Markets, Calm

The markets were very quiet yesterday, as no new economic news came out (except for leading indicators -.1) and traders seemed to still be weekend break. Emerging Markets were also quiet.

Argentina has performed basically as expected. Spot has remained steady (3.0250-75) with interest rates coming off. I look for rates to stabilise and the dollar to grind higher.

Brazil, not much to say here. The dollar continued its slow grind lower during the trading session yesterday. Rates traded ever so slightly higher. I have very little risk on here, I feel the dollar will reverse (move higher) but I do not want to fight "yield" or trend.

Colombia and Chile. I am square in both of these currencies. No real inspiration in these currencies. Better to be on the sidelines during these times.

Reading the news this morning I see Wachovia had a record loss after writing down 8.9 billion dollars of bad loans and cutting the dividend by 87%. OUCH.

-- Wachovia Corp., the U.S. bank that hired Treasury Undersecretary Robert Steel as chief executive officer two weeks ago, reported a record quarterly loss of $8.9 billion and cut the dividend by 87 percent. The stock fell as much as 12 percent in early New York trading.

The second-quarter loss of $4.20 a share compared with net income of $2.3 billion, or $1.23, a year earlier, the Charlotte, North Carolina-based company said today in a statement. The loss included a $6.1 billion charge tied to declining asset values.

Good Luck Mr Steel ! Actually if you think about it is there a better time to take over as the top dog? There is really no where to go but up !

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