Stocks traded higher since the get-go in Europe, with financials leading the move higher following reports

that European banks will not be required in upcoming stress tests to adjust their sovereign debt holdings to
maturity to reflect current values.
World Bank lowered China 2014 and 2015 growth forecasts, with China 2014 growth forecast cut to 7.7%
from 8.0% forecast in June.
Bank of America due to report earnings at 1200GMT/0600CST.
Market Re-Cap
Stocks traded higher since the get-go in Europe, with financials leading the move higher following reports
that European banks will not be required in upcoming stress tests to adjust their sovereign debt holdings to
maturity to reflect current values. As a result, peripheral bond yield spreads tightened, also benefiting from good
demand for 5y EFSF syndication, where price guidance tightened to MS+7bps from initial MS+9bps. Also of note, Burberry
shares in London gained over 6% and advanced to its highest level since July, after the company posted better than
expected sales data. Nevertheless, the FTSE-100 index underperformed its peers, with several large cap stocks trading
ex-dividend today.
Looking elsewhere, despite the risk on sentiment, USD index remained supported by hawkish commentary by Fed
members, as well as the surge higher by USD/JPY overnight which benefited from a positive close by the Nikkei 225 index
which posted its biggest one-day gain in four months. Going forward, market participants will get to digest the release of
the latest Empire Manufacturing report, PPI and DoE data, as well as earnings by Bank of America.
Global
The World Bank raised its world growth forecast for 2014 and 2015, raised Eurozone 2014 GDP to 1.1% from 0.9%,
increased Japan 2014 GDP growth figure to 1.4% from 1.2%, but lowered China 2014 and 2015 growth forecasts with
China 2014 growth forecast cut to 7.7% from 8.0% forecast in June. (BBG/TTN)
Asian Headlines
Credit Suisse believes the BOJ needs to stimulate sooner rather than later with easing on the cards in Feb or
Mar meetings. (CS)
Chinese New Yuan Loans (Dec) M/M 482.5bln vs. Exp. 570.0bln (Prev. 624.6bln) (BBG)
Foreign Reserves (USD)(Dec) M/M 3280.0bln (Prev. 3660.0bln, Rev. 3662.7bln)
EU & UK Headlines
ECB said in a letter to EU lawmakers it is not foreseen that held-to-maturity sovereign debt portfolios will be
marked-to-market in European bank stress tests. (BBG/RTRS)
Peripheral bond yield spreads are seen tighter this morning in Europe, with EFSF attracting solid demand for its 5y
syndication, where books are said to be around EUR 12bln.
Germany sells EUR 4.104bln in 1.00% 2019 Bobl (new), b/c 1.7 (Prev. 1.6) and avg. yield 0.9% (Prev. 0.68%), retention
17.9% (Prev. 17.8%). (BBG/RTRS)
Eurozone Trade Balance SA (Nov) M/M 16.0bln vs. Exp. 14.8bln (Prev. 14.5bln, Rev. to 14.3bln)
Eurozone Trade Balance NSA (Nov) M/M 17.1bln vs. Exp. 16.5bln (Prev. 17.2bln, Rev. to 16.8bln)
US Headlines
US House of Representatives passed the bill funding US government through January 18th. US Senate Majority Leader
Reid said the omnibus bill vote will probably be on Friday. (BBG)
E-Mail: info@ransquawk.com Tel: (+44) 0203 017 4300
Daily US Opening News
The following report is tailored to our US audience to provide a concise review of all market moving
events from the Asian and the European trading sessions
January 15, 2014
page 1 of 4
Equities
Financials outperformed in Europe, as credit spreads tightened following reports that European banks will not
be required in upcoming stress tests to adjust their sovereign debt portfolios they hold to maturity to reflect
current market values. As a result, the likes of Commerzbank, Deutsche Bank and other major EU based financials
traded with gains of over 2%. At the same time, Spanish giant Santander traded ex-dividend and as a result
underperformed broader sector. Also of note, the FTSE-100 index underperformed its peers, with several large cap stocks
trading ex-dividend today.
**Note: Please refer to the European Equity Opening News on the website
Index DAX CAC FTSE EUROSTOXX SMI
Level 9634.04 4296.23 6787.8 3136.83 8396.36
Change (ticks) 93.53 22.03 20.94 17.30 11.71
FX
In spite of the broad based risk on sentiment, USD index remained supported by yet another grind higher by USD/JPY
overnight after the Nikkei 225 index posted its biggest one-day gain in four months, as well as hawkish Fed commentary
from the night before. At the same time, firmer USD, together with World Bank lowering its China 2014 and 2015 growth
forecasts resulted in broad based pressure on AUD, with the pair falling below its 21DMA in the process.
Currency EURUSD GBPUSD USDJPY
Level 1.3625 1.6432 104.31
Change (pips) -0.0054 -0.0008 0.0900
Commodities
China 2014 oil demand to rise about 4% to 518mln Mt and net crude imports to increase 7.1% to 298mln Mt
in 2014, according to CNPC data. Also of note, Brent crude may drop to USD 100/bbl to USD 108/bbl this year and
WTI oil may rise to average USD 97/bbl to USD 105/bbl, according to CNPC forecasts. (BBG)
No Libyan crude is been pumped to ports outside state control as all fields are under regular army control. (Libya News
Agency)
US API Crude Oil Inventories (Jan 10) W/W -4140k vs. Prev. -7310k
- Cushing Crude Inventory (Jan 10) W/W 152k vs. Prev.1190k
- Gasoline Inventories (Jan 10) W/W 5400k vs. Prev. 5580k
- Distillate Inventory (Jan 10) W/W -1700k vs. Prev. 5170k
Indian gold demand this month has halved from a year ago despite the fall in prices and expectations of better purchases
in the wedding season as consumers are being cautious and younger people prefer to spend on fancy gadgets rather than
the precious metal. (indiatimes)
US Mint cut silver-coin supply to 500,000-600,000 for next week, but said that allocation is to increase in following week.
The US Mint also state that silver-coin sales today were 191,000 and that 203,500 silver-coins remain this week. (BBG)
*Please see today's 'Energy Commentary' report for more energy news.
Commodity WTI Nymex OTC Spot Gold
Level 92.77 1239.28
Change (USD) 0.18 -5.91
page 2 of 4
Daily Calendar
CST GMT CO DATA LOW EXP HIGH PREV
0600 1200 US MBA Mortgage Applications (Jan 10) W/W 2.60%
0730 1330 US Empire Manufacturing (Jan) M/M -2 3.5 7 0.98
0730 1330 US PPI (Dec) M/M -0.10% 0.40% 0.80% -0.10%
0730 1330 US PPI Ex Food and Energy (Dec) M/M 0.00% 0.10% 0.20% 0.10%
0730 1330 US PPI (Dec) Y/Y 0.70% 1.10% 1.50% 0.70%
0730 1330 US PPI Ex Food and Energy (Dec) Y/Y 1.20% 1.30% 1.70% 1.30%
0800 1400 CA Existing Home Sales (Dec) M/M -0.10%
0930 1530 US DOE U.S. Crude Oil Inventories (Jan 10) W/W -2000K -1150K 2000K -2675K
0930 1530 US DOE Cushing OK Crude Inventory (Jan 10) W/W 1100K
0930 1530 US DOE U.S. Gasoline Inventories (Jan 10) W/W 600K 2200K 5200K 6243K
0930 1530 US DOE U.S. Distillate Inventory (Jan 10) W/W 500K 1375K 3400K 5826K
0930 1530 US DOE U.S. Refinery Utilization (Jan 10) W/W -1.00% -0.50% 0.30% -0.10%
1300 1900 US U.S. Federal Reserve Releases Beige Book Report
1500 2100 NZ ANZ Truckometer Heavy (Dec) M/M -1.50%
1750 2350 JN Tertiary Industry Index (Nov) M/M 0.40% 0.70% 1.00% -0.70%
1750 2350 JN Machine Orders (Nov) M/M -1.20% 1.10% 6.00% 0.60%
1750 2350 JN Machine Orders (Nov) Y/Y 3.00% 11.70% 17.20% 17.80%
1750 2350 JN Domestic CGPI (Dec) M/M 0.10% 0.30% 0.50% 0.10%
1750 2350 JN Domestic CGPI (Dec) Y/Y 2.40% 2.60% 2.80% 2.70%
N/A N/A US U.S. Regulators Address Volcker Rule
N/A N/A NZ REINZ Housing Price Index (Dec) M/M 3885.5
N/A N/A NZ REINZ House Price Index (Dec) M/M 1.20%
N/A N/A NZ REINZ House Sales (Dec) Y/Y -6.60%
N/A N/A CH Aggregate Financing RMB 1040.0B 1137.5B 1500.0B 1230.0B
N/A N/A CH Foreign Reserves (Dec) $3660.0B
N/A N/A CH New Yuan Loans (Dec) 425.0B 570.0B 660.0B 624.6B
N/A N/A CH Money Supply M0 Y/Y (Dec) 7.20% 8.00% 10.80% 7.70%
N/A N/A CH Money Supply M1 Y/Y (Dec) 8.10% 9.00% 9.50% 9.40%
N/A N/A CH Money Supply M2 Y/Y (Dec) 13.40% 13.90% 14.40% 14.20%
SPEAKERS
0705 1305 EU ECB's Mersch (Hawk) Speaks in Saarbruecken, Germany
0800 1400 EU ESM's Regling Speaks at EU Parliament Panel on Troika
0815 1415 UK BoE's Carney (Dove), Dep. Gov. for Fin. Stability Cunliffe, FPC's Furse and Sharpe speak at the Financial Stability Report
0900 1500 EU ECB's Mersch (Hawk) Speaks in Saarbruecken, Germany
0900 1500 US US House Financial Committee Hearing on the Volcker Rule
1150 1750 US Fed's Evans (Voter, Dove) Speaks on Economy in Coralville, Iowa
1200 1800 US IMF Head Lagarde Speaks at National Press Club
1300 1900 IT Italy Government Representatives Speak in Senate on EU Summit
1645 2245 US Fed's Lockhart (Non-voter, Dove) Speaks to CFA Society of Atlanta
N/A N/A EU Bundesbank Board Member Joachim Nagel Speaks in Frankfurt
N/A N/A US US Secretary of State Kerry Visits Middle East and Europe
N/A N/A EU Rehn and Dijsselbloem Meeting Chinese Officials in Beijing
N/A N/A US President Obama Speaks on the Economy in North Carolina
AUCTIONS
1000 1600 US Fed’s Outright Trea. Coup. Purch. Oct’18 – Sep’19 (USD 4.00-5.00bln)
EARNINGS
UK N/A
EU N/A
SZ N/A
US Bank of America Corp, CSX, Kinder Morgan Inc/DE, Kinder Morgan Energy Partner
Last price taken at: 1109GMT
Note:
Short Sterling Jan’14 Options and Futures Expire at 1100GMT/0500CST
WTI Feb’14 Options Expire at 1930GMT/1330CST
Platinum and Palladium Feb’14 Options Expire at 1805GMT/1205CST
Sources: Newswires/BBG/RTRS/indiatimes/Libya News Agency
You can now follow real-time news headlines on the move with the new RANsquawk app available to download for free at
ransquawk.com/mobile_app for Apple iPhone, Blackberry and Android users. Please note the headlines can be viewed on
the app between 0630GMT/0030CST to 2200GMT/1600CST Monday to Friday but does not include Asian-Pacific news.
page 3 of 4
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sources believed to be reliable. Whilst all reasonable care is taken to ensure that the facts stated are accurate, neither Real-time Analysis & News Limited nor any director, officer or
employee shall in any way be responsible for its contents. This document is intended to provide clients with information and should not be construed as an offer or solicitation to buy or
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