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Tuesday, January 22

22nd Jan - US Close: Currency Wars




Previously on MoreLiver’s:

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Roundups and Commentary
Markets – Between The Hedges
The Closer – alphaville / FT

Tomorrow’s Tape: Apple Headlines Crowded Earnings Parade WSJ
Europe: Swiss Rates Swing Back To Negative As European Credit Ignores Equity Bounce – ZH
US: Trannies Suck Stocks Higher As Risk-Assets Flatline – ZH


EUROPE
Macro Strategy – Watch EU consumer confidence and PMINordea (pdf)
We will see a lot of PMI data, but behind these data points we take an increasing interest in consumer confidence. A trough in this measure will surely convince us even more of the European macro trough

Spain back under the spotlight soon?Open Europe
Spain's public deficit for 2012 will be somewhere around 7% of GDP - higher than the target of 6.3% of GDP agreed with the European Commission… A day of bad news for Spanish Prime Minister Mariano Rajoy and his government - not least because Spain had already obtained a relaxation of its deficit target for this year.

This is big Nordea
Spain saw an unprecedented flood of orders for its new 10-year benchmark, the strongest sign yet that the market conditions have seen a material improvement. Only the yield of around 5.4% serves as a reminder that Spain is still facing some problems – quite significant ones for that matter.

LTRO repayments will be mostly good newsNordea (pdf)
Summary here.

EU want in or EU want out? Capitalists@Work
Cameron is expected to say he would allow a referendum in 2015, AFTER the election. Good politics. Vote Dave and see if he'll really do it, or vote someone else and never, ever get the chance to vote on even mild reform.

Do triple-A countries have monopoly on top euro jobs?Brussels blog / FT

Group-of-11 get go ahead for financial transaction taxeuobserver

ASIA
BOJ’s New Easing Could Be Mixed Blessing for Rest of AsiaWSJ
The Bank of Japan's more stimulatory stance could be a mixed blessing for Asia, potentially providing productive investment flows into the region but also providing fuel for future asset and debt bubbles

CURRENCY WARS
The practicalities of the currency warsalphaville / FT
Winning the “currency wars” isn’t easy. From Citi’s Steven Englander on Tuesday

Beggar Thy Currency Or Thy Self? Project Syndicate
One need not be an economist to figure out that, while all currencies can depreciate against something else (like gold, land, and other real assets), by definition they cannot all depreciate against each other. Yet, when push comes to shove, country after country is being dragged into a negative dynamic of competitive depreciation.

Bretton Woods Might Be a Better Spot Than DavosWSJ


King Welcomes Bank of England Remit Debate Spurred by CarneyBB
 


OTHER
Long-term pessimism, short-term frothiness, and the recovery in world wealthalphaville / FT
Viewed in longer perspective the state of investor risk appetite is severely depressed – arguably worse than at any time in the last 25-30 years.

Nordea Risk Perception Index – week 4Nordea (pdf)
Summary here.

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