Thursday, August 27, 2015

Economic News , Data & Views ( August 27 , 2015 ) ..... Greece in focus ( Economic data , political updates - domestic as well as international ) ...... Broader Europe in focus ( Ukraine reached deal with private investors for both 20% debt write-off and 4 year extension - Russia says that deal doesn't apply to debt Russia holds which is considered by Russia sovereign rathe than commercial debt , market moving news and markets moving upward today , political news - Italy and Netherlands in focus , Nazi gold train found in Poland , Refugee situation in focus ) ......Asia and in particular China in focus ( Market moving news and markets truly having a bounce for Thursday - China's Regulators continue to pull levers and push buttons to keep Rube Goldberg stock markets moving in the right direction ! )

Evening Tweets.......

BREAKING: China's state agency for margin finance is raising 1.4 tln RMB interbank loans to prepare for a new round of stock market rescue

Basically the state agency for margin finance is to borrow more money from banking system, then pour into stock market? Banking crisis next?

Chinese media report the state agency has been in active talks with big banks to arrange at least 1-yr loans for it to support stock market


National CPI (Jul) Y/Y 0.2% vs. Exp. 0.2% (Prev. 0.4%)

BREAKING: Liao Hong, President & Editor-in-Chief of Online, news portal of Communist Party mouthpiece People's Daily was arrested

Further debt haircut & further lowering of interest rates not on the agenda for , ESM's K.Regling said

Greece's first ever female PM: Supreme Court judge Vassiliki Thanou to head caretaker govt

Russia Will Demand Ukraine Return $3b Debt in Full: Siluanov

Chancellor Merkel: We cannot leave and alone in asylum and refugee problems. /ht

Morning tweets ....



Interim PM, Vassiliki Thanou, to be sworn in 20:00

My impression is rather, "how are we supposed to take this seriously?"

Jul credit contraction at 1.5% YoY from 1.7% in Jun. Net deductions at €607 mln in Jul from additions of €430 mln in Jun.

The Cult will be a pol party. to launch pan-European anti-austerity movement and political party


Greek debt is unsustainable. Here is how it need to be reduced.

Yet.. China will recover & go back to growth and Greece won't

Greece a step closer to formal announcement of election date

’s Regling: Threat of Grexit remains if conditions aren’t fulfilled.

ND leader Meimarakis in fighting mood, says he wants debate with all leaders & 1 with just Tsipras. "Any time, any place, any rules"

Greek bank deposits by businesses and households fell to €120.8bn in July from €122.2bn in Jun despite cap controls.

State revenues 4 billion euros short of target

ECB: Eurozone loans to private sector increase

Popular Unity would take Greece out of euro if needed, says Lafazanis

Broader Europe.....

No mention of time-frame in text. Recall in Five Presidents Report was marked to happen "at the latest by 2025".

Fwiw , an interesting article to consider. Looks at both 5 Presidents Report & 4 Presidents Report.

to fall to 1.05 in 3 months - UBS forecasts. - Great news for DAX, bad news for SNB

Dutch campaign for non-binding referendum on EU Association Agreement with Ukraine clears first hurdle

Lega Nord leader: Ready to re-hash alliance with Berlusconi if he breaks ties with Merkel

Overwhelmed by demand, Brussels' office asks asylum seekers to come back later.

: BREAKING: Ukraine reaches crucial deal with international creditors to cut debt load

5y default probability plunges as FinMin reaches debt deal w/ private creditors that saves country $3.6bn.

New ONS figures: significant increase in EU migration to the UK as net migration hits a new record high

's Dax regains 10k, erasing all the losses of the week.

China , Asia , Emerging Markets , Commodities

And now we understand why US Treasury yields have risen of late despite turbulence in global equities !

Aggressive Chinese Intervention Prevents Another Rout, Sends Stocks Soaring 5% In Last Trading Hour; US Futures Jump

Your overnight China stock market summary: Up 2.6%, up 1.2%, up 2.8%, up 0.6%, up 2%, down 0.2%, up 5.3%

FACT 1: China stock market has lost US$5 tln since June. FACT 2: Total market caps of Brazil + Russia + India + South Africa is US$2.8 tln.

BREAKING: China will hold press briefing 10am Friday to announce details of pension fund investments, incl "up to 1/3 of capital" for stocks

Shanghai Comp closed up 5.4% at 3085 as investors turned the tables for risk.

cutting US treasury holdings, BBG reports. What would happen If everyone joins China.

Nikkei ends Up 1.1% at 18574.44 as sentiment lifted and risk assets rally.

Good morning. Relief rally takes hold in Asia after US stocks broke 7d losing streak as mkts turned tables for risk.

These PBoC loans have 6-day maturity, interest rate 2.3%, to provide credit lines to cash-strapped commercial lenders (after 50bps RRR cut!)

More short-term liquidity moves from the PBoC- an additional 140B yuan today (around $21.8B) after yesterday's RMB150B 7-day reverse repos.