Economic Data
(EU) ECB: €3.4B borrowed in overnight loan facility v €3.3B prior; €490.5B parked in deposit facility vs. €491.8B prior
(FI) Finland Dec Unemployment Rate: 7.4% v 6.8%e
(ZA) South Africa Nov Leading Indicator: 132.2 v 131.4 prior
(FR) France Jan Preliminary PMI Manufacturing: 48.5 v 48.6e; PMI Services: 51.7 v50.0e
(CZ) Czech Jan Business Confidence: 7.4 v 5.3 prior; Consumer Confidence: -25.3 v -29.8 prior; Composite: +0.8 v -1.7 prior
(ES) Spain Nov Mortgages-capital loaned Y/Y: -32.6% v -40.6% prior; Mortgages on Houses Y/Y: -35.8 v -43.6% prior
(AT) Austria Nov Industrial Production M/M: 0.0% v 0.1% prior; Y/Y: 2.5% v 3.5% prior
(DE) Germany Jan Advanced PMI Manufacturing: 50.9 v 49.0e (first growth since Sept 2011); PMI Services: 54.5 v 52.4e (highest level since June 2011)
(EU) Euro Zone Jan Advanced PMI Manufacturing: 48.7 v 47.2e; PMI Services:50.5 v 49.0e; PMI Composite: 50.4 v 48.5e
(UK) Dec Public Finances (PSNCR): £22.9B v £19.0Be; Public Sector Net Borrowing: €10.8B v £12.1Be; PSNB ex Interventions: £13.7B v £14.9Be v £18.1B prior
(EU) Euro Zone Nov Industrial New Orders M/M: -1.3% v -2.2%e; Y/Y: -2.7% v -2.7%e
Fixed Income:
(NL) Netherlands Debt Agency (DSTA) sold €1.835B vs. 1.5-2.5B indicated range in 2013 and 2042 Bonds
Sold €495M in 1.75% 2013 Bonds; avg yield 0.074% v 0.861% prior
Sold €1.34B in 3.75% 2042 Bonds; avg yield 2.690% v 4.03% prior
(ES) Spain Debt Agency (Tesoro) sold approx €2.51B vs. €1.5-2.5B indicated range in 3-Month and 6-Month Bills
Sold €1.4B in 3-month Bills; Avg Yield 1.285% v 1.735% prior; Bid-to-cover: 4.32x v 2.9x prior; Max Yield 1.330% v 1.880% prior
Sold €1.11B in 6-month Bills; Avg Yield 1.847% v 2.435% prior; Bid-to-cover: 6.87x v 4.1x prior; Max Yield 1.900% v 2.530% prior
(DK) Denmark sold total DKK2.14B in 2016 and 2021 Bonds
(TU) Turkey sold TRY 2.37B in 10% 2013 Bonds
(ZA) South Africa sold total ZAR vs. ZAR2.1B indicated in 2017 and 2021 Bonds
(EU) ECB allotted €130.3B in 7-Day Main Refinancing Tender vs. €120Be at fixed rate of 1.00%
(HU) Hungary sold HUF45B vs. HUF45B Target in 3-Month Bills; avg yield 7.65% v 7.84% prior; Bid-to-cover: 1.99x v 3.15x prior
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
Japan expected to announce its first trade deficit since 1980 on Wednesday
Coupon issue sends Greek debt negotiations back to square one
India cuts is Cash Reserve Ratio by 50bps to 5.50% (not expected); leaves key rate unchanged
Major European PMI data improves with several readings back above the pivotal 50 level
Greek sovereign debt negotiations appear to have hit an impasse over the interest rate on the bonds set to replace existing ones but Greece remains optimistic that a deal can be achieved
Equities:
FTSE 100 -0.70% at 5740, DAX -0.95% at 6374, CAC-40 -0.75% at 3312, FTSE MIB -0.50% at 15,828, SMI -0.70% at 6086
European equity indices opened the session lower, led by weakness in Spanish and German equities. The equity weakness comes amid the lingering Greek private sector involvement (PSI) talks and disappointing corporate earnings. Banking names opened the session lower following yesterday's sharp gains, led by declines in French banks after S&P downgraded SocGen [GLE.FR] and Credit Agricole [ACA.FR]. UK-listed miners including are declining, amid the weakness in commodity prices.
In individual names, large Swiss refiner Petroplus [PPHN.CH] is lower by over 70%, after announcing that it defaulted on $1.75B worth of debt. Also, Petroplus said it would prepare for bankruptcy proceedings in Switzerland. In Germany, solar name Q-Cells [QCE.DE] has lost over 15%, after the company provided guidance and announced a plan to restructure its debt. Siemens [SIE.DE] is lower by approximately 3.5%, as the company reported weaker than expected quarterly earnings. Software AG [SOW.DE] has lost more than 5%, following the release of its earnings and 2012 guidance. In Italy, Telecom Italia [TIT.IT] is down over 3% on speculation that the company might lower its dividend. In UK movers, shares of PZ Cussons [PZC.UK], Playtech [PTEC.UK] and Chemring [CHG.UK] are all declining after reporting financial figures. In the Netherlands, KPN [KPN.NL] is lower by more than 5%, after reporting weaker than expected Q4 earnings and issuing cautious guidance for 2012. In France, STMicroelectronics [STM.FR] has declined by approximately 6%, after reporting weaker than expected Q4 results.