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Friday, January 16

16th Jan - Markets still rolling on SNB



Previously on MoreLiver’s:

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EUROPE
The Danish peg is indisputableDanske Bank

Euro area outlook for 2015Danske Bank
Impact of broad-based QE

ECB’s Cœuré: Eurozone will ‘always be fragile’ without SuperstateCraig Willy

Two Greek Banks Request Emergency Liquidity AssistanceZH
A Greek YearnMarc to Market

  SWITZERLAND ABANDONS PEG
SNB allows massive CHF strengthening – Nordea
Swiss currency shock: blame the bank in Frankfurt not ZurichThe Guardian
10 Takeaways From Lagarde’s Swipe at the Swiss National Bank – WSJ
Trust Me, I’m a Swiss Central Banker – Polemics pains
Soaring Swiss franc causes havoc on currency markets – The Conversation

The SNB Removes the Cap – Econbrowser
Here's What the Swiss Central Bank Just Did and Why It's Such a Shocker – Businessweek
Swiss National Bank Shocks the World – BB
Regime Change in SwitzerlandKrugman / NYT
A Franc Question: What Was the SNB Thinking? – WSJ

Was the SNB's decision a deal with the ECB? – TradingFloor
Regime Change in SwitzerlandKrugman / NYT
Still Trying to Make Sense of SNB's Bombshell – Marc to Market
Francs, fear and folly – Krugman / NYT
Regime Change in SwitzerlandKrugman / NYT

What The Soaring Swiss Franc Means For Hungarian And Polish Mortgages – ZH
The SNB has skewered the ECB – TradingFloor
If it walks like a duck and quacks like a duck – Scott Sumner
The Swiss Just Made Things Worse for the Euro – BB
Switzerland 'capitulates' on franc as global currency wars take next victim – The Telegraph

World deflationary forces have swept away Switzerland's defences – The Telegraph
Euro shaping to be the biggest casualty of Switzerland’s decision – BB

  EUROPEAN CENTRAL BANK
ECB’s Knot Supports QE if National Banks Buy Country’s Bonds – WSJ
Knot: Greek Debt Will Not Be Included In Bond-Buying Plan – ZH
European Central Bank Preaching to the Unconverted – WSJ

UNITED STATES
Consumer Prices Tumble Most In 6 Years, Core Inflation Misses – ZH
U.S. consumer prices post biggest drop in six years – Reuters
Core CPI held down by temporary factors – Nordea
Industrial Production Drops By Most In 11 Months (After Biggest Surge Since 2010) – ZH
Fed: Industrial Production decreased 0.1% in December – Calculated Risk
Despite Dismal Retail Sales, US Consumer Are The Most Exuberant In 10 Years – ZH
Preliminary January Consumer Sentiment increases to 98.2 – Calculated Risk

REGULARS
Daily Central BanksWSJ
Hilsenrath’s Take: Swiss Franc Fallout Exposes Crack in Post-Crisis Regulatory Reforms *Swiss Franc Move Sets Markets Quaking * Ex-Fed Stein Hedges June Rate Increase Prediction * Europe’s Smaller Central Banks Likely to Cut Rates After Swiss Move * EU Consumer Prices Fall for First Time on Record

Daily MacroWSJ
The fallout continues from the Swiss National Bank’s decision to abandon its euro floor Thursday… Meanwhile, more evidence of deflation in the eurozone is bolstering expectations that the ECB will step up and announce a major bond-buying effort, precisely the euro-weakening project that put the SNB under pressure to change policy.

Danske DailyDanske Bank

Eye-Opener: Surprising SNB, astonishing market moves, rallying bondsNordea
SNB allows massive CHF strengthening * ECB’s -0.2% looks high in light of the SNB’s actions * CHF to re-weaken

Daily Shot: What was behind the Swiss surprise?TradingFloor
The big news across financial markets continues to be the Swiss National Bank's unprecedented, sudden removal of the EURCHF cap. The move has caused risk-off sentiment to increase, much to the benefit of precious metals bulls. Meanwhile, Chinese investors continue to boost that country's markets, with increased retail investment driving margin debt.

US OpenZH
Global Markets Weighed As Damage From SNB Evaluated, FX Brokers Carried Out

FX Update: The day after TradingFloor
The Swiss National Banks’s rude abandonment of the Swiss franc ceiling yesterday will go down in the history books as the single most traumatic one-day event in currency history. The consequences from this move will be widespread.

From the floor: Swiss roll over world marketsTradingFloor
The big story from the floor today is obviously the aftershock that has followed the Swiss National Bank's surprise decision to end its cap on the Swiss franc. According to Saxo Bank head of forex strategy John Hardy, traders seeking equilibrium might look to euro/Swiss franc parity as a starting point. Meanwhile, gold is surging on "safe haven" sentiment.

OTHER
European FI Strategy: The elephant is finally movingNordea
Our last 2014 edition was called ”Volatility – Back for good” on the heels of the events in mid-October. That conjecture has been validated, in particular for the short end of the inflation market, and long nominal rates, and we expect realized volatility to be substantial. We see QE coming next Thursday, and expect a credible package from Draghi et. al. Short EUR rates, already down on liquidity expectations have got another push via today’s SNB-decision

Yield Forecast UpdateDanske Bank
Denmark to cut twice after SNB move and more QE from ECB

Kay Van-Petersen: Never trust a Swiss central bankerTradingFloor
In a surprise move, the SNB removed its peg to the euro and lowered its deposit rates * Expect earnings downgrades to come across the board for Swiss equities * Some form of QE is now a given from the European Central Bank

EURUSD Tumbles Below 1.15, Near 12-Year LowsZH

FINNISH
AamukatsausNordea
Sveitsin keskuspankki yllätti ja yllättyi | Tänään luvassa USA:n inflaatiolukuja | Teollisuuden luottamusindeksit ristiriitaisia USA:ssa

Tässä tulee Wahlroosin työlista poliitikoilleTE
Yhteisövero puoliksi, verovähennyksiä pienituloisille ja perintövero 

Perussuomalaiset Wahlroosin listasta: Syöksykierre vain jatkuisiTE

Halla-aho esitteli maahanmuuttotavoitteitaPS
On vielä mahdollista välttää Ruotsin, Ranskan tai Britannian katastrofi

Soini kiersi kysymystä Kreikan velkahelpotuksista – "ei yhtään uutta lisälainaa"Verkkouutiset
Perussuomalaisten puheenjohtaja Timo Soini jätti Ylen A-studion Talk -ohjelmassa ovea raolleen Kreikan velkahelpotuksille.

Sveitsi erosi eurokytkennästä - "nyt monet tulkitsevat, ettei eurolla olisi tulevaisuutta"Verkkouutiset
Saksalaisen taloustieteen professorin mukaan Sveitsin keskuspankin päätös irrottautua eurokytkennästä tulkitaan merkiksi, että eurolla ei ole tulevaisuutta.