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US Consumer Credit: Headline strengthens, details more mixed

US Consumer Credit increased USD 7.386 bln, exceeding expectations of a USD 5,150 bln rise over the month of September. Though the prior month's USD 9.682 bln fall was revised down a bit, but the fact that this month's number is back in positive territory is "a good thing" (as convicted felon Martha Stewart would say).

However,

PAPANDREOU SAYS REFERENDUM POSSIBLY ON DEC. 4 -Wire

The date appears set. Note: IMM Dec Options Expiry on EUR Futures is Dec 9. So, just in time...

Canada GDP in Aug: 0.3% m/m (prior rev to 0.4% from 0.3%) ; 2.4% y/y (prior rev to 2.4% from 2.3%)

Hawkish Trichet: Draghi over-interpreted on bond buys, says Trichet

RTRS: Draghi over-interpreted on bond buys, says Trichet

FRANKFURT: Sun Oct 30, 2011

Reuters - Markets have over-interpreted comments by incoming European Central Bank chief Mario Draghi on the bank's readiness to go on buying the bonds of troubled euro zone states, outgoing ECB President Jean-Claude Trichet said.In a wide-ranging interview at the end of his eight-year term, Trichet welcomed what he saw as a commitment by euro zone governments at a summit last week to intervene in bond markets via the EFSF rescue fund to fight the bloc's debt crisis.

The German High Court Speaks

Thought the European deal reached yesterday was a done deal? Apart from all those pesky details like, where all the money will come from, the German Constitutional Court is not allowing the ink to dry, just yet.

Data Watch: Thursday

While markets will undoubtedly spend much of their time digesting the Euro-zone 'deal', one eye will remain on the incoming data.

Official doc: the self-congratulations + nitty gritty details...

Can be found here

My personal fave:

We call on the Eurogroup to finalise the terms and conditions for the implementation of these moalities in November, in the form of guidelines and in line with the draft terms and onditions prepared by the EFSF.

I'm a big 'modalities' fan ...

European Leaders Come to an Agreement Putting the Euro on Life Support for Months to Come

The main points of the agreement:

- EFSF to be leveraged 4x - 5x bringing its total firepower to 1.4 trillion

- Banks to take a [voluntary] 50% haircut (estimated to amount to ~100 bln) on their Greek debt holdings.
Apparently, the term 'voluntary' has a different meaning in Euro-speak.

- EU banks will have to raise 147 bln of extra capital

BOC MPR- Projecting 'gradual rate rise' through 2013

Report

Chart: Months' Supply of New Homes

New Home Sales: +5.7% (rev from -2.3% to -0.3%); 313K (rev from 295K to 296K)

report

Germans were right to be weary of 'Super Mario'

He hasn't even become president, but Mario Draghi is already making dovish comments:

Durables-> Headline: +0.8% ; Non-Defence CapGoods ex-Air Orders: +2.4% (prior month rev to +0.5% from +1.1%)

report

Morning Data Releases

From the US, we get the Durable Goods Report with -1.0% m/m for headline 'Orders' and a 0.5% m/m rise in non-defence Capital Goods ex-Aircraft. At 10:00, the US is expected to report New Home Sales rising 1.7% m/m to 300k annualized.

After S&P affirmed its 'AAA/A-1+' long and short-term sovereign
credit ratings, as stable, Canada will see the release of its Monetary Policy Report.

Banks Borrow EUR 56.9 bln in 12 Month LTRO

This puts the actual figure below the median of both Bloomberg and Reuters survey results. However, the three month EURIBOR-OIS spread continued to edge up (to 80 bps) and banks continue to deposit evermore cash in the ECB's Deposit Facility (see chart below).

Italy May Hold Early Elections

Italian newspapers have published reports that Italy, the third largest country in the Euro-zone, is poised to hold early elections. With its 10 year benchmark bond hovering just below 6%, making refinancing evermore difficult and painful (despite ongoing BTP bond purchases by the ECB).