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[IFX Yana]

European Economics Preview: French, Spanish Bond Auctions Due

The French government is set to enter the primary debt market for the second time this week on Thursday after it lost the top notch 'AAA' rating.
Statistics Netherlands is scheduled to release consumer confidence and unemployment data at 3.30 am ET. The consumer confidence index is forecast to improve to -34 in January from -37 in December. The jobless rate is seen at 5.9 percent in December.
At 4.00 am ET, the European Central Bank is slated to publish monthly report. In the meantime, euro area's current account figures are due. The current account surplus is forecast to fall to zero from EUR 1.7 billion in October.
Spain and France will be in the market with their first bond auctions since the S&P rating downgrade last week. The countries are set to test the market after Portugal and Germany held successful auctions on Wednesday, raising a total EUR 5.939 billion.
The Spanish Treasury is set to sell longer-term debt at 4.30 am ET. The treasury will auction bonds maturing in 2016, 2019 and 2022 to raise between EUR 3.5 billion and EUR 4.5 billion. Later on, the Agence France Tresor will auction up to EUR 9.5 billion of French medium and longer term bonds in two auctions at 4.50 am ET and 5.50 am ET, respectively.
At the start of the week, France held a successful auction of its treasury bills, which saw the country's 1-year borrowing costs fall. Spanish debt yields also declined at a treasury bills auction on Tuesday. The countries raised a total EUR 13.47 billion from the auctions as markets shrugged of the news of the S&P downgrade.
Ireland's consumer prices are due from the Central Statistics Office at 6.00 am ET. Economists forecast annual inflation to slow to 2.7 percent from 2.9 percent in November. EU harmonized inflation is seen at 1.3 percent, down from 1.7 percent a month ago.
Poland's industrial output and producer prices are due at 8.00 am ET. Economists forecast industrial production growth to fall 6.2 percent annually in December from 8.7 percent in November. Producer price inflation is seen easing to 8.3 percent in December from 8.9 percent.

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[IFX Yana]

Moody's Says Likely To Cut Ratings Of Big Banks

Moody's Investors Service warned Thursday that it will likely downgrade the ratings on a number of rated banks globally, as several trends including deteriorating sovereign creditworthiness and high economic uncertainty have weakened the lenders' credit profiles.
Moody's said that most European banks are vulnerable to the euro area debt crisis, while global capital market intermediaries face macroeconomic uncertainty, low growth and severe market volatility.
Moody's Global Banking Managing Director Greg Bauer said that the expected decline of bank ratings reflects the acceleration of interrelated pressures on the banking sector since the second half of 2011. "These pressures most immediately affect global capital markets intermediaries and European banks," Bauer said.
"Deteriorating sovereign creditworthiness, particularly in the euro area; elevated economic uncertainty; and elevated funding spreads and reduced market access at a time when many banks face large debt maturities," are the main factors that puts the ratings of several banks' under pressure, according the rating agency.
In advanced economies, these factors are expected to lead to many banks experiencing downward migration of their standalone credit assessments and their debt and deposit ratings in 2012.
Moody's said it may place the ratings of a number of global investment banks and European banks under review for downgrade during first-quarter 2012.

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[IFX Yana]

Economic Disparities Between UK Cities Growing: Report

The economic gap between UK cities are widening, while they continued to face the impact of the economic downturn, research group Center for Cities said in a report on Monday.
However, despite the sombre national forecast, there will be glimmers of growth from some cities this year, Cities Outlook, published in co-ordination with IBM and the LGA, said.
The gap in the claimant count rate between Hull and Cambridge widened to 6.1 percentage points in November 2011 from 3.2 percentage points in February 2008, the report noted.
The report also highlighted that there are six times more claimants in the most troubled neighborhood in Rochdale than there are in the most troubled neighborhood in Cambridge.
Centre for Cities called on the Government to invest in those cities that are primed for growth. As these cities grow and create jobs, they will drive the national recovery. Cities that are facing more entrenched challenges will require different solutions and support from Government to give residents the skills needed to find jobs and start businesses, it said.
Centre for Cities Chief Executive Alexandra Jones said "the year ahead is going to be tough for all UK cities but Cities Outlook 2012 shows that some cities are well-placed to kick-start economic growth."
Cities like Milton Keynes and Aberdeen are well placed to drive the national economic recovery in this difficult economic climate, the report noted.

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[IFX Yana]

EUR/USD On Correction Mode At Key Levels

EUR/USD's overnight rally was briefly corrected in the early Asian session but the pair managed to hold above its 23.6 percent retracement level between a high on October 27, 2011 and a low on January 13.
The euro advanced yesterday as German bill auction attracted solid demand, selling EUR 2.54 billion of 12-month bills at an average yield of 0.07 percent. However, caution on Greece pressured the pair to trim gains in early Asian deals on Tuesday, hitting as low as 1.2989. Subsequently, the pair reverted to above yesterday's closing value of 1.3016 ahead of the European session.
The pair is presently hovering around the 1.3025 area and the immediate barrier could be at its 50-day SMA of 1.3110. A move above this level could position to pair to test the 38.2 percent retracement level at 1.3250.
PMI data from major eurozone economies and Spanish short-term bill auctions would be the key drivers for the common currency in the London session. Eurostat's industrial new orders report for November is also set to garner some market attraction.

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[IFX Yana]

European Economics Preview: German Ifo Business Confidence, U.K. GDP Data Due

A slew of statistical reports are scheduled to be released on Wednesday, headlining a hectic day ahead. Business confidence data from Germany and quarterly national account figures from the U.K. are set to dominate the scene.
At 3.00 am ET, Spain's statistical office INE is set to issue producer price figures for December. Economists forecast producer price inflation to ease to 5.2 percent from 6.3 percent in November.
Hungary's retail sales figures are also due at 3.00 am ET. Retail sales are forecast to fall 0.1 percent annually in November after rising 0.6 percent in October.
German Ifo business confidence survey results are due at 4.00 am ET. Business confidence is seen rising to 107.6 in January from 107.2 in December. Likewise, the current conditions index is expected to rise to 116.8 from 116.7 a month ago.
Italy's retail sales figures are also due at the same time. Economists forecast retail sales to fall 0.2 percent month-on-month in November after rising 0.1 percent in October.
First estimates for the U.K. GDP is due from the Office for National Statistics at 4.30 am ET. The economy is forecast to shrink 0.1 percent sequentially in the fourth quarter, following the 0.6 percent expansion in the fourth quarter of 2011.
In the meantime, the Bank of England is set to publish the minutes of the January monetary policy meeting. The bank has left the size of quantitative easing unchanged at GBP 275 billion and its interest rate at a historic low of 0.50 percent.
Germany is set to step into the debt market today with an issue of 30-year bonds. The government aims to raise EUR 3 billion from the current auction.
The Confederation of British Industry is scheduled to issue Industrial Trends survey data at 6.00 am ET. The total order book balance is expected remain unchanged at -23 percent in January.

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[IFX Yana]

Euro Zone Fire Walls are Strong Enough, No Boost needed says Germany's Schaeuble

News
European fire walls are high and strong enough currently and doesn't require any strengthening said German Fin min Schaeuble. He said that only 43.7 bln euors of total 440 bln has been used and it is not prudent to call for raising walls with every new beat of information
Quotes
"What speaks against this discussion (to boost the volume) is the that we shouldn't be chasing after the latest fad every week,"
"Everything at the moment suggests that the rescue measures are sufficient,"
German Finance Minister Wolfgang Schaeuble

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[IFX Yana]

European Economics Preview: Eurozone Economic Sentiment Data Due

Economic confidence data from Eurozone and preliminary inflation figures from Germany are the major statistical reports due on Monday, headlining a light day for the European economic news.
At 2.00 am ET, Germany's Federal Statistical Office is scheduled to issue wholesale turnover figures for the fourth quarter and 2011.
Spain's statistical office INE is slated to release GDP figures for the fourth quarter at 3.00 am ET. According to the estimates of the Bank of Spain, the economy shrank 0.3 percent sequentially in the fourth quarter.
The Italian government is set to hold a debt auction at 5.00 am ET. It aims to raise up to EUR 8 billion. Late Friday, Fitch downgraded Spain's long-term debt rating to 'A' from 'AA-'.
The auction includes bonds maturing on March 2022 and other two maturing on April 2016 and March 2021. A new bond maturing in May 2017 is also slated for the day.
The European Commission is set to publish monthly economic sentiment survey results at 5.00 am ET. Eurozone economic confidence is seen rising to 93.8 in January from 93.3 in December. Likewise, business sentiment is forecast to improve to -0.25 from -0.31 a month ago.
Germany's preliminary inflation figures for January are due later today. Economists forecast harmonized annual inflation to rise to 2.4 percent in January from 2.3 percent in December. On a monthly basis, the harmonized index of consumer prices is forecast to drop 0.4 percent.
EU leaders and finance ministers are set to meet in Brussels today. The informal meeting will discuss the steps to be taken by the EU in order to overcome the current debt crisis and tackle its consequences.

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[IFX Yana]

European Economics Preview: German Unemployment Data Due

Unemployment figures from Germany and Eurozone and mortgage approvals from the U.K. are the major statistical reports due on Tuesday, headlining a busy day for the European economic news.
At 2.00 am ET, the Federal Statistical Office is scheduled to issue German retail sales figures for December. Economists forecast retail sales to rise 0.8 percent month-on-month after easing 1 percent in November.
French consumer spending and producer prices are due at 2.45 am ET. Consumer spending is forecast to rise 0.2 percent month-on-month after falling 0.1 percent in November. Producer price inflation is seen slowing to 4.7 percent annually in December from 5.6 percent in November.
Spain's flash HICP and Hungary's PPI and unemployment reports are due at 3.00 am ET. Economists forecast Spanish inflation to slow slightly to 2.3 percent in January from 2.4 percent in December.
The Federal Labor Agency is set to release German unemployment data at 3.55 am ET. The number of unemployed is forecast to fall by 10,000 in January. The seasonally adjusted jobless rate is seen stable at 6.8 percent.
At 4.00 am ET, Norway's retail sales and C2 credit indicator figures are due. Retail sales growth is seen at 2.2 percent annually, faster than the 0.9 percent increase in November.
The Bank of England is set to publish mortgage approvals figures at 4.30 am ET. The number of mortgage approvals is seen at 54,000 in December compared to 52,900 in November. M4 money supply data is also due at the same time.
Eurozone jobless data for December is due from Eurostat at 5.00 am ET. The unemployment rate is forecast to rise to 10.4 percent from 10.3 percent in November.


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[IFX Yana]

Euro Extends Slide Against Most Majors

The euro extended its Tuesday's decline against most major currencies in early Asian deals on Wednesday amid weak U.S. economic data and uncertainty about Greece's debt crisis.
The euro that closed Tuesday's New York session at 99.81 against the yen fell to a 9-day low of 99.46 in Asian deals. The next downside target level for the euro-yen pair is seen at 99.0.
Against the Swiss franc, the euro slipped to a fresh 4- 1/2 -month low of 1.2034, compared to Tuesday's close of 1.2040. If the euro-franc pair weakens further, it will break 1.20 and target the 1.180 level.
The euro declined to a fresh multi-year low of 1.5823 against the New Zealand dollar with 1.50 seen as the next downside target level. At yesterday's close, the euro-kiwi pair was quoted at 1.5841.
The euro dropped to 9-day lows of 1.2290 against the Australian dollar and 1.3093 against the Canadian dollar, compared to yesterday's close of 1.2326 and 1.3122, respectively. The next downside target level for the euro is seen at 1.223 against the aussie and 1.306 against the loonie.
But the euro moved sideways against the US dollar and pound after falling to multi-day lows yesterday. The euro is currently worth 1.3071 against the dollar and 0.8296 against the pound, compared to yesterday's close of 1.3085 and 0.8303, respectively.
Investors now focus on the European session, in which U.K. Nationwide house price index for January, Swiss retail sales for December, final PMI reports for January from major European economies and the Eurozone CPI estimate for January are slated for release.
The U.S. ISM manufacturing index and ADP employment report - both for January and the construction spending for December are expected in the New York morning session.


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[IFX Yana]

European Economics Preview: Eurozone Producer Price Data Due

Producer prices from Eurozone and Purchasing Managers' survey results from the U.K. are the major reports due on Thursday, headlining a light day for the European economic news. In addition, Spain and France are set to conduct debt auctions.
At 2.00 am ET, the Federal Customs Administration is slated to publish Swiss December trade data. The trade surplus is expected to fall to CHF 2.5 billion from CHF 2.95 billion in November.
U.K. CIPS/Markit construction Purchasing Managers' survey results are due at 4.30 am ET. The indicator is seen rising to 52.5 in January from 53.2 in December.
Spain is set to raise EUR 3.5 billion to EUR 4.5 billion through a bond auction at 4.30 am ET. The issue includes bonds maturing on January 2017, July 2015 and October 2016.
At 4.50 am ET, France is set to issue longer term bonds or OATs. The Agence France Tresor will auction bonds with 7, 8, 10 years maturity. The agency aims to raise between EUR 6.5 billion and EUR 8 billion.
At 5.00 am ET, Eurostat is scheduled to issue euro area producer price figures for December. Producer price inflation is forecast to slow to 4.3 percent in December from 5.3 percent in November. On a monthly basis, producer prices are expected to drop 0.1 percent.
The Czech National Bank is set to announce its interest rate decision at 7.00 am ET. The central bank is widely expected to retain the rate at 0.75 percent.

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