LTRO flow | FT Alphaville


From the ECB on Friday:

As announced by the Governing Council on 8 December 2011, counterparties have the option to repay, after one year, any part of the amounts that they were allotted in the longer-term refinancing operations settled on 21 December 2011 and 1 March 2012, on any main refinancing operation settlement day. Accordingly, on 30 January 2013 EUR 137159.10 million will be repaid in the tender 20110149 by 278 counterparties.

That’s around 30 per cent of the first three-year LTRO being sent back to the European Central Bank by 278 banks. The second three-year LTRO will become repayable from the 27th of February, with its initial announcement coming on the 22nd.

The €137bn or so being repaid this time is higher than the market expected, but not shockingly so.

LTRO flow | FT Alphaville

Yen undermined by record export gap –


The yen fell against other major currencies after the deputy economy minister in Japan, Yasutoshi Nishimura, said that a value of Y100 against the dollar would not be a problem for the country’s economy. 

The comments came as Japan recorded its largest ever trade deficit in 2012, with a rise in the cost of imports and a drop in the value of exports due in part to the strong yen.

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Yen undermined by record export gap –

The 6am Cut London | FT Alphaville


Japan’s 2012 trade deficit was its biggest ever: The deficit reached Y6.9tn ($77bn) as the cost of importing fuel rose following the Fukushima disaster, a strong yen, and frictions with China weighed on exports, bringing them 5.8% lower than the previous year, compared to expectations of a 4.2% decline. Prior to 2011, Japan had not recorded trade deficits since the 1980s. (Financial Times)(Reuters)

The 6am Cut London | FT Alphaville

The 6am Cut London | FT Alphaville


Asian shares declined and the yen strengthened on Thursday. The MSCI Asia Pacific was poised to fall for a second day after touching a 17-month high earlier this week. The Nikkei Stock Average headed for its biggest two-day drop since November 2011 after the yen reversed its losses. (Bloomberg)


UK developers warn of FSA ‘slotting’ rules: “Property companies and bankers to the sector have warned that the rules, which will force banks to hold substantially more capital against loans secured on offices and shops, risk derailing the prospects of recovery in commercial real estate values.” Developments outside London are seen as most at risk. (Financial Times)

The 6am Cut London | FT Alphaville

The 6am Cut London | FT Alphaville


The World Bank has cut its global growth outlook for 2013 from 3% to 2.4%, compared to 2.3% growth in 2012. “A frustratingly slow economic recovery in developed nations is holding back the global economy, the World Bank said” (Reuters)

Spain calls for Germany to stimulate: Mariano Rajoy has called on Germany and other creditor countries in the eurozone to do more to stimulate growth, arguing that a switch to a more expansionary policy would boost economic recovery across the single currency area. “What is clear is that you cannot ask Spain to adopt expansionary policies at this time. But those countries that can, should,” he told the FT. (Financial Times)

The 6am Cut London | FT Alphaville

FT Alphaville: The 6am Cut London

The 6am Cut London, FT Alphaville – Kate Mackenzie


“Asian shares dropped for the first time in three days as the re-election of US President Barack Obama shifted investor attention to the looming budget showdown in Washington.”
Greek parliament passes austerity package
Japan’s machinery orders fell more than expected in September and the trade surplus narrowed.
China’s October data talked up
US home prices rose in Q3
Lenovo Group reported a net profit of $162m
EU hits back at IMF over austerity:


Asian markets
US markets
European markets
Commodities ($)
CDS (closing levels)

Sources: FT, Bloomberg, Markit