Notes/Observations
China Dec Industrial Profits beat expectations; Shanghai Composite hits 7-month highs
China PBoC Vice Gov: Sees China 2013 GDP at 8%, 2013 inflation at 3%
ECB official at Davos: ECB is "not very happy" with a step toward competitive devaluations
PBoC Dep Gov Yi Gang warns on currency wars. Reiterates view that CNY currency was near equilibrium
EU President Van Rompuy: Euro area no longer in existential treat mode
Fitch cut Cyprus sovereign ratin on Friday to B from BB-
Moody's comments on LTRO repayments is a credit positive for money funds
Italian Jan Consumer confidence was lowest on record (series began in Jan 1996)
Euro Zone M3 money Supply mixed
Italy 2014 CTZ yield hits 3-year low at auction
German 12-month Bubill auction yield turns positive for first time since June
Economic Data
(FI) Finland Jan Consumer Confidence: 4,5 v 5.0e; Business Confidence: -13 v -11 prior
(TW) Taiwan Dec Leading Index M/M: 0.9% v 0.9% prior; Coincident Index M/M: -0.1 v 0.0% prior
(ES) Spain Nov Mortgages-capital loaned Y/Y: -34.4% v -21.2% prior; Mortgages on Houses Y/Y: -31.6 v -14.4% prior
(EU) ECB: €2.0M borrowed in overnight loan facility vs. €0.0M prior; €207.2B parked in deposit facility vs. €210.3B prior
(SE) Sweden Dec Trade Balance (SEK): 0.7B v 5.5Be
(SE) Sweden Dec Household Lending Y/Y: 4.5% v 4.6%e
(SE) Sweden Dec Retail Sales M/M: 1.2% v 0.3%e; Y/Y: 2.5% v 1.4%e
(EU) Euro Zone Dec M3 Money Supply Y/Y: 3.3% v 3.9%e; M3 3 month Avg: 3.7% v 3.8%e
(IT) Italy Jan Consumer Confidence Index: 84.6 v 86.0e
(BR) Brazil Jan FGV Construction Costs M/M: 0.4% v 0.2%e
(IT) Italy Dec Hourly Wages M/M: 0.1% v 0.1% prior; Y/Y: 1.7% v 1.6% prior
Fixed Income:
(IT) Italy Debt Agency (Tesoro) sold €4.0B vs. €4.0B indicated in Zero Coupon Dec 2014 CTZs; Avg Yield 1.434% (lowest in almost 3 years) v 1.884% prior; Bid-to- cover: 1.45x v 1.69x prior
(IT) Italy Debt Agency (Tesoro) sold €2.625B v €2.75B indictaed in 1.70% I/L 2018 BTPi;; Real Yield 1.80% v 2.46% prior; Bid-to-cover: 1.38x v 1.75x prior
(DE) Germany sold €2.07B in 12-Month BuBills; Avg Yield +0.1319% (first positive yield since June) % vs. -0.0085% prior; Bid-to-cover: 1.8x v 1.8x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Equities
Indices: FTSE 100 flat at 6,281, DAX -0.10% at 7,850, CAC-40 -0.10% at 3,774, IBEX-35 -0.20% at 8,711, FTSE MIB +0.40% at 17,792, SMI +0.30% at 7,479, S&P 500 Futures +0.10% at 1,497
European equity markets are currently mixed. The FTSE MIB and SMI have outperformed, while the DAX has pared gains after the index rose to a fresh multi-year high earlier during the session. In terms of the European financial sector, most banks are slightly higher, although Spanish banks have lagged. European banks due to report earnings during the week include BBVA, Deutsche bank and Santander. Resource-related firms are mostly lower, amid mixed commodity prices. US companies due to report corporate earnings today include Biogen and Caterpillar.
UK movers [Filtronic +15% (raised FY guidance),Amino Technologies +6% (FY12 results), Mitie Group +1.5% (interim management statement); Premier Foods -9.5% (named new CEO), Augean Plc -7% (profit warnings),New World Resources -6% (Q1 update), Ryanair -1.5% (reported Q3 results, raised guidance for net profits]
Germany movers [Gagfah +2% (takeover speculation) Kloeckner +1.5% (CEO comments on 2013); Metro -1% (raised stake in Media-Saturn),Bayer -0.80% (regulatory probe into birth control product)]
Italy movers [Banca Monte Paschi +5% (Bank of Italy approved bailout plan)]
Dutch movers [TNT Express +3% (broker commentary)]