- China has allowed the yuan to appreciate slightly against the dollar just hours after U.S. Treasury Secretary Timothy Geithner said it was their choice. The yuan is now pegged at 6.8259 to the dollar, its highest point since last May.
- Paul Volcker said on Tuesday that he believes the U.S. should consider a VAT tax in the near future. He has also called for the consideration of a carbon tax in an effort to confront the deficit.
- Moody’s cut the credit rating of Los Angeles from Aa3 to Aa2, due to the discovery that the city has $73.5 million less future cash than expected. The murder rate has spiked in L.A., and some are suggesting it is the result of budget cuts to the city’s police force.
- Greece continues its chaotic trend with yields on the country’s 10-year sovereign debt reaching 7.2%. The country has now pledged support for the IMF-EU package, which it suggested it had some doubts in.
- A key peak oil theorist has dropped his beliefs, and instead become a peak demand theorist. Colin Campbell’s turnaround was based on the his discovery that economic demand does have an impact on oil pricing. Oil prices are slightly down this morning.
- The European economy continues to show a slowing growth trend vis-a-vis the U.S. market. The European common market’s growth fell 2.3% against the previous year’s Q4.
- A magnitude 7.7 earthquake hit off the coast of Indonesia last night, though tsunami warnings have abated. The 2004 tsunami quake, which killed 230,000 people, was a magnitude 9.2.
- Renault, Nissan, and Daimler have struck a technology sharing partnership in which the three automakers will produce vehicle technology together. The companies have also taken 3.1% stakes in each other.
- Apprehension ahead of Fed Chairman Bernanke’s speech has led market futures lower this morning. The DJIA, NASDAQ, and S&P’s futures are all down slightly.
- Goldman Sachs has yet again denied betting against its clients. This, even though its known that the firm shorted the housing market prior to the crash while still selling long products to its clients.
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