Today's Headlines & Speakers
Thursday, December 27, 2012
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- IMF's Lagarde: France should worry about the credibility of its efforts on fiscal reforms, rather on if it would meet EU's budget deficit target of 3% of GDP.
- ECB's Coene: ESM could serve as European bank resolution fund .
- Spain Autonomous Regions to call for looser deficit targets with Catalonia to lead the regions in asking the central govt to ease 2013 deficit targets of 0.7% vs 1.5% y/y. The request to be made at regular meeting with Budget Min Montoro in Jan.
- Spain said to be planning decree to prevent early retirement which would make it harder and more expensive for companies to use early retirement . Govt might delay early retirement age to 63 and the decree would complement pension reform passed by prior govt which comes into effect on Jan 1st 2013 and gradually raises retirement age to 67.
- France Fin Min Moscovici penned an Op Ed articile in the German press which reiterated that the country has duty to reverse years of budget deficits as public debt had risen to unacceptable 1.7T. He reiterated 2013 deficit target of 3% and that France planned to start lowering its debt from 2014 although the plan was ambitious.
- Japan Govt Advisor Hamada: BoJ foreign bond buying could be a policy option and the central bank should buy more long dated JGBs and risk assets. He reiterated that a desirable inflation target of 2-3% and BoJ should pursue unlimited monetary easing. Must change BoJ law that guarantees its independence to hold BoJ accountable for its policy objectives.
- Japan Ministry of Finance (MOF) expanded its special forex monitoring program by three months until end of March 2013 (**Note: program was introduced in Aug 2011 when the BoJ performed a second act of solo FX to help curb JPY currency appreciation).
Political :
- (DE) German Econ Min Roesler: Planning the sale of state holdings by 2016 in order to reach balanced budget - German press .
- (DE) IMF's Lagarde: EMU growth to accelerate in 2013; warns against overly ambitious fiscal consolidation in Germany - Germany press.
- (CY) Russia Deputy Fin Min Storchak: No plan to grant 5B Cyprus loan request, too much risk for one creditor- financial press.
- (NL) Netherlands Fin Min Dijsselbloem said to be opposed to relaxing new mortgage rules - US financial press; Said may change discussion on EU budget limit of 3%; not in Dutch government's interest to be the first to start talks on budget limit.
- (US) Treasury Sec Geithner confirms will conduct additional measures to avoid reaching the debt ceiling limit, as has been customary in prior debt ceiling impasses; Technically will hit debt limit on Dec 31, but will take extraordinary measures to avoid hitting the limit as it has in the past; Measures will create $200B in headroom.
- (US) Moody's: highly likely that US will eventually act to raise the debt limit; direction of US bond ratings most likely to be determined by the outcome of budget negotiations; if there is no clear path on the fiscal outlook and debt trajectory in 2013, the US sovereign rating will be downgraded.
- (US) China rating agency Dagong Global place US sovereign rating on Negative watch citing lack of political consensus on how to tackle debt problem over the long term .
- (US) Republican aide: Republican House caucus expected to hold conf call Thursday to discuss fiscal cliff - financial press .
- (US) Senate Majority Leader Reid's (D-NV) reiterates call for the House to act on the Senate bill extending middle class tax cuts in order to avoid fiscal cliff effects. The Senate bill is the only one that can become law.
- (US) House Speaker Boehner's office: The Senate should act on House passed budget bills; Senate must act first on House proposals, then House will consider Senate bill revisions.
- IMF's Lagarde: France should worry about the credibility of its efforts on fiscal reforms, rather on if it would meet EU's budget deficit target of 3% of GDP.
- ECB's Coene: ESM could serve as European bank resolution fund .
- Spain Autonomous Regions to call for looser deficit targets with Catalonia to lead the regions in asking the central govt to ease 2013 deficit targets of 0.7% vs 1.5% y/y. The request to be made at regular meeting with Budget Min Montoro in Jan.
- Spain said to be planning decree to prevent early retirement which would make it harder and more expensive for companies to use early retirement . Govt might delay early retirement age to 63 and the decree would complement pension reform passed by prior govt which comes into effect on Jan 1st 2013 and gradually raises retirement age to 67.
- France Fin Min Moscovici penned an Op Ed articile in the German press which reiterated that the country has duty to reverse years of budget deficits as public debt had risen to unacceptable 1.7T. He reiterated 2013 deficit target of 3% and that France planned to start lowering its debt from 2014 although the plan was ambitious.
- Japan Govt Advisor Hamada: BoJ foreign bond buying could be a policy option and the central bank should buy more long dated JGBs and risk assets. He reiterated that a desirable inflation target of 2-3% and BoJ should pursue unlimited monetary easing. Must change BoJ law that guarantees its independence to hold BoJ accountable for its policy objectives.
- Japan Ministry of Finance (MOF) expanded its special forex monitoring program by three months until end of March 2013 (**Note: program was introduced in Aug 2011 when the BoJ performed a second act of solo FX to help curb JPY currency appreciation).
Political :
- (DE) German Econ Min Roesler: Planning the sale of state holdings by 2016 in order to reach balanced budget - German press .
- (DE) IMF's Lagarde: EMU growth to accelerate in 2013; warns against overly ambitious fiscal consolidation in Germany - Germany press.
- (CY) Russia Deputy Fin Min Storchak: No plan to grant 5B Cyprus loan request, too much risk for one creditor- financial press.
- (NL) Netherlands Fin Min Dijsselbloem said to be opposed to relaxing new mortgage rules - US financial press; Said may change discussion on EU budget limit of 3%; not in Dutch government's interest to be the first to start talks on budget limit.
- (US) Treasury Sec Geithner confirms will conduct additional measures to avoid reaching the debt ceiling limit, as has been customary in prior debt ceiling impasses; Technically will hit debt limit on Dec 31, but will take extraordinary measures to avoid hitting the limit as it has in the past; Measures will create $200B in headroom.
- (US) Moody's: highly likely that US will eventually act to raise the debt limit; direction of US bond ratings most likely to be determined by the outcome of budget negotiations; if there is no clear path on the fiscal outlook and debt trajectory in 2013, the US sovereign rating will be downgraded.
- (US) China rating agency Dagong Global place US sovereign rating on Negative watch citing lack of political consensus on how to tackle debt problem over the long term .
- (US) Republican aide: Republican House caucus expected to hold conf call Thursday to discuss fiscal cliff - financial press .
- (US) Senate Majority Leader Reid's (D-NV) reiterates call for the House to act on the Senate bill extending middle class tax cuts in order to avoid fiscal cliff effects. The Senate bill is the only one that can become law.
- (US) House Speaker Boehner's office: The Senate should act on House passed budget bills; Senate must act first on House proposals, then House will consider Senate bill revisions.
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