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Clear statement from the Eurozone Finance Ministers to keep Greece in the Euro

Tuesday, May 15, 2012 3:22 AM GMT

Good Morning ,

- No progress made in Greece, clear statement from the Eurozone Finance
Ministers to keep Greece in the Euro and a lot of data today in Europe and
the United States: Despite the standstill in Greece, multiple bank downgrades
in Italy, volatility squeeze - the EURUSD was holding well overnight (low
1.2814). The AUDUSD dropped to 0.9945 on the back of the dovish RBA minutes.

- Stocks: Nikkei -0.74 %, Hang Seng +0.32 %, Shanghai Composite -0.82 %,
Dow Jones -0.98 %, S+P500 -1.11 %

- Euro zone finance ministers dismissed talk of Greece leaving the euro zone as
"propaganda and nonsense" on Monday, but said the country had to respect the
terms of the bailout programme agreed with the EU and the International
Monetary Fund. If Greece can form a government and that government signs up
to the bailout agreement, then it is possible some of the targets in the
programme could be softened, the chairman of the euro zone finance ministers,
Jean-Claude Juncker, said. "I don't envisage, not even for one second, Greece
leaving the euro area. This is nonsense; this is propaganda," Juncker, who
also serves as Luxembourg's prime minister, told reporters, dismissing those
who threaten Greece with expulsion.

- Greece's president will ask politicians today to stand aside and let a
government of technocrats steer the nation away from bankruptcy, but leftists
have already rejected the proposal and look set to force a new election they
reckon they can win.

- The ratings agency Moody's Monday lowered the credit ratings for 26 Italian
banks, including industry giants UniCredit and Intesa Sanpaolo. The outlook
for the banks is "negative," Moody's said, an indication that further
downgrades were likely. Moody's explained that the move reflected the poor
state of Italy's economy.

- Portugal is quickly adjusting its economy to a more frugal reality under a
€78 billion bailout package, but the program's success doesn't guarantee the
country will be able return to markets next year, the Bank of Portugal said.
The Portuguese government has repeatedly said it will meet all its bailout
requirements, but has acknowledged that trouble in the rest of the euro zone
could make it difficult to win financing from the markets next year.

- France Data Recap         Period   Survey   Actual      Prior
* CPI yoy                         Apr       2.5 %    2.4 %     2.6 %
* GDP qoq                        Q1       0.0 %    0.0 %     0.1 % rev
* GDP yoy                        Q1       0.5 %    0.3 %     1.2 % rev

- Australia's central bank had cut interest rates by an aggressive 50 basis
points this month because growth and inflation had cooled and lending rates
faced by the community had increased a little. Minutes of the RBA May 1
policy meeting said while the mining boom was continuing to gain momentum,
overall growth was weighed down by weakness in other sectors of the economy.
"Given recently accumulated information on demand and the rate of inflation,
together with the revised forecasts...members considered it appropriate for
monetary policy to be eased," the minutes said.

- Australia Data Recap                    Period   Survey   Actual    Prior
* New Motor Vehicle Sales yoy          Apr          -        7.3 %    4.0 %

- Japan Data Recap                          Period   Survey   Actual    Prior
* Consumer Confidence                     Apr        40.8       40.0     40.3

- China's foreign direct investment inflows dropped 2.4 percent in the first
four months of 2012 versus last year, the longest period of declining inflows
since the depths of the global financial crisis and a sign of external
economic headwinds. The Commerce Ministry said on Tuesday that the country
drew $37.9 billion in foreign direct investment (FDI) between January and
April, down from $38.8 billion attracted in the same period in 2011. April's
inflow alone was $8.4 billion, down from $8.5 billion a year ago.

- 1430 US CPI Apr
- 1430 US Empire Manufacturing May
- 1430 US Retail Sales Apr
- 1500 US TIC Data Mar
- 1600 US Business Inventories Mar
- 1600 US NAHB Housing Market Index May
- 1530 Fed Duke
- 0800 Germany GDP Q1
- 0845 France Nonfarm Payrolls Q1
- 1100 Eurozone GDP Q1
- 1100 Germany ZEW May
- 1100 Eurozone ZEW May
- 1030 UK Trade Balance Mar
- 1000 Norway Trade Balance Apr

   (CET)

Have a nice day !

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