This week is dominated by politics and brinkmanship. The fiscal cliff beckons once again, and no doubt a last minute resolution will be achieved - but if not, the NFP data on Friday could be a little thin! In Italy Silvio is trying to stay out of jail, and the ECB is also trying to do the same for the euro! Chinese data dominates along with Australia, so a great deal of focus on risk and risk assets. All in all, another interesting week for the markets, which appear, for the time being at any rate, to be taking a sanguine view to the whole business.