A European fudge, now in focus: While Athens burns and Spaniards march, Alex White of JP Morgan seems to have identified the real reason market nerves across Europe are a-jangle once more. It's down to the divisions within Europe over whether the ESM should shoulder the burden of existing impaired bank assets. Paul's post has the details. A bear bath: We know you've been dying to see SocGen's Albert Edwards musing over how "the Fed will destroy the world," while sitting in a bath and waiting for the equity markets to join him. David's post has the photo. Some Danish negativity consequences: Remember when Denmark's central bank went negative, back in July? David's post takes a look at the longer term consequences of the rate cut. The Chinese central bank has injected a record amount of money into the financial system this week to alleviate a cash crunch that had driven up borrowing costs, the FT reports. The People's Bank of China has poured Rmb365bn ($58bn) into money markets over the past three days through reverse repurchase agreements, the largest weekly amount in history. The survey is the strongest sign yet that the looming "fiscal cliff," created by the failure of Congress to agree new tax rates or a long-term budget deal, is hurting companies" ability to plan and make investment decisions, writes the FT. Spain: Mariano Rajoy will on Thursday attempt to stave off a backlash from financial markets by announcing budget plans for next year, as the Spanish prime minister faces the most testing 48 hours of his nine-month-old tenure, the FT says. Santander Mexico: The dual US and Mexico share offering of Banco Santander's Mexican arm raised $4.13bn in the world's third-largest market launch this year, with the stock defying weakness on global exchanges to end first day trading up 6 per cent, the FT reports. An ex-Credit Suisse banker was arrested in London: Kareem Serageldin, the former head of Credit Suisse's structured products group and a US citizen is accused of inflating the value of mortgage securities during the financial crisis, reports the FT. Myanmar: The US will start lifting a ban on imports of goods from Myanmar, secretary of state Hillary Clinton said on Wednesday, providing a huge potential boost to the once-isolated south-east Asian nation, reports the FT. Markets: Risk assets have stabilised after their midweek wobble, as a more stoic assessment of the latest surge in eurozone fiscal tensions takes hold, writes Jamie Chisholm in the FT's Global Market Overview. The FTSE All-World equity index is up 0.3 per cent as the FTSE Eurofirst 300 sees a gain of 0.3 per cent, following a 0.8 per cent bounce for the Asia-Pacific region. Wall Street's S&P 500 is due to advance 0.4 per cent, according to futures trading, and the dollar index, often a concise inverse barometer of the broader market's mood, is down 0.1 per cent. This entry was posted by FT Alphaville on Thursday, September 27th, 2012 at 10:46 and is filed under Uncategorised.