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Friday, March 28

28th Mar - Deflationary signals in EZ, but not enough for ECB to act?

Previously on MoreLiver’s:

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Germany Starts To Look Vulnerable WSJ

Euro zone not preparing third Greek bailout so far: officialReuters

Great Graphic: The Herculean Task To Stabilize Debt/GDP RatiosMarc to Market
It may be penny wise but pound foolish for Germany to be reducing its debt now…it prevents stronger growth and weakens the commitment to the European project, of which EMU is a culmination of a more than 60-year effort. 

Schäuble revives push for eurozone integrationFT
Germany is pushing for changes to EU treaties “as soon as possible” after the May European elections, in an overhaul to fuse eurozone economic governance behind a budget chief and euro area parliament.

UK and Germany say EU reform must be fair to non-euro membersReuters
Germany joined Britain on Thursday in calling for EU reforms that are fair to EU countries outside the euro zone, bolstering British Prime Minister David Cameron's attempts to placate eurosceptics at home.

Threat of Deflation sends Euro to Three Week LowsMarc to Market
The main impulse, today, is the heightened deflationary risk in the euro area, sparked by Spanish and German state inflation figures.  The euro area's flash CPI will be reported Monday ahead of next Thursday's ECB meeting. 

German CPI data brings no relief for ECBMerkelnomics
The instruments the ECB has available in its toolbox largely look like illusionary giants: giant from a distance but rather unimpressive in terms of effectiveness, practicability and indisputability. All of this means that most likely outcome of next week’s ECB meeting is that the ECB will continue talking the talk in order not to have to walk the walk.

Too Much, Too SoonForeign Policy
The IMF is giving billions of dollars to Ukraine's cash-strapped government. Will that make the country's new rulers even weaker?

Crimea Resolution Backed by U.S. Barely Gets UN MajorityBB

Business climate broadly unchanged in March – EC
Consumer confidence increased markedly in March – EC
Economic Sentiment up in the euro area and broadly flat in the EU – EC
Surge in consumer confidence lifts euro zone economic sentiment – Reuters
Euro Area Economic Confidence Increases More Than Expected – BB

Spanish CPI shock flags euro deflation risksReuters
The euro slid to a three-week low and government bond yields across the euro zone fell on Friday as a surprise fall in Spanish inflation bolstered investors' bets the European Central Bank will ease policy next week to ward off the threat of a sustained bout of deflation.

Fed's Tarullo defends tough rules for foreign banksReuters

Fed’s Evans Sees Rate Increase in Second Half of 2015BB

Fed in No Hurry to Decide Mechanics of Rate IncreasesWSJ
Fed officials are moving slowly in discussions about how to manage the mechanics of interest rate increases once they decide to start tightening credit.

Consumer Spending in U.S. Increases by Most in Three Months – BB
Personal Income increased 0.3% in February, Spending increased 0.3% - Calculated Risk
PCE Price Index Update: Core Inflation Remains Far Below the Fed Target – dshort
Final March Consumer Sentiment at 80.0 – Calculated Risk
Michigan Sentiment Index Decreased to 80 in March From 81.6 – BB

Rate Differentials Getting TractionMarc to Market