EUROPE
EU Banks Shed $1.1
Trillion in Assets as Debt Rules Bite – BB
Lenders reduced assets weighted for risk by 817 billion euros ($1.1
trillion) between December 2011 and June 2013, the European Banking Authority,
the bloc’s top banking regulator, said in a report. From EBA: EU-wide
transparency exercise and Risk
dashboard.
A few surprises as
the new German cabinet takes form – Open
Europe
Over the weekend, following the 'yes' vote among the SPD membership, the
composition of the new German cabinet was announced – almost 3 months after the
election.
Satyajit Das: The German-led strategy shows little progress and is
unlikely to resolve the crisis
British inflation in
six charts – Money
Supply / FT
EUROPEAN CENTRAL BANK
ECB's Draghi worried
by euro zone bank resolution plan – Reuters
Latest plans to wind up failing euro zone banks may be overly
complicated and inadequately funded, Draghi said on Monday.
ECB executive board
candidates – Danske
Bank
The ECB needs a successor for executive board member following Jöerg
Asmussen’s departure. Among the top candidates are the Bundesbank’s vice
president, Sabine Lautenschläger, president of the Halle Institute for Economic
Research, Claudia Maria Buch and president of BaFin (the German financial
supervisory authority), Elke König.
UNITED STATES
FEDERAL RESERVE
US Dollar Risks And
The Four Fed Surprises – ZH
From the odds of a taper to adjusting forecasts and from
forward-guidance communication to the chances of a cut in the IOER, the FOMC
meeting in the week ahead presents upside and downside risks to the dollar in
the near term; even if UBS believes the longer-term will see USD strength
against both the EUR and JPY.
The Fed might taper this
week - everything you need to know – WaPo
Will the Fed taper
tomorrow or wait until March? – TradingFloor
The Fed announces on
Wednesday if the economic data merits a tapering of the monthly bond purchases.
Odds of Santa-taper have increased, according to the latest polls. But does it
really matter whether the taper comes now or in three months?
Do Investors Know
Something the Markets Don’t – WSJ
Curiously, it appears that many investors do not share analysts’
expectations for a move just yet.
OUTRAGEOUS PREDICTIONS FROM
SAXO BANK
With US Congress
scheduled to perform Act II of its 'how to disrupt the US economy' charade in January, investment,
employment and consumer confidence will once again suffer.
Nasty hangover for
tech's ‘Fat Five’ – TradingFloor
A small group of
technology stocks trade at a huge premium of about 700 percent above market
valuation, almost defying the 'Newtonian laws' of financial markets. These
stocks are what we call the 'Fat Five' of the technology sector.
Soviet-style economy
makes a comeback – TradingFloor
In 2014, deflation and
a lack of growth will create panic among policymakers, leading the EU
Commission to table a working group that will focus on different wealth taxes
and herald a return to a Soviet-style economy.
Brent crude to drop
to USD 80/barrel – TradingFloor
With non-Opec supply
expected to rise by more than 1.5 million barrels per day and the potential for
another two million arising as disruptions in Libya and sanctions against Iran ease, the global market will become awash with
oil.
CAC 40 drops 40% on
French malaise – TradingFloor
Housing prices in France finally make like their Dutch counterparts did
in 2012 and execute a swan dive, pummelling consumption and confidence, while
the CAC 40 falls by more than 40 percent as investors head for the exits.
OTHER
Emerging Markets
Briefer - December 2013 – Danske
Bank
The picture is not the same for all countries in the world – and hence
not the same for all central banks in the world. Hence, we are likely to see
further monetary policy divergence in 2014 and this is likely to have
significant implications for the global currency markets. 2014 will again be a
year where the major currencies cross trade on relative monetary policy more than
anything else.
Why Have No
High-Level Executives Been Prosecuted? – NYBooks
Tools Help Investors
Wade Through All the Chatter on Twitter – WSJ
They filter tweets and help investors draw conclusions about where the
market is headed
FINNISH
Suomi elpyy rakenteellisten ongelmien
varjossa – Handelsbanken
Talouden
elpyminen on ulkoisen kysynnän varassa, sillä yksityisestä kulutuksesta tai
investoinneista ei ole kasvun ajuriksi, ja kireä finanssipolitiikka jatkuu.
Ulkoisen kysynnän näkymät ovat kirkastumassa, mutta rakenteelliset ongelmat
rajoittavat talouden kasvuvauhtia tulevina vuosina.
Suhdannekatsaus joulukuu 2013 – Danske
Bank
"Näköpiirissä
ei ole samanlaista kasvupyrähdystä kuin laman jälkeen 1990-luvulla" – TE
Suomen
talous ponnistaa taantumasta vaivalloisesti – HS
Suomen
talouden korpivaellus jatkuu – AP
Näkemys
talouskasvusta synkkeni – TalSa