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Moody's changed the outlook on the Euroarea...

Tuesday, September 4, 2012 3:50 AM GMT

Good Morning,

§Aussie managed to recover after RBA left rates unchanged - range so far 1.0224-1.0285, also EURUSD is off the low - range 1.2581-1.2629 - the fact that Moody's changed the outlook on the Euroarea didn't have any significant outlook. Switzerland's GDP in the second quarter was much weaker than expected.

§Stocks: Nikkei -0.22 %, Hang Seng -0.20 %, Shanghai Composite -0.26 %, Dow Jones +0.69 %, S+P500 +0.51 %

§Moody's Investors Service has changed its outlook on the Aaa rating of the European Union to negative, warning it might downgrade the bloc if it decides to cut the ratings on the EU's four biggest budget backers: Germany, France, UK and Netherlands. "The negative outlook on the EU's long-term ratings reflects the negative outlook on the Aaa ratings of the member states with large contributions to the EU budget: Germany, France, the UK and the Netherlands, which together account for around 45 percent of the EU's budget revenue," the ratings agency said.

§ECB Governing Council Member and Bundesbank President Jens Weidmann is isolated in his resistance against Mario Draghi's plan to purchase bonds from southern European nations, Het Financieele Dagblad reports, citing unidentified people. * Other ECB members including Klaas Knot, Erkki Liikanen aren't opposed to plan, paper reports.

§Spain Fin Min in report: * Need clear condition before aid application * More clarity expected in coming weeks * ECB help no substitute for fiscal reforms * ECB action may be needed to show Euro irreversible

§Spain's Andalucia seeks Eur 1bn from Government, becoming 4th region to ask for state aid

§Switzerland posted a much weaker than expected GDP for the second quarter and the previous numbers have been revised down also.

§Switzerland Data Recap Period Survey Actual Prior Revised * GDP qoq Q2 0.2 % -0.1 % 0.7 % 0.5 % * GDP yoy Q2 1.6 % 0.5 % 2.0 % 1.2 %


§Australia maintained interest rates unchanged. Reserve Bank of Australia Governor Glenn Stevens and his board left the overnight cash-rate target at 3.5 percent, according to a statement today in Sydney. While domestic consumption was "quite firm" in the first half of the year, commodity prices have fallen "sharply" in recent months and China's growth outlook is more uncertain, he said. Stevens said the local dollar's strength was greater than the central bank anticipated. "The exchange rate has declined over the past month or two, though it has remained higher than might have been expected, given the observed decline in export prices and the weaker global outlook," he said.

§Australia Data Recap Period Survey Actual Prior Revised * Current Account Balance Q2 -12200m -11801m -14892m -12997m * Aust. Net Exports of GDP Q3 0.6 0.3 -0.5

§Fortescue Metals Group Ltd., Australia's third-biggest iron ore producer, cut its full-year capital spending forecast by 26 percent to $4.6 billion, joining rivals in delaying expansions as commodity prices decline.

§NZ Data Recap Period Survey Actual Prior Revised * ANZ Commodity Price Aug - 0.5 % -0.5 % -0.4 %



US ISM Manufacturing Aug


US Construction Spending July


US Total/Domestic Vehicle Sales Aug


Eurozone PPI July


Ger Fin Min Schaeuble, ECB Asmussen, SPD Chairman Gabriel attend




UK Construction PMI Aug



Have a good day

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