First day of the EU summitteering confirmed the schedule for the common supervisor part of the banking union. This is a prerequisite for bailing out the Spanish banks, but it will be a long way to that result, and there are plenty of parties ready to change their opinion later. Markets nervous after Google's blunder.
Previously on MoreLiver’s:
The 6am Cut
London – alphaville
/ FT
Emerging Markets
Headlines – beyondbrics
/ FT
Reference
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
MORNING BRIEFINGS
Answering
the question about the EUR's longer-term performance, may require looking
beyond its underlying fundamentals
It's day
two of the EU summit in Brussels, and data is due from the US, Canada and Germany. German PPI is seen lower
month-on-month due to Eurozone economic weakness, while in the US, existing home sales may not match
other recent housing surprises.
Market Preview: Eyes on German Producer Prices – Saxo
Bank
European
markets are expected to open in the red Friday on the back of dismal US corporate earnings. Investors are
keeping an eye on the second day of the EU leaders meeting, plus German PPI and
US existing sales data due later today.
Danske Daily – Danske
Bank (pdf)
Banking
union dominated talks at EU summit
– leaders agree on timetable for
the single supervisory mechanism. Disappointing earnings from Google and
Microsoft are weighing on stock markets. EUR/USD moved lower on comments by
Merkel and Hollande ahead of EU summit that showed disagreement on the pace
forward. Market movers today: European council meeting, US existing home
sales, earnings reports
Aamukatsaus – Nordea
(pdf)
Huippukokoukseen anti jäi odotetusti epämääräiseksi * Uudet
työttömyyskorvaushakemukset korjasivat edellisviikon laskua USA:ssa * USDJPY
kuudentena perättäisenä nousupäivänä korkeimmilleen 2 kuukauteen
Aamukatsaus – Tapiola
(pdf)
Tuloskausi Helsingin pörssissä kiihtyy ja aamulla raportoi
jo viisi yhtiötä. Katso tuoreimmat kommentit aamukatsauksen tuloskalenterista. Markkinan
suunta: Markkinnan nousu pysähtyi eilen USA:n odotettua heikompiin
työttömyyshakemuksiin. EU:n johtajat pyrkivät luomaan yhteisen pankkivalvonnan
vuoden loppuun mennessä. Tarkoituksena mahdollistaa pankkien suora
pääomittaminen pysyvästä vakausrahastosta. 3Q12-tuloksia aamulla: hyvät
tulokset: Huhtamaki, Revenio Group. Neutraalit tulokset: Elisa, Stonesoft. Heikot
tulokset: Fortum.
Morning
Briefing (EU/US): All trees, no wood – BNY Mellon
Whether or not Spain can secure ECB funding, how will it repay the principal?
Markkinakalenteri – Nordnet
Whether or not Spain can secure ECB funding, how will it repay the principal?
Markkinakalenteri – Nordnet
Markkinakalenteri – Taloussanomat
EUROPE
1) Domestic Bank holdings of Spanish bonds have
surged... 2) the ban
on naked CDS… 3) Lower
spreads reflexively mean lower probability of Rajoy saying "Si"… 4) Recency bias is
incredible - we have seen 100-plus percent rises in Spanish risk followed by
35-plus percent retracements a number of times and the current level of Spain
risk is still above LTRO-inspired crisis levels.
EUROPE: SUMMIT
EU Aims for Euro-Area
Bank Supervision to Start in 2013 – BB
European leaders committed to their goal of
establishing a euro-area bank supervisor by year-end, opening the prospect of
direct aid to Spain’s banks.
European Union leaders took a big stride towards
establishing a single banking supervisor for the euro zone, agreeing it would
enter into force next year, opening the way for the bloc's rescue fund to
inject capital directly into ailing banks.
EU Summit 1st day as
expected – Nordea
EU bank supervision
to come to life next year – euobserver
EU leaders have set a launch date of "a few
months after" 1 January
2013 for a eurozone bank supervisor, opening the door for
direct EU bailouts of bad banks.
USA
Citi On The Election:
"Ignore Pundits & Partisans; HuffPo Data Says Obama" – ZH