Quote of the Day: "We’re not
against some business being done in London, but the
bulk of the business should be under our control. That’s the consequence of the
choice by the UK to remain
outside the euro area." – Christian Noyer, the very French head of central bank.
Previously on MoreLiver’s:
Roundups &
Commentary
Frontrunning – ZH
Overnight: Fiscal Cliff Headline Manic Depression Set
To Continue – ZH
The Lunch Wrap – alphaville
/ FT
Emerging N.Y. headlines – beyondbrics
/ FT
Today’s front pages – presseurop
Daily press summary – Open Europe
Morning MarketBeat: December Rally No Sure Thing – WSJ
Broker Note Briefing – WSJ
FX Drivers
in the Week Ahead – 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
Calm after the storm – MacroScope
/ Reuters
Is the
problem solved? Absolutely not. But has Germany achieved its goal of delaying any
disasters, or really tough decisions, until after its elections in the Autumn
of 2013? Almost certainly. So we could (famous last words) be in for a period
of relative calm on the euro zone crisis front.
Bank
supervisory authorities that are not sufficiently independent, and are too
closely associated with the political authorities, are generally under pressure
to delay the identification of insolvent banks, for the fear that taxpayers
would get upset. The problem thus tends to be postponed, and the cost to the
taxpayer rises. The experience of the recent crisis has shown that taxpayers
have paid most in countries where supervision was less independent and where
the political authorities are most closely associated with the banking system.
Is There a Case for Optimism About the
Eurozone? – naked
capitalism
Financial
Times’ John Dizard’s argument that things are going to get better in the
Eurozone.
GREECE
Merkel Signals Debt Write-Off Possible as
Buyback Begins – BB
Merkel hints at future 'haircut' on Greek debt – euobserver
Greece Announces Terms Of Bond Buyback, Repuchase Prices Higher Than
Government Indicated Previously – ZH
UNITED STATES
Blogs review: an update on the fiscal cliff – bruegel
On January
1, unless preventive legislation is enacted, the U.S. economy will be gripped by a fiscal
contraction equal to around 4% of GDP. The lead negotiators for the White House and
Congressional Republicans used the Sunday morning news to introduce their
opening bids and defend their positions. Beyond the back and forth political
process, the ongoing discussion poses the question of the optimal timing for
fiscal contraction in a recovering economy.
ASIA
Japan’s election on December 16 is going
to be a doozy. It’s probably the first election where the role and independence
of the central bank is a key issue, says Gavyn Davies. There’s also rather a
lot of yen short positions that are riding, at least in part, on the outcome
November
marked the first time in over a year that both the official China manufacturing PMIs and the
HSBC/Markit Economics PMIs were above 50.
OTHER
Morning Briefing (EU/US): Dutch disease – BNY
Mellon
Non-mining
sectors continue to feel the pain in Australia
What happens after the Santa Claus rally? – Humble
Student