::Eyes of gold for the first positive month since January - critical next week

June 16, 2012 16: 11 GMT  fundamental forecasts for gold: neutral Gold is significantly stronger at the end of trade this week with the metal precious progress of 2.09% to nearly $1626 in New York, marking its biggest weekly advance since the first week of June. The price of bullion has increased steadily throughout the week risk of major event of the week next with elections key in Greece and the decision of FOMC rate on tap. The rise in the price of gold is accompanied by a decrease in the value of the greenback which closed the week off the coast of 0.80% after the G20 leaders cited of the preparations for a coordinated global response counter offshore risk of a liquidity crunch that the actors of the market of weight the consequences of a Greek-euro exit.
All eyes will be fixed on the Greece this weekend at the head of voters return to the polls for parliamentary elections with the likely outcome determine the future of the countries of the Euro area. With the global central banks reaffirming their commitment to provide additional liquidity should the Greek vote rile markets, it is probably however will remain well supported as the injection of liquidity invites investors to move from currency fiat on inflation concerns. While the results of the election will weigh heavily on the broader risk appetite, which is more crucial to the prospects for gold are how major global central banks - the Federal Reserve and the European Central Bank - to meet a disappointing outcome of the elections. Indeed, chatter, 14 June suggested that the g-20 leaders discussed a coordinated response around the world to help support the euro. While we suspect an important announcement over the weekend, the next meeting of the Federal Reserve policy offers clues where this can occur.
The decision of rate FOMC Wednesday, highlights the risk of event more important for the precious metal. With national economic data begins to soften even once, recent speech of the Fed officials suggests that there is a growing split within the Federal Reserve with respect to start a new round of easing quantitative or not. Thus, the implications of the FOMC decision next week for gold can be significant participants of the market begin to factor in the likelihood of more fed of relaxation. Look for the value of the dollar offers clarity with the dollar likely to come under substantial pressure should officials signal intention to intervene in markets to support the fragile recovery. Such a scenario would likely fuel a rally in gold that takes the precious metal through resistance key to $1628.
From a technical point of view, gold remains within dating descending channel training to senior February with the closing of the week price just below the confluence of the resistance of the chain and the tracing of Fibonacci 38.2% from February 29 down $1628. A breach of this level exposes the objectives of resistance to the confluence of the 50 day moving average and the tracing of 50% to $1659 and the moving average 200 days to $1675. Interim support is the responsibility of the tracing by 23.6% to $1590 and is supported by the lower $ 1545 of June. It is important to note that the month last gold has broken below trendline support dating back to 2008 with only a full commitment to ease more the Fed likely to rehabilitate the break. Look for prices to benchmarks in the coast of the evolution of the situation in Greece and the decision of rate FOMC increased speculation of more comprehensive Bank Central facilitating likely to keep many gold argued early next week.
DailyFX provides news forex and technical analysis on trends affecting the world market currencies.
Learn forex trading with a free account of practice and exchange of graphics of FXCM.
16 June 2012 16: 11 GMT

EU Market Update: Major European PMI Manufacturing data misses expectations; German IFO Business Confidence falls for the first time in 7 months

Thursday, May 24, 2012 5:41:17 AM TradeTheNews.com EU Market Update: Major European PMI Manufacturing data misses expectations; German IFO Business Confidence falls for the first time in 7 months***Economic Data***
- (RU) Russia Gold & Forex Reserve w/e May 18th: $514.3B v $518.8B prior
- (DE) Germany Q1 Final GDP Q/Q: 0.5% v 0.5%e; Y/Y: 1.7% v 1.7%e; GDP WDA Y/Y: 1.2% v 1.2%e
- (DE) Germany Q1 Private Consumption: 0.4% v 0.2%e; Government Spending: 0.2% v 0.3%e; Domestic Demand: -0.3% v 0.0%e; Capital Investment: -1.1% v -0.3%e; Construction Investment: -1.3% v -0.4%e; Exports: 1.7% v 0.9%e; Imports: 0.0% v 0.3%e
- (CH) Swiss Apr Trade Balance (CHG): 1.3B v 1.9Be; Real Exports M/M: -0.9% v +0.2%e; Real Imports M/M: 2.6% v 5.9% prior
- (FI) Finland Apr PPI M/M: -0.1% v +0.4% prior; Y/Y: 1.4% v 1.4% prior
- (FI) Finland Apr Preliminary Retail Sales Volume Y/Y: -2.0% v +5.3% prior
- (FR) France May Business Confidence: 93 v 94e; Production Outlook: -29 v -14 prior; Own-Company Production Outlook: -4 v -4 prior
- (FR) France May Preliminary PMI Manufacturing: 44.4 v 47.0e; PMI Services: 45.2 v 45.7e
- (CZ) Czech May Business Confidence: 6.0 v 7.5 prior; Consumer Confidence: -31.0 v -29.3 prior; Composite: -1.4 v +0.2 prior
- (HU) Hungary Mar Retail Trade Y/Y: +0.9% v -0.8%e
- (ES) Spain Mar Mortgages-capital loaned Y/Y: -41.5% v -49.6% prior; Mortgages on Houses Y/Y: -42.0 v -47.1% prior
- (DE) Germany May Advanced PMI Manufacturing: 45.0 v 47.0e (fastest rate of contraction since June 2009); PMI Services: 52.2 v 52.0e
- (NL) Netherlands Apr Unemployment Rate: 6.2 v 5.9% prior
- (NL) Netherlands May Producer Confidence: -5.0 v -3.3 prior
- (EU) Euro Zone May Advanced PMI Manufacturing: 45.0 v 46.0e (lowest reading since June 2009); PMI Services: 46.5 v 46.7e; PMI Composite: 45.9 v 46.6e
- (DE) Germany May IFO Business Climate: 106.9 v 109.4e (first MoM decline in 7 months); Current Assessment: 113.3 v 117.1e; Expectations Survey: 100.9 v 102.0e
- (UK) Q1 Preliminary GDP (Second reading) Q/Q: -0.3% v -0.2%e; Y/Y: -0.1% v 0.0%e
- (UK) Q1 Preliminary Private Consumption: 0.1% v 0.3%e; Government Spending: 1.6% v 0.0%e; Gross Fixed Capital Formation: -0.3% v -0.5%e; Exports: +0.1% v -0.3%e; Imports: 0.4% v 0.1%e
- (UK) Q1 Preliminary Total Business Investment Q/Q: +3.6% v -1.0%e; Y/Y: 14.2% v 9.2%e
- (UK) Mar Index of Services M/M: 0.5% v 0.3%e; 3M/3M: 0.1% v 0.2%e
- (UK) Apr BBA Loans for House Purchase: 32.4K v 32.0Ke
- (HK) Hong Kong Apr Trade Balance (HKD): -42.9B v -40.8Be; Exports Y/Y: 5.6% v 6.2%e; Imports Y/Y: 5.0% v 4.1%e
- (IC) Iceland May CPI M/M: 0.0% v 0.8% prior; Y/Y: 5.4% v 6.4% prior
Fixed Income
- (DK) Denmark sold approx DKK6.0B in I/L 2023 Bonds; Yield -0.14%, bid-to-cover: 1.78x
- (HU) Hungary Debt Agency (AKK) sold HUF50B v HUF45B indicated in 12-Month Bills; Avg yield 7.58% v 7.38% prior; Bid-to-cover: 1.81x v 2.12x prior
*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***
***Notes/Observations***
- China May HSBC Flash Manufacturing PMI registers its 7th consecutive contraction
- Major European PMI Manufacturing miss market expectations
- German IFO falls for the first time in 7 months
- UK Q1 GDP second reading revised slightly lower
- Speculation rising of a EU wide deposit guarantee plan to be endorsed by German Chancellor Merkel
- EU growth initiatives will be announced in June, but without abandoning fiscal prudence
***Equities*** >Indices: FTSE 100 +0.80% at 5306, DAX +0.30% at 6301, CAC-40 +0.60% at 3021, IBEX-35 +0.60% at 6481, FTSE MIB +0.75% at 13,057, SMI +0.40% at 5841
- In Europe, equities opened the session broadly higher amid gains in banks. However, markets have since pared gains following the release of weaker than expected EU manufacturing PMI and German IFO data. Additionally, the decline in China's May flash manufacturing PMI has weighed on markets. In terms of upcoming event risks, durable goods and weekly jobless claims data are due out of the US later today. Also, commentary is expected later today from the German Finance Minister Schaeuble, ECB's Prsident Draghi, Fed official Dudley and ECB/Bundesbank official Asmussen.
- In the UK shares of Mothercare [MTC.UK] and Cable & Wireless Communications [CWC.UK] have both traded sharply higher after releasing their respective full year earnings reports. Additionally, Thomas Cook [TCG.UK] has gained more than 5%, after naming a new CEO. SABMiller [SAB.UK] has moved between slight gains and losses, following the release of its full year earnings report. In Spain, Bankia is trading lower by approx. 1%, as Spain's government said the firm will require about ?7.1B to comply with the country's provisioning rules. Austrian bank, Raiffeisen [RIBH.AT] has gained over 1% after reporting higher than expected Q1 earnings. In Germany, sharers of SAP [SAP.DE] and Metro [MEO.DE] have been weighed down by ex-dividend factors. Bayer [BAYN.DE] has lost approx. 1.5%, as a US FDA panel voted against recommending XARELTO as a treatment for acute coronary syndrome.
Speakers: >- German IFO Economists commented that uncertainty in Euro Zone was impacting Germany's economy, but outlook remained above its long-term avg
- ECB's Nowotny: ECB has not used its whole arsenal and reiterated that non-standard ECB measures should not endanger mid-term price stability. The situation in Greece was particularly acute and overcoming imbalances was essential but would take time
- Bank of Japan (BOJ) Monthly Economic Report maintained its overall assessment of the economy that it would return to moderate recovery path
- Japan BOJ Gov Shirakawa commented ion Parliament that distrust in fiscal reform could push up long-term interest rates and weigh upon earnings of financial companies. He reiterated view that BOJ would pursue powerful easing. Risk aversion was the biggest factor in recent FX price movements. He added that there was no clear correlation historically between monetary base and JPY currency movement. The BOJ would strive to beat deflation using current asset buying program
- IMF China representative stated that a Greek exit from EMU would be a big shock to Chinese exports but China has fiscal room to sustain growth in the face of crisis
- BoE official Bailey stated that the UK banking sector's contingency plan for potential Greek exit from euro becoming more detailed
- Finland Fin Min Urpilainen commented that Europe's challenge was to find economic growth. Collateral payment from Greece rose to ?560M
- Ireland Dep PM Gilmore stated that categorically treaty would not be changed and reiterated the view that it wanted Greece to stay inside the EMU. Lastly he added that Ireland did not have contingency plan for a Greek exit.
- Sweden FSA's Cerps stated that the agency was monitoring banking sector to USD funding as Euro crisis deepens
- Poland Dep Fin Min Radziwill commented that the PLN currency was relatively stable with its weakness related to the Euro crisis. Poland currency sales would be similar to 2011 levels. He noted that debt markets were difficult at this time but would return to the market after it stabilizes as the country is in a comfortable situation. Domestic sales were seen covering most remaining needs for 2012
- Hong Kong Chief Executive Leung stated that it would seek stronger economic growth by diversification
- India Finance Ministry Official noted that the Gov't committee to meet on Friday to discuss raising diesel prices
- Philippines Central Bank Assistant Gov Amador commented that it would review CPI forecasts at June policy meeting and saw Inflation at a manageable as lower oil costs dampened pressures. To consider global economy and Euro Zone crisis during policy meeting and added the central bank would moderate sharp volatility in FX rates
- Indonesia Finance Ministry unveiled its mineral export tax regulation
- Iran official stated that there was no basis for new round of UN Counsel (P5+1) discussions
Currencies:
- The Euro initially tried to correct oversold levels but risk aversion sentiment again maintained the upper hand throughout the bulk of the European morning. Following China's lead, the European major PMI Manufacturing data came in softer than expectations and provided further headwinds for the Euro. Citigroup analyst added to sentiment when it issued a note forecasting ECB refi rate being cut to 0.50% and the central bank to resume its 3-year lending LTRO following any Greek exit from EMU. The EUR/USD approached the 1.2500 level for 22-month lows which provided some technical and psychological support. One analyst noted that 1.2530 level was 78.6% retracement of its 2010-2011 move.
-The hour ahead of the NY morning the markets encountered a bit of a reversal as European equity markets moved back into positive territory and peripheral spreads narrowed. The record low yields of safe-haven plays seemed to have ignited some asset reallocation back into equities. The EUR/USD was back around the 1.2560 area as the NY morning approached
- The EUR/CHF cross floor at 1.200 continued to note a 'massive' bid in its defense.
Political/ In the Papers:
- The Spanish government was said to be planning to nationalize CatalunyaCaixa and NovaGalicia banks due to the inability to find a buyer. Prior reports from late March suggested that the auction process for the banks would be slowed by Spain's government, as Spain's Deposit Guarantee Fund (DGF) needed to be strengthened. At that time it was estimated that the DGF had about ?2.0B in funds.
- Plans by the government to delay certain privatizations related to the energy industry have weighed on Russia's equity markets. On Wednesday, Russia's benchmark RTS index declined by 4.4%.
- The Telegraph's Ambrose Evans-Pritchard is critical of former Greek caretaker PM Papademos. He argued If Greece were to leave the Euro, then its fate would not have to be as dire as the situation recently described by Papademos. It could restructure its economy in a similar manner to Iceland.
- According to the FT US manufacturers argued against plans by JP Morgan to launch an exchange traded fund backed by copper as it would grossly and artificially inflate prices, and cause wreak havoc on the global economy.
***Looking Ahead*** >- (ZA) South Africa Central Bank (SARB) Interest Rate Decision: Expected to leave interest rates unchanged at 5.50%
- (AR Argentina May Consumer Confidence:
- 6:00 (IR) Ireland Apr Property Prices M/M: No est v 0.0% prior; Y/Y: No est v -16.2%e
- 6:00 (CZ) Czech Republic to sell 9-month Bills
- 7:15 (UK) BOE member Miles
- 7:30 (DE) German Fin Min Schaeuble
- 7:30 (TR) Turkey May Industrial Confidence: No est v 116 prior; Capacity Utilization: No est v 74.7% prior
- 8:00 (ZA) South Africa Central Bank Gov Marcus Rate Decision press conference
- 8:00 (BR) Brazil Apr Unemployment Rate: 6.2%e v 6.2% prior
- 8:00 (RO) Romania to sell RON500M in Bonds
- 8:30 (US) Apr Durable Goods Orders: +0.2%e v -4.0% prior (revised from -4.20%); Durables Ex Transportation: +0.8%e v -0.8% prior (revised from -1.1%); Capital Goods Orders Non-defense Ex-Aircraft: 0.8%e v -0.8% prior; Capital Goods Shipment Non-defense Ex-Aircraft: -1.0%e v +2.6% prior
- 8:30 (US) Initial Jobless Claims: 370Ke v 370K prior; Continuing Claims: 3.250Me v 3.265M prior
- 8:58 (US) May Preliminary Markit PMI:
- 9:00 (IT) Italy PM Monti
- 9:00 (EU) ECB's Draghi, Bank of Italy's Visco speak at Rome Conference
- 9:00 (DE) German Chancellor Merkel speaks at German Engineering Industry Convention
- 9:00 (BE) Belgium May Business Confidence: -11e v -10.7 prior
- 9:00 (MX) Mexico Q1 GDP Y/Y: No est v 11.0% prior
- 9:30 (DE) Germany Econ Min Roesler
- 9:30 (US) Fed's Dudley to speak on Regional Economy in New York
- 9:30 (EU) EFSF CFO Frankel in Rome
- 9:30 (BR) Brazil Apr Current Account: -$4.0Be v -$3.3B prior; Foreign Direct Investment (FDI): $4.9Be v $5.9B prior
- 9:30 (US) Commercial Paper data
- 10:30 (US) EIA Natural Gas Inventories
- 11:00 (US) May Kansas City Fed Manufacturing Activity: 5 v 3 prior
- 12:20 (DE) ECB member Asmussen in Poland
- 15:00 (AR) Argentina Apr Industrial Production M/M: No est v 1.9% prior; Y/Y: 1.5%e v 2.1% prior
- 19:30 (JP) Japan Apr National CPI Y/Y: No est v 0.5% prior; Ex-Food Y/Y: No est v -0.5% prior
 Legal disclaimer and risk disclosure All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Loon slips slightly as Canadian Business Conditions loans facilitated in the first quarter

09 April 2012 14:58 GMT  THE TAKEAWAY: [Bank of Canada Senior Loan Officer Survey (Q1) result eases] > [Overall business-lending conditions ease, notably for small businesses] > [CAD slips vs. USD]
Overall business-lending conditions in Canada eased during the first quarter of 2012, following virtually unchanged lending conditions in the last quarter of 2011, according to the Bank of Canada’s Senior Loan Officer Survey (SLOS) results that were released today. The latest survey print eased to minus 16.9 in the first quarter of 2012 from minus 6.3 the previous quarter. The survey, conducted quarterly, collects information on the business-lending practices of Canadian financial institutions, and in particular, gathers the perspectives of respondents on price and non-price terms of business lending. Readings above zero indicate tightening credit terms while figures below zero signal easing conditions.
The survey revealed that price and non-price lending conditions eased across all borrower categories, most notably for small businesses, which saw six consecutive quarters of easing lending conditions. Competition among lenders was cited as the underlying factor in the easing of lending conditions, while an improving economic outlook boosted easing for small businesses. Additionally, the general consensus of respondents suggested that there was little evidence of increased demand for business credit during the first quarter of 2012.

USDCAD 1-minute Chart: April 09, 2012

The Canadian business outlook future sales print for the first quarter of 2012 was released at the same as the SLOS results. Despite improved optimism among Canadian businesses, the loonie weakened slightly against the greenback following release of the survey results. The Canadian dollar initially gained against the U.S. dollar in the first few minutes, but quickly erased gains to fall 6 pips in the following 20 minutes from pre-data release levels. At the time of this report, the USDCAD pair was trading at around 99.830 cents.

European Market Update: German ZEW Expectations survey turns positive for the first time since May 2011; China reiterates support for Europe

 Tuesday, February 14, 2012 5:54:21 AM
 TradeTheNews.com European Market Update: German ZEW Expectations survey turns positive for the first time since May 2011; China reiterates support for Europe
***Economic Data***
- (EU) ECB: €1.1B borrowed in overnight loan facility v €1.2B prior; €510.2B parked in deposit facility vs. €507.9B prior
- (ES) Spain Jan ECB Banks Borrowings: €161.4B v €132.4B m/m
- (IN) India Jan Monthly Wholesale Prices Y/Y: 6.6% v 6.7%e
- (FI) Finland Dec Final Retail Sales Volume Y/Y: 2.1% v 1.8% prelim
- (SE) Sweden Jan PES Unemployment Rate: 4.8% v 4.9%e
- (FR) France Q4 Preliminary Non-Farm Payrolls Q/Q: -0.2% v -0.2%e; Wages Q/Q: 0.3% v 0.3% prior
- (HU) Hungary Jan Consumer Prices M/M: 2.1% v 1.7%e; Y/Y: 5.5% v 5.0%e
- (HU) Hungary Dec Final Industrial Production M/M: -7.4% v -7.4% prelim; Y/Y: -6.7% v -6.7% prelim
- (ES) Spain Dec Industrial Orders Y/Y: -4.0% v -1.6% prior
- (FR) France Jan Real Retail Sales (seasonally adj) M/M: +0.6% v +0.2% prior; Y/Y: +0.7% v -3.1% prior - Bank of France Survey
- (NL) Netherlands Dec Retail Sales: 1.0% v 1.3% prior
- (SE) Sweden Q4 Total Number of Employees Y/Y: 3.1% v 3.5% prior
- (UK) Dec DCLG UK House Prices Y/Y: +0.1% v -0.3% prior
- (UK) Jan CPI M/M: -0.5% v -0.5%e; Y/Y: 3.6% v 3.6%e; Core CPI Y/Y: 2.6% v 2.6%e - (UK) Jan RPI M/M: -0.6% v -0.4%e; Y/Y: 3.9% v 4.1%e; RPI-X Y/Y: 4.0% v 4.2%e; Retail Price Index: 238.0 v 238.4e
- (DE) Germany Feb ZEW Economic Sentiment: +5.4 v -11.8e (first positive reading since May 2011); Current Conditions: 40.3 v 30.5e
- (EU) Euro Zone Dec Industrial Production M/M: -1.1% v -1.2%e; Y/Y: -2.0% v -1.2%e
- (EU) Euro Zone Feb ZEW Economic Sentiment: -8,1 v -32.5 prior
- (GR) Greece Q4 Preliminary GDP: Y/Y: -7.0% v -5.0% prior
- (PT) Portugal Q4 Preliminary GDP Q/Q: -1.5%e v -0.6% prior; Y/Y: -2.8%e v -1.7% prior
Fixed Income - (NL) Netherlands Debt Agency (DSTA) sold €3.98B vs €3.0-4.0B indicated range in 2.5% 2017 DSL Bond; Avg Yield 1.347% v 1.777% prior
- (ES) Spain Debt Agency sold total €5.44B vs. €4.5-5.5B indicated range in 12-Month and 18-Month Bills
- Sold €2.94B in 12-month Bills; Avg Yield 1.899% v 2.049% prior; Bid-to-cover: 2.3 x v 3.55x prior; Max Yield 1.949% v 2.150% prior
- Sold €2.5B in 18-month Bills; Avg Yield 2.308% v 2.399% prior; Bid-to-cover: 2.88x v 3.23x prior; Max Yield 2.395% v 2.490% prior
- (GR) Greece Debt Agency (PDMA) sold €1.3B vs. €1.0B indicaqted in 13-week treasury bills; Avg Yield 4.61% v 4.64% prior; Bid-to-cover:2.70 x v 2.90x prior
- (IT) Italy Debt Agency (Tesoro) sold €6.0B vs. €6.0B in 2014, 2015 and 2017 Bonds
- Sold €4.0B in 6.0% Nov 2014 BTPs; Avg Yield 3.41% v 4.83% prior; Bid-to-cover: 1.40x v 1.22x prior
- Sold €687M in 3.0% Nov 2015 BTPs; Avg Yield 3.77%; Bid-to-cover: 2.37x
- Sold €1.31B in 4.0% Feb 2017 BTPs; Avg Yield 4.26% v 4.93% prior; Bid-to-cover: 1.71x v 2.3x prior****Note: -
- (EU) ECB allotted €142.8B in 7-Day Main Refinancing Tender vs. €115Be
- (EU) ECB allotted €14.3B in 1-Month Tender vs. €30.0Be
- (HU) Hungary Debt Agency (AKK) sold HUF60B in 3-Month Bills; Avg yield 7.32% v 7.32% prior; Bid-to-cover: 2.52x v 2.69x prior
- (BE) Belgium Debt Agency sold total €3.2B vs. €3.0B indicated in 3-month and 12-month Bills
- Sold €1.80B in 3-month Bills; Avg Yield 0.291% v 0.506% prior; Bid-to-cover: 2.51x v 2.70x prior
- Sold €1.41B in 12-month Bills; Avg Yield 0.892% v 1.162% prior; Bid-to-cover: 2.64x v 2.06x prior
*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***
***Notes/Observations***
- Moody's downgrades 6 European sovereigns (Italy, Spain, Portugal, Slovakia, Slovenia & Malta) lowers outlook on several AAA (UK, Austria and France)
- BOJ sets an inflation target (and cranks up the printing press); Announced further easing measures (first since Oct)
- Fed's Williams (voting member): Vital to keep policy throttle wide open.
- Germany ZEW Survey registers its first positive reading since May 2011
- UK inflation data declines in Jan as expected by BOE
Equities: FTSE 100 +0.20% at 5915, DAX +0.60% at 6779, CAC-40 +0.30% at 3395, IBEX-35 +0.40% at 16,504, SMI +0.10% at 6182
- European shares traded mixed during today's session hurt by Moody's action which downgraded 6 European states, including Italy and Spain. The most worrying action for the markets is Moody's cutting UK's and France's outlook to negative from stable. However, Italy sold its debt in the indicated range. Losses were limited after Germany's ZEW increased and was a positive number, beating analysts' estimates.
- In individual names, Thyssenkrupp [TKA.DE] fell after reporting a larger than expected loss. The steel maker had already stated that Q1 EBIT would be considerably lower than last year's and was unable to give an outlook for FY12. Swedbank [SWEDA.SE] reported a lower than expected operating profit although net interest income was higher than estimates. The bank however decided to withdraw its capital targets and would decide on new ones when the situation was more stable. Among winners, MAN [MAN.DE] reported better than expected earnings.
Speakers: - China Premier Wen met key European officials in Beijing and hereiterated that China was ready to "get more involved" to help Euro debt and maintained confidence in Euro. He also hoped EU maintained its stability and prosperity and supported strengthening of fiscal discipline in Europe
- EU President Van Rompuy welcomed China's PM Wen support for Europe and noted that both regions were becoming increasingly inter-dependent. China was making progress on its CNY currency rate and rebalancing its economy. China showed "solid interest" on EFSF investment
- EU's Barroso commented from Beijing that EU was doing what was necessary to restore confidence and that the region was seeking more investment access in China
- Austria Fin Min Fekter commented that she was confident that Greece would get more help. She noted that no Austrian banks have asked for aid
- Bank of Japan Gov Shirakawa commented at his post rate decision press conference that the BOJ would not end its inflation targeting until the 1% CPI rise was in sight. He stressed that the BOJ would ensure Japan's economic recovery through its policy and that the central bank was not pressured by gov't in today's action but both did share the perspective of what is deemed as price stability. Today's decision meant buying JGBs at a faster pace
But not use JGB purchases for monetizing debt. The change in wording on prices aimed at clarifying BoJ's determination to deal with deflation.
- ZEW Economists commented after the better Feb data that the economic slowdown in Germany was unlikely to last as domestic demand expected to support economic growth. It stressed that a solution to Euro Zone crisis remained an important issue but progress with Greek creditors might have reduced uncertainty. Lastly it noted that Germany might see slight uplift in H2 2012
- ECB's Nowotny reiterated the central bank view that it did not see risk of inflation. He cautioned that Euro region needed to avoid the same fate as Japan's. The main objective was to avoid longer periods of stagnation.
- ECB's Coeure commented that the ECB should distribute profits on Greek debt to member nations who could use it to contribute to sustainability of Greek debt
- Bank of England released its inflation letter noting that inflation was falling broadly as expected and expected to hit around target of 2.0% by end of 2012. Impact of factors that pushed up inflation was now waning. CPI decline due to VAT and energy prices but cautioned that a risk of an oil shock was possible due to political tensions. Extent of CPI decline was highly uncertain with key uncertainties of wages and profit margin building. To focus on spare capacity and inflationary expectations and that the key policy outlook was the medium-term view
- France Fin Min Baroin commented on Moody's lower revision of the French sovereign outlook that the Govt will continue to seek an increase its economic growth and competitiveness. He noted that Moody's action was due to risks associated with the Euro Zone. He confirmed France 2012 GDP growth forecast of 0.5%
- Poland Fin Min Rostowski Greece's Euro exit would be less damaging at this time compared to 2011 but would pose legal obstacles. Greek default would have less impact with new EU policies because of the European Central Bank's liquidity measures. He noted that it was not clear how it would be possible for Greece to leave the euro zone under its legal system
- China State Administration of Foreign Exchange (SAFE) reiterated it stance to enhance monitoring of two-way cross-border capital flows and improve policy response to impact of capital flows.
- Turkey Econ Min Babacan commented that the country's 2011 imports came in at $240.8B and added that he was not comfortable with the level of imports
Currencies:
- The session shrugged off the initial effects of the multi-country European sovereign downgrade and revisions to AAA outlooks. The EUR/USD clawed its way from late Asian session lows of 1.3128 and moved above 1.32 handle by the NY morning following better German ZEW data and commentary of out China's Premier Wen.
- The USD/JPY was probing the upper end of its three-month range with 78.30 being the key resistance following the BOJ policy decision to set a inflation target. Some dealers noting that the continued threat of BOJ FX intervention would be more successful if enacted above the pivotal 78.30 level
- The GBP/USD recovered from its Far east session lows of 1.5686 after Moody's became the first major rating agency to cut the UK's sovereign outlook to negative. The pair was only slightly negative ahead of the NY morning at 1.5755
Political/ In the Papers:
- Portugal is to hold a fresh round of discussions with its international creditors this week before the next tranche of funds are set. Troika officials and the IMF will arrive Wednesday for a two-week review of the country. If approved, then it will be given the next tranche of €14.9B.
- The Independent looked at who could replace the current Bank of England Governor King next year when his term expires. The decision on the succession will be made by the Prime Minister, and advised by the Chancellor and the Cabinet Secretary. Note that the last two Governors were chosen from within the Bank, which places the leading internal candidate, the present deputy governor, Paul Tucker, in a strong position. Other candidates include Andy Haldane, external candidate Lord Turner, Sir John Vickers, John Varley, and former HSBC chairman Lord Green.
- The UK federation of trade unions, Trades Union Congress (TUC), released a report that finds true unemployment in the country may be as high as 6.3M, over twice the official figure of 2.68M released last month. The higher figure was found by using an American measure, which includes part-time employment due to the lack of full-time jobs, recent redundancies. TUC found that under-employment (those taking on temporary or part-time work because they cannot find permanent, full-time work) increased to 1.3M (record).
***Looking Ahead***
- (US) China Vice premier Xi Jinping will visit the White House on Feb 14th
- (IT) Italy PM Monti in Parliament
- 6:00 (BR) Brazil Dec Retail Sales M/M: 0.1%e v 1.3% prior; Y/Y: 6.0%e v 6.8% prior; Broad Retail Sales Y/Y: No est v 3.2% prior
- 6:00 (TR) Turkey to sell 10% 2013 and fixed 2022 Bonds
- 6:00 (TR) Turkey to sell 2021 Inflation Linked Bonds
- 6:30 (DE) OECD chief Gurria presents German Economic Survey in Berlin
- 7:00 (EU) ECB announces allotment in 7-Day Term Deposits to offset Govt Bond purchases
- 7:00 (IC) Iceland Jan Unemployment Rate: No est v 7.3% prior
- 7:30 (US) Jan NFIB Small Business Optimism: 95.0e v 93.8 prior
- 7:45 (US) Weekly ICSC Chain Store Sales
- 8:00 (PL) Poland Jan M3 Money Supply: -1.4%e v +3.2% prior
- 8:30 (US) Jan Import Price Index M/M: +0.3%e v -0.1% prior; Y/Y: 7.2%e v 8.5% prior - 8:30 (US) Jan Advance Retail Sales: 0.8%e v 0.1% prior; Retail Sales Less Autos: +0.5%e v -0.2% prior; Retail Sales Ex Auto & Gas: 0.5%e v 0.0% prior
- 8:45 (US) Fed's Plosser speaks on Economy in Newark, Delaware
- 8:55 (US) Weekly Redbook Retail Sales
- 9:00 (EU) Weekly ECB Forex Reserves
- 9:45 (UK) BOE to buy £1.5B in 2027-2060 Gilts in reverse auction
- 10:00 (US) Treasury Sec Geithner testifies before Senate
- 10:00 (US) Dec Business Inventories: 0.5%e v 0.3% prior
- 10:00 (MX) Mexico International Reserves w/e Feb 10th
- 10:00 (MX) Mexico Jan Vehicle Production: 211.0Ke v 180.2K prior; Vehicle Domestic Sales: No est v 115.7K prior; Vehicle Exports: No est v 171.3K prior
- 11:00 (US) Fed to purchase $4.25-5.00B in Notes
- 13:00 (US) Treasury to sell 4-Week Bills
- 16:00 (CL) Chile Central Bank Interest Rate Decision: Expected to cut the Nominal Overnight Rate Target by 13bps to 4.88%
- 16:00 (KW) South Korea Jan Export Price Index M/M: No est v 0.3% prior; Y/Y: No est v 2.5% prior
- 16:00 (KW) South Korea Jan Import Price Index M/M: No est v 0.2% prior; Y/Y: No est v 7.1% prior
- 16:30 (US) Weekly API Energy Inventories
Legal disclaimer and risk disclosure
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

TradeTheNews.com European Market Update: Spanish unemployment surges in January; China stresses that Europe must first address its structural issues before seeking outside assistance

Thursday, February 02, 2012 5:50:37 AM
 TradeTheNews.com European Market Update: Spanish unemployment surges in January; China stresses that Europe must first address its structural issues before seeking outside assistance
***Economic Data***
- (EU) ECB: €2.0B borrowed in overnight loan facility v €1.6B prior; €486.4B parked in deposit facility vs. €472.5B prior
- (BR) Brazil Jan FIPE CPI: 0.7% v 0.7%e
- (CH) Swiss Dec Trade Balance (CHF): 2.1B v 2.5Be; Real Exports real M/M: +6.1% v -4.8% prior; Real Imports M/M: +7.6% v -8.2% prior
- (ES) Spain Jan Net Unemployment M/M: 177.5K v 127.0Ke
- (HK) Hong Kong Dec Retail Sales Value Y/Y: 23.4% v 20.5%e; Retail Sales Volume Y/Y: 17.1% v 15.1%e
- (ZA) South Africa Jan Naamsa Vehicle Sales Y/Y: 7.0% v 9.8%e
- (NO) Norway Jan Unemployment Rate: 2.8% v 2.8%e
- (UK) Jan PMI Construction: 51.4 v 52.5e
- (RU) Russia Gold & Forex Reserves w/e Jan 27th: $504.0B v $499.7B prior
- EU) Euro Zone Dec PPI M/M: -0.2% v -0.1%e; Y/Y: 4.3% v 4.3%e

Fixed Income: - (ES) Spain Debt Agency (Tesoro) sold €4.55B vs. €3.5-4.5B indicated range in 2015, 2016, 2017 Bonds
- Sold €2.25B in 4.0% July 2015 Bono ; Avg Yield 2.861% v 3.384% prior; Bid-to-cover: 1.63x v 1.80x prior; Maximum Yield 2.989% v 3.576% prior
- Sells €984M in 4.25% Oct 2016 Bono; Avg Yield 3.455% v 4.029% prior; Bid-to-cover: 3.57x v 3.2x; Max Yield 3.557% v 4.050% prior
- Sold €1.05 in 3.80% Jan 2017 Bono; Avg Yield 3.565% v 5.544% prior; Bid-to-cover: 2.70x v 2.69x prior; Max Yield 3.704% v 5.560% prior
- (FR) France Debt Agency (AFT) sold approx €7.96B vs. €6.5-8.0B indicated range in 2018, 2020 and 2022 Bonds (OAT)
- Sold €1.01Bin 4.25% Oct 2018 Oat; Avg Yield 2.44% v 3.27% prior; Bid-to-cover: 4.34x v 2.92x prior
- Sold €1.25B in 2.5% 2020 Bonds; Avg Yield 2.91% v 3.64% prior; Bid-to-cover: 3.99x v 3.34x prior
- Sold €5.7B in new 3.0% April 2022 OAT; Avg Yield 3.13%; Bid-to-cover: 1.71x
- (HU) Hungary Debt Agency (AKK) sold HUF50B in 12-Month Bills; Avg Yield 7.85% v 8.19% prior; Bid-to-cover:1.97x v 1.58x prior
- (UK) DMO sold £1.25B in 0.125% I/L 2029 Gilts; Avg Yield -0.188%; Bid-to-cover:2.27 x
*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***
***Notes/Observations***
- Brazil posted its first trade deficit in 2 years in January
- Day 6 of the imminent Greek PSI deal
- Japanese officials continue verbal FX intervention
- Xstrata confirmed talks with Glencore; Rec'd approach regarding a merger of equals
- Spain Jan unemployment surges by 177K
- Spanish borrowing costs decline at 3-tranch bond auction
- China stresses that Europe must help itself first
Equities: FTSE 100 -0.20% at 5781, DAX +0.20% at 6626, CAC-40 flat at 3366, IBEX 35 at 8717, FTSE MIB -0.20% at 16,228, SMI -0.40% at 6045
- European shares erased gains during the session after drop in oil -related names offset the rally following merger talks between Xstrata and Glencore. Xstrata [XTA.UK] rallied over 12% after confirming that Glencore made an approach for a merger of equals. Glencore already owns 34% of Xstrata shares. However, overall earnings for European companies were disappointing.
- Among notable names, Shell [RSDA.NL] declined after missing its net adjusted profit. Company noted that earnings had been affected by a downturn in industry refining margins and natural gas prices. The downside move affected its peer BP. Deutsche Bank [DBK.DE] also declined after reporting a decline in the Q4 profit as trading was adversely affected by the Eurozone debt crisis. Unilever [UNA.NL] also declined after noting that expect the external macro-economic environment to remain difficult in 2012 and input cost headwinds will persist
Speakers: - China Premier Wen commented that China was considering involvement in EFSF and ESM facilities and reiterated its view that it was important to resolve the European debt crisis. Europe must rely on itself and reduce its debt load and introduce structural reforms
- German Chancellor Merkel commented from Beijing that China believed that Europe must do their 'homework' first regarding the crisis, then prepared to work for a stable euro
- Greece govt official commented that the bulk of discussions with EU/IMF/ECB Troika were basically completed but a few sticking points remain
- Germany BDB Banking Assoc President Schmitz stated that it must separate European monetary and fiscal policies to avoid a renewed crisis of confidence in the euro zone
- OECD chief Gurria commented that the ECB should purchase more bonds and contribute to cutting the Greek debt stock and cautioned that long term remedies would be doomed if the short-term issues are not addressed. He did note that Ireland's EU/IMF program was making good progress
- BoJ official Yamaguchi commented that the JPY currency has been appreciating recently although needed more time to assess market trend
- India Central Bank (RBI) Gov Subbarao commented that it needed to be unpredictable about forex interventions; Unreasonable for RBI to target inflation. He did concede that the RBI was biased toward containing inflation rather than managing growth.
- BoE's Posen commented in a radio interview that banks were not doing enough to support the economy
- Norway Fin Fin Johnsen commented that its economy was brighter compared to others but traditional exports did face challenge. He cautioned that banks must prepare for turmoil. Development in housing market were a concern as rising debt made sector 'extremely vulnerable' when interest rates go higher
- Italy minister said to have informed unions the gov't is to go ahead with labor refomrs regardless of agreement
- Moodys analyst Byrne commented that there was not much risk to Asian sovereign ratings in 2012
- S&P report noted that a Euro zone recession could end in late 2012 but the severity of recession was a 'close call'. The euro zone should gradually climb out of its mild recession in the second half of this year and into 2013. The core countries would likely lead the way back to growth, with other member countries delivering diverging performances. The S&P baseline forecast for 2012-2013 projected flat GDP growth for the euro zone as a whole in 2012 and 1% growth in 2013. S&P currently assigned a 60% probability to our baseline forecast, versus 40% for our alternative forecast of a true double dip. This would have a particularly adverse impact in countries like Spain, Portugal, and Italy.
Currencies:
- The FX markets maintained its recent ranges as the risk appetite tried to continue maintaining its recent momentum.
- The EUR/USD still had difficulty to break above the 1.32 handle and tested lower following the Spanish unemployment data. The pair probed below the 1.3130 area but did steady a bit after the Spanish and French bond auction results. Dealers did note that 2-way flows were prevalent with a plethora of option-related orders. Comments by China Premier Wen that it was considering involvement in EFSF and ESM facilities while German Chancellor Merkel visited the country on a three-day State visit. Wen did clarify that Europe must rely on itself and reduce its debt load and introduce structural reforms.
- The USD/JPY continued to hold above the 76.00 level with continued rhetoric from Japanese officials.
- The SNB still has yet to defend its 1.2000 floor in the EUR/CHF cross as speculators were performing the task for them. The cross was in the mid-1.20 area.
Political/ In the Papers:
- In an interview with the BBC, Bank of England's Posen said British banks are not doing enough to support the economy. He suggested that the banking sector needs more competition. In terms of policy, he supported the position that the UK would have been far worse without Quantitative Easing (QE).
- The Telegraph's Evans-Pritchard made note on the differences between the IMF and EU with regards to Greece. There are risks that policy makers in Greece could resist the new demands being made by the Troika officials. Both Germany and the Netherlands are opposed to giving Greece any more money, amid recent reports that Greece's second rescue package might have to be raised by €15B.
On the topic of the Bundesbank's liability related to the EU debt crisis, he added that the central bank has about €250B in liabilities related to the euro zone system. The Bundesbank has already provided €496B to countries including Greece, Ireland, Italy and Spain. A large portion of Bundesbank's liabilities are related to the ECB's 'TARGET2' automatic payments network, which deals with transactions between national central banks. According to Professor Frank Westermann of Osnabruck University, the liabilities of the Bundesbank are approaching the 'danger point'. A break-up of the EU would present large risks to the German central bank.
- In Ireland, NAMA reported only one in five loans were performing, with approximately €18.8B in arrears. Its recent quarterly report indicates 83% of the non-performing loans are four months in arrears; the agency must now either restructure these loans or move against developers through the courts. Prior to being transferred to NAMA, the value of performing loans were valued at €56.1B against the current value of €18.8B. NAMA chairman Frank Daly and chief executive Brendan McDonagh stated the number of non-performing loans was likely to continue rising.
***Looking Ahead***
- (EU) NATO Defense Min meet in Brussels
- (EU) EU Commission Rehn meets Netherland PM Rutte and Fin Min De Jager
- (CN) German Chancellor Merkel continues official China visit
- (US) US Senate banking committee vote on additional Iranian sanctions
- (US) Jan ICSC Chain Store Sales Y/Y: No est v 3.5% prior
- 6:00 (EU) EU Parliament votes on Iran nuclear ban
- 6:00 (EU) EU Parliament votes on Euro Bond resolution
- 6:00 (ZA) South Africa Dec Electricity Consumption Y/Y: No est v 0.2% prior; Electricity Production Y/Y: No est v 0.2% prior
- 7:00 (CZ) Czech Central Bank Interest Rate Decision: Expected to XXX the Repo Rate from the current 0.75% level
- 7:30 (US) Jan Challenger Job Cuts Y/Y: No est v 30.6% prior
- 8:00 (IT) Unicredit presents 2012 Economic Outlook
- 8:00 (US) Feb RBC Consumer Outlook Index: No est v 45.8 prior
- 8:00 (RO) Romania to sell Bonds
- 8:30 (US) Q4 Preliminary Nonfarm Productivity: 0.8e%e v 2.3% prior; Unit Labor Costs: +0.8%e v -2.5% prior - 8:30 (US) Initial Jobless Claims: 371Ke v 377K prior; Continuing Claims: No est v 3.554M prior
- 8:45 (US) ISM NY: No est v 51.1 prior
- 9:00 (US) Fed's Evans speaks to reporters in Chicago
- 9:00 (UK) BOE member Posen
- 9:15 (EU) EU Commissioner Rehn
- 10:00 (US) Fed Chairman Bernanke testifies before House Budget Committee
- 10:00 (DK) Denmark Jan Foreign Currency Reserves (DKK): 3.535Me v 481.7B prior
- 10:30 (US) Weekly Natural Gas Inventories
- 19:15 (US) Fed's Fisher speaks in Austin, Texas
- 20:00 (CN) China Jan Non-manufacturing PMI: no est v 56.0 prior - 21:30 (CN) China Jan HSBC Services PMI: No est v 52.5 prior
Legal disclaimer and risk disclosure
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

TradeTheNews.com European market update: Spanish unemployment rate surges in January; China stressed that Europe must first address of its structural problems before looking for help

Thursday, February 02, 2012 5:50:37 AM

 TradeTheNews.com European Market Update: Spanish unemployment surges in January; China stresses that Europe must first address its structural issues before seeking outside assistance

***Economic Data***
- (EU) ECB: €2.0B borrowed in overnight loan facility v €1.6B prior; €486.4B parked in deposit facility vs. €472.5B prior
- (BR) Brazil Jan FIPE CPI: 0.7% v 0.7%e
- (CH) Swiss Dec Trade Balance (CHF): 2.1B v 2.5Be; Real Exports real M/M: +6.1% v -4.8% prior; Real Imports M/M: +7.6% v -8.2% prior
- (ES) Spain Jan Net Unemployment M/M: 177.5K v 127.0Ke
- (HK) Hong Kong Dec Retail Sales Value Y/Y: 23.4% v 20.5%e; Retail Sales Volume Y/Y: 17.1% v 15.1%e
- (ZA) South Africa Jan Naamsa Vehicle Sales Y/Y: 7.0% v 9.8%e
- (NO) Norway Jan Unemployment Rate: 2.8% v 2.8%e
- (UK) Jan PMI Construction: 51.4 v 52.5e
- (RU) Russia Gold & Forex Reserves w/e Jan 27th: $504.0B v $499.7B prior
- EU) Euro Zone Dec PPI M/M: -0.2% v -0.1%e; Y/Y: 4.3% v 4.3%e

Fixed Income: >- (ES) Spain Debt Agency (Tesoro) sold €4.55B vs. €3.5-4.5B indicated range in 2015, 2016, 2017 Bonds
- Sold €2.25B in 4.0% July 2015 Bono ; Avg Yield 2.861% v 3.384% prior; Bid-to-cover: 1.63x v 1.80x prior; Maximum Yield 2.989% v 3.576% prior
- Sells €984M in 4.25% Oct 2016 Bono; Avg Yield 3.455% v 4.029% prior; Bid-to-cover: 3.57x v 3.2x; Max Yield 3.557% v 4.050% prior
- Sold €1.05 in 3.80% Jan 2017 Bono; Avg Yield 3.565% v 5.544% prior; Bid-to-cover: 2.70x v 2.69x prior; Max Yield 3.704% v 5.560% prior
- (FR) France Debt Agency (AFT) sold approx €7.96B vs. €6.5-8.0B indicated range in 2018, 2020 and 2022 Bonds (OAT)
- Sold €1.01Bin 4.25% Oct 2018 Oat; Avg Yield 2.44% v 3.27% prior; Bid-to-cover: 4.34x v 2.92x prior
- Sold €1.25B in 2.5% 2020 Bonds; Avg Yield 2.91% v 3.64% prior; Bid-to-cover: 3.99x v 3.34x prior
- Sold €5.7B in new 3.0% April 2022 OAT; Avg Yield 3.13%; Bid-to-cover: 1.71x
- (HU) Hungary Debt Agency (AKK) sold HUF50B in 12-Month Bills; Avg Yield 7.85% v 8.19% prior; Bid-to-cover:1.97x v 1.58x prior
- (UK) DMO sold £1.25B in 0.125% I/L 2029 Gilts; Avg Yield -0.188%; Bid-to-cover:2.27 x

*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***
***Notes/Observations***
- Brazil posted its first trade deficit in 2 years in January
- Day 6 of the imminent Greek PSI deal
- Japanese officials continue verbal FX intervention
- Xstrata confirmed talks with Glencore; Rec'd approach regarding a merger of equals
- Spain Jan unemployment surges by 177K
- Spanish borrowing costs decline at 3-tranch bond auction
- China stresses that Europe must help itself first

Equities: >FTSE 100 -0.20% at 5781, DAX +0.20% at 6626, CAC-40 flat at 3366, IBEX 35 at 8717, FTSE MIB -0.20% at 16,228, SMI -0.40% at 6045

- European shares erased gains during the session after drop in oil -related names offset the rally following merger talks between Xstrata and Glencore. Xstrata [XTA.UK] rallied over 12% after confirming that Glencore made an approach for a merger of equals. Glencore already owns 34% of Xstrata shares. However, overall earnings for European companies were disappointing.
- Among notable names, Shell [RSDA.NL] declined after missing its net adjusted profit. Company noted that earnings had been affected by a downturn in industry refining margins and natural gas prices. The downside move affected its peer BP. Deutsche Bank [DBK.DE] also declined after reporting a decline in the Q4 profit as trading was adversely affected by the Eurozone debt crisis. Unilever [UNA.NL] also declined after noting that expect the external macro-economic environment to remain difficult in 2012 and input cost headwinds will persist

Speakers: >- China Premier Wen commented that China was considering involvement in EFSF and ESM facilities and reiterated its view that it was important to resolve the European debt crisis. Europe must rely on itself and reduce its debt load and introduce structural reforms
- German Chancellor Merkel commented from Beijing that China believed that Europe must do their 'homework' first regarding the crisis, then prepared to work for a stable euro
- Greece govt official commented that the bulk of discussions with EU/IMF/ECB Troika were basically completed but a few sticking points remain
- Germany BDB Banking Assoc President Schmitz stated that it must separate European monetary and fiscal policies to avoid a renewed crisis of confidence in the euro zone
- OECD chief Gurria commented that the ECB should purchase more bonds and contribute to cutting the Greek debt stock and cautioned that long term remedies would be doomed if the short-term issues are not addressed. He did note that Ireland's EU/IMF program was making good progress
- BoJ official Yamaguchi commented that the JPY currency has been appreciating recently although needed more time to assess market trend
- India Central Bank (RBI) Gov Subbarao commented that it needed to be unpredictable about forex interventions; Unreasonable for RBI to target inflation. He did concede that the RBI was biased toward containing inflation rather than managing growth.
- BoE's Posen commented in a radio interview that banks were not doing enough to support the economy
- Norway Fin Fin Johnsen commented that its economy was brighter compared to others but traditional exports did face challenge. He cautioned that banks must prepare for turmoil. Development in housing market were a concern as rising debt made sector 'extremely vulnerable' when interest rates go higher
- Italy minister said to have informed unions the gov't is to go ahead with labor refomrs regardless of agreement
- Moodys analyst Byrne commented that there was not much risk to Asian sovereign ratings in 2012
- S&P report noted that a Euro zone recession could end in late 2012 but the severity of recession was a 'close call'. The euro zone should gradually climb out of its mild recession in the second half of this year and into 2013. The core countries would likely lead the way back to growth, with other member countries delivering diverging performances. The S&P baseline forecast for 2012-2013 projected flat GDP growth for the euro zone as a whole in 2012 and 1% growth in 2013. S&P currently assigned a 60% probability to our baseline forecast, versus 40% for our alternative forecast of a true double dip. This would have a particularly adverse impact in countries like Spain, Portugal, and Italy.

Currencies:
- The FX markets maintained its recent ranges as the risk appetite tried to continue maintaining its recent momentum.
- The EUR/USD still had difficulty to break above the 1.32 handle and tested lower following the Spanish unemployment data. The pair probed below the 1.3130 area but did steady a bit after the Spanish and French bond auction results. Dealers did note that 2-way flows were prevalent with a plethora of option-related orders. Comments by China Premier Wen that it was considering involvement in EFSF and ESM facilities while German Chancellor Merkel visited the country on a three-day State visit. Wen did clarify that Europe must rely on itself and reduce its debt load and introduce structural reforms.
- The USD/JPY continued to hold above the 76.00 level with continued rhetoric from Japanese officials.
- The SNB still has yet to defend its 1.2000 floor in the EUR/CHF cross as speculators were performing the task for them. The cross was in the mid-1.20 area.

Political/ In the Papers:
- In an interview with the BBC, Bank of England's Posen said British banks are not doing enough to support the economy. He suggested that the banking sector needs more competition. In terms of policy, he supported the position that the UK would have been far worse without Quantitative Easing (QE).
- The Telegraph's Evans-Pritchard made note on the differences between the IMF and EU with regards to Greece. There are risks that policy makers in Greece could resist the new demands being made by the Troika officials. Both Germany and the Netherlands are opposed to giving Greece any more money, amid recent reports that Greece's second rescue package might have to be raised by €15B.
On the topic of the Bundesbank's liability related to the EU debt crisis, he added that the central bank has about €250B in liabilities related to the euro zone system. The Bundesbank has already provided €496B to countries including Greece, Ireland, Italy and Spain. A large portion of Bundesbank's liabilities are related to the ECB's 'TARGET2' automatic payments network, which deals with transactions between national central banks. According to Professor Frank Westermann of Osnabruck University, the liabilities of the Bundesbank are approaching the 'danger point'. A break-up of the EU would present large risks to the German central bank.
- In Ireland, NAMA reported only one in five loans were performing, with approximately €18.8B in arrears. Its recent quarterly report indicates 83% of the non-performing loans are four months in arrears; the agency must now either restructure these loans or move against developers through the courts. Prior to being transferred to NAMA, the value of performing loans were valued at €56.1B against the current value of €18.8B. NAMA chairman Frank Daly and chief executive Brendan McDonagh stated the number of non-performing loans was likely to continue rising.

***Looking Ahead***
- (EU) NATO Defense Min meet in Brussels
- (EU) EU Commission Rehn meets Netherland PM Rutte and Fin Min De Jager
- (CN) German Chancellor Merkel continues official China visit
- (US) US Senate banking committee vote on additional Iranian sanctions
- (US) Jan ICSC Chain Store Sales Y/Y: No est v 3.5% prior
- 6:00 (EU) EU Parliament votes on Iran nuclear ban
- 6:00 (EU) EU Parliament votes on Euro Bond resolution
- 6:00 (ZA) South Africa Dec Electricity Consumption Y/Y: No est v 0.2% prior; Electricity Production Y/Y: No est v 0.2% prior
- 7:00 (CZ) Czech Central Bank Interest Rate Decision: Expected to XXX the Repo Rate from the current 0.75% level
- 7:30 (US) Jan Challenger Job Cuts Y/Y: No est v 30.6% prior
- 8:00 (IT) Unicredit presents 2012 Economic Outlook
- 8:00 (US) Feb RBC Consumer Outlook Index: No est v 45.8 prior
- 8:00 (RO) Romania to sell Bonds
- 8:30 (US) Q4 Preliminary Nonfarm Productivity: 0.8e%e v 2.3% prior; Unit Labor Costs: +0.8%e v -2.5% prior >- 8:30 (US) Initial Jobless Claims: 371Ke v 377K prior; Continuing Claims: No est v 3.554M prior
- 8:45 (US) ISM NY: No est v 51.1 prior
- 9:00 (US) Fed's Evans speaks to reporters in Chicago
- 9:00 (UK) BOE member Posen
- 9:15 (EU) EU Commissioner Rehn
- 10:00 (US) Fed Chairman Bernanke testifies before House Budget Committee
- 10:00 (DK) Denmark Jan Foreign Currency Reserves (DKK): 3.535Me v 481.7B prior
- 10:30 (US) Weekly Natural Gas Inventories
- 19:15 (US) Fed's Fisher speaks in Austin, Texas
- 20:00 (CN) China Jan Non-manufacturing PMI: no est v 56.0 prior >- 21:30 (CN) China Jan HSBC Services PMI: No est v 52.5 prior

Legal disclaimer and risk disclosure

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Daily Forex Market News
Forex news reports can be found on the forex research headlines page below. Here you will find real-time forex market news reports provided by respected contributors of currency trading information. Daily forex market news, weekly forex research and monthly forex news features can be found here.

Forex News
Real-time forex market news reports and features providing other currency trading information can be accessed by clicking on any of the headlines below. At the top of the forex blog page you will find the latest forex trading information. Scroll down the page if you are looking for less recent currency trading information. Scroll to the bottom of fx blog headlines and click on the link for past reports on forex. Currency world news reports from previous years can be found on the left sidebar under "FX Archives."

 

TradeTheNews.com Asian Market Update: Japan sees first trade deficit in more

- (JP) JAPAN DEC MERCHANDISE TRADE BALANCE: -¥205B V -¥170BE; ADJUSTED TRADE BALANCE: -¥568B V -¥385BE (multi-year low); 2011 Trade deficit ¥2.49T (1st deficit since 1980)
- (AU) AUSTRALIA Q4 CONSUMER PRICES Q/Q: 0.0% V 0.2%E (3-year low); Y/Y: 3.1% V 3.3%E
- (AU) AUSTRALIA Q4 RBA TRIMMED MEAN Q/Q: 0.6% V 0.5%E; Y/Y: 2.6% V 2.4%E
- (NZ) NEW ZEALAND DEC MANUFACTURING PMI 51.9 V 46.0 PRIOR (4-month high)
- (SG) SINGAPORE DEC CPI M/M: 0.0% V 0.1%E; Y/Y: 5.5% V 5.5%E
- (JP) BANK OF JAPAN (BOJ) JAN MONTHLY ECONOMIC REPORT: EXPORTS AND PRODUCTION TO STAY FLAT FOR THE TIME BEING
- (NZ) NEW ZEALAND DEC CREDIT CARD SPENDING M/M: 0.9% V -3.4% PRIOR; Y/Y: 5.9% V 3.2% PRIOR
- (PH) PHILIPPINES NOV TRADE BALANCE: -$1.6B V -$932M PRIOR; IMPORTS Y/Y: 0.6% V 2.3% PRIOR
- (AU) AUSTRALIA NOV WESTPAC LEADING INDEX M/M: -0.2% V +0.1% PRIOR
- (AU) AUSTRALIA DEC DEWR INTERNET SKILLED VACANCIES: -1.1% V -1.0% PRIOR (6th consecutive decline)

***Markets Snapshot (as of 05:30GMT)***
- Nikkei225 +1.2%
- S&P/ASX +1.1%
- Kospi +0.1%
- Taiwan Taiex closed
- Singapore Straits Times +0.9%
- Shanghai Composite closed
- Hang Seng closed
- S&P Futures +0.3 at 1,315
- Feb Gold +0.1% at $1,666/oz
- March Crude +0.1% at $99.04

***Overview/Top Headlines***
- US equity index futures and the open Asian equity indices all gained today. After the close Apple beat expectations, recording record sales of iPhones and iPads, this is sure to boost Taiwan names like Hon Hai (2317.TW) when the Taiex reopens; Korea's Hynix gained over 2% (will report this week). Tokyo stocks ended the morning session at a three-month high, as the USD/JPY tested a 4-week high above ¥77.85 and had similar movement against the euro. This encouraged investors to buy exporters on the back of Japan's 2011 trade deficit of ¥2.49T, the first in 31-years. Japan MoF Official attributed the decline in 2011 exports to the earthquake, strong yen and weak overseas demand. Traders are looking ahead to the FOMC meeting and rate decision. Australia 10-yr yield rose 8bps after the Q4 RBA trimmed mean (an inflation measure) came in ahead of estimates. Treasurer Swan assured the markets that underlying inflation had moderated and well contained in the RBA target. Q4 CPI in Australia was at a 3-year low q/q with a flat reading y/y also disappointed forecasts coming in at 3.1% v 3.3% expected. London copper tested a 4-month high, silver tested $32.24. Elsewhere business and political leaders are gathering in Davos Switzerland for their annual trek to the World Economic Forum.

***Speakers/Geopolitical/In the press***
- (AU) Australian banking regulator (APRA) has been told by the IMF to conduct more stringent stress tests on its banks in order to make sure they could withstand another global financial crisis - The Australian
- (JP) Japan govt officials already considering raising consumption tax beyond the 10% proposed by PM Noda - Nikkei News
- (PH) Philippines Econ official: Sees Q4 GDP growth at 3.2-5.0% y/y; 2011 growth 3.6-4.0% y/y
- (AU) Commonwealth Bank chief currency strategist Grace: "There's no hindrance for the RBA to cut rates from an inflation point of view because inflation is coming down" - SMH

***Equities***
- TM: Reports 2011 global sales 7.95M units; Raises FY12/13 Japan sales forecast to 1.63M units from 1.53M prior, +36% y/y
- WHC.AU: Reports Dec quarter production 1.11MT v 1.09MT y/y
- PBG.AU: Talks with KKR are continuing but still in very early stages; Institutional investors expressing some doubts that KKR is serious - The Australian
- Yahoo Japan, 4689.JP: Reports 9-month Net ¥73B v ¥67.8B y/y, Op Profit ¥121B v ¥117.2B y/y, Rev ¥222B v ¥216.6B y/y

***US Equities***
- CA: Reports Q3 $0.65 v $0.54e, R$1.26B v $1.2Be; increases share buyback program to $1.5B (13% of market cap); discloses increased quarterly dividend to $0.25/shr from $0.05/shr; +15% afterhours
- AAPL: Reports Q1 $13.87 v $10.10e, R$46.33B v $39Be; +7.3% afterhours
- STLD: Reports Q4 $0.14 v $0.11e, R$1.86B v $1.9Be; +1.9% afterhours
- YHOO: Reports Q4 $0.25 v $0.24e, R$1.17B (ex-TAC) v $1.2Be; -0.9% afterhours
- NSC: Reports Q4 $1.42 v $1.40e, R$2.80B v $2.8Be; -2.6% afterhours
- ALTR: Reports Q4 $0.45 v $0.42e, R$458M v $448Me; -1.7% afterhours
- AMD: Reports Q4 $0.19 v $0.16e, R$1.69B v $1.7Be; -2.9% afterhours
- NVDA: Lowers Q4 Rev guidance to $950M +/- 1% v $1.06Be (Nov 10th guided Rev -2 to +2% q/q, implies $1.05-1.09B); -4.0% afterhours

***FX/Fixed Income/Commodities***
- (JP) Japan Steel Body: Expects 2012 crude steel output to decline y/y by 2-3M tons on weak domestic demand, exports (implies 104.6-105.6M tons vs. 107.6M y/y)
- (KR) South Korea Govt sells KRW908B in 20-yr bonds at 3.96% v 3.94% on Aug 21st

Daily Forex Market News
Forex news reports can be found on the forex research headlines page below. Here you will find real-time forex market news reports provided by respected contributors of currency trading information. Daily forex market news, weekly forex research and monthly forex news features can be found here.

Forex News
Real-time forex market news reports and features providing other currency trading information can be accessed by clicking on any of the headlines below. At the top of the forex blog page you will find the latest forex trading information. Scroll down the page if you are looking for less recent currency trading information. Scroll to the bottom of fx blog headlines and click on the link for past reports on forex. Currency world news reports from previous years can be found on the left sidebar under "FX Archives."

 

TradeTheNews.com Asian Market Update: Japan sees first trade deficit in more

- (JP) JAPAN DEC MERCHANDISE TRADE BALANCE: -¥205B V -¥170BE; ADJUSTED TRADE BALANCE: -¥568B V -¥385BE (multi-year low); 2011 Trade deficit ¥2.49T (1st deficit since 1980)
- (AU) AUSTRALIA Q4 CONSUMER PRICES Q/Q: 0.0% V 0.2%E (3-year low); Y/Y: 3.1% V 3.3%E
- (AU) AUSTRALIA Q4 RBA TRIMMED MEAN Q/Q: 0.6% V 0.5%E; Y/Y: 2.6% V 2.4%E
- (NZ) NEW ZEALAND DEC MANUFACTURING PMI 51.9 V 46.0 PRIOR (4-month high)
- (SG) SINGAPORE DEC CPI M/M: 0.0% V 0.1%E; Y/Y: 5.5% V 5.5%E
- (JP) BANK OF JAPAN (BOJ) JAN MONTHLY ECONOMIC REPORT: EXPORTS AND PRODUCTION TO STAY FLAT FOR THE TIME BEING
- (NZ) NEW ZEALAND DEC CREDIT CARD SPENDING M/M: 0.9% V -3.4% PRIOR; Y/Y: 5.9% V 3.2% PRIOR
- (PH) PHILIPPINES NOV TRADE BALANCE: -$1.6B V -$932M PRIOR; IMPORTS Y/Y: 0.6% V 2.3% PRIOR
- (AU) AUSTRALIA NOV WESTPAC LEADING INDEX M/M: -0.2% V +0.1% PRIOR
- (AU) AUSTRALIA DEC DEWR INTERNET SKILLED VACANCIES: -1.1% V -1.0% PRIOR (6th consecutive decline)
***Markets Snapshot (as of 05:30GMT)***
- Nikkei225 +1.2%
- S&P/ASX +1.1%
- Kospi +0.1%
- Taiwan Taiex closed
- Singapore Straits Times +0.9%
- Shanghai Composite closed
- Hang Seng closed
- S&P Futures +0.3 at 1,315
- Feb Gold +0.1% at $1,666/oz
- March Crude +0.1% at $99.04
***Overview/Top Headlines***
- US equity index futures and the open Asian equity indices all gained today. After the close Apple beat expectations, recording record sales of iPhones and iPads, this is sure to boost Taiwan names like Hon Hai (2317.TW) when the Taiex reopens; Korea's Hynix gained over 2% (will report this week). Tokyo stocks ended the morning session at a three-month high, as the USD/JPY tested a 4-week high above ¥77.85 and had similar movement against the euro. This encouraged investors to buy exporters on the back of Japan's 2011 trade deficit of ¥2.49T, the first in 31-years. Japan MoF Official attributed the decline in 2011 exports to the earthquake, strong yen and weak overseas demand. Traders are looking ahead to the FOMC meeting and rate decision. Australia 10-yr yield rose 8bps after the Q4 RBA trimmed mean (an inflation measure) came in ahead of estimates. Treasurer Swan assured the markets that underlying inflation had moderated and well contained in the RBA target. Q4 CPI in Australia was at a 3-year low q/q with a flat reading y/y also disappointed forecasts coming in at 3.1% v 3.3% expected. London copper tested a 4-month high, silver tested $32.24. Elsewhere business and political leaders are gathering in Davos Switzerland for their annual trek to the World Economic Forum.
***Speakers/Geopolitical/In the press***
- (AU) Australian banking regulator (APRA) has been told by the IMF to conduct more stringent stress tests on its banks in order to make sure they could withstand another global financial crisis - The Australian
- (JP) Japan govt officials already considering raising consumption tax beyond the 10% proposed by PM Noda - Nikkei News
- (PH) Philippines Econ official: Sees Q4 GDP growth at 3.2-5.0% y/y; 2011 growth 3.6-4.0% y/y
- (AU) Commonwealth Bank chief currency strategist Grace: "There's no hindrance for the RBA to cut rates from an inflation point of view because inflation is coming down" - SMH
***Equities***
- TM: Reports 2011 global sales 7.95M units; Raises FY12/13 Japan sales forecast to 1.63M units from 1.53M prior, +36% y/y
- WHC.AU: Reports Dec quarter production 1.11MT v 1.09MT y/y
- PBG.AU: Talks with KKR are continuing but still in very early stages; Institutional investors expressing some doubts that KKR is serious - The Australian
- Yahoo Japan, 4689.JP: Reports 9-month Net ¥73B v ¥67.8B y/y, Op Profit ¥121B v ¥117.2B y/y, Rev ¥222B v ¥216.6B y/y
***US Equities***
- CA: Reports Q3 $0.65 v $0.54e, R$1.26B v $1.2Be; increases share buyback program to $1.5B (13% of market cap); discloses increased quarterly dividend to $0.25/shr from $0.05/shr; +15% afterhours
- AAPL: Reports Q1 $13.87 v $10.10e, R$46.33B v $39Be; +7.3% afterhours
- STLD: Reports Q4 $0.14 v $0.11e, R$1.86B v $1.9Be; +1.9% afterhours
- YHOO: Reports Q4 $0.25 v $0.24e, R$1.17B (ex-TAC) v $1.2Be; -0.9% afterhours
- NSC: Reports Q4 $1.42 v $1.40e, R$2.80B v $2.8Be; -2.6% afterhours
- ALTR: Reports Q4 $0.45 v $0.42e, R$458M v $448Me; -1.7% afterhours
- AMD: Reports Q4 $0.19 v $0.16e, R$1.69B v $1.7Be; -2.9% afterhours
- NVDA: Lowers Q4 Rev guidance to $950M +/- 1% v $1.06Be (Nov 10th guided Rev -2 to +2% q/q, implies $1.05-1.09B); -4.0% afterhours
***FX/Fixed Income/Commodities***
- (JP) Japan Steel Body: Expects 2012 crude steel output to decline y/y by 2-3M tons on weak domestic demand, exports (implies 104.6-105.6M tons vs. 107.6M y/y)
- (KR) South Korea Govt sells KRW908B in 20-yr bonds at 3.96% v 3.94% on Aug 21st

Asian Market Update: Japan sees first trade deficit in more

- (JP) JAPAN DEC MERCHANDISE TRADE BALANCE: -¥205B V -¥170BE; ADJUSTED TRADE BALANCE: -¥568B V -¥385BE (multi-year low); 2011 Trade deficit ¥2.49T (1st deficit since 1980)
- (AU) AUSTRALIA Q4 CONSUMER PRICES Q/Q: 0.0% V 0.2%E (3-year low); Y/Y: 3.1% V 3.3%E
- (AU) AUSTRALIA Q4 RBA TRIMMED MEAN Q/Q: 0.6% V 0.5%E; Y/Y: 2.6% V 2.4%E
- (NZ) NEW ZEALAND DEC MANUFACTURING PMI 51.9 V 46.0 PRIOR (4-month high)
- (SG) SINGAPORE DEC CPI M/M: 0.0% V 0.1%E; Y/Y: 5.5% V 5.5%E
- (JP) BANK OF JAPAN (BOJ) JAN MONTHLY ECONOMIC REPORT: EXPORTS AND PRODUCTION TO STAY FLAT FOR THE TIME BEING
- (NZ) NEW ZEALAND DEC CREDIT CARD SPENDING M/M: 0.9% V -3.4% PRIOR; Y/Y: 5.9% V 3.2% PRIOR
- (PH) PHILIPPINES NOV TRADE BALANCE: -$1.6B V -$932M PRIOR; IMPORTS Y/Y: 0.6% V 2.3% PRIOR
- (AU) AUSTRALIA NOV WESTPAC LEADING INDEX M/M: -0.2% V +0.1% PRIOR
- (AU) AUSTRALIA DEC DEWR INTERNET SKILLED VACANCIES: -1.1% V -1.0% PRIOR (6th consecutive decline)
***Markets Snapshot (as of 05:30GMT)***
- Nikkei225 +1.2%
- S&P/ASX +1.1%
- Kospi +0.1%
- Taiwan Taiex closed
- Singapore Straits Times +0.9%
- Shanghai Composite closed
- Hang Seng closed
- S&P Futures +0.3 at 1,315
- Feb Gold +0.1% at $1,666/oz
- March Crude +0.1% at $99.04
***Overview/Top Headlines***
- US equity index futures and the open Asian equity indices all gained today. After the close Apple beat expectations, recording record sales of iPhones and iPads, this is sure to boost Taiwan names like Hon Hai (2317.TW) when the Taiex reopens; Korea's Hynix gained over 2% (will report this week). Tokyo stocks ended the morning session at a three-month high, as the USD/JPY tested a 4-week high above ¥77.85 and had similar movement against the euro. This encouraged investors to buy exporters on the back of Japan's 2011 trade deficit of ¥2.49T, the first in 31-years. Japan MoF Official attributed the decline in 2011 exports to the earthquake, strong yen and weak overseas demand. Traders are looking ahead to the FOMC meeting and rate decision. Australia 10-yr yield rose 8bps after the Q4 RBA trimmed mean (an inflation measure) came in ahead of estimates. Treasurer Swan assured the markets that underlying inflation had moderated and well contained in the RBA target. Q4 CPI in Australia was at a 3-year low q/q with a flat reading y/y also disappointed forecasts coming in at 3.1% v 3.3% expected. London copper tested a 4-month high, silver tested $32.24. Elsewhere business and political leaders are gathering in Davos Switzerland for their annual trek to the World Economic Forum.
***Speakers/Geopolitical/In the press***
- (AU) Australian banking regulator (APRA) has been told by the IMF to conduct more stringent stress tests on its banks in order to make sure they could withstand another global financial crisis - The Australian
- (JP) Japan govt officials already considering raising consumption tax beyond the 10% proposed by PM Noda - Nikkei News
- (PH) Philippines Econ official: Sees Q4 GDP growth at 3.2-5.0% y/y; 2011 growth 3.6-4.0% y/y
- (AU) Commonwealth Bank chief currency strategist Grace: "There's no hindrance for the RBA to cut rates from an inflation point of view because inflation is coming down" - SMH
***Equities***
- TM: Reports 2011 global sales 7.95M units; Raises FY12/13 Japan sales forecast to 1.63M units from 1.53M prior, +36% y/y
- WHC.AU: Reports Dec quarter production 1.11MT v 1.09MT y/y
- PBG.AU: Talks with KKR are continuing but still in very early stages; Institutional investors expressing some doubts that KKR is serious - The Australian
- Yahoo Japan, 4689.JP: Reports 9-month Net ¥73B v ¥67.8B y/y, Op Profit ¥121B v ¥117.2B y/y, Rev ¥222B v ¥216.6B y/y
***US Equities***
- CA: Reports Q3 $0.65 v $0.54e, R$1.26B v $1.2Be; increases share buyback program to $1.5B (13% of market cap); discloses increased quarterly dividend to $0.25/shr from $0.05/shr; +15% afterhours
- AAPL: Reports Q1 $13.87 v $10.10e, R$46.33B v $39Be; +7.3% afterhours
- STLD: Reports Q4 $0.14 v $0.11e, R$1.86B v $1.9Be; +1.9% afterhours
- YHOO: Reports Q4 $0.25 v $0.24e, R$1.17B (ex-TAC) v $1.2Be; -0.9% afterhours
- NSC: Reports Q4 $1.42 v $1.40e, R$2.80B v $2.8Be; -2.6% afterhours
- ALTR: Reports Q4 $0.45 v $0.42e, R$458M v $448Me; -1.7% afterhours
- AMD: Reports Q4 $0.19 v $0.16e, R$1.69B v $1.7Be; -2.9% afterhours
- NVDA: Lowers Q4 Rev guidance to $950M +/- 1% v $1.06Be (Nov 10th guided Rev -2 to +2% q/q, implies $1.05-1.09B); -4.0% afterhours
***FX/Fixed Income/Commodities***
- (JP) Japan Steel Body: Expects 2012 crude steel output to decline y/y by 2-3M tons on weak domestic demand, exports (implies 104.6-105.6M tons vs. 107.6M y/y)
- (KR) South Korea Govt sells KRW908B in 20-yr bonds at 3.96% v 3.94% on Aug 21st