US Personal Spending

Location: United States

Date: 31/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 0.2% / Consensus: 0.0%

Notes: Personal spending, released by Bureau of Economic Analysis, Department of Commerce, measures purchases of goods and services by households and by nonprofit institutions that serve households from private business.

#END

US Core Personal Consumption Expenditure - Prices Index (YoY)

Location: United States

Date: 31/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 1.1% / Consensus: 1.0%

Notes: The Core Personal Consumption Expenditure released by the US Bureau of Economic Analysis is an average amount of money that consumers spend in a month. "Core excludes seasonally volatile products such as food and energy in order to capture an accurate calculation of the expenditure. It is a significant indicator of inflation. A high reading is bullish for the USD, while a low reading is bearish.

#END

US Personal Income (MoM)

Location: United States

Date: 31/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 0.2% / Consensus: 0.1%

Notes: The Personal Income released by the Bureau of Economic Analysis, Department of Commerce measures the total income received by individuals, from all sources including wages and salaries, interest, dividends, rent, workers' compensation, proprietors' earnings, and transfer payments. This figure can provide insight on the US employment situation. A high reading is positive for the USD, whereas a low reading is negative.

#END

EMU Consumer Price Index - Core (YoY)

Location: European Monetary Union

Date: 31/05/2013

Time: 10:00 - 11:00

Strength: 3/3

Previous: 1.0% / Consensus: 1.1%

Notes: The core Consumer Price Index released by Eurostat is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services excluding the volatile components like food, energy, alcohol and tobacco. The core CPI is a key indicator to measure inflation and changes in purchasing trends. Generally, a high reading is seen as positive or bullish for the EUR, while a low reading is seen as negative.

#END

EMU Consumer Price Index (YoY)

Location: European Monetary Union

Date: 31/05/2013

Time: 10:00 - 11:00

Strength: 2/3

Previous: 1.2% / Consensus: 1.4%

Notes: The Euro Zone CPI released by the Eurostat captures the changes in the price of goods and services. The CPI is a significant way to measure changes in purchasing trends and inflation in the Euro Zone. Generally, a high reading anticipates a hawkish attitude which will be positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish).

#END

UK Net Lending to Individuals (MoM)

Location: United Kingdom

Date: 31/05/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: �0.9B / Consensus: �0.9B

Notes: UK Net Lending to Individuals released by the Bank of England is a monthly measure of growth rates, amounts outstanding and changes in total lending to individuals, divided into lending secured on dwellings and consumer credit. It shows a picture of whether or not consumers are willing to spend money. A high reading is positive for the GBP, while a low reading is negative.

#END

UK Mortgage Approvals

Location: United Kingdom

Date: 31/05/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: 53.504K / Consensus: 54.500K

Notes: The Mortgage Approvals released by the Bank of England presents the number of various Mortgage Approvals. It is considered as a leading indicator of the U.K. Housing Market. A Mortgage growth represents a healthy housing market that stimulates the overall U.K. economy. Generally, a high reading is seen as positive ( or bullish ) for the GBP, while a low reading is seen as negative (or bearish )

#END

UK Consumer Credit

Location: United Kingdom

Date: 31/05/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: �0.5B / Consensus: �0.4B

Notes: The Consumer Credit released by the Bank of England is an amount of money that individuals borrowed in the previous month. It shows if consumers can afford large expenses, which can fuel economic growth. However, a high figure may also indicate that the economy is overheating, as consumers borrow in order to live beyond their means. A high reading is seen as positive for the GBP, whereas a low reading is seen as negative.

#END

DE Retail Sales (YoY)

Location: Germany

Date: 31/05/2013

Time: 7:00 - 8:00

Strength: 2/3

Previous: -2.8% / Consensus: 0.8%

Notes: The Retail Sales released by the Statistisches Bundesamt Deutschland is a measure of changes in sales of the German retail sector. It shows the performance of the retail sector in the short term. Percent changes reflect the rate of changes of such sales.The changes are widely followed as an indicator of consumer spending. The positive economic growth anticipates "Bullish for the EUR, while a low reading is seen as negative, or bearish, for the EUR.

#END

DE Retail Sales (MoM)

Location: Germany

Date: 31/05/2013

Time: 7:00 - 8:00

Strength: 2/3

Previous: -0.3% / Consensus: 0.2%

Notes: The Retail Sales released by the Statistisches Bundesamt Deutschland is a measure of changes in sales of the German retail sector. It shows the performance of the retail sector in the short term. Percent changes reflect the rate of changes of such sales.The changes are widely followed as an indicator of consumer spending. The positive economic growth usually anticipates "Bullish for the EUR, while a low reading is seen as negative, or bearish, for the EUR.

#END

The 6am Cut

6am Cut London Posted 2013-05-31 02:54:12 by Kate Mackenzie Japanese stocks rebounded after yesterday's slide, following reports that Japan's pension fund may boost stock holdings and that the nation's industrial output expanded faster than estimated last month. The Nikkei rose as high as 2 per cent before flagging later on Friday. The MSCI Asia Pacific was 0.6 per cent higher. (Bloomberg) Japanese deflation eased slightly, and industrial production rose 1.7% in April; the latter exceeding median forecasts of a Bloomberg survey which pointed to an 0.6% gain. Core consumer prices, which include oil but exclude volatile costs for fresh food, fell 0.4% from a year earlier, matching the Reuters median market forecast and coming in below the Bloomberg consensus of 0.7%. The sixth straight fall was slightly narrower than the 0.5% decline in March. Household spending for April missed expectations, coming in at 1.5% growth year-on-year, compared to expectations of 3.1%, and a 5.2% rise in March. (Bloomberg)(Reuters) Consumer products giants turn screws on ad agencies, suppliers: "Some of the world's largest consumer products groups are delaying payments to advertising agencies and commodity producers for up to six months, squeezing cash flows and causing alarm at critical points in their supply chains." Mondelez International, Procter & Gamble, Johnson & Johnson and Anheuser-Busch InBev have all recently extended their payment terms. (Financial Times) The coalition will announce £15bn of extra spending for future major infrastructure projects next month, in a move designed to stimulate the economy and challenge Labour to outline its own plans to revive growth. (Financial Times) Sony hires banks for Loeb plan: "Sony is working with Morgan Stanley and Citigroup as it considers adopting billionaire Daniel Loeb's proposal for an initial public offering of its entertainment unit, said people familiar with the matter." (Bloomberg) Smiths Group is again weighing a potential £2bn-plus sale of its medical division, which played a role in the first successful IVF treatment, three years after a failed private equity approach for the business. People familiar with the talks said the FTSE 100 engineering group was investigating the option of selling the division after an approach by potential buyers including CareFusion, the San Diego-headquartered healthcare group. (Financial Times) UBS is raising salaries for investment bankers to catch up with rivals, said three people with knowledge of the plan, while it continues with a plan to cut staff numbers by 10,000. (Bloomberg) "HTC has scrapped plans to introduce a full-sized tablet computer with Microsoft's Windows RT operating system on concern it will meet with lackluster demand, according to people familiar with the matter." (Bloomberg) Procter & Gamble is already thinking about succession, with four senior executives planned to be elevated to new roles. Former chief exeuctive AG Lafley, who came out of retirement last week to place his hand-picked successor Robert McDonald, isn't expected to stay for more than two or three years and lining up possible replacements is one of of his top priorities, people close to the company said. (Wall Street Journal) Encore breaks into UK debt market: US debt management and recovery firm Encore Capital Group has agreed to buy a majority stake in Cabot Credit Management (CCM) for £128m, to tap into the UK's debt purchase market. The deal comes weeks after New York buyout house JC Flowers acquired Cabot in an agreement worth an estimated £500m. (Financial Times) Boeing won the first order for the stretched version of its 787 Dreamliner as Singapore Airlines split a purchase of jets with Airbus SAS valued at $17bn. (Bloomberg) COMMENT AND CURIOS: - Japan equities retreat raises the stakes for Abenomics. (Bloomberg) - Interview: New Vatican bank head, Ernst von Freyberg. (Financial Times) - Lombard: Twists in RBS tale may never end. (Financial Times) - Eurozone bailouts, the IMF and the OSI. (Wall Street Journal) - The debate over US Treasuries falling. (Wall Street Journal) - Asia's growth drives numbers of super rich. (Financial Times) OVERNIGHT MARKETS: UP Asian markets Nikkei 225 up +137.47 (+1.01%) at 13,726 Topix up +3.28 (+0.29%) at 1,137 Hang Seng down -28.61 (-0.13%) at 22,583 US markets S&P 500 up +6.05 (+0.37%) at 1,654 DJIA up +21.73 (+0.14%) at 15,325 Nasdaq up +23.78 (+0.69%) at 3,491 European markets Eurofirst 300 up +3.91 (+0.32%) at 1,227 FTSE100 up +29.82 (+0.45%) at 6,657 CAC 40 up +22.19 (+0.56%) at 3,996 Dax up +63.62 (+0.76%) at 8,400 Currencies €/$ 1.30 (1.30) $/¥ 101.08 (100.72) £/$ 1.52 (1.52) Commodities ($) Brent Crude (ICE) down -0.06 at 102.13 Light Crude (Nymex) down -0.07 at 93.54 100 Oz Gold (Comex) up +8.80 at 1,420 Copper (Comex) unchanged 0.00 at 3.31 10-year government bond yields (%) US 2.11% UK 1.98% Germany 1.51% CDS (closing levels) Markit iTraxx SovX Western Europe +1.26bps at 83.31bp Markit iTraxx Europe +0.14bps at 100.32bp Markit iTraxx Xover +0.29bps at 410.91bp Markit CDX IG -0.76bps at 76.25bp Sources: FT, Bloomberg, Markit
#END

UK Gfk Consumer Confidence

Location: United Kingdom

Date: 30/05/2013

Time: 0:01 - 1:01

Strength: 2/3

Previous: -27 / Consensus: -26

Notes: The GfK Group Consumer Confidence is a leading index that measures the level of consumer confidence in economic activity. A high level of consumer confidence stimulates economic expansion while a low level drives to economic downturn. Normally, a high reading is positive for the GBP, while a low reading is bearish.

#END

US Gross Domestic Product Annualized

Location: United States

Date: 30/05/2013

Time: 13:30 - 14:30

Strength: 3/3

Previous: 0.4% / Consensus: 2.5%

Notes: The Gross Domestic Product annualized released by the US Bureau of Economic Analysis shows the monetary value of all the goods, services and structures produced within a country in a given period of time. It is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the USD, while a low reading is negative.

#END

US Initial Jobless Claims

Location: United States

Date: 30/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 340K / Consensus: 340K

Notes: The Initial Jobless Claims released by the US Department of Labor is a measure of the number of people filing first-time claims for state unemployment insurance. In other words, it provides a measure of strength in the labor market. A larger than expected number indicates weakness in this market which influences the strength and direction of the US economy. Generally speaking, a decreasing number should be taken as positive or bullish for the USD.

#END

US Core Personal Consumption Expenditures (QoQ)

Location: United States

Date: 30/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 1.0% / Consensus: 1.2%

Notes: The Real Personal Consumption Expenditure released by the Bureau of Economic Analysis, Department of Commerce is an average of the amount of money the consumers spend in a month on durable goods, consumer products, and services.. It is considered as an important indicator of inflation. Generally speaking, a high reading is bullish for the USD, while a low reading is bearish.

#END

US Personal Consumption Expenditures Prices (QoQ)

Location: United States

Date: 30/05/2013

Time: 13:30 - 14:30

Strength: 3/3

Previous:

Notes: Personal Consumption Expenditures, released by US Department of Commerce, measures price changes in consumer goods and services. Personal consumption expenditures consist of the actual and imputed expenditures of households; the measure includes data pertaining to durables, non-durables and services. It is essentially a measure of goods and services targeted toward individuals and consumed by individuals.

#END

US Gross Domestic Product Price Index

Location: United States

Date: 30/05/2013

Time: 13:30 - 14:30

Strength: 3/3

Previous: 1.0% / Consensus: 1.2%

Notes: The GDP Price Index released by the Bureau of Economic Analysis, Department of Commerce gauges the change in the prices of goods and services. Changes in the GDP price index are followed as an indicator of inflationary pressure that may anticipate interest rates to rise. A high reading is seen as positive, or bullish for the USD, while a low reading is seen as negative, or bearish.

#END

EMU Consumer Confidence

Location: European Monetary Union

Date: 30/05/2013

Time: 10:00 - 11:00

Strength: 2/3

Previous: -22.3 / Consensus: -21.9

Notes: The Consumer Confidence released by the European Commission is a leading index that measures the level of consumer confidence in economic activity. A high level of consumer confidence stimulates economic expansion while a low level drives to economic downturn. A high reading is seen as positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish).

#END

UK Nationwide Housing Prices n.s.a (YoY)

Location: United Kingdom

Date: 30/05/2013

Time: 7:00 - 8:00

Strength: 2/3

Previous: 0.9% / Consensus: 0.9%

Notes: The Nationwide Housing Prices shows the value of the houses prices in UK and indicate current movements in the housing market that is considered as a sensitive factor to the UK's economy. A high reading is seen as positive (or bullish) for the GBP, while a low reading is seen as negative (or bearish).

#END

The 6am Cut

6am Cut London Posted 2013-05-30 05:42:47 by Kate Mackenzie Asian stocks fell, with the Nikkei declining more than 3% and the yen trading around 101.2, close to a three-week high. The MSCI Asia Pacific was down 1.4% and the Kospi moved between gains and losses. The Hong Kong IPO of Langham Hospitality Investments saw the shares slump 9.2%. (Bloomberg) European regulators have clashed with the US over the timing derivatives reforms, in a letter urging further delays to "cross border guidance", which would which would outline how the US would keep tabs on banks and hedge funds whose international swap trading could have a direct impact on the US economy. The European Commission in a letter sent on Tuesday urged the CFTC to extend an exemption for foreign market participants until leaders of the Group of 20 countries have agreed international principles on cross-border swap rules. (Financial Times) Google is preparing an attack on Apple's iPhone with a device that is more aware of its surroundings and smart enough to anticipate how it will be used next, according to the head of the internet company's Motorola subsidiary. (Financial Times) Panasonic said it would cut about 5,000 workers from its automotive and industrial division, which employs a total of 110,000, in a bid to bolster its operating profit margin to at least 5% over the next three years. (Reuters) "Berkshire Hathaway on Wednesday agreed to buy NV Energy, a power company serving customers in Nevada, for $5.6bn, saying the deal would help develop the state's renewable energy resources. The all-cash offer from MidAmerican Holdings, a Berkshire subsidiary that provides power in the midwest and Rocky Mountain regions, values NV at $10bn, including debt." (Financial Times) British SMEs' external borrowing declines: The quarterly SME Finance monitor found 39% of the 5,000 firms surveyed had used finance such as loans, overdrafts and credit cards. That was down from half in the same three months last year and was the lowest since the survey began in early 2011. (Reuters) Blackstone is weighing a bigger than expected withdrawal from SAC Capital. Ahead of a Monday deadline for SAC clients, Blackstone is planning to withdraw up to $400m, people familiar with the matter said, which would be double the amount expected early this month. (Wall Street Journal) "Switzerland has taken a decisive step to resolve its dispute with the US over tax evasion unveiling plans to relax its once untouchable bank secrecy laws to allow banks to make individual settlements with the US over their role in helping Americans evade taxes." (Financial Times) Brazil's central bank tightened interest rates 50bps to 8% despite growth slowing in Q1. (Financial Times) COMMENT AND CURIOS: - Europe's austerity u-turn isn't enough to create growth. (Financial Times) - Copper users still pay high prices as financing deals lock up supply in warehouses. (Bloomberg) - John Gapper: The disturbing revolving door from high level public service roles to the private sector. (Financial Times) - Oil trader known as 'God' says US shale will only temporarily boost world supplies. (Financial Times) - China big US pork acquisition follows Smithfield's decision to cut controversial additive. (Reuters) - How to make bank bail-ins work. (Reuters) - Japanese housewives cooling on AUD uridashi. (Bloomberg) OVERNIGHT MARKETS: DOWN Asian markets Nikkei 225 down -473.97 (-3.31%) at 13,852 Topix down -28.43 (-2.41%) at 1,150 Hang Seng down -110.37 (-0.49%) at 22,445 US markets S&P 500 down -11.70 (-0.70%) at 1,648 DJIA down -106.59 (-0.69%) at 15,303 Nasdaq down -21.37 (-0.61%) at 3,468 European markets Eurofirst 300 down -22.94 (-1.84%) at 1,224 FTSE100 down -134.84 (-1.99%) at 6,627 CAC 40 down -76.44 (-1.89%) at 3,974 Dax down -144.29 (-1.70%) at 8,337 Currencies €/$ 1.30 (1.29) $/¥ 101.05 (101.13) £/$ 1.51 (1.51) Commodities ($) Brent Crude (ICE) up +0.32 at 102.75 Light Crude (Nymex) up +0.10 at 93.23 100 Oz Gold (Comex) up +3.40 at 1,395 Copper (Comex) down -0.03 at 3.26 10-year government bond yields (%) US 2.13% UK 2.02% Germany 1.54% CDS (closing levels) Markit iTraxx SovX Western Europe +0.63bps at 82.05bp Markit iTraxx Europe +5.99bps at 100.18bp Markit iTraxx Xover +25.74bps at 410.62bp Markit CDX IG +1.3bps at 77.01bp Sources: FT, Bloomberg, Markit
#END

DE Harmonised Index of Consumer Prices (MoM)

Location: Germany

Date: 29/05/2013

Time: 13:00 - 14:00

Strength: 2/3

Previous: -0.5% / Consensus: 0.2%

Notes: HICP is an index of consumer prices calculated and published by Destatis, the Statistical Office of the European Union, on the basis of a statistical methodology that has been harmonised across all EU member states. HICP is a measure of prices used by Governing Council of EU to define and assess price stability in the euro area as a whole in quantitative terms.

#END

DE Harmonised Index of Consumer Prices (YoY)

Location: Germany

Date: 29/05/2013

Time: 13:00 - 14:00

Strength: 3/3

Previous: 1.1% / Consensus: 1.4%

Notes: HICP is an index of consumer prices calculated and published by Destatis, the Statistical Office of the European Union, on the basis of a statistical methodology that has been harmonised across all EU member states. HICP is a measure of prices used by Governing Council of EU to define and assess price stability in the euro area as a whole in quantitative terms.

#END

DE Consumer Price Index (MoM)

Location: Germany

Date: 29/05/2013

Time: 13:00 - 14:00

Strength: 2/3

Previous: -0.5% / Consensus: 0.2%

Notes: The Germany consumer price index released by the Statistiches Bundesamt Deutschland measures the average price change for all goods and services purchased by households for consumption purposes. CPI is the main indicator to measure inflation and changes i

#END

DE Consumer Price Index (YoY)

Location: Germany

Date: 29/05/2013

Time: 13:00 - 14:00

Strength: 3/3

Previous: 1.1% / Consensus: 1.3%

Notes: The Germany consumer price index released by the Statistiches Bundesamt Deutschland measures the average price change for all goods and services purchased by households for consumption purposes. CPI is the main indicator to measure inflation and changes i

#END

DE Unemployment Rate s.a.

Location: Germany

Date: 29/05/2013

Time: 8:55 - 9:55

Strength: 3/3

Previous: 6.9% / Consensus: 6.9%

Notes: The Unemployment Rate released by the Bundesagentur f�r Arbeit and published by the German Statistics Office shows , in a percent basis, the amount of unemployed people in Germany. A decrease in this indicator has positive implications for consumer spending which stimulates economic growth. Normally, a decrease of the figure is bullish for the EUR, while an increase is bearish.

#END

DE Unemployment Change

Location: Germany

Date: 29/05/2013

Time: 8:55 - 9:55

Strength: 3/3

Previous: 4K / Consensus: 5K

Notes: The Unemployment Change released by the Bundesagentur f�r Arbeit and published by the German Statistics Office is a measure of the change in the number of unemployed people in Germany. A rise in this indicator has negative implications for consumer spending which encourages economic growth. Generally, a high reading is seen as negative (or bearish) for the EUR, while a low reading is seen as positive (or bullish).

#END

The 6am Cut

6am Cut London Posted 2013-05-29 05:43:45 by Kate Mackenzie Asian stocks rose for a second day, bolstered by data on US home prices and consumer confidence. The Australian dollar weakened and the yen strengthened. (Bloomberg) EU to ease hard line on austerity for key countries: "In its annual verdict on national budgets of all 27 EU members France, Spain and the Netherlands will be given a waiver on the annual 3 per cent deficit limit. Brussels will also free Italy from intensive fiscal monitoring despite its new prime minister's decision to reverse a series of tax increases imposed by his predecessor." (Financial Times) Murdoch seeks to persuade Wall St on new News Corp: Rupert Murdoch yesterday pitched the collection of publishing, advertising and Australian television assets he will spin off next month as a "chance to do it all over again", and tried to convince investors there were still opportunities to make money in newspapers, saying he had often proved naysayers wrong over the past six decades. The new News Corp, seen by many analysts as the poor relation when compared with the television and film brands that will be renamed 21st Century Fox, would pursue "relentless" cost-cutting at its newspapers and "aggressive digital expansion", said CEO Robert Thomson. (Financial Times)(Reuters) Germany's biggest seven banks are still €14bn short of meeting Basel III capital requirements short of the capital needed to meet incoming Basel III banking rules at the end of last year, according to new estimates by German regulator BaFin. The banks, which include Deutsche Bank and Commerzbank, cut their collective capital shortfall from €32bn in the second half of 2012, although none raised equity and BaFin calculates most capital improvements came from spinning off assets and recalculating risk weightings. (Financial Times) Japan to Korea: do your own easing. "Koichi Hamada, an economic adviser to Japanese Prime Minister Shinzo Abe, told South Korea to adjust its own monetary policies if officials are concerned at the effects of a yen weakened by unprecedented easing." (Bloomberg) Bank auditors urged to question assumptions more closely: Accountants provide "insufficient challenge" to key assumptions of banks calculating loan risks, says UK auditing regulator Financial Reporting Council in its annual report today. (Reuters) Former KPMG partner pleads guilty: "Scott London, a former senior partner with accounting firm KPMG, agreed to plead guilty to securities fraud for his involvement in insider trading, according to an announcement from the U.S. Attorney's Office in Los Angeles." (Reuters) Japanese deflation seen to have slowed in April: Japan's core consumer prices, which exclude fresh food but include energy, are forecast to have fallen 0.4% in April from a year earlier, compared to -0.5% in March, according to a Reuters poll. However many economists maintain the two-year time frame for reaching a 2% inflation target is overly ambitious. The surveyed economists also expect 0.6% industrial production growth in April. Both figures are due on Friday. (Reuters) COMMENT AND CURIOS: - Ashoka Mody: Germany must lead by example on fixing its banks. (Financial Times) - Fitch's Chu vs S&P on Chinese banks. (Bloomberg) - Apple hints at more open approach to technology. (Financial Times) - Vinod Khosla won't back down on clean tech. (Wall Street Journal) - Europe's youth need growth to work. (Bloomberg) - The AirBnb tax backlash. (Financial Times) OVERNIGHT MARKETS: UP Asian markets Nikkei 225 up +131.68 (+0.92%) at 14,444 Topix up +20.62 (+1.77%) at 1,189 Hang Seng down -156.90 (-0.68%) at 22,767 US markets S&P 500 up +10.46 (+0.63%) at 1,660 DJIA up +106.29 (+0.69%) at 15,409 Nasdaq up +29.75 (+0.86%) at 3,489 European markets Eurofirst 300 up +16.09 (+1.31%) at 1,246 FTSE100 up +107.67 (+1.62%) at 6,762 CAC 40 up +55.40 (+1.39%) at 4,051 Dax up +97.57 (+1.16%) at 8,481 Currencies €/$ 1.29 (1.29) $/¥ 102.22 (102.36) £/$ 1.50 (1.50) Commodities ($) Brent Crude (ICE) down -0.14 at 104.09 Light Crude (Nymex) down -0.24 at 94.77 100 Oz Gold (Comex) unchanged 0.00 at 1,379 Copper (Comex) unchanged 0.00 at 3.31 10-year government bond yields (%) US 2.16% UK 1.95% Germany 1.50% CDS (closing levels) Markit iTraxx SovX Western Europe -1.57bps at 81.42bp Markit iTraxx Europe -4.04bps at 94.19bp Markit iTraxx Xover -16.56bps at 384.88bp Markit CDX IG -0.02bps at 75.71bp Sources: FT, Bloomberg, Markit
#END

The 6am Cut

6am Cut London Posted 2013-05-28 05:47:08 by Kate Mackenzie "Asian stocks were mixed, with Japanese shares struggling to find direction amid continued volatility due to concerns over rising bond yields. The MSCI Asia Pacific index shed 0.5 per cent, falling for the fifth consecutive session, amid expectations that the US Federal Reserve will soon wind down its bond purchases on the back of the improving US economy." (Financial Times) China targeting 7% growth, says Li: Chinese Premier Li Keqiang told German business leaders his country faces "huge challenges" as it pursues an average annual growth rate of 7% this decade. The country's leadership appears increasingly willing to tolerate lower growth. At a press conference in March, Li referred to a target of 7.5% average growth through 2020; however state-media transcripts that day said Li gave a 7% figure. (Bloomberg) European lenders draw down on central bank reserves: 'Cash hoards' stashed at central banks by the 12 biggest European lenders have fallen 19% from their peak. (Wall Street Journal) "Huge disparities in the fees paid by the UK's local authority pension funds to their fund managers have been revealed in Financial Times research, with some councils paying three times as much as funds the same size elsewhere in the country." (Financial Times) New Co-op Bank chief warns of 'no quick fixes' to capital black hole. The Co-operative Group has turned to Niall Booker, a former 30-year veteran of HSBC to lead efforts to resuscitate its banking arm. Booker is due to join within days and the Co-op's directors are set to meet formally this week for the first time since the bank's credit ratings were slashed to junk status. (Financial Times) Valeant in $8.7bn Bausch & Lomb deal: "Valeant, the Bermuda-domiciled speciality pharmaceuticals group, has launched its most ambitious takeover yet with the agreed $8.7bn purchase of Bausch & Lomb, the privately held ophthalmology business." (Financial Times) Club Méditerranée is to be taken over by its biggest shareholders, Axa Private Equity and Chinese conglomerate Fosun, in a friendly deal that values the French holiday resort group at €556m. News of the deal saw Club Med's shares rise 22%. The offer, which was made with the company's management, is a €17 a share – a 23% premium to the Friday closing price. (Financial Times) Cov-lite loans rise: More than half of new leveraged loans issues this year were without covenants, more than double the level of 2007. (Financial Times) COMMENT AND CURIOS: - BoJ minutes reveal tensions over 'contradictions'. (Financial Times) - Could tech chiefs follow bankers into a populist backlash? (Financial Times) - China eyes cap on carbon emissions by 2016. (Financial Times) - Britain's four biggest banks will have eliminated about 189,000 jobs from their peak levels, by 2014. (Bloomberg) OVERNIGHT MARKETS: Asian markets Nikkei 225 up +165.77 (+1.17%) at 14,308 Topix up +19.46 (+1.69%) at 1,174 Hang Seng up +31.81 (+0.14%) at 22,718 European markets Eurofirst 300 up +3.77 (+0.31%) at 1,230 FTSE100 down -42.45 (-0.63%) at 6,654 CAC 40 up +38.37 (+0.97%) at 3,995 Dax up +77.98 (+0.94%) at 8,383 Currencies €/$ 1.29 (1.29) $/¥ 101.77 (100.93) £/$ 1.51 (1.51) Commodities ($) Brent Crude (ICE) up +0.01 at 102.63 Light Crude (Nymex) down -0.60 at 93.55 100 Oz Gold (Comex) unchanged 0.00 at 1,387 Copper (Comex) up +0.01 at 3.30 10-year government bond yields (%) US 2.05% UK 1.92% Germany 1.46% CDS (closing levels) Markit iTraxx SovX Western Europe +3.8bps at 82.99bp Markit iTraxx Europe +6.29bps at 98.23bp Markit iTraxx Xover +15.2bps at 401.44bp Markit CDX IG +2.44bps at 75.73bp Sources: FT, Bloomberg, Markit
#END

US Durable Goods Orders

Location: United States

Date: 24/05/2013

Time: 13:30 - 14:30

Strength: 3/3

Previous: -5.7% / Consensus: 1.5%

Notes: The Durable Goods Orders, released by the US Census Bureau, measures the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. As those durable products often involve large investments they are sensitive to the US economic situation. The final figure shows the state of US production activity. Generally speaking, a high reading is bullish for the USD.

#END

DE German Buba President Weidmann speech

Location: Germany

Date: 24/05/2013

Time: 11:00 - 12:00

Strength: 2/3

Previous:

Notes: Dr Jens Weidmann is the president of the Deutsche Bundesbank. He is member of the Governing Council of the ECB and has some responsabilities: Communication, Legal, Economics Research Centre...

#END

UK BBA Mortgage Approvals

Location: United Kingdom

Date: 24/05/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: 31.2K / Consensus: 32.7

Notes: The Mortgage Approvals published by the British Bankers' Association (BBA) measure the number of home loans issued by the BBA during the previous quarter. It is considered as a leading indicator of the UK Housing Market. A Mortgage growth represents a healthy housing market that stimulates the overall UK economy. Normally, a high reading is seen as positive (or bullish) for the GBP, while a low reading is seen as negative (or bearish)

#END

DE IFO - Business Climate

Location: Germany

Date: 24/05/2013

Time: 9:00 - 10:00

Strength: 2/3

Previous: 104.4 / Consensus: 104.5

Notes: This German business sentiment index released by the CESifo Group is closely watched as an early indicator of current conditions and business expectations in Germany. The Institute surveys more than 7,000 enterprises on their assessment of the business situation and their short-term planning. The positive economic growth anticipates bullish movements for the EUR, while a low reading is seen as negative (or bearish).Review Alex Nekritin's Article - Trading Euro with IFO Report

#END

DE IFO - Current Assessment

Location: Germany

Date: 24/05/2013

Time: 9:00 - 10:00

Strength: 2/3

Previous: 107.2 / Consensus: 107.2

Notes: The IFO Current Assessment released by the CESifo Group is closely watched as an indicator of current conditions and business expectations in Germany. The Institute surveys more than 7,000 enterprises on their assessment of the business situation and their short-term planning. The positive economic growth anticipates bullish movements for the EUR, while a low reading is seen as negative (or bearish).Review Alex Nekritin's Article - Trading Euro with IFO Report

#END

DE IFO - Expectations

Location: Germany

Date: 24/05/2013

Time: 9:00 - 10:00

Strength: 2/3

Previous: 101.6 / Consensus: 101.6

Notes: The IFO Expectations released by the CESifo Group is closely watched as an early indicator of current conditions and business expectations for the next six months, where firms rate the future outlook as better, same, or worse. An optimistic view of those 7,000 business leaders and senior managers is considered as positive, or bullish for the EUR, whereas a pessimistic view is considered as negative, or bearish.Review Alex Nekritin's Article - Trading Euro with IFO Report

#END

DE Gfk Consumer Confidence Survey

Location: Germany

Date: 24/05/2013

Time: 7:00 - 8:00

Strength: 2/3

Previous: 6.2 / Consensus: 6.2

Notes: The GfK Consumer Confidence is a leading index that measures the level of consumer confidence in economic activity. A high level of consumer confidence stimulates economic expansion while a low level drives to economic downturn. Generally speaking, a high reading is positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish).

#END

The 6am Cut

6am Cut London Posted 2013-05-24 05:46:08 by Kate Mackenzie Asian stocks fell, the yen strengthened and Australian bank shares headed for their largest weekly drop in a year after comments from Bank of Japan's governor suggested the central bank wouldn't increase its bond buying. The Nikkei fell 1.3%, reversing earlier gains. The ASX fell more than 2% and the MSCI Asia Pacific was 0.4% lower. (Bloomberg) BoJ governor says stable JGB market '"extremely desirable'; will work to head off volatility in bond yields. "As far as the markets for long-term government securities are concerned, in which the Bank of Japan is directly involved through its market operations, it is extremely desirable for them to move stably," Haruhiko Kuroda said today during a seminar on Asia's economic future. (Wall Street Journal) Proctor & Gamble brings back AG Lafley: The world's biggest consumer product maker has returned Lafley, who led the company from 2000 to 2009, as CEO. He replaces embattled Bob McDonald, who will retire next month. Lafley's return comes amid a $10bn restructuring launched in February 2012, and about a year after activist investor Bill Ackman took a stake in P&G and began agitating for change. (Financial Times)(Reuters) Spanish banks will need to provision up to another €10bn to cover loans that borrowers will struggle to repay, according to an internal estimate by the Bank of Spain. It is the first official assessment of the likely impact of the central bank's new approach towards more than €200bn of loans that were rolled over before they were due to expire, often because of doubts over corporate borrowers' ability to repay. (Financial Times) Draghi wants UK to become 'more European': "I cannot say which of the two sets of arguments is stronger, the economic or the political ones, neither am I going to enter into a domestic policy debate, but what I can say is that Europe needs a more European UK as much as the UK needs a more British Europe," Draghi said in a speech met with applause at the City of London Corporation last night. (Financial Times) German shale industry takes on shale gas: "Germany's brewers have warned Berlin that permitting unconventional gas exploration in Europe's biggest economy could put the purity of the country's celebrated beer at risk." (Financial Times) "The US Federal Trade Commission has begun an informal inquiry into Google's display advertising business, opening a new front in the internet search company's antitrust battles just months after it appeared to resolve earlier investigations on both sides of the Atlantic." (Financial Times) Gold is having a good week: Prices are headed for the highest weekly performance in a month amid worries about monetary stimulus. (Bloomberg) COMMENT AND CURIOS: - Abe's big agenda is constitutional change, not economics. (Reuters) - Martin Wolf: Osborne should not be so complacent about IMF criticism. (Financial Times) - The day the UK had six hours of gas left. (Financial Times) - Martin Wolf: Austerity's failure was predictable, and predicted. (Financial Times) - Market bulls run into the sand. (Financial Times) - Nick Butler: Carbon market collapse more than just a technical matter. (Financial Times) - How Chinese brokerages deal with regulators: 'kissing asses'. (Financial Times) - How US banks deal with regulators: write the legislation themselves. (NYT Dealbook) - Ford stops making 'Mad Max' style cars, blaming Aussie dollar. (Bloomberg) - Four senior executives of SAC Capital have been subpoenaed. (NYT Dealbook) OVERNIGHT MARKETS: MIXED Asian markets Nikkei 225 down -177.96 (-1.23%) at 14,306 Topix down -6.67 (-0.56%) at 1,182 Hang Seng down -45.47 (-0.20%) at 22,624 US markets S&P 500 down -4.84 (-0.29%) at 1,651 DJIA down -12.67 (-0.08%) at 15,295 Nasdaq down -3.88 (-0.11%) at 3,459 European markets Eurofirst 300 down -26.34 (-2.10%) at 1,230 FTSE100 down -143.48 (-2.10%) at 6,697 CAC 40 down -83.96 (-2.07%) at 3,967 Dax down -178.91 (-2.10%) at 8,352 Currencies €/$ 1.29 (1.29) $/¥ 102.21 (102.01) £/$ 1.51 (1.51) Commodities ($) Brent Crude (ICE) down -0.08 at 102.36 Light Crude (Nymex) down -0.33 at 93.92 100 Oz Gold (Comex) unchanged 0.00 at 1,392 Copper (Comex) unchanged 0.00 at 329.95 10-year government bond yields (%) US 2.03% UK 1.93% Germany 1.44% CDS (closing levels) Markit iTraxx SovX Western Europe +2.78bps at 79.19bp Markit iTraxx Europe +4.71bps at 91.94bp Markit iTraxx Xover +18.08bps at 386.24bp Markit CDX IG +1.73bps at 73.29bp Sources: FT, Bloomberg, Markit
#END

US Housing Price Index (MoM)

Location: United States

Date: 23/05/2013

Time: 14:00 - 15:00

Strength: 2/3

Previous: 0.7% / Consensus: 0.8%

Notes: The Housing Price Index released by the Office of Federal Reserve Housing Enterprise Oversightprovides an estimated value of housing market conditions. It is an important indicator as the housing market is considered as a sensitive factor to the US economy. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish).

#END

US Markit Manufacturing PMI

Location: United States

Date: 23/05/2013

Time: 13:58 - 14:58

Strength: 2/3

Previous: 52.1 / Consensus: 53.0

Notes: The Manufacturing Purchasing Managers Index (PMI) released by the Markit Economics captures business conditions in the manufacturing sector. As the manufacturing sector dominates a large part of total GDP, the manufacturing PMI is an important indicator of business conditions and the overall economic condition in the United States. Readings above 50 imply the economy is expanding, making investors understood it as a bullish for the USD, whereas a result below 50 points for an economic contraction, and weighs negatively on the currency.

#END

US Initial Jobless Claims

Location: United States

Date: 23/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 360K / Consensus: 345K

Notes: The Initial Jobless Claims released by the US Department of Labor is a measure of the number of people filing first-time claims for state unemployment insurance. In other words, it provides a measure of strength in the labor market. A larger than expected number indicates weakness in this market which influences the strength and direction of the US economy. Generally speaking, a decreasing number should be taken as positive or bullish for the USD.

#END

US Continuing Jobless Claims

Location: United States

Date: 23/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 3.009M / Consensus: 3.000M

Notes: The Continuing Jobless Claims released by the US Department of Labor measure the number of individuals who are unemployed and are currently receiving unemployment benefits. It presents the strength in the labor market. A rise in this indicator has negative implications for consumer spending which discourage economic growth. Generally speaking, a high reading is seen as negative, or bearish for the USD, while a low reading is seen as positive, or bullish.

#END

UK Total Business Investment (YoY)

Location: United Kingdom

Date: 23/05/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: 0.8%

Notes: The Total Business Investment released by the National Statistics presents the total amount of capital expenditures made by private firms. A large business investment is indicative of overall growth and demand in the UK economy. Generally speaking, a high reading is seen as positive (or bullish) for the GBP, while a low reading is seen as negative (or Bearish).

#END

UK Gross Domestic Product (QoQ)

Location: United Kingdom

Date: 23/05/2013

Time: 9:30 - 10:30

Strength: 3/3

Previous: -0.3% / Consensus: 0.3%

Notes: The Gross Domestic Product released by the National Statistics is a measure of the total value of all goods and services produced by the UK. The GDP is considered as a broad measure of the UK economic. Generally speaking, a rising trend has a positive effect on the GBP, while a falling trend is seen as negative (or bearish).

#END

UK Gross Domestic Product (YoY)

Location: United Kingdom

Date: 23/05/2013

Time: 9:30 - 10:30

Strength: 3/3

Previous: 0.2% / Consensus: 0.6%

Notes: The Gross Domestic Product released by the National Statistics is a measure of the total value of all goods and services produced by the UK. The GDP is considered as a broad measure of the UK economic activity. Generally speaking, a rising trend has a positive effect on the GBP, while a falling trend is seen as negative (or bearish).

#END

EMU ECB President Draghi's Speech

Location: European Monetary Union

Date: 23/05/2013

Time: 8:30 - 9:30

Strength: 3/3

Previous:

Notes: The European Central Bank's president Mario Draghi was born in 1947 in Rome, Italy. Graduated of the Massachusetts Institute of Technology (MIT), Draghi became the president of the European Central Bank in 2011. As part of his job in the Governing Council he gives press conferences in the back of how the ECB observes the current European economy. President's comments may determine positive or negative the Euro's trend in the short-term. Usually, if he shows a hawkish outlook, that is seen as positive (or bullish) for the EUR, while a dovish is seen as negative (or bearish).

#END

DE Markit Manufacturing PMI

Location: Germany

Date: 23/05/2013

Time: 8:28 - 9:28

Strength: 2/3

Previous: 48.1 / Consensus: 48.5

Notes: The Manufacturing Purchasing Managers Index (PMI) released by Markit Economics captures business conditions in the manufacturing sector. As the manufacturing sector dominates a large part of total GDP, the Manufacturing PMI is an important indicator of business conditions and the overall economic condition in Germany. Normally, a result above 50 signals is bullish for the EUR, whereas a result below 50 is seen as bearish.

#END

US FOMC Minutes

Location: United States

Date: 22/05/2013

Time: 19:00 - 20:00

Strength: 3/3

Previous:

Notes: FOMC stands for The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.Review Alex Nekritin's Article - Trading the US Dollar with the FOMC Minutes

#END

DE 10-y Bond Auction

Location: Germany

Date: 22/05/2013

Time: 10:30 - 11:30

Strength: 2/3

Previous: 1.28%

Notes: Displayed in the calendar is the average yield on the Federal Bonds auctioned by Deutsche Bundesbank. German Federal Bonds have maturities of above then ten years. The yield on the bonos represents the return an investor will receive by holding the bond until maturity. Investors monitor the yield volatility and compare the average rate at auction to the rate at previous auctions of the same security as an indicator of the government debt situation.

#END

UK Bank of England Minutes

Location: United Kingdom

Date: 22/05/2013

Time: 9:30 - 10:30

Strength: 3/3

Previous:

Notes: The minutes of the BoE MPC meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the BoE is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the GBP.

#END

UK Retail Sales (YoY)

Location: United Kingdom

Date: 22/05/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: -0.5% / Consensus: 2.0%

Notes: The retail Sales released by the National Statistics measures the total receipts of retail stores. Monthly percent changes reflect the rate of changes of such sales. Changes in Retail Sales are widely followed as an indicator of consumer spending. Generally speaking, a high reading is seen as positive, or bullish for the GBP, while a low reading is seen as negative or bearish.

#END

UK Retail Sales ex-Fuel (YoY)

Location: United Kingdom

Date: 22/05/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: 0.4% / Consensus: 1.7%

Notes: The Retail Sales ex-fuel released by the National Statistics is a measure of changes in sales of the British retail sector excluding fuel. It shows the performance of the retail sector in the short term. Percent changes reflect the rate of changes of such sales. The changes are widely followed as an indicator of consumer spending. A high reading is seen as positive (or bullish) for the Pound, while a low reading is seen as negative (or bearish).

#END

The 6am Cut

6am Cut London Posted 2013-05-22 05:38:20 by Kate Mackenzie Asian stocks held gains, the Nikkei rose 1.1% and the MSCI rose 0.3%, headed for its highest close since June 2008. (Bloomberg) Bank of Japan maintains asset-buying programme: The May monetary policy statement made no mention of recent rises in JGB yields, and said its decision came amid signs of "positive movement" in the economy. (Financial Times)(Statement) Today: Bank of England MPC minutes; Bernanke's Congressional testimony; FOMC minutes published. FirstGroup, Cable&Wireless report full-year results. Hewlett-Packard Q2, first PC maker of season. Sony shares jumped as much as 12% on a report that its board may discuss spinning off its entertainment division. (Bloomberg) Japanese trade data disappoints. Exports rose in April by 3.8% compared to a year earlier, the second consecutive month of gains, but fell short of median forecasts of a 5.9% increase. Imports rose at a faster rate, 9.4%, and the trade deficit was Y879.9bn, the biggest since comparable records began in 1979. (Reuters) Dimon prevails on dual role: Just 32.2% of JP Morgan shareholders voted for a resolution to split the two positions of chairman and chief executive. Investors instead targeted their disapproval of the whale affair at the bank's independent directors in a vote against the re-election of Ellen Futter, David Cote and James Crown; they received 53.1%, 59.3% and 57.4% votes in favour of their positions, respectively. The bank's shares jumped 1.4% to a six-year high on news of the Dimon vote. (Wall Street Journal) Temasek raises stake in ICBC as Goldman exits. A purchase of ICBC shares yesterday raised Temasek's stake to 7.04% from 6.71%. The Singaporean state-owned investment company also bought a 10% stake in Markit yesterday. (Bloomberg) "Fiat Industrial aims to move its tax residency to the UK from Italy after a merger with US business CNH to take advantage of a lighter fiscal regime, according to a regulatory filing. The move is the latest blow to Italy wherethe new coalition government of Enrico Letta is seeking to staunch an outflow of investment." (Financial Times) Italy considers plan for older workers to 'handoff' to younger generations: Labor Minister Enrico Giovannini said that he planned to discuss the idea of allowing older workers to reduce their work hours while mentoring younger employees with union leaders, who so far have been strongly supportive. (Wall Street Journal) COMMENT AND CURIOS: - Martin Wolf: The climate sceptics have already won. (Financial Times) - James Mackintosh: Dumb money is arriving, late, to Japanese party. (Financial Times) - Is Sony un-Japanese enough to change? (Reuters) - Steve Cohen fan doesn't care about any of this insider trading probe business. (Reuters) - SAP wants programmers with autism. (Financial Times) - Chris Giles: Scottish skirmishes use little-read economics reports as weapon of choice. (Financial Times) OVERNIGHT MARKETS: UP Asian markets Nikkei 225 up +178.96 (+1.16%) at 15,560 Topix up +8.25 (+0.65%) at 1,279 Hang Seng unchanged 0.00 (0.00%) at 23,366 US markets S&P 500 up +2.87 (+0.17%) at 1,669 DJIA up +52.30 (+0.34%) at 15,388 Nasdaq up +5.69 (+0.16%) at 3,502 European markets Eurofirst 300 up +1.13 (+0.09%) at 1,253 FTSE100 up +48.24 (+0.71%) at 6,804 CAC 40 up +13.33 (+0.33%) at 4,036 Dax up +16.37 (+0.19%) at 8,472 Currencies €/$ 1.29 (1.29) $/¥ 102.47 (102.46) £/$ 1.51 (1.52) Commodities ($) Brent Crude (ICE) down -0.33 at 103.58 Light Crude (Nymex) down -0.49 at 95.69 100 Oz Gold (Comex) unchanged 0.00 at 1,378 Copper (Comex) unchanged 0.00 at 333.90 10-year government bond yields (%) US 1.93% UK 1.91% Germany 1.39% CDS (closing levels) Markit iTraxx SovX Western Europe -2.08bps at 80.56bp Markit iTraxx Europe +1.55bps at 91.84bp Markit iTraxx Xover +3.86bps at 384.09bp Markit CDX IG -0.88bps at 70.12bp Sources: FT, Bloomberg, Markit
#END

UK BOE Inflation Letter

Location: United Kingdom

Date: 21/05/2013

Time: 11:00 - 12:00

Strength: 3/3

Previous:

Notes: BOE inflation letter is issued if the earlier-released CPI y/y is above 3.0% or below 1.0%. If CPI is not above 3.0% or below 1.0% this event will be removed from the calendar immediately following the CPI release. Otherwise the Tentative mark will be discarded when the exact timing of the letter is known.

#END

UK Core Consumer Price Index (YoY)

Location: United Kingdom

Date: 21/05/2013

Time: 9:30 - 10:30

Strength: 3/3

Previous: 2.4% / Consensus: 2.3%

Notes: The Core Consumer Price Index released by the National Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. "Core excludes seasonally volatile products such as food and energy in order to capture an accurate calculation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally, a high reading is seen as positive (or bullish) for the GBP, while a low reading is seen as negative (or Bearish).

#END

UK PPI Core Output (YoY) n.s.a

Location: United Kingdom

Date: 21/05/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: 1.3% / Consensus: 0.9%

Notes: Producer Prices Index Core Output, released by National Statistics, excludes volatile items such as food and energy. The Core PPI is generally a better measure of inflation because it excludes those items whose short-term price fluctuations can distort inflationary data.

#END

UK Producer Price Index - Output (YoY) n.s.a

Location: United Kingdom

Date: 21/05/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: 2.0% / Consensus: 1.6%

Notes: The Producer Price Index released by the National Statistics is a monthly measurement of the price changes of goods produced by UK manufacturers. Generally speaking, a price hike generates higher retail prices for consumers. Thus, a high reading is positive (or bullish) for the GBP, while a low reading is seen as negative (or bearish).

#END

UK Consumer Price Index (YoY)

Location: United Kingdom

Date: 21/05/2013

Time: 9:30 - 10:30

Strength: 3/3

Previous: 2.8% / Consensus: 2.7%

Notes: The Consumer Price Index released by the National Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of GBP is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally, a high reading is seen as positive (or bullish) for the GBP, while a low reading is seen as negative (or Bearish).

#END

UK Consumer Price Index (MoM)

Location: United Kingdom

Date: 21/05/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: 0.3% / Consensus: 0.5%

Notes: The Consumer Price Index released by the National Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of GBP is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally, a high reading is seen as positive (or bullish) for the GBP, while a low reading is seen as negative (or Bearish).

#END

DE Producer Price Index (MoM)

Location: Germany

Date: 21/05/2013

Time: 7:00 - 8:00

Strength: 2/3

Previous: -0.2% / Consensus: -0.1%

Notes: The Producer Price Index released by the Statistisches Bundesamt Deutschland measures the average changes in prices in the German primary markets. Changes in the PPI are widely followed as an indicator of commodity inflation. Generally speaking, a high reading is seen as positive (or bullish) for the EUR, whereas a low reading is seen as negative (or bearish).

#END

DE Producer Price Index (YoY)

Location: Germany

Date: 21/05/2013

Time: 7:00 - 8:00

Strength: 3/3

Previous: 0.4% / Consensus: 0.3%

Notes: The Producer Price Index released by the Statistisches Bundesamt Deutschland measures the average changes in prices in the German primary markets. Changes in the PPI are widely followed as an indicator of commodity inflation. Generally speaking, a high reading is seen as positive (or bullish) for the EUR, whereas a low reading is seen as negative (or bearish).

#END

The 6am Cut

6am Cut London Posted 2013-05-21 05:45:06 by Kate Mackenzie Asian shares retreated, the yen weakened and silver prices continued to slide as the BoJ begins its monthly two-day policy meeting today. The Nikkei rose 0.1% while the Hang Seng fell 0.5% and the Kospi was 0.1% higher. The yen weakened 0.3% to 102.54 per US dollar, and silver slipped 1.7% after a 2.5% rally yesterday. (Financial Times)(Bloomberg) A major disaster has been declared in Oklahoma by US president Barack Obama who ordered federal aid be made available after a tornado devastated the town of Moore. At least 51 people were killed and damage is still being assessed. (Bloomberg) Congress accuses Apple of avoiding billions in tax: US congressional investigators on Monday accused Apple of avoiding paying billions in taxes around the world by exploiting loopholes and using Irish subsidiaries that are not tax residents of any country. The Senate permanent subcommittee on investigations released a 40-page report of a hearing on Tuesday, which said the company used technicalities in Irish and American tax law to pay virtually no corporate taxes on at least $74bn over the past four years. Apple denied entities were set up with the aim of avoiding taxes. Subcommittee staffers said Apple was not breaking any laws and had cooperated fully with the investigation.(Financial Times)(FT Alphaville)(Reuters) Qatar buying fresh stakes in key banks: "The Qatar Investment Authority, the principal fund responsible for allocating the gas-rich emirate's vast wealth, is poised this week to invest up to $1bn as part of a $3.2bn capital raising by VTB, Russia's second-biggest bank, according to people close to the transaction." Qatar was key among new investors in Deutsche Bank's €2.9bn capital raising three weeks ago, according to bankers, who said the state authority invested more than €100m. (Financial Times) Goldman Sachs is selling its remaining shares in Industrial & Commercial Bank of China for about $1.1bn. Goldman's sixth sale of the stock since 2009 completes its exit from ICBC, in which it bought a 4.9% stake for $2.58bn in 2006. The latest move brings the total raised from sales to about $10bn. The exit comes ahead of new capital regulations that raise the cost of holding stakes in other financial companies. (Wall Street Journal) Riverstone leads talks of $1bn commodities venture: "US private equity group Riverstone is leading talks on an investment of as much as $1bn in a new commodities investment venture to be run by a former Deutsche Bank executive who aims to plug a funding gap left by the banks." (Financial Times) COMMENT AND CURIOS: - Japan's brokerages look abroad, despite boom at home. (Wall Street Journal) - Analysis: European Tobin tax plans likely to be diluted. (Financial Times) - Patrick Jenkins: The time to fix European banking is now. (Financial Times) - Coal's 'new normal': $100/tonne, half 2008 peak. (Bloomberg) - The 'big data' risk to financial markets. (Financial Times) - ENRC: Minorities deserve more - Lex. (Financial Times) OVERNIGHT MARKETS: QUIET Asian markets Nikkei 225 down -2.72 (-0.02%) at 15,358 Topix down -0.06 (0.00%) at 1,269 Hang Seng down -117.49 (-0.50%) at 23,376 US markets S&P 500 down -1.18 (-0.07%) at 1,666 DJIA down -19.12 (-0.12%) at 15,335 Nasdaq down -2.54 (-0.07%) at 3,496 European markets Eurofirst 300 up +3.91 (+0.31%) at 1,252 FTSE100 up +32.57 (+0.48%) at 6,756 CAC 40 up +21.58 (+0.54%) at 4,023 Dax up +57.83 (+0.69%) at 8,456 Currencies €/$ 1.29 (1.29) $/¥ 102.52 (102.26) £/$ 1.53 (1.53) Commodities ($) Brent Crude (ICE) up +0.11 at 104.91 Light Crude (Nymex) up +0.04 at 96.75 100 Oz Gold (Comex) up +3.20 at 1,388 Copper (Comex) unchanged 0.00 at 335.70 10-year government bond yields (%) US 1.96% UK 1.93% Germany 1.38% CDS (closing levels) Markit iTraxx SovX Western Europe -6.1bps at 82.64bp Markit iTraxx Europe -1.03bps at 90.29bp Markit iTraxx Xover -1.45bps at 380.23bp Markit CDX IG +0.67bps at 71bp Sources: FT, Bloomberg, Markit
#END

US Chicago Fed National Activity Index

Location: United States

Date: 20/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: -0.23

Notes: The Chicago Fed National Activity Index (CFNAI), released by Federal Reserve Bank of Chicago, is a monthly index designed to gauge overall economic activity and related inflationary pressure.

#END

The 6am Cut

6am Cut London Posted 2013-05-20 05:47:39 by Kate Mackenzie Asian shares rose, led by Japanese markets driven higher by US consumer sentiment data and a newspaper report that Tokyo Electric Power would restart its nuclear reactors. The MSCI Asia Pacific was up 1.3%. (Bloomberg) The yen gained as much as 1.1%, retreating from multi-year weakness after Japan's economy minister Akira Amari said further losses in the currency would threaten to negatively affect people and the government's job is to minimise that. Traders said Amari's comments raised the spectre that most of the yen weakening may have already occurred. (Bloomberg) Yahoo buys Tumblr for $1bn: Sources indicated the acquisition has been agreed, with reports putting the price at $1bn - $1.1bn in cash. The move represents the first big bet by Yahoo's new CEO Marissa Meyer. Tumblr has 100m users but very little revenue. But the price may be disappointing to early Tumblr investors; at its last round of fundraising, in September 2011, it was valued at $800m. (Wall Street Journal#END

UK Rightmove House Price Index (YoY)

Location: United Kingdom

Date: 20/05/2013

Time: 0:01 - 1:01

Strength: 2/3

Previous: 0.4%

Notes: The Rightmove House Price Index provides a sample of residential property prices in the UK. It shows the strength of the UK housing market, which can be considered as the economy as a whole due to property prices' sensitivity to changes in the business cycle. Generally speaking, a high reading is seen as positive, or bullish for the GBP, while a low reading is seen as negative, or bearish.

#END

US Fed's Bernanke Speech

Location: United States

Date: 19/05/2013

Time: 16:00 - 17:00

Strength: 2/3

Previous:

Notes: The fed Governor Ben Shalom Bernanke was born in 1953. He graduated from Harvard University and a Ph.D. in economics in 1979 from the Massachusetts Institute of Technology. In 2006 he became the Chairman of the Federal Reserve System. He gives a press conference as to how the Fed observes the current U.S. economy and the value of USD. His comments may determine a short-term positive or negative trend.

#END

US CB Leading Indicator (MoM)

Location: United States

Date: 17/05/2013

Time: 16:00 - 17:00

Strength: 2/3

Previous: -0.1% / Consensus: 0.2%

Notes: The Leading Indicators released by the Conference Board measures future trends of the overall economic activity including employment, average manufacturing workweek, initial claims, permits for new housing construction, stock prices and yield curve. It is considered as a measure for economic stability in United States. This event generates some volatility for the USD. Normally, a high reading is seen as positive (or bullish).

#END

The 6am Cut

6am Cut London Posted 2013-05-17 05:46:09 by Kate Mackenzie Asian stocks were mixed with Japanese benchmarks slightly higher but many other regional stocks fell amid profit warnings and US jobless claims and housing data. The Nikkei and the Topix were both slightly higher but the MSCI Asia Pacific Index was 0.1% lower. Hong Kong and Korean markets were both closed for a holiday. (Bloomberg) "George Osborne's attempt to slash £11.5bn off public spending in election year has run into cabinet trouble, after ministers identified only £2.5bn in cuts to their budgets. Some ministers failed to provide Mr Osborne with the list of 10 per cent in proposed departmental cuts he ordered before last month's deadline. One said the chancellor was "asking too much"." (Financial Times) Singapore Airlines shares slump on loss: Shares fell as much as 4.4%, the most in more than 1 1/2 years, in Singapore trading after lower passenger and cargo fares pushed the company into a wider fourth-quarter operating loss. (Bloomberg) Dell earnings miss: The third-largest PC maker by shipments on Thursday reported $14.1bn in first-quarter revenues, ahead of analyst expectations of $13.5bn, but down from $14.4bn a year ago. Net income, excluding extraordinary items, was $372m, or 21 cents per share, well below Wall Street's estimates of 34 cents, and down 51 per cent on $761m, or 43 cents per share, recorded the same quarter a year ago. (Financial Times) Europe bank stress tests delayed, but will be tougher. The next round of stress tests will be delayed until next year, after the Single Supervisory Mechanism is set up. The EBA says the tests will include an "asset quality review" that will look more closely at risk-weighting and forebearance. (FT Alphaville)(Financial Times) Bolland's M&S bonus at risk again: The retailer is expected to announce a fall in underlying pre-tax profit from £706m to about £665m in the year to March 31, when it reports annual results next week. Consensus expectations have come down from about £710m at the start of the financial year. The performance could its toll on chief executive Marc Bolland's bonus for the third year running. (Financial Times) The BoJ is expected to stand pat on monetary policy at its monthly policy meeting next week, despite jitters over the recent jump in bond yields. (Reuters) Bank of England has queried IMF calculations used to estimate potential losses from easing. Relations between the IMF and the UK have soured since the fund suggested last month that chancellor George Osborne should show more flexibility in deficit reduction. Ahead of a final IMF recommendation on the UK economy due next week, the BoE yesterday objected to calculations showing monetary easing losses could reach 6% of British GDP. (Financial Times) COMMENT AND CURIOS: Gillian Tett: No-one should feel complacent in this phony QE peace. (Financial Times) - Bill Gates is the world's richest man now. (Bloomberg) - Gold's allure is fading as ETF sales outweigh physical purchases. (Wall Street Journal) - And gold bears are happy! (Bloomberg) OVERNIGHT MARKETS: MIXED Asian markets Nikkei 225 up +53.61 (+0.36%) at 15,091 Topix up +6.96 (+0.56%) at 1,252 US markets S&P 500 down -8.31 (-0.50%) at 1,650 DJIA down -42.47 (-0.28%) at 15,233 Nasdaq down -6.38 (-0.18%) at 3,465 European markets Eurofirst 300 down -0.21 (-0.02%) at 1,245 FTSE100 down -5.75 (-0.09%) at 6,688 CAC 40 down -3.16 (-0.08%) at 3,979 Dax up +7.45 (+0.09%) at 8,370 Currencies €/$ 1.29 (1.29) $/¥ 102.30 (102.21) £/$ 1.52 (1.53) Commodities ($) Brent Crude (ICE) down -0.26 at 103.52 Light Crude (Nymex) down -0.21 at 94.95 100 Oz Gold (Comex) down -6.40 at 1,381 Copper (Comex) down -0.70 at 328.50 10-year government bond yields (%) US 1.88% UK 1.87% Germany 1.33% CDS (closing levels) Markit iTraxx SovX Western Europe -0.27bps at 89.12bp Markit iTraxx Europe -0.4bps at 93.79bp Markit iTraxx Xover +2.66bps at 388.39bp Markit CDX IG -0.09bps at 71.54bp Sources: FT, Bloomberg, Markit
#END

US FOMC Member Williams speech

Location: United States

Date: 16/05/2013

Time: 20:05 - 21:05

Strength: 2/3

Previous:

Notes: John C. Williams is the president of Federal Reserve Bank of San Francisco.

#END

US Building Permits (MoM)

Location: United States

Date: 16/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 0.902M / Consensus: 0.950M

Notes: The Building Permits released by the US Census Bureau, the Department of Commerce shows the number of permits for new construction projects. It implies the movement of corporate investments (US economic development). It tends to cause some volatility to the USD. Normally, the more growing number of permits, the more positive (or bullish) for the USD.

#END

US Consumer Price Index Ex Food & Energy (YoY)

Location: United States

Date: 16/05/2013

Time: 13:30 - 14:30

Strength: 3/3

Previous: 1.9% / Consensus: 1.8%

Notes: The Consumer Price Index (CPI) Ex Food & Energy released by the US Department of Labor Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. Those volatile products such as food and energy are excluded in order to capture an accurate calculation. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or Bearish).

#END

US Initial Jobless Claims

Location: United States

Date: 16/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 323K / Consensus: 330K

Notes: The Initial Jobless Claims released by the US Department of Labor is a measure of the number of people filing first-time claims for state unemployment insurance. In other words, it provides a measure of strength in the labor market. A larger than expected number indicates weakness in this market which influences the strength and direction of the US economy. Generally speaking, a decreasing number should be taken as positive or bullish for the USD.

#END

US Housing Starts (MoM)

Location: United States

Date: 16/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 1.036M / Consensus: 0.985M

Notes: The Housing Starts released by the US Census Bureau, at the Department of Commerce is an indicator that tracks how many new single-family homes or buildings were constructed. For the survey each house and each single apartment are counted as one housing start. The figures include all private and publicly owned units. It indicates movements of the US housing market. Generally, a high reading anticipates positive (or bullish) for the USD, whereas a low reading is seen as negative (or bearish).

#END

US Consumer Price Index (MoM)

Location: United States

Date: 16/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: -0.2% / Consensus: -0.2%

Notes: The Consumer Price Index released by the US Bureau of Labor Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of USD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or Bearish).

#END

US Consumer Price Index Ex Food & Energy (MoM)

Location: United States

Date: 16/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 0.1% / Consensus: 0.2%

Notes: The Consumer Price Index (CPI) Ex Food & Energy released by the US Department of Labor Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. Those volatile products such as food and energy are excluded in order to capture an accurate calculation. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or Bearish).

#END

US Consumer Price Index (YoY)

Location: United States

Date: 16/05/2013

Time: 13:30 - 14:30

Strength: 3/3

Previous: 1.5% / Consensus: 1.3%

Notes: The Consumer Price Index released by the US Bureau of Labor Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of USD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or Bearish).

#END

EMU Consumer Price Index (MoM)

Location: European Monetary Union

Date: 16/05/2013

Time: 10:00 - 11:00

Strength: 2/3

Previous: 1.2% / Consensus: -0.1%

Notes: The Euro Zone CPI released by the Eurostat captures the changes in the price of goods and services. The CPI is a significant way to measure changes in purchasing trends and inflation in the Euro Zone. Generally, a high reading anticipates a hawkish attitude which will be positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish).

#END

EMU Consumer Price Index (YoY)

Location: European Monetary Union

Date: 16/05/2013

Time: 10:00 - 11:00

Strength: 3/3

Previous:

Notes: The Euro Zone CPI released by the Eurostat captures the changes in the price of goods and services. The CPI is a significant way to measure changes in purchasing trends and inflation in the Euro Zone. Generally, a high reading anticipates a hawkish attitude which will be positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish).

#END

EMU Consumer Price Index - Core (YoY)

Location: European Monetary Union

Date: 16/05/2013

Time: 10:00 - 11:00

Strength: 3/3

Previous: 1.5% / Consensus: 1.0%

Notes: The core Consumer Price Index released by Eurostat is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services excluding the volatile components like food, energy, alcohol and tobacco. The core CPI is a key indicator to measure inflation and changes in purchasing trends. Generally, a high reading is seen as positive or bullish for the EUR, while a low reading is seen as negative.

#END

The 6am Cut

6am Cut London Posted 2013-05-16 05:43:30 by Kate Mackenzie Most Asian stocks fell as a decline in Japanese banks after forecasting lower earnings offset a report that Japan's economy expanded faster than analysts estimated in the first quarter. The Nikkei fell 1.2% and the Topix index was 1.5% lower, but the Hang Seng rose 0.4% and the Kospi was 1% higher. Sumitomo Mitsui, Mitsubishi UFJ Financial and Mizuho have all forecast monetary easing will push earnings lower. (Bloomberg) Japan's economy grew at the fastest pace in a year last quarter, with solid growth in consumer spending and exports suggesting Abenomics may already be having tangible effects. Real GDP grew at an annualised rate of 3.5% in the three months to March, the second consecutive quarter of growth after the last quarter of 2012 was revised upwards to 1%. Analysts surveyed by Bloomberg expected a 2.7% increase on average. Exports rose 3.8%, imports rose 1% and consumer spending was 0.9% higher. (Financial Times)(Reuters)(FT Alphaville) Lawyers for JPMorgan Chase have demanded that Bloomberg hand over data logs of staff who searched for activities of the bank's employees using Bloomberg terminals since 2008, as it decides whether to take legal action over the matter. The bank's lawyers also sought the role of each Bloomberg employee who had searched for information, and demanded verification that Bloomberg had revoked reporters' access to information about terminal users, as Bloomberg has said it did after a formal complaint from Goldman Sachs last month. (Financial Times)(Wall Street Journal) Chinese FDI misses forecasts: Foreign direct investment in China in April was 0.4% higher than a year earlier, short of March's 5.7% gain and Bloomberg consensus estimates of 6.2% growth. (Bloomberg) "RP Martin has removed its chief executive and an executive director from their posts amid a probe into the firm's role in the manipulation of Libor that saw two former employees arrested in December." (Financial Times) David Cameron is "open to all ideas" for returning RBS to private ownership but its finances must improve first, he told reporters on the last day of a three-day visit to the United States. (Reuters) Platts fought an attempt to impose new regulations on world oil benchmarks last year. International regulators' group IOSCO considered new controls after the bank Libor scandal, but Platts resisted the move, arguing it would affects its role, independence and impartiality. (Wall Street Journal) Spanish banks are bracing themselves for a fresh financial hit, amid rising pressure from the Bank of Spain on lenders to write down the value of their €200bn portfolio of restructured loans to the country's troubled companies and struggling households. The move could see NPL ratios rise further. (Financial Times) Banks sue Lisbon over 'toxic' asset allegations: JPMorgan Chase and Banco Santander have filed lawsuits in London Portuguese state-owned companies as a bitter legal tussle intensifies over derivative contracts the Lisbon government has described as "toxic". Portugal's treasury secretary, said in April that Lisbon would take legal action against the two banks after two months of attempts at renegotiating the contracts failed to produce an agreement. (Financial Times) Brazil raised a record R$2.8bn in its first auction of licences for oil exploration blocks in five years, with oil majors including ExxonMobil, Chevron and BP winning blocks, as well as BG Group of the UK. (Financial Times) Warning over SWF opacity: Sovereign wealth funds from resource-rich countries controlling more than $500bn of assets operate with no disclosure, limiting their accountability and increasing the risk of corruption, says the Revenue Watch Institute, a New York-based group backed by charitable foundations and rich-country governments. The group's report showed that eight large funds, including the investment authorities of Qatar, Kuwait and Libya, disclosed no details at all about their assets, transactions or investments. Only 11 of 58 resource-rich countries rated as 'satisfactory' overall. (Financial Times) COMMENT AND CURIOS: - The powerful few making oil benchmark prices. (Financial Times) - Janet Yellen's ascension to Fed chair is not assured, despite being favourite. (Financial Times) - Sir Mervyn leaves Bank of England on an upbeat note. (Financial Times) - CEO salaries flat, take-home pay rising. (Wall Street Journal) OVERNIGHT MARKETS: MIXED Asian markets Nikkei 225 down -174.88 (-1.16%) at 14,921 Topix down -17.68 (-1.41%) at 1,235 Hang Seng up +82.80 (+0.36%) at 23,127 US markets S&P 500 up +8.44 (+0.51%) at 1,659 DJIA up +60.44 (+0.40%) at 15,276 Nasdaq up +9.01 (+0.26%) at 3,472 European markets Eurofirst 300 up +9.04 (+0.73%) at 1,246 FTSE100 up +7.49 (+0.11%) at 6,694 CAC 40 up +16.17 (+0.41%) at 3,982 Dax up +23.31 (+0.28%) at 8,362 Currencies €/$ 1.29 (1.29) $/¥ 102.20 (102.21) £/$ 1.52 (1.52) Commodities ($) Brent Crude (ICE) down -0.39 at 103.29 Light Crude (Nymex) down -0.31 at 93.99 100 Oz Gold (Comex) down -1.80 at 1,395 Copper (Comex) down -0.10 at 326.60 10-year government bond yields (%) US 1.93% UK 1.93% Germany 1.38% CDS (closing levels) Markit iTraxx SovX Western Europe -0.06bps at 89.39bp Markit iTraxx Europe -1.81bps at 94.19bp Markit iTraxx Xover -2.27bps at 385.73bp Markit CDX IG -1.12bps at 71.63bp Sources: FT, Bloomberg, Markit
#END

US Net Long-Term TIC Flows

Location: United States

Date: 15/05/2013

Time: 14:00 - 15:00

Strength: 2/3

Previous: -$17.8B

Notes: The Net Long-Term TIC Flows is released by the US Department of Treasury. TIC stands for Treasury International Capital. It shows in and out flows of financial resources in the United States. The TIC flows is one of the major events in the market, as it is seen by most participants as the Government resource for offsetting the current Trade Deficit. Generally speaking, a high reading is positive (or bullish) for the USD, while a low reading is negative (or bearish).

#END

US Producer Price Index ex Food & Energy (YoY)

Location: United States

Date: 15/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 1.7% / Consensus: 1.7%

Notes: The Producer Price Index ex Food & energy released by the Bureau of Labor statistics, Department of Labor measures the average changes in prices in primary markets of the US by producers of commodities in all states of processing. Those volatile products such as food and energy are excluded in order to capture an accurate calculation. Generally speaking, a high reading is seen as positive (or bullish) for the USD, whereas a low reading is seen as negative (or bearish).

#END

US Producer Price Index (YoY)

Location: United States

Date: 15/05/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 1.1% / Consensus: 0.8%

Notes: The Producer Price Index released by the Bureau of Labor statistics, Department of Labor measures the average changes in prices in primary markets of the US by producers of commodities in all states of processing. Changes in the PPI are widely followed as an indicator of commodity inflation. Generally speaking, a high reading is seen as positive (or bullish) for the USD, whereas a low reading is seen as negative (or bearish).

#END

UK Bank of England Quarterly Inflation Report

Location: United Kingdom

Date: 15/05/2013

Time: 10:30 - 11:30

Strength: 3/3

Previous:

Notes: The Bank of England quarterly publishes a report of the detailed economic analysis and inflation projections on which the Bank's Monetary Policy Committee bases its interest rate decisions, and presents an assessment of the prospects for UK inflation over the following two years. A high reading is seen as positive (or Bullish) for the GBP, whereas a low reading is seen as negative.

#END

UK BoE's Governor King Speech

Location: United Kingdom

Date: 15/05/2013

Time: 10:30 - 11:30

Strength: 2/3

Previous:

Notes: The BoE Chairman Mervyn King was born in 1948. He graduated from Kings College, Cambridge, and Harvard. He gives a press conference as to how the BoE observes the current UK economy and the value of GBP. His comments may determine a short-term positive or negative trend. If he shows a hawkish outlook, that is seen as positive (or bullish) for the GBP, while a dovish is seen as negative (or bearish).

#END