MORNING BRIEFING: The US dollar declined against the Euro to 1.4100 as appetite for risk returns.

[RTFX-Trading]

MORNING BRIEFING: The US dollar declined against the Euro to 1.4100 as appetite for risk returns.

What’s new?
Switzerland: Pessimistic KOF forecasts raise concern on the Swiss economy.
United States: The Supreme Court authorizes the sale of Chrysler to industrial group Fiat.
Germany: Arcandor distributor filed for bankruptcy.
United States: 10 of 19 major US banks are permitted to repay a total of $ 68 billion aid.
United States: Geithner suggests a recasting of the regulatory framework.
England: The great British bank Lloyds will cut 1,600 jobs.

Today:
08h00 Germany: Consumer Price Index final M/M May, exp -0.10%, previous 0.00%.
08h00 Germany: Consumer Price Index final Y/Y May, exp 0.00%, previous 0.00%.
08h45 France: Industrial production April, exp -0.20%, previous -1.40%.
10h30 United Kingdom: Industrial production April, exp -0.20%, previous -0.60%.
10h30 United Kingdom: Trade balance April (£), exp -6.40B, previous -6.59B.
14h30 United States: Trade balance April ($), exp -29B, previous -27.58B.
14h30 Canada: Trade balance April (CAD), exp 1.00B, previous 1.11B.

Overnight Rate and Indices:
EURUSD: 1.4102 – 1.4050.
USDCHF: 1.0795 – 1.0759.
GBPUSD: 1.6355 – 1.6295.
EURJPY: 137.69 - 136.68.
USDJPY: 97.72 – 97.09.
DowJones: 8'763 -0.02%.
NASDAQ: 1’860 +0.96%.
S&P 500: 942 +0.35%.
Nikkei: 9’783 -0.83%.
Gold: $959.10

Comments:

The Swiss franc was heckled yesterday following the KOF predictions. In a study made public, KOF found that Switzerland was facing a severe recession that would result in a marked contraction of GDP and a rise in unemployment.

In Germany, one of the biggest names in the tourism and retail industries, Arcandor, filed for bankruptcy yesterday. The group is the first non-banking victim of the Germany economic crisis. This bankruptcy concerns about 43'000 employees.

In the United States, 10 of the 19 largest US banks are permitted to repay a total of $ 68 billion aid that was granted to restart the credit market (TARP). These reimbursements show a positive signal. By reimbursing the TARP, many banks hope to get restrictions on salaries lifted, which had been imposed as a consequence of public aid.

Emman Xuereb

RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 23 31 00 00
Fax: +356 21 41 24 58
Web: www.rtfx.com

This message and any attachments (the "message") are intended solely for the addressees and are confidential. If you receive this message in error, please delete it and immediately notify the sender. Any use not in accordance with its purpose, any dissemination or disclosure, either whole or partial, is prohibited except with formal approval. The internet cannot guarantee the integrity of this message. RTFX Ltd (and its subsidiaries) shall (will) not therefore be liable for the message if modified. Do not print this message unless it is necessary, consider the environment. RTFX Ltd holds a Category 3 license issued by the Malta Financial Services Authority.