Denmark Throws A Fit Over Liquidity Rules

Did China Intercede on the United States' Behalf with North Korea?(Wall Street Journal) "The U.S. government believes China intervened with North Korea to
tamp down growing tensions on the peninsula—a sign, officials said, that Beijing may be willing to take a tougher stance toward its erratic neighbor. "


Irish Government Pours another €3.7 Billion into Banks (Wall Street Journal) "Ireland's Finance Minister Brian Lenihan Thursday announced plans to recapitalize Allied Irish Banks PLC by €3.7 billion ($3.93 billion) to meet the financial regulator's year-end capital requirements, effectively making it the fourth Irish lender to be nationalized."

'Grotesque' Basel Rules May Kill Danish Bonds (Bloomberg) "Denmark says the Basel Committee on Banking Supervision’s rules will force the country’s lenders to dump top-rated mortgage debt to meet liquidity requirements and may destroy the world’s third-biggest covered-bond market.

Oil $90: What are the Economic Risks?(Wall Street Journal) "Rising demand for petroleum—notably from U.S. motorists and Chinese manufacturers—has helped push oil above $90 a barrel for the first time since the early days of the financial crisis. The recovery in oil prices is an encouraging sign of world growth, but the spike in crude, if unchecked, also could pose problems for consumers whose incomes remain pinched. Crude oil closed above $90 on the New York Mercantile Exchange on Wednesday for the first time since October 2008, after prices fell in the early months of the financial crisis and global recession."

"Stocks flirt with pre-Lehman crash levels"(Financial Times) Don't worry, be happy, folks. "Global stocks are brushing their best levels in nearly 27 months, before the collapse of Lehman Brothers, as investors continue to place bets that better economic growth in 2011 will power equities yet higher. The FTSE All-World index is up 0.1 per cent to 216.4, though commodities are somewhat soft as the dollar shows mild strength. US equity futures are flat. Many investors remain convinced that the recent improvement in US data enhances the prospects for a more stable business environment at the start of the new decade, providing further upside for stocks and commodities. Worries about the eurozone debt crisis have been placed to one side. A threat of “holy war” from North Korea has been received with bemusement rather than fear."