Scribd Logo
Upload

Welcome to Scribd!

  • 93 views

    Morning Call June 28 2010

    Uploaded by

    chibondking
    The document summarizes key events from the weekend G20 summit and provides an outlook on important economic reports and market indicators for the coming week. At the G20, commitments to reduce government deficits were made but discussions around Chinese yuan revaluation were lackluster. US jobs reports and ECB financing operations will be closely watched events. Asian markets were mostly lower while US futures pointed to modest gains.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    Morning Call June 28 2010

    Uploaded by

    chibondking
    93 views4 pages
    The document summarizes key events from the weekend G20 summit and provides an outlook on important economic reports and market indicators for the coming week. At the G20, commitments to reduce government deficits were made but discussions around Chinese yuan revaluation were lackluster. US jobs reports and ECB financing operations will be closely watched events. Asian markets were mostly lower while US futures pointed to modest gains.

    Original Description:

    SSA Morning Call

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes key events from the weekend G20 summit and provides an outlook on important economic reports and market indicators for the coming week. At the G20, commitments to reduce government deficits were made but discussions around Chinese yuan revaluation were lackluster. US jobs reports and ECB financing operations will be closely watched events. Asian markets were mostly lower while US futures pointed to modest gains.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    93 views4 pages

    Morning Call June 28 2010

    Uploaded by

    chibondking
    The document summarizes key events from the weekend G20 summit and provides an outlook on important economic reports and market indicators for the coming week. At the G20, commitments to reduce government deficits were made but discussions around Chinese yuan revaluation were lackluster. US jobs reports and ECB financing operations will be closely watched events. Asian markets were mostly lower while US futures pointed to modest gains.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Morning Call – 6/28/2010

    Stone Street Advisors


    ChiBondKing – [email protected]

    Morning Focus
    The big event this weekend was the result of the G20 summit, which I’m sure you’re familiar with by now. Joe Weisenthal
    summed up what happened at the G20 quite nicely, you can find a link to his article in the interesting morning reading. Besides
    making rosy optimistic promises about halving deficits in the next few years, the G20 was surprisingly lackluster on the “China
    Issue” around the Yuan revaluation. Most notably were the rather “tame” statements saying “we expect the Yuan to rise over
    time”, etc. This calls into question the action by the China central bank earlier this month in floating the Yuan, which, in my
    opinion was nothing more than throwing a ‘teaser’ at the G20 participants: It appears to have worked. Light news over the
    weekend, but for the week ahead we have a lot: 600B ECB financing operation, US jobs number. Asia indices mostly down with
    the exception of HK shares: Australia -0.65pct to 4384.50, Nikkei -0.45pct to 9693.94, Hong Kong +0.17 to 20726.68, Shanghai -
    0.69pct to 2535.28. US futures posting modest gains this morning, overnight US bond markets relatively quiet.

    Notable Overnight Headlines


    Asia
    China G20
    o HU SAYS CHINA ALSO TRYING TO MAKE ECONOMIC POLICIES MORE FLEXIBLE, ‘must be cautious about timing,
    intensity of existing stimulus policies’ (Reuters)
    o G20 drops China-sensitive plaudits on yuan reform
    India PM: rush to exit stimulus has recession risk
    Taiwan May Leading Index Rises To 110.5 From 110.1 In April
    BIS-Taiwan dollar not affected by yuan reform (Reuters)
    Chinese c.bank sets yuan mid-point at 6.7890 (Reuters)
    South Korea c.bank sells 1-yr MSBs at 3.15 pct (Reuters)
    Singapore Govt prices 2 year bond (Reuters)
    Russia M2 on June 1 2.3 pct m/m, 30.7 pct y/y (Reuters)

    Europe
    Deutsche CEO says "regulatory arbitrage" a worry (Reuters)
    Overnight deposits at ECB rise (Reuters)
    Euro zone M3 falls, private loans rise (Reuters)
    Greece to issue T-bills mid-July - deputy FinMin (Reuters)
    Italy's 7 billion euro debt sale modestly received (Reuters)
    Bank deposits increase in Greece, other peripherals (Reuters)
    ECB Funding
    o Nearly 600bln in ECB transactions this week
    o Market participants worried; Eurozone banks hoarding cash and increasing o/n operations with various ECB
    facilities

    US Pre Open
    Economic News

    Obama: Countries Shouldn't Rely On Exports To US For Growth, Countries Can't Run To Stimulus Exits All At Same Time
    (DJ)
    All eyes on US Jobs number this Friday for signs of recovery or double dip

    Equities

    RDS: Shell CEO says to continue deep-water drilling (Reuters)

    See Important Disclosures on page 4


    BP: Weekend chatter indicating higher open as co says no plans to replace CEO Hayward
    BP: UPDATE: Russian Official says BP Hayward is set to resign (Reuters, 7:30AM ET)

    Interesting Morning Reading

    The Third Depression – Paul Krugman, NYT:


    http://www.nytimes.com/2010/06/28/opinion/28krugman.html?src=twt&twt=NytimesKrugman
    G20 Officially Reveals Its Total Pointlessness – Joe Weisenthal, TBI: http://www.businessinsider.com/g20-officially-
    reveals-its-total-pointlessness-2010-6
    SEC Loss Shows Difficulty of Insider-Trading Cases – WSJ:
    http://online.wsj.com/article/SB10001424052748704846004575333144054961702.html?mod=googlenews_wsj

    Notable Bond Market/Economic Events


    Bond Auctions (1PM ET)
    o 13, 26 week bills
    Upcoming Bond Auctions (This Week)
    o 6/29: 1Y bill, 4wk bill
    Economic Releases For Today
    o 8:30AM
     Core PCE, cons. 0.1pct
     Personal Spending, cons. 0.1pct
     Personal Income, cons. 0.5pct
    o 7:30PM
     Japan Household Spending
     Japan Unemployment Rate, cons. 5pct

    See Important Disclosures on page 4


    Market Summary – 7AM

    Futures Currencies Fixed Income

    Symbol Last Chg Symbol Last Chg Symbol Last Symbol Last
    DOW 10130 26 EURUSD 1.2345 -0.0032 2s5s 124.00 US2Y .65
    SP500 1078.75 4 GBPUSD 1.5063 0.0003 2s10s 244.00 US5Y 1.89
    NSDQ 1847 7.75 EURJPY 110.25 -0.2 2s30s 341.00 US7Y 2.56
    ZB 125'18 +0'07 USDCAD 1.035 -0.0003 5s10s 120.00 US10Y 3.09
    ZN 121'195 +0'040 USDJPY 89.31 0.07 5s30s 217.00 US30Y 4.06
    ZF 117'307 +0'030 NZDUSD 0.7097 -0.0046 10s30s 97.00 UK5Y 2.11
    ZT 109'107 +0'005 UK10Y 3.40
    CLN0 78.35 -0.51 UK30Y 4.25

    Spreads Bps Spreads Bps


    UK25 135.00 USUK2 11.00
    UK210 264.00 USUK5 22.00
    UK230 349.00 USUK7 23.00
    UK510 129.00 USUK10 31.00
    UK530 214.00 USUK20 61.81
    UK1030 85.00 USUK30 19.00

    See Important Disclosures on page 4


    Morning Call – 6/28/2010
    Stone Street Advisors
    ChiBondKing – [email protected]

    Disclosure/Legal
    THE MATERIAL CONTAINED IN THIS DOCUMENT IS INFORMATIONAL ONLY , AND IS NOT INTENDED AS AN OFFER OR A SOLICITATION TO
    BUY OR SELL ANY SECURITIES . THE AUTHOR IS NOT ACTING AS AN ADVISOR OR FIDUCIARY IN ANY RESPECT IN CONNECTION WITH
    PROVIDING THIS INFORMATION AND NO INFORMATION OR MATERIAL CONTAINED WITHIN THIS DOCUMENT IS TO BE RELIED UPON FOR
    THE PURPOSE OF MAKING OR COMMUNICATING INVESTMENT OR OTHER DECISIONS NOR CONSTRUED AS EITHER PROJECTIONS OR
    PREDICTIONS . INVESTORS MUST MAKE THEIR OWN INDEPENDENT DECISIONS REGARDING ANY SECURITIES , FINANCIAL INSTRUMENTS
    OR STRATEGIES MENTIONED HEREIN . PLEASE CONTACT YOUR FINANCIAL ADVISOR TO DETERMINE THE SUITABILITY OF THE MATERIAL
    CONTAINED HEREIN TO YOUR INVESTMENT GOALS, OBJECTIVES AND RISK CRITERIA . T HE MATERIAL CONTAINED IN THIS DOCUMENT IS
    INTENDED FOR QUALIFIED INVESTORS ONLY . T HE PERSON OR PERSONS INVOLVED IN THE PREPARATION OR ISSUANCE OF THE
    INFORMATION CONTAINED IN THE MATERIAL WITHIN THIS DOCUMENT MAY DEAL AS PRINCIPAL IN ANY OF THE SECURITIES
    MENTIONED , AND MAY HAVE A LONG OR SHORT POSITION IN (INCLUDING POSSIBLY A POSITION THAT WAS ACCUMULATED ON THE
    BASIS OF THE MATERIAL PRIOR TO IT BEING DISSEMINATED AND / OR A POSITION INCONSISTENT WITH THE INFORMATION WITHIN THIS
    DOCUMENT ), A CCORDINGLY, INFORMATION INCLUDED IN OR EXCLUDED FROM THIS DOCUMENT IS NOT INDEPENDENT FROM THE
    PROPRIETARY INTERESTS OF THE AUTHOR, WHICH MAY CONFLICT WITH YOUR INTERESTS . CERTAIN TRANSACTIONS , INCLUDING THOSE
    INVOLVING FUTURES , OPTIONS , DERIVATIVES AND HIGH YIELD SECURITIES, GIVE RISE TO SUBSTANTIAL RISK AND ARE NOT SUITABLE
    FOR ALL INVESTORS . FOREIGN CURRENCY DENOMINATED SECURITIES ARE SUBJECT TO FLUCTUATIONS IN EXCHANGE RATES THAT
    COULD HAVE AN ADVERSE EFFECT ON THE VALUE OR PRICE OF OR INCOME DERIVED FROM ANY INVESTMENTS DISCUSSED HEREIN .
    UNLESS OTHERWISE SPECIFICALLY STATED , ALL STATEMENTS CONTAINED WITHIN THIS DOCUMENT (INCLUDING ANY VIEWS , OPINIONS
    OR FORECASTS ) ARE SOLELY THOSE OF THE INDIVIDUAL (S) MAKING THE STATEMENT , AS OF THE DATE INDICATED ONLY , AND ARE
    SUBJECT TO CHANGE WITHOUT NOTICE . CHANGES TO ASSUMPTIONS MADE IN THE PREPARATION OF SUCH MATERIALS MAY HAVE A
    MATERIAL IMPACT ON RETURNS . T HE AUTHOR OR AUTHORS DOES NOT UNDERTAKE A DUTY TO UPDATE THESE MATERIALS OR TO
    NOTIFY YOU WHEN OR WHETHER THE ANALYSIS HAS CHANGED . W HILE THE INFORMATION CONTAINED WITHIN THIS DOCUMENT IS
    BELIEVED TO BE RELIABLE , NO REPRESENTATION OR WARRANTY , WHETHER EXPRESS OR IMPLIED , IS MADE AND NO LIABILITY OR
    RESPONSIBILITY IS ACCEPTED BY THE AUTHOR OR AFFILIATED PARTIES AS TO THE ACCURACY OR COMPLETENESS THEREOF.

    You might also like