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The pitfalls of Eurozone bilateral trade imbalance measures – vox
Because of the emergence of global value chains, trade imbalances within the Eurozone are to a large extent an endogenous result of the international organisation of production at the firm level. It is therefore better to disregard intra-EZ imbalances and focus on the total.
The Shortcomings of Quantitative Easing in Europe – Project Syndicate
Germany toughens refugee policy – Politico
40% of Germans say Merkel should resign over refugee policy – Reuters
Merkel Defuses Threat to Chancellorship With Refugees Deal – BB
Euro area: Rebound in inflation only temporary – Nordea
Monetary developments December 2015 – ECB
Is growth in euro zone bank lending to companies fizzling out? – Reuters
Downward Nominal Wage Rigidity During and After the Great Recession – FED
We find no evidence that the high degree of labor market distress during the Great Recession reduced the amount of downward nominal wage rigidity and some evidence that operative rigidity may have increased during that period.
Fourth-Quarter U.S. Growth – The Numbers – WSJ
Economists: ‘Consumer Spending and Housing Remain Solid’ – WSJ
Slower growth in Q4 one reason for Fed to hold in March – Danske Bank
Soft growth in Q4, but a serious downturn remains unlikely – Pictet
Growth slows to 0.7% in Q4 – WaPo
BANK OF JAPAN
JPY sold off aggressively after BoJ announced negative interest rates – ABN AMRO
That was then, this is now: BoJ and negative rates edition – FT
BoJ Adopts Negative Interest Rates, Fails To Increase QE – ZH
BoJ's NIRP Results In More Currency Wars, Global Slowdown – ZH
BoJ goes negative in surprise move – Danske Bank
BoJ introduces negative interest rates – Nordea
Kuroda surprises by introducing a negative interest rate – Pictet
Morning MoneyBeat Asia – WSJ
Oil Surges, and Stocks Go Along for the Ride
Morning MoneyBeat US – WSJ
Danske Daily – Danske Bank
Euro rates update – Nordea
Eye-Opener – Nordea
Bank of Japan to the rescue; US recession worries from weak Q4; postponed Russian rate cut * New Bank of England forecast * U-turn in long yields on Brent oil jump * USD loses broadly as correlation with oil holds
Morning Markets – TF
The Bank of Japan made a surprise move by adopting negative interest rates in a bid to tackle low inflation and a spluttering economy. The move puzzled some analysts and traders but the overall reaction to the move was positive.
Daily FX Comment – Marc Chandler
Kuroda Surprises, Introduces Negative Rates in Japan, Sinks Yen
Daily Shot – TF
Bank of Japan took markets by surprise with moving its main interest rate into negative territory. Other Central Banks have now to see how to re-act.
Matt Levine’s Money Stuff – View / BB
Bonuses, bankruptcies, donors, Martin Shkreli, basic income, unicorns and repo.
US Open – ZH
Global Stocks, Bonds Jump On BOJ NIRP Stunner; Rally Fizzles After Crude Fades Gains
Frontrunning – ZH
FX Update – TF
The Bank of Japan pulled the rug out from under the market by cutting into negative rate territory which was entirely unanticipated. The JPY weakened in response and risk appetite soared but will we see follow-through next week on this move?
From the Floor – TF
The Bank of Japan has a penchant for surprises but governor Haruhiko Kuroda's reversal of his previous disavowal of negative interest rates has left markets reeling.
FINLAND & FINNISH
Aamukatsaus – Nordea
Japanin keskuspankki liittyi negatiivisten kerhoon * USA:n Q4 BKT-luvut julkaistaan tänään * Valtiolainakorkojen laskuliike jatkui Fedin kokouksen vanavedessä * Venäjän keskuspankki pitää rahapolitiikan ennallaan