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Serious problems with transparency, and the quality of data used for the CPI and property prices index prepared by China's National Bureau of Statistics. The statistics are seen as flawed by experts because they understate the serious property price bubble in China. It does this by diluting the large rises in big cities with smaller rises in smaller cities. From now on data will be published separately for each of the 70 cities that make up the index, and a new method will be used for calculating property prices that only looks at housing, not commercial property. For housing prices it will use data from online property registries, instead of a survey of transactions that earlier understated housing price increases.

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German chancellor Anglea Merkel selected her chief economic advisor, Jens Weidmann to head the Bundesbank, the German central bank. Weidmann replaces Axel Weber. Merkel prefers the quieter demeanor of Weidmann to the outspoken behaviour of Weber. Weber was Weidmann's tutor at the university, and at 42 is the youngest Bundesbank president. He headed the monetary analysis department at the Bundesbank and did a stint at the IMF, before joining Merkel's circle of close advisors. Weidman has a sense for markets and politics, and a close understanding of Merkel's policies. This would help Merkel as Germany sets the eurozone on a new path of reforms to build a firm foundation for the euro.

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Michigan's budget director, John Nixon, says the state is better positioned to handle deficit reduction because expenditures rose only 16% from 2001 to 2008, compared with a national average of 50%. Michigan's economy suffered from the decline of the auto industry during this period and careful spending had to take place. Michigan faces a projected $1.8 billion deficit next year. Republican governor Snyder plans to eliminate the state's business tax and impose a flat 6% corporate profits tax that woud reduce revenues by $1 billion, and impose a new tax on pensions to raise $900 million. Also planned are broad spending cuts, including cuts to the earned income tax credit and restructuring public employee benefits.

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There appears to be a split in the Iranian leadership about whether Iran should forge ahead with the development of nuclear weapons. National Intelligence Estimate findings, show that economic difficulties resulting from international sanctions may be causing some of the Iranian leadership to question the value of forging ahead with the nuclear weapons program. Iran cut subsidies sharply for fuel, electricity, and food in December 2010.

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Civil charges to be filed by securities regulators against Anthony Piszel, Freddie Mac's chief financial officer from 2006 to 2008.

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In an interview with the WSJ's Aaron Lucchetti, the CEO of a future business combination of Deutsche Bourse and NYSE Euronext, Duncan Niederauer, talks about the difficulties in naming the merged companies, the efforts to achieve a balance for the board, emotional issues about the ownership of the new company. He repeatedly emphasized that this is a merger not a takeover by Deutsche Bourse. This even though the higher market value of Deutsche Bourse at $15 billion compared to about $10 billion for NYSE Euronext, gives Deutsche Bourse 60% of the new company and 10 of 17 board members. He says he realizes the naming and related issues are emotional ones and there is a lot of pride involved in this. Placing Deutsche Bourse as in DB NYSE Euronext has been ruled out. The shareholder base will still be majority U.S., he reminds readers. And the board will have five or six Germans, five or six Americans, and five or six people from other countries. Is he brushing up on his German? No, he says but he tried to introduce his deputy CEO Dominique Cerutti in French, and its a good thing for Americans to learn other languages. Deutsche Borse's Francioni speaks three or four languages, which makes it a little humbling for him....

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The appointment of Jens Weidmann, Chancellor Angela Merkel's trusted economic advisor, to the position of head of the Bundesbank, the German central bank. Mr Weidmann at 42, is the youngest head of the Bundesbank. Opposition parties criticized the appointment of a trusted advisor to the central bank position, saying that it was a political appointment and reduced the independence of the central bank.

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Criticism of the Congress party administration in India led by prime minister Manmohan Singh, for lack of transparency and corruption scandals in the telecom and other fields.

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Demonstrations by public workers in Madison, Wisconsin. Public workers are protesting cuts in benefits by Republican governor, Scott Walker. Governor Walker is proposing legislation that will require public workers to pay more for health insurance and pensions, resulting in a reduction in take home pay of about 7%. He is also proposing changes that limit bargaining to basic wages, excluding benefits from bargaining. Wisconsin faces a deficit gap of $3.6 billion for the next 2 years.

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The stock market rally appears to have legs with the increase in revenue growth for the fourth quarter. But what supports this other than the Fed's bond buying, which suppresses the true cost of capital, is a question posed by analysts. Add to that transfer payments such as unemployment and other benefits which help sustain consumer spending levels, but are temporary measures. Charles Dumas of Lombard Street Research says GDP growth for the fourth quarter of 2011 could be more than 5% year on year. The question is whether this is pulling growth forward from later years, so that larger dips could be expected ahead? Brokerage firm LCM Commodities says transfer payments from the government to consumers were 16-18% of personal consumption expenditures between 1995 and 2007. This has jumped to 22% by the end of 2010.

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Mr Niederauer, CEO of NYSE Euronext, who will be the CEO of a combined NYSE-Deutsche Bourse, took pains to emphasize that it is a merger, a business combination arrangement, not an acquisiton. Because Deutsche Bourse current stock market value is $15 billion compared with about $10 billon for NYSE Euronext, Deutsche Bourse shareholders will get 60% of the combined company. The issues of ownership, the name of the new company and the headquarters and management team, are sensitive ones because the NYSE has traditionally been a symbol of America's role in the world of finance. American lawmakers want to see NYSE appear first in the new name to symbolize America's position in the world of finance. For this reason Deutsche Bourse will not appear first, and the headquarters will be dual headquarters in New York and Frankfurt.