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Tuesday, March 26

26th Mar - US Open: The Dijsselbloem Affair



Joke / not true: 
In a stunning victory for the small country, the finance minister of Finland Mrs. Jutta Urpilainen has been named as the new head of the Eurogroup.
Many commentators believe that the choice will work in favor of the federalists ahead of the all-important European Parliament election in 2015, as she is head of the Social Democratic Party of Finland (pro people), a woman (always helps) and comes from a neutral creditor country officially opposing federalisation, but in reality agreeing with everything Germany decides to throw at it.
Under Urpilainen's term, the fiscal situation of the Republic of Finland has deteriorated hand-in-hand with the euro crisis, while simultaneously the balance sheet items related to rescue measures and thus the nation's liabilities have increased more than after the WWII or during the financial crisis of the early nineties.
With that track record, the euro and the European Union will surely become the success stories they are often said to be.


Oh yes, just updated the Cyprus post:

Previously on MoreLiver’s:

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Roundups & Commentary
Frontrunning – ZH
Overnight: "It's All Cypriot To Me" – ZH
The Lunch Wrap – alphaville / FT
Emerging N.Y. headlines – beyondbrics / FT
Daily press summary – Open Europe

Morning MarketBeat: He said what? – WSJ
Morphing CrisisMarc to Market
Morning Briefing (EU/US): Déjà vu - againBNY Mellon
  In bailing out Cyprus, the EU has made all too familiar mistakes


EUROPE
Stubborn and Egotistical: Europe Is Right to Doubt German Euro LeadershipSpiegel
The drama over Cyprus has made clear that the euro-zone crisis is developing into a struggle over German hegemony in Europe. On the surface, Merkel and Schäuble seem to be working to stabilize the economy. In actuality, they're binding other nations with the shackles of debt.

DIJSSELBLOEM AFFAIR
Be careful what you wish forNordea
The EU appears to have fast-tracked its plans for bank resolution in earnest, at least based on the comments from the Eurogroup President Dijsselbloem. Such plans are another blow for the funding outlook of banks, and risk escalating the euro crisis again.

Beware Dutchman bearing statementsTradingFloor
Ken Veksler: The EURUSD was sent into a tailspin yesterday as the new head of the Euro group proceeded to tell the market that the handling of the Cypriot situation would serve as a template for the rest of Europe should things go down that path.

You want contagion…I’ll show you contagion…Open Europe

Cyprus - To Template, Or Not To TemplateZH

The FT/Reuters Dijsselbloem interview transcript Brussels blog / FT

Dijsselbloem Says Euro Troubled Lenders Must Fend for ThemselvesBB
Cyprus to shape future euro bank rescues: Eurogroup headReuters


Let the guessing game continue: The Eurogroup's mixed messages on capital controlsOpen Europe



PIIGS
Does Emigration Put Spain’s Health and Pensions System At Risk?A Fistful of Euros
Migration trends within the Euro Area and the impact these have on trend GDP growth and structural budget deficits in the various member countries. This is an important issue indeed, since such movements seem to be an unforeseen and largely unmeasured by-product of the current monetary and fiscal policy mix being pursued by the EU and the ECB, yet the consequences they have shape the long term future of the whole Eurozone, and with it the sustainability or otherwise of the component states.

Italian Election Fallout Q&A (Continued)WSJ

A grand coalition with Silvio is hard to swallow for Bersani, but...Open Europe


Guest post: Slovenia – not as bad as Cyprus?beyondbrics / FT


UNITED STATES
DURABLE GOODS
Orders for U.S. Durable Goods Rise More Than Forecast – BB
Nondefense Cap Orders Ex-Aircraft Tumble In February – ZH
Robust transportation demand buoys orders for durable goods – Reuters

OTHER
There is stress in the Stress IndicatorsTradingFloor
Steen Jakobsen: The stress indicators are showing early signs of concern, but overall this needs to be confirmed. It seems the bail-in by depositors could have been the catalyst for risk off.

Huge potential calendar effects for FX this week and nextTradingFloor
John J Hardy: We’re going into the end of month and end of quarter, as well as the end of the Japanese financial year – all ahead of an extended Easter holiday weekend for Europe and a critical Bank of Japan meeting next week.

BRICS Nations Plan New Bank to Bypass World Bank, IMFBB

The debt runButtonwood / The Economist
In short, we are nearly six years into this crisis and we have made precious little progress in running down debts and thus are vulnerable to further crises; Cyprus is just the latest example. Nor have we decided whether default or inflation is the preferred option. Either way, savers should beware.

IN FINNISH
Vähittäiskaupan pikaennakko: myynti laski helmik. 0,8% vuodentakaisesta – Tilastokeskus
Konkurssien määrä edellisvuoden tasolla tammi – helmik. 2013 – Tilastokeskus
Helmik. työttömyysaste 8,7% – Tilastokeskus