Week of November 20, 2011 thru November 26, 2011

US News Events Calendar


--Meetings & Events of Interest to Subscribers

DATE GMT / EST EVENT

------------------------------------------------------------------------

28-Nov - President Barack Obama hosts semiannual US-EU summit with European Council President Herman van Rompuy and European Commission President Jose Manuel Barroso in Washington.

29-Nov 1630/1130 Federal Reserve Vice Chair Janet Yellen remarks on the global recovery at San Francisco Fed's Asia Economic Policy Conference in San Francisco.

29-Nov 0100/2000 Minneapolis Federal Reserve Bank President Narayana Kocherlakota speech on monetary policy to the

EU's Rehn: Expect Italy To Implement More Reforms In Future


ROME (MNI) - Structural and fiscal reforms planned by Italy's new government are a "step in the right direction" and more reforms are expected in the future, EU Economics and Monetary Affairs Commissioner Olli Rehn said on Friday.

"This package of reforms is a positive step in the right direction, but I expect that more will follow in due course," Rehn said.

Praising the efforts of Prime Minister Mario Monti, Rehn said that "decisions recently taken and currently in the pipeline definitely reinforce the stability culture in Italy."

Italy has the assets it needs to overcome the crisis, he said.

Commenting in general terms, Rehn said that fiscal consolidation should focus more on expenditure cuts than revenue increases.

FXWRAP: Dollar Gains In Abbreviated Post-Thanksgiving Session


NEW YORK, Nov 25 (MNI) - The dollar was able to rack up modest gains vs. the euro and the yen in an abbreviated trading session Friday, the euro undercut but ongoing eurozone tensions and the yen weakened slightly by a modest round of stop-loss driven dollar buying.

Euro-dollar was changing hands at $1.3230 in afternoon dealings Friday near the 1 p.m. EST close of currency futures trading in Chicago and the 1 p.m. EST close of stocks in the U.S., financial markets enjoying an abbreviated session after the Thanksgiving holiday.

Euro-dollar was holding in the lower half of the day's $1.3213/1.3298 range after beginning the session around $1.3250.

Germany,Finland,Netherlands Want Stronger IMF Role In Crisis


BERLIN (MNI) - German Finance Minister Wolfgang Schaeuble, Dutch Finance Minister Jan Kees de Jager and Finnish Finance Minister Jutta Urpilainen said Friday at a joint press conference here that they favor an increase of the role of the IMF in the Eurozone debt crisis.

"We need to build up the firewall and today we agreed that one option to do that is also to strengthen the role of the IMF," Urpilainen said.

"We favor an enhanced and increased capacity of the IMF which, for example, could be done by bilateral loans with all countries, European countries and non-European countries," de Jager explained.

US Swaptions: Off Early Highs As Swaps Retrace Off Wides


CHICAGO, Nov 25 (MNI) - Over-the-counter swaption volatility opened higher on Friday's shortened post-holiday session before retreating by midmorning, the lack of delivered volatility in rates markets winning out over any potential bad news for markets over the weekend.

ECB Paramo: If Need To Do More Liquidity Steps We Will


LONDON (MNI) - The European Central Bank will take more steps to enhance market liquidity if it needs to do so but at present it does not believe it is required, Executive Board member Jose Manuel Gonzalez-Paramo said.

Speaking to reporters here Paramo said "If we need to do more we will" adding "this is not our assessment at this point."

At the moment the market is "awash with liquidity", he said.

The real problem according to the ECB official is "segmentation" with many banks preferring to make deposits overnight with the central bank rather than lend to other banks.

ECB Paramo: Greek Contagion Eroding Core's Credit-Worthiness


FRANKFURT (MNI) - ECB Executive Board member Jose Manuel Gonzalez-Paramo said Friday that contagion from the Greek debt crisis had now spread to the core of Europe and was even eroding the credit-worthiness of Germany.

In the text of a speech delivered in London, Paramo said: "There is a growing body of evidence which shows that contagion plays an important role in the current crisis gripping the euro area across sovereigns, across banks, and between the two."

Paramo said the spillover from the Greek sovereign debt crisis explained the sharp deterioration in the perceived credit-worthiness of the other countries under EU/IMF programmes.

"Since July, this applies also to some of the larger euro area countries such as Italy and even Germany," he said.

Credit Default Swaps: Global Indexes At Or Near All-Time Wides


CHICAGO, Nov 25 (MNI) - Global benchmark indexes on both the European Union and U.S. investment-grade credit default swaps pushed wider for the fourth session this week resulting in all indexes either establishing new or testing new all-time wides early Friday.

In early New York trading, the IG17 was wider by 1.25 bps at 146.5-147.75 bps, its widest since October 4 and within striking distance of the all-time wide of 149.75 bps set on October 3.

This move came despite a 56 point gain on futures contracts on the Dow Jones Industrials.

All major indexes in the iTraxx family were wider and exceedingly close to the recent all time wides.

Credit Default Swaps: Global Indexes At Or Near All-Time Wides


CHICAGO, Nov 25 (MNI) - Global benchmark indexes on both the European Union and U.S. investment-grade credit default swaps pushed wider for the fourth session this week resulting in all indexes either establishing new or testing new all-time wides early Friday.

US Swaps: Reverse Early Wides As Equities Recover


CHICAGO, Nov 25 (MNI) - Spreads gradually moved off early wides Friday, near the upper end of 18-month wides, coinciding with stronger equities in early trade.