Recap 2-16-12

Main Items:

  • The ECB is swapping its current Greek bond holdings for new ones, and is expected to settle the swap on Monday.
  • Moody’s may cut 17 banks with global capital markets operations by up to three notches. They are also reviewing 114 European banks.
  • The Greece decision was pushed to Monday, February 20th.
  • According to banking sources, Europe and the IMF asked the IIF to make new concessions last minute, the most important of which is to reduce the rate of early redemption of 15% to 10% and increase the percentage of remaining after the haircut, debt extended to 30 years. While the proposal tabled by Greece, and by decision of 26 October, provided mowing the nominal value of debt by 50% early redemption of 15% and elongation of the remaining 35% bonds with a duration of 30 years, Europe and the IMF now suggesting early repayment be limited to 10% and 40% extended debt of 200 billion. The proposal aims to further reduce the Greek debt by 15 billion.
  • US Initial Jobless Claims declined to 348k last week vs 365k exp and 358k prev
  • US Core PPI was unchanged at 3.0% YoY in Jan vs 2.7% exp
  • Philly Fed improved to 10.2 in Feb vs 9 exp and 7.3 prev
  • Spain lifted the ban on short selling of financials, effective today.

Overseas:

  • Australian Employment improved 46.3k in Jan vs 10k exp and -29k prev. This took the UE rate down to 5.1% vs 5.3% exp and 5.2% prev
  • Riksbank cut rates by 25bps to 1.5% as exp

Upcoming Data:

  • Canada CPI, US CPI, Japanese Merchandise Trade Balance

Commentary:

None.

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