From: Ike Groff <MI > Subject: early tour 10.19.11 Date: Wed, 19 Oct 2011 10:17:14 +0000 Good Morning ... European Markets up 50-150 bps (Greece +2.2%) ... Nikkei closed +0.35% (HSI +1.29%, China -0.25%, KOSPI +0.93%) EUR 1.3853 (+0.73%) EUR/CHF 1.2427 (+0.53%) Copper -0.85% 10yr 2.21% 30yr 3.21% JPY 76.79 (+0.04%) AUD 1.0342 (+0.78%) Futures: Dow +16, Nasdaq -12, S&P +1 DXY 76.62 (-0.68%) Crude $88.63 (+0.33%) Gold $1657.70 (+$4.80) At 3pm yesterday a Guardian story hit that Germany & France reached agreement to increase the eurozone's rescue fund to e2 trillion (the S&P futures rallied to Monday's overnight high of 1230 on this). This story was refuted by Dow Jones as `totally wrong' moments before the closing bell. This morning, FT Deutschland is reporting that German FinMin Schauble has explained the mechanics of a levered EFSF to the government coalition (and according to the sources a maximum volume of el trillion was named with the larger part of this coming from a kind of insurance which would secure 20-30% of the losses if one country would not be able to pay the debt). Meanwhile, the earnings barrage continues here in the U.S. with 27 more S&P 500 companies reporting today. S&P futures lower overnight but have now rallied back and turned positive on the day = 1224 last (Nasdaq futures -0.47% because of AAPL) as European markets near the highs of the session. ***CPI & Housing Starts @ 8:30am, Fed's Beige Book @ 2pm*** ***FCX, MS pre-open & AXP, ERA?, WYNN, CAKE after close*** BOE minutes out (unanimous 9-0 votes at last meeting on interest rates and £75 billion QE bump) Spain cut 2 levels by Moody's (3rd time in 13 months debt has been downgraded by Moody's) European banks vow $1 trillion cuts in the next two years as recapitalization looms (Bloomberg<http://www.bloomberg.com/news/2011-10-18/banks-in-europe-vow-l-trillion-shrinkage- amid-threats-of-recapitalization.html>) EU ban on naked CDS on sovereign debt to become p