Issues & Risks ( Coming Week )

> When Bernanke speaks, the markets stop doing anything.
He said one bad word last night : The outlook for growth in 2008 has
"worsened".
That was enough for all to sell, and sell more.
But now that he's said what he wanted to, and since he's not going to appear
before any public hearings for some time, expect that those markets will see a
trading recovery next week.
However, we here will just have to go through the pain of pricing in Wall Street
and the Far East this morning.
Nothing to be done to avoid that.
Besides, the yen-carry seems to be unwinding slowly but surely.
Recall that the yen was around 120 to the dollar in October but is now at 106.
>Monies shifted hugely to US bonds and yield on the 10-year benchmark fell to a
2003 low at 3.61%.
They say that this kind of low yield is yet to reflect a recession !
>Players now think a 50 bps cut is a cinch on 30th Jan but now more are shifting
to the bandwagon who're saying 75 bps is more possible than before.
Bernanke speaking in a bad language is a matter of concern.
>Our markets will roil from Monday till Wednesday as FIIs and Hedge Funds will
sell their January futures. No avoiding that either.
>Our price discovery in the manufacturing sector really began only since
yesterday. Let the markets listen to more results every day and then only choose
the next course of action.
What to expect this week, and going forward
>Quite naturally, a bad opening to factor in Wall Street's shivers and that which
followed in the Far East.
Whether a trading recovery will come back today itself...difficult to say at this
point in time.
But all know the Funds will sell their Jan futures next week, and so none that we
hear are talking about the buy side today till next Wednesday or so.