Wednesday, December 16, 2015

Economic News , Data & Views ( December 16 , 2015 ) - Overview ( Fed Decision On Rates / US Political Scene Sees Last Debate for 2015 / Carney Flip Flops ) ...... Europe Overview ( Greece - Economic & Political Items , Austria - HETA Creditor Group Nixes Recovery Below Par , EZ Dec PMI Eases Lower , Finland Items - Economy In Focus - Still Not Performing , UK Oct Avg Weekly Earnings Weakens , Germany In Focus - VW In the News Again / German Gov't To Sell 202 Bn in Bonds / Bills In 2016 , EU Summit - Russian Sanctions Not on the Table for discussion , Portugal's New Gov't Starts Rolling Back Austerity Measures ) ....... Asia & Emerging Nations (Asia stocks rally before Fed as market participants appear to expecting dovish tightening. Additional Items -- China In Focus / Japan Item / South Korean Economy In focus )



Overview.......






BofA: " Today’s statement and press conference failed to meet the market’s hurdle for a dovish hike"












Fed Reveals Rate Hike "Plumbing" Details: Removes Cap On Reverse Repos, Limits Each Counterparty To $30 Billion





























Not dovish: FOMC SEP:STILL SEE MEDIAN FFR 1.4% END 2016;2017 2.4% V 2.6%








Morning Note: 1. US to end oil export ban. 2. Carney flip-flop volume two. 3. I'm told there's a Fed decision?!

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Minimum activity in bonds ahead of FOMC decision as rate hike fully priced in after 7yrs of zero interest rate pol.


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Fact checks of the candidates during Tuesday's :

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"They're not coming to this country": Trump appears to have no regrets



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Europe.......




Evening Wrap.....





DETAILS: Russia to sue Ukraine if it fails to pay by the December 20 deadline


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ABC: "Rajoy: We are a moderate people, quiet, formal, serious people".


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El País: "Youth attacks Rajoy during election walkabout in Pontevedra".







MoF says it will soon table a draft bill protecting primary residences from foreclosures in case of tax arrears.








The government admits it has statistics on recent EU migration - and won't publish them. Odd.








As Tsipras insists it's time for other EU states to take action on migrant crisis, Merkel says Greece & Italy to blame for relocation delays








Morning items.....









According to the EC, there were 1.28 million illegal border crossings into the EU between January and November.

























’s highest administrative court finds that property tax was applied on inflated statutory values, need adjust











’s 4 main banks will have to reduce their employees by at least 5,694 & shut down about 180 branches by 2017.













Eurozone deputies expected to meet on Thursday to approve next 1bn euro tranche in Greek bailout funding









2009: 19 domestic, 36 foreign (branches),16 cooperative banks 2015: 7 domestic, 5 foreign, 3(?) cooperative








| *HETA CREDITOR GROUPS WON'T ACCEPT RECOVERY BELOW PAR










Court ruling creates new complication for gov't, this time with property tax.



















| *FINLAND'S STUBB: ECONOMY SUFFERS FROM `FEAR AND PARALYSIS' ...fear of still being stuck in EU?









| OCT AVG WEEKLY EARNINGS (EX BONUS) 3M/Y: 2.0% V 2.3%E ...no wonder Carnage flipflopped (again)


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| *NO PLANS TO DISCUSS RUSSIAN SANCTIONS AT SUMMIT: EU OFFICIAL








| European Anti-Fraud Office is investigating whether Volkswagen has illegally received E.U. funds -- Süddeutsche Zeitung










| *GERMAN GOVERNMENT TO SELL EU202.5 BILLION IN BONDS, BILLS 2016 ...nominal










Germany's benchmark index Dax trades 0.4% higher after open on historic Fed decision day as mkts expect dovish hike.
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IMF's Velculescu: needs a significant reduction of its debt & reforms in the social sec & pension system















Doubts over ’s prospects means distressed debt funds 'll seek discounts that banks may be unwilling to accept









Greek gov passes bill, giving lenders a say in state selloffs & letting banks sell bad loans, w no losses. Big test is pension reform in Jan






Asian and Emerging Nations ......







| *JOY GLOBAL SEES 2016 ADJ. EPS 10C-50C, EST. $1.06 ...aka "ouch"







| *CHINA 2015 GDP REAL GROWTH EXPECTED AT 6.9%: PBOC PAPER ...why not in 4 decimal places?






| *S. KOREA SEES UNFAVORABLE EXPORTS CONDITION NEXT YR: MONEYTODAY CITING FINMIN CHOI








| *CHINA CSRC FINDS 103 PROBLEMS IN INTERNAL INVESTIGATION ...that's 4 more than Jay-Z got!!








'Risk On' is name of the game ahead of historic Fed decision. Nikkei jumps by 2.6% to 19049.91 while Yen strengthens

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Yuan Erases Losses in Hong Kong on Suspected PBOC Intervention


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Good morning from Berlin. Asia stocks rally before Fed as market participants appear to expecting dovish tightening.


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Wot?














Strong possibility PBOC will widen the yuan's trading band next year to accommodate more weakening- China Minzu Securities











BTW, Baltic Dry nosedives to new record low of 484 ahead of FOMC.











Short selling ratio yesterday on A50 ETF (2822.HK) 58%, RMB A50 ETF (82822.HK) 89.4%. Both multi-month highs.










'Twas the night before the Fed meeting...and PBoC sets the yuan midpoint weaker for an eighth day straight (6.4626 vs 6.4559). Now -4.2% YTD









OIL MAY TREND LOWER ON WEAK DEMAND, HIGH OUTPUT: INDONESIA. And higher on Virtu stop hunts