Quote:
‘We thought the crisis might be over by Christmas, rather like World War I.’ Charlie Bean (1953)
The News:
US $700B bailout plan descends into a chaotic shouting match. JP Morgan buys failed Washington Mutual for $1.9B, the US’s biggest ever bank failure.
The Numbers:
British Summer Time, with expectations and previous figures in brackets.
From today DE September CPI for the different German states.
00:30 JP September Tokyo CPI +1.4% Y/Y, Ex-Fresh Food +1.7% Y/Y, versus +1.3% and +1.5% August.
00:30 JP August National CPI +2.1% Y/Y, Ex-Fresh Food +2.4% Y/Y, versus +2.3% and +2.4% July.
00:30 US Fed’s Fisher speaks, New York. Says ‘imploding financial system…cussing up a blue streak (and) contracted STD…Securitization Transmitted Disease’.
07:00 DE August Import Price Index –0.8% M/M, +9.3% Y/Y, versus +0.6% and +9.3% July.
10:30 CH September KOF Indicator (0.49 to 0.65 versus 0.68 August [a five-year low]).
12:45 EZ15 ECB’s Weber speaks on monetary policy, Basel.
13:30 US Q2 final GDP (+3.0% to +3.4%, Price Index +1.0% to +1.3%, versus +3.3% and +1.2% Q2).
15:00 US September final University of Michigan Confidence Survey (64 to 73 versus 73.1 September).
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:
Holidays in China, Israel, Saudi Arabia, Turkey and United Arab Emirates Monday and Tuesday. Also Bahrain, Egypt, Hong Kong, Kuwait, Malaysia, Oman, Qatar and Singapore Wednesday and Thursday.
The Risk:
The world spends another weekend waiting to see what ‘rabbit’ the US Treasury will pull out of its ‘hat’.
Today’s most interesting chart: S&P Dec08
‘Triangle’ consolidation below Fibonacci resistance.
