MORNING YAPS

*Gold is driving upwards on talk of yesterday's fed minutes missing the inflationary viciousness to come. Expect a run to 1000 then a complete sell off by the IMF down to last years levels or at least close to it. Then we start all over again. Gotta love this here stock market, once you figure how it works that is.

*I don't really care so much about the Shanghai market (Chinese have no fundamentals). The Hang Seng seems to be a better indicator of health but you can't ignore the obvious. Up up and away........
Chinese Stocks, U.S. Index Futures Climb; Yen, Bonds Decline
Stocks in China rose the most in six months, driving the yen and Treasuries lower, on speculation the government will adopt measures to boost equities after the Shanghai Composite Index fell into a bear market. The Shanghai gauge gained for a third straight day, closing 4.8 percent higher, while the MSCI World Index of 23 developed countries advanced 0.2 percent at 11:40 a.m. in London. Futures on the Standard & Poor’s 500 Index climbed 0.4 percent before a report that may show the pace of contraction in U.S. service industries slowed. The yen weakened against all 16 of the most- traded currencies and the yield on the U.S. 10-year note climbed 3 basis points. (Bloomberg)

*just one more reason NOT to invest in mutual funds
Deutsche Bank to launch money fund with floating share price
Deutsche Bank's DWS Investments plans to offer a money fund that will not strive to keep a $1 share price but instead allow its net asset value to fluctuate. The move comes a year after Reserve Management's Reserve Primary Fund broke the buck and caused investor panic. The floating-NAV concept is a controversial one in the fund industry, with some insiders saying such funds will destroy the sector. The Wall Street Journal (03 Sep.)

*pay back time
China might shut out foreign banks from derivatives market
China's biggest commercial banks are pushing strict credit demands that might effectively shut out foreign financial institutions from the country's rapidly expanding derivatives market, sources said. The rules would require banks to sign master agreements to trade with one another as counterparties. The Chinese banks, including Bank of China and Industrial and Commercial Bank of China, are insisting that their foreign rivals offer a credit guarantee for their Chinese divisions before such agreements are signed. The Wall Street Journal (03 Sep.)

Unemployment in Ireland at its highest in 14 years
Joblessness in Ireland has reached 12.4%, the highest in 14 years, according to the Central Statistics Office, meaning the number of people unemployed doubled in a year. The Irish economy has been hit particularly hard by the recession during the past year. The Boston Globe/The Associated Press (03 Sep.)