Pretty much in line with median forecast of 4.3 bln.

Compares to 3.8 bln in December.

• Should end unfair trade preferences for domestic firms
• China should establish more open investment climate
• China should end unfair practice of currency distortion
• China should improve protection of intellectual rights

You tell ‘em Gary!!

DAX down -0.2%, CAC 40 down -0.4%.  Slight whiff of risk aversion in the air. Even oil’s a touch lower, NYM light crude off half a buck from when I sat down, presently at $106.85.  Well I did say “a touch lower”, the decline inconsequential after recent sharp rises.

EUR/USD down 10 pips at 1.3155 from the 1.3165 which greeted me first thing.  It’s the usual crappy Monday morning trade

The benchmark 10 year US treasury yield is off at 2.2760 from the 2.3066 I jotted down first thing.  Against this backdrop USD/JPY has given ground, presently at 83.10 from the 83.40 when I parked my bum. 

As my colleagues have also underlined in recent days, we’ve the little matter of the approaching fiscal year end in Japan and the likelihood of increased Japanese exporter sales. 

I have to say though I’m personally not expecting a collapse in USD/JPY after it’s strong recent rally, but a period of consolidation could well be on the cards.

FRANKFURT (MNI) – Greece is “more than halfway” to economic
recovery and should return to positive growth in less than two years,
Greek Prime Minister Lucas Papademos told the Financial Times.

In an interview published online Sunday evening, Papademos conceded
that the fiscal consolidation process would require more time. However,
the implementation of the reform program will lead to “a virtuous circle
of structural reform, increasing activity and faster fiscal
consolidation,” he said.

“At the same time, it would be helpful to address the short-term
negative side effects of the adjustment programme by complementing it
with policy measures that can help support economic activity and
employment over the short and medium term,” he said.

He added that, with the “full and effective implementation” of
Greece’s new economic program, the possibility of additional debt
restructuring would be eliminated.

“We will do whatever is needed to ensure that this was the last
restructuring of Greek sovereign debt,” he said.

Papademos also highlighted plans – in cooperation with the European
Commission and the European Investment Bank – to address the lack of
liquidity in the Greek banking sector and boost lending to small and
medium-sized companies.

The prime minister stressed that the policies currently being
implemented do not suggest “any fundamental loss of political or
democratic sovereignty,” arguing that such an outcome would be
“unacceptable and inappropriate.”

“Both the first and second programmes were debated and approved by
the Greek parliament – the latter one by a huge, two-thirds majority,”
Papademos observed.

He also underlined the overwhelming majority of Greeks who want to
remain a part of the Eurozone and said there is “no doubt” the country
will stay within the currency union.

“A large silent majority – and they are not the people
demonstrating in the streets – understand that the price stability that
the European Monetary Union entails and the fiscal discipline that it
requires imply benefits for the country, and that the adjustment process
is going to be more effective within the euro than outside,” he said.

– Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com –

[TOPICS: M$Y$$$,MT$$$$,M$$CR$,M$X$$$,MGX$$$,MI$$$$]

Horst Reichenbach, the official in charge of Greece’s administrative overhaul, has told Handelsblatt that the country’s exports will most likely decline this year compared to last. 

 Bring back the drachma, that would help…

‘While much of euro zone deals with busts, property prices are rising in Berlin, Hamburg, Munich.’

Financial bookies see European stocks opening firmer, FTSE up around +0.2% and DAX up around +0.4%.

Love him or loathe, here’s the latest from AEP at The Telegraph

–Japan Feb Department Store Sales -0.4% Y/Y; Jan -1.1%
–Japan Sales Post Falls for Two Months In Row

TOKYO (MNI) – Department store sales in Japan fell 0.4% on year in
February, posting falls for two months in a row, despite the extra day
from leap year, data released by the Japan Department Stores Association
showed on Monday.

The association said the February sales were down on year, as
lingering low temperatures dampened demand for spring clothing, and
heavy snowfalls and spreading of influenza kept shoppers away from the
stores.

The association compiles data from 86 companies running 253
department stores that have been open for at least a year prior to the
survey being conducted. The data are adjusted to facilitate comparisons
on a same-store basis.

In Tokyo, combined sales at 26 department stores fell 1.8% y/y in
February, posting the second consecutive monthly drop, after -3.1% in
January.

tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-5403-4835 **

[TOPICS: M$J$$$,M$A$$$,MAJDS$]

Got any ideas you’d like to share with your fellow readers, then here’s where to stick ‘em.

• Chinese home prices fall in more than half of 70 cities surveyed
• PBOC sets USD/CNY mid-rate at 3.3080, down from Friday close near 6.3225
• Chinese government economist says EUR and USD trying to depreciate to reduce liabilities
• New Zealand’s consumer confidence improves slightly
• UK house prices show signs of improvement
• IMF’s Zhu Min sees China headed for soft landing
• Regional Bourses +0.3% on average except Shanghai -0.3%
• Gold $1663/oz; Oil $107.80/bbl

Very little to report again today with only a brief flurry of activity in EUR/JPY, to take out a barrier at 110.00, and thereafter all has been quiet with the majors returning to their opening levels.

USD/JPY opened at 83.35, edged higher above 83.50 on the back of EUR/JPY and AUD/JPY buying, but has settled back to its opening level in very quiet afternoon trade. Ranges: 83.33/56; EUR/JPY 109.72/110.14

EUR/USD has traded in a quiet 25 pip range with EUR/JPY flows again the only significant activity. Ranges: 1.3161/87

AUD/USD broke above 1.0600 on some mild stop-loss buying as well as AUD/JPY demand but it’s been one of the quieter AUD trading sessions in recent times. Ranges: 1.0582/1.0615

Cable 1.5825/50; EUR/CHF 1.2060/70

The full text of the speech can be read here and so far there is no impact on the AUD from the fairly neutral headlines hitting the newswires.

More from Euromoney. Or if you don’t like that story, how about this one from a leading research agency, that the EUR is undervalued (though you’ll have to sign up for a trial in order to get this one).

Any little momentum which was created earlier in EUR/JPY when it broke above 110, has now been forgotten. Most of the major pairings are back at opening levels.

Most regional Bourses are +0.3% on average but Shanghai is bucking the trend and is -0.3%.

Gold is trading at $1663/oz and Oil is $107.30/bbl

Zhu Min from the IMF has been speaking this morning at the Credit Suisse sponsored talk-fest and hasn’t had anything controversial to say as of yet.

• Economic trends and policy point to a Chinese soft landing;
• global growth is slowing although the US economy seems to be improving;
• emerging markets are still prone to weakness;
• Europe remains fragile and needs to implement structural reform.

More from The Business Spectator who opines that the economics profession has gotten away very lightly when it comes to blame being apportioned for various financial crises.

That’s down from a market close near 6.3225 on Friday.

The latest Rightmove data shows UK house prices rose by 1.6% compared with the previous month.