Economic Data
(ID) Indonesia Central Bank cuts Reference Rate by 25bps to 5.75%; Not expected
(EU) ECB: €1.8B borrowed in overnight loan facility v €1.9B prior; €494.7B parked in deposit facility vs. €495.4B prior
(RU) Russia Gold & Forex Reserve w/e Feb 3rd: $507.3B v $504.0B prior
(CH) Swiss Jan SECO Consumer Confidence: -19 v -22e
(FR) France Survey of Industrial Investments: Executives see 2012 manufacturing investment Y/Y: +7vs. +4% prior Oct survey
(NL) Netherlands Jan CPI M/M: -0.1 v +0.2%e; Y/Y: 2.5% v 2.6%e
(NL) Netherlands Jan CPI EU Harmonized M/M: 0.1% v 0.0%e; Y/Y: 2.9% v 2.5%e
(UK) Dec Industrial Production M/M: 0.5% v 0.2%e; Y/Y: -3.3% v -3.1%e
(UK) Dec Manufacturing Production M/M: 1.0% v 0.2%e; Y/Y: 0.8% v 0.3%e
(UK) Dec Visible Trade Balance: -£7.1B v -£8.6Be; Total Trade Balance: -£1.1B v -£2.7Be; Trade Balance Non EU: -£3.8B v -£5.0Be
(ZA) South Africa Dec Gold Production Y/Y: -8.2% v -4.5% prior; Mining Production Y/Y: +0.9% v -4.4% prior
UN Food Agricultural Organization (FAO) Jan Food Index M/M: 214 v 211 m/m
(GR) Greece Jan Consumer Price Index Y/Y: 2.3% v 2.4% prior
(GR) Greece Dec Industrial Production Y/Y: -11.3% v -7.8% prior
(GR) Greece Nov Unemployment Rate: 20.9% v 18.2% prior (Record high)
Fixed Income:
(SE) Sweden sold SEK750M vs. SEK750M indicated in 0.25% I/L 2022 Bond, Avg yield 0.2900% v 0.3746% prior
(HU) Hungary Debt Agency (AKK) sold total HUF40B in 2015, 2017 and 2022 Bonds
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
Still lacking a complete and final agreement out of Greece ahead of today's Eurogroup meeting
Ireland: Fin Min Noonan demands relief on Irish debt if ECB makes concessions on Greek debt.
Greek Nov Unemployment at record high of 20.9% with over 1 million unemployed
China inflation a bit higher than expected with RRR cut calls on hold at this time
Equities:
FTSE 100 +0.25% at 5890, DAX +0.70% at 6796, CAC-40 +0.50% at 3426, IBEX-35 +0.70% at 8905, FTSE MIB flat at 16,653, SMI -0.10% at 6151
European shares traded in positive territory ahead of ECB's and BoE's rate decision due later in the NY morning. Traders expect both banks to maintain an accommodative policy. Few analysts expect ECB to cut its interest rate from the 1% level, but amid the Greek turmoil, the central bank is expected to hint at future rate cuts. On the other hand, BoE may increase its Asset Purchase Target.
Earnings were mixed as banks were dragged down by disappointing reports from Credit Suisse and ING. Following its European peers' trend, Credit Suisse [CHGN.CH] reported a net loss which was much wider than the profit expected due to a difficult trading environment which also caused losses in the investment banking unit. ING [INGA.NV] also reported a pretax losses and missed expectations on net due to impairment on Greek government bonds. Board proposed not to pay any dividend. On the other hand, Daimler [DAI.DE] rose as it reported a 39% increase in its profit and exceeded estimates.