Up sharply from -21.6 in January, and demonstrably stronger than Reuter’s median forecast of -12.0

Hopes Europe will keep its market open Will enhance consultation with Europe on crisis China willing to exchange views on human rights Will improve foreign investment environment China continue opening to European companies Confident of the future and will push ahead with reforms The Premier was speaking at  the EU-China summit

Apparently around 1.3185, after the single currency got a lift from successful Spanish auctions and comments from Austrian FinMin re Greek aid/PSI. It has to be said we’re no lower as yet, presently at 1.3184. Guess boys from Basle taking a little profit after buying earlier around the lows.  

PARIS (MNI) – European Central Bank Executive Board Member Benoit Coeure said Tuesday that the central bank could distribute its profits on Greek bonds to Eurozone member states, which in turn could use them to help Greece reduce its debt burden. In an interview with the French daily Liberation, Coeure, who started an eight-year term [...]

Getting positive signals about Greek PSI deal (hope his antennae working properly) Not concerned about health of Austrian banks, capital exercise going well

Out of a targeted Eur 4.5-5.5 bln Sold Eur 2.94 bln of 12 mth Feb 15 2013 Letra, yield 1.899% (vs 2.049%), cover 2.3 (vs 3.5) Sold Eur 2.5 bln of 18 mth Aug 23 2013 Letra, yield 2.308 % (vs 2.399%), cover 2.9 (vs 3.2) Strong take up  and improved yields EUR’s sitting firmly around 1.3170

LONDON (MNI) – UK house prices rose by 0.4% in December from the previous month and were 0.1% higher than the same month in 2010, Communities and Local Government reported today. CLG said that house prices rose by 0.4% in the three months to December compared with the previous 3 months. The latest data are [...]

UK DATA: DCLG says UK house prices rose 0.1% on month in Dec vs unchanged in Nov.

–Jan CPI -0.5% m/m; +3.6% y/y vs Dec 4.2% y/y; in line with median LONDON (MNI) – Consumer price inflation declined sharply, as expected, in January as the hike in VAT seen last January fell out of the annual comparison, figures from National Statistics showed Tuesday. Consumer prices fell 0.5% on the month in January [...]

UK DATA: Jan CPI -0.5% m/m; +3.6% y/y vs Dec 4.2% y/y –In line with median ———————————————————————— Consumer price inflation declined sharply as expected in January as the hike in VAT seen last January fell out of the annual comparison. Consumer prices fell 0.5% on the month in January causing inflation to fall to 3.6% [...]

There’s also a load of cross buying going through at the moment I’m told by a very reliable source. Offers are sitting up  ahead of 78.30 (high so far has been 78.15) and there are  buy stops just  above,  ahead of further offers at 78.40/50 protecting barriers at 78.50. Offers are from a mutltitude of names [...]

As expected. ONS says biggest downward contributors to CPI from VAT falling out, petrol, restaurants, tobacco. PETROL!!!   Are they having a bloody lark……..  

Out of a targeted Eur 3-4 bln. Yield 1.347 % (vs 1.777%), av price 105.44 (vs 103.60)

Yer, that’ll get them to support the euro zone

JAPAN DATA: Shipments of mobile handsets in the domestic market rose 5.9% y/y in December to 3.078 million units, first gain in four months, after -35.5% in November, -10.1% in October and -19.1% in September, data from the Japan Electronics and Information Technology Industries Association showed. Shipments of PHS (personal handy-phone systems) fell 30.3% y/y, [...]

States could then use profits to help Greek debt sustainability

If don’t deal with debt will result in loss of investor confidence, no easy route out of economic problems If don’t deal with debt will not have growth Have taken some difficult actions to make banks safer, not anti-buisiness Anti-business rhetoric is dangerous for Britain  

Dow Jones reports. Sees EUR/USD at 1.3000 in 1 month, up from previous 1.2000 Sees EUR/USD at 1.25oo in 3 months, up  from previous 1.1500 Also raises 3 month USD/JPY forecast to 77.00 from previous 75.00. Oh well. Bank cites diminished short-term risks.  Danger of funding hardships at European banks eased by ECB’s LTRO operations, and [...]

We’re back at 1.3160, where we were when I first sat down. These aren’t easy markets, that’s for sure.  So what we got now; talk of  ACB buy orders at 1.3125 and more at 1.3100/10, sell stops below there. On topside, sell orders clustered 1.3165/75 and more up at 1.3190/00. Not hearing anything re buy stops. [...]

We’re back at 1.3150 from session low 1.3127. Reports BIS has been seen buying at lower levels.  This comes after the boys from Basle were reportedly selling up around 1.3275 yesterday morning. Life would be alot less complicated without all this sovereign interest complicating matters. Sell stops remain through 1.3115 and 1.3100. DAX down -0.4% [...]