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Reports Europe

European stock market, economy and companies update (December 26, 2013)

December 26, 2013, Thursday, 12:05 GMT | 07:05 EST | 16:35 IST | 19:05 SGT
Contributed by Trade The News


***Notes/Observations***
- Japan Nikkei225 Index closed above 16,000 level for first time since Dec 2007
- Japan PM Abe visited the Yasukuni Shrine which angers regional neighbors
- BOJ Nov Minutes reiterates that it expected a moderate economic recovery and would adjust policy as needed
- China said to have set 2014 GDP growth at 7.6% vs. 7.5% official target


*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***
***Equities**
Indices [Stoxx50 closed FTSE 100 closed, CAC-40 closed, IBEX-35 closed, S&P 500 Futures reopens at 06:00 ET/11:00 GMT)+, DAX closed, SMI closed, FTSE MIB closed]

- Boxing Day holiday kept equity markets closed.


Speakers:
- Portugal PM Coelho stated that the country continued to face uncertainties and obstacles to overcome crisis and that all instruments needed to be mobilized to conclude bailout program without disturbances. He saw 2014 as full of challenges
- Belgium Fin Min Geens stated that the country was on track to lower debt to GDP ratio below 100%. He added that Budget Deficit to GDP ratio was below 3% with economic growth of approx 1% even with strict fiscal policy
- S&P raised Ukraine sovereign outlook to stable from negative and affirmed its B- rating. S&P stated that Russia $15B direct financing announced on Dec 18th should cover govt external financing needs over the next 12 months. It cautioned that it could lower Ukraine's sovereign ratings if Russian financial support became less certain
- Russia Fin Min Siluanov stated that he was in talks with Ukraine about instruments other than bonds to support budget and financial markets. Russian banks in talks with Ukraine companies about transport and other projects
- Taiwan Central Bank post rate decision statement noted that global economy was seen as stable but Fed tapering would affect the recovery. It noted that liquidity was moderately loose. It saw 2014 GDP growth above 2013 level and forecasted 2014 CPI at 1.2% vs. 0.9% this year. It noted that inflationary pressure would not be significant. Exports to have stable growth in 2014
- Thailand Election Commission said to have asked govt to postpone Feb 2nd .election citing violence
- China to keep fuel prices unchanged in current cycle (**Note: NDRC has raised fuel prices during the last two cycles. The most recent was back on Dec 12th)
- China Fin Min Lou Jiwei to effectively prevent fiscal risks in 2014. China to push forward resource tax reform and enhance local govt debt management
- China Foreign Ministry spokesperson Qin Gang: Shrine visit undermines foundation of China-Japan ties
- US Embassy in Japan: Disappointed by shrine visit. PM Abe visit will exacerbate tensions with neighboring countries. Wants Japan to find constructive ways to deal with historical issues. It also asked japan to create conditions to solve island dispute

Currencies/Fixed Income:
- The Nikkei225 Index registered its seventh straight gain and hit a fresh six-year high above 16,000 as the yen continued to hit 5-year lows against the USD and Euro currencies. The USD/JPY edged closer to testing the 105 handle; highest level since October 2008. Some dealers noted that better than expected upcoming US jobless claims data could help it test the 105 handle.
- The Turkish currency (Lira) continued to hit fresh record lows against the USD and Euro after Turkey PM Erdogan reshuffled his cabinet following an unscheduled meeting with President Gul. The USD/TRY tested above the 2.10.

Political/In the Papers:
- Private equity firms to pay over $1.0B to settle collusion case that is winding its way through a Boston federal court - NY Post
- Turkey PM Erdogan reshuffled his cabinet following an unscheduled meeting with President Gul. Replaced the three resigning ministers (Interior, economy and the environment)
- Japan PM Abe visited the Yasukuni Shrine (seen by Japan's Asian neighbors as a symbol of its past militarism)
- BOJ Gov Kuroda stated that Japan was not completely out of deflation but on track to achieve 2% price target.
- South Korea Fin Min Hyun stated that its economic recovery was strengthening but monetary policy changes in advance nations were a risk.
- Elderly man dies from H7N9 bird flu in Hong Kong

**Looking Ahead***
All times listed for economic events are denominated in Eastern Standard Time (Add 5 hours for GMT equivalent)
- 06:00 (RU) Russia Gold and Forex Reserve w/e Dec 20th: No est v $512.7B prior
- 06:30 (CL) Chile Central Bank's Traders Survey
- 08:30 (US) Initial Jobless Claims: 345Ke v 379K prior; Continuing Claims: 2.83Me v 2.884M prior
- 09:00 (MX) Mexico Nov Preliminary Trade Balance: -$742Me v -$128.9M prior
- 11:00 (US) Weekly DOE Crude Inventories
- 12:00 (FR) France Nov Net Change in Jobseekers: -5.0Ke v -20.5K prior; Total Jobseekers: 3.27Me v 3.275M prior
- 14:00 (AR) Argentina Nov Supermarket Sales Y/Y: No est v 18.4% prior; Shop Center Sales Y/Y: No est v 20.4% prior
- 16:00 (KR) South Korea Jan Manufacturing Business Survey: No est v 78 prior; Non-Manufacturing Survey: No est v 72 prior
- 18:15 (JP) Japan Dec Markit/JMMA Manufacturing PMI: No est v 55.1 prior
- 18:30 (JP) Japan Nov Jobless Rate: 3.9%e v 4.0% prior; Job-to-Applicant Ratio 3.9%e v 4.0% prior
- 18:30 (JP) Japan Nov National CPI Y/Y: 1.5%e v 1.1% prior; CPI Ex Fresh Food Y/Y: 1.1%e v 0.9% prior; CPI Ex Food, Energy Y/Y: 0.5%e v 0.3% prior
- 18:30 (JP) Japan Nov Tokyo CPI Y/Y: 0.9%e v 0.9% prior; CPI Ex Fresh Food Y/Y: 0.7%e v 0.6% prior; CPI Ex Food, Energy Y/Y: 0.3%e v 0.2% prior
- 18:50 (JP) Japan Nov Preliminary Industrial Production M/M: 0.4%ev 1.0% prior; Y/Y: 5.4%e v 5.4% prior
- 18:50 (JP) Japan Nov Retail Trade M/M: +1.0%e v -1.0% prior; Y/Y: 3.0%e v 2.3% prior
- 20:00 (PH) Philippines Oct Trade Balance: -$700Me v -$666M prior; Imports: No est v $5.7B prior; Imports Y/Y: 8.0%e v 7.2% prior
- 20:30 (CN) China Nov YTD Industrial Profits Y/Y: No est v 13.7% prior


***Economic Data***
- (TR) Turkey Dec Consumer Confidence Index: 75.0 v 77.5 prior
- (TW) Taiwan Central Bank (CBC) left its Benchmark Interest Rate unchanged at 1.875%; as expected

Fixed Income:
- None seen