European financial elite appear to discuss the conduct of bank stress tests in the coming year, although in many respects there is no agreement, they will be. One camp supports the broader and more open tests, but others suggest that the results should not be public. We are at the first camp. If you run stress tests, make sure that an unfavorable scenario really poor, and make it public. All other options would be banal stucco.Spain announces additional saving measures, sells assets. Spain frightening vision of the debt infection swept Europe. Against this backdrop, Prime Minister Zapatero announced that they would not renew expiring in February, bonuses for long-term unemployed, and that sells stake in 49% of the national lottery.
Recovery in the UK is pretty good going. Final reading of the CIPS manufacturing PMI for November was 58, and was the highest in 16 years, which confirms the confident reconstruction of Britain. Strong export orders through competitive pound gave support to the manufacturing industry. Employment component was the highest since the beginning of this statistic in 1992. Separately, research YouGov, conducted for Citigroup showed inflation expectations for next year to 3,3% last month, compared to 3,0% in October.
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Stocks worldwide have soared in response to a heap of strong economic data from the U.S. yesterday: a) auto sales continue to grow, showing last month the annual rate of sales to 12.26 million, compared with less than 10 million at the height of the crisis, although in 2006/07 they regularly exceeded 16 million b) after a study published yesterday ADP employment can be expected tomorrow, the official data exceeded the growth of employment at 200,000 the second month in a row, and c) the Fed Beige Book noted that the economy has improved in recent weeks, employment grew, production increased, and retailers are optimistic pre-season sales, and d) the collection of federal taxes has increased by 8,8% for the year ending in November, and e) the November ISM generally coincided with expectations at an acceptable level of 56.6, only slightly down from 56.9 last month. New orders were quite good, as well as exports, stocks - low, while employment continued to grow, e) construction costs increase the second month in a row, rising in October to 0.7% g) transport of goods by road has increased by 2,8 % m / m, and 14,9% y / y, according to Cass Information Systems.
A growing body of evidence that the U.S. economy intensified after the summer slumber, impact on a substantial increase in risky assets yesterday amid growing by more than 2% of the shares of Europe and the United States facing record growth in commodities. For the Aussie was also an opportune time, he rose to 0.97 in the evening in New York after the languor around 0.9550 yesterday morning in Asia. Aussie night rolled back to 0.9660, partly due to news that retail sales unexpectedly fell in October. In contrast to the more favorable economic news from the U.S., the Australian economy has recently started to show definitive signs of a slowdown in the background of the high value of the currency as a major factor. If you start from the basics, then the Aussie will move in the channel in those days.
USD / JPY pair is slightly increased during the night, but now retraced to 84, so that trade was again relatively boring. Nevertheless, it would be rather surprising if the USD / JPY pair did not start to attract more attention to what is quickly becoming apparent favorable basis for further improving the pair. It is obvious that the U.S. economy shows decent growth in the year-end, while there are obvious concerns that the Japanese economy may be slipping back into recession. If tomorrow's employment data in the U.S. once again delight, then, as we expect the dollar will clearly benefit from the. Tensions on the Korean peninsula helping the dollar at this point more than the yen.
In early European trading session, there were offers of a pound, but given the decrease in the December volume is not worth it to pay too much attention. In general, the pound has been characterized by some kind of correction against the weaker dollar earlier this month, but there is nothing dramatic that only emphasizes that the pound was stuck between the dollar and euro. Sterling also traded as currency risk at that level, having a correlation to world stocks at 0.75, so that the cable is a good feeling during the rally world shares. However, leverage is not as strong as in vysokodohodnikov, Aussie has a correlation against the world's stock over the level of 0.90. At the moment, the pound continues to focus on fiscal and monetary policy debates, which become active as ever due to the influence of fiscal tightening and the choice of the direction of monetary policy next year.