ZuluTrade Blog

Reports that the Troika suggested another Greek debt restructuring...

Market View | Monday, October 29, 2012 4:20 AM GMT

Good Morning  ,


-  EUR crosses trading a bit softer today. Spiegel reports that the Troika suggested another Greek debt restructuring, which for the first time would cost the taxpayer serious money. EURUSD range so far 1.2914-1.2972.

-  Stocks: Nikkei -0.4 %, Hang Seng -0.35 %, Shanghai Composite -0.51 %, Dow Jones +0.03 %, S+P500 -0.07 %

-  The European Commission, the European Central Bank and the International Monetary Fund proposed a restructuring of Greek debt that would require public-sector lenders to take heavy losses, Spiegel reported. Representatives from the so-called troika presented their plan at a meeting of high-level officials from euro-area finance ministries on Oct. 25, according to an article in this week’s Spiegel magazine, which didn’t say where it got the information. This would be the first time euro aid would cost taxpayers “serious money,” Spiegel said. Public creditors to Greece would be expected to participate and to relinquish a large part of their claims, it said.

-  German Finance Minister Wolfgang Schaeuble rejected another debt restructuring for Greece, saying it’s unrealistic to expect public or private bondholders to take losses on their Greek holdings.

-  ECB Draghi commented on his euro-area inflation expectations in an interview with Der Spiegel: * "Unlimited doesn’t mean uncontrolled,’’ Draghi says of possible ECB sovereign-bond purchases. * "If the governments in southern Europe continue with the successful implementation of policy reforms seen in the last few months, German axpayers will make a profit from our purchases’’ * Draghi says he is “fully in favor” of proposal from German Finance Minister Wolfgang Schaeuble that would give the European Commission direct influence on national budgets. * Draghi says he is “personally and not only professionally committed to delivering price stability,” citing his family’s own experience with inflation in Italy in the 1970s. * Draghi says there is a risk central-bank financing can be addictive. “But central bank financing can also be helpful, like medicine.” * Draghi says he would like his discussions with Bundesbank President Jens Weidmann “to proceed in a more controlled way”. * Draghi says the differences between himself and Weidmann over the correct instruments of monetary policy “are not insurmountable.” * Spiegel interview with Draghi conducted Monday, Oct. 22


-  Finance Minister Koriki Jojima said he wants the Bank of Japan to take bold policy steps while closely working with the government to beat deflation, piling pressure on the central bank to act on the eve of its rate review.

-  Japan Data Recap              Period       Survey         Actual         Prior

* Retail Trade yoy                   Sep         1.0 %         0.4 %        1.7 % rev

* Retail Trade mom                Sep         -1.5 %       -1.0 %        -0.9 %

* Large Retailers Sales           Sep         -1.2 %       -1.0 %      -0.9 %


-  UK Data Recap                                   Period        Survey       Actual          Prior

* Hometrack Housing Survey mom          Oct               -             -0.1 %     -0.1 %

* Hometrack Housing Survey yoy            Oct             -               -0.4 %      -0.5 %

* Lloyds Business Barometer                   Oct              -               17.0          10.0

-  Bank of England Deputy Governor Charles Bean said third-quarter economic growth figures were stronger than the central bank expected, though people shouldn’t get “over-excited” by the data. The figures were “stronger than we were expected, but we should avoid getting over-excited,” Bean said in an interview with Sky News yesterday.

-  Economic growth in Britain will be "materially" lower in the fourth quarter, after an unexpectedly strong boost from the Olympic Games, and it will remain weak for the next couple of years, Bank of England chief economist Spencer Dale told the Times newspaper.

-  IMM Positions: EUR -55k vs -54k, JPY -18k vs 10k (first short since June), GBP 18k vs 20k, CHF 2k vs -1k, CAD 89k vs 94k, AUD 46k vs 38k, NZD 16k unchanged



13:30  US  Personal Income Sep

13:30   US Personal Spending Sep

15:30   US Dallas Fed Manf. Activity Oct

09:00   Spain Retail Sales Sep

14:00   Germany CPI Oct

08:30   ECB Weidmann

10:30   UK Net Consumer Credit Sep

10:30   UK Net Lending Sec. on Dwellings Sep

10:30   UK Mortgage Approvals Sep

10:30   UK M4 Sep

19:00   BOE Haldane

09:30   Sweden Retail Sales Sep

n/a   Sweden Riksbank Wickman-Parak speaks in New York



Have a good start!

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