Week of July 29, 2012 thru August 4, 2012

Euro Credit: Casino Joins Pipeline


LONDON, Jul 27 (MNI) - The new issues market has seen a quiet end to what was an unexpectedly busy week. Volatility remains high in the wider markets as we await further news on a possible bond buying program from the European Central Bank, but for now the recovery seen in peripheral and financial spreads is holding.

Casino will bring a Euro benchmark deal due Aug 2019. Prici

EU Commission: No Requests For EFSF Bond Market Intervention


BRUSSELS (MNI) - The European Commission sought Friday to calm expectations of imminent market intervention to lower Spain and Italy's borrowing costs, stating that no request for such action had been made.

European Central Bank President Mario Draghi raised hopes Thursday that common currency's guardian would soon step up efforts to calm the Eurozone crisis in saying the central bank was "ready to do whatever it takes" to preserve the euro. "Believe me, it will be enough," he added.

The French daily Le Monde on Friday reported that the ECB was preparing concerted action with Eurozone member states to help Spain and Italy.

Ldn FX: Euro-Sterling Fix Sell Interest Boosts Pound


LONDON, Jul 27 (MNI) - Decent sized euro-sterling sell interest for the 1000GMT London fix provided the pound with some added lift through European morning trade Friday, the demand for sterling extending the cross' pullback from Thursday's highs of stg0.7860 to stg0.7800, which in turn allowed cable to retest its Thursday highs at $1.5725. Rate is holding firm into early New York.

STERLING SUMMARY: Opened early Europe at $1.5682, stg0.7838 Cable closed in NY at $1.5685, off extended recovery highs of $1.5724 having met stiff resistance from offers placed into the Jul 19 highs at $1.5735. Trade through Asia was contained within a tight $1.5666/93 range, while euro-sterling held within stg0.78265-0.7835.

EU Leaders Exploring Alternatives To More Greek Aid: Sources


ATHENS (MNI) - As Greece slides ever deeper into recession and ever further away from its deficit targets, European leaders are exploring alternatives to more aid, including another debt restructuring or even an orderly default, according to top European officials.

Ldn FX: Euro-Dollar Still Buoyant After Draghi Euro Comments


LONDON, Jul 27 (MNI) - Euro-dollar retained a firm underlying tone through European morning trade Friday, buoyed by Thursday's comments from ECB President Mario Draghi on supporting the euro.

Rate consolidated Thursday's gains, which had seen rate recover from $1.2118 to $1.2330, within a range of $1.2242-1.2315, with moves within that range driven by headlines as officials reacted to Draghi's comments.

EURO SUMMARY: Opened early Europe at $1.2285 Euro-dollar closed in NY at $1.2280, off extended recovery highs of $1.2330, with rate driven from earlier session lows of $1.2118 on reaction to ECB Draghi's comments that the ECB would do everything within its mandate to support the euro.

UK Data: June Land Registry House Prices Up 0.1% On Month


LONDON (MNI) - House prices in England and Wales nudged higher in June, rising 0.1% on the month to stand up 0.9% on the year, according to Land Registry data.

The Land Registry figures, based on completed transactions, show modest house price inflation while some mortgage based surveys have shown mild deflation. The Halifax June house price survey, for example, had a 0.5% yearly fall in June.

The Land Registry's lagging activity data showed a pick-up in property transactions in January through April on a year earlier, with transactions climbing to an average of 47,242 per month from 43,686 sales per month a year earlier.

Germany: Bavaria July CPI +0.4% M/M, Matching Pan-German Fcst


Bavaria CPI

July: +0.4% m/m, +2.2% y/y June: flat m/m, +2.2% y/y

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Pan-German CPI

MNI median forecast: +0.4% m/m, +1.7% y/y MNI forecast range: +0.2% to +0.6% m/m

June: -0.1% m/m, +1.7% y/y

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BERLIN (MNI) - Consumer prices in the western German state of Bavaria rose 0.4% in July, leaving the annual inflation rate unchanged at +2.2%, the state statistics office said Friday.

The monthly result is in line with the median forecast for pan-German CPI in a MNI survey of analysts. Indeed, all reporting states have posted monthly inflation rates of 0.4%.

During the holiday period, package holiday tours rose 14.9% on the month. Hotel and restaurant services climbed 3.0%.

Bundesbank Reaffirms Opposition To ECB Bond-Buying: Spokesman


FRANKFURT (MNI) - The Bundesbank has not relaxed its opposition to intervention by the European Central Bank in government bond markets, a Bundesbank spokesman told MNI on Friday.

"The Bundesbank has not changed its views on ECB bond market interventions," the spokesman said. "In the Bundesbank's view, buying government bonds by the central bank is not the best tool to address the crisis."

The confirmation comes in reaction to market speculation following comments by ECB President Mario Draghi on Thursday, which sparked expectations of renewed ECB bond buys, pushing up the euro and triggering a sizable decline in Spanish and Italian debt yields.

China Yuan Ends Up At 6.3807 Friday Vs 6.3841


BEIJING (MNI) - Spot yuan ended up at 6.3807 against the dollar on Friday in the onshore market, boosted by a euro rebound from previous lows and compared to the 6.3841 close on Thursday.

The close was up for a third day in a row, tracking gains in the euro following the strong tone from the European Central Bank about protect the single currency union.

The fixing was set at 6.3325 vs Thursday's 6.3381.

In the offshore non-deliverable yuan forward market, the one-year contract was trading at 6.4330 against the dollar, slightly stronger than Thursday close of 6.4365.

beijing@marketnews.com **MNI Beijing Newsroom +86-10 8532 5998**

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Germany:Brandenbg July CPI +0.4% M/M,Matching Pan-German Fcst


Brandenburg CPI

July: +0.4% m/m, +1.7% y/y June: -0.1% m/m, +1.8% y/y

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Pan-German CPI

MNI median forecast: +0.4% m/m, +1.7% y/y MNI forecast range: +0.2% to +0.6% m/m

June: -0.1% m/m, +1.7% y/y

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BERLIN (MNI) - Consumer prices in the eastern German state of Brandenburg rose 0.4% in July, dampening the annual inflation rate to +1.7% from +1.8%, the state statistics office said Friday.

The monthly result is in line with the median forecast for pan-German CPI in an MNI survey of analysts. Saxony, North Rhine-Westphalia and Baden-Wuerttemberg also posted monthly price increases of 0.4%.

During the holiday period, package holiday tours rose 14.9% on the month. Hotel and restaurant services climbed 2.8%.