US super committee fails to agree on measures to reduce the national deficit by $1.2 trillion

After the US bell yesterday, an official email statement was released confirming that the deficit super committee failed to reach common ground. President Barack Obama appointed this group of politicians three months ago, presenting them with the task of preparing a bipartisan draft plan that suggests the necessary measures to reduce the national deficit by $1.2 trillion over the next 10 years. The committee was unable to reach an agreement regarding the required measures, as the Republicans were in strong opposition to tax increases, especially those that concern the richest Americans, while the Democrats were against reductions in the federal retirement and health care benefits areas. 

IMF unveiled two line credits in order to bolster the flexibility and the scope of the institution lending toolkit, to provide liquidity and emergency assistance to its members. The institution intends to provide countries with more finance in case they need to deal with short-term emergencies. The reforms will replace the Precautionary Credit Line with the Precautionary and Liquidity Line (PLL). Members under the PLL could request funding for six months for an amount five times the country’s contribution to the IMF, the quota.

Economic data

UK BBA Mortgage Approvals, which are to be released today, are predicted to fall from the previous market level of 33.1k, which is still above the consensus level, yet is likely to have a negative effect on GBP today. Also today's release of the latest BOE meeting minutes and tomorrow's GDP report should contribute towards some volatility in the pound.

The US Census Bureau will release the Durable Goods Orders data for October today at 13:30 GMT.  Analysts expect the indicator to have remained unchanged in October, after falling for two consecutive months. Total U.S. factory orders (both durable and non-durable) are closing in on the prerecession peak, off just 6.5 present from the high-water mark in June 2008. The larger nondurable component has fared better than durables. Orders for durable goods are presently 18 percent smaller than they were at their height in December 2007.

US Core Personal Consumption Expenditure - Prices index (YoY) is predicted to remain flat, 0.1% below consensus level. Prices Index (MoM) for October is also predicted to remain flat, 0.2% below consensus level.

Eurozone Industrial new orders (YoY) is predicted to fall by 0.1% to the consensus level of 6.1%, which is likely to have a negative effect on the Euro today.

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