Overnight Markets- Leading News-Update 3

Japan Inc, Battered by Strong Yen

http://www.bloomberg.com/news/2012-02-02/japan-inc-suppliers-bleed-jobs-as-yen-batters-tv-chip-profits.html

Eurozone Sales Fall

http://www.reuters.com/article/2012/02/03/us-eurozone-sales-idUSTRE8120H420120203

Euro Area Mfg/Services Expands Lead by Germany

European services and factory output strengthened in January, led by growth in Germany and France, as the region’s leaders sought a solution to the debt crisis.

A euro-area composite index based on a survey of purchasing managers in both industries rose to 50.4 from 48.3 in December, London-based Markit Economics said in a report today. January’s reading is unchanged from an initial estimate on Jan. 24. A reading above 50 indicates expansion.

Finance ministers of the AAA rated countries using the euro — Germany, Luxembourg, the Netherlands and Finland — are set to meet today in Berlin as European leaders try to end the region’s debt crisis. While the turmoil and cooling global export demand has undermined the recovery, business confidence has improved and European Central Bank President Mario Draghi has said 2012 will be a “much better” year.

Today’s data confirm that “business conditions stabilized following declines seen in the final four months of last year and that the region may avoid a slide back into recession,” Chris Williamson, chief economist at Markit, said in the report. “For the first quarter, gross domestic product for the region may well show a small gain.”

The euro strengthened after the report, rising 0.2 percent to $1.3171 as of 10:45 a.m. in Frankfurt.

European Services

Manufacturing and services growth accelerated to a seven- month high in Germany and a five-month high in France, while contractions in Spain and Italy eased, Markit said. A composite gauge of euro-region services rose to 50.4 in January, up from 48.8 in December.

German business confidence jumped to a five-month high in January. The Ifo institute’s business climate index, based on a survey of 7,000 executives, climbed to 108.3 from 107.3 in December, the group said on Jan. 25. The report adds to data that the country has shaken off a probable economic contraction in the fourth quarter.

Still, the euro-area economy may struggle to gather strength after expanding just 0.1 percent in the third quarter as governments from Ireland to Spain step up spending cuts to help restore investor confidence. European unemployment remained at the highest in almost 14 years in December, suggesting the region’s debt crisis and cooling economic growth has prompted companies to cut jobs….

http://www.bloomberg.com/news/2012-02-03/euro-area-manufacturing-services-expand-led-by-germany-france.html

Greeks Reject Wage Cuts

http://www.washingtonpost.com/business/markets/despite-pressure-greek-unions-employers-reject-wage-cuts/2012/02/03/gIQAnHdMmQ_story.html

European Credit Markets

Italian and Spanish government bonds fell as Greece struggles to reach accords with European officials and its creditors to avoid a default next month, sapping demand for the region’s higher-yielding assets.

German bonds fell, heading for a weekly decline, as U.S. employment climbed more than economists forecast in January and the jobless rate slipped to the lowest in three years. Italian 10-year yields rose from the least since October after a report showed the country’s services sector contracted more than estimated. The French-German 10-year yield difference dropped below 100 basis points for the first time in almost two months.

“There’s an element of caution out here with regards to Greece,” said Marc Ostwald, a fixed-income strategist at Monument Securities Ltd. in London. “The Italian data was very poor and the underlying picture is that the non-core economies are in a pretty dire state.”

Italy’s 10-year bond yield rose five basis points, or 0.05 percentage point, to 5.66 percent at 3:11 p.m. London time, after falling to 5.54 percent, the lowest since Oct. 10. The 5 percent security due March 2022 dropped 0.445, or 3.45 euros per 1,000-euro ($1,311) face amount, to 95.625. Spain’s 10-year yield rose five basis points to 4.98 percent.

Greece is trying to agree on a rescue plan that will include a loss of more than 70 percent for bondholders in a voluntary debt exchange and loans that may exceed the 130 billion euros now on the table.

Italian Output

An index based on a survey of Italian purchasing managers in services was at 44.8 in January from 44.5 in December, Markit Economics said in a report today. Analysts estimated it would rise to 45.4. A reading above 50 indicates expansion.

Germany’s 10-year yield climbed eight basis points to 1.94 percent, after falling to 1.82 percent. That left the yield eight basis points higher since Jan. 27. French 10-year yields were two basis points lower at 2.89 percent.

The spread between the securities narrowed 10 basis points to 95 basis points, the first time it has dropped below 100 basis points since Dec. 6. France’s 10-year yield slipped 13 basis points yesterday as borrowing costs declined at a sale of benchmark 10-year debt.

French borrowing costs fell at a sale of benchmark 10-year deb yesterday. The nation sold 5.698 billion euros of bonds at an average yield of 3.13 percent, compared with 3.29 percent at the previous auction on Jan. 5.

“The auctions this week helped to bolster confidence and there’s a lot of interest in French bonds,” said Orlando Green, a fixed-income strategist at Credit Agricole Corporate and Investment Bank in London.

Services, Manufacturing

Bunds also fell as data showed Germany and France led growth in European services and factory output, fueling optimism the bigger economies can withstand the debt crisis.

A euro-area composite index based on a survey of purchasing managers in both industries rose to 50.4 from 48.3 in December, London-based Markit Economics said in a report today. January’s reading is unchanged from an initial estimate on Jan. 24. A reading above 50 indicates expansion.

The 243,000 increase in American payrolls was the most since April and exceeded all estimates in a Bloomberg survey, Labor Department figures showed in Washington. The unemployment rate dropped to 8.3 percent, the lowest since February 2009.

Volatility on Portuguese debt was the highest in euro-area markets today, followed by Finland, according to measures of 10- year bonds, two- and 10-year spreads and credit-default swaps. The yield on Portugal’s securities due April 2021 dropped for a fourth day, declining by 62 basis points to 14.18 percent. Finland’s 10-year yield rose five basis points to 2.34 percent.

http://www.bloomberg.com/news/2012-02-03/german-10-year-bunds-advance-as-stocks-decline-boosting-demand-for-safety.html

RDS Says $70 Dollar Oil Likely in 2012

http://www.telegraph.co.uk/finance/oilprices/9057905/Oil-price-could-fall-to-70-in-2012-amid-volatility-Shell-warns.html

 

What $100 Barrel Oil Will Get You 

Iran Gold and Foreign Reserves
February 02, 2012 — Updated February 01, 2012 15:38 HKT
Iran Gold and Foreign Reserves

Iranian official dismisses fears of Forex reserves shortage

Chairman of Tehran Chamber of Commerce Yahya Ale-Eshagh on Tuesday dismissed fears of a shortage of foreign exchange reserves in Iran, saying the country has US$120-B and 907 tons of Gold in reserves, the semi- official Mehr news agency reported.

Speaking to reporters on Tuesday, Ale-Eshagh said that Iran purchased the Gold in recent years at an average price of US$600 oz and the current price of Gold has almost tripled, said the report.

“We do not have any shortage of foreign currencies or Gold in the face of local demand,” he was quoted as saying.

The Chairman’s remarks came as the recent turmoil in Iran’s Gold and currency market led to a sudden increase of over 10% in commodity prices and caused panic among the citizens.

In the past few weeks, the Iranian rial’s value slumped critically following the decision of the United States and its European allies to sanction Iran’s Central Bank and oil imports.

Ale-Eshagh attributed the recent fluctuations in the gold and currency markets to mismanagement by some state bodies and called for tighter monetary control on commodity and currency markets, said Mehr.

Last week, the Islamic republic announced that it would increase bank interest rates in a bid to deal with the instability of its currency value and the impact of the sanctions.

Iranian Minister of Economic Affairs and Finance Shamseddin Hosseini said earlier that Iranian President Mahmoud Ahmadinejad agreed with the Money and Credit Council to increase bank interest rates.

“The interest rates on bank deposits will increase by up to 21%,” Mr. Hosseini said.

On Thursday, the governor of Iran’s Central bank Mahmoud Bahmani announced a new rate of USD of 12,260 Rials and said the rate would be valid in the banking system within a couple of days.

Mr. Bahmani’s remarks, however, did not affect significantly the black market, where 1 USD was traded at about 18,500 Rials Tuesday. Several dealers in Tehran’s Ferdowsi Square were arrested by the police on the same day, according to Mehr.

Recent market figures indicate a loss of some 80% in value of the Iranian Rial vs. the USD, compared to its trading value in December 2010, when 1 USD was traded at about 10,700 Rials.

Paul A. Ebeling, Jnr.
http://www.livetradingnews.com/iran-gold-and-foreign-reserves-62149.htm

 

Mick Davis Take the Cake as Xstrata Gets the Drivers Seat In 88 Billion Deal

http://www.ft.com/intl/cms/s/0/a672e172-4d6c-11e1-b96c-00144feabdc0.html

London Times Set to Expire on Rupert Murdochs Police Bribery Phone Hacking Crimes at Sun

I have not covered the demise of the Australian Murdochs broadcasting empire but there are cops going turn states evidence on this crime gang.  You wonder if the British-Israel gang at the WSJ/Barrons are getting nervous and calling the Dow illuminati family back.

http://www.abc.net.au/news/2012-01-20/wright-britains-newspaper-of-record/3783252

Greece’s New Financial Black Hole

http://www.guardian.co.uk/business/2012/feb/02/greece-new-black-hole

IMF Admits Austerity Harming Greece 

I wonder if they will DSK this guy?

http://www.guardian.co.uk/business/2012/feb/01/imf-austerity-harming-greeve

This entry was posted in Uncategorized. Bookmark the permalink.

2 Responses to Overnight Markets- Leading News-Update 3

  1. zephyrglobalreport.com says:

    good catch. the gold buying is probably why they are being invaded, along with killing the petro dollar scam.

  2. vino says:

    if the 907 tonnes of iranian gold reserves are anywhere in the ballpark then iran is sitting pretty good.. Whats that $46 billion worth of gold. Interesting number. One would think the british would want to invade iran just to get the gold…

    Iran Gold and Foreign Reserves
    February 02, 2012 — Updated February 01, 2012 15:38 HKT
    Iran Gold and Foreign Reserves

    Iranian official dismisses fears of Forex reserves shortage

    Chairman of Tehran Chamber of Commerce Yahya Ale-Eshagh on Tuesday dismissed fears of a shortage of foreign exchange reserves in Iran, saying the country has US$120-B and 907 tons of Gold in reserves, the semi- official Mehr news agency reported.

    Speaking to reporters on Tuesday, Ale-Eshagh said that Iran purchased the Gold in recent years at an average price of US$600 oz and the current price of Gold has almost tripled, said the report.

    “We do not have any shortage of foreign currencies or Gold in the face of local demand,” he was quoted as saying.

    The Chairman’s remarks came as the recent turmoil in Iran’s Gold and currency market led to a sudden increase of over 10% in commodity prices and caused panic among the citizens.

    In the past few weeks, the Iranian rial’s value slumped critically following the decision of the United States and its European allies to sanction Iran’s Central Bank and oil imports.

    Ale-Eshagh attributed the recent fluctuations in the gold and currency markets to mismanagement by some state bodies and called for tighter monetary control on commodity and currency markets, said Mehr.

    Last week, the Islamic republic announced that it would increase bank interest rates in a bid to deal with the instability of its currency value and the impact of the sanctions.

    Iranian Minister of Economic Affairs and Finance Shamseddin Hosseini said earlier that Iranian President Mahmoud Ahmadinejad agreed with the Money and Credit Council to increase bank interest rates.

    “The interest rates on bank deposits will increase by up to 21%,” Mr. Hosseini said.

    On Thursday, the governor of Iran’s Central bank Mahmoud Bahmani announced a new rate of USD of 12,260 Rials and said the rate would be valid in the banking system within a couple of days.

    Mr. Bahmani’s remarks, however, did not affect significantly the black market, where 1 USD was traded at about 18,500 Rials Tuesday. Several dealers in Tehran’s Ferdowsi Square were arrested by the police on the same day, according to Mehr.

    Recent market figures indicate a loss of some 80% in value of the Iranian Rial vs. the USD, compared to its trading value in December 2010, when 1 USD was traded at about 10,700 Rials.

    Paul A. Ebeling, Jnr.
    http://www.livetradingnews.com/iran-gold-and-foreign-reserves-62149.htm

Leave a Reply

Your email address will not be published. Required fields are marked *

thirteen + one =

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>