G3 Recap 11-19-10

Main Items:

  • Reuters reports that the EU/IMF plan being put in place for Ireland is likely to be announced next week.
  • Trichet was surprisingly hawkish overnight, hinting that the ECB could hike rates even while its non-standard measures remain. London independent
  • US Prime foreclosures hit a new high in 3Q, to 2.45%.
  • Bernanke called out the EM countries that have been actively intervening in a speech overnight. The speech did not lay out any new ground for macro speculators, and did not contain any inflammatory language, or even good sound bites. The clearest statement was probably: “But the rebalancing of growth would also be facilitated if fast-growing countries, especially those with large current account surpluses, would take action to reduce their surpluses,” along with an implied comparison of some EM Asian countries today with the US and France during the Great Depression. By implication via the chart below, Hong Kong, Taiwan, and China are the biggest culprits:

Overseas:

  • China hiked the banks reserve ratio by 50bps after the Chinese stock market close.

Commentary:

  • I got nothin!
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