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Posted

Early openers wobbling: Kiwis +0.3%, Aussies +0.2%, Nikkers -0.9% and Sth Korea +0.1%.

 

The Aussie market quiet as the grave with sectors sludgy. Energy +0.6% is leading the greens ranging down to Gold and Miners, both -0.4%.

 

 

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Posted

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Another wandering day. All Ords closed +0.4% with REITS +1.3% doing another run and Gold -0.5% at the tail end.

 

Asia looking more bearish: China -2.6%, Honkers -1.9%, India -0.7% and Nikkers -0.9%.

 

 

On to UK/Europe:

 

 

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Posted

 

It's cheaper to send a 40' container all the way in from China to Germany than from Italy or Greece.

 

In related news: unexpected ginourmous jump of 0.7% in German retail sales.

 

"Sales, adjusted for inflation and seasonal swings, increased 0.7 percent from September, when they advanced 0.3 percent, the Federal Statistics Office in Wiesbaden said today. That’s the biggest increase since June. Economists forecast a gain of 0.1 percent, the median of 19 estimates in a Bloomberg News survey showed. Sales dropped 0.4 percent from a year ago. "

 

http://www.bloomberg.com/news/2011-11-30/germany-s-retail-sales-increased-more-than-economists-forecast-in-october.html

 

Big export countries like China and Germany have to boost internal consumer spending to alleviate global unbalances.

Posted

They be trying to lower short-term market rates (Euribor-OIS spread, somewhat similar to USD's TED spread).

 

"Owners of long-term unsecured debt in a collapsing bank would be first in line to take losses under draft plans from the European Union to protect taxpayers’ money from future bailouts.

 

Short-term debt, with a less than one-year maturity, and derivatives should only be written down by regulators as a last resort if losses from longer-term debt aren’t “sufficient to restore the capital of the institution and enable it to operate as a going concern,” according to a draft European Commission proposal obtained by Bloomberg News.

 

“They are terrified of inadvertently killing off the interbank market,” Simon Gleeson, a financial services lawyer at Clifford Chance LLP in London, said in a telephone conversation. “This is a desperate attempt” to preserve it. "

 

A smart bankster would only use and roll short-term financing, so they put up this rule:

 

"Banks will have to hold minimum amounts of longer-term funding to prevent them from exploiting the commission’s plan to shield short-term debt from writedowns. "

 

These politicos type excel at procrastination:

 

"The commission may further delay publication of the measures until the start of next year to avoid them being unveiled at a time when they could add to volatility on financial markets, an EU official said earlier this month. "

 

http://www.bloomberg.com/news/2011-11-29/failing-banks-short-term-creditors-may-be-shielded-from-losses-in-eu-plan.html

 

I have a bad feeling about all this economic central planning.

 

Here's Ambrose's view with his usual one-sided alarmistic tone:

 

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8918784/Should-the-Fed-save-Europe-from-disaster.html

 

His solution? Take Helo Ben on a splurgy euro trip:

 

"The Fed could buy €2 trillion of EMU debt or more, intervening with crushing power. The credible threat of such action by the world’s paramount monetary force might alone bring Italian and Spanish yields back down below 5pc, before one bent nickel is even spent. "

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