WEF risk report published, ECB speculated possibly considering inflation targeting.
Previously on MoreLiver’s:
Frontrunning – 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
Reference
Debt crisis
live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
Economic
Calendar – Forexpros
EUROPE
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.
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.
MACRO DATA
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.
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.
ASIA
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.
OTHER
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