Quote:
‘Rare earths are to China as oil is to the Middle East.’ Deng Xiaoping (1904-1997)
The News:
Spreads widen to new records in 10-year Greek (988 bp), Irish (393) and Portuguese (366) sovereigns.
The Numbers:
British Summer Time, with expectations and previous figures in brackets.
00:01 GB August BRC Shop Price Index.
00:50 JP August M2 Money Supply +2.8% Y/Y, Adjusted Bank Lending –1.7% Y/Y, versus +2.7% and –1.7% July.
00:50 JP July Machine Orders +8.8% M/M, +15.9% Y/Y, versus +1.6% and –2.2% June.
00:50 JP July Trade Balance 916B, Current Account 1675B, versus 769B and 1047B June.
05:30 JP August Bankruptcies –14.3% Y/Y versus –23.1% July. 06:00 JP September Bank of Japan Monthly Report.
06:00 JP August Economy Watchers’ Survey Current 45.1, Outlook 40.0, versus 49.8 and 46.6 July.
07:00 DE July Trade Balance +€13.5B, Current Account +€9.0B, versus +€14.1B and +€12.9B June. Imports –2.2%.
09:30 GB July Industrial Production (+0.1% to +0.5% M/M, +1.7% to +2.1% Y/Y, versus –0.5% and +1.3% June).
09:30 GB July Manufacturing Production (-0.3% to +0.3% M/M, +4.7% to +5.2% Y/Y, vs +0.3% and +4.1% June).
11:00 DE July Manufacturing Production (0% to +2.0% M/M, +11.5% to +13.7% Y/Y, vs –0.6% and +10.9% June).
13:30 CA July Building Permits (-10.8% to –1.0% M/M versus +6.5% June).
14:00 CA Bank of Canada interest rate decision (many expect a 25 basis point rise to 1.00%).
15:00 CA August Ivey Purchasing Managers Index (53 to 57 versus 54 July).
19:00 US Fed’s Beige Book. 20:00 US July Consumer Credit (-$7B to $0B versus -$1.3B June).
The Psychology:
EU finance ministers cannot agree on bank levies and transaction tax on banks.
The Risk:
Another bout worrying about which banks are basically insolvent.
Today’s most interesting chart: Eurodollar future Dec10
Potential ‘diamond’ top.
