Special: Suomi / Kehysriihi (updated!)
EUROPE
Euro zone not preparing
third Greek bailout so far: official – Reuters
Great Graphic: The
Herculean Task To Stabilize Debt/GDP Ratios – Marc
to Market
It may be penny wise but pound foolish for Germany to be reducing its
debt now…it prevents stronger growth and weakens the commitment to the European
project, of which EMU is a culmination of a more than 60-year effort.
Schäuble revives push
for eurozone integration – FT
Germany is pushing for
changes to EU treaties “as soon as possible” after the May European elections,
in an overhaul to fuse eurozone economic governance behind a budget chief and
euro area parliament.
Germany joined Britain on Thursday in
calling for EU reforms that are fair to EU countries outside the euro zone,
bolstering British Prime Minister David Cameron's attempts to placate
eurosceptics at home.
EUROPEAN CENTRAL BANK
Threat of Deflation
sends Euro to Three Week Lows – Marc
to Market
The main impulse, today, is the heightened deflationary risk in the euro
area, sparked by Spanish and German state inflation figures. The euro area's flash CPI will be reported
Monday ahead of next Thursday's ECB meeting.
German CPI data
brings no relief for ECB – Merkelnomics
The instruments the ECB has available in its toolbox largely look like
illusionary giants: giant from a distance but rather unimpressive in terms of
effectiveness, practicability and indisputability. All of this means that most
likely outcome of next week’s ECB meeting is that the ECB will continue talking
the talk in order not to have to walk the walk.
UKRAINE / RUSSIA
Too Much, Too Soon – Foreign
Policy
The IMF is giving billions of dollars to Ukraine's cash-strapped
government. Will that make the country's new rulers even weaker?
MACRO NUMBERS
Business climate broadly unchanged in March – EC
Consumer confidence increased markedly in March – EC
Economic Sentiment up in the euro area and broadly flat in the EU – EC
Surge in consumer confidence lifts euro zone economic sentiment – Reuters
Euro Area Economic Confidence Increases More Than Expected – BB
Spanish CPI shock
flags euro deflation risks – Reuters
The euro slid to a three-week low and government bond yields across the
euro zone fell on Friday as a surprise fall in Spanish inflation bolstered
investors' bets the European Central Bank will ease policy next week to ward
off the threat of a sustained bout of deflation.
UNITED STATES
FEDERAL RESERVE
Fed's Tarullo defends
tough rules for foreign banks – Reuters
Fed’s Evans Sees Rate
Increase in Second Half of 2015 – BB
Fed in No Hurry to
Decide Mechanics of Rate Increases – WSJ
Fed officials are moving slowly in discussions about how to manage the
mechanics of interest rate increases once they decide to start tightening
credit.
MACRO NUMBERS
Personal Income increased 0.3% in February, Spending increased 0.3% - Calculated
Risk
PCE Price Index Update: Core Inflation Remains Far Below the Fed Target –
dshort
Final March Consumer Sentiment at 80.0 – Calculated
Risk
Michigan Sentiment Index
Decreased to 80 in March From 81.6 – BB
OTHER
Rate Differentials
Getting Traction – Marc
to Market