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Thursday, February 28

28th Feb - US Close: Sequester's here


Estimated -0.5% effect on GDP. At current growth levels, not nice.


Previously on MoreLiver’s:

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

Tomorrow’s Tape: Incomes and Spending, and Sentiment – WSJ
European Summary – ZH
US: Stocks Plunge To Red As 'All-Time High' Hopes Fade – ZH
Morning Briefing (Asia) – BNY Mellon
  US Sequester Triggered After Senate Rejects Two Proposals

EUROPE
From Monti, a warning to France…and othersBrussels Blog / FT
Monti warned that because economies take a long time to grow after implementing tough austerity and economic reform measures, public opinion quickly turns against the policies and the result is “the coming up of political forces that, of course, oppose the right policies”

The Utter Fragility Of The Eurozone: Even Democracy Is A ThreatTestosterone Pit
They all document with their own words just how fragile the Eurozone has become. Every little thing can break it apart. Democracy itself, instead of being a fundamental strength, is seen as a threat: if the “wrong” party or an anti-establishment populist or an anti-austerity billionaire gains the most votes in one country, the entire 17-nation construct might break apart.

Italian election may have a silver liningpresseurop
Berlin and its allies can no longer count on loyal supporters in Italy, or in Spain where the entire political system is hanging by a thread, and run the risk of having no voice in those countries. The dialectic of austerity and contrasting predictions as to the future of the European Union should now be aired in public for the benefit of Europe’s citizens…This is probably the last chance to save the facade of European consensus, before it crumbles and falls, taking the entire building with it.

Spain's international balances on a rollIbex Salad
The income account continues to show the effects of all that repatriation of government debt that was sponsored by the ECB's 3-year LTRO programs.

Speech Yves Mersch: The European banking union – first steps on a long marchECB

UNITED STATES
Great Graphic: US Money Printing is Not All ThatMarc to Market

  SEQUESTER
Sequester 101MarketBeat / WSJ

The Sequester: Bring On the PainMarketBeat / WSJ

Republicans want to make the sequester better. Why won’t Obama let them?Wonkblog / WP

Wall Street on sequestration: MehWonkblog / WP

Sequester Fester, No CliffMarc to Market

ASIA
The Pope of Japanese FinanceProject Syndicate
While the world focuses on the gathering of cardinals in Rome to choose a successor to Pope Benedict XVI, a similar conclave is underway in Tokyo to choose the Bank of Japan’s (BOJ) next governor. And, as with the deliberations at the Vatican, politics, not doctrinal debate, is underpinning the decision-making process in Japan.

OTHER
*Ten QE QuestionsProject Syndicate
Nouriel Roubini: Most observers regard unconventional monetary policies such as quantitative easing as necessary to jump-start growth in today’s anemic economies. But questions about the effectiveness and risks of such policies have begun to multiply as well.

Risk On, Risk Off IndexThe Big Picture
Plotting High Beta, High Yield and Emerging Markets versus Consumer Staples, Health Care and Low Beta names. When risk appetites are higher, it is reflected in the ratio moving higher.

EMEA WeeklyDanske Bank (pdf)

Commodities Update: Oil set for better flowDanske Bank (pdf)

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