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Thursday, August 9

9th Aug - US Open: Verbose ECB

EURUSD continues grinding down towards the next support levels, while SPX is reluctant to follow. ECB's monthly bulletin was published and the section on renationalization of monetary policy and banking in Europe is worthy of your time. In other developments, more soft-print-SMP-speak from ECB, a classic verbal intervention. Given the rise in Spanish bond yields during the past couple of days, an understandable timing.

Previously on MoreLiver’s:

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US Opening News And Market Re-Cap – Ransquawk / ZH
Frontrunning – ZH
The Lunch Wrap – alphaville / FT
Emerging N.Y. headlines – beyondbrics /FT
Today’s front pages – presseurop
Daily press summary – Open Europe
  WSJ: Talks over disbursement of new tranche of Greek bailout delayed until October

Morning MarketBeat: Jobless Claims to Keep Fed on Watch – WSJ
Broker Note Briefing – WSJ
Morning Take-Out – NYT
AM Dear Dairy: Dead Markets – Macro and Cheese
Game ChangersMarc to Market
Rock-a-bye BabyTF Market Advisors

Pre-market Commentary – Marketwatch
Pre-Market Trading – CNNMoney
Pre-Market – NASDAQ
US Equity Preview – Bloomberg
Earnings & Events – The Street
MarketCurrents – Seeking Alpha

TV: Bloomberg, BBC
Debt crisis: live – The Telegraph
The Euro Crisis Blog – WSJ
Tracking Europe’s Debt Crisis – NYT
FX Options Analytics – Saxo Bank
European 10yr Yields and Spreads – MTS indices

French court to decide on EU fiscal treatyeuobserver
A verdict by French jurists, expected on Thursday or Friday, risks dealing another political blow to the EU's fiscal discipline treaty.

Euro-architect hints at Greek exiteuobserver
Former ECB chief economist and German central banker Otmar Issing has warned that the eurozone may split up - another voice in the chorus talking about a Greek exit from the common currency.

Monthly Bulletin Monthly Bulletin, August 2012ECB (pdf)

Statistics Pocket Book Statistics Pocket Book, August 2012ECB (pdf)

Heterogeneity in euro area financial conditions and policy implications ECB (pdf)

Assessing the financial conditions of the euro area private sector during the sovereign debt crisisECB (pdf)

Looking down the fiscal cliffASA
1 January 2013, the United States could be looking down the fiscal cliff of about US$600 billion of tax increases and spending cuts.  That is, if the congress fails to reach any compromise. (also two good charts from Goldman Sachs)

A Bipartisan Proposal for More Equity in Big BanksEconomix / NYT
 Simon Johnson: Highly leveraged financial institutions do not have the incentive to be careful; their executives get the upside when things go well, and the downside is someone else’s problem. Executives and traders in megabanks are paid based on their return on equity unadjusted for risk.

Much has changed since the credit crisis, but a lack of confidence remainsThe Telegraph
It was on this day five years ago that “the world changed”, according to Adam Applegarth.

Reflections on the crisis soundtrack of our livesalphaville / FT
Deutsche Bank: It’s hard to believe that its 5 years ago today that the financial world started to appreciate the magnitude of the problems that would be the soundtrack to our lives over the last 5 years.

(audio 17min) BizDaily: Biofuels and hungerBBC (mp3)
Are the makers of Biofuels undermining that most crucial resource: the global food supply? We debate the issues. And a Chinese internet company seeking global recognition via its Olympics coverage. And our regular Kenyan commentator looks at how the rising trade between Africa and China has also spurred the increased illegal smuggling in animal parts, like rhino and elephant horns.

World food prices rising in response to drought damage in the USSaxo Bank
The index jumped by 6.1 percent to 213.15 points following record rallies in key crops like corn, soybeans, wheat and sugar. The severe drought in the US and other parts of the world especially played havoc with the two sub indices sugar and cereals.

"RBS Algo Went Berserk"ZH
EURCHF peaked to a 5-month high of 1.20928 from the peg on Monday.

EM hard currency bonds: new highsbeyondbrics / FT
“Valuation is a relative concept. Yields on EM hard currency bonds at at record lows. But if you compare that to the alternative available – where else could you invest?”

Shiller P/E Ratios for Developed MarketsPragCap
Nomura: Currently, there is a significant difference between the valuations of US, global and European stock markets. At 16x, the global market is at the third decile (ie. cheap compared with history), whereas Europe at 11.4x is at its cheapest level since the 1980s apart from the immediate post Lehman bankruptcy period.

Kreikka käynnisti setelipainon - Saksalla ei huomauttamistaTalouselämä

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