Must deal with recession or all our efforts will fail Structurla reforms not enough for the economy to recover

LONDON (MNI) – The Bank of England said Wednesday it received no bids at its 8-day unlimited dollar repo operation. The dollar repo operations were reintroduced by the Bank of England as part of a co-ordinated move by G7 central banks to inject dollar funds into the money markets if needed. –London newsroom: 00 44 [...]

FRANKFURT (MNI) – The European Central Bank said Wednesday that it has allotted $552 million in its 8-day USD liquidity providing operation. The central bank said it received 2 bids. Today’s operation was carried out at a fixed rate of 1.08%. The Euro/USD rate was set at 1.3466. –Frankfurt Bureau tel.: +49-69-720 142, email: frankfurt@marketnews.com [...]

EMU DATA: Oct HICP unrev +3.0% y/y,Sep +3.0%,Aug +2.5%,Jul +2.5% – Oct HICP y/y matches MNI median fcast – Oct HICP +0.3% m/m, matches MNI median fcast – Oct ex-energy/food/alc/tobacco HICP +1.6% y/y, Sep +1.6% – Oct ex-energy/unprocessed food HICP +2.0% y/y, Sep +2.0% – Oct ex-energy/seasonal foods HICP +2.0% y/y, Sep +2.0% – Oct [...]

Spread between 10 year Italian and German govt bonds has narrowed further, presently at 493 bps from 530 when I arrived. EUR/USD reaches session high 1.3558, presently at 1.3550.

They’re in again buying around the high 1.5760′s, after an earlier round of buying which Gerry mentioned earlier. Cable’s up at 1.5795 Expect some resistance above at 1.5825 and towards 1.5865. Bids are at 1.5750/55 with likely sell stops on a break down through 1.5750.

–Oct Claimant Count Unemployment +5,300 m/m; Rate 5% –Sep Average Weekly Earnings +2.3% vs 2.7% in August –Sep Average Weekly Earnings ex bonuses +1.7% vs +1.8% in Aug –Jul-Sep ILO Unemployment +129,000; Rate 8.3% –Sep Claimant Count revised to +13,400 m/m from +17,500 LONDON (MNI) – Claimant count unemployment rose by less than expected in [...]

Market’s still intent on testing the BOJ resolve with a steady grind lower today from today from 77.15 in Asia. We’ve been down to 76.85 and there are bids 76.80/85 which should be fairly large, with talk in Asia that the 76.80 level could be a “line in the sand” for the BOJ. There’s talk [...]

Better than Reuters’ median forecast of +20K. Claimant count rate 5.0%, better than median forecast of 5.1%. On the flip side, Ilo jobless +129k in 3 months to September.  Rate 8.3%, worse than median forecast of 8.2%. Number of young people out of work rose to 1.016 mln, above the 1 million mark for the [...]

Euro zone aiming to finish technical work of leveraging EFSF by end of November. Official told European Parliament “We really don’t have a choice” adding “We have to pick up the pace.” (yes, that might be a good idea) UPDATE: Real money sellers seen in EUR/USD up at 1.3540/50. We’re at 1.3520.  Session high 1.3544.

Finding some fairly strong tech resistance now up ahead of 1.0160, with the move also pinned back by  EUR/AUD which is  still holding firm despite earlier mentioned selling interest from real money accounts from 1.3350. Real money buying was also seen earlier in the session in AUD/USD in the 1.0060′s which  protected the 1.0050 and 1.0030 [...]

ITALY DATA: Final October HICP rose 0.9% m/m and 3.8% y/y, up from up from +3.6% y/y in September and the strongest y/y gain since September 2008. –The September 17 VAT hike )part of the governments austerity package) had an impact on the m/m data, ISTAT said. –The main domestic index (NIC) rose 0.6% m/m, [...]

Greece aid must depend on reform plan Oct 26-27 plan not decisive crisis step Sees risks in proposed EFSF SPV model Mustn’t use currency reserves to boost EFSF EFSF SPV model would increase likely losses Bond buys are pricey way to help troubled states Bond buys shift risk from banks to taxpayers (sure do) Bundesbank [...]

 Presently up at 1.5792 from around 1.5760 when I sat down. Same as with EUR/USD, Middle Eastern names notable buyers of cable this morning. Obviously some wariness ahead of UK jobs data and November inflation report/King  after that (tone widely expected to be dovish) Elsewhere, trailing buy stops in EUR/USD through 1.3500 have been tripped [...]

LONDON ((MNI) – The Bank Of England said Wednesday it was offering an unlimited supply of U.S. dollars in an 8-day repo operation, settlement date Nov 17 maturing Nov 25 2011. The Bank said the repo would be at a fixed-rate, with the rate to be set at 1.08%. The settlement date is extended one [...]

Stronger commitment needed from all countries

European stocks seeing general improvement. Spread between 10 year Italian and German govt bonds narrowing.   Down at 507 bps from around 530 bps when I first sat down.

Me neither

What is it with the Finns? Finland is against the idea of common euro zone bonds EFSF bailout fund needs to be “in the shape” to prevent contagion Unlikely that ESM fund launch will be speeded up Impossible to say if decisions on leveraging EFSF will be made in December

Presently at 1.3465. Once again getting reports Middle Eastern names notable buyers in this latest leg higher. Sell orders noted gathered up at 1.3490/00, trailing buy stops above there. UPDATE:   Talk ECB buying euro zone bonds again