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Tuesday, January 8

8th Jan - US Open: European risk coming back

WEF risk report published, ECB speculated possibly considering inflation targeting.

Previously on MoreLiver’s:                  

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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 upQuarz
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 jobeuobserver
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 stepNordea (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: officialsReuters
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 consideredNordea
Strengthens our view that the Riksbank will cut rates again in February by 25 bp.

More miserable jobs numbers for Europealphaville / FT

Businesses hopeful in euro zone, but joblessness risesReuters
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 financealphaville / 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 2Nordea (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 bankersHumble 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

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