The Word on the Street

Thermal Ebb

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NZ CB hints at currency intervention. 2007 all over again. When the entire AsiaPac region is playing the intervention game can any one of them really be singled out as a currency manipulator?
 
UK unemployment rate 7.8%. Jobless level -14k in 3 months to December. Earnings growth remained weak at 1.4%.

Mervyn King wanted more QE. 6-3 the others didn't.
 
The Brits aren't above a bit of currency intervention themselves, though credit due - they are very subtle. The softer side of soft. Won't hurt the deficit one bit.
 
Sectors to be buying:-

IT
Aerospace
Public Administration
Telecoms (satellite)
Scientific R&D
Energy
Transport
Construction
Manufacturing
Engineering

By definition, any that aren't on that list are a divest. (Hint: Financials, banks, funds, insurance, health, medical, consumer tech., marketing).
 
Spain to impose yield ceiling on new bonds. Taking a lead from their Mediterranean contemporaries Greece who imposed a rather more significant ceiling, but unsportingly post hoc, on its own bond investors.
 
Excessive Deficit status for France? "Member States must avoid excessive budgetary deficits. Under the provisions of the Stability and Growth Pact, they agree to respect two criteria: a deficit-to-GDP ratio of 3% and a debt-to-GDP ratio of 60%.".

|Not sure why this should be on the cards now when both France and Germany have historically trampled these criteria. It's either a power play by the EU politburo or there are advantages to the country thus designated that Hollande feels is worth having. If the latter, you can be reasonably sure it's an excuse for him to enact some method to extract that from those that hath and distribute it to those that hath not.
 
Spain bond yield cap rumored to be 100bps. This will restrict regional access dramatically.
 
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