Thursday, December 29, 2011

It's The Economy Stupid: Jobless Claims Good / Euro Bad

Okay, Initial Jobless Claims numbers are trending below 400K.  They came in at 381K and the prior period number had a minimal revision.  This is a good thing.

 

Economic Event

Period

Economic Survey

Actual Reported

Original Prior

Revised Prior

Initial Jobless Claims

24-Dec

375K

381K

364K

366K

Continuing Claims

17-Dec

3600K

3601K

3546K

3567K

 

I wish all the news were good, but it ain’t.  The Euro has fallen to a 10 year low versus the Yen as the Italian bond auction was ‘poorly’ received.  The Italian bond auction fiasco points to the continuing problem in Europe, one that has no end in sight.

 

The Euro decreased 0.7 percent to 100.16 Yen in New York trading. The 17-nation currency slipped 0.6 percent to $1.2862, the lowest versus the Dollar since September 2010. The yield on Italian 10-year bonds climbed seven basis points to 7.07 percent. Gold declined to a five-month low.  Gold fell as much as 2 percent to $1,524.80 an ounce, the lowest price since July 7.

Yield levels around 7 percent are absolutely not sustainable by Italy’s economy.

 

 

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One City Plaza, 7th Floor

Corner of North Blvd & 4th Street

Exit 1B I-110 Convention Street, Turn Left to get to North Blvd

 

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