WEF risk report published, ECB speculated possibly considering inflation targeting.
Previously on MoreLiver’s:
Roundups & Commentary
US Opening News And Market Re-Cap – Ransquawk / ZH
Frontrunning – ZH
Overnight: Ready, Steady, AlGOa – ZH
The Lunch Wrap – alphaville / FT
Emerging N.Y. headlines – beyondbrics / FT
Today’s front pages – presseurop
Daily press summary – Open Europe
Morning MarketBeat: No Fanfare for This Dismal Earnings Season – WSJ
Broker Note Briefing – WSJ
Commentary: Yen Gains Main Feature in Consolidative Tuesday – Marc to Market
US session ahead
Pre-market Commentary – Marketwatch
Pre-Market Trading – CNNMoney
Pre-Market – NASDAQ
Earnings & Events – The Street
MarketCurrents – Seeking Alpha
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
Economic Calendar – Forexpros
The latest way European banks could (still) mess everything up – Quarz
Morgan Stanley’s Global Head of FX Strategy, Hans Redeker, foresees a problem. If some banks leave the LTRO earlier than others, the ones that stay behind might feel pressured to pay up before they’re really ready
Eurozone meltdown 'cannot be discarded' – The Telegraph
A dangerous mix of fragile economies and extreme weather has increased global risks, with a meltdown in the eurozone still a threat, the World Economic Forum said.
Berlusconi aims for Italy finance minister job – euobserver
Italy's Silvio Berlusconi has said he will join forces with the Northern League in next month's elections, but does not want to be Prime Minister again.
Price level targeting – next ECB easing step – Nordea (pdf)
A temporary price level target path would signal that the ECB will keep interest rates at the current very low level for longer and specifically beyond the point where medium-term inflation is projected to return to 2% and until prices return to the level path consistent with 2% inflation on average.
Dutchman likely to head euro zone finance ministers: officials – Reuters
Dutch Finance Minister Jeroen Dijsselbloem is likely to be named the next chairman of euro zone finance ministers in January, taking over a key role in managing the bloc's debt crisis, officials said on Tuesday.
Euro-Area Economic Confidence Increases More Than Estimated – BB
Riksbank minutes: A 50 bp rate cut was considered – Nordea
Strengthens our view that the Riksbank will cut rates again in February by 25 bp.
More miserable jobs numbers for Europe – alphaville / FT
Businesses hopeful in euro zone, but joblessness rises – Reuters
Business morale in the euro zone improved again in December, but unemployment hit a new record and households held back from spending before Christmas, suggesting the bloc's emergence from recession will be slow.
Something is afoot in Chinese shadow finance – alphaville / FT
Although the new Chinese leadership seems so far unenthused about major reforms, a few strategists have detected signs in the past couple of weeks that the country’s authorities are preparing to crack down, somehow, on shadow financing.
Morning Briefing (EU/US): In the land of the blind ... – BNY Mellon
GBP has its problems, certainly, but it may prove to easier on the eye than its key European rival
Nordea Risk Perception Index Week 2 – Nordea (pdf)
Low rates, low realized and implied vol and continued downward pressure on risk premiums for a longer period. (summary)
No free lunch for central bankers – Humble Student
In conclusion, central bankers can't completely eliminate volatility and their policies come with costs. In the case of Europe, the ECB has traded Eurogeddon for a recession. In general, market volatility has risen and become far more sensitive to headline news.
Global Risks 2013 8th ed. – World Economic Forum
Three risk cases: 1) Testing Economic and Environmental Resilience 2) Digital Wildfires in a Hyperconnected World 3) The Dangers of Hubris on Human Health