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Saturday, January 24

23rd Jan - Markets still adjusting to ECB's QE

Previously on MoreLiver’s:

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Much Too Responsible Krugman / NYT
The thing that strikes me about Europe’s archons of austerity, its doyens of deflation, is their self-indulgence. They felt comfortable, emotionally and politically, demanding sacrifice (from other people) at a time when the world needed more spending. They were all too eager to ignore the evidence that they were wrong.

Guest post: Europe – what a state we are inFT
Timothy Ash: While we all enjoy the ECB-inspired feeding frenzy across all risk assets this week it might be well to remember why Mario Draghi opted for yet another extraordinary measure in line with the message that he will do “whatever it takes”. Indeed, it is perhaps a reflection of the immense challenges facing Europe that he is betting the bank and, especially, other peoples’ (Germans’) money. Europe is in the worst state it has been in at any point in the entire post WWII era.

Greek choices after the electionsBruegel
There is a chance for an agreement between the new Greek government and euro-area partners with both sides claiming victory at home

How Super Was Mario? (Wonkish) – Krugman / NYT
ECB's bazooka in detail and market implications – Danske Bank
Mario Draghi's latest (and last) stunt? – Merkelnomics
Confidence and the Bazooka – Francesco Saraceno
George Magnus: ECB's last throw of the dice – Nikkei Review
James Saft: ECB QE, small but imperfectly formed – IFR

Results of the Q1 2015 ECB Survey of Professional Forecasters – ECB

FOMC preview: Fed to stick to mid-2015 hike scenario Nordea
Will the Fed turn more dovish next week? For financial market participants, the answer seems to be a clear yes. We, however, don’t think so. Both falling oil prices and the ECB’s new bold QE programme strengthen, rather than weaken, the case for lift-off in Fed rates later this year, in our view. The Fed will probably applaud the ECB’s move, even if it implies further strengthening of the USD.

Daily Central BanksWSJ
Hilsenrath’s Take: On Day One of ECB QE, Draghi Gets Much of What He Wanted * ECB Unveils Stimulus to Boost Economy * Why Should Americans Care About ECB Policy Moves? * Denmark Cuts Main Interest Rate Again * Eurozone PMI Data Show Pickup in Activity

Daily MacroWSJ
Equities and bonds continued to rally while the euro tumbled yet further. If there’s a worm in the apple, it’s that the ECB’s policy won’t be reinforced by a fiscal spending program as Abenomics has been in Japan, while necessary economic restructuring continues to move slowly in the single-currency region.

Danske DailyDanske Bank

The day the ECB delivered Inflation expectations finally rebounding EUR/USD in free fall

ECB Drives Markets – Marc to Market

Euro Crash Continues Sending Stocks Higher, Yields To Record Lows; Crude Stabilizes On New King's Comments

FX Update: How low can the euro go? – TradingFloor
It seems the only question now is how low can the euro go after Draghi’s bazooka was rolled out yesterday and duly impressed the market. We may actually find near-term support soon as the market ponders next Wednesday’s FOMC risks.

FX forecast update: ECB cements Japanese pricing of the EURNordea
The final delivery of an aggressive QE program from the ECB should keep the EUR on the back foot for the foreseeable future. The market’s confidence in the USD will be tested in coming months, but in the end we think the USD will remain the cleanest shirt in the laundry. We now call for parity.

China: signs of stabilisation in HSBC manufacturing PMI – Danske Bank
China: steady PMI indicates growth stabilisation – Nordea

EKP:ltä uskottava paketti | Tänään luvassa euroalueen PMI | Tanskan keskuspankki laski jälleen talletuskorkoa

Työryhmä esittää yhtäläistä ansioturvaa kaikille Verkkouutiset
"Jos kieltäytyy aktivointitoimista ilman syytä, ja silti 400 päivää ansioturvaa..." – Ansiosidonnaista halutaan lyhentää

Politiikan parasta ennen –päivämääräSampo Terho

Vähittäiskaupan joulukuun pikaennakko: -1.9% YoY – Tilastokeskus
Lopettaneiden yritysten määrä lisääntyi huomattavasti – Tilastokeskus
Asuntovelat 180 prosenttia asuntovelallisten vuosituloista – Tilastokeskus