<html><head><meta http-equiv="Content-Type" content="text/html charset=us-ascii"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><div class="fastft-head"><h3>Summers' withdrawal pushes equity futures up, US dollar down</h3>
</div>
<div class="fastft-content fastft-revealer-parent fastft-revealer-toggled">
<div class="fastft-sharelinks fastft-show-href">
<div class="fastft-sharelink fastft-icon-link" title="Show the URL of this post (for sharing)."></div>
<a href="https://twitter.com/intent/tweet?original-referer=http%3A%2F%2Fwww.ft.com%2Ffastft%3Fpost%3D40392&url=http%3A%2F%2Fwww.ft.com%2Ffastft%3Fpost%3D40392&text=Summers%27%20withdrawal%20pushes%20equity%20futures%20up%2C%20US%20dollar%20down&related=fastft%2Cfinancialtimes&via=fastFT" target="_blank" class="fastft-sharelink fastft-icon-twitter" title="Tweet this post (in a new window)." data-url="https://twitter.com/intent/tweet?original-referer=http%3A%2F%2Fwww.ft.com%2Ffastft%3Fpost%3D40392&url=http%3A%2F%2Fwww.ft.com%2Ffastft%3Fpost%3D40392&text=Summers'%20withdrawal%20pushes%20equity%20futures%20up%2C%20US%20dollar%20down&related=fastft%2Cfinancialtimes&via=fastFT" data-title="Summers' withdrawal pushes equity futures up, US dollar down" data-content="Summers' withdrawal pushes equity futures up, US dollar down"></a>
</div>
<span class="fastft-meta fastft-date fromnow" data-timestamp="1379288176" title="6:36pm 15th Sep 2013">3 minutes ago</span>
<div class="fastft-body">
<div class="fastft-full fastft-hidden"><p>Larry Summers' withdrawal from consideration as the next chief of
the Federal Reserve has caused both risk assets and safe haven
Treasurys to rally, while the US dollar weakens.</p><p>Markets are pricing in that Fed vice chair Janet Yellen will now take
the helm after Ben Bernanke's term expires in January. Ms Yellen is
widely considered to be more dovish than Mr Summers; the prospect of
further quantitative easing is a boon for both equities and Treasurys,
but negative for the US currency.</p><p>US equity futures have climbed more than 1 per cent and Treasury
futures in 5yr, 10yr and 30yr maturities have each climbed a point after
Mr Summers sent a <a href="http://www.ft.com/intl/cms/2809f978-1e54-11e3-85e0-00144feab7de.pdf">letter</a>
to President Obama announcing he had "reluctantly concluded that any
possible confirmation process ... would be acrimonious and would not
serve the interests of the Federal Reserve, the Administration, or
ultimately, the interests of the nation's ongoing economic recovery."</p><p>The US dollar index, which measures the US currency against a basket
of its major peers, has weakened 0.42 per cent to 81.109, a three-week
low.</p><p>Analyst reactions to the news are rolling in:</p><p><strong>Millan Mulraine</strong>, strategist at TD Securities, said
Ms Yellen is now the front-runner but this could also bring back into
focus the"dark-horse" candidates including ex-Vice Chairs Donald Kohn
and Roger Ferguson.</p>
<blockquote><p>This news should be positive for the markets, with both risk assets
and Treasuries likely to get a modest lift ... The rise in Yellen's
odds will also be supportive to Treasuries, reducing the perceived
uncertainty that a Summers nomination would have created.</p>
</blockquote><p><strong>Adrian Miller</strong>, chief fixed-income strategist at GMP
Securities, called the withdrawal "a big deal" and said Ms Yellen is the
only clear alternative:</p>
<blockquote><p>Summers himself realized the confirmation process would only serve
to drain Obama's much needed political capital that he'll need to secure
his Obamacare program and perhaps the debt ceiling debate.</p><p>So this clears up Yellen for the nomination as other possible candidates were only alternative by name and not truly alternates.</p>
</blockquote><p><strong>Steven Englander</strong>, global head of G10 FX strategy at
CitiFX, said the news will add to downward pressure on 10yr Treasury
yields and may be worth another 10-15bps on the downside. As for FX:</p>
<blockquote><p>hard to see it as anything but USD negative for now. Main buying
opportunities probably high current account deficit EM, AUD,and JPY.
Discussion of waning Summers odds had been in market last week so we
would see impact on JPY in 0.5-1.0% range.</p>
</blockquote>
<div class="fastft-attachments">
</div>
<div class="fastft-tags"><font color="#4787ff"><</font><a href="http://www.ft.com/intl/fastft">http://www.ft.com/intl/fastft</a>></div><div class="fastft-tags"><font color="#4787ff"><br></font></div><div class="fastft-tags"><font color="#4787ff"><br></font></div>
<a class="fastft-revealer">
<div class="fastft-label"></div></a></div></div></div><div><div>On Sep 15, 2013, at 6:28 PM, "Carl G. Estabrook" <<a href="mailto:galliher@illinois.edu">galliher@illinois.edu</a>> wrote:</div><br class="Apple-interchange-newline"><blockquote type="cite">This may make even more difference than getting Chuck Hagel in as Defense Secretary...<br><br>On Sep 15, 2013, at 5:23 PM, Robert Naiman <<a href="mailto:naiman@justforeignpolicy.org">naiman@justforeignpolicy.org</a>> wrote:<br><br><blockquote type="cite">The world is definitely improving. I get to claim victory on a MoveOn<br>petition three weeks in a row.<br><br>---------- Forwarded message ----------<br>From: POLITICO Breaking News <<a href="mailto:breakingnews@politico.com">breakingnews@politico.com</a>><br>Date: Sun, Sep 15, 2013 at 3:55 PM<br>Subject: POLITICO Breaking News<br>To: <a href="mailto:naiman@justforeignpolicy.org">naiman@justforeignpolicy.org</a><br><br><br>President Barack Obama announced that Lawrence Summers has withdrawn his<br>name from consideration as the next chairman of Federal Reserve.<br><br>Here is the full statement: "Earlier today, I spoke with Larry Summers and<br>accepted his decision to withdraw his name from consideration for Chairman<br>of the Federal Reserve. Larry was a critical member of my team as we faced<br>down the worst economic crisis since the Great Depression, and it was in no<br>small part because of his expertise, wisdom, and leadership that we<br>wrestled the economy back to growth and made the kind of progress we are<br>seeing today. I will always be grateful to Larry for his tireless work and<br>service on behalf of his country, and I look forward to continuing to seek<br>his guidance and counsel in the future."<br><br>For more information... <a href="http://www.politico.com">http://www.politico.com</a><br><br>=================================<br>To unsubscribe,<br><a href="http://dyn.politico.com/unsubscribe.cfm?email=naiman@justforeignpolicy.org&uuid=5D15AD6F-DD06-7365-CB154587BA7AFFB2&alertID=1">http://dyn.politico.com/unsubscribe.cfm?email=naiman@justforeignpolicy.org&uuid=5D15AD6F-DD06-7365-CB154587BA7AFFB2&alertID=1</a><br>=================================<br><br><br><br>-- <br>Robert Naiman<br>Policy Director<br>Just Foreign Policy<br>www.justforeignpolicy.org<br>naiman@justforeignpolicy.org<br>___________________________________<br>http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk<br></blockquote><br>_______________________________________________<br>Peace-discuss mailing list<br><a href="mailto:Peace-discuss@lists.chambana.net">Peace-discuss@lists.chambana.net</a><br>https://lists.chambana.net/mailman/listinfo/peace-discuss<br></blockquote></div><br></body></html>