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Thursday, January 15

15th Jan - Swiss abandon the 1.20-peg



Previously on MoreLiver’s:

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EUROPE
Euro area outlook for 2015: ECB will buy government bondsDanske Bank

Northern Lights - Uncharted territoryNordea
The need for further stimuli is on top of the agenda. In Norway further cuts seems like a done deal, whilst the Swedish case is less clear cut. The Finnish economy continues to exhibit broad based weakness and would welcome further stimuli from the ECB.

  SWITZERLAND ABANDONS PEG
Here’s the SNB’s Statement on Shock Move to Scrap Currency Floor – WSJ
Goodbye Swiss franc floor (UPDATED) – FT
Swiss Surprise – Marc to Market
Sack Thomas Jordan? – FT

Reaction: EURCHF floor breaks, SNB announces negative rates – TradingFloor
[earlier] Steen Jakobsen: The worst kind of love is the unwanted one – TradingFloor
Jakobsen: SNB move is rationality itself – TradingFloor
CHF Soars Most Ever After SNB Abandons Floor; Macro Hedge Funds Crushed – ZH
The SNB and the Russia/oil connection – FT

Analysts: Switzerland Deepens ‘Experiment With Unconventional Monetary Policy’– WSJ
Swissie Shocker: The SNB’s Drumbeat to Date – WSJ
End of CB Power – SNB Folds – Bruce Krasting
UBS: “SNB's Standing Undermined...There Could Be A Significant Deflationary Shock” – ZH
Floored by the Swiss Currency Move? – The Short Answer – WSJ

5 Big Issues Switzerland’s Currency Move Creates – WSJ
Swiss Stocks Crash 15%, Yield Curve Collapses, Negative Rates To 9 Years – ZH
So Much Changes In 48 Hours – ZH
Hardy: Swiss franc shatters ceiling: what next? – TradingFloor
Swiss central bank shocks markets with currency 'tsunami' – Reuters

On Switzerland, the Floor and Losing Faith in Central Banks – WSJ
What did the SNB do to EURCHF options markets? – FT
Citi: Did The SNB Just Suffer The World's Biggest Daily Loss Ever? – ZH
SNB Decision: "Absolute Idiocy" Per Gartman Or "Rationality Itself" Per Saxo – ZH
Economic Lessons From Switzerland’s One-Day, 18 Percent Currency Rise – NYT

Swiss Stocks Collapse Most In 25 Years: Surveying The European Close Carnage – ZH
George Magnus: Abandonment of the peg is history repeating itself – FT
Mayhem Erupts on Trading Floors After Swiss Central Bank Removes Cap on Franc – BB
Why Switzerland’s currency is going historically crazy – WaPo
Q&A: the Swiss central bank move explained – FT

Swiss stun markets and scrap franc ceiling – FT
El-Erian: Implications extend far beyond SwitzerlandFT

  EUROPEAN CENTRAL BANK
Quantitative easing in the Eurozone: It's possible without fiscal transfersvoxeu
Paul De Grauwe, Yuemei Ji: The ECB has been struggling to implement a programme of quantitative easing (QE) that would successfully target deflation. The main difficulty is political, stemming from opposition from German institutions. Their argument against is that a government bond buying programme by the ECB would mix fiscal and monetary policy. This column argues the opposite – such a programme can be structured so that it does not mix fiscal and monetary policy. It, therefore, would not impose a risk on German taxpayers.

Politics to trump law in QE decisionReuters

French Megabank: Without QE, “Eurozone Financial Markets Would Collapse”Wolf Street

UNITED STATES
  WSJ SURVEY
2015′s Biggest Risk? Economists Look Across the Pond – WSJ
Keep a Keen Eye on Wages, Housing and Fed in 2015 – WSJ
Economists Pare Back Fed Rate Rise Expectations – WSJ

REGULARS
Daily Central BanksWSJ
Hilsenrath’s Take: Falling 10-Year Yield Raises Doubts About Fed 2% Goal * Switzerland Scraps Currency Cap * Fed’s Rosengren Wants to Avoid Rate Increase Until Inflation Firms * Fed’s Beige Book: Continued Growth, but Some Slowing in Oil-Producing Areas * India Cuts Main Interest Rate

Daily MacroWSJ
The Swiss National Bank rocked European markets in early trade by abandoning its euro floor. Unable to resist the pressure of euro devaluation against the dollar, and with more likely to come as the European Central Bank prepares to launch quantitative easing, the SNB faced catastrophic losses on its mounting holdings of the eurozone currency if forced to abandon the one-sided peg sometime further down the line.

Danske DailyDanske Bank

Eye-OpenerNordea
European Court of Justice makes the doves smile * Taper tantrum moves fully reversed in US Treasuries * NOK rebounds

US OpenZH
"It's Turmoil" - Overnight Gains Wiped Out, Futures Trade Below 2000 On SNB "Shock And Awe"

OTHER
Business Cycle MonitorDanske Bank

29 Charts Worth Your TimeCFA Institute

FINNISH
AamukatsausNordea
EKP:n ostoskorissa saa olla myös valtionlainoja | Suomen inflaatio hidastui selvästi | USA:n vähittäiskaupan myynti laski laaja-alaisesti

Suomi maksumieheksi Kreikan taloussotkuissa? – PS:ltä välikysymys PS
Perussuomalaisilta välikysymys eurokriisistäVerkkouutiset
Perussuomalaisten eduskuntaryhmä on päättänyt jättää hallitukselle välikysymyksen eurokriisin hoidosta, Suomen vastuista ja Kreikan tilanteesta.

Suomi: Inflaatio hidastui selvästiNordea

Sveitsi löi hanskat tiskiin euron suhteenJuhani Huopainen

Sveitsi ja frangin arvon vapauttaminen – riskiasetelman keventäminen?Tyhmyri

Olli Herrala: Hienosti ovat asiat: tuloerot kapenevatKL

EU-tuomioistuin: Jäsenmailla ei ole veto-oikeutta EU:n toimielimien päätöksiinTyhmyri

Ekonomistilta suorat sanat: ”Kammottava” kuva kertoo Suomen hädästäUS



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