UK Q4 GDP contracts; German IFO survey mixed; All eyes now on FOMC statement and forecasts
Economic Data
(EU) ECB: €3.6B borrowed in overnight loan facility v €3.4B prior; €485.8B parked in deposit facility vs. €490.5B prior
(FI) Finland Dec Preliminary Retail Sales Volume Y/Y: 1.8% v 2.5%e
(TH) Thailand Central Bank cut the Benchmark Interest Rate by 25bps to 3.00%, as expected
(HU) Hungary Nov Retail Trade Y/Y: +1.1% v -0.1%e
(ES) Spain Dec Producer Prices M/M: -0.1% v -0.1%e; Y/Y: 5.2% v 5.2%e
(NL) Netherlands Jan Producer Confidence: -1.4 v -2.0e
(DE) Germany Jan IFO Business Climate: 108.3 v 107.6e; Current Assessment: 116.3 v 116.8e; Expectations Survey: 100.9 v 99.0e
(IT) Italy Nov Retail Sales M/M:-0.3% v -0.2%e; Y/Y: -1.8% v -1.5%e
(UK) Q4 Advanced GDP Q/Q:-0.2% v -0.1%e; Y/Y: 0.8% v 0.8%e v 0.5% prior
(UK) Dec BBA Loans for House Purchase: 36.2K v 35.0Ke
(UK) Nov Index of Services M/M: 0.6% v 0.4%e; 3M/3M: +0.1% v -0.1%e
(BR) Brazil Jan FGV Consumer Confidence: 116.0 v 119.6 prior
Fixed Income:
(RU) Russia sold RUB19.8B vs. RUB20.0B in 2017 OFZ Bond; avg yield 8.04%
(EU) ECB allotted$7.9B v $5.9B prior in 7-Day USD Liquidity Tender at fixed 0.60%
(EU) ECB allotted €19.6B in 3-Month Tender vs. €35.0Be
(SE) Sweden sold SEK2.5B vs. SEK2.5B indicated in 3.5% 2022 Bonds; Yield 1.826%
(DE) Germany sold €2.46B in 3.25% July 2042 Bund; avg yield2.62 % v 2.82% prior (record low); Bid-to-cover: 2.1x v 1.10x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
Apple beats expectations
Japan does record its first trade deficit since 1980
Equities:
FTSE 100 -0.60% at 5718, DAX -0.40% at 6391, CAC-40 -0.60% at 3301, IBEX-35 -0.80% at 8525, FTSE MIB -0.70% at 15,820, SMI -1.3% at 6057
European equity indices opened the session higher, but have since pared gains amid another batch of disappointing corporate earnings, rise in peripheral bond yields (notably Portugal), continued concerns related to the Greek debt talks and caution ahead of the US Fed's interest rate decision due later today. Also, declines in shares of most financials are weighing on the European indices. The weakness in financials is being led by French and UK banks. Equities in Switzerland have underperformed, following earnings reports from Novartis [NOVN.CH] and Lonza [LONN.CH] - In individual movers, technology names, including Dialog Semiconductor [DLG.DE], Imagination Technologies [IMG.UK] and Arm Holdings [ARM.UK] are all moving higher after Apple reported better than expected quarterly results. In Switzerland, Lonza [LONN.CH] is lower by over 11%, after the company disclosed FY11 earnings and announced plans to search for a new CEO. Novartis [NOVN.CH] has declined by more than 3%, following its Q4 earnings report and 2012 guidance. Roche [ROG.CH] is lower by approximately 2%, after announcing a hostile $5.7B bid for US genetic analysis system manufacturer Illumina [ILMN]. In Sweden, Ericsson [ERICB.SE] has lost over 13%, after reporting weaker than expected earnings. Shares of Alcatel-Lucent [ALU.FR] and Nokia [NOK1V.FI] are also lower amid the weakness in Ericsson's shares. In Germany, Beiersdorf [BEI.DE] is higher by more than 3.5%, after reporting earnings. In France, Air France [AF.FR] is lower on renewed speculation that the company could report a significant loss for 2011. Also in France, shares of Inter Parfums [ITP.FR] and Biomerieux [BIM.FR] are both higher following their respective financial reports.
Economic Data
(EU) ECB: €3.6B borrowed in overnight loan facility v €3.4B prior; €485.8B parked in deposit facility vs. €490.5B prior
(FI) Finland Dec Preliminary Retail Sales Volume Y/Y: 1.8% v 2.5%e
(TH) Thailand Central Bank cut the Benchmark Interest Rate by 25bps to 3.00%, as expected
(HU) Hungary Nov Retail Trade Y/Y: +1.1% v -0.1%e
(ES) Spain Dec Producer Prices M/M: -0.1% v -0.1%e; Y/Y: 5.2% v 5.2%e
(NL) Netherlands Jan Producer Confidence: -1.4 v -2.0e
(DE) Germany Jan IFO Business Climate: 108.3 v 107.6e; Current Assessment: 116.3 v 116.8e; Expectations Survey: 100.9 v 99.0e
(IT) Italy Nov Retail Sales M/M:-0.3% v -0.2%e; Y/Y: -1.8% v -1.5%e
(UK) Q4 Advanced GDP Q/Q:-0.2% v -0.1%e; Y/Y: 0.8% v 0.8%e v 0.5% prior
(UK) Dec BBA Loans for House Purchase: 36.2K v 35.0Ke
(UK) Nov Index of Services M/M: 0.6% v 0.4%e; 3M/3M: +0.1% v -0.1%e
(BR) Brazil Jan FGV Consumer Confidence: 116.0 v 119.6 prior
Fixed Income:
(RU) Russia sold RUB19.8B vs. RUB20.0B in 2017 OFZ Bond; avg yield 8.04%
(EU) ECB allotted$7.9B v $5.9B prior in 7-Day USD Liquidity Tender at fixed 0.60%
(EU) ECB allotted €19.6B in 3-Month Tender vs. €35.0Be
(SE) Sweden sold SEK2.5B vs. SEK2.5B indicated in 3.5% 2022 Bonds; Yield 1.826%
(DE) Germany sold €2.46B in 3.25% July 2042 Bund; avg yield2.62 % v 2.82% prior (record low); Bid-to-cover: 2.1x v 1.10x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
Apple beats expectations
Japan does record its first trade deficit since 1980
Equities:
FTSE 100 -0.60% at 5718, DAX -0.40% at 6391, CAC-40 -0.60% at 3301, IBEX-35 -0.80% at 8525, FTSE MIB -0.70% at 15,820, SMI -1.3% at 6057
European equity indices opened the session higher, but have since pared gains amid another batch of disappointing corporate earnings, rise in peripheral bond yields (notably Portugal), continued concerns related to the Greek debt talks and caution ahead of the US Fed's interest rate decision due later today. Also, declines in shares of most financials are weighing on the European indices. The weakness in financials is being led by French and UK banks. Equities in Switzerland have underperformed, following earnings reports from Novartis [NOVN.CH] and Lonza [LONN.CH] - In individual movers, technology names, including Dialog Semiconductor [DLG.DE], Imagination Technologies [IMG.UK] and Arm Holdings [ARM.UK] are all moving higher after Apple reported better than expected quarterly results. In Switzerland, Lonza [LONN.CH] is lower by over 11%, after the company disclosed FY11 earnings and announced plans to search for a new CEO. Novartis [NOVN.CH] has declined by more than 3%, following its Q4 earnings report and 2012 guidance. Roche [ROG.CH] is lower by approximately 2%, after announcing a hostile $5.7B bid for US genetic analysis system manufacturer Illumina [ILMN]. In Sweden, Ericsson [ERICB.SE] has lost over 13%, after reporting weaker than expected earnings. Shares of Alcatel-Lucent [ALU.FR] and Nokia [NOK1V.FI] are also lower amid the weakness in Ericsson's shares. In Germany, Beiersdorf [BEI.DE] is higher by more than 3.5%, after reporting earnings. In France, Air France [AF.FR] is lower on renewed speculation that the company could report a significant loss for 2011. Also in France, shares of Inter Parfums [ITP.FR] and Biomerieux [BIM.FR] are both higher following their respective financial reports.