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Market View

The euro weakened to an 11-year low against the yen

Monday, July 23, 2012 3:31 AM GMT

      Good Morning ,

§Asian stocks fell, while the euro weakened to an 11-year low against the yen and Treasury 10-year yields dropped to a record as a Chinese central bank board member warned of slowing growth and on concern Greece may exit the currency bloc. Commodities  declined.

§Greece retakes its position at the heart of the European debt crisis this week as its creditors assess how far off course the country is from bailout targets, raising again the specter of its exit from the euro. Greece’s troika of international creditors -- the European Commission, the European Central Bank and the International Monetary Fund -- will arrive in Athens tomorrow amid doubts the country will meet its commitments and reluctance among euro-area states to put up more funds should it fail.

§Greek PM says economy is in a great depression

§Germany’s Der Spiegel magazine reports that IMF doesn’t want provide further aid to Greece

§Germany's CSU asks Greek govt to pay officials in Drachmas not Euros: Die Welt

§ECB President Draghi told French newspaper Le Monde over the weekend that euro-zone as a whole not at risk of a recession. Sees growth improving towards year end. Assures to take action if it perceives risk of deflation. Suggests senior creditors should be involved in the case that a bank must be liquidated. Opines monetary policy and bank oversight activities must be kept separate. Euro is “absolutely not” in  danger  .

§ECB Coeure: Those who underestimate political commitment to Euro do so at their own risk

§Tiny Murcia was on course on Sunday to be the second Spanish region to request help from the central government to keep it afloat, as media reported half a dozen local authorities were ready to follow in the footsteps of Valencia. How Spain's 17 indebted autonomous regions, locked out of international debt markets, refinance 36 billion euros in debt this year has been a major source of concern for investors ever since they missed deficit targets last year. Spain's central government set up an 18 billion euro ($22 billion) fund earlier this month to ease their funding pain.

§Egan-Jones downgrades Spain's sovereign rating to CC+ from CCC+

§Italy's divided political parties restated their support for Prime Minister Mario Monti at the weekend, seeking to calm fears of instability that helped drive Rome's borrowing costs to dangerous levels last week. Monti's office dismissed an un sourced report in the Corriere della Sera that he was considering an early election in the autumn and the parties that back his technocrat government ruled out withdrawing their support in parliament

§Japanese Finance Minister Jun Azumi said on Monday he was watching currency moves closely and was prepared to take decisive steps against speculative and excessive yen gains. Azumi, speaking at a news conference, said the yen's rise against the euro reflects the fact that concerns about Europe's sovereign debt crisis and economic fundamentals remain

§Japan's Govt reiterates the economy is recovering moderately, but with global slowdown a risk

§BOJ Shirakawa: To pursue powerful monetary easing, but latter alone cannot change sentiment

§Australia’s producer price index eased to 1.1% y/y in Q2 from 1.4%

§China's growth may decelerate further to 7.4% in Q3 vs 7.6% in Q2: PBOC advisor

§Specs raise long USD bets, Euro shorts in week to July 17

§4 small US banks closed, bringing total failures this year to 37

TODAY'S FIGURES

 

14.30

 

US National activity index

16.00

 

EZ consumer confidence

     

(CET)

Have a nice week !

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