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European Economics Preview: German, U.K. GDP Data Due

Revised quarterly national accounts data from Germany and the U.K. are expected to dominate the economics scene on Friday. Elsewhere, Italy is set to enter the debt market today with a bond auction.
At 2.00 am ET, the Federal Statistical Office is scheduled to release German final GDP figures for the fourth quarter. The prior estimate showed a 0.2 percent quarterly contraction in the fourth quarter GDP.
French consumer confidence survey results are due at 2.45 am ET. The consumer sentiment is seen rising to 82 in February from 81 a month ago.
The Czech statistical office is set to publish consumer and business confidence survey data at 3.00 am ET. In the meantime, Spain's producer prices and Hungary's retail sales are due. Spain's producer price inflation is seen at 4.3 percent in January, down from 5.2 percent in December.
At 4.00 am ET, Italy's retail sales for December are due. On a monthly basis, sales are forecast to drop 0.5 percent month-on-month after falling 0.3 percent in November.
Half an hour later, second estimates of U.K. GDP is due from the Office for National Statistics. According to the previous estimate, the economy contracted 0.2 percent sequentially in the fourth quarter.
Italy is slated to raise a maximum of EUR 3 billion from the auction of Zero Coupon Bonds maturing on January 2014. The government also plans to issue inflation indexed bonds, with a maximum target of EUR 1.5 billion.


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European Economics Preview: Eurozone M3 Data Due

Producer prices from France and private sector credit from Eurozone are the major statistical reports due at the start of the week, headlining a light day for the European economic news.
The meeting of G20 finance ministers and central bank governors held over the week end in Mexico demanded Europe to strengthen its bailout fund before leading economies provide extra support to raise the resources of the International Monetary Fund.
At 2.45 am ET, the French statistical office Insee is scheduled to issue producer price figures for January. Annually, producer prices are forecast to rise 4.1 percent after increasing 4.7 percent in December.
The European Central Bank is scheduled to issue euro area M3 money supply for January at 4.00 am ET. Annual growth in M3 is forecast to rise to 1.8 percent from 1.6 percent in December.
In the meantime, Italy's business confidence is due. Business sentiment is forecast to fall to 92 in February from 92.1 a month ago.
Germany's Bubill auction is due at 5.00 am ET. The government target to raise EUR 3 billion from the issue of securities maturing on February 2013.
In the meantime, Italy aims to raise a maximum of EUR 8.75 billion from 6-month treasury bill auction and EUR 3.5 billion from flexible T-bills.


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Japan Retail Sales Rise Unexpectedly On Vehicle Demand

Retail sales in Japan increased unexpectedly in January due to a surge in motor vehicle sales, data from the Ministry of Economy, Trade and Industry showed Tuesday.
Sales rose 1.9 percent year-on-year in January, against economists' expectations for a 0.1 percent decline. This was the second consecutive increase after a 2.5 percent rise in December.
Sales of motor vehicles climbed 24.3 percent from January last year. This followed a 14.9 percent increase in December. Clothing sales increased 1.4 percent annually, while sales of food articles rose 0.6 percent.
Meanwhile, sales of machinery and equipment, general merchandise as well as fuel declined during the month.
Large retail store sales were down by an annual 1 percent. This was, however, better than the forecast for a fall of 1.1 percent after an upwardly revised 0.3 percent decline in December.
The data also showed that wholesale sales were down 3.6 percent on year and commercial sales lost an annual 2.1 percent.
Following the upbeat retail sales data, yen advanced against other major currencies in early Asian deals today.
Earlier this month, the central bank increased the size of its asset purchase by JPY 10 trillion to JPY 30 trillion, after the economy contracted more than expected by 0.6 percent in the fourth quarter.


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Japan Housing Starts Decline Again

Japan's housing starts decreased for the fifth consecutive month in January, but at a slower-than-expected pace, data from the Ministry of Land, Infrastructure, Transport and Tourism showed Wednesday.
Housing starts fell 1.1 percent year-on-year in January. However, the rate of decline was weaker than the 3.3 percent drop expected by economists and 7.3 percent fall recorded in December.
The seasonally adjusted annualized housing starts totaled 822,000 in January compared to 783,000 a month ago. Economists expected an increase to 808,000.
Construction orders received by 50 big constructors in Japan surged 24.6 percent from last year after slowing to a growth rate of 1.5 percent in December.


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European Economics Preview: Eurozone Flash Inflation, Unemployment Data Due

Flash inflation, unemployment and results of the Purchasing Managers' survey from Eurozone are due on Thursday, headlining a hectic day for the European economic news.
At 1.30 am ET, the French statistical office Insee is scheduled to issue ILO jobless rate for the fourth quarter. The jobless rate is forecast to rise to 9.6 percent from 9.3 percent in the prior quarter.
Swiss GDP figures are due from the Federal Statistical Office at 1.45 am ET. Economists expect the economy to shrink 0.1 percent sequentially in the fourth quarter.
At 2.00 am ET, Ireland's manufacturing PMI for February is due.
Hungary's Central Statistical Office is slated to release producer price data at 3.00 am ET. Producer price annual inflation is seen rising to 8.2 percent in January from 7.5 percent in December. In the meantime, manufacturing PMI figures from Poland, Turkey and Norway are due.
At 3.45 am ET, Markit Economics is set to publish Italy's manufacturing PMI. The index is forecast to rise to 47.1 in February from 46.8 a month ago. Final French and German manufacturing PMI figures are due at 3.50 and 3.55 am ET, respectively.
The Eurozone manufacturing PMI, due at 4.00 am ET, is expected to match the flash estimate of 49 in February.
Half an hour later, U.K. Markit/CIPS manufacturing PMI is due. The index is seen easing to 52 from 52.1 in January. In the meantime, auction results from Spain and France are due. The Spanish government plans to obtain funds in the range of EUR 3.5 billion and EUR 4.5 billion. The treasury will issue bonds maturing in 2014, 2015 and 2016.
The French debt management agency AFT aims to raise a maximum EUR 8 billion from the issue of long-term bonds.
Eurostat is set to release Eurozone flash inflation and unemployment data at 5.00 am ET. Inflation is seen at 2.6 percent in February, the same rate as in January. The jobless rate is forecast to remain unchanged at 10.4 percent in January.


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Eurozone Leaders To Decide On Firewall By End-March: Van Rompuy

Eurozone leaders will likely decide on the adequacy of the European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM) by the end of March, European Council President Herman Van Rompuy said Thursday.
Following the fist session of the European Council, he said "Eurozone leaders will reassess the adequacy of the overall ceiling of the EFSF/ ESM firewall by the end of the month." They have also agreed to accelerate the payments of the pending capital for the ESM, he added.
EU heads of state or government on Thursday re-elected Van Rompuy as President of the European Council for a second term of two and a half years. His term will run till November 30, 2014 from June 1, 2012.
He was also designated as president of the Euro Summit for the same term of office.
Van Rompuy lauded the decisive legislative actions taken by Greek authorities over the past ten days. "Eurozone leaders support the efforts undertaken by Greece to strengthen the country's institutional capacity," he said.


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European Economics Preview: Eurozone Retail Sales Data Due

Retail sales and results of the Purchasing Managers' survey from Eurozone are due on Monday, headlining a light day for the European economic news.
At 3.00 am ET, Turkey's consumer and producer prices are due. Annual inflation is forecast to slow to 10.48 percent in February from 10.61 percent in January.
At 3.15 am ET, the Federal Statistical Office is set to publish Swiss retail sales figures for January. Sales were up 0.6 percent year-on-year in December.
Markit Economics is slated to release Italy's services PMI at 3.45 am ET. Thereafter, final French and German PMI figures are due at 3.50 and 3.55 am ET.
At 4.00 am ET, Eurozone final PMI data is due. The composite PMI is expected to match the flash reading of 49.7 in February.
Italy's statistical office Istat is scheduled to issue producer price data at 4.00 am ET. Economists forecast producer price inflation to ease to 3.4 percent in January from 4 percent in December.
Half an hour later, Eurozone sentix investor confidence is due. The index is seen improving to -5 in March from -11.1 a month ago. In the meantime, U.K.'s services PMI is due. The services PMI is expected to dip to 54.9 in February from 56 in January.
Eurostat is scheduled to issue January retail sales data at 5.00 am ET. Eurozone retail sales are forecast to drop 0.1 percent month-on-month after easing 0.3 percent in December.


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RBA Keeps Cash Rate Unchanged At 4.25%

The Reserve Bank of Australia on Tuesday decided to keep its benchmark cash rate unchanged at 4.25 percent for a second consecutive time, as economic growth is expected to be close to trend and inflation close to target. The decision was in line with economists' expectations.
In a statement today, RBA Governor Glenn Stevens said the Board judged that the current setting of monetary policy was appropriate for the moment.
"Should demand conditions weaken materially, the inflation outlook would provide scope for easier monetary policy," he said. Most information on the Australian economy continues to suggest growth close to trend overall, with differences between sectors and considerable structural change, the policymaker noted.
Stevens said interest rates for borrowers have generally risen slightly since the Board's previous meeting, but remain close to their medium-term average. Despite a fall in the terms of trade, the exchange rate has risen over recent months, the policymaker noted.
He said that consumer price inflation has declined as expected and will fall further over the next quarter or two. Over the coming one to two years, and abstracting from the effects of the carbon price, the bank expects inflation to be in the 2-3 percent range.
Regarding economic developments in Europe, Stevens said the acute financial pressures on banks in Europe have been alleviated considerably by the actions of policymakers, though there is more to do to put European banks and sovereigns onto a sound footing for the longer term and Europe will remain a potential source of shocks for some time yet.
RBA said growth in China, Australia's major trading partner, has moderated as was intended. However, most indicators remained quite robust overall. Earlier last month, the central bank trimmed the economy's growth forecast to 3.5 percent for the year ending June 2012 from the previous forecast of 4 percent. Downgrading the outlook, the RBA said it reflects the weaker outlook for global economic growth, with the uncertainty about the European situation expected to weigh on household and business spending decisions.
The Australian Bureau of Statistics is slated to publish the preliminary gross domestic product figures for the December quarter on Wednesday. The economy is forecast to expand 0.7 percent quarter-on-quarter, slower than the 1 percent growth in the preceding three-month period.


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Japan Forex Reserves Decline In February

Japanese foreign exchange reserves declined in February after hitting a record-high in January, data from the Finance Ministry revealed Wednesday.
Japan's official reserve assets fell to $1.303 trillion at the end of February from a record high of $1.307 trillion in January.
The Ministry has said that it did not conduct market intervention between November 29 and February 27 after spending JPY 9.09 trillion between October 28 and November 28.
At the end of February, the country's foreign currency reserves stood at $1.22 trillion. The International Monetary Fund reserve position was at $16.8 billion, while Spacial Drawing Rights amounted to $20 billion.
Gold reserves rose to $43.54 billion at the end of the month from $42.9 billion at the end of January.


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Greece Announces Successful Completion Of Debt Swap Deal

Greece successfully completed the debt swap agreement with 85.8 percent of its private bond holders voluntarily signing up to take part in the deal, clearing the way for the troubled euro member to secure international funds to avert a disorderly default.
In a statement on Friday, the Finance Ministry said of the EUR 177 billion of bonds issued, which are governed by Greek law, the Republic has received tenders for exchange and consents for holders of approximately EUR 152 billion face amount of bonds. Holders of EUR 172 billion worth of bonds in total have consented to bond offer.
The Ministry also said that EUR 20 billion or 69 percent of foreign-law bonds were also tendered. Greece has extended the tender on foreign-law bonds to March 23. The government has made it clear that it will not extend the invitation period for its bonds governed by Greek law.
Though the participation rate exceeded the 75 percent threshold set by the government to get in with the deal and receive the EUR 130 billion worth bailout money from the international creditors, the level was below the 90 percent, needed to avoid triggering the "collective action clauses" or CACs.
The CACs will force reluctant bondholders to join in and the government said the participation rate will rise to 95.7 percent after activating the CACs.
The International Swaps and Derivatives Association, or ISDA said today that a question relating to a "potential credit event" with respect to the Greece has been submitted to, and subsequently accepted for consideration by the EMEA Determinations Committee.
The ISDA EMEA Determinations committee will meet today at 1 pm GMT to assess if a "credit event" has occurred, which would trigger a payout on credit default swaps. ISDA has said earlier this month that Greece's debt swap deal so far does not constitute a "credit event" or default. The successful completion of the debt swap deal was the pre-condition set by the European Union and the International Monetary fund for handing over the bailout approved last month. The money is vital for Greece to avoid a default on its debt on March 20, when it has to repay EUR 14.5 billion.
Under the debt swap deal, private holders will take a 53.5 percent nominal loss on their total EUR 206 billion Greek debt by exchanging their existing bonds with new ones, having longer maturities and lower face value.
The euro member aims to reduce its total indebtedness to 120.5 percent of GDP by 2020 from the current level of 160 percent.
The Institute of International Finance, or IIF, welcomed the results of the swap offer. IIF negotiated the deal with the Greek government on behalf of the private creditors.
Greece will continue implementing the measures needed to achieve the fiscal adjustments and structural reforms to which it has committed and that will return Greece to a path of sustainable growth, Finance Minister Evangelos Venizelos said.




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