-CME index futures will trade as usual Weds; NYSE & Nasdaq confirm stock mkts will open Weds; SIFMA recommend bond mkts open Weds
-Hurricane Sandy: has caused at least 45 deaths & left 8m homes without power
-Spain: Sept YTD Central Govt Deficit 4.4% (3.9% ex transfers); lower vs 4.7% in Aug
-Spain Dep Budget Min: Central govt will beat deficit tgt; will be less than 4%; studying bailout for toll-roads
-Spain Spokesperson: Expect first tranche of EU aid for banks by early Dec
-Source: majority of Greek Pasok party will vote in favour of austerity package & labor reforms
-ekathimerini: draft 2013budget provides measures of €9.2 B, GDP -4.5% & primary surplus of 0.5%
-EU’s Wieser: Greek Troika negotiations not finished but close to an end; could receive a “flatter adjustment process"; debt writedown not discussed
-ECB’s Praet: non-standard measures in place as long as necessary; can pull back if inflation risks emerge; signs of Eurozone recovery
-ECB’s Coeure: No shortage of collateral; do not think ECB will further extend collateral moves – done a lot already
-ECB’s Coeure: price risks balanced; v vigilant to any risks to price stability; ECB not negotiating w/ any govt on bond buys; have tools needed to reduce liquidity but not needed now
-Rtrs: Portugal expected to pass budget today; focus on whether it is challenged by constitutional court
-FT: notes concerns over Merkel’s majority; coalition anxious about voting for further Greek aid & a program for Spain
Merkel meeting with IMF / OECD / World Bank leaders
-Joint Statement: world economy is fragile with uncertain prospects; debt levels in major economies unsustainable
-Merkel: global growth prospects weaker than hoped; sees obvious risks
-Merkel: Greece not a major topic at talks; waiting for Troika rpt
-IMF’s Lagarde: govts must consolidate; accommodative mon policy may be needed
-UK: GfK Consumer Conf small miss at -30 vs -28 cons
-Fed’s Kocherlakota: disagree Fed policy too easy; low inflation & high unemp suggests policy too tight
-NY Fed: Bank facility safe, unharmed & open
-Japan: Oct PMI falls to 49.9 from 48.0 in Sep; 18m low
-China: Yuan opened strong; one pip away from daily 1% limit before moderating
Spain Banking Bailout
May Be Cut to EU30b: Cinco Dias
[BKIA SM 1.153, +0.05 4.82%]
Amount would be E10b lower than estimates from Spanish government, Cinco Dias reports.
The sale of lenders’ assets to investors and to the so-called bad bank, along with application of losses to junior bondholders of nationalized banks would reduce the use of taxpayer funds: Cinco Dias.
Cinco Dias says information for article came from unidentified executives in the financial sector briefed by officials at Economy Ministry
Press official at economy ministry contacted by the newspaper reiterates EU40b estimate for use of public funds: Cinco Dias
SPAIN: Spain’s central government budget deficit narrowed in September as sales tax revenue jumped 11.9% following an increase the VAT rate, the
Budget Ministry said late yesterday. The central government’s deficit was 4.39% of gross domestic product in the nine months through September, compared with 4.77% in the eight months through August.
SPAIN: The Bank of Spain will publish current account, capital account and foreign portfolio investment data at around 10am (CET).
SPAIN: Public employees may be fired with 20 days per year paid.
SPAIN: Spain’s economic malaise was responsible for Imperial Tobacco slashing the value of its business there by £1.2 billion as it warned that economic
conditions remained difficult in Europe’s fourth-biggest economy, The Times reports.
SOVEREIGN CRISIS: Greek austerity reforms look more likely to be passed after most PASOK members in the country's parliament said they backed the measures proposed by prime
minister Antonis Samaras (Financial Times).
BANCO SABADELL: Doesn´t plan to invest in Sareb, yet, Sabadell Chairman said.
UBS PT Raised 9% to Chf16 at Exane; Kept at Outperform
Raised to Buy from Neutral at BofAML
UBS PT Raised to Sf17 VS Sf13 at Berenberg, Stays Buy
Erste Bank PT Raised to Eu21 From Eu19 at Morgan Stanley
CS RESEARCH - DOWNGRADE Swiss Life (SLHN VX) to Underperform following strong performance.
Raised to Accumulate from Neutral at Helvea
Considers group’s further plans as welcome acceleration, extension of original plans.
Says risk decreasing
PT increased to CHF16 vs CHF12.5
ECON RELEASES: UK TIMES
10:00 - Eurozone CPI Estimate
10:00 - Eurozone Unemployment Rate
10:00 - Italian CPI
11:00 - Italian PPI
11:00 - US MBA Mortgage Applications
12:30 - US Employment Cost Index
12:30 - Canadian GDP