News Headline Summary

News of note from this weekend...

- The IMF has warned that EU bailout lenders will need as much as EUR 9.6bln in additional funds for Greece by the end of its current rescue even if the programme stays on track, but they could face huge losses on their existing loans if Athens’ bailout wobbles as in the past. The IMF also warned the programme remained at high risk of missing its revised goals. (FT) http://www.ft.com/cms/s/0/143b98da-6198-11e2-82cd-00144feab49a.html#ixzz2IXxEP0Uu

- Former Italian PM Berlusconi extended his surge in opinion polls on Friday, increasing prospects that the centre-left Democratic Party will have to seek a coalition with Mario Monti’s centrist bloc. (Newswires)

- In his first interview the newest BoE MPC member McCafferty says he is skeptical on QE and thinks ‘the economy is growing modestly’ at 0.3% a quarter. McCafferty fears this week’s GDP could show a fall, partly explained by unwinding of the Olympics boost, and there is a danger that the way this is reported will ‘further damage confidence’. McCafferty is reluctant to label himself a hawk or dove but is fully committed to low inflation. (Sunday Times)

- House majority leader Cantor said the House is to authorise bill next week to extend debt limit by three months. (Newswires) The three-month debt limit extension will give senate time to pass the budget.

- On Friday A special adviser to the Japanese PM Abe has said the BoJ should continue to pursue monetary easing until USD/JPY rises to 100.00. The adviser said USD/JPY at 110.00 would be too much weakness for Japan. (Newswires)

- Japanese PM Abe's advisor Hamada said the Bank of Japan will need to slow monetary easing if the effects on prices and the JPY go too far. (Newswires)

- Japan said it may fire warning shots and take other measures to keep foreign aircraft from violating its airspace. On 10th January a pair of Chinese J-10 fighters were scrambled after Japanese F-15s began tailing a Chinese surveillance plane near the disputed islets in the East China Sea. (Japan Times) In addition to this, PM Abe will send the letter to China's Communist Party General Secretary Xi Jinping, via Natsuo Yamaguchi of the New Komeito party, who will visit China from January 22nd. (Nikkei)

Print 22:13, 20 Jan 2013 - Asian News - Source: Newswires/FT/Nikkei/Japan Times