This is my 1500th blog post. Hope you have liked it so far!
Previously on MoreLiver’s:
Roundups &
Commentary
Frontrunning – ZH
Overnight: The Red Color Is Not A Malfunction – ZH
The Lunch Wrap – alphaville
/ FT
Emerging N.Y. headlines – beyondbrics
/ FT
Daily press summary – Open Europe
Morning MarketBeat: Fed Spooks Investors; It Shouldn’t
– WSJ
Broker Note Briefing – WSJ
FX Spin – Marc to Market
A Few Thoughts about LTRO II Prepayment – Marc
to Market
Morning
Briefing (EU/US): Slave to the rhythm – BNY
Mellon
To know about “currency wars” is to become
part of it
EUROPE
Panic-driven austerity in the Eurozone and its
implications – voxeu.org
Eurozone
policy seems driven by market sentiment. This column argues that fear and panic
led to excessive, and possibly self-defeating, austerity in the south while
failing to induce offsetting stimulus in the north. The resulting deflation
bias produced the double-dip recession and perhaps more dire consequences. As
it becomes obvious that austerity produces unnecessary suffering, millions may
seek liberation from ‘euro shackles’.
Brussels should request from Paris a serious plan for public spending
cuts. The French 2013 budget adjustment was mostly based on tax increases. The
government has announced that further consolidations would come from public
spending cuts. This is however a rather weak commitment because President
François Hollande has not spelt out precise priorities, let alone targets. It
is not enough to say that some government spending will be cut. France must say which and when.
Member states blamed for EU budget errors – euobserver
Member
state authorities are to blame for the mismanagement of the EU budget, say
euro-deputies who scrutinise EU funding.
Bulgarian
prime minister Boiko Borisov resigned this morning after days of mass protests
against austerity across the country. “I will not participate in a government
under which police are beating people. Every drop of blood is a shame for us,”
he said. “Our power was handed to us by the people, today we are handing it
back to them.”
The pretence of transnational politics and why
national parliaments still rule – Open
Europe
What does
Angela Merkel have to do with Italy’s elections, asks Christopher
Emsden
Draghi will not join the 'currency war' – Danske
Bank (pdf)
'Gambling Away Trust': Fears Rise of a Berlusconi
Resurrection – Spiegel
European
Parliamentary President Martin Schulz has warned Italians against voting for
Silvio Berlusconi in upcoming elections. He joins a growing list of leaders who
are wary of the return of "Il Cavaliere." The worry is particularly
pronounced in the financial world.
The euro
crisis may have dropped out of the headlines recently, but Spain and Italy would seem to be doing their best
to bring it back. Real estate giant Reyal Urbis' bankrupcy has raised fresh
concerns about Spanish banks and many fear that a Berlusconi election victory
could drive Rome to seek emergency aid.
PMI
Juhani
Huopainen: The February Purchasing Manager Indices for Europe confirm that the recession is not
over. EURUSD news flow is now as bad as it can get, so time to go against the
tide?
Euro-Area Manufacturing, Services Contraction
Worsens – BB
Euro-area
services and manufacturing contracted at a faster pace than economists forecast
in February as the economy struggled to recover from the deepest recession in
almost four years.
Chasm opening between weak French and strong
German economies – Reuters
The schism
dividing the euro zone's strong and weak economies deepened to include its core
pairing in February as French firms suffered their worst month in four years in
stark contrast to prospering Germany.
UNITED STATES
Fed divided – should we worry? – Nordea
Take some chips off the table – Humble
Student
I wrote
that I had been watching the behavior of cyclical stocks for a signal that a
correction may be starting and we may have seen that signal yesterday.
OTHER
One day, two minutes... Fed and BoE lean in
opposite directions
– TradingFloor
Neil
Staines: Yesterday, the FX markets were strongly driven by the release of the
latest monetary policy meeting minutes from the US and the UK. Both surprised in terms of their
policy leanings with strong implications for their respective currencies.
Thursday Musings – Macro Man
IN FINNISH
Euroopan talous
uuteen kasvuun aikaisintaan loppuvuonna 2013 – Jukka
Oksaharju / Nordnet