POWER: RenewableUK Cymru Warns Zonal Pricing Could Raise Welsh Energy Bills
Mar-14 10:21
Trade association RenewableUK Cymru is urging the UK government to reconsider its proposed zonal electricity pricing scheme, warning it could drive up energy costs in Wales, hinder clean energy investment, and disrupt economic growth, it said.
- Modelling by LCP Delta suggests Wales could be split into four zones, with three zones facing high prices due to high demand and limited generation (see Map).
- Proposed zones could place South Wales in the same zone as London, and much of Mid and North Wales in a zone with Manchester and Leeds, potentially raising Welsh energy bills.
- Additionally, Welsh industries like Port Talbot Steelworks, transitioning to electric arc furnaces, would face challenges if electricity prices rise, as they cannot easily relocate like data centres.
- The association emphasised the importance of modernising grid infrastructure to efficiently transfer renewable power where it's needed, rather than relying on pricing schemes.
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EUROZONE ISSUANCE: Greece Auction Results: 3.625% Jun-35 GGB
Feb-12 10:21
| 3.625% Jun-35 GGB | Previous | |
| ISIN | GR0124041758 | |
| Amount | E250mln | |
| Avg yield | 3.24% | 3.637% |
| Bid-to-cover | 4.75x | |
| Avg Price | 103.370 | 99.913 |
| Pre-auction mid | 102.790 | |
| Previous date | 14-Jan-25 |
FOREX: JPY Weakness Stands Out, as Markets Looks for Inflection Point
Feb-12 10:13
- The JPY's overnight step lower stands out among G10 FX Wednesday, headlined by USD/JPY's rally back above Y153.00, closing in on the first major resistance at 154.46. Clearance here would be bullish. Despite pulling back from the morning highs, EURJPY remains 0.8% higher today as the cross extends the rebound from Friday’s low. While the move higher is allowing a recent oversold condition to unwind, the impressive recovery reached as much as 406 pips, perhaps exacerbated by a short-term positioning squeeze ahead of US inflation data. Furthermore, the hawkish ECB repricing and strength for European equities will have provided additional tailwinds.
- Meanwhile, GBP/USD's strong rally off yesterday's lows means the pair has now retraced over 50% of the post-BoE decision losses, putting the price within 100 pips of last week's highs. This signals that markets are taking Mann's views at face value this week - and that her vote for 50bps last week isn't the beginning of series of votes for aggressive easing given her preference for restrictive policy (we gauge bank rate as being ~100bps above her top estimate of neutral, therefore leaving little room for sizeable cuts).
- In contrast with JPY, CHF is firmer against all others in G10 - benefiting from the unwind of the sharp pullback in the CHF/JPY cross over the course of 2025. Moves come ahead of the January Swiss CPI print, at which markets expected the Y/Y inflation release to retreat further - hitting 0.4% and the lowest rate since early 2021.
- The US inflation print takes focus for the rest of the day, with markets anticipating a moderation in inflationary pressures for January - but the release could be muddier than usual due to the concurrent posting of annual revisions for inflation. Central bank speak also comes through thick and fast, as Powell faces a second appearance in front of lawmakers on top of appearances from BoE's Greene, ECB's Nagel and Fed's Bostic.
ITALY T-BILL AUCTION RESULTS: 12-month BOT Results
Feb-12 10:06
| Type | 12-month BOT |
| Maturity | Feb 13, 2026 |
| Amount | E8bln |
| Target | E8.0bln |
| Previous | E8bln |
| Avg yield | 2.323% |
| Previous | 2.517% |
| Bid-to-cover | 1.52x |
| Previous | 1.49x |
| Previous date | Jan 10, 2025 |
