World stock markets news summary (US, UK, Europe, Asia) (April 27, 2010)
Date: 27 April 2010
Contributed by Paddy Power Trader
By Paddy Power Trader
UK News
Debt domino could topple recovery hope. (Times) Britain’s economic recovery could be threatened by the knock-on effect of businesses in financial distress being unable to pay their debts, a leading insolvency group will warn today. The number of businesses with “significant” or “critical” financial problems reached 161,601 in the first three months of the year, according to Begbies Traynor – up 14% on the fourth quarter of 2009. The amount owing to other companies is more than GBP 55bln.
Osborne: Hung house will paralyse the UK. (City A.M.) There is a “clear risk of economic paralysis, higher interest rates and a loss of market confidence” if the general election results in a hung parliament, George Osborne warned yesterday. The shadow chancellor said the Tories needed to win an overall majority so they could make “the right decisions to get the British economy moving again”.
US News
T-notes finished higher due to ongoing Greek concerns after Chancellor Merkel said Greece would receive aid if it met necessary conditions. Treasuries retreated from their best levels post auction results after weak demand sparked concerns regarding the upcoming coupon supply. At the close; t-notes finished up 3+ ticks at 116.18. T-notes ticked higher overnight after US Senate Republicans blocked Democrats’ plan to overhaul Wall Street and market participants in Asia reacted negatively to lack of progress on Greek debt crisis. At 0633 BST T-notes were trading up 4 ticks at 116.220.
Fed’s Hoenig said US needs to lead in financial reform, and 15:1 capital ratio is a good place to start, adding that banks should spin off derivatives desks. (RTRS)
Treasury’s Geithner says economic conditions still ‘very tough’ but seeing signs of sustained job creation. (RTRS)
The most sweeping overhaul of US banking rules since the Great Depression stumbled in the Senate on Monday as Republicans united to prevent action on the bill after Democrats, who control 59 votes in the Senate, came up short when conservative Democrat Ben Nelson joined Republicans to block the bill by a vote of 57 to 41. (RTRS) Following the vote, President Obama said he’s deeply disappointed that Republicans blocked finance debate, adding that Americans can’t afford watered-down finance plan. (Sources)
Chinese assistant minister of finance says wants to see US cut out stimulus programme. (Fox Business) The official said the US deficit is an issue for China and said he would like to see the US cut out its stimulus programme, which increased by 10%.
USD 11bln (Act) 5y TIPS Auction received a b/c 3.15 vs. Prev. 2.66 and Indirects were 23.1% vs. Prev. 26.66%. The auction drew a yield of 0.550% vs. Exp. 0.523%, of which a total of 30.93% of issuance was allotted at the high. (RTRS)
European News
ECB’s Trichet says present rates are appropriate, however says some central banks already must increase rates. (Sources/RTRS) Trichet says there should be no global policy on central bank actions and calls for caution in implementing bank taxes. Says loans to households are picking up ahead of corporate loans and says Eurozone banks must lend to reinforce recovery. Elsewhere, Trichet says he won’t comment on Greek aid negotiations and says is confident they will conclude soon ‘and rightly’.
ECB’s Weber says German recovery is expected to regain momentum in Q2. (RTRS/CNBC) Weber says Germany is relatively strong vs. other Eurozone states and denies export strength at others’ expense. Elsewhere, Weber says Greek aid program talks will be completed soon and that it was a totally unrealistic scenario that Greece would be expelled from Eurozone. Says Portugal and Spain’s fiscal situations are different from Greece.
Greece’s finance minister says Greece needs EUR 9bln by May 19, but rates are ‘prohibitive’. (Sources)
Pimco’s El-Erian says Greek problem may become ‘more general.’ (CNBC) El-Erian says it is not wise to invest in Greece without any progress, says action is needed on Greece in the next few days.
Asian News
BOJ sees CPI turning positive in fiscal 2011. (Nikkei) Says is poised to upgrade fiscal 2011 CPI forecast to 0-0.2% growth, from 0.2% fall and says GDP for the current fiscal year is likely to be upgraded to the upper 1% level.
China may use capital requirements for developers as a policy tool to cool the property market, Ba Shusong, deputy director general of the State Council’s Development Research Centre said. (Shanghai Securities News) He also said China will have to resume movement of its CNY exchange rate to manage a convergence of strong economic growth, exports and inflationary pressure in the second quarter. (RTRS)
Forex
China needs to raise the value of its currency by a significant amount or the US will take action, according to the House of Representative Ways and Means Committee chairman Sander Levin, who added that he thinks 2% to 3% rise over a year would be totally unsatisfactory. (RTRS)
ECB’s Weber says EUR not in danger of collapse. (CNBC) Weber says doesn’t see credibility issues with EUR and sees EUR as strong currency.
Australian PPI (Q1) Q/Q 1.0% vs. Exp. 0.6% (Prev. -0.4%); Y/Y -0.1% vs. Exp. -0.6% (Prev. -1.5%) (RTRS)
Brazilian finance minister says G20 needs better FX coordination or Brazil will take action to stop appreciation of BRL. (RTRS)
Date: 27 April 2010
Contributed by Paddy Power Trader
By Paddy Power Trader
UK News
Debt domino could topple recovery hope. (Times) Britain’s economic recovery could be threatened by the knock-on effect of businesses in financial distress being unable to pay their debts, a leading insolvency group will warn today. The number of businesses with “significant” or “critical” financial problems reached 161,601 in the first three months of the year, according to Begbies Traynor – up 14% on the fourth quarter of 2009. The amount owing to other companies is more than GBP 55bln.
Osborne: Hung house will paralyse the UK. (City A.M.) There is a “clear risk of economic paralysis, higher interest rates and a loss of market confidence” if the general election results in a hung parliament, George Osborne warned yesterday. The shadow chancellor said the Tories needed to win an overall majority so they could make “the right decisions to get the British economy moving again”.
US News
T-notes finished higher due to ongoing Greek concerns after Chancellor Merkel said Greece would receive aid if it met necessary conditions. Treasuries retreated from their best levels post auction results after weak demand sparked concerns regarding the upcoming coupon supply. At the close; t-notes finished up 3+ ticks at 116.18. T-notes ticked higher overnight after US Senate Republicans blocked Democrats’ plan to overhaul Wall Street and market participants in Asia reacted negatively to lack of progress on Greek debt crisis. At 0633 BST T-notes were trading up 4 ticks at 116.220.
Fed’s Hoenig said US needs to lead in financial reform, and 15:1 capital ratio is a good place to start, adding that banks should spin off derivatives desks. (RTRS)
Treasury’s Geithner says economic conditions still ‘very tough’ but seeing signs of sustained job creation. (RTRS)
The most sweeping overhaul of US banking rules since the Great Depression stumbled in the Senate on Monday as Republicans united to prevent action on the bill after Democrats, who control 59 votes in the Senate, came up short when conservative Democrat Ben Nelson joined Republicans to block the bill by a vote of 57 to 41. (RTRS) Following the vote, President Obama said he’s deeply disappointed that Republicans blocked finance debate, adding that Americans can’t afford watered-down finance plan. (Sources)
Chinese assistant minister of finance says wants to see US cut out stimulus programme. (Fox Business) The official said the US deficit is an issue for China and said he would like to see the US cut out its stimulus programme, which increased by 10%.
USD 11bln (Act) 5y TIPS Auction received a b/c 3.15 vs. Prev. 2.66 and Indirects were 23.1% vs. Prev. 26.66%. The auction drew a yield of 0.550% vs. Exp. 0.523%, of which a total of 30.93% of issuance was allotted at the high. (RTRS)
European News
ECB’s Trichet says present rates are appropriate, however says some central banks already must increase rates. (Sources/RTRS) Trichet says there should be no global policy on central bank actions and calls for caution in implementing bank taxes. Says loans to households are picking up ahead of corporate loans and says Eurozone banks must lend to reinforce recovery. Elsewhere, Trichet says he won’t comment on Greek aid negotiations and says is confident they will conclude soon ‘and rightly’.
ECB’s Weber says German recovery is expected to regain momentum in Q2. (RTRS/CNBC) Weber says Germany is relatively strong vs. other Eurozone states and denies export strength at others’ expense. Elsewhere, Weber says Greek aid program talks will be completed soon and that it was a totally unrealistic scenario that Greece would be expelled from Eurozone. Says Portugal and Spain’s fiscal situations are different from Greece.
Greece’s finance minister says Greece needs EUR 9bln by May 19, but rates are ‘prohibitive’. (Sources)
Pimco’s El-Erian says Greek problem may become ‘more general.’ (CNBC) El-Erian says it is not wise to invest in Greece without any progress, says action is needed on Greece in the next few days.
Asian News
BOJ sees CPI turning positive in fiscal 2011. (Nikkei) Says is poised to upgrade fiscal 2011 CPI forecast to 0-0.2% growth, from 0.2% fall and says GDP for the current fiscal year is likely to be upgraded to the upper 1% level.
China may use capital requirements for developers as a policy tool to cool the property market, Ba Shusong, deputy director general of the State Council’s Development Research Centre said. (Shanghai Securities News) He also said China will have to resume movement of its CNY exchange rate to manage a convergence of strong economic growth, exports and inflationary pressure in the second quarter. (RTRS)
Forex
China needs to raise the value of its currency by a significant amount or the US will take action, according to the House of Representative Ways and Means Committee chairman Sander Levin, who added that he thinks 2% to 3% rise over a year would be totally unsatisfactory. (RTRS)
ECB’s Weber says EUR not in danger of collapse. (CNBC) Weber says doesn’t see credibility issues with EUR and sees EUR as strong currency.
Australian PPI (Q1) Q/Q 1.0% vs. Exp. 0.6% (Prev. -0.4%); Y/Y -0.1% vs. Exp. -0.6% (Prev. -1.5%) (RTRS)
Brazilian finance minister says G20 needs better FX coordination or Brazil will take action to stop appreciation of BRL. (RTRS)