October 2011
- 7 October 2011
1. BOE- Mervyn King- says the crisis is the worst ever and prepares to boost economy with 75 billion pounds loses faith in Europe and acts to stem “virus’.
* 10 October 2011
1. Short selling rising most since 2006 as $11 trillion is erased from stocks
2. ($6 trillion has been wiped off stocks since August 2011)
* 14 October 2011
1. US Money market funds cut lending to French Banks buy 44 % on debt crisis
* 17 October 2011
1. EU given 1 week to fix crisis as G-20 warns world Economy is threatened
* 19 October 2011
1. Banks in Europe vow $1 trillion of shrinkage amid threats of recapitalization
2. EU reaches deal on OPTIONAL NAKED CREDIT- SWAPS BAN on short –selling law
3. WALL STREET 1% to meet 2 billion seeking answers (Global Protesters)
4. EU raids Banks in probe of Interest Collusion
5. CHINA reduced its holdings of U.S TREASURIES by most in August
6. MORTGAGE Derivatives breaking with Bonds as PRIMEX tumbles- credit markets
7. Subprime Derivatives tumble
8. EFSF- European Financial Stability Fund- Temporary permanent rescue fund to be merged to create $1,3 trillion ‘firewall’ . Germans (Merkel) constitution does not provide for bailouts of other countries and prefers insurance fund for sovereign default, while the French PM (Sarkozy) wants a ‘BANK’. Governments need to recapitalize Banks and avoid assets being disposed of. (Note ‘privatization of assets !)
9. Europe may need $2 trillion as a bailout fund- says Nobel Laureate Michael Spence says
10. ’Deal with the Devil’ marks the end of 66 years after Hiroshima
11. U.S regulators approve regulations for the design of first carbon trading system in California. NB
* 24 October 2011
1.Treasury considers new first rate bonds with TIPS
* 25 October 2011
1. Euro regions ‘debt quality’ is worsening at a record pace- Chart of the Day
2. Spain slipping on deficit means the chances of contagion increase-Euro credit
3. Fed officials hint at more stimulus. The have extended balance sheet by $2 trillion and bought more mortgage backed securities. With no policy coming out of Washington, the Fed feels compelled to do something
4. . Greg Fleming –President of Wealth & Asset Management- Morgan Stanley Smith Barney- Advice to investors is caution. Has $1, 6 trillion under management.(Former president of Merrill lynch). Morgan Stanley has $50 billion in cash on balance sheet. “Focus on what you can control’. U.S is in a far better position, and particularly corporations to manage head winds ahead Europe-“Is there resources to deal with the problem?”. The wealth management business has over $500 billion and plan to double that. Fleming intends to take market leadership with the management team with the best financial advisors in the system. Wealth management has shown its stable with recurring income. Morgan Stanley & Smith Barney was put together in 2009 by Gorman. Growth expected to outperform into 2013, irrespective of what happens in the markets. NB
* 26 October 2011
1. 1.Avoiding catastrophe in Euro zone- emergency summit in Brussels- 14 crisis summits in 21 months
2. South Africa searches for alternative funding to avoid becoming debt ridden
3. .Gordhan budget address: “composition of spending has to change.(Euro debt crisis). We have to act with resolve to meet the challenges ahead for generations ahead. We must address inefficiency and waste in public administration. How do we achieve a balance in the economy? Revenue, spending, borrowing requires a balance with growth & inequality to expand growth. Growth is expected to be 3.4% next year and grow into 2014. Reform will deal with outside systemic risk to the economy.
4. Barclays on Italy. ‘Italy could become the scapegoat for every under achievement in the EU”. The EU has told Berlusconi to go back and stimulate the economy.
5. UBS sees America`s wealth management unit making a $1 billion profit
6. IRELAND Bank fund sticks to asset sales even as properties slump
7. SAUDI Arabia`s ARAMCO to lead Gulf by issuing bonds next year- Arab Credit
8. Libya- end of Kaddafi paves way for Shariah Banks- Arab Credit
9. Europe Bank loans 175% of GDP; recapitalizing Europe`s banks the priority in Brussels
10. IAN STANNARD ( MORGAN STANLEY)- end Euro buy recommendation, Bearish longer term – see 1.25
11. Danish banks seek to end short sale ban as capital flight hurts liquidity
* 27 October 2011
1. The EU Deal; $1,4 trillion boost with 50% haircut for Greece creditors
2. U.S-Super Committee flirts with failure on U.S $1.2 trillion debt cut target NB
3. Fed refuses to disclose internal view ; traders see underlying significant risks
4. US debt reduction looms- deadline of $1,2 trillion in cuts due by 23 November 2011
* 28 October 2011
1. Norwegian sovereign wealth fund sold out of all US mortgage assets
2. South African stocks close at a 6 month high
* 31 October 2011
1. Bloomberg probe into Iran firms
2. US has a raft of legislations against Iran
3. Bonds beating US stocks over 30 years for the first time since the 19th century
4. Europe`s Credit default swap bomb ready to explode- Buchanan
5. Russia prepared to offer Europe $10 billion through IMF- Kremlin aid says
6. EU-Rescue plan risks unravelling as economy slides into slowdown- euro credit
7. MF Global suspended trading by the NY Fed-creditors: JP Morgan, Deutsche Bank. Both act as Trustees for nominees??
8. MF Global files for bankruptcy Fidelity is the largest MF Global shareholder. – lists $41 billion in total assets & $39.7 in total debt. Not enough capital to have 2,5% leveraged 40 times and offer bonds at 6,25%. Expect ripple effect for financial institutions because a 40: to 1 leverage ratio, is unsustainable. The leverage should be 6:1 and not 40:1. Credit quality failure between U.S & Europe.
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