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Thursday, January 23

23rd Jan - PMIs: Bad China, Good Europe



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EUROPE
Eurozone repo market shrinks in second halfFT
European repo is on the declinealphaville / FT
Cash hoarding by lenders and increased reliance on central bank funding caused the eurozone’s “repo” market, where banks can access short-term funding, to shrink by nearly a tenth in the second half of last year.

Mario Draghi Interview with Neue Zürcher ZeitungECB

Turkey’s Interest Rates 101: Dissecting Mr. Basci’s BenchmarksWSJ
Turkey’s central bank loves a policy rate. So much that over the past three years it has gone from using one benchmark to a blurry handful.

No one tries harder than Europe to fight climate change. The recession is testing that.WaPo

Merger Bonanza Hits Finland as Economic Pain Becomes AssetBB

Despite the crisis, the euro has more than doubled trade among Eurozone membersEuropp / LSE
Moreover, while the Eurozone crisis has created more substantial problems in Southern Europe, the trade benefits derived from the single currency have been disproportionately larger in Eurozone periphery states.

Spain: The Market's DarlingMarc to Market
We argue that part of the euro’s rise over the past several months reflects a reassessment of Spain’s outlook. 

  PURCHASING MANAGER INDICES
Strong European PMIs suggest growth in Q1 – TradingFloor
Euro zone business gets off to strong start for 2014, France lagging – Reuters
Euro PMIs give another signal of a firmer recovery – Danske Bank
Eurozone manufacturing expansion accelerates; risks remain – Sober Look
France-Germany Yield Spread Widens as French Growth Trails Peers – BB


Eurozone PMI's: Strong start in 2014 – Berenberg



  OTHER MACRO NUMBERS
Eurozone current account surplus at all-time high – TradingFloor

UNITED STATES

S&P 500 Sector HeatmapBespoke

Fedspeak Cheat Sheet: Where Do Officials Stand on Policy?WSJ

Chicago Fed: Economic Growth Moderated in December – dshort
Comments on Existing Home Sales: Watch Inventory – Calculated Risk

ASIA


  PURCHASING MANAGER INDICES
China PMI Signals First Contraction In 6 Months; Drops Most Since May – ZH
China Manufacturing Index Signals Surprise Contraction – BB
China: Operating conditions deteriorate for the first time in six months – Markit
Asian Stocks Drop After China’s Flash Manufacturing PMI – BB
North Asia trio looks to export, consumption boost in 2014, China lags – Reuters
Drop in PMI suggests growth is again slowing – Danske Bank
China Flash PMI: yin and yang – beyondbrics / FT

Japan’s Price Gauge Rises Most Since 1998: Economy – BB
IMF says BOJ inflation target likely to take more than two years – Reuters

Australians in Record Loan Spree as House Prices Soar – BB

IMF Calls Out South Korea on Its Currency PolicyWSJ
The fund’s scrutiny of Korea’s currency policy comes after Bank of Korea’s top official indicated early this year the central bank is ready to intervene in currency markets to curb the won’s strength.

OTHER
Macro problems, micro solutionsUBS
How trade, technology and finance can help keep the recovery going, a UBS view on the 2014 World  Economic Forum theme: “The Reshaping of the World”

Energy is gradually decoupling from economic growth alphaville / FT
According to BP’s Energy Outlook, which was released this week, global energy demand will continue to grow until 2013, but that growth is set to slow, driven by emerging economies — mainly China and India.

EMEA Weekly, Week 5Danske Bank

FINNISH
Hallitus varautuu jopa kolmen miljardin euron lisäsäästöihin YLE
Hallituksessa valmistellaan taas uusia valtion talouden säästöpäätöksiä. Valtiovarainministeriö on arvioinut, että valtion velan kasvun taittaminen vaatisi noin kolmen miljardin euron lisäsäästöjä.

Pääministeri väläyttää syksyllekin säästöjä Verkkouutiset
Kehysriihessä sopeutustarve ehkä kolme miljardia, mutta päätökset eivät lopu Jyrki Kataisen mukaan siihen.

Katainen maanittelee suomalaisyrityksiä mukaan Maailman talousfoorumiinVerkkouutiset

Asuntovelat kasvoivat 4,7 prosenttia vuonna 2012 – Tilastokeskus
Velat kasvavat: Asuntovelallisilla velkaa 180 prosenttia vuosituloistaan – Verkkouutiset