Today's Headlines

Bloomberg: 

• U.S. Debt May Rise as D.C. Dysfunction Draws Downgrade, UBS Says. Treasury yields, now at almost eight- month highs, are set to reverse course as political wrangling in Washington and a “likely” U.S. credit downgrade drive investors to the safety of government debt, according to UBS AG. “Treasuries are likely to rally over the next month or two,” Mike Schumacher, head of global-rates strategy at UBS, said in a Bloomberg Television interview on “Market Makers” with Erik Schatzker and Stephanie Ruhle. “The market doesn’t know how the political risk plays out.”
• Draghi Seeks Extended Calm in 2013 on Fading Euro Economy. European Central Bank President Mario Draghi will turn his attention to nursing the euro region back to economic health this week as the urgency to deploy emergency crisis measures recedes after three years.
• European Stocks Decline on Valuation.
• Copper Falls as Report May Show Weaker German Factory Orders. Copper fell for a third session in London before a report that may show German factory orders slid for a third month in four, fanning concern about the euro-zone crisis debt threatening to choke demand. The Economy Ministry in Berlin may say tomorrow orders dropped 1.4 percent in November, according to economists surveyed by Bloomberg.
• Gold Drops for Third Straight Session on Fed’s Stimulus Signals. Gold futures declined for the third straight session on signs that Federal Reserve policy makers may end monthly purchases of U.S. debt this year. The drop today followed the longest run of weekly declines since May 2004.

Wall Street Journal: 

• Obama Nominates Brennan for CIA, Hagel for Pentagon. President Barack Obama nominated longtime counterterrorism chief John Brennan to serve as director of the Central Intelligence Agency, placing a trusted aide at the helm of the spy organization. The announcement Monday afternoon came in conjunction with Mr. Obama's pick for defense secretary, former Republican Sen. Chuck Hagel. In choosing Mr. Brennan to succeed David Petraeus, who resigned last year after admitting to an affair, Mr. Obama is returning to a model of having a CIA director with close White House ties. Mr. Petraeus, a decorated four-star general, wasn't considered part of Mr. Obama's inner circle. 
• China Censorship Protests Widen. Protests by journalists over alleged heavy-handed censorship at one of China's most daring newspapers have garnered high-profile support in the media and blogosphere, with prominent academics, bloggers and even movie stars joining in.

Fox News:

• Obama Antagonizes with Hagel Pick. It’s an antagonistic selection, to be sure. Hagel is disliked by Republicans for his foreign policy attacks on the party during the Bush years and strongly opposed by pro-Israel groups for his seemingly neutral stance on the Arab-Israeli conflict. Hagel’s swaggering talk in a post-Senate interview about the “Jewish lobby” and its undue influence on American foreign policy is a huge red flag for Jewish Americans who work very hard to make the U.S. alliance with Israel something beyond the reach of culture and religion.

CNBC: 

• The New Way to Tax: Pay Per Mile Driven. Have you ever heard of the vehicle miles traveled tax? No? Well get ready to hear more about it, because the vehicle miles traveled tax, or VMT, is the latest way states are looking to make up for falling gas tax revenues.
• At CES 2013, the Connected Home of the Future.

Zero Hedge:

• Speculators Rush Into Risk By Most Since 2007. (graph)
• Fannie Says Household Financial Situtation Outlook Slumps To Worst Since August 2011.
• More Central Bank Gimmicks Exposed As European Collateral Shortage Deteriorates. 
• In Case There Was Any Confusion Just Who The Fed Works For...

Business Insider:

• Congressman To Introduce Law To Ban The Trillion Dollar Platinum Coin. 
• These 16 Companies Are Leading A Retail Revolution.
• John Boehner Says Obama Made A 'Miscalculation' That Could Haunt Him In The Next Big Fight.
• CREDIT SUISSE: 8 Key Indicators Suggest A Stock Market Selloff Is Near.
• These Poll Questions Show Why The GOP Thinks It Has A Huge Edge On The Debt Ceiling Debate. 
• EURASIA GROUP: Here Are The 10 Biggest Risks The World Faces In 2013. 
• CHART OF THE DAY: The Elements Of Social Unrest Loom Large Across Europe.

Reuters:

• Analysis: Doom scenario far-fetched but euro gloom to deepen. It would be fair to say that U.S. hedge-fund manager Kyle Bass does not expect the explosion in global debt in recent years to turn out well. "This ends through war," Bass, the founder of Hayman Capital Management in Dallas, said. "I don't know who's going to fight who, but I'm fairly certain that in the next few years you will see wars erupt, and not just small ones," he told a recent conference.
• AT&T(T) to launch home monitoring service in March.