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Wednesday, February 13

13th Feb - US Close




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Previously on MoreLiver’s:

Roundups & Commentary
Markets – Between The Hedges
The Closer – alphaville / FT

Tomorrow’s Tape – WSJ
Morning Briefing (Asia): Markets React to Conflicting Views Over G7 Statement – BNY Mellon
  The G7 statement: a camel is a horse designed by a committee
US: What Comes Next: 1518, 1517, 1519, 1520, ... – ZH

EUROPE
Italy’s Taxing ElectionProject Syndicate
Given the economic and political tumult roiling not only Italy, but the eurozone as a whole, the outcome of Italy's election will have a far-reaching impact. Just what that impact will be, however, is impossible to predict – that is, unless Silvio Berlusconi returns to power, in which case the consequences will be all too clear.

A Banking Union for the Euro AreaIMF
Exorcising eurozone ELA as we know italphaville / FT
IMF: Centralizing all LOLR functions at the ECB would in the steady state eliminate bank-sovereign linkages present in the current ELA scheme

MARKETS
  STOCKS
Momentum SlowdownDynamic Hedge
The sectors largely responsible for leading the market higher in the last couple months: $XLF, $ITB, $XLY, and $XLI, currently exhibit a slow down in momentum and underperformance relative to the S&P 500.

Buffett’s Favorite Valuation Metric Surges Over the 100% LevelPragCap
Wilshire 5,000 total market cap index relative to GNP.

  FOREX
Macro Currency Strategy: Currency War SpecialHSBC (pdf)

Currency handbags at dawn alphaville / FT
HSBC argue that examples of behaviour consistent with currency war are on the rise

Since November, one of the major (G4) currencies, Japan, has dramatically changed policy.  Furthermore, Japan has directed its change in a way that causes another G4 currency, the euro, to strengthen.  This action and ensuing reaction has triggered energetic discussion of a possible currency war. Will we see one?  Maybe.  Are the currency moves we are seeing volatile and abrupt enough to ignite one?  Yes.

IN FINNISH
Tutkija: Suomen EU:lta saama tukieuro vain 50 sentin arvoinenYLE
EU-tukirahat kohdennetaan tehottomasti, Elinkeinoelämän tutkimuslaitoksen tutkimusjohtaja sanoo.

Psst valtioneuvosto, IMF:llä on asiaaHenri Myllyniemi / piksu

Kuntien taloustilanne kiristyi vuonna 2012Tilastokeskus

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