EMU DATA: 2q sa employment +0.3% q/q, nsa +0.4% y/y – EMU 1q sa employment rev to +0.1 (unch) q/q, nsa +0.3%(+0.1%) y/y – For details see MNI MainWire

EMU DATA: August HICP unrev +2.5% y/y, July +2.5%, June +2.7%, May +2.7% – EMU August HICP y/y matches MNI median fcast – EMU August HICP +0.2% m/m, matches MNI median fcast – EMU August ex-energy/food/alc/tobacco hicp +1.2% y/y, July +1.2% – EMU August ex-energy/unprocessed food hicp +1.5% y/y, July +1.5% – EMU August ex-energy/seasonal [...]

BERLIN (MNI) – The German government will win a large majority in parliament for its bill on the reform of the European Financial Stability Fund (EFSF), a senior lawmaker from Chancellor Angela Merkel’s government coalition said Thursday. “There will be a very, very broad majority in the Bundestag and the Bundesrat,” the lower and upper [...]

–BOE: Aug Median Yr Ahead Infl Expectations 4.2% Vs 3.9% May –BOE: Aug Longer Term Infl Expectations 3.5% vs 3.3% in May –BOE: Aug 2yr Ahead Infl. Expectations 3.5% vs 3.2% in May –BOE/GFK: Public Saw Current Inflation 4.8% Aug VS 4.5% May –BOE/NOP: Year Ahead Inflation Expectations Highest Since Aug 2008 LONDON (MNI) – [...]

Reiterating her stance on the matter yet again, and adding that Germany has a duty to contribute to secure the long term future of the euro EUR/USD’s at 1.3765 with a slight slip from 1.3775 despite reasonable Spanish auction results

Sold EUR 3.93bln  of a maximum target of EUR 4 bln made up of : EUR 1.022 bln of July 2019, cover ratio 2.17,  av yield 4.969% EUR 1.396 bln Apr 2020, cover ratio 2.01, av yield 5.006% EUR 1.5532 bln oct 2020, cover ratio 1.99, av yield 5.156%  

–Aug Retail Sales -0.2% m/m; unch. y/y; median -0.1% m/m; unch. y/y –Aug Retail Sales ex fuel -0.1% m/m; -0.1% y/y;median unch. m/m;-0.1 yy LONDON (MNI) – Retail sales volumes fell on the month in August as consumers continued to be squeezed by higher prices on the High Street and declines in their real incomes, [...]

UK DATA: Aug Retail Sales -0.2% m/m; unch. y/y; median -0.1% m/m;0.0 y/y –Aug Retail Sales ex fuel -0.1% m/m; -0.1% y/y;median unch. m/m;-0.1 yy ———————————————————————— Retail sales volumes fell on the month in August as consumers continued to be squeezed by higher prices on the High Street and declines in their real incomes. Volumes [...]

Vs expectations of -0.1%m/m and flat y/y Slightly worse than expected but cable picking up  around 25 pips on the reaction as inflation expectations rise BOE forecasting  August L/T inflation 3.5% vs 3.2% in May, 2 yr ahead inflation 3.5% vs 3.2% in May GBP/USD ‘s at 1.5795 ONS adding- Cannot quantify effect of the [...]

Apparently in the low 1.3770′s as Euro  presses towards offers lined up  from 1.3780/85 High so far has been 1.3781 and we’re around 1.3774 now Stops above reported at 1.3800 through to 1.3820

CPI expectations “must remain firmly anchored” Will continue to closely monitor all developments Operations to ensure banks’ liquidity not constrained All non-standard measures “temporary in nature” Downside GDP risks relate to financial market tensions

ITALY DATA: Final August HICP rose 0.4% m/m and 2.3% y/y, up from +2.1% in July, upwardly revising preliminary readings published by ISTAT at the end of August. –The main domestic index (NIC) was confirmed +0.3% m/m, +2.8% y/y, up from +2.7% in July, and the steepest y/y gain since October 2008 (+3.5% y/y). –August [...]

Earthquake has preliminary magnitude of 6.2 No tsunami warning after Japan earthquake

Buying of govt bonds non-stop merely postpones problems, can create inflation. But central bank that ignores markets can compromise price stability Without stringent constraints, euro bonds risk favouring policies that are more expansionary Risk with euro bonds is that cost is shared among more disciplined countries

If troika report delayed, even more urgent to ratify EFSF, ESM Greece will not be able to be fully competitive, have a fully functioning administration by 2015 Should talk with Britain over “package” to implement EU-wide financial transaction tax (don’t waste your breathe) Euro bonds will not be available in the crisis, warns urgently against [...]

PARIS (MNI) – The Swiss National Bank said Thursday it will continue to keep short-term interest rates as low as possible and defend the peg of the Swiss franc to the euro in order to counter the currency’s appreciation resulting from inflowing capital in search of a safe haven amid the Eurozone debt crisis. The [...]

FRANKFURT (MNI) – Following is the text of the monetary policy decision released Thursday by the Swiss National Bank: “The Swiss National Bank will enforce the minimum exchange rate of CHF 1.20 per euro set on 6 September with the utmost determination. It is prepared to buy foreign currency in unlimited quantities. It continues to [...]

AIMING TO DEFEND 1.20 FX GOAL!!! Will continue to aim for 3-month libor at 0 Aims for sight deposits over 200 bln Sees GDP growth in 2011 at 1.5-2% (previous forecast 2%) SNB is PREPARED TO BUY FOREIGN CURRENCY IN UNLIMITED QUANTITIES Even at a rate of 1.20, the swiss franc is still high and [...]

No such thing as orderly default, talking about it can have uncontrollable consequences Relaxed about troika report as Greece is doing upmost to deliver on targets (muckety muck no 3) Must ratify EFSF and ESM as soon as possible to regain credibility