EMU Producer Price Index (YoY)

Location: European Monetary Union

Date: 02/07/2013

Time: 10:00 - 11:00

Strength: 2/3

Previous: -0.2% / Consensus: -0.3%

Notes: The Producer Price Index (PPI) released by the Eurostat is an index that measures the change in prices received by domestic producers of commodities in all stages of processing (crude materials, intermediate materials, and finished goods). Generally, a high reading is seen positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish).

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UK PMI Construction

Location: United Kingdom

Date: 02/07/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: 50.8

Notes: The PMI Construction released by the Chartered Institute of Purchasing & Supply and Markit Economics shows business conditions in the UK construction sector. It is worth noting that the construction sector does not influence, either positively or negatively, the GDP as much as the Manufacturing sector does A result that values above 50 signals appreciates (or is bullish for ) the GBP, whereas a result that values below 50 is seen as negative (or bearish).

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The 6am Cut

6am Cut London Posted 2013-07-02 05:40:36 by Kate Mackenzie Asian stocks were mostly higher following encouraging US ISM manufacturing data and European PMIs released on Monday. The MSCI Asia Pacific was 0.7% higher but the Hang Seng fell 0.4%. (Financial Times)(Bloomberg) TODAY: US factory orders for May; US vehicle sales for June. Rothschild to advise on RBS split: The US government has moved quickly to appoint advisers on the potential split of RBS, with Rothschild set to be named to run the assessment. Rothschild saw off competition from Deutsche Bank and BAML at presentations last week, and its role could be announced as soon as this week, according to people close to the situation. (Financial Times) Australia's central bank left rates on hold, as widely expected: The RBA board held the cash rate at 2.75%, with the governor noting the economy was growing "a bit below trend", but the Australian dollar may continue to fall, which would help rebalance the economy. (Statement) China's credit freeze deliberate, and just badly executed? "The People's Bank of China instigated the cash shortages that catapulted Chinese interest rates to nosebleed highs during the past two weeks because the central bank felt it had no alternative amid what it saw as out-of-control credit growth," says the WSJ, citing an internal PBOC document. However it adds the message was poorly communicated, underlined by the propaganda authorities' efforts to 'tone down' reporting of the cash crunch. (Wall Street Journal)(Financial Times) Japanese pension fund buys into US electricity: "One of Japan's biggest pension funds has joined a Canadian partner to buy a $2bn electricity plant in Michigan, said people familiar with the deal. The investment, which is the first infrastructure acquisition by a Japanese public pension fund, is a sign that the country's massive pension-fund industry is diversifying outside traditional assets such as government bonds." (Financial Times) Noble Corporation eyes move to UK: "Noble Corporation, one of the world's largest offshore drilling contractors, plans to relocate from Switzerland to the UK to benefit from its less restrictive corporate law." The company relocated from the US to Switzerland in 2009. (Financial Times) COMMENT AND CURIOS: - The Winklevoss Bitcoin Trust. For realz. (FT Alphaville) - Chinese banks' valuations are close to their lowest on record after the interbank funding crisis. (Bloomberg) -- Bail-in fears grow for big depositors in euro periphery. (Financial Times) - LME takes aim at warehousing queues that have helped boost profits of Goldman, Glencore, Trafigura. (Financial Times) - The JLo/Turkmenistan/China/oil connection. (Wall Street Journal) - Ruchir Sharma: Back to booms, busts and protests in EMs. (Financial Times) - Japanese husbands' monthly allowance at lowest level since 1982. (Bloomberg) - What the AUD's means for commodities. (Financial Times) - Japan's banks are still addicted to government bonds. (Bloomberg) OVERNIGHT MARKETS: UP Asian markets Nikkei 225 up +125.28 (+0.90%) at 13,978 Topix up +12.63 (+1.10%) at 1,163 Hang Seng down -81.78 (-0.39%) at 20,722 US markets S&P 500 up +8.68 (+0.54%) at 1,615 DJIA up +65.36 (+0.44%) at 14,975 Nasdaq up +31.24 (+0.92%) at 3,434 European markets Eurofirst 300 up +11.41 (+0.99%) at 1,164 FTSE100 up +92.31 (+1.49%) at 6,308 CAC 40 up +28.57 (+0.76%) at 3,767 Dax up +24.70 (+0.31%) at 7,984 Currencies €/$ 1.31 (1.31) $/¥ 99.53 (99.65) £/$ 1.52 (1.52) Commodities ($) Brent Crude (ICE) down -0.07 at 102.93 Light Crude (Nymex) down -0.16 at 97.83 100 Oz Gold (Comex) up +0.90 at 1,257 Copper (Comex) unchanged 0.00 at 3.15 10-year government bond yields (%) US 2.49% UK 2.44% Germany 1.72% CDS (closing levels) Markit iTraxx SovX Western Europe -1.3bps at 95.1bp Markit iTraxx Europe -4.79bps at 114.82bp Markit iTraxx Xover -16.87bps at 459.98bp Markit CDX IG -3.01bps at 84.49bp Sources: FT, Bloomberg, Markit
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US Construction Spending (MoM)

Location: United States

Date: 01/07/2013

Time: 15:00 - 16:00

Strength: 2/3

Previous: 0.4% / Consensus: 0.7%

Notes: The Construction Spending released by the US Census Bureau is an indicator that measures the total amount of spending in the US on all types of construction. The residential construction component is useful for predicting future national new home sales and mortgage origination volume. A high reading is seen as positive, or bullish for the USD, while a low reading is seen as negative, or bearish.

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US ISM Prices Paid

Location: United States

Date: 01/07/2013

Time: 15:00 - 16:00

Strength: 2/3

Previous: 49.5 / Consensus: 51.3

Notes: The Institute for Supply Management ( ISM ) Manufacturing Index shows business conditions in the US manufacturing sector, taking into account expectations for future production, new orders, inventories, employment and deliveries

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US ISM Manufacturing PMI

Location: United States

Date: 01/07/2013

Time: 15:00 - 16:00

Strength: 2/3

Previous: 49.0 / Consensus: 50.1

Notes: The Institute for Supply Management (ISM) Manufacturing Index shows business conditions in the US manufacturing sector It is a significant indicator of the overall economic condition in US. A result above 50 is seen as positive (or bullish) for the USD, whereas a result below 50 is seen as negative (or bearish).

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US Markit Manufacturing PMI

Location: United States

Date: 01/07/2013

Time: 13:58 - 14:58

Strength: 2/3

Previous:

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.

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EMU Consumer Price Index - Core (YoY)

Location: European Monetary Union

Date: 01/07/2013

Time: 10:00 - 11:00

Strength: 3/3

Previous: 1.2%

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.

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EMU Consumer Price Index (YoY)

Location: European Monetary Union

Date: 01/07/2013

Time: 10:00 - 11:00

Strength: 3/3

Previous: 1.4% / Consensus: 1.5%

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).

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UK Consumer Credit

Location: United Kingdom

Date: 01/07/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: �0.524B

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.

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UK Net Lending to Individuals (MoM)

Location: United Kingdom

Date: 01/07/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: �1.4B

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.

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UK Mortgage Approvals

Location: United Kingdom

Date: 01/07/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: 53.71K

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 )

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UK Markit Manufacturing PMI

Location: United Kingdom

Date: 01/07/2013

Time: 9:28 - 10:28

Strength: 2/3

Previous: 51.3

Notes: The Manufacturing Purchasing Managers Index (PMI) released by both the Chartered Institute of Purchasing & Supply and 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 UK. A result above 50 signals is bullish for the GBP, whereas a result below 50 is seen as bearish.

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DE Markit Manufacturing PMI

Location: Germany

Date: 01/07/2013

Time: 8:53 - 9:53

Strength: 2/3

Previous: 49.4 / Consensus: 48.7

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.

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The 6am Cut

6am Cut London Posted 2013-07-01 05:41:44 by Kate Mackenzie Asian stocks outside Japan fell, after the official Chinese manufacturing PMI for June was only just in expansionary territory. However the Japanese Tankan business survey was slightly stronger than expected, boosting Japanese stocks. The yen weakened 0.2%. The MSCI Asia Pacific fell 0.2%. (Bloomberg)(Financial Times) The official Chinese manufacturing PMI fell to 50.1 last month from 50.8 in May. It was the lowest reading in four months and just slightly above expectations. Meanwhile the final HSBC/Markit PMI for June was confirmed at 48.2, the lowest level since September 2012 and down from May's final reading of 49.2. It was in line with a preliminary reading of 48.3 released on June 20. (Financial Times)(Reuters) Optimism outweighed pessimism for Japan's big manufacturers for the first time since September 2011, the country's Tankan survey showed. The survey results for the June quarter were +4 compared to a median economists' estimate of +3 in a Bloomberg survey. "Large companies from all industries plan to increase capital spending 5.5% in the year through March 2014." (Bloomberg) Kuwait plans $5bn UK investment: "The Kuwait Investment Authority is seeking to invest as much as $5bn directly over the next three to five years in infrastructure assets mostly in the UK, echoing asimilar move by Qatar." (Financial Times) Onyx rejects Amgen offer: "Cancer drugmaker Onyx Pharmaceuticals said on Sunday it rejected a roughly $10 billion takeover offer from larger biotechnology company Amgen as too low but still is considering selling itself." (Reuters) Samsung takes lion's share of European smartphones; Android dominates: Almost half of all smartphones sold in major European markets in recent months have been made by Samsung, and Android-based smartphones accounted for more than 70% of sales in the top five European markets in the three months to the end of May, compared with 61% in the same period the year before. (Financial Times) Apple did not pay UK corporation tax last year, according to its latest filings. (Financial Times) COMMENT AND CURIOS: - It's Mark Carney's first day at the BoE, and expectations are high. (Financial Times) - Wolfgang Münchau: The EU will regret terminating banking union plans. (Financial Times) - Investors are moving out of cash, and into bonds. (Financial Times) - Clues to bond market outlook are in who's moving to cash. (Bloomberg) - Bob Geldof says funds management 'criminally non-innovative'. (FTfm) - Apple's great leap into the market of China Mobile's customers. (Wall Street Journal) OVERNIGHT MARKETS: MIXED Asian markets Nikkei 225 up +8.15 (+0.06%) at 13,685 Topix up +9.58 (+0.84%) at 1,143 Hang Seng up +363.21 (+1.78%) at 20,803 US markets S&P 500 down -6.92 (-0.43%) at 1,606 DJIA down -114.89 (-0.76%) at 14,910 Nasdaq up +1.39 (+0.04%) at 3,403 European markets Eurofirst 300 down -5.25 (-0.45%) at 1,152 FTSE100 down -27.93 (-0.45%) at 6,215 CAC 40 down -23.28 (-0.62%) at 3,739 Dax down -31.53 (-0.39%) at 7,959 Currencies €/$ 1.30 (1.30) $/¥ 99.32 (99.12) £/$ 1.52 (1.52) Commodities ($) Brent Crude (ICE) down -0.21 at 101.95 Light Crude (Nymex) down -0.16 at 96.40 100 Oz Gold (Comex) up +10.90 at 1,235 Copper (Comex) up +0.01 at 3.06 10-year government bond yields (%) US 2.51% UK 2.44% Germany 1.73% CDS (closing levels) Markit iTraxx SovX Western Europe +0.08bps at 96.4bp Markit iTraxx Europe +2.53bps at 119.61bp Markit iTraxx Xover +4.06bps at 476.85bp Markit CDX IG +1.56bps at 87.5bp Sources: FT, Bloomberg, Markit
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