DE Markit Manufacturing PMI

Location: Germany

Date: 03/06/2013

Time: 8:53 - 9:53

Strength: 2/3

Previous: 48.1 / Consensus: 49.0

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 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