The Banking and Strategy Initiative

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US Morning Report: FOMC starts tomorrow, ECB will be buying bonds, Japan is ready to join the good guys

English: EPP Congress Bonn: Podium discussion ...

English: EPP Congress Bonn: Podium discussion with (left to right) Rodrigo Rato, Category: Rodrigo Rato Paul Volcker, Category: Paul Volcker Peter Jungen, Category: Peter Jungen Mario Draghi Category: Mario Draghi and Jyrki Katainen Category:Jyrki Katainen in 2009 for Janez Janša and Emanuela Farris in the background, intro by Wilfried Martens. (Photo credit: Wikipedia)

The honest to god assessment of Geithener’s meeting with Draghi and German Finance minister Schauble today or the ECB meeting on Wednesday is that US and Europe in a Coordinated Central Bank effort willl affirm to more Central Bank Liquidity Swaps and the three fold action from ECB could include a threat to banks that unlesss they take their deposits from the Central Bank, they could face negative deposit rates on the same.

The third trick up Mario Draghi’s sleeve and which would trump Bernanke’s forced non event an hour later the same day, would be to reintroduce ammunition of as low as EUR25 BLn for the Stability program called the Securities Market Programme.

If you really think that means more positive things for the Euro, invest on, but I think Wednesday is a day of multiple disappointments with just Tuesday left for market to avoid its own cliff with the Dow straddling 13000 again and NASDAQ trading below 3000 with both Apple and Facebook hitting low chords with their results

Meanwhile a great video short on Reuters Insider is Mythbusting Japan, as the country stands on a great Retail recovery in Q@ and even the remaining 40% of its Economy, that is run by Exports getting rosier with manufacturing rising in tandem with new local currency partner China.

One guesses if the US wants to be a recovery partner with Japan it ill hagve to rely on more Japoanese car imports from August to December as it struggles with the low notes in an election year but Romney having turned Ambassador , has an easy string of decisions to make about who to shoo in and how to get Congressional deecisions. made. Before that happens e might have up to 100000 Job cuts at the US DOD this year bringing 80000 of those axes as coompulsory job cuts kick in. The Job cuts will be Civilian jobs

Japan will also be reporting better earnings growth in Q2.

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