By: Gerry Davies

EU's Barnier:  ECB should be able to supervise any bank German FinMin Schaeuble: Would be very difficult to get approval by German parliament if all banks were included in supervision by ECB EU finance ministers unlikely to reach deal on banking supervision on Tuesday - EU officials (who wud have thunk it?) Merkel: 'Turbulent times' with euro and other 'challenges' More Merkel:  Nobody can say when euro sovereign debt crisis over.  German economic growth next year to weaken Even more Merkel: Euro crisis can't be solved overnight Spain's De Guindos: Banking union is fundamental to end doubts over the euro.  Eurogroup recognizes Spanish budget and reform efforts Spain's November jobless rises 1.5% m/m. By 74,296 people to 4.9 mln.  Median forecast had been for 90k ECB's Nowotny:  Fears contraction of economy in Southern European countries will continue in 2013 More Nowotny: Euro functions as currency Even more Nowotny: Yields too high in periphery, too low in core UK November construction PMI falls to 49.3 from 50.9 in October, weaker than Reuter's median forecast of 50.5 Greek coalition under pressure again as splits appear over new tax bill - ekathimerini EUR/CHF up at 1.2125 from early 1.2090, having been as high as 1.2145. Early scuttlebutt had a major Swiss bank to impose 1.0% charge on swiss franc balances over 100 million francs.  This morphed into major Swiss bank to charge a minimum of -0.75% on institutional bank holdings over 100 million francs.  This got us to 1.2145. Then bank in question attempted to clarify situation by announcing it will set negative rates on an individual basis.  This saw EUR/CHF marked lower. EUR/USD garnered some underpinning from the EUR/CHF rally and lower periphery govt bond yields.  We're up at 1.3080 from early 1.3055, having been as high as 1.3086 so far.  Talk of sell orders ahead of 1.3100 barrier option interest. USD/JPY fractionally lower at 81.95 from early 82.05 having been as low as 81.87. Talk of sell stops through 81.85 before buy orders clustered 81.50/70.  Talk of more sell stops through 81.50. Got a feeling they could be fairly lumpy (sizeable)