The Day Today 7 Jan 2015

* Dutch newspaper reports ECB looking at 3 options for QE:
1) ECB buys Govts in proportion to their shareholding in the central bank
2) ECB buys only AAA-rated Govts, taking their yield negative and pushing yields of other Govts lower
3) As for option 1, but national central banks buy the bonds rather than the ECB, theoretically leaving the credit risk within nations

* ‘Unnamed government sources’ say Germany is preparing contingency plans for Greek exit, including the possibility of a bank run in Greece

* Goldman Sachs predicts a Conservative victory in May, as they think UKIP voters won’t go through with it in the polling booth [how enlightening]. They say the outcome is “more uncertain than any in 100 years” [Blondemoney readers already know that, but as GS talks to rather more people this might see hedging strategies pick up]

* UK shop prices keep falling, -1.7% in Dec, vs the record low of -1.9% in Nov, according to BRC
* Demand for mortgages plummets in Q4, according to latest BOE Credit Conditions survey

* S Korea FinMin says oil price decline positive for economy

Personnel changes at the Fed:
* Thomas Laubach promoted to top monetary-policy strategy adviser position – Yellen credited him with the idea of linking zero rates to the progress towards meeting unemployment and inflation goals; Bernanke was his thesis adviser in the 90s
* Obama taps community banker Allan Landon for the Fed Board

* Finra to investigate US bond trading

* Bill Gross says 2015 is going to be terrible, thanks Bill

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