World economy talk

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hot trade

short yen, long Japanese equities

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Japan

QE10

TOKYO (Reuters) - The Bank of Japan delivered its third dose of monetary stimulus in four months on Thursday in a prelude to more aggressive action next year, as it faces intensifying pressure from the country's next leader for stronger efforts to beat deflation.

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[Ry_Tower]

US fiscal cliff is almost here. Can there be a last minute deal?

[CoDer]

US fiscal cliff is almost here. Can there be a last minute deal?

Matigas si Boehner, baka diretso na sila sa cliff nyan.

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short yen, long Japan stocks

the only game in town






USDJPY 86!




when was the last time USDJPY was even near 86?

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[Ry_Tower]

Ford to add 12K new jobs over next three years. Looks good for the blue oval company indeed.

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from the Fed minutes:

FRB: FOMC Minutes, December 11-12, 2012

In their discussion of monetary policy for the period ahead, all members but one judged that continued provision of monetary accommodation was warranted in order to support further progress toward the Committee's goals of maximum employment and price stability. The Committee judged that such accommodation should be provided in part by continuing to purchase MBS at a pace of $40 billion per month and by purchasing longer-term Treasury securities, initially at a pace of $45 billion per month, following the completion of the maturity extension program at the end of the year. The Committee also maintained its existing policy of reinvesting principal payments from its holdings of agency debt and agency MBS into agency MBS and decided that, starting in January, it will resume rolling over maturing Treasury securities at auction. While almost all members thought that the asset purchase program begun in September had been effective and supportive of growth, they also generally saw that the benefits of ongoing purchases were uncertain and that the potential costs could rise as the size of the balance sheet increased. Various members stressed the importance of a continuing assessment of labor market developments and reviews of the program's efficacy and costs at upcoming FOMC meetings. In considering the outlook for the labor market and the broader economy, a few members expressed the view that ongoing asset purchases would likely be warranted until about the end of 2013, while a few others emphasized the need for considerable policy accommodation but did not state a specific time frame or total for purchases. Several others thought that it would probably be appropriate to slow or to stop purchases well before the end of 2013, citing concerns about financial stability or the size of the balance sheet. One member viewed any additional purchases as unwarranted.

so Fed QE could stop at the end of year or before the end of the year

USD index


Gold


US 10 yr yield