The Mole

Preview from Europe: Market's Random Walk Continues

There is one bank out saying that the FASB staffers are recommending that they do not relax the mark to market rules. The vote still has to happen, and the staffer report isn’t said to be binding… but if this is true, this is very equity negative for financials in the medium term, and possibly bond positive.

The ECB disappointed with only a 25bp cut, when universally the markets had 50bps priced in. this also suggests to me that they are saving rate cut bullets in their gun, and will likely also delay any possibility off quantitative easing for the near term. Euribor -9 lower across the board, and bunds were down about 3/4 or a point on the news, and have bounced back half of that…. lets see how Jean-Claude spins it?? But once again, they are going to be late to their own funeral!!!

Preview from Europe: Market's Random Walk Continues

Thanks - I think that they are corrected now.