- Mario Draghi interview with Der Spiegel
- French FinMin Moscovici: Immediate cut in labor cost isn’t possible. Deficit-cutting more important than labor costs
- ECB’s Nowotny: ECB mustn’t take part in Greek debt cut. ECB taking part in cut would be state funding and would be against the law
- Germany govt spokesman Seibert: Can’t say when Greece/troika report will be completed. Germany’s saying another debt haircut for Greece would contravene German budget laws and would make further aid impossible
- Spanish September retail sales -10.9% y/y, demonstrably weaker than Reuter’s median forecast of -6.2%
- Bank of Spain to announce bad bank details at 5.00 pm local time
- UK September mortgage approvals 50,024 from 47,921 in August, better than median forecast of 48,000
- The RBA – leaning against the wind - FT Alphaville
- Germany rattled as taxpayer losses loom in Greece - AEP at The Telegraph
- Troika refuses to make concessions on labor reforms, says FinMin - ekathimerini
European stocks have had a bad morning, eurostoxx off -0.8%. Worst performing market was Italy’s FTSE MIB which is off a hefty -1.5% against the backdrop of political uncertainty (Berlusconi threatening to end support for Monti’s govt.) Eurozone periphery govt bond yields meanwhile have ticked higher.
EUR/USD down at 1.2900 from early 1.2925. Early sell-off accelerated on the release of truly horrible Spanish retail sales data (see above) and we got to session low 1.2887 before recovery. Talk of sell stops now gathered through 1.2875.
USD/JPY very little changed at 79.60 having so far garnered technical support from the 79.51 200 dma. Talk of sell stops gathered through 79.45.
Cable marginally easier, down at 1.6058 from early 1.6080, underminned by general risk-off backdrop.
