Week of December 11, 2011 thru December 17, 2011

BOJ To Revamp Japan Corporate Price Data Next Summer

TOKYO (MNI) - The Bank of Japan said on Tuesday it plans to switch the base year for the corporate goods price index to 2010 from 2005 as well as update the basket of goods used for calculating CGPI and change the weighting of items within the basket, all in the summer of 2012.

The BOJ hopes to increase the accuracy of the key producer price measure by reflecting technological development, a shift of production overseas and the move toward renewable energy sources.

Solar batteries will be added to both the export and import CGPI while ethylene-vinyl acetate resin -- a material used for making solar batteries -- will be included in the domestic CGPI, the closely watched index.

The new domestic CGPI will also include hybrid electric vehicles.

Analysis: France's Inflation Boosted By Costlier Food, Energy

November HICP: +0.3% m/m, +2.7% y/y November nsa CPI: +0.3% m/m, +2.5% y/y November sa core: +0.3% m/m, +1.6% y/y

MNI survey median: +0.2% m/m, +2.6% y/y (HICP) MNI survey range: +2.4% to +2.6% y/y (HICP)

October HICP: +0.3% m/m, +2.5% y/y October nsa CPI: +0.2% m/m, +2.3% y/y October sa core: +0.2% m/m, +1.3% y/y


PARIS (MNI) - French consumer prices rose more than generally expected in November, driven mainly by costlier food and especially energy, the national statistics institute Insee said Tuesday.

Prices rose 0.3% on the month in both EU-harmonized HICP and national CPI terms compared to a 0.1% monthly uptick a year earlier for both indices.

Repeat: ECB Kranjec: Sure Euro To Remain Common Currency: TV

--Originally transmitted on Monday at 18:12 ET

FRANKFURT (MNI) - The euro will remain the common currency of Europe in the future, European Central Bank Governing Council member Marko Kranjec said Monday in a television interview.

Kranjec, who heads the Bank of Slovenia, said on the Slovenian national news program Odmevi on station RTV that a return to predecessor currencies would be bad for any country taking such a step as well as for the union as a whole.

"I am sure that the euro as a common currency will exist in the future, and Slovenia has to stay in the Eurozone," he said.

INSIGHT: Weaker Japan Exports Cloud BOJ Recovery Outlook

TOKYO (MNI) - Bank of Japan board members will discuss next week whether the BOJ needs to ease credit further to counter the drag from the global slowdown, which is pushing back the timing of the export-led economic recovery.

ASIA FX: US Dollar Steady Vs Euro But Risk Sentiment Weak

SINGAPORE, Dec. 13 (MNI) - The U.S. dollar mostly steady against major currencies in Asia Tuesday, while risk appetite stayed soft but with the euro managing to fend off further sharp losses in quiet year-end dealings.

Dealers said with last week's EU Heads of State Summit now over, market players were shifting their focus to events unfolding this week that might drive risk sentiment.

Fears of an eurozone credit rating downgrade, potentially as early as this week, has weighed on the euro and risk appetite in general.

On December 5, Standard & Poor's placed the ratings on 15 of the 17 member states of the European Monetary and Economic Union (EMU or eurozone) governments on CreditWatch with negative implications.

France Data: MNI Survey Of Econ Data Forecasts Dec 12 to 16

CPI - December HICP - December %mom %yoy %mom %yoy

Median Forecast 0.2 2.4 0.1 2.5 High forecast 0.2 2.6 0.2 2.6 Low forecast 0.1 2.3 0.0 2.4 Previous period 0.2 2.3 0.2 2.5 - Number of responses 6 7 6 6 - Barclays Cap.

Germany Data: MNI Survey Of Econ Data Forecasts Dec 12 to 16

ZEW - December PMI - flash business current - December - climate situation mfg svc

Median Forecast -57.0 32.0 47.0 49.5 High forecast -50.0 37.5 47.0 50.0 Low forecast -62.0 25.0 46.5 49.0 Previous period -55.2 34.2 47.9 50.3 - Number of responses 15 9 5 5 - 4Cast -57.0 32.0 47.0 50.0 Barclays Cap.

EMU Data: MNI Survey Of Econ Data Forecasts December 12 to 16

Industrial Production HICP - December - October - (final) %mom %yoy %mom %yoy

Median Forecast -0.3 2.4 0.1 3.0 High forecast 0.3 4.2 0.3 3.0 Low forecast -2.8 1.4 0.0 3.0 Previous period -2.0 2.2 0.3 3.0 - Number of responses 14 11 12 13 - 4Cast na na 0.1 3.0 Barclays Cap.

China PBOC 1Y Paper Yield Unchanged; Repo Drain CNY35 Bln

BEIJING (MNI) - The yield on the CNY38 billion in one-year paper sold by the People's Bank of China on Tuesday remained unchanged at 3.4875%, traders said.

The bank earlier drained CNY35 billion from the market via 28-day bond repurchase agreements. Outstanding paper maturing this week totals CNY13 billion, implying that the central bank is already on track to conduct a net drain via open market operations for a third straight week.

That said, some CNY350 billion entered the system last Monday as a 50 basis point reserve requirement cut went into effect.

The central bank drained CNY101 billion last week.

China PBOC Sets Dlr-Yuan Parity Lower At 6.3359; +4.64% Y/Y

BEIJING (MNI) - The People's Bank of China set the yuan's central parity rate against the U.S. dollar at 6.3359 on Tuesday, lower than Monday's 6.3297.

Today's parity is below the record high of 6.3165 set on Nov.4.


Today fixing 6.3359 8.3523 8.1302 Prev. fixing 6.3297 8.4549 8.1521 Prev.