News Headline Summary

News stories of note from over the weekend...

Europe

The ECB has denied a report in a German newspaper alleging that it was prepared to set firm limits to the extent of its still unused program to buy government bonds. (Newswires) This is in response to an article in Frankfurter Allegemeine Sonntagszeitung that said the ECB to spend max. of EUR 524bln to buy bonds and the ECB had signalled it would apply ex ante limits to its interventions under the OMT.

IMF wants to get next Greek haircut under way according to German press. (Der Spiegel) The IMF can only participate in further rescue programs for Greece if financing for the country has been secured for the next 12 months.

Crucial hearings on the Eurozone’s bail-out policies at Germany’s top court this week could set in motion events that force Germany’s withdrawal from the Euro, a leading judge has warned. (Telegraph) Udo di Fabio, the constitutional court’s euro expert until last year, said the explosive case on the legality of the European Monetary Union rescue machinery could provoke a showdown between Germany and the European Central Bank (ECB) and ultimately cause the collapse of monetary union.

Italian finance minister Saccomanni said ECB's Draghi was a little misunderstood and is open to taking more expansive measures. (Newswires) Saccomanni said ECB measures will reduce risk of future disruptions, and ECB measures much easier to unwind than elsewhere. (Newswires) In other news Italy's VAT increase may be delayed until December. (Messaggero)

UK

Chancellor Osborne is expected to use his Mansion House speech in 10 days time to reveal the sale of the state's 39% stake in Lloyds, raising up to GBP 17bln. (Sunday Times)

FX

Poland's central bank may again intervene in the local currency market to limit PLN volatility according to central bank governor Belka. (PAP)

Geopolitical

Iran installs reactor vessel at heavy water site. (Newswires) Nuclear chief Davani said that "the installation is a major step in the progress of this project".

US Air Force has used a bunker busting bomb to destroy a replica of one of Iran's underground nuclear facilities, according to reports in Israel. Results have been passed by the Pentagon to Israeli officials in an attempt to convince them that America was prepared to attack Iran's nuclear programme and had the means to do so. (Sunday Times)

Commodities

China imported 23.95mln metric tons of crude oil in May, equivalent to 5.66 MBPD and down 6% on the year according to preliminary data. (Newswires)

Print 21:10, 09 Jun 2013 - Asian News - Source: Newswires/Der Spiegel/Telegraph/Messaggero/Sunday Times/PAP