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EUROPE
Ashoka Mody: Delays and half measures – Bruegel
Are the eurozone’s
continuing woes the result of its incomplete construction or because of policy
errors in responding to the crisis?
Europe’s Migration Crisis as a Path toward
Deeper Integration? – PIIE
Nothing like a humanitarian
crisis to put a financial one into perspective
European Commission
Starts a Battle with Poland with Unknown Ending – euinside
Polish prime minister to
join European Parliament debate – Politico
UNITED STATES
So You Think A Recession Is Imminent, Employment
Edition – Tim
Duy
OTHER
FX: to hedge, or not to hedge, that is the
question – Nordea
Equity flows into the
EUR have been mostly unhedged recently, providing flow tailwinds for the EUR.
Why is this? Does it represent a game-changer in terms of how to think about FX
hedging policies, and what are the quant and macro arguments?
REGULARS
Morning MoneyBeat Asia – WSJ
U.S. Stocks Plunge as Rally Falls
Apart
Morning MoneyBeat US – WSJ
Technicals Worsen, but Macro Story
Mainly Unchanged
Euro rates update – Nordea
Eye-Opener – Nordea
Risk aversion back; stocks fall; oil
prices lower; CNH weaker * Bank of England to surprise? * Brent oil below USD
30 * EUR & JPY still safe havens
Morning Markets – TF
The risk-off rampage is back as a
Wall Street selloff prompts more of the same in Asia with geopolitical fears
front-and-centre after the Istanbul bombing was followed by a series of what
the BBC are terming suicide attacks in the Indonesian capital of Jakarta.
Daily FX Comment –
Marc
Chandler
Market Turmoil Continues, Risk
Shunned
Daily Press Summary – Open
Europe
Chris Grayling becomes first cabinet
minister to declare support for leaving the EU * Commissioner’s evidence to Lords’ EU Committee
shrouded in secrecy * Merkel faces “disguised vote of confidence” among own MPs
over refugee policy * European Commission initiates formal assessment of rule
of law in Poland * Irish MEP highlights EU referendum impact spreads beyond
just the UK * Reuters: EU Commission economists banned from researching impact
of Brexit * ECB prepares to again accept Greek bonds as collateral for cash
once pension reform is passed * EU Commission campaigns for new European Ofcom
to regulate telecom market * Commission delays decision on whether to grant
China market economy status * Over 40% of EU funds for Croatia go unspent * Cyprus
expected to exit bailout programme by end of March
Brussels Playbook – Politico
Timmermans’ tough day —
Europe’s impact in Brussels
US Open – ZH
Global Markets Slide, US
Futures Wipe Out Overnight Gains In Volatile Session
The Asian session tried
to put a pretty face on this dog of a global equity market after a
particiularly ugly US session yesterday but we can only start to hope that
spirits are staging a comeback if Europe and the US can follow suit with a
rally today.
Trading is still
turbulent in China but the Shanghai Composite rallied after 28 companies have
elected not to sell shares for the next 6 months. It remains to be seen whether
this means stabilisation in the longer run and across markets.
FINNISH
Suomi: Deflaatiosta inflaatioon * Euroalueen
teollisuustuotanto supistui marraskuussa * Palkkapaineet pysyvät alhaisina
USA:ssa * Euro vahvistui eilen lähes kaikkia G10-valuuttoja vastaan