Top Interest Rate Headlines 12-01-10: As Debt Panel Releases Plan, Two Senators Commit

As Debt Panel Releases Plan, Two Senators Commit
By JACKIE CALMES and PETER BAKER, The New York Times
Senators Judd Gregg and Kent Conrad became the first elected members of President Obama’s deficit commission to publicly endorse the package released on Wednesday.
http://jlne.ws/fJxuNa

Small businesses hire 54,000 people in November
Catherine Clifford, CNNMoney
The nation's engine of job growth is revving up: small businesses were responsible for 58% of the private sector hiring in November, according to a report released Wednesday.
http://jlne.ws/hrcikH

Federal Reserve Chairwoman Janet Yellen urges more stimulus
Ballooning U.S. [[debt]] is a serious long-term threat, but the [[economy]] needs more [[stimulus]] now, a top [[Federal Reserve]] official said Wednesday.
http://jlne.ws/hP6bua

Bond Markets Raise Stakes for ECB Meeting
By Brian Blackstone, WSJ.com
European bond investors are raising expectations that the European Central Bank will use its monthly meeting Thursday to forcefully prop up government bond markets of its beleaguered periphery by, among other things, ramping up purchases of government debt.
http://jlne.ws/eQXhfF

Volcker Says Dollar's Role in Danger as U.S. Influence Declines
Peter S. Green, Bloomberg
Former Federal Reserve Chairman Paul Volcker, who is chairman of President Barack Obama’s Economic Recovery Advisory Board, said the U.S. dollar is in danger of losing its role as a global benchmark currency.
http://jlne.ws/fRUcQU

U.S. factory output expands
The Globe And Mail
U.S. factory output grew for the 16th straight month in November, though at a slightly slower pace than the previous month. The Institute for Supply Management says its index of manufacturing activity dropped to 56.6 in November, down from 56.9 in October. Any reading over 50 indicates growth. Wall Street analysts expected a steeper drop.
http://jlne.ws/gghnrc

US deficit panel calls for steep cuts and tax hikes
BBC
A presidential panel set up to help trim the US budget deficit has called for steep spending cuts and tax hikes.
http://jlne.ws/fOOC9Z

House prices: Double dip
The Economist
THERE was further gloomy news for America's homeowners as national house prices dipped in the three months to September. The S&P/Case-Shiller index, released on November 30th, fell by 1.5% from the same period in 2009 and by 2% from the previous quarter. The end of the government's tax incentives and ongoing foreclosures are contributing factors. The index is now back at 2003 levels. Prices in the ten big cities are 2.6% higher on a quarterly basis than a year ago, but the same downwards trend is evident there too. Indeed the broader 20-city gauge, which began in 2000 and is not shown here, rose by only 1.8% on a year earlier.
http://jlne.ws/ei1WVH

Results of the December 2010 meeting of the Basel Committee on Banking Supervision
At its meeting on 30 November and 1 December, the Basel Committee on Banking Supervision agreed on the details of the Basel III rules text, which includes global regulatory standards on capital adequacy and liquidity. The liquidity coverage ratio and the net stable funding ratio will be subject to an observation period and will include a review clause to address any unintended consequences. The Committee's oversight body of Central Bank Governors and Heads of Supervision reached agreement on the Basel III regulatory framework in July and September 2010. The framework was recently endorsed by the G20 Leaders at their Seoul summit in November.
http://jlne.ws/i6GXrQ

Jamie Dimon: America’s Least-Hated Banker
By ROGER LOWENSTEIN, The New York Times
During the financial crisis, the C.E.O. of JPMorgan Chase outshone his rivals. But where exactly does that leave him now?
http://jlne.ws/gIwobm

What is new monetarist economics?
We motivate and provide an overview to New Monetarist Economics. We then briefly describe the individual contributions to the Macroeconomics Dynamics special issues on money, credit and liquidity.
http://bit.ly/dGvY2i

Aid pledged to Europe's banks hits 4.5 trillion euros
BBC
European Union states have underwritten their financial sectors with 4.5 trillion euros ($5.9tn; £3.8bn) of aid since the banking crisis hit.
http://jlne.ws/f0tfGp

ELX Reports Open Interest and Volume Records in Eurodollar Futures and Record Market Share in Two-Years
Press Release
ELX Futures, L.P. (ELX) announced today that November was another record-setting month for its Eurodollar futures contract. ELX reported record open interest (OI) and record volume in Eurodollar futures, with OI hitting 192,068 contracts on November 30. Eurodollar futures also set a new volume record, reaching 40,794 contracts on November 9. Month over month, market share in the Eurodollar contract increased 14% since October. In addition, November was a record-setting month for ELX’s two-year U.S. Treasury futures contract, with market share soaring to 13.4% on November 2.
http://jlne.ws/fMrFFv