US: Debt deal done – or the
need for one moved to February. Nice that the thing was solved for now, but not
nice that the circus will be coming back to town so soon after the last show.
Because it will be just the same in February. There are four Fed presidents
speaking today, so the taper-guessing is back in vogue. January seen the earliest,
but if the political mess continues and is not solved by that time, it might be
that the Fed will simply decide to postpone the tapering again.
Dagong downgrades US from A to A-, says “A debt crisis evolves into a political crisis, which in turn exacerbates
the debt crisis…Recurrence of the conflict over debt ceiling once again reveals
the US superstructure’s incapacity to solve national
debt crisis”
Bloomberg: The focus now shifts to
a new series of deadlines -- the first for budget negotiations with a Dec. 13
target -- that set up more rounds of political combat over taxes and spending
on programs including Social Security and Medicare. The deal funds the government
at Republican-backed spending levels through Jan. 15, 2014, and suspends the debt limit through Feb. 7.
Europe: ECB’s meeting will discuss the asset quality review
and the stress tests. We were promised a schedule and more information “in
second half of October”, so perhaps we will hear something soon.
Previously on
MoreLiver’s:
EUROPE
Let the Eurosceptics speak – Presseurop
Apparently, EU
politicians not only want people to think about the EU, they also want to
decide what they think. They should be more open to debate with Eurosceptics in
all layers of the population.
Euro Capitals Tighten Fiscal Leash as EU Starts
Austerity – BB
In Madrid, the government is paring spending on roads
and rails. In Rome, state property is to be sold off. In The Hague, lawmakers agreed to the second set of
extraordinary cuts in two years. Even with the 17-nation euro area projecting
economic expansion next year for the first time since 2011, policy makers are
keeping a fiscal leash on growth by maintaining austerity policies born in the
fight to save the euro.
Whether Ireland or any other EMU victim state can claw its way
back to viability depends on the actions of the ECB
Who said what on the euro? – Francesco
Papadia / Money Matters
I commented the post.
UNITED STATES
The T-Bill Market Is Beginning To Brace For The
"Hard" March Debt Ceiling – ZH
The deal will reopen
the government today and increase the debt ceiling. It is, however, only a
temporary relief, as the bill will fund the government until 15 January and raise
the debt ceiling until
7 February. Hence, we
can look forward to another round of negotiations early next year.
Long live the great US
Congress – Our take on the market impact – Nordea
The damage has been done, political wrangling will continue.
The damage has been done, political wrangling will continue.
Above the noise: Done deal, can we please move
on now? – TradingFloor
The U.S. Congress on
Wednesday approved an 11th-hour deal to end a partial government shutdown and
pull the world's biggest economy back from the brink of a historic debt default
that could have threatened financial calamity.
Congress Vote Ends Impasse to Be Revisited in
January – BB
The focus now shifts
to a new series of deadlines -- the first for budget negotiations with a Dec.
13 target -- that set up more rounds of political combat over taxes and
spending on programs including Social Security and Medicare. The deal funds the
government at Republican-backed spending levels through Jan. 15,
2014, and suspends the
debt limit through Feb. 7.
The biggest threat to the economy? Washington – Reuters
The
governance-by-crisis model in Washington may prompt businesses to sit on their cash
rather than investing in growth.
In a lengthy
statement, Dagong – which cut the U.S. rating to A-minus from A, and maintained a
negative outlook – described the partial government shutdown as “an inevitable
outcome” of the U.S.’s long-term failure to pay its excessive debts, and a substantial
deterioration in its solvency.
Select two countries
with the worst performing currencies (against USD) over the past 4 months and
go long equity indices of those two countries. Now select the two best
performing currencies and short the indices of those countries (to the extent
that's possible). Repeat the exercise once a month.
Hardy: What next for the US dollar? – TradingFloor
FINNISH
Eespäin,
eespäin tiellä taistojen – Pauli
Vahtera / Libera
Harmaan
talouden määrästä iso riita – HS
Professori Matti Virén tyrmää harmaan talouden
asiantuntijaksi profiloituneen Markku Hirvosen laskelmat.
USA:lle
luottoluokituksen alennus – Juhani
Huopainen