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Wednesday, April 24

24th Apr - US Open: Bad German IFO



Previously on MoreLiver’s:

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Roundups & Commentary
Frontrunning – ZH
Overnight: German ZEW Miss Is Blamed On "Winter Weather" – ZH
The Lunch Wrap – alphaville / FT
Emerging N.Y. headlines – beyondbrics / FT
Daily press summary – Open Europe

Morning MoneyBeat – WSJ
Morning Bond Update – TradingFloor
Currencies Firm Despite Rate Cut Fever – Marc to Market

EUROPE
Abolish deposit insurance, please – Barnejek’s blog

Austerity, the ECB and OsborneMacroScope / Reuters

Internal documents reveal countries' concerns with FTT proposal  Open Europe
(or when ideology meets economic reality)

Insight: What ever happened to France's voice in Europe?Reuters
A few hours after midnight one Sunday last month, as negotiations over a rescue for Cyprus dragged into a second day, French Finance Minister Pierre Moscovici fell asleep.

  ECB
ECB poised to cut rates to help recession-hit euro zoneReuters
The ECB is closer to lowering interest rates than at any time since it last cut them in July 2012 and is likely to shave a quarter-point off at its policy meeting next week.

ECB Rate Cut Seen Next Week by Banks From Nomura to RBSBB
The ECB will cut its key interest rate to a record low next week as the euro- region economy slumps, according to banks including Nomura, UBS and RBS.

Results of the April 2013 euro area bank lending surveyECB

  GERMANY IFO
Ifo: German business optimism fadesTradingFloor
Mads Koefoed: The German economy likely expanded yet again in April albeit at a slower pace and should continue to do so in the coming quarters, according to Ifo. However, the outlook has weakened and supports our view that growth will be moderate at best.

German business gloom grows as export markets wobbleReuters
German business sentiment in April was worse than the most pessimistic of forecasts, falling for the second consecutive month as Europe's largest economy was undermined by both its euro zone and Chinese export markets.

German Ifo Sentiment Fell After Winter Chilled Recovery: EconomyBB
Confidence fell for a second month in April after winter weather hindered the recovery in Europe’s largest economy, adding to signs that the ECB may cut interest rates.


IFO deterioration within expectationsTradingFloor
Juhani Huopainen: The German Ifo-index continued falling in April, but within expectations, leaving markets to digest another year of seasonal euro-sclerosis.

OTHER
Gold, Aussie Dollar, ML Managers SurveyThe Short Side of the Long

On the virtuous circle of exporting deflationalphaville / FT
There is a stealth war on to export deflation, ideally in a way that simultaneously imports or steals inflation from elsewhere. In some ways, it was the US which began the whole thing by inadvertently importing deflation from China over the 90s and naughties and without even realising it. And in so doing, it spread its growth effect to China. Japan meanwhile has been trying to export its deflation for decades, with varying success. It is in some ways the original Patient Zero.