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Reports Europe

European stock market, economy and companies update (December 23, 2013)

December 23, 2013, Monday, 12:13 GMT | 07:13 EST | 16:43 IST | 19:13 SGT
Contributed by Trade The News


***Notes/Observations***
- China money market rates remain higher despite recent PBoC liquidity adds; Shanghai Composite does register its first higher close in 10 sessions
- Apple reaches deal with China Mobile to sell iPhone 5S and 5C
- ECB's Praet (Belgium) Italian lawmakers should stop talking about leaving the euro; reiterates view that ECB ready to act if a credit crunch becomes a threat


*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***
***Equities**
Indices [Stoxx50 flat, FTSE 100 +0.4% at 6,633, DAX +0.4% at 9,434, CAC-40 -0.1% at 4,190, IBEX-35 -0.2% at 9,666, FTSE MIB flat at 18,565, SMI flat at 8,082, S&P 500 Futures +0.4% at 1,822]

- Market Focal Points: European equity markets trade mixed following higher open, DAX trades at fresh record high, Apple suppliers gain on China Mobile deal

By Sector
- Industrials [Lanxess LXS.DE +2% (CEO outlook commentary)]
- Consumer Discretionary [Bureau Veritas +3% (acquisition); Premier Foods PFD.UK -10% (rights offering speculation)]
- Technology [Dialog Semi DLG.DE +2% (China Mobile/Apple deal)]
- Stoxx50 Sectors [Technology +0.3%, Financials +0.3%, Basic Materials +0.1%, Consumer Cyclical +0.1%, Consumer Non-Cyclical flat; Energy -0.8%, Utilities -0.5%, Telecom -0.3%, Industrials -0.1%]

Speakers:
- UK Trade Min Livingston: Britain needs to help medium-sized companies to export more if it seeks to double target to £1.0T by 2020
- France labor Min Sapin: Unemployment trend is in the process of reversal
- Russia Finance Ministry stated that the Ukraine would receive $3.0B from Eurobonds on Tuesday, Dec 24th and it would decide in early 2014 on next tranche
- Hong Kong Monetary Authority (HKMA) Quarterly Bulletin: Inflationary pressure to moderate in early 2014. Subdued imported inflation and slower increases in new home rentals will help to contain upward pressure
- India Central Bank (RBI) gov Rajan commented that it was not done with rate increases and reiterated view that it needed to wait to see how things play out before making a decision on rates. He added that a good harvest would bring down food prices
- Indonesia might announce ore export ban policy before end of 2013 in which the Govt to prioritize national economic interest in deciding policy on raw materials export ban

Currencies/Fixed Income:
- US Treasury 10-year yield was briefly was down as much as 5bps to approach 2.84% on 'little news' and then saw the bulk of the move recover quickly recover 2.90%. Approx 4K contracts went through electronic trade according to dealers. Later the CME noted that all futures that traded above 131.12 would be adjusted back to the price of 131.12
- Major European pairs were little changed as liquidity conditions dryed up into year end.
- The USD/CNY was at a 20-year low in the session as the pair edged closer to test 6.0700. The yuan was at its best level since the Chinese govt unified the official and market rates back in 1993

Political/In the Papers:
- (FR) Fitch affirmed France sovereign rating at AA+; outlook Stable
- (EU) ECB's Praet (Belgium): Euro is irreversible; Italians should abandon any considerations of leaving the EMU
- (DE) Germany Economics Ministry's annual report: Govt expects annual GDP to average 1.5% through 2018
- (GR) Greek coalition govt passed through a property tax reform as demanded by creditors, but lost a lawmaker who was expelled after voting against the measure - financial press; Coalition majority of the govt has been narrowed further to 152 out of 300 lawmakers.
- (UK) BOE's Bailey: Monitoring the fast-rising housing market; BOE has the policy tools to act if needed - UK press
- (UK) Business Secretary Cable suggested that higher interest rates could be needed in order to slow the property market
- (US) Fed's Rosengren: Dissented this week against the FOMC taper decision because a stronger economic trajectory had not yet been established
- (CN) Daily Shibor fixings: 1-week: 8.8430% v 7.6540% prior (6th consecutive rise,

**Looking Ahead***
- (IT) Italy confidence vote on 2014 budget in the Senate
- (BE) Belgium Dec CPI M/M: No est v 0.1% prior; Y/Y: No est v 0.8% prior
- (ES) Spain Nov YTD Budget Balance: No est v -€37.0B prior
- (AR) Argentina Dec Consumer Confidence Index: No est v 49.89 prior
- 05:30 (BR) Brazil Central Bank Weekly Economists Survey
- 05:30 (HU) Hungary to sell 3-Month Bills
- 06:00 (IT) Italy PM Letta year-end press conference
- 06:00 (IE) Ireland Nov Property Prices M/M: No est v 1.8% prior; Y/y: No est v 6.1% prior
- 06:00 (IL) Israel to sell 2016, 2018 and 2023 bonds
- 06:45 (US) Daily Libor Fixing
- 07:00 (CL) Chile Nov PPI M/M: No est v 0.2% prior
- 07:00 (EU) ECB to drain €178.5B in 7-day Term Deposit Tender to offset govt bond purchases under SMP program
- 08:30 (US) Nov Chicago Fed National Activity Index: +0.25e v -0.18 prior
- 08:30 (US) Nov Personal Income: +0.5%e v -0.1% prior; Personal Spending: 0.5%e v 0.3% prior
- 08:30 (US) Nov PCE Deflator M/M: 0.1%e v 0.0% prior; Y/Y: 0.9%e v 0.7% prior
- 08:30 (US) Nov PCE Core M/M: 0.1%e v 0.1% prior; Y/Y: 1.2%e v 1.1% prior
- 08:30 (CA) Canada Oct GDP M/M: 0.2%e v 0.3% prior; Y/Y: No est v 2.3% prior
- 08:30 (CA) Canada Oct Average Weekly Earnings Y/Y: No est v 1.9% prior
- 08:50 (FR) France Debt Agency (AFT) to sell combined €4.7B in 3-month, 6-month and 12-month Bills
- 09:55 (US) Dec Final University of Michigan Confidence: 82.7e v 82.5 prelim
- 10:30 (IL) Israel Central Bank Interest Rate Decision: Expected to leave Base Rate unchanged at 1.00%
- 11:00 (US) Fed to purchase $1.25-1.75B in Notes
- 11:30 (BR) Brazil Nov Federal Debt data
- 11:30 (US) Treasury to sell $59B in 3-Month and 6-Month Bills
- 13:00 (US) Treasury to sell $20B in 4-week bills


***Economic Data***
- (SG) Singapore Nov CPI M/M: 0.7% v 0.9%e; Y/Y: 2.6% v 2.5%e
- (DE) Germany Nov Import Price Index M/M: +0.1% v -0.1%e; Y/Y: -3.0% v -3.1%e
- (CH) Swiss Nov UBS Consumption Indicator: 1.43 v 1.26 prior
- (FI) Finland Nov PPI M/M: -0.3% v -0.4% prior; Y/Y: -0.9% v -0.9% prior
- (FI) Finland Nov Preliminary Retail Sales Volume Y/Y: 0.1% v 0.4% prior
- (HU) Hungary Q3 Current Account: €1.1B v €0.9Be
- (CH) SNB Sight Deposits for Week Ended Dec 20th (CHF): 317.1BB v 316.3B prior
- (HU) Hungary Oct Final Trade Balance: €759.1M v €781.4M prelim
- (ES) Spain Nov PPI M/M: -0.9% v -0.6% prior; Y/Y: -0.6% v -0.2% prior
- (CH) Swiss Nov M3 Money Supply Y/Y: 8.5% v 9.1% prior
- (AT) Austria Oct Industrial Production M/M: -0.8% v -0.5% prior; Y/Y: -0.6% v -0.1% prior
- (EU) ECB €341M borrowed in overnight loan facility vs. €90M prior; €53.4B parked in deposit facility vs. €43.8B prior - Daily Eurosystem Liquidity Conditions
- (HK) Hong Kong Nov CPI Composite Y/Y: 4.3% v 4.3%e
- (PL) Poland Nov Unemployment Rate: 13.2% v 13.2%e
- (PL) Poland Nov Retail Sales M/M: -5.8% v -6.1%e; Y/Y: 3.8% v 3.2%e
- (IT) Italy Dec Consumer Confidence Index: 96.2 v 98.7e
- (NO) Norway Oct AKU Unemployment Rate: 3.3% v 3.5%e
- (BE) Belgium Nov YTD Budget Balance: -€12.9B v -€10.8B prior

Fixed Income:
- (EU) ECB allotted €133.9B in 7-day Main Refi Tender at fixed 0.25% vs. €120.0Be