Quote:
‘If I choose diamonds, it’s because they represent the highest value in the smallest volume.’ Coco Chanel (1883-1971)
The News:
President Bush tries to push through $700B rescue package by warning of long term recession.
The Numbers:
British Summer Time, with expectations and previous figures in brackets.
00:50 JP August Trade Balance –324B Yen versus +91.1B July.
00:50 JP August Corporate Service Prices +1.4% Y/Y versus +1.3% July.
07:10 DE October GfK Consumer Confidence 1.8 versus revised 1.6 September.
09:00 EZ15 August M3 Money Supply (+8.8% to +9.5% Y/Y versus +9.3% July).
10:30 GB Treasury auction result of £2.5B 4.50% 2019 Gilt.
13:30 US August Durable Goods Orders (-5.9% to –1.5%, Ex-Transports –2.5% to 0%, vs +1.3% and +0.7% July).
13:30 US Weekly Jobless Claims (365K to 505K, Continuing Claims 3480K to 3575K, vs 455K and 3478K prior week).
15:00 US August New Home Sales (495K to 530K annualised versus 515K July).
15:00 US Fed’s Bernanke and Treasury Secretary Paulson testify on GSE’s before House Financial Services Committee.
18:00 US Treasury auction result of five-year TNote sale.
18:00 CA Bank of Canada governor Carney speaks on recent economic developments, Montreal.
The Psychology:
The authorities still do not understand why the interbank market is not working.
The Risk:
The general public are understandably worried about their savings and pensions; fear is contagious. Hong Kong’s Bank of East Asia suffers a run on its deposits, the first in ten years in the state.
Today’s most interesting chart: Dec08 Eurodollar interest rate future
Equivalent to 3.80% as USD Libor rates are a complete farce.
