EurAnalysis

opps.. sorry about that. i will keep that in mind. my apologies

Friday, August 31, 2012 7:51:13 AM



Top Stories

Bundesbank chief considered quitting. Bundesbank President Jens Weidmann recently discussed with other senior officials at the bank the possibility of resigning, due to his opposition to Mario Draghi's plans for the ECB to resume the buying of eurozone government debt, Germany's Bild reports. However, unlike his predecessor Axel Weber, Weidmann has stayed so that he can fight the program from within.


Bernanke unlikely to flick the printing press switch. In case you forgot, Ben Bernanke is due to make his long-awaited speech at Jackson Hole today, when he'll probably reiterate what we already know - that the Fed's considering more easing - but not announce more money printing. Charles Plosser, the hawkish head of the Philly Fed, yesterday told CNBC that there's no point to another round of QE, partly because it risks future inflation.

Japan's economic picture gets gloomier. Japan's industrial production fell 1.2% on month in July, sharply worse than consensus for growth of 1.7% and the 0.4% increase in June. CPI excluding food fell 0.3% on year, prompting fears that Japan is a long way from escaping deflation. The figures add to slowing retail sales and exports, and the government downgrading its economic forecast. Still, at least unemployment was unchanged at 4.3%.

Top Stock News

New Barclays chief cuts ROE targets. New Barclays (BCS) CEO Antony Jenkins has told the FT that he's cutting the bank's return-on-equity goal to 11%-11.5% from the 13%-15% targeted by predecessor Bob Diamond. Jenkins' top priority is to restore Barclays' battered reputation, and he'll unveil a "transformational plan" in Q1 next year, although it will take 3-5 years to implement. Jenkins is also committed to Barclays remaining a "universal bank."

Investors like SAIC's separation plan. SAIC (SAI) intends to separate into two independent, publicly traded companies, with one focused on government technical services and enterprise IT, and the other on science and technology services. The split will allow the entities to bid for more contracts, which they can't do now because of conflicts of interest. Shares surged 14.3% premarket.

Sharp delays production of iPhone screens. Sharp hasn't yet started the mass production of screens for Apple's (AAPL) next iPhone, the WSJ reports. Sharp had hoped to have begun deliveries by now and it is unclear when it will be able to start, although the iPhone's two other screen suppliers, LG Display and Japan Display, have commenced shipments. Still, the delay at Sharp raises doubts about whether Apple will be able to meet demand.

Your daily Zynga executive defection report. Studios VP Bill Mooney and marketing VP Brian Birtwistle have left Zynga (ZNGA), Bloomberg reports. Zynga has also lost its COO, chief creative officer, and a few other important figures over the last month, as a crashing stock price triggers an exodus from a company whose business culture has been frequently criticized.

Microsoft dominates Berlin tech fest. The IFA international conference for consumer electronics and home appliances has officially started in Berlin today, although the unveiling of some major products already took place earlier in the week. There's been a deluge of Windows 8/RT (MSFT) tablets, including from Dell (DELL) and H-P (HPQ), not to mention Samsung (SSNLF.PK) beating Nokia (NOK) to the punch with a Windows 8 smartphone. In short, Microsoft is dominating without exhibiting.

Energy firms escape major damage from Isaac. Energy markets aren't expecting "lasting disruptions" from Hurricane Isaac, Tudor Pickering analysts have said, but they are "looking for confirmation of this" from oil and gas companies. Phillips 66 (PSX) found some flooding at its refinery in Belle Chasse but the markets are mostly reassured: Valero (VLO) and Anadarko (APC) are among firms reporting no damage to their facilities.

Top Economic & Other News

Eurozone inflation rises. Eurozone August CPI rose to +2.6% on year from +2.4% in July and topped consensus of +2.5%. The increase takes inflation further away from the ECB's target of just below 2%, and may reduce the chances of the bank cutting rates at a policy meeting next week. The prospect of rising inflation is also cited as a reason for the ECB not to buy eurozone government bonds. Meanwhile, unemployment remained at a record high of 11.3% in July.

Merkel wants Spain, Italy to delay bailout requests. Angela Merkel has asked Italian PM Mario Monti to postpone making a request for any bailout and will ask Spanish leader Mariano Rajoy to do the same, El Mundo reports. The speculation raises the question as to whether Monti was planning to ask for a bailout. For her part, Merkel hopes to resolve the crisis at the Bundesbank, especially with Jens Weidmann's thoughts of quitting.

Editors' Picks

The ECB, A Red Herring Justification



Today's Markets:

In Asia, Japan -1.6%. Hong Kong -0.4%. China -0.3%. India -0.9%.
In Europe, at midday, London +0.6%. Paris +1.4%. Frankfurt +1.3%.
Futures at 7:00: Dow +0.6%. S&P +0.6%. Nasdaq +0.7%. Crude +0.7% to $95.31. Gold +0.3% to $1661.40.

Today's economic calendar:

9:45 Chicago PMI
9:55 Reuters/UofM Consumer Sentiment
10:00 Factory Orders
10:00 Bernanke: ‘Monetary Policy Since the Crisis’

LOL.. I'm not suggesting it's going to become rational. I'm only hoping it will

No worries. I figured that maybe it was your kinkiness

Previous monthly high was 1.2668.

Hi PipTrapper Bro,

Interested with your USDX Indie

It would be more Complete if wear USDX Candle indie.
I use a Little Trick, it will be like in the image below...

1.2661 is the 50% FIB line from the May-July high/low.

Man you just got to love these 'quiet' August summer months. +600 pips from low.

What the heck... I put my scalp long trade in yesterday at 500 and SL of 25 and come back in and WHAT THE HECK. I am happy but seriously. If shorting was ever...it is now IMO. BUT I will watch PA. :-P

haha.. not me!

gopher pips is the one walking around in his leather suit

USDX about to fail 81.000, now at 81.090. Can you hear Maxwell on the short side of USDX?

I think the BB are pushing to the high target before the meeting so it can drop even farther IMO.

i am putting in smal sells every 20 pips up to 1.2660 why well i think this is just a game to take out sell stops, and Mr ben has not spken yet as far as i know.

Mercy just walked in.... Looks like I'm on the side lines till next week...

With markets going crazy like this, there is no justification for Bennie to announce any easing! That should be written in stone. 4Hr chart shows definite bearish divergence.

Risk reward and right now the more it goes higher the greater the risk. SCaling in or range trading SHORT for me today after this morning every 50 pips higher. just now out at 623 from yesterday.

This was the worst statement given on 30 aug and got hit . next would be a minor rr at 1.2626 followed by 1.2668 ( major ) .tricky moves i would like to say .

IMO, this has to be coordinated. Just so MUCH unusually high verbal diarrhea coming from European leaders today just before Bernanke speaks. This tells me it will be short lived and they are trying to control the slide down. Maybe I'm just losing it.

Yep, I think as well.

T

Most big money are sitting on sidelines letting d#mb retail traders drive the market up where they(big money) will be waiting to short, IMO. Volume is very low as being reported so these moves are very exaggerated.