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• China: A My Little Pony – led recovery?
• BOJ’s Shirakawa on that inflation target and more
• Currency war accusations against Japan … Aso responds: “Talk to the hand”
• Tokyo’s optimistic GDP forecast
• Euro vulnerable to profit taking; Moves look too extreme to sustain s/t – BNP Paribas
• Is that Putin sitting in on Geithner’s final staff meeting?
• Not alot of people know this…..
• Even better
• ForexLive US Wrap: EUR/JPY consolidates explosive rally after LTRO repays
• I like Iggy…..
• ECB’s Coene: LTRO paybacks may lower euro zone spreads further
• OECD’s Gurria: UK woll find it is in its own interest to stay in the EU
• Cyprus has long-term rating cut by Fitch
• Large LTRO payback to lower excess liquidity
• US Treasury’s Brainard: Rules of the game to govern foreign exchange
• Spanish FinMin: Spain fully on track to grow again
• BBVA says repaid a chunck of its LTRO loans
• No, you’re joking? Gerry Davies got yet another fx poll right……
• Canada’s Flaherty: Expects pressure on CAD to be upward over time
• SNB’s Jordan says expects Swiss franc to contiinue to weaken over time

China: A My Little Pony – led recovery? Posted: 25 Jan 2013 09:55 PM PST Or whatever the cool toy is now: The 50 million “little emperors and empresses”, the children of mainland middle and upper-class households, have emerged as a strong force in consumer spending as their parents and grandparents shower them with generous pocket money. Pocket money of ‘little emperors’ offers engine for growth Also, an interview with Zhou Qiren, economics professor and ex-monetary policy committee member with the PBOC: China has to change nature of economic stimulus measures China needs to improve the quality of its growth policies to deal with the widening economic disparity

BOJ’s Shirakawa on that inflation target and more Posted: 25 Jan 2013 09:54 PM PST We reported Shirakawa's comments yesterday – this article expands: Shirakawa says BOJ alone can't attain inflation target Shirakawa had better get a haircut and get a real job (or at least get his CV updated).

Currency war accusations against Japan … Aso responds: “Talk to the hand” Posted: 25 Jan 2013 09:54 PM PST More/recap on 'currency war' accusations against Japan and the Japanese response: Merkel worried by Tokyo's actions to lower yen Tokyo rules out fiddling with the yen Japan Rebuffs Currency Manipulation Claim   Talk to the hand! Also: Germany’s Merkel Invites Japanese Prime Minister To Germany German Chancellor Angela Merkel telephoned Japanese Prime Minister Shinzo Abe on Friday to congratulate him on his recent election What took her so long?

Tokyo’s optimistic GDP forecast Posted: 25 Jan 2013 09:54 PM PST Japan to Project Nominal Growth of 2.7 Pct for FY 2013 Optimistic forecast for GDP growth next year … a big problem when you are using such forecasts to set budgets… The government will project that Japan’s nominal gross domestic product will expand 2.7 pct in fiscal 2013, outpacing real-term GDP growth for the first time in 16 years, sources said Friday.…The anticipated projections will be far higher than growth of 1.7 pct in real terms and 1.9 pct in nominal terms for fiscal 2013 that the Cabinet Office estimated in summer last year. But it is uncertain whether the economy will grow so strongly. The planned projections will be used to set a state budget for fiscal 2013 starting in April and regarded as effective government economic targets.   Japan FY 2013 Budget to Hit Record High around 93.5 T. Yen  Related to the previous article. New JGB Offerings To Reach Y42.8tln Under FY13 Budget

Euro vulnerable to profit taking; Moves look too extreme to sustain s/t – BNP Paribas Posted: 25 Jan 2013 12:52 PM PST Do we agree with the Frenchies? I have to say BNP is not really a bank I follow.

Is that Putin sitting in on Geithner’s final staff meeting? Posted: 25 Jan 2013 12:35 PM PST Buh-bye, Timmy…

Not alot of people know this….. Posted: 25 Jan 2013 12:29 PM PST My younger sister was studying at Coventry Polytechnic and met Terry Hall in a pub.  They were chatting and she used the phrase “he drinks his ageing wines” (don’t ask me why) Terry instantly pounced on it and said he’d use it in a song. And here it is, second line in….

Even better Posted: 25 Jan 2013 12:02 PM PST

ForexLive US Wrap: EUR/JPY consolidates explosive rally after LTRO repays Posted: 25 Jan 2013 12:00 PM PST EUR 137 bln in LTROs to be repaid January 30 Canadian CPI tumbles 0.6% in December m/m; up 1.1% y/y US new home sales fall 7.3% in December; rise 19.9% in 2012 SNB’s Jordan: Franc to continue to weaken; still highly valued Canada’s Flaherty: Expects upward pressure on CAD over time Fitch cuts Cyprus to B, outlook negative EUR/JPY added to gains today and each of the components did their share. News that Euro zone banks are to pay back roughly 15% of their LTRO borrowings lifted spirits, showing confidence from the EU banking sector and marginally tightening money supply. EUR/CHF firmed in it range on comments from SNB president Jordan but held below 1.2500. AUD traded very poorly as unwinding of EUR/AUD shorts continues to impact Aussie quite negatively. Soft CAD CPI saw the buck rally to 1.01 before ending at 1.0070.

I like Iggy….. Posted: 25 Jan 2013 11:25 AM PST I really do…………

ECB’s Coene: LTRO paybacks may lower euro zone spreads further Posted: 25 Jan 2013 11:17 AM PST Though I’m not sure of the mechanism… LTRO repayment a good sign, no risk of stigmatization

OECD’s Gurria: UK woll find it is in its own interest to stay in the EU Posted: 25 Jan 2013 11:12 AM PST More cocktail chit-chat from Davos.

Cyprus has long-term rating cut by Fitch Posted: 25 Jan 2013 10:57 AM PST Rating now “B” with negative outlook No reaction from EUR/USD. Cyprus is so small that Europe can afford to absorb the hit, unlike the situations in Italy and Spain. Negative outlook primarily reflects continued policy uncertainty

Large LTRO payback to lower excess liquidity Posted: 25 Jan 2013 10:43 AM PST Who wud have thunk it? Anyone remember this? I’d just like to thank the Big German for the banana-yellow porsche I’m having delivered next week Where’s Derek by the way? DEREK!!!!!!!!!!!!!!!!!!!!!!!!!!

US Treasury’s Brainard: Rules of the game to govern foreign exchange Posted: 25 Jan 2013 10:34 AM PST Expect continued commitment from governments in the rules of the game Very important for a smoothly functioning system Better mood than seen in some time in global economy Remains a lot of work to be done, in Europe and more broadly. From Davos, where we are well into cocktail hour…

Spanish FinMin: Spain fully on track to grow again Posted: 25 Jan 2013 10:21 AM PST Spain is owing the seeds of growth We live in hope.

BBVA says repaid a chunck of its LTRO loans Posted: 25 Jan 2013 09:45 AM PST The Spanish bank says it repaid “a relevant amount ” of the long-term loans extended by the ECB to help stabilize the banking system.

No, you’re joking? Gerry Davies got yet another fx poll right…… Posted: 25 Jan 2013 09:36 AM PST You can all go kiss my big fat hairy arse “Just done a quick tot up. By a circa 2-1 majority youve gone for 1.0425,  Just hope it's a little more successful than that last 2-1 majority in the recent USD/JPY poll. At least this time you've got me on your side ”

Canada’s Flaherty: Expects pressure on CAD to be upward over time Posted: 25 Jan 2013 09:26 AM PST Buy CAD/CHF, I guess!

SNB’s Jordan says expects Swiss franc to contiinue to weaken over time Posted: 25 Jan 2013 09:22 AM PST Swiss franc still highly valued Doesn’t rule out any measures should they be necessary to monetary policy Talk of a large 1.2500 barrier in EUR/CHF. Should be targeted very soon.

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