In the US, Richmond Manufacturing Index, Manufacturer’s Monthly Survey to rate business conditions such as shipments, new orders etc., rise that shows condition improvements by 3 points up to 6 points this month.

After talks about the Greek haircut broke down last week, they resumed and apparently yielded a deal. Also Spain’s auctions distanced it from the danger zone and helped the euro. Yet in Greece’s case, it’s important to remember that a 50% haircut isn’t a 50% reduction of debt, and that only the fragile banks will suffer and not the ECB. Not yet.

In the US, Unemployment Claims, weekly report that is important for monetary health, value new unemployment insurances over the last week, decrement is due from 381K down to 375K now.

Italy had another bad bond auction. It’s not that yields jumped, but if they remain at current levels, the euro-zone’s third largest country will find itself in a debt trap that can bring the whole system down. The pair ended the year over 400 pips lower. Will 2012 see more falls?

Here’s a quick update on technicals, fundamentals and what’s going on in the markets.

In the US, Unemployment Claims, weekly indicator to value the individuals who filed for number of unemployment insurance submissions on the past week, rise of 1K is expected up to 389K.

Fresh GDP figures have shown that the recession hasn’t arrived to Europe in Q3 although Italy is hiding its figures. The chances are much higher in Q4 as the debt crisis is spilling into the real economy with bond yields screaming in every country apart from Germany. This isn’t only the prices in secondary markets: bond auctions are reflecting the sustainability of the debt. Italy has a new government, but the powers of Mario Monti are limited. Europe is awaiting another Mario: Mario Draghi – the president of the ECB. Will we see European QE? Perhaps via the IMF.

Here’s a quick update on technicals, fundamentals and what’s going on in the markets.

In the US, William Dudley, Federal Reserve Bank of New York President, is due to deliver a speech in Bronx.

The potential haircut for Greece can reach 60%. Bank recapitalization is between 100 and 200 billion euros, but the big dispute is about the EFSF bailout fund, its uses and its leverage. Germany and France are working on a solution. A happy compromise might not be sufficient to settle the markets.  Here are 4 reasons why the summit will fall short.