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IDS World Markets Tues 18th September 07


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t?s=%5EAORD

 

 

Serious selling happening today so I guess the Oz punters aren't expecting any pre-Fed bounce. All Ords -1.6% with Financials getting a pounding, -2.5% and IT next in line, -2.4% followed by Property Trusts -1.8%. Healthcare is down the least, -0.6%.

 

BHP and RIO are sitting it out, both -0.6%. The golds are looking sparky: Newcrest +3.1% and Newmont +1.5%.

 

Oils are down in spite of the record high oil price: Woodside -0.9%, Santos -0.4% and Caltex -2%.

 

Over in Asia, Nikkers heavily down, -1.8%, Sth Korea -0.9% and Singers -0.3%.

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w?s=%5EAORD

 

 

We finished off the lows but not really on support so there's still room for another small slide. All Ords closed -1.2% and was in a snarly mood all day. IT took over the downside lead, -2.6% followed by Property Trusts, -2.1%. Healthcare had the least loss, -0.1%.

 

The big miners barely moved: BHP -0.4% and RIO -0.7%. Golds rose a little more, Newcrest +4.5% and Newmont +2%.

 

In the oils, Woodside closed -1.2%, Santos +0.2% and Caltex -0.6%.

 

Over in Asia, Nikkers dropped 2%, Sth Korea -1.8% and even China is down -0.7%.

 

 

Over to UK/Europe:

 

t?s=%5EFTSE

 

t?s=^GDAXI

 

t?s=^FCHI

 

http://finance.yahoo.com/intlindices?e=europe

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Let' see what happens this time.....

 

fomc_rate_092001.gif

www.cnnfn.com

 

Charts below roughly straddle each 2001 CUT.....

 

I didn't post Sept 2001 for obvious reasons.....RIP? :(

 

***************

 

Crazy ate - wow - nice presentation. While rates came down, it looks like the market was basically unchanged from point (a) to point (z), but with a lot of wild movements in between? :blink: :huh:

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ECB net drain of €114 Billion in 7 Day Money.

 

That kinda action makes Obi-Ben's "Do I do 25 or do I do the 50?" decision look like he's fretting over Toy/Monopoly Money; not like he's the most powerful person on the planet.

 

 

 

http://www.ecb.int/mopo/implement/omo/html/index.en.html

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ECB net drain of ?114 Billion in 7 Day Money.

 

That kinda action makes Obi-Ben's "Do I do 25 or do I do the 50?" decision look like he's fretting over Toy/Monopoly Money; not like he's the most powerful person on the planet.

 

 

 

http://www.ecb.int/mopo/implement/omo/html/index.en.html

608377[/snapback]

 

 

How did you arrive at the net figure. Can you give us the data on what was expiring, and where that data can be found? I want to have a little chat with a couple of mainstream journalists and want to be sure I have my facts straight.

 

Tanks.

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ECB is good at disappearing the fingerprints. "Old" Open Market Operations info goes away each week on their website as new Open Market Operations are published. Summaries are only available in the aggregate months later. All that nelps add to the confusion about what they are really doing.......

 

 

 

On 12 September ECB provided 269 Billion in 7 Day money. (Don't read the screwed up headlines in the link below-read the text-On Monday, the bank provided 269 billion euros at its weekly auction, 13 billion more than was being withdrawn from the previous week's operation. That's the residual from the 360 billion provided back in August as an extrodinary measure as a result of the sub-prime thingy.)

 

http://www.earthtimes.org/articles/show/106290.html

 

 

 

On 19 September it provided 155 Billion in 7 Day money, against the 269 coming due.

 

http://www.ecb.int/mopo/implement/omo/html/index.en.html

 

 

114 Billion net drain in 7 Day money.

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Ok, who's in trouble this time?

 

Bank of England Makes Emergency Loans to U.K. Banks

 

Sept. 18 (Bloomberg) -- The Bank of England made emergency loans to U.K. banks to bolster the financial system, saying it received ``intelligence'' that demand for money may prolong a surge in overnight borrowing costs.

 

The central bank said it loaned 4.4 billion pounds ($8.8 billion) of ``exceptional'' funds at its benchmark interest rate of 5.75 percent today in London, and will offer the same amount on Sept. 20 in seven-day debt. The overnight rate banks charge to lend in pounds soared 60 basis points to 6.47 percent yesterday, the most since June.

 

``Secured overnight money market rates have again been unusually high,'' relative to the benchmark rate, the bank's statement said. ``This, together with intelligence from counterparties, suggests that there may have been a further rise in the demand for reserves.''

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U.K. Inflation Rate Falls to Lowest Since March 2006

 

Sept. 18 (Bloomberg) -- The U.K.'s inflation rate unexpectedly fell last month to the lowest level since March 2006, giving the Bank of England scope to reduce interest rates in response to any worsening of the credit-market rout.

 

Consumer prices rose 1.8 percent from a year earlier compared with 1.9 percent in July, the Office for National Statistics said today in London. Economists expected the rate to be unchanged, according to the median of 35 forecasts in a Bloomberg News survey. Inflation has slowed from a decade-high of 3.1 percent in March. Prices rose 0.4 percent compared with July.

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Commerzbank Says Subprime Loss Will Be EU80 Million

 

Sept. 18 (Bloomberg) -- Commerzbank AG, Germany's second- biggest lender by assets, forecast losses related to U.S. subprime mortgages of 80 million euros ($111 million) this year, refuting a report by Reuters.

 

The Frankfurt-based bank said it has no revisions to past comments about its investments in subprime mortgages, which total 1.2 billion euros, spokesman Stefan Roberg said in an interview today. Reuters reported today that Commerzbank's losses will exceed 80 million euros, citing unidentified people at the company. Roberg declined to comment on the report.

 

---------------

 

German Investor Confidence Fell to a Nine-Month Low

 

Sept. 18 (Bloomberg) -- German investor confidence fell more than economists forecast in September after rising defaults on U.S. subprime mortgages pushed up the cost of credit.

 

The ZEW Center for European Economic Research in Mannheim today said its index of investor and anal cyst expectations dropped to minus 18.1, the lowest since December, from minus 6.9 in August.

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ECB net drain of ?114 Billion in 7 Day Money.

 

That kinda action makes Obi-Ben's "Do I do 25 or do I do the 50?" decision look like he's fretting over Toy/Monopoly Money; not like he's the most powerful person on the planet.

 

 

 

http://www.ecb.int/mopo/implement/omo/html/index.en.html

608377[/snapback]

 

 

How did you arrive at the net figure. Can you give us the data on what was expiring, and where that data can be found? I want to have a little chat with a couple of mainstream journalists and want to be sure I have my facts straight.

 

Tanks.

608378[/snapback]

 

 

OK, I got the data on the changes in the ECB asset base and they indicate that the base is DOWN $5 billion since the crisis broke at the end of July. The ECB, like the Fed has made no net addition to liquidity as the crisis mounted.

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Interest rates to rise: Reserve Bank

 

AUSTRALIAN borrowers will be hit with higher interest rates in coming months, with problems in global financial markets expected to persist, the head of the central bank says.

 

Reserve Bank of Australia (RBA) governor Glenn Stevens said today the global credit crunch was driving funding costs higher and that the "good times" of cheap credit was being tested.

 

That had pushed up interest rates in money markets, which would flow through to consumers.

 

Fixed interest rates on home loans, for example, are rising as they are priced off market interest rates.

 

The RBA raised interest rates by 25 basis points to 6.50 per cent in August. It was the first rate increase for 2007 and followed three interest rate rises in 2006.

 

"Some borrowers are being asked to recognise this higher cost in the rates they pay for their loans, a trend that will continue if the higher funding costs persist.

 

"Hence it appears, at this stage at least, that we may well observe a further tightening of financial conditions in the Australian economy in the months ahead."

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