July 22nd, 2010 07:05:53 GMT

Germany Bank Assn: 2Q GDP Strong, Growth Momentum Then To Slow


BERLIN (MNI) – The German Bank Association (BDB) expects strong
German GDP growth in the second quarter before momentum starts to slow.

In its latest monthly report released Thursday, the association
said quarterly GDP growth of above 1% was possible in the second
quarter. For the third and fourth quarter the association projects only
growth rates of 0.5% each. For 2010 as a whole, it sees GDP growth at
2.0% and slowing to 1.5% next year.

“Sentiment indicators for the global economy and for Germany
signals a slowing of growth momentum in the coming months,” the BDB
said. “The exceptionally high growth momentum from the second quarter
won’t be upheld in Germany.”

The phasing out of worldwide economic stimulus measures and the end
of the inventory cycle will weigh on growth, it reasoned. Moreover, the
European debt crisis will be a drag on the recovery in Germany and the
Eurozone, it added.

However, “fears that the global economy will fall back into
recession are exaggerated from today’s viewpoint,” the BDB assserted.
Leading indicators are signalling a continuation of global growth, yet
at a more moderate speed, it argued.

Moreover, monetary policy in the Eurozone and the US will remain
expansive for a longer period, thereby also supporting growth, the BDB

–Berlin bureau: +49-30-22620580; email: twidder@marketnews.com

[TOPICS: MT$$$$,M$X$$$,M$G$$$,M$$CR$,MGX$$$]

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July 22nd, 2010 06:44:26 GMT

EUR/JPY gives further ground


EUR/JPY down at 110.20 from early 110.55 with major Swiss bank seen notable seller in this latest dip. Would suspect stops parked not far below psychological 110.00 line.

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July 22nd, 2010 06:13:57 GMT

USD/JPY slips slightly in early European trade


USD/JPY sits at 86.40, down slightly in early European trade.  As some had suspected Fed’s Bernanke did the pairing no favours yesterday, with his downbeat assessment of the US economy driving funds into the safe haven yen.

Talk buy orders 86.30/40 before stops through 86.25.  Talk of 86.00 barrier option interest with bids seen around said level, including Japanese importer, sovereign interest.  More stops said to lie just beneath 86.00.

On topside sell orders noted 87.00/10.  Not sure where stops clustered on topside. Probably not that close. Possibly up around 87.60/70.


July 22nd, 2010 05:35:06 GMT

Japan June Supermarket Sales -1.4% Y/Y, Down 19 Months In Row


TOKYO (MNI) – Sales at supermarkets in Japan open for at least a
year fell 1.4% in June from a year earlier to Y1.01 trillion as
consumers remained frugal amid continued severe labor and income
conditions, an industry group said on Thursday.

It was the 19th consecutive year-on-year drop in supermarket sales
following -5.3% in May. The last y/y rise in sales was +0.6% marked in
November 2008.

But the year-on-year drop narrowed as sales of clothing posted the
first y/y rise in 54 months in the wake of heat waves, Japan Chain
Stores Association said.

The figures are based on the combined sales at 62 supermarket
chains which together operate 7,859 outlets. The numbers have been
adjusted to facilitate comparison on a same-store basis.

Including sales at stores newly opened during the past year,
revenue fell 3.5% from a year earlier in June, down for the 31th
consecutive month after falling 6.2% the previous month. The last time
sales under this category rose was in November 2007 (+0.5% y/y).

** Market News International Tokyo Newsroom: 81-3-5403-4833 **

[TOPICS: M$J$$$,M$A$$$,MAJDS$]

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July 22nd, 2010 05:25:09 GMT

Japan Average Regular Gasoline Price Drops For 8th Wk In Row


TOKYO (MNI) – The average price of regular gasoline in Japan this
week fell to Y135.0 ($1.56) per liter, or $5.93 per gallon, from Y135.6
last week, the eighth consecutive weekly drop, according to data
released by the Oil Information Center on Thursday.

The price was still higher than the Y125.3 per liter price of a
year earlier and the highest since Y136.6 marked on Nov. 10, 2008.

Retail gasoline prices were on a general uptrend from mid-January
2009 until May 31, when they began to ease.

This week the average price of high-octane gasoline stood at Y145.8
per liter, down from Y146.4 last week. It hit a record high of Y196.0 on
Aug. 4, 2008.

The average price for diesel oil stood at Y114.7 per liter this
week, down from Y115.1 last week. It compared with the record high of
Y167.4 hit on Aug. 4, 2008.

The average over-the-counter price of kerosene for heating stood at
Y1,415 per 18 liters, down from Y1,418 last week. It posted a record
high of Y2,378 on Aug. 11, 2008.

The average home-delivery kerosene price this week was at Y1,531
per 18 liters, down from Y1,535. It hit a record high of Y2,484 on Aug.
11, 2008.

** Market News International Tokyo Newsroom: 81-3-5403-4833**

[TOPICS: M$J$$$,M$A$$$,MAJDS$]

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July 22nd, 2010 05:14:09 GMT

EUR/USD consolidates recent losses in Asian trade


EUR/USD has eeked out some very marginal gains during Asian trade, effectively consolidating recent losses.  We’re up at 1.2775 from a North American close Wednesday down around 1.2760.

Fed Chairman Bernanke’s somewhat downbeat outlook for the U.S economy, labelling it “unusually uncertain”, did the euro no favours as risk aversion cranked up.

On a more positive note for the single currency. EU trade Commissioner De Gucht speaking in Shanghai has noted that China has been a visible buyer of euro zone bonds, especially those of Greece and Spain.  He opined, not surprisingly, that these are good investments and will keep their value. Well ofcourse.

Fair amount of euro zone data scheduled for today:

06:45 GMT: French business confidence for July expected down at 94 from 95; French own company production outlook expected unchanged at -7; French production outlook indicator expected -6 from -4; French consumer confidence indicator expected -40 from -39

07:30 GMT: German manufacturing PMI for July expected 58.0 from 58.4; services PMI expected 54.5 from 54.8

07:50 GMT: French manufacturing PMI for July expected 54.1 from 54.8; services PMI expected 60.0 from 60.8

08:00 GMT: Euro zone manufacturing PMI for July expected 55.1 from 55.6; services PMI 55.0 from 55.5;  composite 55.5 from 56.0

09;00 GMT: Euro zone industrial new orders for May expected -0.1% m/m, +20.0% y/y

European stockmarkets not surprisingly set to open lower this morning.  DAX around -0.7%, cac 40 around -1.2% and FTSE around -0.8%


1 12,297 12,298 12,299 12,300 12,301 12,302 12,303 12,304 12,305 12,306 12,307 15,570

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