Week of December 11, 2011 thru December 17, 2011

Euro CDS: Peripheral Spreads Lead Market

LONDON, Dec 12 (MNI) - European credit markets have had a generally weak session, taking their cue from widening peripheral bond markets in Europe. European stocks are down about 1% in response with the markets exhibiting disappointment at the outcome of last week's EU meeting.

Euro Credit: Quiet Start To The Week

LONDON, Dec 12 (MNI) - The new issues market has had a quiet start to the week, with no deals joining the pipeline.

LatamWatch: Argentina Pres Starts 2nd Term; Reserves Recover

* Brazil National Monetary Council Could Ease Macroprudential Measures * Mexico Construction Seen Bolstering Industrial Production

BUENOS AIRES, MEXICO CITY and SAO PAULO, Dec 12 (MNI) - Argentine President Cristina Fernandez de Kirchner this week starts her second four-year term, possibly with measures to deepen a pro-consumption economic model that has brought steady expansion since 2003.

The president, however, will face challenges in sustaining the growth, with forecasts suggesting expansion could slow to less than 4% next year from an 8% average over the past eight years.

The downturn is a response to a decline in global commodities demand and prices as crises hit the global economy.

Ldn FX: Sterling Recoups Losses As UK Corporate Sells Euro-Stg

LONDON, Dec. 12 (MNI) - Sterling recouped early Europe losses as a UK corporate euro-sterling sell order was reportedly executed into the 1100GMT fix.

Cable saw extended lows of $1.5537, from Asia opening highs of $1.5665, but was closing the European morning around $1.5625 after euro-sterling was driven back from early highs of stg0.8555 to stg0.8490.

STERLING SUMMARY: Opened early Europe at $1.5630, stg0.8534

-- Cable closed in NY at $1.5665, with rate drifting off from that level

through Asia, trading to a low of $1.5628 ahead of the European open with early Europe extending move to $1.5622.

Ldn FX: Euro Pressured As Post-Summit Ratings Action Looms

LONDON, Dec. 12 (MNI) - Reaction to Friday's EU Summit saw the euro under pressure through Asia and then into European morning trade Monday as the market gears up for reaction from the ratings agencies following recent ratings warnings from S&P and comments by Moody's at the weekend that they saw notnhing new in Friday's agreement.

Euro-dollar traded to a low of $1.3256, from early Asian highs of $1.3388, with the rate holding heavy ahead of the New York open. Eurozone developments continue to drive markets in thinning trade.

EURO SUMMARY: Opened early Europe at $1.3339

-- Euro-dollar closed in NY Friday at $1.3385, after rate recovered off

lows of $1.3318 to $1.3391.

UK 2012 House Price Inflation Seen Between -2%/+2% - Halifax

LONDON (MNI) - UK house price inflation in 2012 will be "broadly stable" between -2% and +2%, according to the Halifax's house market outlook for coming year, thanks to low interest rates and a favourable affordability position.

Commenting, Martin Ellis, housing economist, said:

"Overall, we expect continuing broad stability in house prices nationally during 2012. Prices are again likely to end the year at levels close to where they begin with the market continuing to lack any real direction...

"The prospect of an exceptionally low Bank of England Bank Rate over the foreseeable future is likely to continue to support the market over the coming 12 months," Halifax said.

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.

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.

EFSF Seeks Bids On E2 Bln New 91-Day Bills; Sale Dec 13

FRANKFURT (MNI) - The European Financial Stability Facility, via the German Finance Agency, is seeking bids on 91-day bills, the Bundesbank confirmed Monday. The EFSF is envisaging a total volume of E2 billion.

Bids are due by 1100 GMT on Tuesday, December 13. The announcement of the auction results will be made shortly thereafter.

The bills will settle on Thursday, December 15, 2011 and mature on March 15, 2012.

-- Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com --

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