Quote of the Day…notice what the Japanese yen has been doing
lately. As long as I can remember, buying USDJPY around 80-85 and selling around
120-130 has been an easy way to make money. Currently 80.35, next stop 83. MoreLiver
on 25-Oct-2012
Previously on MoreLiver’s:
Current Specials
Special: US Employment Report (updated)
Special: ECB Watch (updated)
Special: Bailout of Cyprus (updated)
Roundups &
Commentary
Frontrunning – ZH
Overnight: Levitation Returns As The Elephant In The Room Is Ignored – ZH
The Lunch Wrap – alphaville
/ FT
Emerging N.Y. headlines – beyondbrics / FT
Daily press summary – Open Europe
Morning MarketBeat: – WSJ
Morning Bond Update – TradingFloor
Macro Overview – Marc to Market
Morning Briefing
(EU/US) – BNY
Mellon
The curious indifference of US officials
towards Japanese currency manipulation
EUROPE
Fiscal regimes in the EU – ECB (pdf)
Working paper no. 1529
by António Afonso and Priscilla Toffano
Danish Mortgages IMF Condemns as Risky Should
Stay, Rohde Says – BB
Denmark doesn’t need
to phase out interest-only mortgages identified by the International Monetary
Fund as risky and should instead ensure banks only give the loans to borrowers
who can afford them, central bank Governor Lars Rohde said.
European investor
confidence declined more than economists forecast in April, after the bail- in
of Cypriot bank depositors rattled financial markets, the Sentix research
institute said today.
David Cameron will
take his case for a more flexible European Union to Spain, France and Germany this week, seeking the alliances he needs to
renegotiate Britain’s status within the 27-member bloc.
PIIGS
The question isn’t
whether Germany’s policies are correct. It is whether they will produce the same
outcomes in different economic and political environments. To see that they
don’t, you need to ignore Greece and look at its neighbor, Bulgaria.
Portugal will carry out more spending cuts this year
and ruled out further tax increases after the Constitutional Court blocked a plan to suspend a monthly salary
payment to state workers and pensioners.
Cyprus’s bailout threatens to slow eastern European growth through trade and
banking links if it sparks capital flight from the most indebted euro-area
nations, the European Bank for Reconstruction and Development said.
ECB
The ECB’s non-standard monetary policy
measures: the role of institutional factors and financial structure – ECB (pdf)
Working paper no. 1528
by Philippine Cour-Thimann and Bernhard Winkler
Contrary to what is promoted by the EU’s
central bankers, higher taxes tend to coincide with lower deficits and low debt – Europp
/ LSE
BOE Offers Lending Template to ECB – WSJ
Will the Cypriot
banking crisis force the ECB into its own version of the U.K.'s Funding for Lending scheme
UNITED STATES
A Value rally, or defensive sector rally? – Humble
Student
The upcoming Earnings
Season will give us the best answer to the question of whether the real
leadership is defensive stocks, which suggests caution, or Value stocks, which
could be neutral to bullish.
ASIA
Hunting for signs of
cyclical recovery in Chinese manufacturing? Look at inventories, says Standard
Chartered Bank.
China's banks are feeding
unwanted assets into the country's "shadow banking system" on an
unprecedented scale, reinforcing suspicions that bank balance sheets reflect
only a fraction of the actual credit risk lurking in the financial system.
Will China have a financial crisis? And if so, would
Chinese people be any worse off? The answers are not found in the country’s
rapidly rising levels of debt, but in the potential for chaos when things go
wrong.
OTHER
“Sell in May” Debunked? – MarketSci
Key Events And Issues In The Week Ahead – ZH