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Thursday, March 21

21st Mar - US Close: Cyprus on the Edge


Quote of the Day, 18/01/2008, Trichet: “For a small, open economy like Cyprus, Euro adoption provides protection from international financial turmoil.”


Quote of the Day II, 2013, anonyymi:  ”Se on ihan varma, että eurojunan edessä olevassa tunnelissa ei mitään valoja näy. Siellä on Paavo Lipposen iloinen joulutervehdys, Markku Huuskon kantaaottava pääkirjoitus, Jyrki Kataisen vastuunkanto, harmonikanraiskaajan versio tiputanssista ja Barroson öljytty, paidaton ylävartalo moobseineen.”

The Cyprus-post has been updated, again.

Previously on MoreLiver’s:

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

Tomorrow’s Tape – WSJ
US: Biggest Drop In A Month For Stocks Led By Big Bank Battering – ZH
Morning Briefing (Asia) – BNY Mellon

EUROPE
According to the flash estimate of the euro zone's economic activity in March, conditions deteriorated at a faster pace than before for the month. Hopes that the moderation in the economy's contraction from the fourth quarter of last year to the first quarter of this year would continue seem to be fading.

Too big to guaranteeButtonwood / The Economist
The difficulties involved in solving the Cyprus crisis are all the greater because the banks are much bigger than the domestic economy. But Dhaval Joshi of BCA Research points out that this is true for the euro zone as a whole

Social unrest coming to Europe? If not, why not?Fabius Maximus
Five years of crisis in Europe, yet its streets remain mostly calm. What accounts for this? How long will it continue?

EU commission prepares ground for far-reaching economic powerseuobserver
The ground is being prepared for legislation that would prevent member states from undertaking major economic reforms without running it by the European Commission first.

Italy heading towards a AAA rating?Nordea
The ratings agency Standard & Poor’s released earlier this week its updated report on Global aging. The report shows that in general, most countries studied have actually already made a lot of progress in addressing the increasing age-related spending compared to 2010, even though a lot of work remains.

Why the United Kingdom Should Adopt a Nominal GDP Target PIIE
The review of the United Kingdom’s monetary policy framework published alongside the budget today reveals that the UK Treasury has ruled out replacing inflation targeting with nominal GDP targeting. That is a shame. Nominal GDP targeting would provide more space for the Bank of England to support the recovery in the near term

UNITED STATES
Bernanke’s employment dashboardalphaville / FT
RBC Capital constructed some charts based on what Bernanke said the Fed is watching.

S&P500 Profit Margins Tumble To Q1 2010 LevelsZH

Is The Market Cheap?ZH

Philadelphia Fed Manufacturing Survey
Expansion in March – Calculated Risk
Moves Back to Positive Levels – Bespoke
Modest Increase, Average Hours Worked Tumble – ZH

OTHER
The Great 'Global' Un-Recovery ZH
Comparison of the Markit PMI numbers

EMEA WeeklyDanske Bank (pdf)

EM Big Pictue: What has ChangedMarc to Market
Tightening in Brazil will likely be more gradual * Czech still in verbal intervention mode, despite large CZK losses * The one-way THB appreciation trend may be coming to an end soon * Philippines is preparing more measures to discourage speculative foreign investments * Fresh cross winds for Korea asset prices are negative on net

Keeping it real Buttonwood / The Economist
This week's column points out that financial repression - holding interest rates below the rate of inflation - is a levy on savers that provokes less protest than in Cyprus, but has similar effects on purchasing power over the long run.

How Franklin Roosevelt Secretly Ended the Gold StandardBB
On March 4, 1933, Franklin D. Roosevelt became president for the first time, promising an “adequate but sound” currency. The next day, a Sunday, he closed the nation’s banks. “We are now off the gold standard,” he privately declared to a group of advisers.

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