Top Interest Rate Headlines 01-23-2012: Europe Heads to Davos Surprising Doomsayers

Europe Heads to Davos Surprising Doomsayers
Bloomberg
European leaders heading to the home of Thomas Mann’s Magic Mountain sanatorium are surprising credit-ratings companies, and the economists who agree with them, as the consensus predicts another year of trauma for the euro area.
http://jlne.ws/zyHeUu

S&P Downgrades Eurozone Sovereign Debt
CME Group
Standard & Poor's announced that it had downgraded the long-term sovereign debt credit ratings of nine European countries on January 13, 2012. This action was predicated on the view that policy initiatives taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the Eurozone. S&P further rated the outlook, of 14 of the 16 Eurozone sovereign entities as "negative."
http://jlne.ws/z7dngM

Big Banks Killed in 4Q Mortgage Results
American Banker
The big banks' mortgage woes keep piling up, in a backlog that is likely to drag down their profits — and a broader housing recovery — for the foreseeable future.
http://jlne.ws/y7K49F

Australia Economy Still Strong, but China Crucial: Rudd
CNBC
Despite soft economic data out of Australia in recent weeks, the country’s Foreign Minister and Former Prime Minister, Kevin Rudd, tells CNBC the economy remains on solid footing as a result of robust fundamentals and strong growth out of top trading partner China.
http://jlne.ws/yMP7AE

Chinese economy to see significant slowdown in 2012, Nouriel Roubini says
Financial Post
China’s economy will slow in 2012, prompting policy makers to reduce interest rates and loosen lending restrictions, said Nouriel Roubini, the economist who predicted the 2008 financial crisis.
http://jlne.ws/xNVPoy

IMF's Lagarde calls for larger 'firewall' in Europe
CNN Money
The director of the International Monetary Fund said Monday that Europe needs a stronger financial firewall to stop the spread of debt contagion in the eurozone.
http://jlne.ws/AF5JJ4

What’s behind Republican attacks on the Fed
MarketWatch
The Federal Reserve has been working for months on improving its communication with financial markets. But the central bank does not seem to speak the same language as one key group — Republican primary voters.
http://jlne.ws/z7vEt2

Fears Grow for Portuguese Economy
WSJ.com
Investors, economists and politicians are increasingly concerned that Portugal will need a second bailout as fears mount that it won't be able to return to markets for financing next year.
http://jlne.ws/wPOVUB

MarkitServ starts interest rate derivative trade data feed to DTCC repository
Press Release
MarkitSERV, the most widely used electronic trade processing service for OTC derivative transactions, today announced that it is now transmitting confirmed trade records to the Depository Trust and Clearing Corporation's (DTCC) new Global Trade Repository (GTR) for over-the-counter (OTC) interest rate derivatives.
http://jlne.ws/y5uCXV

Number of the Week: When Will Fed Raise Rates?
WSJ.com
The number of months the Federal Reserve has kept rates near zero. The Federal Reserve gives its latest signal next week on when it plans to raise rates from historic lows. The only thing we know for sure is that it won’t be any time soon.
http://jlne.ws/wKdaly

Economists see growth slowing, recession risk falling
USA Today
The U.S. economy's growth will slow this year after a blast of stronger growth in late 2011, leaving the 8.5% unemployment rate about where it is now on Election Day, according to USA TODAY's quarterly survey of economists.
http://jlne.ws/A4CFu7

MOODY'S: Odds Of A Greek Debt Default Disaster And Exit From The Euro Are On The Rise
Business Insider
Moody's downgraded five Greek covered bond transactions today, amid ongoing tensions over private sector involvement in an orderly default that needs to take place by late March.
http://jlne.ws/yQk1F6

Goldman: U.S. Data May Look Better Than They Are
Bloomberg
A decline in unemployment and pickup in manufacturing point to accelerating U.S. growth. Some economists say the numbers may not be as good as they look.
http://jlne.ws/yDjT6n