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Fed exit plan BBG article …
China – Industrial Production, Retail Sales above market expectations for November
Official China Data showing restrained Price Pressure – out now
Berlusconi throws has hat back into the ring
Monti to resign after budget passed

Posted: 08 Dec 2012 10:31 PM PST

Interesting article from weekend Bloomberg about Fed exit plans (can we call them QExit?). Some quotes:

The bigger the balance sheet, "the riskier the exit becomes," Richmond Fed President Jeffrey Lacker

… a too-rapid sale of assets risks disrupting the $5.2 trillion market for agency mortgage debt.
"They have to find ways of unwinding the balance sheet without dumping all of it in the marketplace," said Memani, (director of fixed income at OppenheimerFunds Inc)
"The more they add to the balance sheet, the longer it will take to normalize," said Hanson (a senior U.S. economist at Bank of America Corp.)

Fed Exit Plan May Be Redrawn as Assets Near $3 Trillion

(h/t In The Bernank We Trust in the comments)

China – Industrial Production, Retail Sales above market expectations for November

Posted: 08 Dec 2012 10:18 PM PST

Further (official source) signs that a hard landing in China looks like being avoided:

Industrial Production YoY (China Valued Added of Industry) for November 10.1%

Prior 9.6%
Expected was 9.8%

–

YoY China Fixed Assets Investment (excluding Rural Households) for November 20.7%

Prior 20.7%
Mkt expected 20.9%

–

November Retail Sales (YoY) 14.9%

Prior 14.5%
Mkt expected 14.6%

Official China Data showing restrained Price Pressure – out now

Posted: 08 Dec 2012 05:43 PM PST

0130GMT – official data out of China is showing restrained price pressures – the PPI is showing pricing falls.

Chinese November YoY CPI is 2.0%; Prior result was +1.7%, Mkt expected +2.1%
China YoY PPI is -2.2%; Prior result was -2.8%, Mkt expected -2.0%

We have more data from China coming up at 0530GMT: