ZuluTrade Blog

A crucial Eurogroup meeting next week on Greece.....

Market View | Friday, November 16, 2012 3:28 AM GMT

Good Morning,


- USDJPY running a bit out of steam, despite the parliament will be dissolved today and the government has revised down the outlook of Japan's economy. LPD said in their economic revival paper that they target and inflation rate of 2 % versus saying yesterday 2-3 %. USDJPY high in Asia was 81.27 and EURJPY 103.895. AUDUSD remains under pressure.. Also USDCHF continues to hold the key 0.9400 area .

- Stocks: Nikkei +2.20 %, Hang Seng +0.13 %, Shanghai Composite -1.07 %, Dow Jones -0.23 %, S+P500 -0.16 %

- German Chancellor Angela Merkel's Christian Democrats (CDU) want to restrict the European Central Bank's ability to buy up the debt of struggling euro zone countries, the Financial Times Deutschland newspaper said on Friday. The plan, which has yet to be activated, has drawn strong criticism from Germany's central bank and from many in Merkel's centre-right coalition who see it as tantamount to printing money to finance governments. The CDU is expected to approve at a party gathering on Dec. 5 a motion stating that the ECB's offer to buy debt must be of a purely temporary nature, the FT Deutschland said.

- A crucial Eurogroup meeting next week on Greece should forge a deal that will put the insolvent country's economy on a sustainable path, International Monetary Fund (IMF) Managing Director Christine Lagarde said on Friday. The IMF chief is cutting short her tour of Asia to attend the Eurogroup meeting in Brussels on Nov. 20.

- Bundesbank president cautions against “over-hasty” formation of banking union in guest commentary in Handelsblatt. * Says banking union in itself can be stabilizing, sees danger in perceiving banking union as debt-crisis solution * Legacy risks should continue to be carried by national states, otherwise poses disincentive to tackle individual banking problems and sets in motion mutualization of potential losses * Sees potential conflict in ECB becoming banking regulator * Says banking union can be buttress for a stable monetary union, though makes no sense “to build on sand” .

- “The indicators so far speak for” Germany escaping a recession, Wolfgang Franz, head of German government’s council of economic advisers, says in interview with Passauer Neue Presse.

- Japan's Prime Minister Yoshihiko Noda will dissolve parliament today, paving the way for elections on Dec. 16

- Japanese Finance Minister Koriki Jojima said on Friday that he has always expected the Bank of Japan to take bold policy steps, although it was up to the central bank to steer monetary policy.

- Japan’s main opposition Liberal Democratic Party releases mid-term economic revival report in Tokyo. * Calls for changing Bank of Japan law to increase cooperation with government * Calls for implementing an inflation target of 2%, policies to achieve nominal gross domestic product growth of 3% and lowering of the corporate tax rate to below 30% * Calls for extra budget to be implemented “swiftly” should LDP win next month’s parliamentary election

- Japan Friday reduced the forecast for its economy, the fourth straight monthly downward revision, as threat of another recession loomed.

- The economy is moving along at a "very modest" pace, Federal Reserve Bank of Philadelphia President Charles Plosser said Thursday. Risks still loom, including the upcoming slew of tax increases and spending cuts known as the "fiscal cliff," and instability in Europe, Mr. Plosser told reporters. Also, the economy has had to contend with unexpected bumps, such as the drought in the Midwest and the ravages of Hurricane Sandy.

 - Federal Reserve Chairman Ben S. Bernanke said the Fed will take action to speed growth and a rebound in a housing market facing obstacles ranging from too-tight lending rules to racial discrimination. “We will continue to use the policy tools that we have to help support economic recovery,” Bernanke said.

- Swiss National Banks Jordan speaks today at 0830 on "Monetary policy in the financial crisis – Measures, effects, risks." According to SNB's webpage, Bloomberg notes the is going to speak at 1045.

- Singapore cut its growth forecast for this year to around 1.5 percent and warned of a subdued 2013 on Friday as updated third-quarter data and October export numbers showed weakness in electronics manufacturing and financial services.



US TIC Data Sep


US Industrial Production Oct


US Capacity Utilization Oct


Fed George


Fed Lockhart


Eurozone Current Accoutn Sep


Italy Trade Balance Sep


Eurozone Trade Balance Sep


ECB Noyer


ECB Costa


ECB Weidmann


SNB Jordan


Canada Intl. Securites Transactions


Have a nice weekend

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