Links 10 January 2012

Here’s a list of things Reynard read overnight.

Global Macro:

 

North America:

Europe:

  • Special Report – How Mario Draghi is reshaping Europe’s central bank – Reuters
  • Lost illusions on Europe – Financial Times
  • Greece’s fragile bond rally – FT Alphaville
  • In the euro area, it’s pretty much going to suck for awhile – FT Alphaville
  • German output rise fails to quell fourth-quarter contraction fears – Reuters
  • 2013 Will Be the Year of Geoeconomics – euinside.eu
  • Why finance is still king in Britain – The Real Economy – edmundconway.com
  • Germany hurt by the Eurozone’s massive demand shock, but has the economy bottomed? – Sober Look

Asia:

  • Japan to Buy European Debt With Currency Reserves to Weaken Yen – moneynews.com
  • China’s (not remotely insignificant) rebalancing challenges – FT Alphaville
  • End of the road for China’s ‘B’ market – Financial Times
  • Andy Xie: Hello 2013: China – muddling but not through – FT Beyond Brics
  • Standard Chartered’s Stephen Green outlines what China needs to do to rebalance its economy – FT Alphaville
  • Japan to stimulate its economy – AFR

Local:

  • Investors pile back into super – AFR
  • Swan still pushing for austerity – AFR
  • States push for mining approvals  – AFR
  • Jobs, confidence on the slide – The Age
  • Retailers disappointed at latest figures – The Age
  • The Kouk turns full housing bull – Business Spectator

Other:

  • Data: 2012 Hottest (+ 2nd Most Extreme) Year On Record – The Big Picture

Comments

  1. This part of The Kouk’s article makes me laugh. Since when did having close to the highest household debt levels in the world mean that our consumer finances are in sound shape?

    “Added to that, consumer finances are in sound shape. Saving levels have been replenished over recent years and many borrowers have taken advantages of the current interest rate cutting cycle to pay off the principle in their current mortgage. This robust balance sheet for consumers frees them up to ramp up borrowing and bid up house prices in the not too distant future.”

    • Argh, no edit button!

      I do like his reverse use of the classic “This time it’s different”.

      “Some say “this time it’s different” but I suspect it isn’t. Australian consumers still love housing, the tax system favours individuals having a highly-geared house and the core underpinnings are very supportive of housing.”

      Let me see how that line is normally used… Ah yes, this is it. http://www.amazon.com/This-Time-Different-Centuries-Financial/dp/0691152640

      “Throughout history, rich and poor countries alike have been lending, borrowing, crashing–and recovering–their way through an extraordinary range of financial crises. Each time, the experts have chimed, “this time is different”–claiming that the old rules of valuation no longer apply and that the new situation bears little similarity to past disasters. With this breakthrough study, leading economists Carmen Reinhart and Kenneth Rogoff definitively prove them wrong.”

    • The Kouk is spot on.

      Any further rate cuts will only overheat the market and carry inflationary risks

    • So we’ll call this our first date for the year then 3d..I see your other lover PF has been making a fine job of himself in trying to gradually date everyone else this week..what,no work on Pete,anyways n I’ll try and put that aside,it’s Friday..n Today in 3d,you’re hopelessly lost to my direction,where,you’ll find yourself minoring up at any cost,to feed me,much like your mate last week,n this week,you’ll like,finding yourself worming your way into the sunshine of my love for you..and yes,I’ll Crow,in the end…but,hey all’s fair in fun n games,n
      I know you would never vote for a green one 3d,too hard,hey..so I bought over a red one,just the same,have an apple n I’ll have you..like,yummyinmytummy
      Cheers JR http://www.youtube.com/watch?v=uGOCG-r-HB8

    • Or just another reason to vote for anyone other than the Labor and LNP divisions of the ‘Corporate Support Party’.

      So easily manipulated by members of the cabal you astroturf for.

      • Never Vote Green.

        Milne and Rhiannon have demonstrated a total disregard and contempt for Australian business and like all Greens, wish to impose their world-view on others by any means including it seems, sabotage.

        • I am shocked, shocked that an astroturfer paid for and acting on behalf of big, non-australian owned mining, would suggest such a thing.

          My goldfish has more cred than your comments.

          • So aj it doesn’t matte that ordinary people who work damned hard for their money might have lost part of their savings because of some lying low-down ignorant unprincipled scumbag who doesn’t give a RA about the effect he has on anyone else as long as he gets his way?

          • @fl. Just to clarify, you’re essentially asking me if it matters if passive financial speculators (because the shift in value was only over a few hours) were hurt because they forgot to check their facts.

    • His intent was not to ‘expose the markets as being made up of a bunch of twitchy fools…”; his intent was to disrupt the lawful activity of a corporation HE has decided HE does not approve of and in doing so engaged in fraudulent behaviour.

      • His intent, mr astroturfer (who paid by and acting for big, non-australian owned mining), was to make a political point about the environment.

        The outcome, exposed the stupidity of the funds and traders and the hypocrisy of ASIC as a patsy for big corporate.

        All in all a great piece of civil disobedience.

          • Thank you.

            The ideal of civil disobedience has sadly been debased in modern times by activists of all kinds hoisting the holy mantle of civil disobedience above their actions.

            Fraud is not civil disobedience.

            If this bloke had held up a placard outside the gates of the minesite, HQ of ANZ or the steps of Parliament, refusing to be move on direction of authorities, or refused to pay taxes in protest, or sat at the back of the bus…

            In honour of the ideal no doubt he will accept penalty, if any, with good grace.

          • Haha – fancy that, big, non-australian owned corporate is asking for those contemplating civil disobedience to restrict themselves to acts of pointless futility.

          • @GSM – aren’t you the guy that’s stuck out in the boondocks getting flogged by the big non-australian owned mining co’s. It sounds more like you are the on the wrong end of the economy.

            And anyway since when are guys and gals caring about the environment not part of the economy. The economy is actually more than just the people that choose to help make money for big global capital.

          • aj,

            My question only applies to those that despise captialism so much. If that fits you then so be it.

            Those dirty resource Co’s and those who work there ( yes I’m one – you have no idea if it’s foreign or not) have the joy of seeing large portions of their hard earned wealth syphoned off so Green ed can flourish , helping you guys and gals in practicing your religion. After all, those dispicable products and the industry that drives it just leaps from the ground onto the rail cars. Those rent seekers!

            I don’t know where you reside, but next time you make use of any Govt service- Transport, Health, Roads and bike paths, Education, your job? – whatever, try to spare a thought for those that actually have to work to provide funding for that. It may help with getting some perspective.

          • The environment movement acts as a very necessary counter-balance on the hegemony of the global mining capital. And is probably, at this point not as powerful as it should be for good balance.

            Contrary to the corporate line, they don’t threaten mining jobs they actually increase them and improve them. Global mining capital may encourage their employees to see them as a bete noire but a ying-yang view is probably more appropriate.

            I certainly do not doubt the toughness of the work the guys and gals do in the mining sector.

          • We agree littleguy. It’s (double standards) rampant in presecution of the law.

            The law should be applied without fear or favour.

            aj,
            Those who despise our economy so much , it’s participants and it’s many faults and failures perhaps should just live in a tent on a remote isolated beach -free of all those nasty capitalistic encumbrances? Rather than force their view ,through damages, onto unsuspecting law abiding others?

          • Those who despise our economy so much , it’s participants and it’s many faults and failures perhaps should just live in a tent on a remote isolated beach -free of all those nasty capitalistic encumbrances? Rather than force their view ,through damages, onto unsuspecting law abiding others?

            That’s hysterical coming from the guy who despises Australia’s historical egalitarianism and wants to force his neoliberal worldview on everyone else in country.

          • doc,

            Your slurs and attacks aside, my views are no more or less of import than your Leftist/ Green extremism.

            The ballot box decides where the “force” is applied not individuals like me or you for that matter. So please, tone down the hysteria?

          • Your slurs and attacks aside, my views are no more or less of import than your Leftist/ Green extremism.

            I’m not aware of any “extremist” positions I’ve advocated, ever.

            The ballot box decides where the “force” is applied not individuals like me or you for that matter. So please, tone down the hysteria?
            I must have missed the part where the hippie in question “forced” anyone to do anything. Maybe you could outline it for us ?

          • Who was hurt? algorithms? passive financial speculators that had their stops breached?

            Hell the algorithms are trying to do that every-day and no-one gives a sh8t.

          • Who was hurt – betcha can’t name anyone other than a passive financial speculator.

            Passive financial speculators don’t get hurt they just get beaten – for every loser there is a winner.

      • his intent was to disrupt the lawful activity of a corporation HE has decided HE does not approve of and in doing so engaged in fraudulent behaviour.
        Ah. You mean like women chaining themselves to bars back in the days when they weren’t allowed in to have a drink ?

        • No. Those women appeared to engage in a form of quasi-civil disobedience, not fraud engineered to manipulate markets.

          • No. Those women appeared to engage in a form of quasi-civil disobedience, not fraud engineered to manipulate markets

            .
            Perhaps you can elaborate on the difference between “Quasi-civil disobedience” and “civil disobedience”.

    • Does anyone know what is going on with this?

      DC do you have a view on this given your interest in the big developers?