The MorningSnapshot- 10/30

The MorningSnapshot
October 30, 2012

I have finally gotten everything sorted out with Bloomberg, as such, TheMorningSnapshot is returning. Thank you for your patience

Today’s Economic Data Lineup (EST)
Juncker Calls Extra Finance Chief Talks as Greece Showdown Looms
Spain Sets Prices, Seeks Investors for $77 Billion Bad Bank
Rescue Fund Risks $103 Billion Covert Bond-Buy Warp: Euro Credit
Stock, Bond Trading Shut a Second Day as Sandy Batters New York
Hurricane’s Toll Poised to Top $20 Billion With Damage to Cities


North America
U.S. equity trading will be halted again today, joining bond markets, for the first time in more than a century as Hurricane Sandy swept across NYC, bringing with it 90-mile-per-hour winds and surging seas. The last time stock trading was interrupted for consecutive days due to weather was 1888.


  • Hurricane Sandy slammed into New Jersey claiming at least 13 lives, leaving much of lower Manhattan in the dark; six million residents on the east coast are said to be without power. The 900 mile wide storm’s economic toll is poised to exceed $20B, including insured losses of $7-$8B.
  • New York City Mayor Bloomberg says flooding underground stands to be a big problem and public transportation in the area will be closed until further notice; the subway system may not be open for five days as workers pump water out of underground tunnels.
  • Residential real estate prices increased in the year ended August by the most in two years, a sign a recovery in housing will continue to boost U.S. economic growth. The S&P/Case-Shiller Index rose +2% from August 2011, the biggest YoY gain since July 2010, after climbing +1.2% in the prior month; the median forecast was for a +1.9% gain.
  • The U.S. slid from the top ten list of most prosperous nations for the first time in a league table that ranked Norway, Denmark, and Sweden in the top slots. The U.S. fell to 12th position from 10th in the Legatum Institute’s annual prosperity index amid concerns about the health of its economy and ability of its politicians.


Unemployment in Germany rose twice as much as forecast by economists in October and the jobless rate increased for the first time in three years as the debt crisis dampens economic growth and investment. The number of people out of work rose a seasonally adjusted 20K from Sept. to 2.94M, doubling economist expectations for a rise of 10K. The jobless rate rose from a two-decade low of 6.8% in August to a revised 6.9% in September and held there in October, according to the Federal Labor Agency.


  • Jean-Claude Junker says ministers from the euro-region will likely hold a “physical meeting” on Nov. 8 and is set to take place between a Greece-related conference call set for today and a regularly scheduled meeting Nov. 12 in Brussels. The meetings highlight policy makers’ struggle to find a solution for an ailing Greece, which remains at the center of Europe’s festering debt crisis.


Industrial output in Japan fell the most since last year’s earthquake and tsunami, with output declining -4.1% in Sept. from the prior month, when it dropped -1.6%; the median forecast of 29 economists called for a drop of -3.1%.


  • Japan’s jobless rate remained unchanged at 4.2% in Sept., matching the forecast of 29 economists surveyed by Bloomberg News.
  • Sales of newly built homes in Australia dropped for a third straight month, falling by -3.7% from August when they dropped -5.3%.


“One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.”
-William Feather

Taylor Anderson
Chief Strategist

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