European Market Update: February 20, 2012

(RU) Russia Narrow Money Supply Narrow w/e Feb 13th: (RUB): 6.76T v 6.70T prior

(DE) Germany Jan Producer Prices M/M: 0.6% v 0.3%e; Y/Y: 3.4% v 3.2%e

(AT) Austria Dec Producer Price Index M/M: -0.5% v +0.2% prior; Y/Y: 2.2% v 3.3% prior

(EU) Euro Zone Dec Current Account nsa: €16.3B v €1.9B prior; Current Account Seasonally Adj: +€2.0B v -€0.9B -prior

(UK) Jan Retail Sales Ex Auto Fuel M/M: +1.2% v -0.3%e; Y/Y: +1.9% v -0.1%e

(UK) Jan Retail Sales (with Auto Fuel) M/M:+0.9% v -0.3%e; Y/Y: 2.0% v 0.5%e

(GR) Greece Jan CPI EU Harmonized Y/Y: 2.1% v 2.2% prior

(EU) Euro Zone Dec Construction Output M/M: 0.3 v 0.2% prior; Y/Y: 7.8% v 0.4% prior

Spain Dec banks bad loan ratio 7.61% v 7.51% prior

Fixed Income

(ZA) South Africa sold total ZAR800M in I/L 2017, 2022, and 2028 bonds

(IN) India sold total INR120B vs. INR120B indicated in 2018, 2021 and 2041 bonds

SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM

Notes/Observations

Japan PM Noda announces plan to double sales tax from 5 to 10%

Optimism that a second Greek bailout deal can be signed on Monday, Feb 20th

UK Jan retail sales data beat expectations

German President Wulff resigns over personal financial scandal

Switzerland said to have seized $6T in fake US Bonds

Equities:

FTSE 100 +0.40% at 5907, DAX +0.80% at 6807, CAC-40 +1% at 3426, IBEX-35 +0.70% at 8619, FTSE MIB +0.70% at 16,480, SMI +0.10% at 6226

European shares rose as investors are optimistic that a deal on Greece is nearing its end which would enable the country to receive a €130B bailout by early next week.

French cement maker, Lafarge [LG.FR] rose despite missing estimates on its net profit. Revenues had increased however, and the company predicted further growth in the cement market for 2012. Aker Solutions [AKSO.NO] also rose after reporting better than expected earnings