From: Ike Groff Subject: Early Tour 1.25.13 Date: Fri, 25 Jan 2013 10:51:44 +0000 Inline-Images: image00 1 jpg; image002.png Description: Description: Good Morning ... European Markets up 0-70bps (DAX +1.16%, SMI -0.09%) ... ASX +0.52%, NKY +2.88%, KOSPI -0.91%, TWSE -0.30%, SHCOMP -0.49%, HSI -0.08% EUR 1.3430 (+0.39%) JPY 90.82 (-0.54%) EUR/JPY 121.97 (+0.93%) Italy 10yr 4.08% Spain 10yr 5.16% US 10yr 1.88% Futures: Dow +34, Nasdaq +12, +4 DXY $79.82 (-14c) Crude $96.31 (+35c) Gold $1669.80 (-10c) Copper +0.45% Asian markets were mostly lower overnight, except Japan which posted its 11th w/w gain. NKY225 opened stronger and closed on its highs +2.88% as JPY weakened to a 2.5yr low vs USD (90.85). Japan's Dec CPI released before the open in Tokyo showed the 7th decline in 8 months (core CPI -0.2% y/y vs est -0.2%) and boosted speculation that the BOJ will need to re-think the timing of the new easing measures announced this week (this also comes on the back of yesterday's comments from the Deputy Economy Minister that endorsed further weakness to 100). Gains were across the board with all Topix sub-sectors closing higher. The headlines should continue next week with Abe addressing the parliament on economic strategy on Monday and a number of earnings reports due including Honda, Nintendo, DoCoMo, Sharp, Canon, Nomura and Panasonic. Outside of Japan, SHCOMP continued to pullback from yesterday's highs which weighed on HK and the KOSPI underperformed as Samsung (-2.5%) and Kia (-4.9%) were both weaker following results. The ECB is due to announce the results of the first LTRO 1 repayment option shortly (6am EST). Banks now have the option to make full or partial repayments on a weekly basis until the 3yr LTRO ends in 2015 (LTRO 2 repayment option begins end of Feb). Consensus is that banks that deposited the funds back at the ECB for liquidity purposes (mostly core banks) may start to repay due to the negative carry, while banks that use