– BOE: Q3 Corporate Credit Availability Net -5.5% vs Net -3.2% Q2
– BOE: Q3 Household Secured Credit Availability Net 21.9% vs -4.1% Q2
– BOE: Q3 Unsecured Household Credit Available Net -4.2% vs 8.1% Q2

LONDON (MNI) – Lenders reported a marked increase in the amount of
secured credit made available to households in Q3, but little change in
the availability of credit for unsecured household and corporate
lending, according to a Bank of England survey released Wednesday.

The availability of secured household credit rose to a net 21.9%,
up from -4.1% in the previous quarterly survey. This was the highest
balance since the BOE Credit Conditions Survey began in June 2007, at
the outset of the credit crunch. A further significant increase in
secured household lending was expected over the next three months, with
the Funding for Lending Scheme cited as an important contributing
factor.

The availability of credit in the corporate sector fell slightly in
Q3, dropping to a net -5.5%, from a net -3.2% reading in the second
quarter.

The survey found corporate credit availability was expected to
improve slightly in the next three months. A net 2.6% of respondents
said they expected credit availability to rise in the next three months,
up from 0.7% in Q2.

Lenders reported that demand for credit from small and large
companies had fallen in the three months to beginning-September,
although demand from medium-sized firms was unchanged. Demand was
expected to increase slightly from medium-sized firms in Q4, but demand
from large and small firms was expected to remain broadly unchanged.

In terms of defaults, lenders reported that the default rate on
secured loans to households fell slightly in the to beginning-September
but default rates on loans to small and large firms rose.

-London newsroom: +44 207 862 7491 email: ukeditorial@marketnews.com

[TOPICS: M$B$$$,M$$BE$,MABDS$]

North Rhine-Westphalia CPI

September: flat m/m, +1.6% y/y
August: +0.4% m/m, +1.9% y/y
—
Pan-German CPI

MNI median forecast: -0.1% m/m, +1.9% y/y
MNI forecast range: -0.2% to +0.2% m/m

August: +0.4% m/m, +2.1% y/y
—

BERLIN (MNI)- Consumer prices in the western German state of North
Rhine-Westphalia remained unchanged in September, dampening the annual
inflation rate to +1.6% from +1.9%, the state statistics office said
Wednesday.

The monthly result is above the median forecast of -0.1% for
pan-German CPI in a MNI survey of analysts.

After the end of the holiday period, prices for packaged holiday
tours fell 8.3%, while hotel and restaurant services were down 2.1%.

Food prices decreased 0.3%, with seasonal produce down 2.3%.

Following the summer clothing sales, prices for clothing and shoes
rose 5.0% on the month.

On the energy side, heating oil rose 1.3%, motor fuel was up 1.1%,
gas climbed 0.4%, while electricity remained unchanged.

Annual inflation was markedly affected by the end of university
tuition fees in October 2011. Without this special effect, the annual
inflation rate would have amounted to 2.1%, the statistics office said.

On the energy side, heating oil prices rose 10.9%, motor fuel was
up 7.8%, gas prices climbed 4.0% and electricity prices rose 3.8%.

Food prices were 2.2% higher than a year ago, with seasonal produce
up 6.2%.

The Finance Ministry predicted last week that inflation in Germany
will likely moderate over the coming months due to sinking producer
price pressures resulting from slowing global economic growth.

Some analysts, however, expect inflation to pick up over the medium
term given that monetary policy in the Eurozone is too expansionary for
Germany. With labour costs already up 1.5% in 2Q and further rises
expected, firms may try to raise prices to preserve profit margins.

The economic panel of the German Banking Association (BDB),
consisting of the chief economists of the main private banks in Germany,
last week forecast inflation of 2.0% this year and 1.9% next year.

Due to the difficult economic situation and the modest outlook for
the Eurozone, the panel expects the ECB to cut rates this year again by
another 25 basis points to 0.5%.

While stronger wage growth could lead to inflation risks down the
road, Pier Carlo Padoan, chief economist with the Organisation for
Economic Cooperation and Development, argued recently that Germany
should consider raising its inflation tolerance to help debtor Eurozone
members better adjust.

By accepting higher wage inflation, creditor countries such as
Germany would provide a boost to debtor countries via increased
consumption, while lower wages would allow the Eurozone’s debtor nations
to be more competitive, Padoan said.

Yet, German Chancellor Angela Merkel on Tuesday rejected such
demands, calling on debtor nations instead to bring down their unit
labor costs to become more competitive.

For detailed information see data table on MNI MainWire.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

[TOPICS: M$G$$$,MAGDS$,M$X$$$,M$XDS$,MT$$$$]

GERMANY DATA: NRW Sep CPI unch m/m, +1.6% y/y; Aug +1.9% y/y
–NRW Sep CPI m/m above MNI median for Germany (-0.1%)
–See MNI MainWire for details

• Q3 secured credit to households rises ‘significantly’
• Further gains seen on the back of the funding for lending (FLS) scheme
• Corporate credit supply unchanged, no improvement forecast
• Household lending spreads widen, but seen narrowing in Q4
• Unsecured credit seen rising in last quarter 2012 along with demand for mortgages

Bloomberg reporting

EUR/USD down to 1.2850 on comment.

• To early to measure impact of VAT hike

Brandenburg CPI

September: -0.2% m/m, +1.9% y/y
August: +0.2% m/m, +2.0% y/y
—
Pan-German CPI

MNI median forecast: -0.1% m/m, +1.9% y/y
MNI forecast range: -0.2% to +0.2% m/m

August: +0.4% m/m, +2.1% y/y
—

BERLIN (MNI)- Consumer prices in the eastern German state of
Brandenburg fell 0.2% in September, dampening the annual inflation rate
to 1.9% from +2.0%, the state statistics office said Wednesday.

The monthly result is below the median forecast of -0.1% for
pan-German CPI in a MNI survey of analysts.

After the end of the holiday period, prices for packaged holiday
tours fell 8.3%, while hotel and restaurant services were down 2.5%.

Food prices decreased 0.5%, with seasonal produce down 2.8%.

Following the summer clothing sales, prices for clothing and shoes
rose 2.2% on the month.

Energy prices were mixed, with motor fuel up 3.3%, heating oil up
1.5%, electricity up 0.1% and gas flat.

Annual inflation was again marked by rising energy prices. Heating
oil prices rose 12.6%, motor fuel was up 9.4%, gas prices climbed 3.1%
and electricity prices rose 1.6%.

Food prices were 2.3% higher than a year ago, with seasonal produce
up 5.1%. Prices for clothing and shoes were up 0.8% on the year.

CPI excluding heating oil and motor fuel was down 0.3% on the month
and up 1.5% on the year. CPI-ex seasonal food was down 0.1% on the month
and up 1.9% on the year.

The Finance Ministry predicted last week that inflation in Germany
will likely moderate over the coming months due to sinking producer
price pressures resulting from slowing global economic growth.

Some analysts, however, expect inflation to pick up over the medium
term given that monetary policy in the Eurozone is too expansionary for
Germany. With labour costs already up 1.5% in 2Q and further rises
expected, firms may try to raise prices to preserve profit margins.

The economic panel of the German Banking Association (BDB),
consisting of the chief economists of the main private banks in Germany,
last week forecast inflation of 2.0% this year and 1.9% next year.

Due to the difficult economic situation and the modest outlook for
the Eurozone, the panel expects the ECB to cut rates this year again by
another 25 basis points to 0.5%.

While stronger wage growth could lead to inflation risks down the
road, Pier Carlo Padoan, chief economist with the Organisation for
Economic Cooperation and Development, argued recently that Germany
should consider raising its inflation tolerance to help debtor Eurozone
members better adjust.

By accepting higher wage inflation, creditor countries such as
Germany would provide a boost to debtor countries via increased
consumption, while lower wages would allow the Eurozone’s debtor nations
to be more competitive, Padoan said.

Yet, German Chancellor Angela Merkel on Tuesday rejected such
demands, calling on debtor nations instead to bring down their unit
labor costs to become more competitive.

For detailed information see data table on MNI MainWire.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

[TOPICS: M$G$$$,MAGDS$,M$X$$$,M$XDS$,MT$$$$]

Hesse CPI

September: flat m/m, +2.0% y/y
August: +0.4% m/m, +2.3% y/y
—
Pan-German CPI

MNI median forecast: -0.1% m/m, +1.9% y/y
MNI forecast range: -0.2% to +0.2% m/m

August: +0.4% m/m, +2.1% y/y
—

BERLIN (MNI)- Consumer prices in the western German state of Hesse
were unchanged in September, dampening the annual inflation rate to
+2.0% from +2.3%, the state statistics office said Wednesday.

The monthly result is above the median forecast of -0.1% for
pan-German CPI in a MNI survey of analysts.

After the end of summer clothing sales, prices for clothing and
shoes rose 5.0% on the month.

Energy prices were mixed, with motor fuel up 1.2%, gas up 0.5%,
electricity flat and heating oil down 1.4%.

After the end of the holiday period, prices for packaged holiday
tours fell 8.3%, while hotel and restaurant services were down 1.6%.

Food prices decreased 0.4%, with seasonal produce down 3.6%.

Annual inflation was again marked by rising energy prices. Heating
oil prices rose 9.3%, motor fuel was up 8.4%, gas prices climbed 4.4%
and electricity prices rose 3.2%.

Food prices were 3.5% higher than a year ago, with seasonal produce
up 7.5%. Prices for clothing and shoes were up 0.5% on the year.

CPI excluding heating oil and motor fuel was down 0.1% on the month
and up 1.6% on the year.

The Finance Ministry predicted last week that inflation in Germany
will likely moderate over the coming months due to sinking producer
price pressures resulting from slowing global economic growth.

Some analysts, however, expect inflation to pick up over the medium
term given that monetary policy in the Eurozone is too expansionary for
Germany. With labour costs already up 1.5% in 2Q and further rises
expected, firms may try to raise prices to preserve profit margins.

The economic panel of the German Banking Association (BDB),
consisting of the chief economists of the main private banks in Germany,
last week forecast inflation of 2.0% this year and 1.9% next year.

Due to the difficult economic situation and the modest outlook for
the Eurozone, the panel expects the ECB to cut rates this year again by
another 25 basis points to 0.5%.

While stronger wage growth could lead to inflation risks down the
road, Pier Carlo Padoan, chief economist with the Organisation for
Economic Cooperation and Development, argued recently that Germany
should consider raising its inflation tolerance to help debtor Eurozone
members better adjust.

By accepting higher wage inflation, creditor countries such as
Germany would provide a boost to debtor countries via increased
consumption, while lower wages would allow the Eurozone’s debtor nations
to be more competitive, Padoan said.

Yet, German Chancellor Angela Merkel on Tuesday rejected such
demands, calling on debtor nations instead to bring down their unit
labor costs to become more competitive.

For detailed information see data table on MNI MainWire.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

[TOPICS: M$G$$$,MAGDS$,M$X$$$,M$XDS$,MT$$$$]

ITALY DATA: July sa nominal retail sales fell -0.2% m/m, -3.2% y/y
–May-July 3-month/3 month moving average -1.0%
–July sa food sales -0.1% m/m, -2.0% y/y
–July sa non-food sales -0.3% m/m, -3.8% y/y
–Italy’s July NIC consumer price index rose +0.1 m/m, +3.1% y/y.

GERMANY DATA: Hesse Sep CPI unch m/m, +2.0% y/y; Aug +2.3% y/y
–Hesse Sep CPI m/m above MNI median for Germany (-0.1%)
–See MNI MainWire for details

GERMANY DATA: Brandenburg Sep CPI -0.2% m/m, +1.9% y/y; Aug +2.0% y/y
–Brandenburg Sep CPI m/m below MNI pan-german survey median
–See MNI MainWire for details

After a +0.4%m/m rise in June – ISTAT

ATHENS (MNI) – Public and private sector workers in Greece launched
a massive 24-hour strike Wednesday to protest a new round of austerity
measures being contemplated by the government in Athens and their
official creditors.

The strikers include tax and customs officers, social security fund
workers, municipal employees, lawyers and merchants, as well as people
employed in prefectures, public utilities and state-owned banks.

The strike has been called by the two largest public and private
workers’ unions, GSEE and ADEDY, in light of the government’s decision
to impose further cuts in wages and pensions, working hours and
benefits. The past several weeks have already brought strikes and
protests by doctors, pharmacists, police, uniformed military officers,
teachers, and university professors.

Journalists, who held a 24 hour strike on Monday, will also
participate in today’s walkout, from 0700 GMT to 1200 GMT.

The Greek coalition government led by Prime Minister Antonis
Samaris is planning to send to parliament in the coming weeks a package
containing E13.5 billion worth of budget cuts and reform measures, the
bulk of which will come from spending cuts in wages and pensions and
layoffs in the public sector.

Inspectors of the “troika” – the European Commission, the ECB and
the IMF – are expected to return to Athens next week to finalize the new
program.

According to Greek finance ministry officials, the measures so far
agreed are up to E9.5 billion. Another E2 billion should come from more
spending cuts while the remaining E2 billion is expected to be in the
form of higher revenues from a crackdown on tax evasion.

Initially, the government said it was being required to implement
E11.6 billion worth of new deficit-cutting measures. But Greek Finance
Minister Giannis Stournaras has acknowledged that the total measures
being imposed on Greece have risen to E13.5 billion. Unofficially,
however, the number could go as high as E18 billion, because of a
bigger-than-expected recession and budget gap this year.

–Athens bureau; apapamiltiadou@marketnews.com

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

‘QE3 should prompt China to press ahead with economic reforms’

Who’d be Mariano Rajoy right now?

Looks like the 1.0342 level is proving pivotal this morning and it also coincides with a 61.8%  retracement of the September rally from 1.0167 to 1.0625.

There is some further tech support just below around 1.0320/25 ( Sept 11/12 lows 1.0323) ahead of  1.0300 where good bids lie from  sovereigns and Swiss names. The topside is loaded up with  real money and hedge fund offers  from 1.0380 up to 1.0400 which is likely to cap any short term rally

EUR/AUD is also helping maintain the downward pressure on AUD/USD  and a break higher in the cross through 1.2460 is likely  to accelerate quickly up through 1.2500. Downside support now sits  around 1.2400 with the 200 day MA at 1.2403 coming into play.

AUD/JPY has also felt the pressure, with stops recently tripped down through 80.50, on the back of EUR/JPY sales, to lows of 80.38 and is now targeting the psychological 80.00 level where large sell stops loom.

AUD’s currently around 1.0350

It’s that time of year again.

Forexlive’s favourite charity NDSC is holding its’ annual Buddy Walk.

If you’re feeling generous and would like to support this very worthwhile cause, then hit this link and follow the directions to make a donation.

Thankyou.

Saxony CPI

September: +0.2% m/m, +2.0% y/y
August: +0.3% m/m, +2.1% y/y
—
Pan-German CPI

MNI median forecast: -0.1% m/m, +1.9% y/y
MNI forecast range: -0.2% to +0.2% m/m

August: +0.4% m/m, +2.1% y/y
—

BERLIN (MNI) – Consumer prices in the eastern German state of
Saxony rose 0.2% in September, dampening the annual inflation rate to
+2.0% from +2.1%, the state statistics office said Wednesday.

The monthly result is above the median forecast of -0.1% for
pan-German CPI in an MNI survey of analysts.

After the end of summer clothing sales, prices for clothing and
shoes spiked 7.8% on the month.

Energy prices were mixed, with motor fuel up 1.6%, electricity flat
and both gas and heating oil down 0.1%.

After the end of the holiday period, prices for packaged holiday
tours fell 8.3% while hotel and restaurant services were down 2.7%.
Airline tickets fell 2.9%.

Food prices decreased 0.5% with seasonal produce down 3.4%.

Annual inflation was again marked by rising energy prices. Heating
oil prices rose 10.8%, motor fuel was up 8.6%, gas prices
climbed 4.6% and electricity prices rose 0.6%.

Food prices were 2.8% higher than a year ago with seasonal produce
up 6.0%. Prices for clothing and shoes were up 2.8% on the year.

CPI excluding heating oil and motor fuel was up 0.1% on the month
and 1.6% on the year. CPI-ex seasonal food was up 0.2% on the month and
1.9% on the year.

The Finance Ministry predicted last week that inflation in Germany
will likely moderate over the coming months due to sinking producer
price pressures resulting from slowing global economic growth.

Some analysts, however, expect inflation to pick up over the medium
term given that monetary policy in the Eurozone is too expansionary for
Germany. With labour costs already up 1.5% in 2Q and further rises
expected, firms may try to raise prices to preserve profit margins.

The economic panel of the German Banking Association (BDB),
consisting of the chief economists of the main private banks in Germany,
last week forecast inflation of 2.0% this year and 1.9% next year.

Due to the difficult economic situation and the modest outlook for
the Eurozone, the panel expects the ECB to cut rates this year again by
another 25 basis points to 0.5%.

While stronger wage growth could lead to inflation risks down the
road, Pier Carlo Padoan, chief economist with the Organisation for
Economic Cooperation and Development, argued recently that Germany
should consider raising its inflation tolerance to help debtor Eurozone
members better adjust.

By accepting higher wage inflation, creditor countries such as
Germany would provide a boost to debtor countries via increased
consumption, while lower wages would allow the Eurozone’s debtor nations
to be more competitive, Padoan said.

Yet, German Chancellor Angela Merkel on Tuesday rejected such
demands, calling on debtor nations to rather bring down their unit labor
costs to become more competitive.

For detailed information see data table on MNI MainWire.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

[TOPICS: M$G$$$,MAGDS$,M$X$$$,M$XDS$,MT$$$$]

Italy 10 year govt bond yield up 10 bps at 5.20%

Spain’s IBEX down -1.5%, Italy’s FTSE MIB down -1.0%.

EUR/USD unchanged from my last update, presently at 1.2868.

I’m going for a little nap.  Shout if you see anything happening, thanks

Deutsche bank sees $2000 soon, Citi’s gunning for $2500 in the next 6 months, and now a BofA  analyst  sees a move to $3000 in the longer term (2014) on the back of the Fed’s recent announcement of open-ended bond buying

Here’s why…

(Business Insider)

Gold’s  currently trading around $1762

FRANCE DATA: September consumer sentiment 85, down from July 87
– France September sentiment on good time to buy -29 vs July -26
– France September jobless worries rise to +73 vs July +67
– France September future inflation fears rise to -14 vs July -24
– See MNI MainWire for details