Hedge funds raised their bullish commodity bets as mounting speculation that central banks will announce more economic stimulus halted a slide in prices and drove gold to its longest rally since August. Money managers raised combined net-long positions across 18 U.S. futures and options by 9.1 percent to 587,327 contracts in the week ended June 12, rebounding from the lowest level this year, Commodity Futures Trading Commission data show. Gold holdings rose to a six-week high, while wagers on a rally in silver prices jumped to the highest since the start of May.
Sunday, June 17, 2012
Hedge Funds Boost Bullish Bets as Stimulus Pressure Rises
Hedge funds raised their bullish commodity bets as mounting speculation that central banks will announce more economic stimulus halted a slide in prices and drove gold to its longest rally since August. Money managers raised combined net-long positions across 18 U.S. futures and options by 9.1 percent to 587,327 contracts in the week ended June 12, rebounding from the lowest level this year, Commodity Futures Trading Commission data show. Gold holdings rose to a six-week high, while wagers on a rally in silver prices jumped to the highest since the start of May.
EURO GOVT-German bonds tumble as Greek election sparks relief
(Reuters) - German bond prices fell at Monday's open as an election victory for Greece's pro-bailout New Democracy party staved off fears of an imminent Greek exit from the euro zone, but few saw relief lasting over the long term.
Dollar Shortage Seen in $2 Trillion Gap Says Morgan Stanley
Central banks rebuilding foreign- exchange reserves at the fastest pace since 2004 are crowding out private investors seeking U.S. dollars, boosting demand even as the Federal Reserve considers printing more currency. After falling to an all-time low of 60.5 percent in the second quarter of last year, the dollar’s share of global reserves rose 1.6 percentage points to 62.1 percent in December, the latest International Monetary Fund figures show. The buying has left the private sector with $2 trillion less than it needs, according to investment-flow data by Morgan Stanley, which sees the dollar gaining 8.2 percent in 2012, the most in seven years.
Europe Fiscal Union May Be 'Years Away'
Europe Fiscal Union May Be 'Years Away': Video - Bloomberg
June 18 (Bloomberg) -- Richard Jerram, chief economist at Bank of Singapore Ltd., talks about Europe's sovereign debt crisis and the implications of for the global economy and financial markets. He also discusses Federal Reserve monetary policy. He speaks with Zeb Eckert on Bloomberg Television's "First Up." (Source: Bloomberg)
June 18 (Bloomberg) -- Richard Jerram, chief economist at Bank of Singapore Ltd., talks about Europe's sovereign debt crisis and the implications of for the global economy and financial markets. He also discusses Federal Reserve monetary policy. He speaks with Zeb Eckert on Bloomberg Television's "First Up." (Source: Bloomberg)
Vote Shows Greeks Not Afraid to Exit Euro
June 18 (Bloomberg) -- Mikio Kumada, global strategist at LGT Capital Management, talks about yesterday's Greek election, its impact on global financial markets, and the outlook for the nation's membership in the euro zone. He speaks from Singapore with Zeb Eckert on Bloomberg Television's "First Up." (Source: Bloomberg)
Euro Chiefs Signal Greek Austerity Softening as Summit Looms
European governments signaled a willingness to relent on Greece’s austerity measures as leaders turn from an election victory by Greek bailout proponents to focus on safeguarding the other 98 percent of the euro economy. Greece’s new government must emerge “swiftly” from yesterday’s contest, which showed pro-bailout New Democracy in a position to form a coalition, euro finance chiefs said in a statement. German Foreign Minister Guido Westerwelle said negotiators could consider giving Greece more time to fix its finances, telling ZDF television that the political gridlock over the past six weeks “has done damage.”
Biggest Bond Traders See Worst Over for Treasuries
As the U.S. recovery slows and Federal Reserve efforts to boost growth expire, there’s no consensus among the biggest bond dealers that the central bank will begin a fourth round of economic stimulus with consumer and corporate borrowing costs already at record lows. Signs of faltering growth amid European debt turmoil, combined with inflation below the central bank’s 2 percent target, mean the Fed will announce new steps to boost the economy as soon as a meeting this week, according to 11 of the 21 primary dealers who trade with the central bank. The 10 who don’t expect action say that yields at all-time lows limit the effectiveness of more measures by policy makers.
JPMorgan's Jamie Dimon's risky business
JPMorgan Chase Chief Executive Officer Jamie Dimon enjoys a reputation as a risk-averse manager who conducts exhaustive reviews of operations in every corner of the bank. Not always, it turns out. Long before traders there racked up at least $2 billion in losses, executives at JPMorgan voiced concern over activities of the bank's chief investment office (CIO). Dimon repeatedly declined to subject the office to additional scrutiny and control.
Dimon Says ‘No Hiding’ in Return of MF Global Funds
JPMorgan Chase & Co. (JPM), the biggest U.S. lender, held $168 million in collateral for seven months before returning it to MF Global Inc. because the bank needed court guidance, Chief Executive Officer Jamie Dimon said. Dimon, 56, appearing today before the Senate Banking Committee, was asked about the New York-based bank’s dealings with parent MF Global Holdings Ltd. (MFGLQ), the firm led by former New Jersey Governor Jon S. Corzine before it filed for bankruptcy on Oct. 31. The money represents proceeds of excess collateral that JPMorgan held at the start of the liquidation, MF Global Inc. trustee James Giddens said in a May 18 statement.
Chilton wants CFTC's own attorney on MF Global
(Reuters) - A U.S. futures regulator said he was keen to see his agency hire its own attorney in Britain to help recover customer funds lost during MF Global's chaotic final days.
New for Traders: Week ending June 15
- Hong Kong Exchanges & Clearing Ltd., host to the world’s fifth-largest equity market, agreed to pay 1.39 billion pounds ($2.15 billion) for the London Metal Exchange, which handles more than 80 percent of global trade in industrial-metal futures.
- The Dubai Gold and Commodities Exchange (DGCX) announced an extension of its trading hours. From June 4, 2012, the Exchange will open from 07:00 (UAE time), 1 hour and 30 minutes earlier than its previous opening time. The extended trading time will provide DGCX participants with a 30 minute window before the exchange traded currency derivatives markets open in India.
MF Global debacle grows more outrageous
We have pointed out on several occasions how the original sin in the MF Global debacle is how the firm was allowed to be split — the futures commission merchant/broker dealer (FCM/BD) MF Global Inc. (MFGI) into a SIPC liquidation and the parent MF Global Holdings Ltd. (MFGH) into a Chapter 11 proceeding — with a shortfall in customer segregated accounts. It has been pointed out that this was aided by an attorney for MFGH telling a whopper to Bankruptcy Judge Martin Glenn at the initial hearing on Nov. 1. Attorney Kenneth Ziman of Skadden Arps when asked about press reports of a shortfall told the judge, “I think, to the best knowledge of management, there are no shortfalls, Your Honor. All funds are accounted for, and I’m talking about the broker-dealer. That’s to the best knowledge. All funds can be accounted for.”
Euro climbs on projections Greek pro-bailout parties take majority
June 18 (Bloomberg) -- The euro strengthened as official projections showed Greece’s two largest pro-bailout parties winning enough seats to forge a parliamentary majority, easing concern the country would be forced from the currency bloc. The 17-nation euro extended last week’s 1 percent jump versus the dollar after New Democracy won 30 percent of the vote and got 130 seats in the 300-seat legislature, according to projections from the Interior Ministry based on partially counted returns. Socialist Pasok, with 12.5 percent, gained 33 seats. That would give the parties a majority in parliament if they choose to form a coalition. Anti-bailout party Syriza received 26.6 percent and 71 seats, the results showed.
TREASURIES-U.S. bonds slip after Greek pro-bailout victory
(Reuters) - Benchmark U.S. Treasury bonds dropped in Asia on Monday after pro-bailout parties won Greek elections, a step seen as key in holding the euro zone together, with investor attention now turning to whether the United States will opt for more easing this week.
EU Leaders Face Four-Week Battle to Underpin Euro: Timeline
Following is a list of key events facing European leaders in the aftermath of the Greek election.
June 18 -Greek leaders start efforts to put together a coalition.
June 18-19 -G-20 summit in Mexico.
June 19 -Spain sells 12-month and 18-month bills. -Greece sells EU1 billion in 91-day bills.
June 20 -Germany sells additional EU5 billion in two-year notes.
June 21-22 -Euro region and European Union finance ministers meet.
June 21 -ECB Council meeting (officially a non-policy meeting). -Merkel and German opposition discuss European fiscal pact. -Spain sells bonds.
June 22 -Merkel, Hollande, Monti, Rajoy meet in Rome. -Germany plays Greece in the quarter finals of the soccer European Championships.
June 26 -Spain to sell 3-month and 6-month bills. -Italy to sell bonds.
June 28-29 -EU summit. Leaders will discuss a blueprint for deeper euro integration authored by Draghi, Barroso, Rompuy, Juncker.
June 28 -Italy to sell bonds.
June 29 -Germany’s lower house likely to ratify ESM and fiscal pact.
July 5 -ECB council meeting (policy meeting).
July 15 -Greece will run out of money by mid-July, Greece’s Syriza party said on June 13.
Corn, Soybeans May Open Higher After Greek Vote; Wheat Steady
Corn futures may open 3 cents to 5 cents a bushel higher on the CBOT after prices had the biggest weekly loss since September on June 15 and early indications of polling in Greece showed the two largest pro-bailout parties winning enough seats to forge a parliamentary majority, according to Paul Deane, an analyst at Australia & New Zealand Banking Group Ltd. (ANZ)
Greek Elections 2012: Euro Reaches One-Month High After Vote
SYDNEY, June 18 (Reuters) - The euro hit a one-month high against the U.S. dollar on Monday after Greek election projections showed parties committed to staying in the single currency were on course to secure a slim parliamentary majority.
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