Economic Data
(FI) Finland Jan Unemployment Rate: 7.8% v 7.4% prior
(ZA) South Africa Dec Leading Indicator: 132.1 v 132.2 prior
(CH) Swiss Jan Trade Balance (CHF) 1.6B v 2.5Be; Real Exports M/M: -3.4% v +6.4% prior; Real Imports M/M: 4.6% v 8.4% prior
(DK) Denmark Feb Consumer Confidence: -4.8 v -7.5e
(HU) Hungary Dec Avg Gross Wages Y/Y: 10.1% v 6.2%e
(CH) Swiss Jan M3 Money Supply M3 Y/Y: 8.2% v 7.4% prior
(HK) Hong Kong Jan Unemployment Rate: 3.2% v 3.3%e
(NL) Netherlands Jan House Price Index M/M: +0.6 v -0.9% prior; Y/Y: -3.3% v -4.0% prior
(NL)) Netherlands Feb Consumer Confidence: -36 v -37 prior
(UK) Jan Public Finances (PSNCR): -£16.8B v -£24.7Be; Public Sector Net Borrowing: -£10.7B v -£9.1Be; PSNB ex Interventions: -£7.8B v -£6.3Be
Fixed Income
(ZA) South Africa sold total ZAR2.1B vs. ZAR2.1B indicated in 2018, 2021 and 2041 bonds
(ES) Spain Debt Agency (Tesoro) sold €2.504B vs. €2.5B indiacted in 3-Month and 6-Month Bills
Sold €1.74B in 3-month Bills; Avg Yield 0.396% v 1.285% prior; Bid-to-cover: 4.04x v 4.32x prior; Max Yield 0.440% v 1.330% prior
Sold €764M in 6-month Bills; Avg Yield 0.779% v 1.847% prior; Bid-to-cover: 10.2x v 6.87x prior; Max Yield 0.780% v 1.900% prior
(EU) ECB allotted €166.5B in 7-day Main Refinancing Tender at fixed 1.0% vs. vs. €135Be
(HU) Hungary Debt Agency (AKK) sold HUF60B vs. HUF50B Target in 3-Month Bills; Yield 7.24% v 7.32% prior; Bid-to-cover: 1.80x v 2.52x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
Eurogroup Finance Ministers agree to agree on Greece
Greek bond swap procedure to begin Feb 22nd; Uncertainty remains whether investors will voluntarily take the deal
Germany's new President appears to cause some dissent within ruling coalition
Equities:
FTSE 100 -0.30% at 5927, DAX -0.50% at 6917, CAC-40 -0.50% at 3455, IBEX-35 -0.40% at 8780, FTSE MIB -0.60% at 16,617, SMI -0.40% at 6220
European shares opened mixed and are trading lower as the highs from the Greek agreement wore off. The Eurozone ministers decided to extend a €130B bailout deal to avoid a Greek default. The deal combines a private sector haircut of 53.5% as opposed to the 50.5% agreed in October with ECB foregoing the profits from the Greek bondholdings. The agreement comes with permanent team of monitors so that Athens implements the austerity measures and an escrow account which will ensure that Greece holds three months worth of debt payments. The escrow is temporary however as Greece has agreed to change its constitution to make debt payment its priority. But the investors are worried over the long-term prospects of Greece. New elections in April in Greece may fuel fears that the new government will not be either able or willing to implement those measures. Social unrest, divisive policies and mutual mistrust between the Germans and the Greeks make the bailout unimpressive and signify that the crisis is far from over. Furthermore, some investors are critical that there is an absence over how Greek economy will grow in the future. The sentiment that this second bailout has merely bought more time has put pressure in the markets. Financial sector is lower.
TNT Express [TNTE.NL] fell after reporting a loss due to its operations in Brazil. Yesterday, TNT shares rose after talks that UPS has upped its bid offer of €9.0/shr. TNT Express declined to comment