Not much to
report, only couple of articles since yesterday. See my last night’s US Close: Everything, Squared for article links. Understand the
EU summit, and understand what makes the
FED move. The rest is just…well,
conversation.
News roundup – Between The Hedges
News
roundup – The Trader
The 6am Cut
London – alphaville
/ FT
Emerging
Markets Headlines – beyondbrics
/ 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: Spanish, Italian bond auctions
eyed – Saxo
Bank
European markets are likely to open mostly
higher Tuesday. Yesterday, Moody's downgraded its long-term debt and deposit
ratings on 28 Spanish banks. Investors await the outcome of the Spanish and
Italian bond auctions due today.
Danske Daily
– Danske Bank (pdf)
EU-summit draft suggests enhanced power that
should enable EU to rewrite budgets for euro area member states that violate
the debt and deficit rules. Cyprus applies for EFSF/ESM
assistance and the Greek Finance Minister steps down due to health problems. 28
Spanish Banks downgraded between 1-4 notches by Moody’s. Thin global calendar
with US consumer confidence as the main release.
Morning
Briefing: Definitely Maybe – BNY Mellon
Whilst there may yet be a softer side to Germany’s hard line on Greece,
any conciliation on offer will be insufficient to cure Greece’s ills
EURO CRISIS: THE SUMMIT
All the bail-out systems under the sun cannot
make the eurozone work – The
Telegraph
Another week, another summit. This week's shindig
of EU leaders in Brussels will be bound to focus on efforts to shore up the euro.
Oui Nein & Non Ja - Franco-German fault lines
& Eurocrisis – Re-Define
So France says Oui to the
important things that Germany says Nein to. The conditions for a German Ja are things that to France may always be Non… The
fate of the EU and the Eurozone in particular once again lies in the hands of France and Germany. It does not bode well then that the fault line between the two remains
as big as ever!
Merkel Hardens Resistance to Euro-Area Debt
Sharing – BB
EURO CRISIS: PIIGS
Moody’s downgrades Spanish banks – alphaville
/ FT
Spanish Bank Bailout Analysis – According to
EFSF FAQ – TF
Market Advisors
…it seems to have addressed a lot of the
questions and the answers seem reasonable.
OTHER
The IMF response to the crisis: Crisis
prevention and political influence – voxeu.org
In the wake of the global crisis the IMF has
increased its exposure and modified its lending approach. This column looks at
IMF loan arrangements in developing countries since 2008 and suggests that the
Fund has played a role in dampening contagion effects. However, its lending
operations have also been influenced by political similarity between borrowers
and G7 governments.
DB projects consumer deleveraging will be
complete within two years – Sober
Look
They determined the long-term trend line based
on consumer debt to GDP ratio from 1953 to 2003, thus excluding the bubble years. Then they
compared the current leverage to this line and looked at the rate of
convergence. The intersection with the trend line is expected to take place in
a year.
gaming revenue growth in China looks closely
correlated to overall economic growth.