Germany increasingly frustrated over Greek Drama
Germany getting rather pissed off with Greece. Soon comes the time to let Greece go irrespective of political sweet talk? From Kathimerini.
German frustration with Greece boiled over on Thursday as opinion polls, newspaper editorials and some politicians called for the deeply indebted country to leave the euro zone before it further endangers their prosperity.
The country’s best-selling daily Bild summed up the view in Germany that Greece had pushed things too far by calling for a referendum on its bailout deal.
”Take the euro away from the Greeks!” read Bild’s front-page banner headline. ”We want our own referendum (on Greece in the euro zone) now.” Until this week most Germans had grudgingly accepted their government’s view that there was no alternative to Greece staying in the euro and its exit would lead to greater turmoil.
Full article here.
Forget leveraged EFSF, trade the leveraged DAX instead
Markets are again trading in a totally crazy fashion. From the huge sell off we saw a couple of days ago, to extreme squeezes to the upside, all orchestrated by Greek news. With the DAX first falling some 6.5% and then making it all back on news regarding referendums, in a matter of days, there sure must be somebody tempted to catch those moves. Wonder how many months of extra respiration Greece would obtain by a truly leveraged bet “timing” those news? Well, desperate people do desperate things.
Food prices falling
First great news out of Rome, at least for the ones planning to eat other than olives and parma ham. Food prices are falling according to the last FAO report.
The FAO Food Price Index (FFPI) averaged 216 points in October 2011, down 4 percent, or as much as 9 points, from September and 22 points, or 9 percent, below its peak of 238 points reached in February 2011. The Index has been falling steadily since June and, in October, dropped to an 11-month low, but still some 5 percent above the corresponding period last year. The decline reflects sharp decreases in international prices of all the commodities included in the Index.
Full report here.
Italy next
We have said it many times before, Greece is lost. The country needs to default, and restart the Economy. Receiving of bail out money cannot go on forever. The shift of focus should primarily be towards Italy. The country is struggling, and credit markets imply hard times ahead. Let’s see who will downgrade Italy first? Don’t be surprised if Italy screws everybody by selling new bonds in Lire. The Italian Economy is big enough to “depend” on it’s exports….
Charts, McDonough
News That Matters
Ft.com
Russia has reached agreement with Georgia on terms for entering the WTO, clearing the final hurdle in a deal that could see it join the body by December after 18 years of talks, the FT reports. Maxim Medvedkov, http://ftalphaville.ft.com/thecut/2011/11/03/723731/russia-clears-final-hurdle-to-joining-wto/
It’s “too soon” for China to discuss further bond purchases from Europe’s revamped rescue fund, Vice Finance Minister Zhu Guangyao said on the eve of the G20 summit in Cannes, reports Bloomberg.http://ftalphaville.ft.com/thecut/2011/11/03/723681/chinese-enthusiasm-on-efsf-cools/
Trading in iron ore derivatives almost doubled last month to hit a new record high as a slide in prices triggered a wave of interest in the developing market, says the FT. The volume of iron ore swaps cleared by Singapore’s SGX exchange, http://ftalphaville.ft.com/thecut/2011/11/03/723691/iron-ore-derivatives-trading-hits-record-high/
Iceland said NO….
….let’s see what happens in Greece. Video with Mr Hudson.
From Democracy to Debtocracy
Presented earlier this year on The Trader, Debtocracy, is probably still the best video covering the Greek mess. First they invented Democracy, then Debtocracy.
Greek exit only matter of time
Spiegel’s take on the Greek exit.
Last week, it looked as though the euro had been saved. Now, in the wake of Greek Prime Minister Papandreou’s announcement of a national referendum on the bailout package for his country, the common currency is even closer to the abyss. Still, say German commentators, it may have been the right move. Full article here.
Chart, Spiegel
Market Update post Fed. Dead Cat bounce?
Nothing new from the Fed today. Time to use this dead cat bounce wisely….
From the Fed. Information received since the Federal Open Market Committee met in September indicates that economic growth strengthened somewhat in the third quarter, reflecting in part a reversal of the temporary factors that had weighed on growth earlier in the year. Nonetheless, recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated. Household spending has increased at a somewhat faster pace in recent months. Business investment in equipment and software has continued to expand, but investment in nonresidential structures is still weak, and the housing sector remains depressed. Inflation appears to have moderated since earlier in the year as prices of energy and some commodities have declined from their peaks. Longer-term inflation expectations have remained stable.
SPX Chart Update
Quick SPX chart update in this dull pre Fed meeting European session.
Latest comments