Previously on
MoreLiver’s:
Roundups and
Commentary
News – Between
The Hedges
Markets – Between
The Hedges
Recap – Global
Macro Trading
The Closer – alphaville
/ FT
Roundup – A
View From My Screens
Tomorrow’s Tape: 3M, Facebook Lead Earnings Parade – WSJ
US Summary:
Monster ramp sends stocks vertical in last hour – ZH
Reference
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
EUROPE
Taking A Man At His
Word – Fistful
of Euros
Especially now the ECB has become the in-tray into
which all the politically unpalatable and thus unresolvable issues ultimately
get dumped. The most recent example of this is the suggestion that Spain applying
for a precautionary credit line would be the ideal solution to the country’s
current dilemma since no money would actually need to change hands, making the
move easier to sell to the German parliament.
TARGET losses in
case of a euro breakup – voxeu.org
Hans-Werner Sinn: As with the Eurozone crisis, the
TARGET debate shows little sign of disappearing quietly. This column argues
that the ECB has tolerated, if not created, huge TARGET imbalances that impose
a particular risk on the northern countries should the euro break up. It calls
for a fairer and more sustainable system – and suggests the US model may
offer some guidance.
It’s taken me the entire weekend to digest just how
underwhelming the latest EU summit was. I spent much of Saturday searching for
an important announcement that I must have missed, but alas I couldn’t find
one.
Buba still
unimpressed with ECB – alphaville
/ FT
The Bundesbank used its latest monthly report to
reiterate its criticism of ECB bond-buying activities, warning that it delays
the necessary adjustment process in the euro region.
Spanish downgrade
threat averted, but for how long? – MacroScope
/ Reuters
I am now persuaded to accept that the eurozone’s
political establishment is ready to build the necessary institutions for a
monetary union. That was not the case one year ago. What is still missing is
the political will to resolve the actual crisis…What a banking union will do is
ensure that the monetary union becomes sustainable. But it has to survive
first.
The financial
transaction tax faithful march on – Brussels
blog / FT
It is largely a formality. But it means the 11 EU
countries that want the levy will be one procedure closer to setting up their
own Tobin tax. Such breakaway groups are considered a last resort under EU
rules, so any enhanced cooperation must clear various legal hurdles, including
proof that a pan-EU deal is impossible for now.
“Greece has done
all that without achieving anything,” said Barbara Ridpath, chief executive of
the International Centre for Financial Regulation in London, who
headed Standard & Poor’s ratings activities in Europe until
2008. “That’s the sad thing.”
USA
FOMC Preview –
Calculated Risk – Calculated Risk
The S&P 500 has been a proxy for the risk-on
trades. The strong correlation between some currencies and the S&P 500, or
in the yen's case, the deep inverse correlation was widely understood as a sign
of the importance of the risk-on/risk-off matrix that seem to drive asset
markets. However, the snapshot of the rolling 60-day correlations presented
here suggest some easing of the "RoRo" trade.
S&P 500 Sector
Weightings – Bespoke
Below is an updated look at S&P 500 sector
weightings. As shown, Technology remains
as the largest sector of the S&P 500 at 19.27%
What Led the Late
Turnaround? – Bespoke
So what led the late-day charge higher? Below we highlight how the 10 S&P 500
sectors performed through 3 PM as well
as in the final hour of trading.
Risk Appetite At
Extreme Highs Signals Risk-Off To Come – ZH
Stocks Eke Out Gains – WSJ
OTHER
What the South Sea Fight is Over; World Correlation Chart; China Wealth Concentration and Capital Flows – HistorySquared
IN FINNISH
Merkel tunnustautuu keynesiläiseksi – eikö
kukaan suostu näkemään huoneessa olevaa norsua? – tyhmyri
Suomi on Pihalla – Juhani
Huopainen / US Puheenvuoro