN Interest Rates, JLN Options and JLN FX newsletters and blogs and MarketsWiki are products of John J. Lothian & Company, Inc. The opinions expressed in these publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
Futures and options trading involve risk. Past results are no indication of future performance.
Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any web site or newsletter content.
Copyright 2011 John J. Lothian & Company, Inc. All Rights Reserved.