Quote:
‘Derivatives are based on the junk bond concept which was created by Bear Stearns and look where they are now. It was pass the parcel in a Belfast pub – the most dangerous game in the world’. Lord James of Blackheath (1938-)
The News:
Brazil December job losses 654,946, double December 2007’s, biggest fall in almost 10 years.
The Numbers:
Greenwich Mean Time, with expectations and previous figures in brackets.
(23:50) JP November Tertiary Industry Index –0.9% M/M versus revised +0.5% October.
03:45 JP auction result of 2.40% 30-year JGB; bid-to-cover 3.29, average yield 1.876%, stop 1.882%.
04:00 JP December Tokyo Condominium Sales –18.2% Y/Y versus –14.9% November.
05:00 JP December Consumer Confidence 26.7, Households 26.2, both record lows, versus 28.7 and 28.4 November.
07:00 JP December Convenience Store Sales +6.1% Y/Y versus +7.4% November.
09:30 GB December CPI (-1.2% to 0% M/M, +2.1% to +3.2% Y/Y, versus –0.1% and +4.1% November).
10:00 DE January ZEW Survey (Sentiment –60 to –35, Situation –95 to –67, versus –45.2 and –64.5 December).
10:00 EZ16 January ZEW Survey (-55 to –40 versus –46.1 December).
13:30 CA November Manufacturing Shipments (-6.0% to –0.2% M/M versus –0.5% October).
14:00 CA Bank of Canada interest rate decision (unanimously expected –50 basis points to 1.00%).
17:00 FR President Sarkozy meets bankers at the Elysée palace, Paris.
20:20 GB Bank of England’s King speaks at a CBI dinner, Nottingham.
The Psychology:
Obama’s inauguration as 44th president today; no CNBC TV slot for me this afternoon.
The Risk:
So many hopes riding on Mr. Obama and his team.
Today’s most interesting chart: GBP/JPY
Dipping to a record low at 127.50 within a downward-sloping ‘wedge’ formation.
