Friday, August 6, 2010

International Headlines--$EWJ $EWA ;$CAF ECB supports temporary bans on naked short selling of European credit default swap

International Headlines
·         ECB supports temporary bans on naked short selling of European credit default swaps and shares in extreme market conditions, but has warned against permanent action to stop shorting (Reuters)
·         Spain – Bank of Spain’s eco growth accelerated in Q2 the Bank of Spain said. GDP rose 0.2% q/q. Bloomberg
·         German June IP – falls more than expected – came in dwn 0.6% in June vs. the St looking for a 0.7% increase. 
·         U.K. June Manufacturing Production Weaker than expected - +0.3% m/m vs. St. +0.6%.   
·         Russia - Drought to have limited economic impact apart from inflation; We lift end-2010 CPI forecast from 7% to 7.5%oya, and 2011 average from 6.9% to 7.5%; CBR expected to view the supply shock as transitory.
·         China widening out its stress tests – now wants banks to test loans tied to building materials firms (not just home mortgages) like steel and cement companies (Reuters) 
·         China's banking regulator issued a statement and said the dwn 50-60% housing stress tests doesn't mean the gov't's assessment of market trends or policy has changed (the statement hit after China closed and during early NY trading on Thurs).  DJ 
·         China autos – the South China Morning Post sees China auto sales slowing in H2. 
·         Taiwan – officials are asking banks to conduct housing stress tests and assume a 25% decline in prices – Bloomberg 
·         Japan – former BOJ official Taya says the BOJ may ease further if the yen rises to under 80 (easing could occur by extending the size or duration of a fixed interest rate funding operation).  Reuters 

·         Japan – the BOJ prob. not ready to take further easing action despite the yen’s strength – according to BBG, the BOJ is likely to hold off on increasing monetary stimulus next week as policy makers are unconvinced the yen’s approach toward a 15-year high will derail the nation’s economic recovery (Bloomberg) 
·         Japan’s corporate lobby urges again intervention – “market intervention is internationally frowned upon. That's not something an advanced nation should do to buttress the economy,"    DJ  
·         Australia - The RBA today released its quarterly Statement on Monetary Policy (SoMP), which included the Bank’s growth and inflation forecasts, to which there were only a few minor tweaks. The tone of the commentary was similar to that offered by the RBA on Tuesday in the statement accompanying the Board’s decision to leave the cash rate unchanged. The SoMP balanced the strength of domestic economic conditions against the impact of some signs of weakness offshore, and maintained that underlying inflation would trek higher over the forecast horizon (out to 2012).  
·         Nippon Steel sees the current correction in Asia’s steel market abating by CQ4 as output cuts help supply and destocking comes to an end in China (Reuters) 
·         Copper demand – Codelco sees China copper demand rising @ 8% this year and at a similar pace next year.  "The growth of demand in China is practically unstoppable," Rodrigo Toro, corporate senior sales vice president of Codelco, told reporters.  Sees copper prices averaging $3/LB.  Reuters/DJ 
·         Wheat prices have extended their gains w/some traders thinking they could hit $10 – Bloomberg 
·         Wheat - Trading companies that have sold Russian wheat to millers in Asia are considering declaring force majeure on supply contracts (Reuters)  
·         Gold – the GLD sees its first uptick in holdings since earlier in Jul (Reuters

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