• *** ECONOMIC DATA ***
  • SP Oct Producer Prices: M/M 0.9% v 0.4%e || Y/Y 5.7% v 4.2%e
  • Spanish producer prices exceeded expectations bolstered by a sharp rise in energy prices. The energy component rose from 0.5% m/m in September to 2.4% in October, and rose from 0.8% y/y to 6.1% for the same periods respectively. Almost all components posted a gain, however there was a slight decline in the m/m capital goods reading, and a slight decline in the y/y intermediate goods reading.
  • SW Oct Trade Balance [sek]: 11.4B v 7.5Be
  • *** SPEAKERS/COMMENTS ***
  • BOE Bean: It will be quite a long time before financial markets return to normal - Newspaper Interview
  • BOE Bean: Markets have been largely unaffected thus far; Some chances of an impact exist
  • BOE Bean: Expects a lot of volatility going forward
  • BOE Bean: It is quite likely that there will be more re-evaluation on losses not just in the UK
  • BOE Bean: Domestic inflation may keep policy tighter
  • FR Sarkozy: Reiterates that China needs to accelerate the Yuan’s rise against the Euro
  • SNB Kohli: Economy remains in good shape; Recent Franc appreciation goes in the right direction
  • SNB Kohli: Weak USD offsets higher energy prices
  • SNB Kohli: Widening spreads are a worry
  • SNB Kohli: The SNB did not expect this extent of the sub-prime contagion
  • ECB Tumpel-Gugerell: Expects Euro-Zone GDP growth at about 2.0% in 2008
  • ECB Tumpel-Gugerell:We expect higher inflation in the Euro-Zone at the turn of the year
  • ECB Tumpel-Gugerell: Must avoid second round inflation effects
  • UK Brown: There will be no irresponsible relaxation of pay discipline
  • *** FIXED INCOME/FX/COMMODITIES/ERRATUM ***
  • European fixed income futures are currently trading lower in the session on the back of higher equity markets and continued profit taking, which commenced during Friday’s session.
  • On the commodity front, crude oil futures continue to flirt with the $100 level, but have not yet been able to break the golden level due to a lack of market moving news. On the commodity front Brazil’s CRVD noted that even rising investment will not allow output to keep up with Chinese demand.
  • On the forex front the overall tone for the session has been one of consolidation with some Yen weakness as global equity markets are trading higher.