Slight recoil in risk markets - SPX and EURUSD coming down a bit and trying to test support levels, and discussion is again moving to the political situation in US (i.e. can the congress solve the fiscal cliff or not - estimated impact of no solution is 5%/GDP). Again I remind you that a dip from current levels will incite a round of comments from the talking heads, and the current dip should be eyed as a buying opportunity. Spanish 10-year bond rose to near 6%, and that is probably the critical level to watch.
Previously on MoreLiver’s:
17.9. US Close: Realization (I really liked this)
Roundups & Commentary
US Opening News And Market Re-Cap –
Ransquawk / ZH
Frontrunning
– ZH
Overnight
Sentiment – DB
/ ZH
The Lunch
Wrap – alphaville
/ FT
Emerging
N.Y. headlines – beyondbrics
/ FT
Today’s
front pages – presseurop
Daily press
summary – Open
Europe
Germany wants separate body within the ECB to have final word on banking
supervision
Morning
MarketBeat: FedEx’s Ominous Bell – WSJ
Broker Note
Briefing – WSJ
Morning
Take-Out – NYT
AM Dear
Dairy: Pullback – Macro
and Cheese
Will the
BOJ Do Whatever it Takes? – Marc
to Market
– TF Market
Advisors
US session ahead
Pre-market
Commentary – Marketwatch
Pre-Market
Trading – CNNMoney
Pre-Market
– NASDAQ
US Equity Preview – Bloomberg
Earnings
& Events – The
Street
MarketCurrents
– Seeking
Alpha
Reference
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
EUROPE
We’ll settle this internal devaluation
question quicker than we thought – alphaville
/ FT
One of the criticisms of “internal devaluation”
is that it’s a slower method of improving competitiveness than an old fashioned
currency devaluation. There are also questions about whether it even works.
How Germany can avoid wealth losses if the Eurozone breaks up: Limit conversion to
German residents – voxeu.org
Paul De
Grauwe, Yuemei Ji: Germany’s large accumulation of TARGET2 claims has created fear that Germany stands to lose vast amounts of wealth if the Eurozone were to break
down. After clarifying the issues using basic economic principles, this column
shows that Germany could avoid large wealth losses by restricting euro-to-mark conversions
to German residents
Blogs review: The welfare state during times of
economic crisis – bruegel
This review focuses on the perspectives for
welfare states, particularly in Europe, under conditions of government budget consolidation.
Danish Central Bank readies to go solo – Nordea
(pdf)
Within the next three months the Danish central
bank will make its first independent rate hike since 2008.
USA
US Update: Fiscal cliff moves into focus – Nordea
(pdf)
Winners and Losers from Monetary Policy – FED
/ The Big Picture
The Fed seeks to support the economy as a
whole, but some redistributional effects are unavoidable.
OTHER
QE3 and OMT: No panacea but window of
opportunity! – Saxo
Bank
Three big
open issues: Fiscal cliff, US financial regulation, Eurozone
When Money Dies – ZH
Bob Janjuah
/ RBS: The Fed and the ECB are directing and
attempting to orchestrate the grossest misallocation and mispricing of capital
in the history of mankind.