Week of January 22, 2012 thru January 28, 2012

Italy Govt Approves Package To Open Up Economy, Boost Growth


ROME (MNI) - The government of Italy's Prime Minister Mario Monti has approved a hotly contested package of measures intended to help boost economic growth by deregulating and increasing competition in a number of sectors.

After securing passage late last year of E30 billion in spending cuts and tax increases to address the country's public deficit and debt directly, the government now hopes to tackle fiscal problems from the other side by getting the Eurozone's third largest economy moving again.

EPFR Global:EM Bond Fund Inflows at 10-Week High In Jan.18 Wk


WASHINGTON (MNI) - Corroborating portfolio managers' fundamental case for investing in emerging market fixed income, fund data provider EPFR Global said Friday Flows into Emerging Markets Bond Funds climbed to a 10-week high in the third week of January.

New IMF Funding Mechanisms Focus Of Mexico G-20 Conference


MEXICO CITY (MNI) - G20 officials discussed a variety of schemes, including bilateral loans and New Arrangements to Borrow (NABs), for funding the IMF in an effort to stabilize the Eurocrisis over the two-day conference of G-20 vice-ministers Thursday and Friday, according to Mexico Finance Sub-Secretary Gerardo Rodriguez and Bank of Mexico Deputy Governor Manuel Ramos, speaking at the close of the meetings.

"There was a broad, rich discussion in the meetings on the possible modalities of funding (the IMF/Europe)," said Rodriguez, describing the debate advanced at the conference within group members as to how and how much member nations should contribute.

US News Events Calendar


--Meetings & Events of Interest to Subscribers

DATE GMT / EST EVENT

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23-Jan 1430/0930 U.S.

US Debt Offering, Auction Calendar for Tsy and Agency Issues


January 20

Source: U.S. Treasury, Fannie Mae, Freddie Mac Amounts in billions of U.S.

Update:Ex-ISM Surv Head:'SLIM'Corrlatn W/ISM Yet to Be Proven


--Updating Story Sent 13:59 ET With New Comments From Ore
--Research Firm Strategas Has No Plan To Issue Non-Mfg SLIM Equivalent

WASHINGTON (MNI) - The former head of the widely followed Institute For Supply Management manufacturing index Friday said it "remains to be proven" how his new employer's leading manufacturing index correlates with the ISM index.

Research firm Strategas announced Friday the creation of the Strategas' Leading Indicator of Manufacturing (SLIM), an early monthly measure of manufacturing activity.

The survey will be conducted by former ISM survey chief Norbert Ore, whose hiring by Strategas was also announced Friday.

Reality Check: US Waste-Hauling Execs:Vols, Econ on Slow Climb


NEW YORK, Jan 20 (MNI) - U.S. trash-carting volumes finished off 2011 with tame growth, hinting at no great jump in the broader economy, according to waste-hauling executives.

Fed Makes Clear 17 FOMC Participants' FFR Views Are Anonymous


WASHINGTON (MNI) - The Federal Reserve Friday provided a sneak peak of how those new federal funds projections are going to be presented Wednesday, anonymously and from all Board members as well as all the voting and non-voting regional Bank presidents -- 17 in all.

Therefore, it is going to be impossible to deduce how Chairman Ben Bernanke feels about the timeline for tightening, and the path beyond that for the short-term interest rates the Fed controls.

There will be two charts released by the Fed at 2 p.m. Wednesday, along with the updates to the FOMC's economic assumptions, 15 minutes prior to the start of Bernanke's quarterly news conference.

Credit Default Swaps:IG17 All Time Tight, EU Better, Risk-On


CHICAGO, Jan 20 (MNI) - The benchmark index on U.S. investment grade Credit Default Swaps or IG17 moved to an all time tight Friday amid the ongoing risk-on environment and improvement in Europe.

Credit Default Swaps:IG17 All Time Tight, EU Better, Risk-On


CHICAGO, Jan 20 (MNI) - The benchmark index on U.S. investment grade Credit Default Swaps or IG17 moved to an all time tight Friday amid the ongoing risk-on environment and improvement in Europe.

In late trade, the IG17 was last down 0.50 at 107 bps midmarket, just off the earlier intraday and fresh all time series tight of 106.625 bps.

Sources said risk-on was very much a factor in the current session given improvement in EU CDS levels, high hopes for a Greek PSI resolution and higher global equities.

Risk-on sentiment was seen in other sister markets including Agency bullets but also in secondary corporate bond paper, where dealers reported heavy demand.