- Merkel: There are chances of solution on Greece on Monday
- Merkel: EU is facing a ‘difficult situation’
- Merkel: Greece priority is reforming the state
- LDP releases policy platform ahead of Dec 16 election: Calls for setting 2% inflation target with BOJ. Calls for BOJ cooperation in seeking drastic easing
- LDP’s Abe: Would pursue monetary easing of a scale exceeding that when LDP was previously in power 3 years ago
- Greek PM: Technical difficulties in finding a solution are not justified in delaying aid (don’t sound very happy)
- French FinMin: Greek accord is very close. Greek accord only needs final touches
- Schaeuble tells lawmakers it is still open question whether 2020 or 2022 is benchmark for Greek debt sustainability. Tells lawmakers there is still no agreement on how to fill 14 bln hole in Greek finances through 2014 -Source
- Merkel: Greece’s financing hole through 2016 can be filled with combination of lower rates and increasing EFSF
- Italy Europe Minister: Sees significant chance of agreement on EU budget at Nov 22-23 council meeting
- Bank of Spain Gov Linde: ECB has contributed to stability in crisis. Spain economy in ‘delicate situation’
- More Linde: Lower growth could put at risk 2013 budget goal (sure could)
- Even more Linde: ‘Not impossible’ that Spain meets its deficit target this year
- UK October PSNB £6.503 bln, worse than expected £4.0 bln
- Bank of England minutes: MPC voted 9-0 to keep rates at 0.5%, 8-1 to keep QE target at £375 bln. Miles called for 25 bln more QE
- Moody’s chief French analyst Hornung: Expects zero French growth in 2013 - Le Figaro
- France ‘deplores’ Moody’s over loss of AAA rating – The Telegraph
More yen weakness, USD/JPY up at 82.35 from early 81.90 with well-documented 82.00 barrier option interest simply brushed aside. EUR/JPY up at 105.45 from early 104.30. Just read headlines 4 and 5 above if you’ve been living on a different planet recently and are in need of an explanation for the accelerated yen weakness.
EUR/USD has ground out a gradual recovery, up at 1.2805 from early 1.2760. Soothing words from likes of Merkel and French FinMin Moscovici that a Greek accord/solution, call it what you will, is real close have helped the single currency regain it’s poise. BIS was seen selling circa 1.2790 stalling the recovery but not stopping it.
Cable up at 1.5930 from early 1.5905 having been as high as 1.5937 Asian central bank selling in the 1.5930 area has slowed the rally.
