See last
night’s US Close: Mini-Twist for more article links, I also just
updated the FED Watch with “after”-links.
News
roundup – Between
The Hedges
News
roundup – The Trader
Emerging
Markets Headlines – beyondbrics
/ FT
The 6am Cut
London – alphaville
/ FT
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
Market Preview: Lower open for stocks on FOMC – Saxo
Bank
European markets will open lower Thursday in
sympathy with other global markets after the FOMC didn't deliver the hoped for
stimulus to he US economy. On the day, attention will be on Eurozone PMIs and the French,
Spanish and UK bond auctions.
Danske Daily – Danske
Bank (pdf)
Twist but no shout – Fed delivers slightly less
than markets had expected. Operation Twist has been extended to year-end but
the bar is low for further easing. Stocks closed with only minor losses in the US, Asia mainly lower. Spanish bond spreads
narrowed significantly, focus on today’s auction. Chinese manufacturing PMI falls to 48.1.
Morning Briefing: Gold,
the Euro-zone and the FOMC – BNY
Mellon
EURO CRISIS
What’s So Special About the Euro Currency Area? – View
/ BB
The real problem, of course, is that the euro area was always a political ideal designed to constrain Germany’s imperialist tendencies and prevent World War III. To a certain extent, the economic justifications were just that, nothing more. Throw in the fact that Europeans don’t want to relinquish their sovereignty and become a United States of Europe, and it’s clear why Europe is in such a muddle. How will it end? Badly -- and unfortunately not anytime soon.
The real problem, of course, is that the euro area was always a political ideal designed to constrain Germany’s imperialist tendencies and prevent World War III. To a certain extent, the economic justifications were just that, nothing more. Throw in the fact that Europeans don’t want to relinquish their sovereignty and become a United States of Europe, and it’s clear why Europe is in such a muddle. How will it end? Badly -- and unfortunately not anytime soon.
Merkel Balks at Sovereign Debt Purchases to
Overcome Crisis – BB
Merkel’s non-committal stance on the measure opens a fresh conflict as euro finance ministers meet today and Italian Prime Minister Mario Monti hosts a four-way summit in Rome tomorrow.
Merkel’s non-committal stance on the measure opens a fresh conflict as euro finance ministers meet today and Italian Prime Minister Mario Monti hosts a four-way summit in Rome tomorrow.
The Eurozone: Choked by an accounting identity – voxeu.org
Is austerity in the Eurozone doomed to fail?
This column argues that Eurozone governments have to acknowledge that their
response to the sovereign crises has been wrong. Bringing budgets back to
balance as quickly as possible and at any cost for growth is a recipe for
disaster.
What can Europe do? SocGen has a handy little chart
Germans will almost certainly support the
political concessions that might give the euro a chance of survival, including
fiscal transfers and some mutualization of debts, once they realize that their
only alternative is isolation from the rest of Europe. But before they agree to a
European Germany, voters may need to be reminded that trying to create a German Europe always leads to disaster.
Saving the Euro – EconMatters
The management of the eurozone debt crisis is
dysfunctional. In our assessment, to save the Euro currency, policy makers must
focus on competitiveness, common sense and communication. If policy makers
strived to achieve just one of these principles, the Euro might outshine the US
dollar.
The global financial crisis has barely started
and is likely to last for at least another 15 to 20 years as major economies
cut debt levels, according to Jamil Baz, one of Europe's most prominent hedge
fund managers.
Berlusconi Casts Doubt on Austerity Plan – WSJ
Former Prime Minister Silvio Berlusconi warned
that his conservative party was bleeding voters by supporting unpopular
austerity measures, raising the specter that Italy's biggest party might pull
support for the country's technocrat government before its term's scheduled end
next spring
Rompuy Blueprint Said to Include Options on
Debt, Bank Oversight
– BB
discussion of jointly issued short-term bills,
a debt- redemption fund and common banking supervision, according to two
officials familiar with the work on the project. The findings will be presented
to EU leaders in Brussels next week
CHINA
7-Month Low, Sharpest Decline in New Export
Orders Since March 2009 – Mish’s