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Authorities around the world have begun moving against anti-capitalist protesters, with police in the US and Switzerland clearing camps from their cities, reports the FT. In the UK, the City of London Corporation relaunched legal action against protesters camped outside St Paul’s Cathedral.


Negotiators for Greek debt holders have offered to swap their bonds for new ones worth half their current face value, but only if the new bonds contain high interest rates and have extra incentives, including annual payments if Greece’s economy recovers.


(A familiar headline but…) George Osborne is to set out in mid-December detailed plans to shake up Britain’s banking sector, setting in train what is likely to be a detailed consultation with banks over the erection of a firewall between retail and investment operations.


German frustration over Britain’s approach to the eurozone crisis erupted on Tuesday after a close ally of Angela Merkel accused the UK of selfishness just days before a meeting between the two countries’ leaders in Berlin,



Eurozone bond markets suffered a mass sell-off on Tuesday as investor fears spread beyond Italy and Spain to triple A-rated France, Austria, Finland and the Netherlands, reports the FT. The premium that France and Austria pay over Germany to borrow rose to euro-era records of 192 basis points and 184bp respectively,


Citigroup is planning to cut 900 jobs in its securities and banking division and may cut a total of more than 3,000 in response to the global economic slowdown that has hit the financial sector hard, according to people familiar with the situation,


The eurozone economy managed only modest growth in the third quarter of this year, with a rebound in Germany and France failing to dispel fears of a looming recession across the 17-country region, reports the FT.


Plans to ban sovereign credit ratings in “exceptional circumstances” <>  have been shelved by Europe’s top financial regulator after he came under pressure to retreat from the controversial measure to rein in the agencies that issue the assessments of national financial strength. Michel Barnier, the European internal market commissioner, admitted that he had to bow to objections from his fellow European Union commissioners but insisted the power to suspend ratings was never “the main measure” in his reform package.


Far from benefiting from being outside the eurozone, eastern European countries are feeling the strain of exclusion from the club. Fears over the effects of eurozone turmoil in the Czech Republic, Hungary and Poland have sent the value of their currencies plummeting. Since last Wednesday, when the euro began to feel the strain of escalating borrowing costs in Italy, the Hungarian forint has fallen more than 3 per cent against the single currency and the Polish zloty has weakened 1.5 per cent.

Asian stock markets were mixed Wednesday, as continued uncertainty over the political and sovereign-debt situation in Europe tempered positive sentiment stemming from better-than-expected U.S. retail sales data Tuesday.  Japan’s Nikkei Stock Average was flat, Australia’s S&P/ASX 200 was up 0.3%, South Korea’s Kospi Composite advanced 1.1% and New Zealand’s NZX-50 slid 0.8%. Dow Jones Industrial Average futures were up five points in screen trade.


Australia—President Barack Obama arrived here Wednesday, finally making it to Australia on his third try. He came bearing promises of deeper U.S. engagement in Asia Pacific and plans to amp up U.S. military presence on Australia’s north coast. The centerpiece of his visit will be an address to the Australian Parliament, where the president will lay out his vision for U.S. economic and security engagement in the region. And he’ll mark the 60th anniversary of the U.S.-Australian alliance by announcing a military pact for a new, permanent U.S. military presence in Darwin on the nation’s remote north coast.


Europe’s debt troubles on Tuesday spilled over to top-rated nations that had been largely untouched by the crisis—including Austria, the Netherlands, Finland and France—in an ominous sign for European policy makers. Bond yields across the Continent jumped as prices dropped, in a sign of investors’ faltering confidence in officials’ ability to keep the debt crisis contained in the euro zone’s troubled peripheral countries. Tuesday’s selloff came amid news that the euro zone’s economy scarcely grew in the third quarter.


Treasury Secretary Timothy Geithner said Europe’s smoldering fiscal crisis should compel Congress to pass legislation that boosts the economy, warning that continued global pressures are constraining U.S. growth.  Mr. Geithner also said there were “lots of ways” the European Central Bank could “play a more effective, supportive role” in resolving the European crisis, though he didn’t specify what the ECB might do.


The European Union remains focused on finding a way to expand its bailout fund, but Economics Commissioner Olli Rehn said a new proposal from German economists to counter the euro-zone debt crisis deserves attention. The German Council of Economic Experts, also known as the Five Wise Men, last week proposed creating a “European Redemption Fund” that would take over the excess sovereign debt of all countries that break the EU’s limit of 60% of gross domestic product. In return, beneficiary countries would have to submit to strict economic oversight and institute constitutional debt brakes aimed at rapidly shrinking their debt burdens.


The World Trade Organization in the coming months will examine whether international trade rules can be used to punish governments that manipulate the value of their currencies, a debate driven by Brazilian anger over China’s policy of keeping the yuan pegged to the U.S. dollar. The review opens a new front in the debate over China’s dollar peg, making the Geneva-based arbiter of trade disputes the latest international institution to tackle global angst over the issue. It comes as Western companies have started to make the argument that the peg amounts to an unfair export subsidy that should be fought with tariffs on Chinese-made goods.

The Bank of Japan cut its economic outlook Wednesday, citing a slowdown in overseas economies and the effects of a stronger yen, while keeping its benchmark interest-rate target unchanged as expected.  “Japan’s economic activity has continued picking up, but at a more moderate pace,” the Bank of Japan said in a statement accompanying the policy decision.  The large-scale flooding in Thailand and its dampening effect on Japanese industry were also cited as a factor in the lowered forecast.


China’s Commerce Ministry has pessimistic expectations for China’s exports in the rest of the year and the beginning of 2012, ministry spokesman Shen Danyang said Wednesday. Global protectionism, economic uncertainty and rising domestic labor costs are causes for pessimism, Shen said at a regular news briefing.  Shen also said while China will keep its export policies basically stable, it will take some new steps to boost imports


China’s yuan will maintain its upward trend against the U.S. dollar over the next six to 12 months, likely strengthening beyond a further CNY6.0000 in the next few months, state-run International Finance News reported Wednesday, citing a government researcher.  Pan Zhengyan, a researcher with the Shanghai Academy of Social Sciences, was cited in the report as saying the yuan would likely appreciate by 5% against the greenback in 2012.  The yuan has risen 3.8% against the U.S. unit so far this year and 7.6% since June 2010, when China ended its currency’s peg to the greenback.


Italian government bonds fell sharply Tuesday, pushing the yield on 10-year bonds back above the 7% level. The yield on 10-year bonds was last seen at 7.01%, up 43 basis points from Monday, according to FactSet Research. Yields rise as bond prices fall. The 7% level is seen as psychologically important, marking the point at which Portugal and Greece were effectively shut out of credit markets.

Brent crude slipped below $112 on Wednesday, reversing some of the previous session’s gains on worries that new governments in Greece </places/greece>  and Italy may fail to muster political clout to impose unpopular reforms and contain the region’s debt crisis


Gold prices fell more than half a percent on Wednesday, tracking a lower euro on fears the euro zone debt crisis could spread to France </places/france> , the bloc’s second-largest economy, while Greece and Italy struggle to save their economies. Spot gold lost 0.6 percent to $1,770.99 an ounce by 0257 GMT (9:57 p.m. EST). U.S. gold also fell 0.6 percent to $1,772.30. Technical analysis suggested that gold could rise to $1,829 an ounce during the day, said Reuters market analyst Wang Tao.


Dell Inc’s quarterly revenue just missed Wall Street estimates, and the world’s No. 3 personal computer maker warned that full-year revenue could be hurt by an industrywide shortage of hard drives. Uncertainties surrounding the economy and the hard drive shortage means that Dell’s fiscal 2012 revenue is tracking at the lower end of its growth forecast of 1 to 5 percent, the company said.


Fannie Mae (FNMA.OB </finance/stocks/overview?symbol=FNMA.OB> ) and Freddie Mac (FMCC.OB </finance/stocks/overview?symbol=FMCC.OB> ), the largest sources of U.S. housing finance </finance > , both said on Tuesday they would relieve lenders from certain risks associated with refinanced loans in an effort to help a government program reach more distressed homeowners. In new guidelines for the Home Affordable Refinance Program, both companies said separately they are relieving lenders of certain representations and warranties that are related to the value and condition of mortgaged property. HARP seeks to provide refinancing options for borrowers who have little or no equity in their homes. It is open only to loans sold to Fannie and Freddie. The changes are designed to encourage lenders to participate by reducing their potential liability for bad loans.

John Paulson <> , the billionaire hedge- fund manager having his worst year, is cutting risk in his hedge funds further as the European sovereign-debt crisis roils markets, according to two people briefed on the matter. The New York-based firm, which has $28 billion in assets, has cut the so-called net exposure in its main hedge funds to 30 percent, Paulson told investors on Nov. 14, according to the people, who asked not to be identified because the company is private. That number stood at 60 percent about four months ago. The firm is reducing its bullish bets across all funds until there is more certainty that Europe <>  can contain its debt crisis, Paulson said at the Metropolitan Museum <>  of Art in New York <> , part of a two-day annual meeting for investors. Paulson’s biggest funds,


South Korean companies, which raised a record from domestic bond sales this year, may keep up the pace in 2012 on demand from Japanese investors, according to top-ranked manager KB Investment & Securities Co. <>    Debt sales have risen 20 percent from last year’s total to 51.3 trillion won ($45 billion), surpassing the previous peak of 48 trillion won in 2009, according to data compiled by Bloomberg. Seoul-based KB Investment, a unit of the nation’s second-largest financial services group by assets, arranged 7.9 trillion won in sales, for a 16 percent share of the market.

improving trend in U.S. data could again be a factor for markets Wednesday, if negative sentiment about Europe can be held at bay. Stocks closed higher Tuesday, after a better-than-expected showing in October retail sales data, and the Empire Manufacturing survey turned slightly positive, up 0.61, after five negative months. Retail sales rose </id/45301983/>  0.5 percent, above the expected 0.3 percent. The markets were also calmed by word that Italy’s incoming Prime Minister Mario Monti would soon name a cabinet, moving the country down the road to new leadership and economic reforms. This was a positive even as the yields on French, Spanish and Italian bonds continued to rise.

Federal regulators must consider radical surgery to downsize “too-big-to-fail” banks <  into institutions that can been prudently managed and regulated across borders, said Richard Fisher, the president of the Dallas Federal Reserve <>  Bank on Tuesday. In a speech to students at Columbia University, Fisher said too-big-to-fail banks are “too dangerous to permit.” Fisher said he favors an international accord that would break up these biggest banks into more manageable size. <

Charities are calling for Britain’s Privy Council to block an American speculator from taking $100m (£62.86m) from the Democratic Republic of Congo. Peter Grossman runs a so-called vulture fund which buys up the debts of poor nations cheaply and then sues for 10 or 100 times what they paid for them. Such funds were in effect made illegal in the UK last year. But Mr Grossman exploited a loophole to sue in Jersey, which is currently not covered by the law.

The Bank of England is set to give a gloomy update on the state of the British economy, sharply downgrading growth forecasts and issuing a stark warning on the eurozone debt crisis.  The Bank is expected to cut its 2011 and 2012 growth forecast to about 1pc from its August forecast of about 2pc when it publishes its latest quarterly Inflation Report on Wednesday.  Sir Mervyn King, the Bank’s Governor, is likely to emphasise there are serious downside risks to the UK growth outlook because of the threat posed by the eurozone’s continued problems.

The prospect of a eurozone breakup intensified on Tuesday night as borrowing costs around the region soared and the Dutch prime minister said it should be possible to expel some members from the currency union. Investors are rapidly losing hope that a solution to the sovereign debt crisis will be found, and their fear was demonstrated by rising bond yields – the rate of interest governments have to pay to borrow – across almost all single-currency countries. The Dutch premier, Mark Rutte, stoked fears that a collapse could become a reality as he aired the prospect of countries being ejected, albeit as a last resort.

Mario Monti’s Italian government will have to stave off a ratings downgrade as it refinances $US420 billion of bonds and bills coming due next year, as investors price the debt as junk. The ranking implied by Italy’s bonds is Ba2, two steps below investment grade and six levels lower than the country’s A2 grade, according to Moody’s Analytics. The only nation with investment-grade ratings whose bonds cost more to insure using credit-default swaps is Hungary, ranked four steps lower, which Standard & Poor’s said last week it may cut to junk. <

The Canadian Real Estate Association says home sales <>  in Ontario were stronger than anticipated during the third quarter — resulting in a slightly brighter outlook for CREA’s 2011 and 2012 national forecasts. The industry association is now projecting sales this year will be up 1.4 per cent from 2010, half a percentage point better than the previous forecast. CREA expects there will be slightly fewer units sold next year than in 2011, but the 0.5 per cent decline is an upward revision.


What should U.S. Federal Reserve chairman Ben Bernanke <>  do next? London-based economist Detlev Schlichter says, succinctly: “Abdicate.” What should U.S. President Barack Obama do next? Mr. Schlichter says, succinctly: “Abdicate.” With Mr. Schlichter, you aren’t left with much doubt about his position. He says the world’s major currencies are destined to crash. “The dollar, the euro and the yen are locked in a race to the bottom,” he writes on his website, The only question is which one crashes first.

China’s annual government spending in poverty reduction programs had grown 11.9 percent on average from 2001 to 2010, according to a white paper released Wednesday by State Council Information Office. Central and local governments have been constantly adjusting structures of financial expenditure and gradually increasing the financial input into poverty reduction programs, according to the white paper titled New Progress in Development-Oriented Poverty Reduction Program for Rural China. The financial input increased from 12.75 billion yuan in 2001 to 34.93 billion yuan in 2010, representing an average annual growth rate of 11.9 percent, and the total input during the past ten years reached 204.38 billion yuan, the document said.


China’s foreign exchange regulator on Tuesday said the country continued to see surpluses both under the current account and financial account in the third quarter of this year. The surplus under the current account, which measures China’s foreign trade of goods and services, stood at 57.8 billion U.S. dollars in the third quarter, according to data released by the State  Administration of Foreign Exchange (SAFE). The surplus under the financial account, which measures net capital inflow, stood at 33.9 billion U.S. dollars, according to the SAFE data. The foreign exchange reserves increased 91.7 billion U.S. dollars in the third quarter, excluding the effects of changes in the exchange rate and asset prices.


Indian government has lowered fuel price b 2.22 rupees (0.044 U.S. dollar) per liter starting Wednesday, for the first time in nearly three years, after meeting protests from opposition parties, according to local media reports. The move came ahead of the winter session of Parliament that begins next week, during which the government is expected to meet opposition demand for presentation of an anti-graft bill and new policy to fight high inflation, as well as some pending corruption issues.


Wages for Australian workers rose 0. 8 percent in the September quarter, slightly less than market forecasts, official data showed on Wednesday. The Australian Bureau of Statistics (ABS) reported on Wednesday total hourly rates of pay, excluding bonuses, rose 0.8 percent in the September quarter. The wage price index (WPI) increased by 3.7 percent through the year to the September quarter 2011 for all employee jobs, the ABS said. The median market forecast was for a rise of 0.9 percent in the three months to September.


Economic growth in Austria has slowed significantly in the third quarter of this year, the Austrian Institute of Economic Research (WIFO) said Tuesday. The real increase in the country’s gross domestic product (GDP) declined to 0.3 percent from 0.5 percent in the previous quarter. On the year-on-year basis, the growth has declined from 3.9  percent to 2.6 percent, according to the WIFO. The impulses from abroad have declined, however, total exports in this period still increased by 0.6 percent and imports rose by 0.5 percent.


Romania reported the highest quarterly economic growth rate among the European Union (EU) member states in the third quarter of 2011, according to preliminary estimates released Tuesday by the Eurostat official statistics office of the EU. Romania’s Gross Domestic Product (GDP) advanced 1.9 percent in Q3 on a quarterly basis, while economic growth in the eurozone and the EU overall was only 0.2 percent. The National Statistics Institute of Romania reports that the country’s economy recorded a 2.7-percent growth in the first nine months of 2011 compared with the similar period of the year before.


The Australian economy is growing at an annual pace close to the projected long-term trend, according to a survey released on Wednesday by Westpac Banking Corporation and the Melbourne Institute. The annualized growth rate of the WestpacMelbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months into the future, was 3.3 percent in September, basically in line with its long term trend of 3.2 percent, Westpac said. Westpac chief economist Bill Evans said the growth rate in the Index slowed from the 4.5 percent in August and was close to its long term trend.

In a relief to importers and exporters hit hard by Eurozone </search.cms?query=Eurozone>  crisis, the Reserve Bank today revised the interest rate ceiling by 150 basis points for raising overseas trade credit.  The all-in-cost ceiling both for importers and exporters has been raised from 200 basis points (bps) to 350 bps over London Inter Bank Offer Rate (LIBOR).  “On a review of developments in the global financial markets and the fact that domestic importers are experiencing difficulties in raising trade credit within the existing all-in-cost ceiling, it has been decided to revise the ceiling,” the Reserve Bank of India </search.cms?query=Reserve Bank of India>  (RBI) said. This comes into immediate effect.


Commerce Minister Anand Sharma </search.cms?query=Anand Sharma>  today said the proposed India-EU trade agreement presents ample opportunities for both sides in goods and services.  Sharma said the two sides are committed to the ambitious pact by early 2012. There have been 13 rounds of negotiations for the Broad-Based Trade and Investment Agreement </search.cms?query=Investment Agreement>  between India and 27-member EU bloc since 2007.  “This agreement will lead to increase of opportunities for market access in both goods and services for both sides.”

China’s central bank may cut the required amount of money local banks must keep in reserves in January as part of its move to ease monetary tightening, a report showed Wednesday. The central People’s Bank of China (PBOC) has raised the benchmark interest rate three times this year, while increasing the reserve requirement ratio a total of six times, in order to counter the country’s persisting inflationary pressure. “We think there is a high chance for a cut in the ratio in January considering seasonal demand for cash going into the Chinese New Year holidays,” Barclays Capital said in a report.

Russia’s economic expansion will accelerate this year from 2010, even after gross domestic product grew more slowly than estimated in the third quarter, Deputy Economy Minister Andrei Klepach said. The economy will increase 4.1 percent this year after 4 percent last year, Klepach said Monday, reiterating the official target. GDP rose 4.8 percent from a year earlier last quarter, missing economists’ forecasts and the Economy Ministry’s estimate of 5.1 percent. The economy accelerated in the third quarter for the first time since last year. The government predicts that GDP will slow in the fourth quarter, growing between 3.8 percent and 3.9 percent. Outflows of capital and insufficient investment are a drag on growth and present risks for Russia’s economy, Klepach said. Net capital flight may reach $70 billion this year, up from a previous forecast of $36 billion of outflows, according to the Central Bank. <

Johannesburg – South Africa’s monetary policy will maintain its focus on hitting a 3% to 6% inflation target over the medium term but will remain sensitive to the domestic economic situation, Reserve Bank governor Gill Marcus <>  said on Tuesday.  Marcus told a meeting of the Swiss Chamber of Southern Africa that the developments in the exchange rate – which has been hit by bouts of risk aversion due to uncertainty over the eurozone debt crisis – had implications for monetary policy.  The Reserve Bank’s monetary policy committee (MPC) left its repo rate unchanged at 5.5% as expected last week, as it balanced concerns over sluggish economic growth with rising inflation.

Germany will seek to boost economic growth and address a shortfall in skilled labour by simplifying procedures to recruit from abroad, Economy Minister Philipp Roesler said on Tuesday.  Speaking to business leaders in Berlin, Roesler said efforts had been agreed by the ruling coalition and that funding was also available to coordinate an advertising programme via Germany’s chambers of commerce.  “We must promote employment in Germany better abroad,” he said, adding that foreigners did not necessarily know how attractive employment was in Europe’s largest economy and that efforts should be focused on small and medium-sized companies.

With the recent blow up of MF, the clearing of risk must be guaranteed. The OTC market is carrying the largest exposure, and must be overseen efficiently. DB on OTC Derivatives and their future. Derivatives have a long-standing history as financial instruments for managing financial risks stemming from changes in macroeconomic conditions. They thus represent important risk management tools for companies, authorities and financial institutions as they can be used to manage exposure to interest rate, currency, commodity price or other risks. Globally, the OTC derivatives market volume amounts to USD 600 trillion; nearly 85% of the world’s out- standing derivatives market volume is accounted for by OTC derivatives.