Finance

January 12, 2010

Daily Financial continued…

The aussie was off the most – about 1/2 fig – as it is most impacted by Chinese demand for its resources.  Cad was little changed though.  The pound was supported by stronger retail sales, while the euro was off slightly.  Greece was in the news again, as an EC group visiting Greece said that its statistics were suspect and that the budget figures would have to be revised.  Also, an FT article opined that Greece will have to leave the EZ (Greece is only 3% in terms of production).  Greek bond spreads were out 12 b.p. vs. Germany.  Ireland was off 5 in sympathy, while Italy was out similarly on supply.  A Star newspaper article saying that the IMF and Turkey had agreed to a draft proposal for a loan might be a bit premature in terms of expected finalization, as there is still work to be done.  However, this is positive news. Still the lira is off after a sharp rally yesterday.  Bond yields have come in at least 10 b.p. most days this year and are approaching an 8% handle.

Asian econ news remains positive with Phillipine export up, India ind prod up solidly.

Australian investment lending for homes was higher, but home loans were lower as a tax credit expired.

NZ businesses meanwhile are more optimistic.

The exception is Japan with bank lending off for the first time in four years.

US data showed increasing imports, although oil played a decent part, and exports up as well.

Canadian housing prices were off.

The Obama proposal to tax financial institutions is not helping market sentiment, as the lessons from the past (see Jimmy Carter, G. Bush Sr.) have not been learned.