Chillin' out till it needs to be funded
Commodities continued their run down from last year’s “bubble” tops with silver and Copper losing a mile after the Chinese data. Things are complicated for europe even as Spanish banks have recovered most of the required EUR 30 bln internally and do not likely intend to be in line for a ECB bailout. However even as Hollande’s meeting with merkel affirmed nothing, flight of deposits from Greek banks and new elections in the state in one month mean that the outlook for the Euro is hard enough for the currency to trammel down from 1.28 to beyond 1.27 levels towards the afternoon.
The Euro can easily settle at its long term levels of 1.19 so it is unlikely to stick around in all this certainty while UK contraction was followed by the EA17(Euro countries’) not so happy GDP reports. However, Germany’s 0.5% growth performance redeemed the data for Eurozone nations as a group , letting the EU GDP grow while a larger contraction in Italy of 0.7% meant that a recession has set in.
JP Morgan’s investor meeting was a non-sequitor as only 250 shareholders turned up and Jamie Dimon’s $23 mln pay package got only 10-12% of the nay votes. A similar request for separating the offices of the Chairman and CEO received wider attention because of proxy firms but went down 40-60 in yesterday’s meeting Banks were able to pull back
Meanwhile after Moody’s downgrade of 26 Italian banks, European banks got together to discuss if they should withdraw information privileges provided as a matter of course to rating agencies and they be given a standard investor pack! That would set things right rolling in the right direction!
And of course, the day and the week could not be complete without Mitt Romney’s comments ont he campaign trail, reverting to his deeply felt conviction on free market Economics to explain no investors were hurt. This one even I could not believe so we know who is going to win the election.