World economy talk

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rising grain prices affect developing countries more where people spend up to 3/4 of their income on food

remember soaring food prices in 07-08 caused social and political instability in developing countries

another repeat coming

Weather again plays havoc...I think the previous wild swings was also because of drought in Russia. Hopefully the US won't resort to the same action as Putin did before...

MOSCOW — Prime Minister Vladimir V. Putin on Thursday banned all exports of grain after millions of acres of Russian wheat withered in a severe drought, driving up prices around the world and pushing them to their highest level in two years in the United States.

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risk off Friday

Italy


Spain

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Euro-Krise: IWF will Griechenland-Hilfen stoppen - SPIEGEL ONLINE

Drohende Pleite

IWF will Griechenland-Hilfen stoppen

Griechenland könnte schon im September pleitegehen. Der Internationale Währungsfonds hat nach Informationen des SPIEGEL der Brüsseler EU-Spitze signalisiert, dass er sich nicht an weiteren Hilfen für das Land beteiligen werde.

translated:

Impending bankruptcy

IMF wants to stop Greece-aids

The patience of the International Monetary Fund (IMF) with Greece comes to an end: Senior officials have told the Brussels EU leaders to information obtained by SPIEGEL, the IMF was no longer willing to provide additional funds for Greece help.

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good morning

fear is in the air

Spain's autonomous regions


Valencia is the first autonomous region to ask for bailout

then Murcia

Murcia next Spain region in spotlight for aid | Reuters

(Reuters) - Tiny Murcia was on course on Sunday to be the second Spanish region to request help from the central government to keep it afloat, as media reported half a dozen local authorities were ready to follow in the footsteps of Valencia.

then very likely Catalonia, Castilla-La Mancha, Baleares, the Canary Islands, Andalusia...


http://www.cnbc.com/id/48279904

US Benchmark 10-Year Yield Hits New Lows

Yields on U.S. benchmark 10-year Treasuries hit a record low of 1.4365 percent in early Asian trade on Monday on market concerns Spain may need a full-fledged bailout after an indebted Spanish region requested financial aid.

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No more time to snooze...

Spain Scraps Siesta as Stores Stay Open to Spur Spending: Retail - Bloomberg

The Spanish shopping siesta may be about to become the latest victim of the sovereign debt crisis.

To stimulate spending after a 23 percent drop in retail sales since 2007, the euro region’s fourth-largest economy this month approved measures that allow shops of more than 300 square meters (3,229 square feet) to open for 25 percent longer a week. The new rules may encourage the outlets to sell during the traditional afternoon snooze from 2 p.m. to 4 p.m., and on an additional two Sundays or holidays a year for a total of 10.

Spain is following its European neighbors in trying to liberalize shopping hours that have traditionally been checked by governments in the region to protect religious observances, for rest and on behalf of smaller retailers that have fewer resources to staff shops around the clock. England has allowed retailers to open for longer on Sundays during the Olympics than the six hours usually allowed. In France, food shops can be open 13 hours a day and stores located in tourist areas have the right to open on Sundays.

Spanish shops are allowed to open for less time than anywhere else in Europe, according to its government, which was asked by retail associations to allow large stores to open 16 Sundays or holidays a year. Some smaller merchants opposed the extension, arguing that the bigger stores would have the necessary manpower and they wouldn’t. The new measures allow stores 18 additional business hours a week and will permit merchants to decide when to cut prices in sales instead of only twice a year.

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risk off mode

kanina Hang Seng -2.99%

Europe now in the red

Brent down more than $3

Spain 10 yr yield 7.51400%

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US 10 yr yield

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volatility index

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Canada looking for other investors for its oil, but the only customer may not like them...

(Reuters) - State-controlled CNOOC Ltd launched China's richest foreign takeover bid yet on Monday by agreeing to buy Canadian oil producer Nexen Inc for $15.1 billion, forcing Ottawa to decide whether security concerns outweigh its desire for foreign investment in its energy resources.

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Euro sinks to 1.21...

Moody's has lowered its assessment of the German economy, taking a first step toward a full credit rating downgrade for Europe's largest and pivotal market.

The agency on Monday lowered the outlook for the German economy to 'negative' from 'stable' - along with a similar move for the Netherlands and Luxembourg - sending a stark warning that no economy is immune from the eurozone crisis.

Moody's said that the three AAA-rated countries faced risks from the increased prospect of Greece leaving the eurozone and from the possible need to bail out Spain and Italy.

'The level of uncertainty about the outlook for the euro area, and the potential impact of plausible scenarios on member states, are no longer consistent with stable outlooks,' it said.

The ratings agency pointed to a 'reactive and gradualist policy response' by European leaders as one cause for continued concern.

But even if Greece survives, Moody's warned that richer nations would likely shoulder more burdens going forward, including the possibility of bailing out large eurozone members.

'The continued deterioration in Spain and Italy's macroeconomic and funding environment has increased the risk that they will require some kind of external support.'

That would send the eurozone crisis to a different level.

'Spain's economy and government bond market is around double the combined size of those of Greece, Portugal and Ireland,' Moody's said referring to the three already bailed-out eurozone nations.

Moody's also announced that Finland's AAA rating and outlook were unchanged.

Germany responded, saying it would continue to play the role of 'eurozone's anchor of stability'.

'Germany will do all it can with its partners to overcome the European debt crisis as quickly as possible,' the finance ministry said in a statement shortly after Moody's announcement.