European Market Update: February 16, 2012

(JP) Japan Jan Final Machine Tool Orders Y/Y: -6.9% v -6.6% prelim

(PH) Philippines Dec Overseas Workers Remittances: $1.8B v $1.8B prior; Y/Y: 6.2% v 10.6% prior

(FR) France Q4 Preliminary Gross Domestic Product Q/Q: +0.2% v -0.2%e; Y/Y: 1.4% v 1.1%e

(FI) Finland Dec GDP Indicator: 1.9% v 1.3% prior

(DE) Germany Q4 Advanced GDP Q/Q: -0.2% v -0.3%e; Y/Y: 1.5% v 1.8%e; GDP wda Y/Y: 2.0% v 1.9%e

(CZ) Czech Q4 Preliminary GDP Q/Q: -0.3% v 0.0%e; Y/Y: 0.5% v 0.7%e

(HU) Q4 Preliminary GDP Q/Q: 0.3% v 0.4% prior; Y/Y: 1.4% v 0.9%e

(AT) Austria Q4 GDP Q/Q: -0.1 v 0.2% prior; Y/Y: 1.2% v 2.5% prior

(CZ) Czech Dec Export Price Index Y/Y: 3.5% v 5.8% prior; Import Price Index Y/Y: 5.1% v 7.6% prior

(TR) Turkey Nov Unemployment Rate: 9.1% v 9.1% prior

(ES) Spain Jan Consumer Price Index M/M: -1.1% v -1.1%e; Y/Y: 2.0% v 2.0%

(ES) Spain Jan CPI EU Harmonized M/M: -1.7% v -1.6%e; Y/Y: 2.0% v 2.0%e

(ES) Spain Jan CPI Core M/M: -1.7% v -1.7%e; Y/Y: 1.3% v 1.5%e

(DK) Denmark Jan Wholesale Prices M/M: 0.8 v 0.1% prior; Y/Y: 3.4 v 4.1% prior - (FI) Finland Dec Current Account: €90M v €210M prior

(NL) Netherlands Q4 Preliminary GDP Q/Q: -0.7% v -0.3%e; Y/Y: -0.7% v +0.3%

(SE) Sweden Q4 Industry Capacity: 87.5% v 88.9% prior

(IT) Italy Q4 Preliminary GDP Q/Q: -0.7% v -0.6%e; Y/Y: -0.5% v -0.2%e

(NO) Norway Jan Trade Balance (SEK): 44.1B v 41.2B prior

(UK) Jan Jobless Claims Change: +6.9K v +3.0Ke; Claimant Count Rate: 5.0% v 5.0%e

(UK) Dec Average Weekly Earnings 3M/Y: 2.0% v 1.9%e; Weekly Earnings ex-Bonus 3M/Y: 2.0% v 1.9%e

(UK) Dec ILO Unemployment Rate: 8.4% v 8.4%e

(IT) Italy Dec General Government Debt: €1.898T v €1.905T prior

(EU) Euro Zone Q4 Advanced GDP Q/Q: -0.3% v -0.4%e; Y/Y: 0.7% v 0.7%e

(CH) Swiss Feb Credit Suisse ZEW Expectations Survey: -21.2 v -50.1 prior

(BR) Brazil Feb FGV Inflation IGP-10 M/M: 0.0% v 0.2%e

(MA) Malaysia Q4 Current Account Balance (MYR): B v 26.6B prior

(MA) Malaysia Q4 GDP Y/Y: 5.2% v 4.8%e; Annual GDP 2011: 5.0%e v 7.2% prior year

(EU) Euro Zone Dec Trade Balance (Seasonally Adj): €7.5B v €6.1B prior; Euro-Zone Trade Balance: €9.7B v €6.9B prior

Fixed Income

(EU) ECB allotted $3.7B in 7-Day USD Liquidity Tender at fixed 0.63% vs. $4.1B prior

(SE) Sweden sold total SEK10B in Bills, avg yield 1.529%

(PT) Portugal Debt Agency (IGCP) sold total €3.0B vs. €2.5-3.0B indicated range in 3-month, 6-month and 12-month Bills

Sold €300M in 3-month Bills; Avg Yield 3.845% v 4.068% prior; Bid-to-cover: 10.3x v 2.8x prior

Sold €1.2B in 6-month Bills; Avg Yield % v 4.463% prior; Bid-to-cover: 2.5x v 2.6x prior

Sold €1.5B in 12-month Bills; Avg Yield % v 5.902% prior; Bid-to-cover: 2.0x v 2.1x prior

SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM

Notes/Observations

Risk appetite aided by China pledge of resources to Europe and more involvement in EFSF

Eurogroup teleconference on Greece later today

Greek bailout talks entered a new round of brinkmanship

Major European GDP data beats expectations, Germany still contracts for the first time in 3 years

Equities:

European shares rose after PBOC's Governor Zhou committed to holding assets of EU sovereign debt.

Meanwhile,European leaders cancelled their meeting in Brussels today and will, instead, hold a conference call to push Greece to commit to its austerity measures in exchange for its aid package of €130B. Greek leaders said they would provide written austerity promises in exchange for a EU bailout.

In individual earnings, BNP Paribas [BNP.FR] rose after bank beat the estimates. Bank also noted that it had reached its capital ratio target six months ahead of the European Banking Authority's June deadline. Heineken [HEIA.NV] also beat estimates and announced new cost-saving measures. Peugeot [UG.FR] reported a significant lower net profit on a yearly basis, hurt by European crisis. However, the shares rose as the carmaker noted that it was planning asset disposals of up to €1.5B.