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IMF urged the EU to take the necessary measures to prevent Europe from falling deeper into the crisis

Friday, June 22, 2012 3:38 AM GMT

Good Morning ,

- Equity markets and risk trades continued to tumble overnight after weak
data yesterday across the globe. The IMF also urged the EU to take the
necessary measures to prevent Europe from falling deeper into the crisis.
EURUSD trades on one weak lows (1.2540 so far).

- Stocks: Nikkei -0.26 %, Hang Seng -1.08 %, Shanghai Composite -1.40 %,
Dow Jones -1.96 %, S+P500 -2.23 %

- The euro area crisis has reached a "critical stage" and member nations must
make a "strong commitment" to the shared currency to stop the plunge in
investor confidence, the International Monetary Fund said in a report that
recommended issuing common debt as one solution.

- Luxembourg PM Juncker said the results of the so-called troika's review
of Greece are needed before any decision is made on adjustments to the
agreement covering its second bailout.

- Italy is missing its target to lower the budget deficit to 1.7 percent of GDP
in 2012 and more spending cuts are needed to achieve the goal, Treasury
Undersecretary Gianfranco Polillo said on Thursday. According to a transcript
of Polillo's speech to the lower house of parliament, he said that Italy was
missing its 2012 target by four billion euros, which would have to be
compensated by extra spending cuts.

- Ratings agency Moody's downgraded 15 of the world's biggest banks on
Thursday, lowering credit ratings by one to three notches to reflect the risk
of losses they face from volatile capital markets activities, but banks
criticized the move as backward looking.

- Spain's banks would need as much as 62 billion euros in capital to withstand
a worst-case economic scenario, according to two consulting firms hired by
the government to conduct stress tests on the lenders.

- Bank of England policy maker Martin Weale said cooling inflation is creating
"appreciably more room" to add to asset purchases as policy makers shift
toward restarting their stimulus program.

- China's banking regulator proposed keeping a cap on local government loans to
curtail defaults while encouraging funding for railways, roads and affordable
homes, a person with direct knowledge of the matter said.

- no major US Data
- 1830 Fed Pianalto
- 0845 France Wages Q1
- 1000 Germany IFO June
- 1000 Italy Consumer Confidence
- 0900 Ecofin Meeting
- 1400 Monti/Merkel/Rajoy/Hollande Meeting
- 2000 Monti/Merkel/Rajoy/Hollande Press Conf

- 1430 Canada Retail Sales Apr
- 1000 Switzerland KOF June Economic Forecast

 (CET)

Have a nice weekend !

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