LONDON (MNI) – The net monthly flow of lending to UK business moved back into positive territory in November, but lending growth was negative on a 12-month basis. The Bank of England data highlight the underlying weakness of lending. The net monthly flow in November was Stg1.8 billion, up from -Stg0.2 billion in October, but [...]

Presently at 1.2897. Schaeuble didn’t do the single currency any favours with his Italy comment. 21 DMA lies down at 1.2874.  Talk buy orders clustered ahead of that at 1.2875/85. Probably more sell stops below said level, but no confimation of that as yet.

FRANKFURT (MNI) – Governments must give markets clarity on a possible financial transaction tax as soon as possible, Bundesbank Board member Andreas Dombret said Friday. “I urge the governments to make final decisions regarding a financial transaction tax as the market place would benefit from clarity on this issue,” Dombret said in a speech text [...]

Pretty close to median forecasts of +0.7%, +2.5% respectively.

–Dec Retail Sales +0.6% m/m; +2.6% y/y; median +0.6% m/m; +2.4% y/y LONDON (MNI) – Retail sales rose firmly in December as retailers cut prices on the month at the fastest pace for more than a year, figures released by National Statistics showed Friday. Total retail sales volumes rose by 0.6% on the month in [...]

UK DATA: Dec Retail Sales +0.6% m/m; +2.6% y/y; median 0.6% m/m;2.4% y/y –Dec Retail Sales ex fuel +0.6% m/m; +1.7% y/y; median 0.7% m/m;1.7%y/y ———————————————————————— Retail sales volumes rose as expected in Dec with volumes rising 1.1% on the quarter in Q4, the strongest 3m/3m growth since Aug 2010. It was the strongest Q4 [...]

A move it has been avoiding since the 1990′s, according to the official. Ouch!!! Reuters reporting.  

Down at 99.85 from 100.00 when I parked my bum. Just being told  US investment house (you know the one) has been seen on the bid in very recent trade. Maybe this will help steady EUR/USD a little, that pairing having seen a sharp retreat this morning.  

ITALY DATA: November industrial orders rose 0.1% m/m in seasonally adjusted terms, posting the first increase since August, but with the gain limited by a drop in foreign orders. November seasonally adjusted m/m domestic orders rose 1%; foreign orders declined 1.1% in the period; November seasonally-adjusted turnover was unchanged m/m, workday adj. +0.2% y/y; in [...]

Obviously there has recently been alot of speculation the old lady will go for more QE at the February MPC meeting. Mr Broadbent seems to be saying maybe not soooo quickly. Downside risks 6 months ahead slightly lower ECB actions, BOE QE  lower downside risks Reasonable to expect growth to pick up in H2 Household income [...]

LONDON (MNI) – Turning to the macroeconomic outlook, Broadbent warns against getting “too fixated” on whether the UK economy enters a technical recession over Q4 and Q1. The big picture for the MPC is that output at present is stagnant and spare capacity in the economy is likely growing. But Broadbent sees some positive economic [...]

LONDON (MNI) – The Bank of England’s Monetary Policy is not pre-committed to more quantitative easing in February and the question of how fast it can go in purchasing Gilts is just a side issue, MPC member Ben Broadbent says. Broadbent fiercely rejects the view that the “speed limit” on QE, the assumption that if [...]

Financial transaction tax should be introduced globally (that ain’t gonna happen!!) ‘Confident’ Basel III rules to be implemented on time

Only 20 pips before we gallent few can attain guru status 1.3000 cos I love to be a contrarian. I'm always looking for an upside surprise in US jobs which I'd look to support risk Wow, was that me saying that? Maybe I’m not such a dick after all….. I hope I’m not tempting fate [...]

Should set up 50 trln yen fund to buy foreign assets Dow Jones reporting. USD/JPY sits at 77.15. Talk of buy stops through 77.40 EUR/JPY sits at 100.05.  Talk of buy stops through 100.35

ROME (MNI) – Italy’s Prime Minister Mario Monti is expected Friday to announce a large economic liberalization package that will affect a number of sectors, including taxis, pharmacies, local public transport and the postal service. The government’s aim is to increase competition. It plans, for example, to boost the number of taxi licenses. But taxi [...]

GERMANY DATA: December PPI -0.4% m/m, +4.0% y/y; November +5.2% y/y;October +5.3% – Germany December PPI below MNI median fcasts (+0.1%/+4.6%) – Germany December PPI ex-energy -0.1% m/m, +2.0% y/y; November +2.6% y/y – Germany December PPI ex-petroleum products -0.3% m/m, +3.6% y/y – Germany December PPI energy -1.1% m/m, +8.3% y/y; November +0.1%/+11.2% – [...]

Weaker than median forecasts +0.1%, +4.6% respectively.

Talks continue today. Obviously the situation is a major focus for the market at present.

– See Separate Table For Details Of Individual Forecasts TOKYO (MNI) – Japanese retail sales in December are expected to show a 2.0% gain on the year, posting the first y/y rise in two months, after a revised -2.2% in November and +1.9% in October, according to the median forecast of economists polled by Market [...]