“Kun hallituksen ministereitä kuuntelee olemme rikas maa,
jonka tulisi ylpenä maksaa nettomaksunsa eu:iin. paitsi sitten kun puhutaan
palkkaratkaisusta, mummojen hoidosta tai hallituksen investointeja tukevasta
politiikasta olemmekin yhtäkkiä karmeassa taloudellisessa kriisissä, jota ei hallitusneuvotteluiden
aikaan voinut kuvitellakaan. elämmekö kahdessa rinnakkaistodellisuudessa?” –
Anonyymi
Previously on MoreLiver’s:
Off-Topic & Finnish (anything else but markets)
Economics & Markets (for wonks)
Weekly Support (weekly previews and reviews)
Best of the Week (what I liked during the past week)
Roundups &
Commentary
News – Between
The Hedges
Markets – Between
The Hedges
Recap – Global
Macro Trading
Roundup – Kiron
Sarkar / The Big Picture
EUROPE
Highlights: Comments from euro zone finance
ministers – Reuters
France insisted on Monday that euro zone
finance officials should discuss the rising strength of the euro, but several
ministers played down the issue and the G7 was expected to call for
"market-determined" exchange rates.
Banks in
the EU may need to comply with an international liquidity rule before
competitors in other parts of the globe as part of a deal on how the bloc
should implement Basel banking standards.
Euro Area Financial Conditions Continue to
Improve, but... – Marc
to Market
Launching a new collaboration: Euroscepticism
and the European project – europp
/ LSE
Mainstream parties in the Nordic countries have
tried to deal with the rise of the far-right through a mix of isolation, tolerance
and even collaboration – europp
/ LSE
CYPRUS
Cyprus "Radical Rescue" Proposal Proves Greece Not Unique; Sovereign
Haircuts Detailed in "Secret" EU Plans; Russian Connection – Mish’s
Cyprus deal to include bail-in? – TradingFloor
Steen
Jakobsen: The EU needs to bail out Cyprus but talks have been surprisingly
difficult as the European ministers continues to play to their domestic
audiences. In the worst case, i.e: further hair-cuts for investors, this could
be start of something negative.
Cyprus doesn’t want a radical rescue, thankyouverymuch – alphaville
/ FT
A radical
new option for the financial rescue of Cyprus would force losses on uninsured
depositors in Cypriot banks, as well as investors in the country’s sovereign
bonds, according to a confidential memorandum prepared ahead of Monday’s
meeting of eurozone finance ministers.
EURO
Weidmann Warns Governments Against Trying to
Weaken Euro – BB
ECB council
member Jens Weidmann said the euro isn’t seriously overvalued and warned
governments against trying to weaken the currency.
Draghi’s pro-LSAPs? – alphaville
/ FT
Mario
Draghi talked, everyone was a little confused, a little wary… so the euro fell.
He OMT’ed the FX market. Clever. But what if talking isn’t enough? As Capital
Economics argue, the power of talk is diminished when others are taking action:
Europe’s traditional strong-currency
countries resisted France’s calls for concerted action to
bring down the rising euro, saying it’s up to markets to set exchange rates.
UNITED STATES
It's Not The Economy, It's Inflation & The
Fed Stupid – ZH
As Credit
Suisse notes, in fact over the past few years, EPS upgrades and outlooks are
negatively correlated with stocks!
FED’S YELLEN
Fed’s Yellen Focused on Jobs – WSJ
A senior
Fed official signaled continued unhappiness with the state of the job market in
a speech , an indication the Fed hasn't seen enough improvement in the economy
yet to call off its easy money policies.
Fiscal policy and the (delayed?) federal-state
divergence – alphaville
/ FT
Yellen
notes that fiscal policy has been less of a tailwind in the latest recovery
relative to the average of four previous US recoveries:
Janet Yellen Discovers Okun's Law Is Broken,
Confused Record Russell 2000 Doesn't Lead To Plunging Unemployment – ZH
A different case
against the skills mismatch argument: irrelevance – alphaville
/ FT
ASIA
Getting richer by getting poorer -- How far
does JPY have to fall? – ZH
Steven
Englander / Citi
OTHER
January 2013: the month in charts – Thomson
Reuters