The Lux PM meant to to say that haircuts could exceed 21% already agreed in July.

Will not participate in EFSF vote

FRANKFURT (MNI) – The European Central Bank Tuesday allotted E59.0616 billion in 28-day refinancing agreements (refis) at a fixed rate of 1.5% in an effort to improve the overall liquidity position of the euro area banking system. The operation, which had no pre-set amount, attracted 39 bidders. The refis will settle tomorrow and will expire [...]

FRANKFURT (MNI) – The European Central Bank on Tuesday allotted E204.9394 billion in its main seven-day refinancing operation at a fixed rate of 1.5%. The ECB satisfied all of the 166 bids received. Today’s operation resulted in a net addition of E6.0586 billion after the ECB allotted E198.8808 billion in its 7-day MRO last week. [...]

Being told  should be fairly solid . EUR/CHF just been down to 1.2317 (Asia low 1.2315) and currently around 1.2325

Greek banks are stable, secure….. Europe, US need close cooperation for crisis State asset sales plans to build Arab lines  

–Updating with comments on bank recapitalization BRUSSELS (MNI) – European Central Bank President Jean-Claude Trichet on Tuesday once again rejected the idea of leveraging the European bailout fund EFSF via the ECB. “We consider that the governments have all the capacity to leverage themselves the EFSF. We do not consider that it would be appropriate [...]

BERLIN (MNI) – The risks to the German economy have markedly increased but its underlying momentum remains robust, the Economics Ministry said in its latest monthly report, released Tuesday. “New worries about the stability of the banking sector are fueling volatility on financial markets and are increasing uncertainties amongst economic players across the globe,” the [...]

In EUR/GBP for what it’s worth. We’ve just hit a day’s low in Europe of 0.8705… Bids below are at 0.8650/60 , offers remain 0.8735/40 with possible buy stops above  

FRANKFURT (MNI) – The crisis has reached systemic dimensions threatening Eurozone financial stability and the health of the real economy, European Central Bank President Jean-Claude Trichet said Tuesday. “The crisis has reached a systemic dimension,” said Trichet, who was testifying as the head of the European Systemic Risk Board. Stresses in many European government bond [...]

–Aug manufacturing output -0.3% m/m; +1.5% y/y –Aug industrial production +0.2% m/m; -1% y/y LONDON (MNI) – Manufacturing output fell for the third consecutive month in August as industrial production hit its lowest annual growth for more than five years, figures released by National Statistics showed Tuesday. Manufacturing output fell 0.3% on the month and [...]

UK DATA: Aug manufacturing output -0.3% m/m; +1.5% y/y –Aug industrial production +0.2% m/m; -1% y/y ———————————————————————— Manufacturing output fell 0.3% on the month and was up 1.5% on the year. Analysts had expected to see a slightly smaller fall of 0.2% on the month, although the annual increase was in line with forecasts. There [...]

August UK industrial production +0.2%m/m, -1% y/y A bit of a mixed bag, with Mfg a bit worse than expected, but cable remaining largely unfazed on the release around 1.5630/35

BRUSSELS (MNI) – European Central Bank President Jean-Claude Trichet on Tuesday once again rejected the idea of leveraging the European bailout fund EFSF via the ECB. “We consider that the governments have all the capacity to leverage themselves the EFSF. We do not consider that it would be appropriate to leverage ourselves the EFSF,” Trichet [...]

FRANKFURT (MNI) – The German federal government formally called for bids Tuesday on its E2 billion top-up of the 3.25%-coupon, 30-year Bund (July 2042 maturity), the Bundesbank announced. Bids are due by 9:00 GMT tomorrow, October 12, with results of the auction available shortly thereafter. The issue, which is strippable, matures on July 4, 2042. [...]

FRANKFURT (MNI) – The following is the second part of the verbatim text of the introductory statement by European Central Bank President and European Systemic Risk Board Chairman Jean-Claude Trichet to the European Parliament’s Economic and Monetary Affairs Committee: Let me give you a brief overview of what these recommendations are about, without entering too [...]

FRANKFURT (MNI) – The following is the first part of the verbatim text of the introductory statement by European Central Bank President and European Systemic Risk Board Chairman Jean-Claude Trichet to the European Parliament’s Economic and Monetary Affairs Committee: Introductory statement by Jean-Claude Trichet, Chair of the ESRB Brussels, 11 October 2011 Dear Madam Chair, [...]

Been a fair bit of 2 way trade this morning with initial bids in the 0.9920′s holding  up ahead of more down at 0.9880/90. Real money names were seen earlier buying aggressively in the 0.9950′s which led a quick bounce to the 0.9970′s. , but recent comments from Trichet continue to rest heavily on EUR/USD which [...]

China is said to have been buying both EUR/USD and GBP/USD in the pre-Trichet rally.  Talk is they’re now lined up down on the bid in EUR/USD at 1.3620. We sit presently at 1.3625.