EFSF’s Regling Speaks in Brussels

• EFSF has increased its funding flexibility.
• EFSF to use both leverage approaches simultaneously.
• Will enter a short-term market in December.
• Not possible to give one number on EFSF leveraging.
• Bond guarantees to be 20%-30%.

EU’s Juncker says ministers made important progress today.

• Commends Ireland on progress on their reform program.
• Ireland disbursement is expected in January.
• Agreed on Greek disbursement.
• Euro-area ministers agreed on Greek disbursement.
• has full confidence in Italy’s Monti.
• Looks forward to Belgium soon having government.
• Belgium has “done the necessary”.
• Important progress has been made on the EFSF.
• Eurogroup agreed on EFSF leverage options.
• Has no particular concern about Italy or Spain.
• Continue to explore options to leverage the EFSF.

FED’s Williams speaks to reporters in San Francisco

• Europe is “key downside risk” to the global economy; weaker than the previously thought.
• Operation twist was a “move in the right direction”.
• China and emerging nations have a strong basis for growth.
• Fed policies are not a “panacea”.
• Sees “pretty big” downside risks to the outlook.
• Some nations have done well with interest rate projections.
• Fed has the option to publish interest rate projections.
• Communicating the future path of interest rates would be “useful”.
• “Beneficial” to do adjustable asset purchase plan.

New Zealand building consents (m/m) 11.2% vs. -17.1% prior.

Kiwi firmer following the release.

Mexico central bank suspends monthly dollar auctions; will sell $400M daily whenever the FX rate falls more than 2% vs. the previous day.

USD/MXN trading sharply lower at 13.8500 from 13.9500 before the announcement.

October Federal Reserve Minutes

• Kansas City Fed Directors voted to raise Discount Rate to %1
• Eleven Fed Banks voted to maintain Discount Rate at 0.75%
• Fed Governors expressed “no sentiment” to raise Discount Rate
• Some Fed Directors noted retail sales stronger than anticipated
• Regional Fed Bank Directors noted “modest” gains in economy
• Fed Directors expected Growth to remain “slow and uneven”
• Fed Directors expressed concern about labor market weakness
• Fed Directors said Longer-term inflation expectations stable

Talking Technicals with James Chen – Webinar Rebroadcast

Please click on the following link to view the rebroadcast of today’s Talking Technicals with James Chen. This webinar featured T.P.B. and the Deep Pullback strategy . Please click here to access: https://www1.gotomeeting.com/register/549814968 .

Greek Aid Payment Cleared by Euro-Area Ministers, Officials Says