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EUROPE
Euro Bond Crisis Returns As Germany Pushes Euro
Sovereign Debt Bail-in Clause – ZH
The Never-Ending Story: Europe’s Banks Face a
Frightening Future – BB
For Italy, the problem
is that the bad loans of the weakest may need to be paid for by the rest
'If I were a politician
in Italy, I'd want my own currency as fast as possible: that is the only way to
avoid going bankrupt,' said German 'Wise Man'
Bail-in rules can’t be changed, but offer some flexibility – Italy24
The boom-bust cycle in
the Eurozone between 2000 and 2008 is essentially a story of cyclical
asymmetries between the Core and the Periphery. While stressing the importance
of addressing these asymmetries – especially via fiscal policy – the ECB has
failed to take them explicitly into account in its own policy-setting. This
essay argues that these asymmetries may persist precisely because they are not
a central target of stabilisation policy – both fiscal and monetary.
EUROPEAN
CENTRAL BANK
Almost one-fifth of
euro-area debt yields below deposit rate * Markets fully pricing in 10
basis-point cut in March by ECB
UNITED STATES
5 Things to Watch for in the Fed Minutes – WSJ
OTHER
Macroview: The dark side
of negative interest rates – Pictet
Recent equity market peaks coincided with the ECB and BoJ decisions to
impose negative rates. From December 1st to last Friday, the MSCI World index
declined by 14%. During the same period, the MSCI world banks index declined by
24%.
Continued stock volatility could have serious consequences for the global
economy.
Waiting for the central bank response
Barclays, UBS among firms stepping up scrutiny after fines * New hires
bring skills from the battlefield to trading floor
Main takeaways and
slides from a webinar regarding the recent market turmoil
REGULARS
Has the stock market
found a bottom?
Better risk appetite, higher oil
prices, confidence to take a hit * German ZEW expected to dive * German bonds
duck further losses despite recovering equities * USD rebound continues
Investors are hoping for a sustained
bounce in equities following a solid recovery in Japan but today's European and
US data may place further headwinds ahead of struggling stocks.
Daily FX Comment –
Marc Chandler
After a week of New
Year's holidays China is back in the markets and started the week with a 1.35%
rise in the CNY. But PBoC currency policy remains murky and inconsistent
providing little guidance for investors. Exchange-rate liberalisation remains a
distant dream.
Daily Press Summary – Open
Europe
Schulz:
I cannot pre-empt European Parliament’s approval of emergency brake on benefits
but wrong to speak of a veto * New poll sees Remain lead shrink from 18 to
eight points * Cameron expected to call emergency Cabinet meeting after
finalising renegotiation * Visegrad Group thwart Merkel and call for ‘Plan B’
on migration crisis * German Constitutional Court to hear case over ECB’s
bond-buying programme
Brussels Playbook – Politico
Energy package today —
Fragile UK deal — Syria gets worse
Market Euphoria Fizzles As USDJPY
Resumes Slide; Crude Disappointed By Lack Of Production Cut
ECB president Draghi did
his best to shore up confidence in the central bank put yesterday but let’s see
how much traction his rhetoric has after recent signs that markets are losing
faith in policymakers' influence. It’s a key test for risk appetite today as
the US returns from a long weekend.
The European Central
Bank president Mario Draghi bolstered sentiment on Monday but markets were
still hunting on Tuesday for clarity about whether the bounce was the start of
a real recovery or would soon fail.
FINLAND
& FINNISH
Japanin sukellukselle ei näy loppua * Lisäviitteitä
Englannin keskuspankin varovaisuudesta * Draghin mukaan EKP ei epäröi toimia *
Fedin johtajista tänään äänessä Patrick Harker ja Kashkari