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Thursday, February 26

26th Feb - Good monetary data from Europe



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EUROPE
The Euro Was a Bad Idea From the StartForeign Policy
Can Europe finally admit it?

Fiscal Arrangements in Federations: Four Lessons for EuropeIMF
1) Unlike federations, the EU’s budget is extremely small and nearly entirely dependent on transfers from its members 2) Fiscal discipline in the EU is long on institutions but short on shared policy instruments 3) Shared debt is rarely seen in federations 4) Subnational financial crises have often, but not always, shaped fiscal responsibility sharing arrangements in federations.

France and Italy granted reprieve for breaching budget limitsFT
Brussels has granted a reprieve to France and Italy after they broke EU budget rules, underlining the bloc’s readiness to bend fiscal regulations in the search for economic growth.

The “Plucking Model” of Recessions and RecoveriesBruegel
Can this simple idea from the 1960s explain some features of today’s macroeconomic situation in Europe?

Explaining Recovery Performance in EuropeKrugman / NYT

Spanish Consumers Embrace Recovery, Enhancing Export-Led GrowthBB

  GREECE
Varoufakis Counts On ECB to Avoid Greek Default in March – BB
What’s next for Greece? The Debt Timeline – BB
Greece: in search of the perfect job market – FT
ECB Denies It Plotted to Burn Greece Bondholders in 2012 – BB
Greece debt crisis: Athens clears one hurdle . . . and faces more – FT
Yanis Varoufakis interview: ‘Anything’s better than austerity' – Irish Times
The juicy interview of Varoufakis – Greek Analyst
George Magnus: All Quiet Now, But Can Greece Thrive in €?The Globalist
The Alternative in Greece – Yves Smith
Clive Crook: Greece vs. Europe: Who Won?View / BB
Biggest Bank Run In History: January Deposits Plunge To 2005 Levels – ZH
A Greek primary issue – Bruegel

  BANK OF ENGLAND’S “ONE BANK” (more yesterday)
One Bank Research Agenda Discussion Paper [50 pages] – BoE
Video [7 hours] – BoE
Should central banks adopt a green agenda? – FT
The One Bank [of England] Research Agenda Launch – Tony Yates
Help the Bank of England - And Win $15,000 – BB
The Bank of England's theory of everything – BBC

  EUROPEAN CENTRAL BANK
Eurozone’s Future Remains at Risk, Mario Draghi WarnsNYT
Draghi warns the future of the eurozone was at risk unless member countries gave up some independence and created more Pan-European government institutions.

On the ECB running out of bonds to buyGlobal Macro Trading

ECB to pay the priceNordea
The first sovereign QE purchases by the ECB are looming, and have left core bond yields trading in a rather narrow range. Contrary to expectations that the ECB will not find any willing sellers, the initial purchases are unlikely to mark another leg lower in core yields. Such an outcome could actually trigger some profit taking, driving yields up a bit. Additionally, while the regulatory effects on the demand picture are sizable, its effects should not be overplayed, especially in the near term.

Monetary Developments in EZ Jan 2015ECB
Euro area: Further signs of stronger recoveryDanske Bank
Euro zone lending shows sign of turnaround as morale improvesReuters
M3 +4.1% (+3.8%), M1+9% (7.9%), credit +0.1% (-0.1%)

UNITED STATES
How Bad Could It Get Once the Fed Starts Raising Rates?WSJ

Key Measures Show Low Inflation in JanuaryCalculated Risk

Is the US Really Experiencing Deflation?Marc to Market

OTHER
The black hole for dollar liquidityNordea
The largest surprise of 2014 was the disinflation theme which characterized most markets. The Quantitative Tightening framework helped predict most of last year, and today suggests that the market may be underestimating the disinflationary forces from the Federal Reserve’s balance sheet policies once more.

Macro Digest: Up close and nasty – US slowdown loomsTradingFloor
US Q4 growth will likely be revised lower, 0% looms later this year * Europe has consistently beaten the US as regards expectations * Neither EU nor EM have the heft to compensate when US growth fades

February 2015: The Month In ChartsAlpha Now

‘Good Deflation’? It Doesn’t ExistWSJ
Even ‘good’ deflation constrains monetary policy’s effectiveness

REGULARS
Daily Central BanksWSJ
Hilsenrath’s Take: That Didn’t Go Well, Madame Chair * Fed’s Yellen Fends Off Charges of Partisan Tilt * ECB Faces Struggle in Sourcing Enough Bonds for QE * Draghi Defends ECB Policy Toward Greece * Ukraine Dials Back on Forex-Purchase Ban

Daily MacroWSJ
With Fed Risks, Greece Woes Resolved, Global Markets Rally

Danske DailyDanske Bank

Eye-OpenerNordea
Fed less patient, eyes on US inflation likely to turn negative * Riksbank to initiate QE programme today, surprising strength of the SEK



Dollar-Bloc Stays Bid, Euro and Yen in Well-Worn RangesMarc to Market


US OpenZH
Stocks Resume Rise To New Records As US Prepares For First Annual Deflation Since 2009

FX UpdateTF
The broad USD view remains on hold as Janet Yellen’s testimony failed to provide any clarity for the market. Overnight, the AUD rally faced a setback on weak Capex data as the market mulls next Tuesday’s Reserve Bank of Australia meeting.

From the FloorTF
Brent/WTI spread widens to highest in more than a year * WTI price continues to stand still as US inventories rise again, says Hansen * Opec reap benefits from Brent's rise and market share strategy * China's stocks in sharp rally after hints on fiscal policy move grow stronger * Europe and Home Depot is a Yes, but RBS is a No, says Garnry * Bunds hit all-time record and continue to hit new highs this morning, says Boye

Daily NewsletterTF
Asian markets received a Chinese fillip overnight after China's premier indicated he might be considering some economy-boosting measures. Now, as the European session kicks off, the market is braced for a slew of economic data from both sides of the Atlantic.

Martin Sandbu’s Free LunchFT
An alternative for Greece: What happens if agreement with the eurozone does not last?

FINNISH
AamukatsausNordea
Ruotsin keskuspankin elvytys saa jatkoa | Ranskan kuluttajaluottamus nousi korkeimmalle tasolle lähes kolmeen vuoteen | USA:n kuluttajahintaindeksi on tämän päivän tärkein julkistus

Keskustan kannatus kääntyi selvään laskuunYLE
Yle Uutisten helmikuun kannatuskyselyn perusteella keskustaan ovat kyllästyneet etenkin työntekijämiehet. Suosion laskua ei selitä kiivas keskustelu, joka syntyi keskustan aikeista laimentaa keskiolutta.

Näkökulma: EU ei rankaise ketään, ei edes SuomeaYLE
EU:n säännöt joustavat loputtomasti. Ranskan budjettivaje ei pysy missään rajoissa, mutta koskaan sitä ei rangaista, kirjoittaa Ylen EU-kirjeenvaihtaja Maria Stenroos.

Yhteiskunta tarvitsee keskituloisten ostovoimaaEK
Keskituloisten palkansaajien ostovoima on saatava kasvuun työn verotusta keventämällä. Verotusta ja sosiaalietuuksia tulee lisäksi kehittää niin, että kukaan pienituloisista ei enää putoa ns. kannustinloukkuun. Näillä toimilla parannetaan työllisyyttä ja edistetään nopeimmin talouskasvua.

EK leikkaisi valtion tuloja – keventäisi myös verojaTalSa
EK esittää vaalien jälkeiselle hallitukselle melkoista veronkevennyspakettia. Tämä toisi keskituloiselle reilun satasen lisää palkkapussiin.

EK esittää työn verotukseen 3-4 miljardin kevennystä  Verkkouutiset

EK:n Häkämies: Päästöoikeuksien hinnannousu kompensoitava energiaintensiiviselle teollisuudelleVerkkouutiset

Yritysten luottamus talouteen edelleen heikkoaEK
Kaikkien toimialojen suhdannekuva on on edelleen vaisu, eikä lähikuukausille odoteta parannusta

Julkisen talouden alijäämä ei poistu ilman määrätietoisia toimiaSuomen Pankki

Sivistysvaliokunnan mietintö 24/2014 vpEduskunta
Kansalaisaloite: Ruotsin kieli valinnaiseksi oppiaineeksi kaikilla kouluasteilla

Näin valiokunta äänesti: Keskusta pitää kiinni pakkoruotsistaSuomen Uutiset
 
Verotus on yksi Viron ensi sunnuntain vaalien pääteemoistaYLE
Tästä Viron veromallissa on kysymys: Autoilijan ja perijän onnelaYLE 

Vähittäiskaupan pikaennakko: tammik. -2,9% YoY – Tilastokeskus
Kuluttajien luottamus vahvistui - arviot inflaatiosta laskivat – Tilastokeskus
Kiinteistön ylläpidon kustannukset +1,4% YoY – Tilastokeskus