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EUR-cross selling went on overnight and the pressure remains ahead of the US Nonfarm Payroll this afternoon

Friday, July 6, 2012 3:22 AM GMT

Good Morning ,

- EUR-cross selling went on overnight and the pressure remains ahead of the
US Nonfarm Payroll this afternoon. There was not too much news flow overnight.
There were interesting comment from ECB Weidmann who said the results from
last month's EU leader meeting didn't bring any clarity.

- Stock: Nikkei -1.00 %, Hang Seng -0.44 %, Shanghai Composite
Dow Jones -0.36 %, S+P500 -0.47 %

- The International Monetary Fund will reduce its estimate for the expansion of
the global economy this year, due to be announced in 10 days, Managing
Director Christine Lagarde said.

- Italy's government late Thursday approved 4.5 billion euros in spending cuts
for 2012 aimed at slashing the size of Italy's bloated public sector and
delaying a new tax increase until after the first half of 2013. Spending cuts
for 2013 will total EUR10.5 billion. The cuts will total EUR11 billion for
2014.

- ECB Weidmann said the results of last month's European summit didn't bring
any clarity as to the direction the monetary union is taking. "A definitive
judgment is difficult to make, because the decisions taken leave a lot to
interpretation," Weidmann said. "It remains unanswered whether the Maastricht
framework is still valid or whether more integration -- including giving up
national sovereignty -- is being sought."

- ECB Liikanen said the central bank's interest rate cut to record-low 0.75
percent yesterday shows the bank "is able to use the tools it has." The
outlook for slower inflation gave the ECB "room" to reduce its benchmark rate
and the lower rate will boost purchasing power, Liikanen said.

- Japan's government could run out of money to fund this fiscal year's budget
by the end of October, finance minister Azumi said, as a standoff in
parliament over a deficit financing bill threatens to wreak havoc with the
country's finances.

- Japan's prime minister Noda told the visiting head of the International
Monetary Fund on Friday that the yen's strength is causing the nation's
economy serious damage, another indication that the currency's modest
weakening over recent weeks hasn't done much to ease Tokyo's concerns.

- Japanese Finance Minister Jun Azumi said on Friday there is no change in the
government's view that a strong yen poses risks to the economy, and the
government is prepared to respond appropriately to currency moves.

- President Barack Obama expanded U.S. trade complaints against China, accusing
the nation of imposing unfair taxes on American vehicles, mostly from General
Motors Co. and Chrysler Group LLC.

- Australia Data Recap                Period    Survey   Actual   Prior
* AiG Perf of Construction Index     June         -        34.8    34.7

- China will have difficulty meeting its 10 percent trade growth target this
year, Vice Premier Wang Qishan said in published comments, underlining
challenges to supporting critical pillars for the world's second-biggest
economy.

- The New Zealand government Friday welcomed "encouraging" indications of a
shrinking deficit, but sounded a cautious note over the state of the global
economy. Figures released by the New Zealand Treasury showed the deficit for
the 11 months ending May at 5.9 billion NZ dollars, which was 1.1 billion NZ
dollars, or 16 percent, lower than forecast in the government's Budget in May.

- 1430 US Nonfarm Payrolls June
- 1430 US Unemployment Rate June
- 0845 France Trade Balance May
- 0900 Spain Industrial Output May
- 1200 Germany Industrial Production May
- 0910 ECB Liikanen
- 0945 ECB Asmussen
- 1630 ECB Noyer
- 1630 ECB Coeure
- 0900 Switzerland Currency Reserves June
- 0915 Switzerland CPI June
- 1030 UK PPI June
- 1000 Norway Industrial Production May
- 1000 Norway Manufacturing Production May
- 0800 Sweden Unemployment Rate June

(CET)

Have a nice weekend !

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