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IMF Zhu Min - .....The euro is safe "

Tuesday, September 11, 2012 3:40 AM GMT


   Good Morning,


§EUR is off the highs again (1.2794) after it rallied on comments by IMF Zhou who affirmed support for Europe and ECB's bond buying programme. Generally risk is a tad lower than yesterday. A bit more event risk is building up for tomorrow, we get the German Const. Court decision at 10.00 and additionally the Greek Fin. Minister will travel to Frankfurt to meet the Troika heads in the afternoon.


§Stocks: Nikkei -0.99 %, Hang Seng -0.83 %, Shanghai Composite -1.24 %, Dow Jones -0.39 %, S+P500 -0.61 %


§International Monetary Fund Deputy Managing Director Zhu Min said Tuesday that the world should have confidence in the euro as a currency. Mr. Zhu, speaking on a panel at the World Economic Forum in Tianjin, China, said the proportion of euros in global currency reserves has risen by 10 percentage points over the course of the euro-zone debt crisis. "I know many people here have euros in their pocket...The euro is safe," he said. Mr. Zhu also said that the IMF strongly supports the bond-buying program unveiled by the European Central Bank last week, citing the need to provide liquidity to the market.


§Prime Minister Mariano Rajoy said he won't allow the European Union or the European Central Bank to stipulate how Spain narrows its budget deficit as a condition for buying the country's bonds. Rajoy pledged that Spain will meet its targets for reducing its budget shortfall this year and next and defended his government's right to set spending limits on individual policies, in his first television interview since taking office in December.


§Greek Finance Minister Yannis Stournaras will meet with the heads of a euro area, European Central Bank and International Monetary Fund mission at 4:00 p.m. Athens time on Sept. 12, state-run Athens News Agency reported, without citing anyone.


§Billionaire investor George Soros said German-led austerity demands worsen the debt crisis and risk pushing Germany into a depression that's already taking hold of the euro area's rim.


§Japan's finance minister on Tuesday voiced concerns over the growing impact of a slowdown in Europe, the U.S. and China on the Japanese economy, but said more study is needed before the government determines the need for additional stimulus steps.


§Sentiment among large Japanese companies improved for the first time in four quarters in the July-September period, a government survey showed Tuesday. The index on large firms' mood, which measures the percentage of companies saying economic conditions are better than the previous quarter minus those saying they are worse, stood at +2.2 in the third quarter compared with -3.1 in the previous quarter.


§NZ  Data Recap                           Period     Survey     Actual    Prior    Revised

* NZ Card Spending Retail mom    Aug       0.8 %       3.0 %   -0.6 %    -1.1 %

* NZ Card Spending Total mom      Aug       1.0 %        2.4 %   -0.8 %   -1.4 %

* QV House Prices yoy                     Aug          -             4.8 %    4.6 %         -


§Capital adequacy requirements will strengthen ability of N.Z. banks to absorb losses, RBNZ says. * New standards under Basel III framework to go live on Jan. 1, 2013 * Banks' overall capital levels generally already exceed new requirements, said Deputy Governor Grant Spencer.


§Australia Data Recap             Period      Survey     Actual    Prior     Revised

* NAB Business Conditions       Aug              -                1        -3              –

 * NAB Business Confidence     Aug               -              -2         4              3


§China Data Recap      Period      Survey     Actual     Prior       

* New Yuan Loans           Aug        600m      703.9b   540.1b


§U.K. housing gauges continue to point to a "sluggish" market where prices are still declining, the Royal Institution of Chartered Surveyors said. A measure of demand fell to minus 9 in August from minus 4 in July, London-based RICS said in a report today, citing a monthly poll of property surveyors. A house- price index rose to minus 19 from minus 23. A reading below zero means more surveyors saw price drops than gains last month.



US NFIB Small Business Optimism Aug


US Trade Balance July


US IBD/Tipp Economic Optimism Sep


Germany Wholesale Price index Aug


ECB Asmussen


UK Trade Balance Jul


BOE McCafferty questioned by UK lawmakers


BOE Miles


Canada Housing Starts Aug


Canada Intl. Merchandise Trade Jul



Have a nice day !

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