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Market View

Moody's cut the outlook of the European Financial Stability Facility (EFSF) to negative

Wednesday, July 25, 2012 3:40 AM GMT

Good Morning ,

- EURUSD dropped to 1.20526 in Asia on the well know fears. USDCHF is about to
break 1.0000 (high so far today 0.99639).

- Stocks: Nikkei -1.73 %, Hang Seng -0.61 %, Shanghai Composite -0.18 %,
Dow Jones -0.82 %, S+P500 -0.90 %

- Moody's Investors Service on Tuesday cut the outlook for the credit rating
of the European Financial Stability Facility (EFSF) to negative from stable,
warning that the rescue fund would lose its Aaa rating.

- A full-blown Spanish bailout can be averted if the European Central Bank
starts buying the nation's bonds in large quantities, the head of the
Organization for Economic Cooperation and Development said. Europe should
deploy all of its instruments "but mostly the ECB," OECD Secretary General
Angel Gurria said in a Bloomberg Television interview in London yesterday.
"There is the bazooka."

- German Finance Minister Wolfgang Schaeuble and his counterpart from Madrid
said Spain's borrowing costs don't reflect the strength of its economy as
they pledged to work toward deeper integration to fight the debt crisis.

- A Greek insolvency and euro exit would cost Germany as much as 82 billion
euros Bild reported, citing the Ifo research institute.

- Federal Reserve Governor Sarah Bloom Raskin said the Fed next week will
debate whether to begin a program to speed economic growth and reduce
unemployment through large-scale purchases of bonds. Another round of
Treasury purchases "is something that will be debated in the upcoming FOMC
meeting," Raskin said yesterday in response to audience questions after a

- Japan Data Recap                     Period     Survey     Actual     Prior       Revised
* Merchnds Trade Balance            June      -140.0b      61.7b   -907.3b    -910.4b
* Merchnds Trade Exports yoy       June        -3.0          -2.3       10.0
* Merchnds Trade Imports yoy       June        1.1          -2.2         9.3

- Japan--Bank of Japan Deputy Gov. Hirohide Yamaguchi said Wednesday
that the central bank is ready to take further monetary easing measures if
the Japanese economic recovery stalls.

- Australia Data Recap                        Period       Survey      Actual      Prior     
* CPI qoq                                            Q2           0.6 %      0.5 %     0.1 %
* CPI yoy                                            Q2           1.3 %      1.2 %     1.6 %
* Conference Board Leading Index         May         - 0.4 %    -1.4 %    -1.3 %
* DEWR Internet Skilled Vacancies       June            -           -1.8 %    -0.7 %

- Inflation in Australia is moderating and contained and is a critical element
of rock-solid economic fundamentals that provide the Reserve Bank of
Australia with the maximum flexibility to cut interest rates, Treasurer
Wayne Swan said Wednesday.

- The International Monetary Fund said China's slowing economy faces
significant downside risks and relies too much on investment, urging leaders
to boost consumption and channel citizens' savings away from housing. The IMF
repeated an assessment that the yuan is "moderately" undervalued, which China
disputed, the Washington-based lender said in an annual review. The fund
omitted an estimated range for the currency's undervaluation that was
included in an earlier draft, according to two officials at the fund who had
seen the previous language and spoke on condition of anonymity.

- Singapore's growth may fall below 1 percent should the U.S. and Chinese
economies slump and the European crisis worsen significantly, the central
bank said as it bolstered reserves to counter market turmoil. The island's
current gross domestic product growth forecast of 1 percent to 3 percent is
based on assumptions that there is no recession in the U.S., no significant
escalation of the euro zone crisis and no hard landing in China, Monetary
Authority of Singapore Managing Director Ravi Menon said today.

- 1600 US New Home Sales
- 1000 Germany IFO July
- 1000 Italy Consumer Confidence July
- 1800 France Jobseekers Netchange June
- 1800 France Total Jobseekers June
- 1345 ECB Noyer
- 1130 Italy 2017 Bonds Auction
- 1030 UK GDP Q2 A
- 1030 UK Index of Services May
- 1200 UK CBI Trends Total Orders July
- 1200 UK CBI Trends Selling Prices July
- 1200 UK CBI Business Optimism July
- 2300 RBNZ Official Cash Rate - no change expected


Have a nice day !

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