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EUROPE
Use of fund in budget
could rise to 80 billion kroner: Olsen * Says bank still has room to maneuver
on interest rates
The ECB’s response to
the Crisis – not providing stimulus to the Eurozone economy when it needed it,
and allowing it to slip into a low inflation trap – is a reflection of the
monetary union’s faulty architecture. This column recalls a 1998 manifesto from
several distinguished scholars that warned EZ policymakers of the potential
consequences of a misguided policy framework. Two sets of issues need to be
critically addressed by current EZ policymakers: its objectives and
instruments.
Euro area: Revisiting the ECB’s Lower Bound – Pictet
UNITED STATES
U.S. core consumer
prices post largest gain in four-and-a-half years – Reuters
Core U.S. Consumer
Prices Rise by Most in More Than Four Years – BB
OTHER
They don't do much for inflation
and will last until at least 2018
REGULARS
Dented sentiment, desire for
safe-havens, eyes on US inflation * US inflation to take another step upwards *
Rates directionless with equity markets * US inflation risks sending EURUSD
lower
Share markets retreated in Asia as
investors reacted to a dip on Wall Street and oil gave up gains on rising US
inventories. Shares headed lower in Tokyo and Sydney giving investors vertigo
from the recent rollercoaster ride in equities. The Shanghai Composite lost
ground too. In forex markets the won firmed after policymakers in Seoul said
they would take steps to curb volatility. And the Aussie dollar took a hit
after an RBA board member said the currency was too high and could head even
higher on the back of negative interest rate regimes prevailing elsewhere.
EU summit talks on UK
renegotiation tougher than expected as numerous states raise objections * Cameron
hints at late June EU referendum in conversation with Spanish counterpart * Merkel
says Germany “ready to compromise” to keep UK in EU, but Renzi warns “some
steps backwards” have been made * Austrian Chancellor “will stick to” asylum
cap despite EU warnings * ECB accounts hint at further easing in March * Le
Pen’s party applies for €27m loan from Russia * At least 80 out of FTSE 100
firms expected to endorse ‘Remain’ vote
No UK deal yet — EU
summit turns to trench warfare
Futures Sink To Session Lows, Europe
Slides Following Chinese RRR Hike Confusion, Brexit Concerns
Frontrunning – ZH
Sterling weakened as
Thursday’s confidence in a positive outcome from the EU-UK talks yielded to
more concern overnight as the negotiations dragged on. The yen has been the
main beneficiary with the USD hanging on to its coattails. There's big binary
risk intraday depending on the UK summit news.
Today's trade looks set
to be characterised by the ongoing 'Brexit' talks and the uncertain pall they
are casting over sterling the euro and sentiment as a whole.
FINLAND
& FINNISH
Maailmankauppa kangertelee yhä * Huomio kiinnittyy tänään
USA:n inflaatioon * Britannian EU-neuvottelut venyivät eilen yömyöhälle *
Meksikon keskuspankki nosti yllättäen ohjauskorkoaan