29th Jan - Danes lower rates, Germany in deflation

**DANISH CENTRAL BANK CUTS DEPOSIT RATE TO -0.5% FROM -0.35%**
At some point, Denmark will abandon the peg. Might take 2 months or two decades. Probably between those two ;)

Either Denmark becomes SNB of past years and begins making money from the peg - or lets it go. Expect an expensive mistake from Danes: Denmark's CB will probably end up buying European crap assets, and only later abandon the peg. It should do it the other way around.

Previously on MoreLiver’s:

Wednesday: Fed repeats "patient", adds "international

Tuesday: EUR rallies for the second day

Monday: Syriza wins in Greece, debt talks ahead...

Radiossa

Credit Guest: "Stimulant Psychosis"

W/E: Linkfest

W/E: Weekly Support

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EUROPE

Great Graphic: Is Germany Going Where Japan has Never Been? – Marc to Market

The Bundesbank is opposed to the ECB's bond buying.  But besides saying "nein" and expressing concerns about moral hazard, they have not offered alternative proposals to achieve their legal mandate, price stability… Monetary union before political union has never worked.  The tax payers of the creditor nations have been bled dry and have little appetite to give more.

What if Europe’s problem isn’t a lack of liquidity? – FT

Europe’s investment gap may actually be the consequence of widespread flaws in the governance of European companies and banks, rather than simply the result of insufficient financing.

Populist arguments more pervasive in Western European countries – Europp

In France's suburbs, state neglect breeds resentment – Reuters

A uniquely French recipe for unrest – Reuters

Italian presidential vote to test Renzi government's stability – Reuters

Italy: bankruptcy as yet another indicator of divergence in EU– Bruegel

  NORDICS

Norway Regulator Raises Warning Housing Market Is Out of Control – BB

Is Sweden an economically overrated country? – Tyler Cowen

Denmark: DN cuts for a third time in less than two weeks – Danske Bank

Danish central bank cut rates again – FT

What, Denmark? Again? – WSJ

Denmark: FX is King – WSJ

  GREECE

Greece and the euro’s future: Go ahead, Angela, make my day – The Economist

Greek Bank Sell-Off: $11.4B Gone in Just Three Days – BB

Investors Turn On Tsipras’s Campaign to End Austerity in Greece – BB

Eurozone May Not Blink First in Confrontation With Greece – WSJ

Investors have woken up to Greece's nuclear risk – The Telegraph

Syriza and voodoo economics – FT

On Greek Debt, Feeling Like It’s 2012 – WSJ

Greece, EMU and democracy – Antonio Fatas

Greece turns Singaporean after divorcing EU for a Russian – Polemic’s Pains

Who’s (still) exposed to Greece? – Bruegel

A first trace of normalisation and resume in confidence since 2013, which the present political turmoil risks to revert.

  EUROPEAN CENTRAL BANK

Chief Economist's Corner: Super Mario on new adventures – Nordea

The bank plans to buy securities worth EUR 60bn a month starting in March this year and at least until September 2016. This is a substantial amount, and the programme is even launched after a period of historic monetary easing over the past several years.

Monetary developments in the euro area Dec 2014 – ECB

ECB's money supply (M3) rose by 3.6% y/y in December – TradingFloor

EZ loans to the private sector increase – Danske Bank

ECB’s Praet Sees Encouraging Signs on Money and Credit – WSJ

EZ credit cycle is turning – Crédit Agricole

Charts: M3 & lending growth / country-level / inflation swaps / Corporate rates

  MACRO NUMBERS

January 2015: Economic Sentiment increases slightly – EC

Economic confidence rises to 6-month high in the euro area – TradingFloor

Eurozone Consumers Expect Prices to Fall – WSJ

German unemployment rate falls to record low in January – Reuters

German Unemployment Drops for Fourth Month as Growth Strengthens – BB

German Unemployment Hits Lowest Level Since Reunification – WSJ

German unemployment declines – TradingFloor

Germany slumps into deflation in January – FT

German Inflation Rate Is Negative for First Time Since 2009 – BB

UK retail sales growth slows less than expected in January: CBI – Reuters

Lower Prices Get Spaniards Shopping as December Retail Surges – BB

UNITED STATES

5 Things to Watch in Friday’s U.S. GDP Report – WSJ

  FEDERAL RESERVE

Who Doubts Yellen's Policies? Summers for One – BB

Janet Yellen is betting she has the formula for fending off deflationary forces. Investors and some of her fellow economists aren’t so sure.

7 Takeaways From Statement: ‘The Committee Judges That It Can Be Patient’ – WSJ

Economists React: ‘The Door is Still Open to a June Hike’ – WSJ

Deciphering the Fed: ‘Solid’ Beats ‘Moderate,’ and ‘Strong’ is Even Better – WSJ

The Case for Holding a Fed News Conference at Every Meeting – WSJ

FOMC meeting: More patience – Danske Bank

Redacted Version of the January 2015 FOMC Statement – David Merkel

FOMC Decision – Tim Duy

Fed’s Interest Rate Floor May Leak No More – WSJ

Fed turns more dovish - FOMC review – Nordea

Patient on rates, strong job gains and rising inflation in the medium term – Handelsbanken

Federal Reserve leaves interest rates unchanged – WaPo

Fed Raises Assessment of Economy While Staying Patient on Rates – BB

Fed upbeat on U.S. economy, cites strong job gains – Reuters

ASIA

Australia’s Central Bank on Track for Rate Cut – WSJ

Japan retail sales rise for six straight month in sign of recovery – Reuters

REGULARS

Daily Central Banks – WSJ

Hilsenrath’s Take: Amidst Many Distractions, Labor Market at Center of Fed Thinking *Fed Stays Patient on Rate Increases * Bank of England Chief Urges Eurozone Fiscal Union * ECB’s Praet Sees Encouraging Signs on Money and Credit * Australia’s Central Bank on Track for Rate Cut

Daily Macro: As Europeans Worry About Greece, Currency War Rolls On – WSJ

Greece remains the European focus as investors wonder whether the new Syriza government will trigger the country’s ejection from the single currency or whether some sort of compromise will be struck. Bank of England Governor Mark Carney stirred debate further by arguing in an overnight speech that core eurozone politicians need to relent on austerity, otherwise the single currency region faces another lost decade.

Danske Daily – Danske Bank

Eye-Opener – Nordea

Fed leaves all doors open * New Greek government continuing to cause worries * Another big rally in US Treasuries

Majors Currencies Stuck in Range, while Antipodeans become Unstuck – Marc to Market

Daily Shot: Greece is Europe's squeaky wheel – TradingFloor

Greek yields spike on bellicose Syriza rhetoric * RBNZ hints that its ready to join the easing party * US oil inventories reach record levels

US Open – ZH

Markets Drift Without Direction As Zombified BTFDers Unable To Frontrun Hawkish Fed

FX Update: USD rallying again, but more data are needed – TradingFloor

FOMC statement USD-supportive * Next targets in NZDUSD at 0.6870, 0.6450 * Today's US GDP data could move the USD

From the floor – TradingFloor

OTHER

Crude oil puts up a fight, but downside risk still high – TradingFloor

Ole Hansen: WTI hits new low in Wednesday trading * EIA report shows no slowdown in US production * Interest in $40 March Put option high

FINNISH

Aamukatsaus – Nordea

Fed edelleen kärsivällinen – ja hieman varovaisempi | Euro ei Suomea nosta | Venäjän vähittäiskauppa kasvoi joulukuussa 5,3 prosenttia

Kokoomus romahti kolmoseksi – YLE

Keskusta jatkaa ylivoimaisena ykkösenä, kun taas kokoomuksen kannatus syöksyy.

Suomen EU-tavoitteet vuodelle 2015 – Brysselin kone / YLE

Mitä ovat Suomen EU-politiikan avaintavoitteeet vuodelle 2015? Siitä puhuu yleisten asioiden yksikön päällikkö Satu Keskinen valtioneuvoston kanslian EU-sihteeristöstä.

  EVA & MAAHANMUUTTO

Tulevaisuuden tekijät – Suomi ei pärjää ilman maahanmuuttoa – EVA

EVA Fakta: Kuka Suomessa tekee työt? – EVA

EVA: Maahanmuutto kaksinkertaistettava – YLE

Eva: Maahanmuuttajia tarvitaan tuplasti enemmän – TalSa

34 000 maahanmuuttajaa – "painakaa tämä luku mieleenne" – Verkkouutiset

Maahanmuuttajia vai asennemuuttajia? – Hannu Visti