Quote:
‘The all-powerful market which is always right is finished.’ Nicolas Sarkozy (1955-)
The News:
UK FSA’s Hector Sants says hedge funds do not need more regulation and that they are weathering current turmoil better than other financial sectors.
The Numbers:
British Summer Time, with expectations and previous figures in brackets.
(21:00) NZ Reserve Bank of New Zealand interest rate decision: -100 basis points to 6.50% and expects to cut further.
00:50 JP September Trade Balance +95B Yen versus -327B August.
08:30 SE Swedish Riksbank decides on interest rates (some expect –25 bp to 4.00%, some say no change).
09:30 GB September Retail Sales (-1.8% to +0.3% M/M, +1.1% to +3.0% Y/Y, versus +1.2% and +3.3% August).
09:30 GB September BBA Mortgage Approvals (versus 21,086B August [lowest since 1994]).
10:00 EZ15 August Industrial New Orders (-2.0% to +2.2% M/M, -4.3% to +1.2% Y/Y, vs +1.0% and +1.6% July).
10:30 GB Treasury auction result of £3B 5.00% 2018 Gilt.
13:30 US Weekly Jobless Claims (430K to 490K, Continuing Claims 3600K to 3750K, vs 461K and 3711K prior week).
15:00 US August House Price Index (-0.6% to -0.3% M/M versus -0.6% July).
15:30 CA Bank of Canada Monetary Policy Report.
16:00 US Treasury auctions result of 2 and 5 year TNotes and 5 year TIPS.
The Psychology:
Public holiday in Hungary today and tomorrow, Thailand just today.
The Risk:
President Bush to host a G20 world leaders’ summit in Washington November 15th, the first in a series to try and sort out the global financial meltdown.
Today’s most interesting chart: Brazil Government USD 2014 bond
Emerging markets hit hard: their currencies, stock markets and bonds.
