Roundups &
Commentary
US Opening
News And Market Re-Cap – Ransquawk / ZH
Frontrunning – ZH
Overnight: Currency Wars Heating Up – ZH
The Lunch Wrap – alphaville
/ FT
Emerging N.Y. headlines – beyondbrics
/ FT
Daily press summary – Open Europe
Morning MarketBeat: Some Bears Refuse to Hibernate – WSJ
Broker Note Briefing – WSJ
Contours of the FX Markets in the Week Ahead – Marc
to Market
The T-Report: Thou Shalt Take Risk – TF
Market Advisors
EUROPE
Irish setback – MacroScope
/ Reuters
good European roundup – ML
EU institutions mark out 'red lines' ahead of
budget summit – euobserver
EU
politicians are squaring up for a showdown on the bloc's seven year budget
ahead of next week's summit.
ECB
& CURRENCY WAR
As the Bank
of Japan is rolling out its new programme of quantitative easing, a significant
debate about the impact on Europe is emerging. Is Japan engaging in a “beggar-thy-neighbour”
policy? Is Europe paying the price as other central
banks are responding?
The ECB will come
under pressure in the currency wars – The
A-list / FT
Mohamed El-Erian: Having solved its urgent problem,
the eurozone needs to deal with a new dilemma: that of an appreciating
currency. There is a growing number of countries seeking to weaken their own
currencies. Indeed, in the last six months, the euro has appreciated by 11 per
cent against the US dollar and by 8 per cent in nominal trade weighted terms.
It has appreciated by a lot more against the Japanese yen.
Euro Rise Will Be a Problem for Euro Zone Soon – WSJ
ECB Says Private Lending Contracted for Eighth
Month in December –
BB
Euro zone
lending falls for 8th month – Reuters
Loans to
companies and households in the euro zone contracted for the eighth month
running in December, showing low official borrowing costs are having little
success in reviving investment and spending.
UK
Ambrose Evans-Pritchard: Cherry-picking. Europe a la
carte. And from Madrid, a
finger-waving admonition that "David Cameron must understand he cannot
pretend to renegotiate the treaties, and undo what we have done, or slow the
speed of the EU cruiser."
It would be difficult for the UK to follow the
‘Swiss’ or ‘Norwegian’ models as an alternative to EU membership – europp
/ LSE
Jóhanna
Jónsdóttir assesses whether the UK could follow the example of
countries like Norway and Switzerland in using the European Free Trade
Association as an alternative to EU membership. She notes that while this would
allow the UK to continue to participate in the
single market, there are significant potential problems associated with the
approach.
Britain is right to demand greater openness
in the European Union but cannot expect to be accorded special rights that
might unravel the bloc, senior members of German Chancellor Angela Merkel's
coalition were quoted on Sunday as saying.
Carney’s words signal step change at Bank – The
Telegraph
One duty of
the journalist at Davos is to judge the mood, in the hope that this provides
intelligence on the year ahead.
The Single Market is just one ingredient to be
put into the pot – The
Telegraph
"It is
vital that we remain in the Single Market”, politicians of all hues regularly
intone, like a mantra.
PIIGS
The ECB is
at odds with Germany's finance minister over the
consequences of not bailing out Cyprus and its wider implications for the
eurozone.
While it is
almost certain that a centre-left coalition, led by the head of the Democratic
Party (PD) Pier Luigi Bersani, will command an absolute majority in the Chamber
of Deputies, the race is much closer in the Senate…The most likely outcome is a
post-election alliance between the centre-left and the Mario Monti coalition.
Such an alliance would be positive for policy continuity and political
stability.
UNITED STATES
LBO leverage creeping up, credit not reaching
smaller firms – Sober
Look
At Fed, Nascent Debate on When to Slow Asset
Buying – NYT
OTHER
Morning Briefing (EU/US) – BNY
Mellon
“Just When
You Thought It Was Safe To Go Back In The Water”: Recent comments from Olli
Rehn act as a timely reminder of the risks that remain in the Euro-zone.
For various
reasons, my optimism doesn’t match the breathless enthusiasm that seems to be
building in the financial media.
Global Stock Correlations Plunge as Morgan
Stanley Buys – BB
Is the whole world bullish? – Humble
Student
At this
point, my base case calls for stocks to correct 5-10%, at which the uptrend
continues. However, that scenario is subject to change as circumstances change.
We may be nearing an inflection point and will have to take this one day at a
time.
IN FINNISH
Maahanmuutto ja
työvoimapula – Hesari kirjoittaa melkoista höpöä aiheen tiimoilta – tyhmyri
Urpilainen huolissaan
nuorisotyöttömyydestä – syytä onkin – tyhmyri
Kriisitietoa
komissaareille ja muille haaveilijoille – Jan
Hurri / TalSa
Europäättäjillä ei ole toivoa taltuttaa kriisiä niin kauan
kuin he sulkevat silmänsä kriisin syiltä. Näin tekee esimerkiksi EU:n korkea-arvoisin
viranhaltija, komission puheenjohtaja José Manuel Barroso. Hän väittää yhä,
että Kreikka ja muut kriisimaat kärsivät Yhdysvaltain vastuuttoman finanssialan
ylilyönneistä eivätkä suinkaan Euroopan omista virheistä.