Intervention and regulation

- Market Movers ahead 
• "In the US, the FOMC meeting is expected to largely maintain the status quo. The economy has not worsened enough for additional quantitative easing (QE)."
• "In Europe, PMIs and the German Ifo are poised to disappoint, suggesting growth is now easing."
• "In Asia, attention will be on possible further intervention from Japan. Japan could face criticism when global leaders gather for the UN meeting in New York."
• "We expect Norges Bank to keep interest rates unchanged at this week‟s meeting, but suspect the statement will be a bit more hawkish."
- Global update 
• "Japan intervened for the first time since 2004 and has so far been successful in stemming the appreciation of the yen." 
• "The Basel III proposal has eased fears that it forced banks to rush to raise capital and weigh on the global recovery." 
• "Encouraging data in the US and China ease fears of a double dip." 
• "However, data from Europe have been disappointing suggesting that growth is now slowing."
- Focus 
• "In the first Focus article, we look at leading indicators ability to predict G10 exchange rate movements. Our conclusion is that to some degree they can." 
• "In the second Focus article, we look closer at the sustainability of public finances in the US. Our conclusion is that fiscal tightening is needed but at this stage it is not urgent."

DenDanske Weekly Focus 20100917

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