ECONOMIC DATA

- (JP) Japanese Gov't keeps its economic outlook unchanged; Economy in “Severe” state

- (CZ) Czech Feb PPI M/M: 0.3% V 0.2%E; Y/Y: -0.6% v -0.8%e

- (CZ) Czech Jan Exports Price Index: 3.3% v 1.2% prior; Import Price Index: 0.0% v -2.2% prior

- (TU) Turkey Feb Consumer Confidence: 74.0 v 71.6 prior

- (TU) Turkey Dec Unemployment Rate: 13.6% v 12.3% prior

- (SW) Sweden Feb Average House Prices (SEK): 1.73M v 1.92M prior

- (IT) Italy Feb Final CPI (NIC Incl Tobacco): M/M: 0.2% v 0.2%e; Y/Y: 1.6% v 1.6%e

- (IT) Italy Feb Final CPI (EU Harmonized): M/M: 0.2% v 0.2%e; Y/Y: 1.5% v 1.5%e

- (NO) Norway Feb Trade Balance: NOK29.5B v NOK29.4B prior

- (EU) Euro-Zone Feb CPI M/M: 0.4% v 0.4%e; Y/Y: 1.2% v 1.2%e; Core CPI Y/Y: 1.7% v 1.6%e

- (EU) Euro-Zone Q4 Employment Q/Q: -0.3% v -0.1% prior; Y/Y: 0.0% v 0.8% prior


SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM

- In equities, Barclays [BARC.UK] said business has continued to perform well in 2009 and noted it was maintaining a dialogue with the UK Treasury and the FSA regarding participation in the Asset Protection Scheme. The bank said it has held talks over selling iShares, although no decision has been made. || Roche [ROG.SZ] acquired Innovatis AG for €15M. The company said Innovatis would complement its product portfolio in the rapidly growing area of cellular analytics. || SKion has purchased an 8% stake in SGL [SGL.GE] and said it plans to expand the stake, although it would keep it below 25%. || The Swiss press reported that UBS [UBSN.SZ] would cut 5,000 management positions (about 6.4% of the workforce) over the next few weeks. || India's Business Standard reported that the Indian income tax agency has expanded its tax liability probe related to Vodafone's [VOD.UK] Vodafone-Essar unit. The article stated the investigation is targeting offshore transactions associated with Vodafone's buyout of Hutchison Whampoa's 67% stake in an $11.1B deal in 2007. || The Sunday Telegraph reported that Brit Insurance [BRE.UK] has cancelled a planned £150M rights offering. The report cites a lack of demand among investors for the decision. || Rio Tinto [RIO.UK] shareholders are seeking a 75% approval rate requirement for the proposed deal with Aluminum Corp of China, according to an FT report citign the Association of British Insurers. Activist shareholders want the Chinalco deal classified as a 'special resolution' deal that would require a higher level of shareholder approval. || The chief of Germany's SoFFin agency said the agency intends to nationalize Hypo Real Estate [HRX.GE], rejecting the conditions layed out by J.C. Flowers and warning that Hypo's collapse could be worse than the collapse of Lehman. SoFFin met with representatives from Flowers on Sunday and plans to meet again today. It is expected that the lower house of the German Parliament will discuss a new nationalization law. The bill is expected to pass by Friday. Note that JC FLowers holds a 24% stake in Hypo and has proposed that Germany acquire 633M shares (a 75% stake) at €3.00/shr in an effort to recapitalize the company. || Linde [LIN.GE] reported an FY08 net of €776M, below the expected €783.3M, and an operating profit of €2.56B, ahead of the €1.56B expected. Revenues were in line with estimates at €12.7B. Linde put its engineering backlog at €3.06B, +4.3% y/y, and stated that it will not reach 2010 targets for an operating profit of €3.0B and ROE of 13%.

- In speakers, Russia proposed that the IMF study the possibility of launching a supra-national reserve currency and building stronger global regulatory institutions, citing the need for a global risk-management system. It would like to see G20 meeting change the 'obsolescent' economic order. || Polish Central Banker Noga commented that Poland's monetary policy remained in easing phase but that did not imply an interest rate cut this month's meeting. He noted that the zloty was fundamentally stronger than 4.50 against the euro. || The EU's Barroso said confidence must be restored in order to stimulate economic recovery. || UK PM Brown reiterated the importance of avoiding protectionism and stated that G20 needs to help emerging economies. Brown did note that a large contraction in global trade has occurred.

- In currency trading, markets have been focused on the broadly higher equity markets, despite this weekend's G20 finance ministers meeting offering little in the way of concrete measures. Sterling was firmer in the session and dealers noted that GBP was helped by comments from Barclays, which said it made a strong start to 2009 and confirmed it is looking to sell its £5B iShares unit.

- Fixed income, the BoE announced it would seek offers for six eligible Gilts in a 10-25 year basket in the second phase of its quantitative easing scheme. The list of six eligible stocks range from the 4.75% 2020 out to the 4.25% 2032 which contrasts with last weeks operation which targeted stocks ranging from 2014 to 2018.

- In energy, OPEC left their existing production targets unchanged at its monthly meeting this weekend. OPEC's next meeting comes in May. OPEC Sec Gen El-Badri commented that 93% compliance with OPEC quotas would be a success. Delaying oil and gas projects may rise beyond current 35 level. || Saudi Oil Min Naimi commented that he was pleased with the outcome of the summit. He noted that current resources are estimated to last around 80 years and that the days of oil as main fuel source are "far from over." He reiterated that the current economic situation inhibited energy investments. || Statoil [STL.NO] announced a gas discovery in the Norwegian Sea at its Wildcat Well 6705/10-1. Four other discoveries made at south, east of well with the size of discovery estimated at 16B Cubic Meters.


NOTES

- The weekend G20 Finance Minister reiterated the view that National governments should take appropriate actions and noted that fiscal steps to be implemented quickly.

- Bernanke offers hope saying recession could end in 2009. Fed Chairman noted that the unemployment outlook remained severe but declined to comment on whether he saw the jobless rate climbing into double digits.

- Nonetheless equity markets were firmer. Geithner bank bailout plan this week ???

- Opec left its quotas unchanged and sought greater compliance with the prior 4.2M bpd cuts. Its next planned meeting in May.

- Looking Ahead:

- 8:30 (CL) Chile Feb Copper Exports: No estimates versus $1.49B prior

- 8:30 (CA) Canada Q4 Capacity Utilization rate: 75.0% expected versus 77.4% prior

- 8:30 (US) Mar Empire manufacturing: -30.80 expected versus -34.65 prior

- 9:00 (US) Jan Net Long-term TIC Flows: $45.0B expected versus $34.8B prior; Total Net TIC Flows: No estimate versus $74.0B prior

- 9:15 (US) Feb Industrial Production: -1.35 expected versus -1.8% prior; Capacity Utilization: 71.0% expected versus 72.0% prior

- 10:00 (BE) Belgium Dec Trade Balance: No estimate versus -€1.45B prior

- 13:00 (US) Mar NABH Housing market index: 9 expected versus 9 prior