Quote:
‘If there was a reincarnation, I want to come back as the bond market. You can intimidate everybody.’ James Carville (1944-)
The News:
UK’s Gordon Brown ‘impressed’ by Irish government’s plan to back all deposits and bank bonds.
The Numbers:
British Summer Time, with expectations and previous figures in brackets. France’s finance minister Lagarde says French banking system ‘solid’ as it has a different business model.
00:50 JP Q3 Tankan: Large Manufacturers -3, Outlook -4; Non-Manufacturing 1, Outlook -1; All Industry Capex 1.7%; versus 5/4/10/8/2.4% Q2.
02:30 JP August Labour Cash Earnings –0.3% Y/Y, Overtime –1.8% Y/Y, versus +0.3% and +1.1% July.
07:00 DE August Retail Sales +3.1% M/M, -3.0% Y/Y, versus revised –1.0% and +0.6% July.
08:30 CH September PMI (50 to 53 versus 52.5 August).
09:30 GB September Manufacturing PMI (43.4 to 46.3 versus 45.9 August).
09:30 GB July Index of Services (-0.1% to +0.3% 3M/M versus +0.2% June).
10:00 EZ15 August Unemployment (7.3% to 7.4% versus 7.3% July).
11:00 EU’s McCreevy news conference on changes to banks’ capital rules, Brussels.
12:30 US September Challenger Job Cuts (versus +11.7% Y/Y August).
13:15 US September ADP Employment Change (-135K to –20K versus –33K August).
13:30 CA August Raw Material Prices (-0.8% to +0.5%, PPI -1.0% to +0.2%, vs +1.4% and +0.4% July).
15:00 US September Manufacturing ISM (48 to 51, Prices Paid 70 to 75, versus 49.9 and 77 August).
The Psychology:
Holidays in Bahrain, China, Egypt, Hong Kong, Indonesia, Kuwait, Malaysia, Oman, Pakistan, Qatar, Saudi Arabia, Singapore, Turkey and United Arab Emirates until Friday; South Korea Friday only.
The Risk:
US SEC says hard-to-value assets need not be marked-to-market.
Today’s most interesting chart: Iceland crown
Ratings’ agencies downgrade on bank failure.
