http://www.athensnews.gr/portal/1/56932
Submitted by Tyler Durden on 07/12/2012 07:11 -0400
and...
Submitted by Tyler Durden on 07/12/2012 07:58 -0400
and.....
http://www.telegraph.co.uk/finance/debt-crisis-live/9393508/Debt-crisis-live.html
There's a little bit of profit taking, I don't think it's anything more than that. People are still a little bit concerned about what's going to happen in Spain and don't want to run a long position there for too long.
Spending cuts are putting ISTAT at risk. From January onwards we will not issue any statistics.
The move sparked a fierce responsefrom the unions, which described the announcement as a "declaration of war" and an "earthquake," with the hardline stance certain to add to the problems facing the new Socialist government led by Francois Hollande.
http://www.zerohedge.com/news/full-frontal-ecbs-zirp-record-%E2%82%AC484-billion-drop-overnight-deposits
Submitted by Tyler Durden on 07/12/2012 06:46 -0400
Submitted by Tyler Durden on 07/12/2012 03:21 -0400
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1. RENEGOTIATION After coming in for much criticism that they were doing little or nothing to seek a renegotiation of the more unfavourable terms of the memorandum, the three government party leaders held a meeting on Wednesday evening to devise a strategy to seek changes. Few details emerged from the meeting, but reports suggest the three leaders agreed to press ahead with a number of reforms while, at the same time, pressing the need for adjustments. Speaking afterwards, government spokesman Simos Kedikoglou said the meeting took place "in a very good climate". "The common goal of renegotiation will be achieved," he said.
2. PRIVATISATION The state lottery and the former Olympic press centre (now Golden Hall) are the only two assets that the state will sell this year, the head of the state privatisation agency said on Wednesday. "There can be financial completion of only two projects this year, Costas Mitropoulos, CEO of the Hellenic Republic Assets Development Fund, said, citing "administrative delays". That would mean the country falls well short of the more than 3bn euros it had aimed to raise this year, with the privatisation of groups like natural gas company DEPA, gas grid operator DESFA, Hellenic Petroleum and betting firm OPAP being pushed into next year.
3. WAGES There will be no further cuts to the minimum wage, the labour minister assured on Wednesday, adding the more difficult issue of restoring lowest-scale wages to their February levels was a matter for the government to raise with the troika whenever the government believed the time to be opportune. Yiannis Vroutsis will continue talks with the social partners next week to discuss the issue of the national collective labour agreement.
4. PAPANDREOU'S BROTHER Financial crimes prosecutor Grigoris Peponis on Wednesday called for additional investigation into the possible involvement of Andreas Papandreou, the brother of former premier George Papandreou,in transactions involving credit default swaps (CDS) on Greek debt by the Hellenic Postbank in late 2009. In requesting further investigation of the case, Peponis essentially contradicted the view expressed by a first-instance court prosecutor who said there was no evidence to support the claims.
5. DETENTION CENTRES The government plans to establish 25 migrant detention centres, the public order minister said on Wednesday after a meeting with the EU home affairs commissioner. Nikos Dendias also said that police recorded the illegal entry of 44,602 migrants in the first six months of this year, up from 38,061 in the same period in 2011.
6. STRUCTURAL FUNDS For the first time, the country has met its goals for the absorption of EU structural funds, European Commissioner for Regional Policy Johannes Hahn said on Wednesday. The absorption goals for 2010 and 2011 - 3.2bn euros and 3.5bn euros, respectively - were largely met, he said, adding that the country was on target to receive 3.7bn euros this year.
7. FARMER CHARGED A 39-year-old farmer was charged in Corinth on Wednesday with multiple counts of arson. The man was arrested the previous day after a wildfire broke out in near Kalentzi. During questioning, it emerged that he had set fires in the same area in 2007. He will face an investigating magistrate on Friday.
8. HEAT IS RISING Temperatures in Attica are expected to reach 40C on Thursday, as the heatwave continues. In the eastern part of mainland Greece, temperatures will reach 41-42C in places. The public are advised to use sunscreen and wear a hat and sunglasses, especially in the period from 11am to 3pm. Vulnerable groups who do not have access to air conditioning are advised to spend the day in the air-conditioned public spaces that are available across the country. For a list of the "cool spaces" in Athens, click here (in Greek).
9. ACCIDENT A motorcyclist who eyewitnesses say drove through red lights and struck 7-year-old twins and their mother on a central Athens street on Thursday morning has been taken into custody. The accident happened at the corner of Patision and Troia streets. The twins - a boy and girl - have been taken to hospital, where there are reported to be in a critical condition. The motorcyclist is a 21-year-old navy officer.
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Swiss 10 Year: 0.52%
( two year at - .35 % )
The record Swiss nominal 10 year yield is presented without commentary (but in conjunction with the previous post showing an outflow of just why of €500 billion overnight from the ECB as a clue where the money is going).
* * *
Good luck SNB: you will need it.
Overnight Summary: No More SSDD
Something is different this morning. Whether it is the aftermath of yesterday's inexplicable 10 Year auction demand spike, or more explicable plunge in the ECB's deposit facility usage, or, the fresh record low yield in the supreme risk indicator, Swiss Ten Year bonds, now at under 0.5%, market participants are realizing that the status quo is changing, leading to fresh 2 year lows in the EURUSD which was at 1.2175 at last check, sliding equity futures (those are largely irrelevant, and purely a function of what Simon "Harry" Potter does today when the clockworkesque ramp at 3:30pm has the FRBNY start selling Vol like a drunken sailor), and negative yields also for German, French, and Finland, with Austria and Belgium expected to follow suit as the herd scrambles into the "safety" of the core (which incidentally is carrying the periphery on its shoulders but who cares about details). Either way, Europe's ZIRP is finally being felt, only not in a way that many had expected and hoped and instead of the money being used to ramp risk, it is further accelerating the divide between risky and safe assets. Look for the Direct take down in today's 30 Year auction: it could be a doozy.
More on the overnight action from Bank of America:
Market action
For a sixth day in a row, Asian stocks fell as Australia's employers shed workers pushing up the unemployment rate. The unexpected interest rate cut by the South Korean central bank couldn't help lift stocks. Investors are worried that additional monetary policy will be unable to counter the global slowdown. The MSCI Asia Pacific Index fell 1.6%.
Looking at the individual Asian markets, the worst performer was the Korean Kopsi down 2.2% followed by the Hang Seng off 2.0%. Rounding out the markets in the red were the Japanese Nikkei and the Indian Sensex down 1.5%. On the flip side, the Shanghai Composite rose 0.5%.
In Europe, equities are down 1.1% in the aggregate while at home, futures are pointing to a 0.9% drop in the S&P 500 later today. Bloomberg headlines are suggesting that the sell off is due to investor's disappointment that the Fed did not explicitly call for more QE in the FOMC minutes. In our view, the Fed left the door open to additional policy action. Treasuries are bid across the curve. The five year yield is down 2bp while the 10-year and long bond are down 3bp. The 10-year yield is currently trading at 1.48%. In Europe, we continue to keep an eye on Italian and Spanish yields, both of which rose today. Italian 10-year notes are up 6bp to 5.84% and Spain's 10-year is 11bp higher to 6.61%.
The dollar is strengthening in the currency market. The DXY index is up 0.2%. Dollar strength is generally bad for commodity prices and we are seeing that play out today. WTI crude oil is down $1.17 to $84.61 a barrel and gold is up $12.30 an ounce to $1,564.08
Overseas data wrap-up
Overnight, the Bank of Japan left its monetary policy stance unchanged. The policy board voted unanimously to maintain
interest rates of 0% and leave its asset purchase program unchanged at 70 trillion yen. Slightly tweaking its economic projections, the central bank now expects growth of 1.7% and a 0.7% rise in consumer prices for the next fiscal year. Note that 0.7% yoy increase in consumer prices is below the BoJ's own target of 1% inflation. That suggests that the bank should do more monetary policy stimulus.
interest rates of 0% and leave its asset purchase program unchanged at 70 trillion yen. Slightly tweaking its economic projections, the central bank now expects growth of 1.7% and a 0.7% rise in consumer prices for the next fiscal year. Note that 0.7% yoy increase in consumer prices is below the BoJ's own target of 1% inflation. That suggests that the bank should do more monetary policy stimulus.
In Australia, employers cut payrolls helping push up the unemployment rate in June. Australia shed 27,000 jobs in June basically fully offsetting the revised +27,800 jobs created in the previous month. The increase firings helped push up the jobless rate for a second month in a row which now stands at 5.2%. Expectations for a 25bp rate cut is growing, traders are now pricing in a 78% chance the RBA will cut rates next month.
Late yesterday, Brazil's central bank cut its benchmark interest rate by 25bp to 8.00%. That was in line with consensus expectations. The cut is the eight straight for the central bank and the CB signaled that it will continue to cut interest rates in the months ahead as it tries to stimulate the domestic economy that is weakening due to a slowing global economy.
Industrial production in the euro area continues to weaken falling 2.8% mom in May building on the revised lower 2.4% drop recorded in the prior month. The euro area's manufacturing sector should continue to weak as the economy falls further into recession.
and.....
http://www.telegraph.co.uk/finance/debt-crisis-live/9393508/Debt-crisis-live.html
12.22 While Spain and Italy's bond yields tick up, Holland's two-year bond yields turned negative for the first time ever on Thursday. They traded at -0.001pc. That means investors are paying for the privilege of Holland holding their cash.
11.55 Spain and Italy's bond yields are on the rise again. Spain's 10-year yields were up 11.2 basis points to 6.6pc while Italy's rose 8.6 basis points to 5.9pc. One trader told Reuters:
There's a little bit of profit taking, I don't think it's anything more than that. People are still a little bit concerned about what's going to happen in Spain and don't want to run a long position there for too long.
11.50 Away from the OBR report, the upper house of Italy's parliamenthas approved the European Union's new fiscal pact. The measure will now move from the Senate to the lower house Chamber of Deputies.
11.26 Over in Italy, the statisticians are threatening to down tools. The national statistics body, ISTAT, has threatened to cease issuing data on the economy, saying it has been crippled by government spending cuts. ISTAT President Enrico Giovannini told daily La Repubblica in an interview:
Spending cuts are putting ISTAT at risk. From January onwards we will not issue any statistics.
We will not issue data on inflation, deficit, household income, job data. That will trigger very high EU fines for our country for every day of delay. I do not think the government and the parliament will want to get to that point.
11.08 Ireland's GDP figures are now officially out. As we wrote at 8.00, the data was accidentally leaked last night. Figures seen by RTE Newsshow the Irish economy shrank 1.1pc in the first three months of the year compared to the final quarter of 2011. The National Accounts show a drop in net exports and in personal consumption were the main reasons for the fall.
Data from the Central Statistics Office shows the economy did indeed shrink 1.1pc in the first quarter of the year. Revised figures from a quarter earlier showing a 0.7pc rise rather than 0.2pc fall mean the country did not fall back into recession last year.
Growth for 2011 was also revised sharply up to 1.4pc from a provisional 0.7pc.
10.36 Back to the job losses at Peugeot. France's prime minister, Jean-Marc Ayrault, has described the cuts as a "real shock" for workers and the car industry. The French government said it would verify that Peugeot delivered on a promise to help find jobs for the thousands of workers it is laying off and that a state support plan for the auto industry would be produced by July 25.
10.17 Some relief for Italy, where one-year borrowing costs fell to 2.697pc at an auction of one-year bills this morning. A month ago Italy had paid 3.97pc to sell one-year bills, the highest since December, at an auction that came ahead of elections in Greece.
Italy sold the planned €7.5bn in bills, with bids totalling 1.55 times that amount, marginally down from a month ago.
Reuters reports that analysts says uncertainty and volatility remain very high but Italian yields have eased from a month ago following progress on Spain's bank bailout and an accord on a more flexible use of eurozone rescue funds to buy government bonds.
10.12 And some depressing data from Greece. Unemployment hit a new record high of 22.5pc in April, from a revised 22pc in March. Alberto Nardelli of electionista.com tweets:
10.06 Industrial production figures for the eurozone are out and show a 0.6pc increase in May from the previous month. Year-on-year, it's fallen 2.8pc.
09.18 French car maker, Peugeot Citroen, has announced plans to slash 8,000 jobs and close an assembly plant, with the business saying "the depth and persistence of the crisis impacting our business in Europe have now made this reorganisation project indispensable." It will cease production at its Aulnay site near Paris. AFP reports that unions have condemned the move:
The move sparked a fierce responsefrom the unions, which described the announcement as a "declaration of war" and an "earthquake," with the hardline stance certain to add to the problems facing the new Socialist government led by Francois Hollande.
PSA Peugeot Citroen said it expected the European market to shrink 8pc this year, and had to adjust its business in the face of a worsening outlook.
For the period 2007-12, the market is down 23pc, it said, compounding problems which left its plants operating at just 76pc of capacity in the first half of this year.
08.59 The euro is underperforming this morning too. Reuters reports that on the EBS trading platform, the currency at one point fell to a fresh two-year low against the dollar, touching $1.2208.
08.52 On the markets this morning, equities are somewhat under the weather. Investors took their money off the table amid uncertainty over whether the US Federal Reserve will launch more stimulus measures as global growth worries persist.
Minutes from last month's Fed meeting, published late on Wednesday, showed the world's biggest economy would have to worsen further before the central bank took any more easing steps. A few officials thought further stimulus was justified, but the majority remained unconvinced.
and 484 billion euros leaves the Overnight deposits - flowing into safe europe bonds and US debt one can assume....
Full Frontal Of ECB's ZIRP: Record €484 Billion Drop In Overnight Deposits
A week ago, the ECB decided to lower its deposit rate to 0%. Today, we get the first real full frontal visual of what this really means, and how banks react under ZIRP. As the ECB just reported, overnight deposits parked in its electronic basement by member banks plunged by the most on record, or €484 billion in one session. This is a lot of money. And this money has to go somewhere. Judging by the reaction in European equities, which continue sliding, bank did not put the money in stocks. Also, judging by the continued slide in the EUR and the daily record negative yields in core European bonds, banks are aggressively buying up "safe" debt, as well as that of other currencies, to place this ZIRP cash somewhere liquid regardless of location, leading to one-time strange events like yesterday's "WTF" 10 Year auction. If indeed the case, look for some serious insanity in the form of record Direct take down in today's 30 Year auction. Which, along with other much more weird things, is to be expected when one has a nearly half a trillion fund flow overnight, and don't forget to add hundreds of billions in now defunct European Money Market funds which have to be parked somewhere as well. One thing is certain: goodbye 0.25% deposit income on nearly €1 trillion in mostly German and Dutch-bank sourced cash.
ECB Deposit facility usage:
Daily change in the facility usage:
http://www.zerohedge.com/news/sp-futures-day-session-lows-german-2y-hits-record-negative-yield
S&P Futures At Day Session Lows As German 2Y Hits Record 'Negative' Yield
As Europe opens, S&P 500 e-mini futures (ES) have given up all gains for the day and are back below yesterday's day session lows (down 9pts from the close). German and Dutch 2Y interest rates just hit record lows at -0.021% and 0.033% respectively(and Swiss 2Y is back at -35bps just off its lowest ever). Major AUD weakness following its worst of the year drop in employment is impacting carry pairs (notable JPY strength) and the EURUSD is back at yesterday's lows - which is pushing the USD up to week's highs and dragging commodities lower (with Silver and WTI dropping the most). Treasury yields are leaking lower but remain well off post-10Y-auction spike lows for now. Meanwhile - Italian and Spanish sovereign bond spreads are modestly lower. This seems like a combination of technicals from CDS-cash basis traders stepping in at notably wide spreads as well as the considerable decompression in subordinated bank spreads relative to senior/sovereigns - which is/was a popular trade and seems to have gathered steam once again as the Spanish MOU is leaked (and as we suggested Subs get 'bailed-in').European credit remains markedly underperforming European stocks post EU-Summit, but the stocks seem to be playing catch-down for now today.
Subordinated bank spreads in Italy and Spain are decompressing rapidly...
while sovereigns are maintaining the modest strength (especially odd in context to EUR weakness) but remain wide still of post EU Summit opening levels (with Portugal deteriorating rapidly)...
though by the 'cheapness' of Spanish bonds relative to CDS (the light blue 'basis' line), we would suspect this is just RV flow and not renewed real money buying - which helps explain Italy's outperformance in the last week or so - since the basis compressed so much (black)...
and financials - expectedly so - are leading the weakness - but credit overall is considerably weaker than stocks (dark blue) seems to believe they should be...
But S&P 500 futures have lost all of the afternoon's post-FOMC plunge rampfest gains...
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