The blog is still in a holiday mood, but some interesting picks:
Previously on MoreLiver’s:
MORNING REPORTS
Italy's
bond auction should show the way to longer-duration financing and less drama
next year, while US Chicago PMI and Pending Home Sales give early indications
of what December's data will likely show.
European
markets are expected to open mostly higher Friday. Markets await the outcome of
a slew of meetings held by US lawmakers to avert the US fiscal cliff. Traders are also
keeping an eye on French GDP and US pending home sales data later
today.
EUROPE
Behind the Scenes in Brussels: EU Summit Reveals a
Paralyzed Continent
– Spiegel
What
happens behind closed doors at an EU summit, when European leaders are among
themselves? SPIEGEL has reconstructed the negotiations at the most recent
meeting in Brussels in December based on documents and accounts
given by numerous sources. It was a summit of hopelessness.
A Second Chance for European Reform – Hans-Werner
Sinn / Project Syndicate
The ECB has
calmed the markets with its promise of unlimited purchases of eurozone
government bonds, because it effectively assured bondholders that taxpayers and
pensioners in the eurozone’s still-sound economies would, if necessary, repay
them. This respite offers an ideal opportunity to push forward with reforms.
The German
government and opposition are pledging higher benefits for pensioners, families
and the long-term unemployed ahead of elections next year, but Finance Minister
Wolfgang Schäuble is secretly planning cutbacks to prepare for a weakening
economy and possible fallout from the euro crisis.
Euro doomsayers adjust predictions after 2012
apocalypse averted –
Reuters
Back in
May, as the euro zone veered deeper into crisis, Nobel Prize-winning economist
Paul Krugman penned one of his gloomiest columns about the single currency, a
piece in the New York Times entitled "Apocalypse Fairly Soon".
ECB's Nowotny cautiously optimistic about 2013 – Reuters
Measures
taken this year by policymakers to address the economic crisis in the euro zone
allow for cautious optimism regarding 2013, European Central Bank ratesetter
Ewald Nowotny said on Friday.
The short
and long term technical picture, as well as attractive valuation of European
equities, suggest that these stocks are poised for significant gains and
outperformance in the medium term. If I had to make one forecast for 2013, this
would be my favorite long for the coming year.
The Belgian
capital is the heart of the EU power machine, where dozens of journalists try
to cover the activities of all the institutions. But as an Australian newcomer
founds out, they have too much information and too little time to make sense of
what’s going on.
El País: delusions of grandeur – presseurop
A success
story of the transition to democracy and a showcase for Spanish journalism,
today the left-wing daily is struggling to cope with huge losses, which have
even affected its editorial line — a crisis exacerbated by the newspaper’s
managers who have refused to take responsibility for their actions. Excerpts.
PIIGS
Evictions Become Focus of Spanish Crisis – Spiegel
After a
record number in 2012, evictions in Spain have become the symbol of a crisis
that shows no signs of improving. Next year isn't likely to be any better, but
with more attention now being paid to those losing their homes, relief in the
form of legal reform may soon be on the way.
Social Trap in Spain: Mortgage Nightmare;
Why Spain (or Germany) is Guaranteed to Leave Euro – Mish’s
Some pigs can fly – Nordea
What do Portugal, Ireland and Italy have in common? Their government
bond markets have all produced a return of more than 20% in 2012.
Monti tables political manifesto, comeback plan
still unclear – euobserver
Outgoing
Prime Minister Mario Monti has tabled his own political manifesto, but his
comeback plans are unclear as he remains reluctant to join any political force
ahead of the February elections.
The
European Commission is out with its latest assessment of Portugal’s €78bn bailout. But buried in the
report is a two-page box that raises the intriguing question of whether the
bailout is actually bigger than leaders have disclosed.
OTHER
28-Dec: Euro Winds Down – Marc to Market