Week of January 8, 2012 thru January 14, 2012

Boston Fed's Rosengren: More MBS Buying Would Help Housing


(MNI) - Boston Federal Reserve Bank President Eric Rosengren said Friday the Fed should be looking for further ways to stimulate the economy and in particular endorsed additional purchases of mortgage backed securities.

Calling the recovery "painfully slow," "anemic" and "tepid," despite recent improvements, Rosengren called for further monetary easing, supplemented by policies targeted to address hard-hit housing and small business sectors, in remarks prepared for delivery at an "Economic Summit and Outlook" event in Hartford, Connecticut,

Rosengren is not a voting member of the Fed's policymaking Federal Open Market Committee this year, but he will be contributing to the FOMC's federal funds rate forecast for the first time at the Jan.

FinSys Update:US Econ Adds 200k Jobs In Dec,Unemp Down To 8.5%


WASHINGTON (MNI) - The following are top events and news reported Friday in the global financial system by Market News International:

* December's jobs report, above expectations in every major respect, included a 42,000-job surge of courier employment that seems to correlate with online sales -- and which tend to disappear after the holidays. The Bureau of Labor Statistics Friday reported non-farm payrolls grew by 200,000, the most since September, and without including government, were up 212,000. The revision of the prior two months netted a modest 8,000 decline. The December unemployment rate also was better than expectations, at 8.5%, a two-tenths decline from the upwardly revised November rate of 8.7% and the lowest since February 2009.

Wht Hse's CEA,DoL'S Solis: Labor Market Growing Stronger


WASHINGTON (MNI) - The following are the post-jobs report statements from the chairman of the Council of Economic Advisers and the Secretary of Labor Friday:

WASHINGTON, DC - Alan B. Krueger, Chairman of the Council of Economic Advisers, issued the following statement today on the employment situation in December. You can view the statement HERE.

Posted by Alan B. Krueger:

Today's employment report provides further evidence that the economy is continuing to heal from the worst economic downturn since the Great Depression. It is critical that we continue the economic policies that are helping us to dig our way out of the deep hole that was caused by the recession that began at the end of 2007.

Next Wk: Retail Sales, Beige Bk, Trade, Import Prices, U/Mich


PRINCETON (SMRA) - The data calendar in the week ahead is not particularly busy, and includes few major reports. The two that are most likely to capture market attention are retail sales for December and the Fed's Beige Book. There are also numerous Fed officials scheduled to give public remarks, and it will be the first chance to hear many of them since the release of the FOMC meeting minutes from December 13, and the expectation of an evolution in how the Fed transmits its intentions for monetary policy.

Economic Data

The data on retail and food sales in December at 8:30 ET on Thursday will round out the available numbers for consumer spending in the fourth quarter, and help firm up expectations for growth as 2011 comes to an end.

US$ CREDIT SUPPLY PIPELINE - January 6, 2012


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 1/6 BM Bank of Montreal (Aa2/A+) 5 BMO/GS/JPM/MS Talk+175 area 1/5 750 *Banco Bradesco (Baa1/BBB) 5 T+361.7 BB/BAML/BRAD/ 144A Reg S w/o Reg Rights BTG/C/HBSC 4.50% 1/5 850 *Pernod Ricard (Baa3/BBB-) 5 T+210 JPM/RBS 101 CoC Put, 144A Reg S 1/5 800 *Pernod Ricard (Baa3/BBB-) 10 T+230 JPM/RBS 101 CoC Put, 144A Reg S 1/5 850 *Pernod Ricard (Baa3/BBB-) 30 T+255 JPM/RBS 101 CoC Put, 144A Reg S 1/5 500 *Bank of Nova Scotia (Aa1/A) 3 3mL+104 BAML/BAR/C/DB/ FRN

US$ CREDIT SUPPLY PIPELINE - January 6, 2012


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 1/6 BM Bank of Montreal (Aa2/A+) 5 BMO/GS/JPM/MS 1/5 750 *Banco Bradesco (Baa1/BBB) 5 T+361.7 BB/BAML/BRAD/ 144A Reg S w/o Reg Rights BTG/C/HBSC 4.50% 1/5 850 *Pernod Ricard (Baa3/BBB-) 5 T+210 JPM/RBS 101 CoC Put, 144A Reg S 1/5 800 *Pernod Ricard (Baa3/BBB-) 10 T+230 JPM/RBS 101 CoC Put, 144A Reg S 1/5 850 *Pernod Ricard (Baa3/BBB-) 30 T+255 JPM/RBS 101 CoC Put, 144A Reg S 1/5 500 *Bank of Nova Scotia (Aa1/A) 3 3mL+104 BAML/BAR/C/DB/ FRN

US BLS: Online Sales Boost Deliv Jobs in Dec;Unemp Rate 8.51%


WASHINGTON (MNI) - December's jobs report, above expectations in every major respect, included a 42,000-job surge of courier employment that seems to correlate with online sales -- and which tend to disappear after the holidays.

US$ CREDIT SUPPLY PIPELINE - January 6, 2012


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 1/6 BM Bank of Montreal (Aa2./A+) 5 BMO/GS/JPM/MS 1/5 750 *Banco Bradesco (Baa1/BBB) 5 T+361.7 BB/BAML/BRAD/ 144A Reg S w/o Reg Rights BTG/C/HBSC 4.50% 1/5 850 *Pernod Ricard (Baa3/BBB-) 5 T+210 JPM/RBS 101 CoC Put, 144A Reg S 1/5 800 *Pernod Ricard (Baa3/BBB-) 10 T+230 JPM/RBS 101 CoC Put, 144A Reg S 1/5 850 *Pernod Ricard (Baa3/BBB-) 30 T+255 JPM/RBS 101 CoC Put, 144A Reg S 1/5 500 *Bank of Nova Scotia (Aa1/A) 3 3mL+104 BAML/BAR/C/DB/ FRN

Brazil Cen Bank Declares Victory With 6.50% Inflation in 2011


--Analysts: More Rate Cuts, Another Missed Target Likely in 2012

By Daniel Horch

SAO PAULO (MNI) - Brazil's Central Bank decided to declare victory Friday after 2011 inflation came in at 6.50%, well above the 4.5% target, but within the two percentage point margin the official inflation target system permits to respond to "external shocks."

The IPCA broad consumer price index rose 0.50% in December, state statistics agency IBGE reported Friday, barely below the 0.52% rate of November, but better than the market expectation of 0.54%.

Policymakers appeared pleased, even though the monthly rate is still inconsistent with the 4.5% 2012 inflation target.

ANALYSIS: US Dec Payrolls +200k, 8.5% Unemplymt:Modestly Good


--Unemploy Rate Remains on Dntrnd After Rev (8.5% Dec);Earn'gs, Hrs Gain

WASHINGTON (MNI) - The U.S. December employment report was perhaps a little on the better-than-expected side of expectations, but there are still reasons to be concerned that economic growth is not fast enough -- mainly the too-high 8.5% unemployment rate and the fact that about 42,200 of the 200,000 new jobs created in the month appear to be temporary courier positions.

The December employment report showed monthly payrolls at +200,000 overall but revisions to October-November totaled -8,000 on net, breaking a recent string of regular up-revisions to prior periods that skewed about +50,000 to the total in the recent past.