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Thursday, January 30

30th Jan - Post-FOMC USD strength



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EUROPE
Denmark: Government in crisis, but no change in policy is likely – Danske Bank

9 questions about Ukraine you were too embarrassed to ask – WaPo

  LIIKANEN REPORT
What Does Europe’s ‘No Prop Trading’ Plan Mean? – WSJ

Europe’s Banking Risk Plan Is a Long Shot – NYT
EU revealed a long-awaited proposal to reduce the systemic risk posed by big banks like the Volcker Rule in the United States, but it may be a long time before the European Parliament considers it.

Europe's New Volcker Rule Enrages Everyone Equally – View / BB

The long lost Liikanen report returns – but it looks pretty different – Open Europe

  MACRO NUMBERS 
Euro zone morale climbs as recovery strengthens – Reuters
European sentiment: it's getting better – TradingFloor
German Joblessness Fell More Than Forecast in January – BB

UNITED STATES
HY bond market weathering the storm – Sober Look
Experienced analysis and investors in this space openly admit that it's just a "matter of time" before this market "cracks". It simply needs a catalyst, such as a large unexpected corporate default. Maybe a major event in the sovereign bond market could dislodge HY.

  FEDERAL RESERVE
How Were Fed Forecasts? Too High, Too Low and Just Right – WSJ
In December 2012, Federal Reserve officials predicted where GDP, unemployment and inflation would be in 2013. Here’s a report card on how the Fed did in its predictions.

Timeline: Fed's Bernanke saw U.S. economy through turbulent times – Reuters

  GROSS DOMESTIC PRODUCTION
Good GDP, Soft Deflator – Marc to Market
Q4 GDP Declines To 3.2% As Expected; Final 2013 GDP 1.9%, Down From 2.8% In 2012 – ZH
GDP Q4 Advance Estimate: A Solid 3.2% - dshort
Real GDP Per Capita: Another Perspective on the Economy – dshort
5 Takeaways From the GDP Report – WSJ
Economists React: Fourth Quarter GDP ‘Pretty Impressive’ – WSJ
US GDP: Households decisive as federal spending plummets – TradingFloor
Q4 GDP 3.2%, Weekly Initial Unemployment Claims increase to 348,000 – Calculated Risk
Q4 GDP: Solid Report, Positives Looking Forward – Calculated Risk
Visualizing GDP: The Consumer Helped Balance Inventories – dshort
Households, trade keep U.S. economy humming in fourth quarter – Reuters

EMERGING MARKETS
Asia enters an age of increasing uncertainty – The A-list / FT

EM turmoil: It ain’t over till the Chinese lady sings – Danske Bank

Calm Broken in Markets Amid Concerns of Emerging Contagion – BB

Emerging Markets - Emerging Crisis or Media Hysteria? – dshort

Record Cash Leaves Emerging Market ETFs on Lira Drop – BB
More than $7 billion flowed from ETFs investing in developing-nation assets in January, the most since the securities were created,

Goldman Sachs: Here’s a History Lesson of Emerging-Market Pullbacks – WSJ

EMEA Weekly – Danske Bank
The tightening of monetary conditions to prop up the EM currencies will potentially have very significant negative effects on EM growth in general.

Devaluation stations: Et tu China? – alphaville / FT

Following Failed Turkish Central Bank Intervention, Verbal Diarrhea Follows – ZH

Capital controls not on agenda in Turkey: senior government official – Reuters
Turkey is not considering any sort of capital controls as it battles to defend the lira, a senior government official said on Thursday, after Prime Minister Tayyip Erdogan said an "out of the ordinary" economic package could be announced soon.

Another look at EM flows – alphaville / FT

Rajan Warns of Policy Breakdown as Emerging Markets Fall – BB
India’s central bank Governor Raghuram Rajan (former IMF chief economist) warned of a breakdown in global policy coordination after the Federal Reserve further cut stimulus, weakening emerging-market currencies from the rupee to the Turkish lira.

Steen Jakobsen: Russia a catalyst for EM and global troubles – TradingFloor
EM crisis unlikely to go away * Devaluation worries gather momentum * Hike in interest rates a disease

  MACRO NUMBERS
HSBC China Manufacturing PMI – Markit
The Carnage Continues In Asia As China PMI Confirms Contraction Deepening – ZH
China Manufacturing Back in Contraction – Mish’s
PMI dips to six-month low in January as new orders weaken – Reuters

OTHER
Commodities Update – Danske Bank
Commodity markets ignore further Fed tapering

YTD Change in Sovereign Default Risk – Bespoke

FINNISH
Talouspolitiikan arviointineuvosto perustettu – Akateeminen talousblogi

Talousviisaat: Sopeutustarve 0 – 1,5 miljardia euroa ensi vuonna – Verkkouutiset
Valtiovarainministeri Jutta Urpilaisen (sd.) johdolla torstaina järjestettyyn talousfoorumiin osallistuneiden talousviisaiden mukaan valtiontalouden lisäsopeutuksen tarve ensi vuonna on 0 – 1,5 miljardia euroa.

Kommentti: Jutta U. piti seminaarin – hellurei , velat seuraavan hallituksen niskaan! – MTV
Urpilainen (sd.) piti seminaarin, joka oli kuin tilaustyö: säästöjen ja velkaantumisen lopettamisen kanssa ei pidä hoppuilla, joutaapa seuraavakin hallitus ne hoidella.

Tilanne ja näkymät 1/2014 – Teknologiateollisuus
Teknologiateollisuuden liikevaihto jäi Suomessa viime vuonna pienemmäksi kuin vuonna 2012. Tarjouspyyntöjen kasvu antaa heikkoja signaaleja paremmasta. Teknologiateollisuuden yrityksissä ollaan varovaisen toiveikkaita siitä, että pohjakosketus olisi takana.

Turha Turkin koronnosto – Henri Myllyniemi / US

Olli Rehn eurokriisin hoidosta: "Itsekritiikkiin on syytä" – TalSa
Talouskomissaari Olli Rehn myöntää, että eurokriisin sammuttamisessa on tehty virheitä. Hän ei kuitenkaan sulata akatemiaprofessori Kaarlo Tuorin kritiikkiä demokratiavajeesta ja sosiaalisten oikeuksien polkemisesta.

Kipua ja hävitystä – Morningstar
Kehittyvien maiden kurssipudotus on tuntuva, muttei vielä lähelläkään finanssikriisin kaltaista rysähdystä.