HERE'S OVERNIGHT DATA AND EVENTS: (market expectations, last...

HERE'S OVERNIGHT DATA AND EVENTS: (market expectations, last observation)

US > Adjusted Retail & Food Services Sales (Nov) increased more than forecast to 1.3% (0.6%, 1.1%) in November after sales on Black Friday and the weekend after Thanksgiving advanced 0.5%, as discounts on electronics and toys drew demand suggesting an economic recovery.

US > Adjusted Retail Sales Ex-Autos (Nov): 1.2% (0.4%, 0.0%)

US > Adjusted Retail Sales Ex-Autos and Gas Stations m/m (Nov): 0.6% (0.2%, 0.1%)

US > Manufacturing & Trade Inventories Total m/m SA (Oct) unexpectedly increased to 0.2% (-0.2%, -0.5%) for the first time in a year in October, as orders and production grew following a rebound in sales. Sales climbed 1.1%.
US > University of Michigan Confidence Index (Dec P): 73.4 (68.8, 67.4)

US > Import Price Index m/m NSA (Nov) rose to 1.7% (1.2%, 0.8%) in November due to increase in fuel prices, including crude oil and natural gas. Companies are facing concerns in passing costs to customers due to mounting unemployment, which is reducing demand.

US > Import Price Index y/y NSA (Nov): 3.7% (2.9%, -5.6%)

UK PPI > Manufactured Products m/m NSA (Nov): 0.2% (0.3%, 0.4%)

UK PPI > Manufactured Products y/y NSA (Nov) rose 2.9% (2.9%, 1.9%) from the year earlier as raw-material costs increased, suggesting that inflation pressures are increasing as the recession eases. All 10 categories of producer prices increased from a year earlier, led by petroleum products, and tobacco and alcohol.

UK PPI > Output Prices Ex Food Beverages Tobacco & Petroleum m/m NSA (Nov): -0.1% (0.2%, 0.5%)

UK PPI > Output Prices Ex Food Beverages Tobacco & Petroleum y/y NSA (Nov): 2.0% (2.1%, 2.2%)

UK PPI > Input Prices Materials & Fuels Purchased Manufacturing m/m NSA (Nov): 0.1% (0.5%, 2.9%)

UK PPI > Input Prices Materials & Fuels Purchased Manufacturing y/y NSA (Nov): 4.0% (4.0%, 0.4%)

US Treasury Secretary Timothy Geithner > on the passage of legislation by the House of Representatives for derivatives: “House passage of this bill moves us an important step closer to meeting the president’s objectives for reform…The Obama administration looks forward to continuing its close work with Congress to strengthen key provisions.”

ECB Vice President Lucas Papademos > on the bond market: “The ECB will be taking some initiatives to help catalyse the re-launching of securitisation on a sound basis in the context of its collateral framework policy related to the implementation of monetary policy…Steps can be taken to re-launch securitisation, but to re-launch it on a sound basis so as to facilitate the provision of credit to the economy and the better distribution of risk among market participants.”

ECB President Jean-Claude Trichet > on communication between regulators and risk board: “The organisation will require continuous market intelligence to detect when and where recommendations are necessary…The industry itself should be closely consulted as information from market participants is essential for the functioning of a macro-prudential regulator.”

Moody’s Investor Services > “Only the UK and US are classified as ‘resilient’, rather than ‘resistant’. Their resiliency will be tested in the next couple of years, but for now they have a high degree of financeability and debt affordability. The rise in debt and higher interest costs could test the ratings under some scenarios, but not right away.”

Happy trading tomorrow!