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Wednesday, April 10

10th Apr - US Close: Tight FOMC minutes, fresh European worries



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EUROPE
EU mulls bank law to impose losses on depositorsReuters
European Union ministers will consider a proposal this week to impose losses on interbank deposits of lenders in dire financial trouble as they shape a draft EU law introducing powers that would also penalize those with big savings.

BOJ Action Lifts Euro, but Why?WSJ
The euro has risen sharply since the Bank of Japan's announcement of a vast new program of quantitative easing last week.

6 things you need to know about Slovenia, perhaps the next euro-zone dominoMarketWatch

Slovenia, Spain Warned of Excessive Economy Imbalances by EUBB
The European Commission warned of “excessive” risks to the economic health of Slovenia and Spain, calling on both governments to take urgent action to stem the spread of the euro crisis.

  CYPRUS
Cyprus: Oddities in leaked bailout documentsBrussels blog / FT

Why Cyprus must leave the euroFelix Salmon / Reuters

Cyprus Suspends Probe Into Who Withdrew Money EarlyZH

Here We Go: Cyprus To Sell €400 Million In Gold, About 75% Of Its Total Holdings, To Finance Part Of Its BailoutZH

UNITED STATES

  FOMC MINUTES
Minutes of the Federal Open Market CommitteeFED

Released Early, Several FOMC Members Saw QE Tapering, Halt By Year EndZH

Minutes Signal End to QE Tim Duy’s Fed Watch
The Fed seems content with the current pace of activity.  Content enough to believe they can pull the plug on quantitative easing this year.  I remain concerned that ending QE will slow forward momentum, thus the Fed is running the risk that they the economy will not achieve sufficient velocity to escape the zero bound. The actual timing is still data dependent, but I am wondering if we should change our framework from "how good does the data need to be end QE" to "how bad does the data need to be to continue QE?" 

Oops! Fed minutes, inadvertently released early, show a divided FOMCWonkblog / WP

Fed fat finger [updated]alphaville / FT

ASIA
Stumbling JGBs alphaville / FT

OTHER
What We're Reading ~ Analytical Links 4/10/13market folly

This is the VaR that slipped through the cracksalphaville / FT