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A credit rating agency does something

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  • Some credit rating agency or other has downgraded the European Union's rating below AAA. Economically, of course, this does not matter. Politically it may rally the forces calling for fiscal discipline, and therefore add to the tensions of the European Council meeting.
  • The aftermath of the Federal Reserve's decision to taper next month has seen short term bond yields remain fairly stable. The issue is what happens to longer term bond yield outside the United States over 2014, and how much volatility is evident in financial markets generally.
  • There are still some noteworthy data points today. French business confidence is due. The PMI confidence data has been weak, but this has not been consistent with other confidence measures. The UK and the US both offer final Q3 GDP figures.
  • This markets the final economics call for 2013. Normal service will resume in January. Have a happy Christmas and as prosperous a New Year as economic circumstances will allow; and to everyone who has tuned in over the course of this year, thank you for listening.

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