Week of August 12, 2012 thru August 18, 2012

US GOP Nomninee Romney Taps House Budget Chief Ryan For VP


--Romney Hails Rep. Ryan's Expertise on Fiscal Matters
--Ryan: Must Reverse 'Unsustainable' Fiscal Policy
--Ryan: 'We Are Running Out of Time' To Fix Budget

WASHINGTON (MNI) - Former Massachusetts governor Mitt Romney, the presumptive Republican presidential nominee, Saturday named House Budget Committee Chair Paul Ryan to be his vice presidential running mate.

In an event in Norfolk, Virginia, Romney touted Ryan's work on fiscal issues in Congress as one of his central strengths.

In his remarks, Ryan focused on the nation's economic struggles, especially its fiscal woes.

"We are on an unsustainable path. It doesn't have to be this way," Ryan said. "We are running out of time."

Ryan is a respected but controversial figure in Congress.

ECB's Coene: Inflation Not a Problem, Not Impacting Mon Pol


--ECB Bond Buying Will Not Be 'Automatic', Even With ESM Program

FRANKFURT (MNI) - Eurozone inflation is not a concern for monetary policy now, as there are no signs yet of second-round effects from rising oil prices, European Central Bank Governing Council member Luc Coene said in an interview published Saturday with Belgian daily L'Echo.

"Inflation, which is due uniquely to the rise in petrol prices, is not a problem. It will pass through the economy," Coene told the paper. "What is problematic are second-round inflation effects.

US News Events Calendar


--Meetings & Events of Interest to Subscribers

DATE GMT / ET EVENT

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15-Aug 0000/2000 Minneapolis Federal Reserve Bank Pres. Naryana Kocherlakota speaks in Minot, North Dakota and afterward will answer questions from the audience.

16-Aug 0000/2000 Minneapolis Federal Reserve Bank Pres. Naryana Kocherlakota speaks in Williston, North Dakota, repeating his speech the previous day, and afterward will answer questions of the audience.

21-Aug 1245/0845 Atlanta Federal Reserve Bank Pres.

Reality Check:US Meat, Eggs,Dairy Prices Seen Surging In 2013


PHILADELPHIA, Aug. 10 (MNI) - U.S. retail prices for meat, dairy and eggs are unlikely to mirror recent sharp gains in corn and soybean prices in the next few months but can be expected to climb in 2013 as farmers seek to recoup much higher feed costs prompte

Analysis: US 'Fiscal Cliff' Actually a Fiscal Ramp Over 4 Mos


WASHINGTON (MNI) - Shortly after Labor Day the Office of Management and Budget will give Congress a long list of specific exemptions to any drastic "fiscal cliff" cutbacks, far more detailed than the broad categories of Social Security, Medicaid and military paycheck exemptions built into the process.

The report to Congress is mandated by the newest law on the books, the Sequester Transparency Act President Obama signed Tuesday.

The report will not be designed to be reassuring.

Mexico Completes US$2.192 Bln Bond Swap,1st Including Century


MEXICO CITY (MNI) - The government completed a foreign debt swap Friday totaling US$2.192 billion, in the first to include the century bond, the Finance Secretariat announced.

The global bond swap extended the average maturity of the debt profile by "more than two years" and reduced financing costs, the statement said, noting the goal also was to improve liquidity of reference bonds, and remove those will shorter terms or lower liquidity.

In addition, the yields and spreads over U.S. Treasuries of the 10, 30 and 100 year bonds were the lowest levels ever achieved for those maturities, the ministry said.

FXWRAP: Dlr Slips Slightly, Thin Conditions Exacerbate Swings


NEW YORK, Aug 10 (MNI) - The dollar was nursing mild losses against the euro and the yen Friday, the greenback a victim of profit-taking, or position unwinding, on a day marked by thin conditions and modest currency swings.

Euro-dollar was changing hands at $1.2292 Friday afternoon, the euro in the upper reaches of its $1.2241-1.2317 of its U.S. hours range after beginning the day at $1.2272.

Dollar-yen meantime was quietly trading at Y78.24, slightly below its early Y78.41 level and close to the middle of its Y78.17-46 U.S. hours range.

Credit Default Swaps: Mildly Negative On Risk Aversion Buying


CHICAGO, Aug 10 (MNI) - Global Credit Default Swaps were mildly negative Friday, in line with other risk markets, amid risk aversion buying, observers said.

Chinese export growth was worse than expected with exports up only 1% compared with expectations of around 6% growth.

While the data gives Chinese authorities room to ease policy, there is growing concern that the slowdown in China is more a demand led situation which the authorities have little influence over, sources said.

Meanwhile, there were increased jitters surrounding Spain.

Credit Default Swaps: Mildly Negative On Risk Aversion Buying


CHICAGO, Aug 10 (MNI) - Global Credit Default Swaps were mildly negative Friday, in line with other risk markets, amid risk aversion buying, observers said.

US$ CREDIT SUPPLY PIPELINE - August 10, 2012


WTD: 24,925 MTD: 26,525 MTD 2011: 10,075 YTD: 771,417 Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 8/10 10000 State of CA (MIG 1/SP-1+) $10BN of Revenue Anticipation Notes Expected Wed, 8/15 - Retail Order Period 8/10 TBD Fannie Mae to announce Benchmark Note Tues, 8/14 8/10 2000 *UBS AG (BBB-) 10 7.625% UBS/BAML/C/GS/ Via Stamford Branch, Sub Notes JPM/MS/RBS/WFC 8/9 750 *Williams Partners (Baa2/BBB) 10 T+170 UBS/RBS/WFS 8/9 300 *Sberbank (A3/BBB) 5 3.95% BAR/BNP/C/ Reopen 4.95% 2017, T+321 TROIKA 8/9 500 *Hospitality Propertie