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Wednesday, January 4

4th Jan - Higher EZ inflation, FED minutes





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EUROPE
Daniel Gros: Can the EU Survive Populism?Project Syndicate
National politicians sometimes succumb to popular pressure, adopting the rhetoric – and even the program – of their populist adversaries. But the EU can do no such thing, without effectively hastening its own demise.

Intellectual Origins of Monetary Union and Way ForwardJussi Lindgren

Marine Le Pen rows back from hard eurozone exit proposals – FT
Le Pen calls for return to ECU-style currency after ‘Frexit’ – Politico

A Hard Brexit Looms Large With Resignation of U.K. Envoy to EU – BB

  EUROPEAN CENTRAL BANK
Five Reasons the ECB Will Not Announce QE Tapering in 2017 – Danske Bank

Economists react to surge in eurozone inflation – FT
Euro area annual inflation up to 1.1% - Eurostat
Euro area inflation rises at fastest pace since September 2013 – Pictet
Highest inflation in 3 Years, but underlying price pressure weak – Danske Bank
Why It's Too Soon for Draghi to Celebrate the Return of Inflation – BB
Tim Worstall: Inflation Up - But Not Enough For ECB To Stop Acting – Forbes


UNITED STATES
Upcoming changes to the Fed – ABN AMRO

  FED MINUTES
Minutes to Give Few Rate Clues as Fiscal Puzzle Clouds Fed View – BB
December meeting minutes – FED
Fed policymakers agree Trump fiscal boost poses inflation risk – Reuters
Fed Officials Endorse Gradual Rate Hikes – BB
Inside the Fed’s December Meeting: The Annotated Minutes – BB


OTHER
Eight centuries of bond market reversalsBank Underground
Venetians, Volcker and Value-at-Risk:

Reading news in the age of Trump? Think like a spy.Reuters


REGULARS
Danske DailyDanske Bank

Eye-OpenerNordea
Strong markets; stronger PMIs; higher inflation * Highest German inflation since mid-2013 * Yields jump higher on long dated supply expectations * Positive market sentiment strengthens USD – EURUSD below 1.04 intraday

Morning MarketsTF
Japanese equities surged in their first day of trading for the year helped by the weaker yen and upbeat sentiment driven by resurgent US manufacturing. The benchmark Nikkei 225 jumped 2.5%. Equity investor sentiment was positive in China as well with the Shanghai Composite up 0.7%.

Euro wrap-upDaiwa

Daily Market CommentMarc Chandler
Consolidation in Capital Markets

Daily Press SummaryOpen Europe

Brussels PlaybookPolitico

Five Things You Need to Know to Start Your DayBB
Euro inflation, growth * Yuan protection * Fed minutes * Markets mixed * Harder Brexit

10 things you need to know before the opening bellBI

US OpenZH
Risk On: 2017 Stock Rally Continues As Global Inflation Accelerates

FrontrunningZH

FX UpdateTF
Yesterday’s new highs in the US dollar were swiftly rejected but not in overwhelming fashion. Is this merely a sign of caution ahead of Friday’s US jobs report or a sign that the USD rally is faltering?


FINNISH
AamukatsausNordea
Inflaatiokehityksessä uusi vaihde päälle * Euroalueen inflaation odotetaan yllättävän positiivisesti Saksan hyvien lukujen jälkeen * Öljyn hinta kävi korkeimmalla tasollaan 18 kuukauteen * Ison-Britannian teollisuuden ostopäällikköindeksi nousi korkeimmalle tasolleen sitten kesäkuun 2014