UK Data

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• Greek FinMin: Economy will shrink by over 4.5% in 2011
• RUMOUR RUMOUR
• UK Data: Local Government Helps July PSNB-X Shrink On Year
• Mutterings of cable fix demand
• UK July PSNB -1.961 bln
• BOE Weale: Double-Dip Risk Slightly Higher, But Still Unlikely
• I’m a bit of……….
• Finland FinSec: No Compromise On Greek Collateral Deal: Press
• Russia buys EUR/USD off lows
• European stocks seeing accelerated losses
• Apologies for disruptions to service this week
• A shaken Europe looks for bolder fixes – WSJ
• China Premier Wen: Confident US economy will get back on track for healthy growth
• Finland: No compromise on Greek collateral issue
• Update:ECB Stark:Eurobonds Would Be EMU Transfer Union:Press
• Slowakia FinMin: Fiscal Eurozone Union Not Sustainable
• Earthquake shakes buildings in Tokyo – Witnesses
• MNI Survey: Japan July CPI Seen Flat Y/Y Under New Formula
• ECB’s Stark: Euro-bonds are a false solution, would provide wrong incentives
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Greek FinMin: Economy will shrink by over 4.5% in 2011 Posted: We should not need new austerity measures if we apply programme EUR/USD has extended earlier recovery, presently up at 1.4310. Real money has been buying in this latest move higher. Reports of decent-sized sell interest clustered up at 1.4350/60.

RUMOUR RUMOUR Posted: Talk in the market Swiss National Bank may implement tax on foreign held CHF deposits as early as this weekend. Nothing like a good old Friday rumour

UK Data: Local Government Helps July PSNB-X Shrink On Year Posted: –UK Jul PSNB-X Stg0.02bn Vs Stg3.498Bn In Jul 2010 –UK Jul PSNCR -Stg5.646bn Vs -Stg18.533Bn In Jul 2010 –UK Jul PSNB -Stg1.961bn Vs Stg1.350Bn In Jul 2010 –UK Jul CGNCR -Stg4.366bn Vs -Stg2.965bn In Jul 2010 LONDON (MNI) – UK public sector net borrowing shrunk in July compared to a year ago, boosted by bank [...]

Mutterings of cable fix demand Posted: As one source said “on the hour, every hour” Apparently this is just like yesterday. I wouldn’t know about that as I was a disinterested observer yesterday. Great afternoon though Spent most of it in a lovely pub garden. Back to the cable fix interest; gotta think this is probably M&A related.

UK July PSNB -1.961 bln Posted: Better than medium forecast of +0.5 bln. Cable up at 1.6500 from around 1.6485 post release.

BOE Weale: Double-Dip Risk Slightly Higher, But Still Unlikely Posted: LONDON (MNI) – The risk of a double-dip recession in the UK is now slightly greater than it was, but is still very unlikely, Bank of England Monetary Policy Committee Member Martin Weale has said. “The risk is perhaps slightly greater than it was, but I don’t expect we will get a double dip,” Weale [...]

I’m a bit of………. Posted: A fan of Barclays Capital. Just reading some comments of theirs on Dow Jones regarding USD/CHF. They’re ostensibly bullish the pairing. Couple of levels to maybe bear in mind. They will flip to bearish if they see .7750 give way. And they see break above .8050 suggesting a new upleg as being underway. We sit [...]

Finland FinSec: No Compromise On Greek Collateral Deal: Press Posted: FRANKFURT (MNI) – Finland is not willing to make any compromises with other Eurozone members when discussing collateral deals with Greece for the upcoming bailout, comments by the financial secretary at the Finnish Ministry of Finance in the Helsingen Sanomat suggested on Friday. “If the agreement does not suit the other countries as is, then [...]

Russia buys EUR/USD off lows Posted: We’ve seen slight recovery off lows, presently at 1.4275. Not clear whether this is the central bank buying or whether its general buying out of the country. UPDATE: Whatever it is we’re up at 1.4290 now.

European stocks seeing accelerated losses Posted: DAX down 2.2% At lowest level since February 2010. NYM light crude off two full bucks. EUR/USD down at 1.4268. Talk of sell stops through 1.4260. Funny place to put them if you ask me. UPDATE: Talk of stops through 1.4250 as well. Now that makes more sense to me.

Apologies for disruptions to service this week Posted: I’ll be glad when this week is over.

A shaken Europe looks for bolder fixes – WSJ Posted: Charles Forelle in WSJ.

China Premier Wen: Confident US economy will get back on track for healthy growth Posted: Important for Biden to give clear message US will protect value of treasury holdings In reply US Vice President says China has “nothing to worry about” concerning US treasuries

Finland: No compromise on Greek collateral issue Posted: Here’s the newspaper story

Update:ECB Stark:Eurobonds Would Be EMU Transfer Union:Press Posted: –Adds Comments on Maastricht Treaty FRANKFURT (MNI) – The introduction of so-called Eurobonds would be tantamount to making a transfer union out of the Eurozone, European Central Bank Executive Board member Juergen Stark said in an interview with the German daily Handelsblatt published Friday. “Eurobonds are not only the entrance into a transfer union, they [...]

Slowakia FinMin: Fiscal Eurozone Union Not Sustainable Posted: FRANKFURT (MNI) – Turning the Eurozone into a fiscal union is neither sustainable not desirable, Slovak finance minister Ivan Miklos wrote in an opinion piece published in German daily Handelsblatt on Friday. “A fiscal union would amount to a transfer union — a politically non-sustainable concept,” Miklos said. Even if the euro would survive under [...]

Earthquake shakes buildings in Tokyo – Witnesses Posted: Tsunami warning issued for North East Japan Preliminary magnitude 6.8 earthquake UPDATE: Tsunami advisory lifted for North East Japan

MNI Survey: Japan July CPI Seen Flat Y/Y Under New Formula Posted: – See Separate Table For Details Of Individual Economist Forecasts TOKYO (MNI) – Japan’s core consumer price index for July is expected to be unchanged from a year earlier under the new data formula, improving from a 0.2% y/y fall in June and after posting drops for more than two years, according to the median [...]

ECB’s Stark: Euro-bonds are a false solution, would provide wrong incentives Posted: And he’s absolutely right ofcourse Euro bonds would mean transfer union Would treat the symptoms, not address the cause of crisis Neither doubling EFSF funds, nor ECB pumping more money into system would work Structural corrections are needed instead Size and speed of ECB bond purchases will depend on how long market tensions continue Asked [...]