110 Billion euros For Greece...
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In This Issue..

* Aid Package for Greece is approved...
* Aussie Gov't proposes a 40% mining profit tax!
* ANZ Commodity Price Index rises 14th consecutive month!
* Jobs reports this week...

And Now... Today's Pfennig!

110 Billion euros For Greece...

Good day... And a Marvelous Monday to you! Well... I'm back in the saddle today... It's been a long time, now, I'm coming back home. I've been away now, oh how, I'm coming home! Yes... I'm actually here, at my desk, and I'm not squinting, I'm not closing my eyes, and I'm not in pain! YAHOO! I've decided to go "patchless" for now at least... More later on what's going on with the removed eye...

Front and center this morning... Greece accepted the bail out terms from the Eurozone yesterday, and Germany says that Greece should have their funds by Friday... After months of hemming and hawing about whether Greece should receive funds, or whether or not Germany would actually release funds to Greece, it looks as though it's all coming to an end.... For now!

The bail out was not without a lot of pain by Greece... Pain in attempting to make budget cuts as required by the Eurozone, and pain from the citizens of Greece, who are in no mood to see cuts in their lifestyles...

Since I don't live in Greece, I won't pass judgment on the people there rioting about cutting back... But... Just like I would say here in the U.S. when spending was out pacing earnings for years, it's just not right, and there will be a day when the chickens come home to roost... We saw that day... Now it's Greece's turn...

The total of the package was 110 Billion euros... This was greater than originally expected so long ago when the bailout was just rumored... Back then, the thought that it would not be enough... Well, I think the leaders of the Eurozone, looked at that, and thought that 110 Billion euros was enough to not only help Greece but to stop the spread of debt problems...

The jury will be out on all that for some time, folks... But for now, the markets will have to sort out which way they want to take the euro... Friday, the euro rallied most of the day, on the rumors of an imminent deal... But this morning, with the news of the deal done, the euro has been sold... A classic case of "buy the rumor, sell the fact"... The selling hasn't been huge... But, a reversal of Friday's rally it has been...

But then, the Asian markets were closed last night, and London is closed this morning... (May Day). So, we're not getting a heaping mouthful of trading at this point... Let's see what the NY boys and girls want to do with this news...

OK... Onto other things!

The Brazilian Central Bank as directed by the Government was in buying dollars last night, in yet another attempt to keep the markets from taking the real higher... I told you all this would happen once the Brazilian Central Bank began their rate hike champagne! Yes... The Brazilian Central Bank (BCB) hiked rates 3/4% or 75 BPS late last week, and the announcement of the move had pushed the real much higher... The BCB selling of the real and buying of dollars brought the real back a bit, but again... The markets have deeper pockets, we'll have to watch this to see how it plays out... But with interest rate differentials playing such a big part in the valuation of currencies these days... The real just received a "turbo-charge"!

The Aussie dollar (A$) got hit hard after it was announced that the Aussie Gov't had formally proposed a 40% mining profit tax... I would say to those selling the A$ on this news, "Whoa there partner"! This is just a recommendation by the Gov't, this proposal still has to go through Parliament, where it could get cut to pieces...

With the selling of the A$, all commodity currencies are cheaper this morning, and that includes the Canadian dollar / loonie. Which... In my mind just gives investors an opportunity to buy these two currencies cheaper...

A lot will be riding on this Friday's jobs report in Canada... For those of you new to class, the markets have been looking for clues in data reports to give them an idea of when the Bank of Canada (BOC) will wet their powder with a rate hike... And, there's nothing like a jobs report to get the blood going for the markets!

There will be an even larger jobs report on Friday, and that will be here in the U.S. OK... I'm going on record right here, right now, in saying that the Jobs Jamboree will be report a nice gain in jobs created for April... But let me remind you, before the Gov't officials all hit the cable news stations declaring that the coast is clear, that... A ton of the jobs created in April, were Gov't jobs... Census jobs to be clear... Now, those are some of the best jobs for long-time employment, eh?

Back in the South Pacific for a minute... In New Zealand, the ANZ commodity price index rose again in April... This marks the 14th month in a row, folks... This should put a feather in the cap of those calling for a rate hike in New Zealand earlier than others...

Hey! Did you hear about latest about Gold and Silver price manipulation? Long time readers of this letter, know that I feel that there has long been "something" that kept Gold from going to levels it should (in my opinion) be trading... Well, Kristin, sent me this link to a story on this... You should check this out yourself, and don't let me spin it my way...

http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=101525&sn=Detail

And Gold's price action on Friday and overnight? Well, remember that so-called line of resistance at $1,170? Well, Gold blew through that on Friday, and is sitting $10 above that level this morning!

We were coming home from dinner out on Saturday night and passed a gas station... Somebody said, do you see the price of gas? WOW! Well... I said... With the oil disaster in the Gulf, spilling multiples of tens of thousands of gallons of Oil each day, there's no way gas prices were going to go down! It's a real disaster in the Gulf...

Oil is trading above $86 this morning... I had to stop and buy gas, for the first time in a month, and that was quite a shocker! Oh well, it is what it is...

Then there was this... Remember last Monday, I told you about the GM Commercial where they claim to have paid back the Gov't (with interest) ahead of time? I proved that they were lying... But now there's even more to the story... Check this out... It just made me ill...

As it turns out, the Obama administration put $13.4 billion of the aid money as "working capital" in an escrow account when the company was in bankruptcy. The company is using this escrow money--government money--to pay back the government loan. GM is using government money to pay back government money to get more government money.

I shake my head in disgust... Once again!

To recap... The Big News this morning is that Greece has accepted, and the Eurozone has offered 110 Billion euros to help Greece, and to stop the spread of debt problems. The euro, which rallied on Friday, was sold on the news of a package for Greece... Asia and London were closed in the overnight markets, so it will be up to NY traders to decide which way trading goes today... Aussie and Canadian dollars are lower this morning... Wink, wink...

Currencies today 5/3/10... American Style: A$ .9270, kiwi .7305, C$ .9860, euro 1.3235, sterling 1.5260, Swiss .9235... European Style: rand 7.3920, krone 5.9310, SEK 7.2580, forint 202.30, zloty 2.9545, koruna 19.28, RUB 29.29, yen 94.10, sing 1.3725, HKD 7.7625, INR 44.63, China 6.8253, pesos 12.31, BRL 1.7390, dollar index 82.17, Oil $86.59, 10-year 3.69%, Silver $18.75, and Gold... $1,183.10

That's it for today... What a great weekend for yours truly... It began with the Jimmy Buffett concert Thursday night, and ended with a neighborhood bar-b-que... And now, I'm back to work! I noticed quite a few cards and notes on my desk that people have sent in... Thank you very much! So... The healing process is continuing for my removed eye... The prosthesis was put in after the eye was removed, and now I just wait 4 more weeks before I go to see the Ocularist, who will make me a shell to go over the prosthesis, and it will match my right eye... So, for now, I just look like somebody punched me in the eye... I could put a patch over it, but, shoot Rudy, I don't have a need to impress the "ladies" any more! We had another batch of dangerous storms rip through the area Friday night... It's spring! Well, I'm late with this, as my keyboard at my trading desk didn't work, and I had to do this in my office... Little Delaney Grace will be wondering where I am today... And on that note, I hope you have a Marvelous Monday!

Chuck Butler
President
EverBank World Markets
1-800-926-4922
1-314-647-3837





Posted 05-03-2010 9:05 AM by Chuck Butler