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Risk is weaker across the board. Main event of this week is going to be the EU leader meeting 28/29 June

Monday, June 25, 2012 3:38 AM GMT

Good Morning ,

- Risk is weaker across the board. Main event of this week is going to be
the EU leader meeting 28/29 June. Probably not too much can be expected
following the outcome of the EU4 meeting on Friday and comments by German Fin
Min Schaeuble yesterday.

- Stocks: Nikkei -0.67 %, Hang Seng +0.07 %, Shanghai Composite -0.75 %,
Dow Jones +0.53 %, S+P500 +0.72 %

- German Chancellor Angela Merkel resisted pressure on Friday for common euro
zone bonds or a more flexible use of Europe's rescue funds but agreed with
leaders of France, Italy and Spain on a 130 billion euros package to revive
growth.

- German Chancellor Angela Merkel will meet French President Francois Hollande
for dinner in Paris on Wednesday, June 27, to prepare for the European Union
leaders' summit that begins the next day, the Chancellery said in a
statement.

- President Barack Obama should focus on the U.S. budget deficit rather than
advising Europeans on how to stem the euro area's debt crisis, German Finance
Minister Wolfgang Schaeuble said.

- German Finance Minister Wolfgang Schaeuble said there can't be any joint
euro-area debt "as long as national states decide" on government spending.

- A "substantial" amount of quantitative easing by the Bank of England is
needed to kick-start Britain's "stalled" economy, BoE policymaker David Miles
said in an interview with the Financial Times.

- The Bank of England may be putting the economy at risk by persisting with low
interest rates and money printing, according to the world's central banking
supervisor. In its annual report, Bank for International Settlements warned
that artificially low rates and inflated asset prices could also be holding
back growth by masking lenders' bad debts and deterring them from cleaning up
their balance sheets.

- The Swiss National Bank could maintain its cap on the franc for some time if
economic growth remains subdued, SNB Dantine said, adding that the limit on
the currency could not be changed easily. In an interview published on
Saturday in French-language newspaper Le Temps, Jean-Pierre Danthine said the
question of whether to cease the cap was "totally premature" and reaffirmed
the SNB's commitment to intervene in unlimited amounts to make the limit
stick.

- A tri-partisan agreement over Japan's consumption-tax hike is credit positive
as it marks one of the country's first serious attempts in years to address
its high fiscal deficits and government debt, Moody's Investors Service
said Monday. However, Japan won't achieve "its ultimate goal of eliminating
the primary deficit by 2020 without implementing further reforms" beyond
the consumption-tax hike, Moody's analysts wrote.

- Some Chinese economic indicators are being inflated by roughly 1 or 2
percentage points as local officials falsify statistics to mask the extent of
the nation's slowdown, the New York Times reported, citing company executives
in China and Western economists.

- IMM Positions: EUR -141k vs -195k, JPY 15k vs 12k, GBP -17k vs -23k,
CHF -7k vs -33k (small CHF short since mid April), CAD 8k vs 10k, AUD -4k
vs -45k, NZD -2k vs -4k

- M&A: Anheuser-Busch InBev NV is close to buying the remainder of Mexico's
Grupo Modelo SAB for more than $12 billion, according to a person with
knowledge of the matter. The purchase may be announced as soon as this week,
said the person, who asked not to be identified as the discussions are
confidential. The deal isn't completed and may still fall through, the person
said. (Bloomberg)

- 1430 US Fed Chicago Fed Nat Activity Index May
- 1600 US New Home Sales May
- 1630 US Dallas Fed Manf. Activity June
- no major European data
- 1530 ECB announces bond purchases
- 1800 ECB Asmussen

 (CET)

Have a good start !

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