- Angela Merkel casts doubt on saving Greece from financial meltdown (Guardian)
- Germany Rejects ‘Indecent’ Call to ECB on Greece, Meister Says (Bloomberg)
- Obama Calls for Higher Taxes on Wealthy (Bloomberg)
- Fed set to push back timing of eventual rate hike (Reuters)
- Recession Looms As UK Economy Shrinks By 0.2%, more than expected (SKY)
- King Says BOE Can Increase Bond Purchases If Needed to Meet Inflation Goal (Bloomberg)
- When One Quadrillion Yen is not enough: Japan's first trade deficit since 1980 raises debt doubts (Reuters)
- Sarkozy to quit if he loses poll (FT)
- U.S. Shifts Policy on Nuclear Pacts (WSJ)
- ECB under pressure over Greek bond hit (FT)
- Fed Holds Off for Now on Bond Buys (Hilsenrath)
- Bonds Show Return of Crisis Once ECB Loans Expire (Bloomberg)
- Greek Debt Talks Enter Third Day After ‘Substantial’ Discussions (Bloomberg)
- Sharp clashes at Republican debate ahead of vote (Reuters)
- Lagarde Joins Warning on Fiscal Cuts Before Davos (Bloomberg)
- Investors exit big-name funds as stars fail to shine (Reuters)
- Payday lenders plead case to consumer agency (Reuters) - the EFSF included?
- EU Toughens Fiscal Pact Bowing to ECB Objections, Draft Shows (Bloomberg)
- Minister Urges Japan to Use Strong Yen (FT)
- China Eyes Pension Fund Boost for Stock Market (Reuters)
- China Manufacturing Contraction Boosts Case for Easing: Economy (Bloomberg)
- Italy Is Biggest Risk to Euro, Says Fitch (WSJ)
- Greek Bailout in Peril (WSJ)
- Swiss Currency Test Looms for SNB’s Jordan in Race to Replace Hildebrand (Bloomberg)
- Daley to Depart as Obama Shifts Strategy From Compromise to Confrontation (Bloomberg)
- BOE Stimulus Expansion May Not Be Enough to Revive U.K. Recovery, BCC Says (Bloomberg)
- Geithner in China to Discuss Yuan, Iran (Bloomberg)
- China Won’t See Hard Landing in 2012, Former PBOC Adviser Yu Yongding Says (Bloomberg)
- Measures to boost China financial markets (China Daily)
- Obama Panel to Watch Beijing (WSJ)
And now a trade war has broken out. Politicians, have a word with your corporate sponsors.
Modest beat with prices paid in line with expectations at 45, New Orders rising from 52.4 to 56.7, but the employment index mirroring the Chicago PMI decline and dropping from 53.5 to 51.8: taken in conjunction with today's Initial Claims, probably not the best way to enter the NFP number, yet we are somehow convinced the final NFP print will be 4 std devs above the mean Wall Street consensus. In other news, the headline number is the highest since June. Curiously, and as always happens in strange times, exports increased and imports decreased. One wonders just how realistic an export surge to imploding Europe or China really was in the past month really was.
“Japan’s economy is likely to continue to face a severe situation,” said the Governor of the BoJ. He blamed the euro crisis and the strong yen. Bland language, ugly meaning.
FX Concepts' John Taylor has not had a good year. A month ago, talking to Bloomberg he admitted that "What’s really frustrating is that we’re supposed to do well in a lousy world market,” said John Taylor, the founder of New York-based FX Concepts LLC, the world’s largest currency hedge fund. Taylor said in an Oct. 19 interview in London that he has lost 12 percent this year and assets under management fell to $5 billion from as much as $8 billion. "We’re doing very badly." Naturally that is to be expected: after his banner year last year, and doing what is logical in 2011, it is not surprising that he did not anticipate the level of central bank involvement, and the resulting surge of the EURUSD in the past month. Either way, he very bearish stance on the EUR will soon be vindicated. In a brand news interview with Bloomberg he says that the the Euro has entered a "death struggle" and that it is "really worse than I could have dreamed it being." Logically, to every seller there is a buyer. To wit: "What’s stupid is that the ECB is holding it up. Why are they holding up the euro? One of the problems, besides the ECB, is the banks are shrinking, and the banks are selling all of their offshore assets and bringing them back to Europe. That means in fact there is a persistent buyer of euros and it’s their own financial institutions." All this, and more in the full interview below with transcript.
Alabama immigration law, a Mercedes-Benz executive from Germany, and Republican bifurcation on illegal immigrants: the outcome was ... flip-flopping.
Toyota and Honda are planning to export U.S.-made vehicles to Korea. But to what banana-republic levels will the dollar and real wages have to sink before U.S. manufacturing is competitive with China?
Down 20% from September 2006. Toyota and Honda got brutally slammed. But don't blame post-earthquake inventory shortages. They have been resolved. It's a shift in the market.
All you need to read. (a little late today)