Week of April 29, 2012 thru May 5, 2012
--Meetings & Events of Interest to Subscribers
DATE GMT / EST EVENT
30-Apr 1700/1300 Treasury Department releases its borrowing requirements for the coming quarter prior to its quarterly refunding announcements of refunding auction plans on Wednesday.
30-Apr 2130/1730 Dallas Federal Reserve Bank Pres.
--Lending Starting to Expand, Still Tighter Than Needed in Housing
--US Economic Strength 'More Broad-Based,' Housing Remains Weak
WASHINGTON (MNI) - U.S. Treasury Secretary Tim Geithner said Friday the U.S. economy is healing and lending is starting to expand, but the housing sector remains weak and mortgage lending is "tighter than it needs to be."
Geithner cited potential risks from the crisis in Europe as well as high oil prices, in an interview with American Public Media's Marketplace, conducted in San Francisco Thursday, but broadcast Friday evening.
He said, "the economy's definitely getting stronger; it's healing still. We're repairing gradually, we're repairing the damage from the crisis.
NEW YORK, April 27 (MNI) - Despite angst about what the European Central Bank and U.S. non-farm payrolls data will offer next week, risk appetite increased Friday, with the S&P 500 closing above 1,400 for the first time since April 13.
MTD: 50,558 Year-Ago: 76,373 YTD: 455,259 Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 4/27 NOTE Yanzhou Coal Mining (Baa3/BBB-) DB/UBS Roadshow 5/2-5/3, US$ bond? 4/27 NOTE Iceland (Baa3/BBB-) DB/JPM/UBS Roadshow starts 4/30, US$ bond? 4/27 500 *Gazprombank (Baa3/BB+) 7 7.25% BNP/DB/GPB 4/26 300 *Banco Do Nordeste (Baa2/BBB) 7 T+317.8 BAML/HSBC/ITAU Chatter order book well-subscribed 4/26 500 *Braskem Finance Ltd (Baa3/BBB 10 T+346.7 BB/BTG/HSBC/ 144A Reg S w/o Reg Rights JPM 4/26 300 *Molson Coors Brewing Co (Baa2 5 T+125 DB/MS
WASHINGTON (MNI) - The following are top events and news reported Friday ET in the global financial system by MNI:
* One harsh reality which Federal Reserve policymakers face as they try to sustain a modest recovery and reduce unemployment is that the banking system, through which monetary policy works, is not playing its normal role of channeling easier credit to the economy. It is a problem of which Fed officials are abundantly aware. An assortment of officials of different stripes have complained in recent months that the "monetary transmission mechanism" is not working properly because credit is not flowing through regular channels.
(MNI) - One harsh reality which Federal Reserve policymakers face as they try to sustain a modest recovery and reduce unemployment is that the banking system, through which monetary policy works, is not playing its normal role of channeling easier credit to the economy.
It is a problem of which Fed officials are abundantly aware. An assortment of officials of different stripes have complained in recent months that the "monetary transmission mechanism" is not working properly because credit is not flowing through regular channels.
Columbia University Professor Charles Calomiris cited a number of ways in which government regulations are thwarting the Fed's effort to expand credit and stimulate economic growth in an interview.
As Bernanke noted in his Wednesday afternoon press conference, Dodd-Frank was designed to circumvent the "too-big-to-fail" problem by giving the Federal Deposit Insurance Corporation authority to do an "orderly liquidation" of a failing big bank. But there is widespread skepticism that it will work in practice.
"I'm concerned that we haven't solved that problem," Philadelphia Fed President Charles Plosser said last month. "In some sense we have made it worse because we have bigger banks."
More recently, Kansas City Fed President Esther George said "the most critical issue in addressing TBTF concerns is having policymakers with the resolve to follow through.
NEW YORK, April 27 (MNI) - The dollar suffered modest losses vs the euro and the yen Friday, the greenback undone by slightly weaker than expected U.S. first quarter growth data.
Euro-dollar was changing hands at $1.3258 in afternoon dealings Friday, the euro in the upper reaches of a slender $1.3220/70 U.S. hours range after beginning the day around $1.3235.
Dollar-yen meantime was changing hands at Y80.42 as it held the lower end of its Y80.38/75 U.S. hours range after beginning the day at Y80.73.
Afternoon dealings were slowing to a modest pace ahead of the weekend with the dollar confined to a narrow range during U.S. hours after seeing a much busier overnight session.
NEW YORK, April 27 (MNI) - The U.S. credit market improved Friday, amid a reemergence of positive sentiment following an overnight recovery from late Thursday's ratings actions against Spain's sovereign credit rating.
At the time of writing, the North American index for 5-year investment-grade credits, or IG.18, drifted tighter on the day by 2.50 bps at 93.25 bps.
That level marks an improvement of 9.0 bps from its intraday wides Monday of 102.25 bps, when political risks in France and the Netherlands, coupled with weaker-than-expected Eurozone and Chinese economic data, spurred a "risk-off" mood.