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Tuesday, April 9

9th Apr - US Open: End of EU banking secrecy?



I’m thinking of a radical change. Instead of continuously posting the regular links, they are now moved to a permanent page. My standard posts would thus in the future only have article links and my own thoughts. If this is ok with you, fine. If not, drop me a message.

Bank secrecy in Europe looks like to be ending… Austria and Luxembourg have resisted, but the tone is changing fast. Also, Saxo Bank’s Q2-asset class comments are now out.


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EUROPE
Taking the pulse of the German economyNordea
the economy seems on track for slow growth in GDP of around 0.25% q/q in Q1. While that is not too bad compared to many other Euro-area countries, it’s not what one could call a locomotive for Europe.

The UKIP factor and German politics: All eyes on Alternative für DeutschlandOpen Europe
While we are not expecting it to cross the 5% threshold in September's federal elections - not even close - with polls between the CDU/CSU and FDP vs the SPD and Greens as tight as they are, AfD's electoral result could have a huge bearing on the nature of any coalition government that emerges from the elections

Split Austrian government ready for EU talks on bank secrecyReuters
Austria will join Luxembourg for talks with the European Union on how to crack down on cross-border tax cheats, Chancellor Werner Faymann said on Tuesday, signaling an easing of its hardline stance on bank secrecy.

Luxembourg undecided on bank data exchange deal: finance ministerReuters
Luxembourg is considering ending its bank secrecy rules by automatically handing over details of bank account holders to other European Union states, its finance minister said on Tuesday.

  PIIGS
Yet again the eurozone crisis is butting heads with national democracyOpen Europe
After a lengthy absence Portugal returned to the headlines over the weekend with the Constitutional Court ruling that some of the government austerity measures were unconstitutional.

Italy’s elections had little impact on TARGET2 balancesBruegel

Spain Bailout Less Likely on Lower Funding Costs: Moody’s BB
Spain is less likely to need a sovereign bailout now than it was in October as funding costs have fallen since then, Moody’s Investors Service said.

UNITED STATES
Bernanke Says Fed to Press Banks to Curb Liquidity RiskBB
Fed plans to avert strains in the banking system by pushing financial companies to better manage liquidity risk and reduce reliance on wholesale funding.

ASIA
Yen Surges As Japan's Deputy PM Says Excessive Yen Gain "Corrected"ZH

Guest post: QE on steroids in Japanalphaville / FT

OTHER
The golden rule for foreign exchange TradingFloor
My core views in FX have not changed, I have a preference for USD and GBP over EUR and JPY, and expect this theme to continue. However, the additional complexity of the Japanese ‘yield grab’ has altered correlations and increased volatility.

Q2 Insights: The end of the free rideTradingFloor
Three months into 2013 and we see growth being lowered and fiscal deficit outlooks increased by all Club Med countries, plus France and Germany. The IMF has lowered world growth and we are looking at a 2013 that is a mirror image of 2011 and 2012.

Q2 Macro Insights: Modest uptick in growthTradingFloor
The low-growth environment continues in developed economies and is not expected to be much stronger this year as several economies engage in fiscal consolidation, notably in peripheral Euro area economies, but also in the US.

Q2 FX Insights: Trees still don’t grow to the skyTradingFloor
Risk appetite sentiment will likely falter in Q2. And this perhaps is due to three reasons: seasonality, worries over the US Federal Reserve slowing the liquidity gravy train and ongoing European Union woes.

Q2 Equity Insights: Another positive year – TradingFloor
The US remains our top pick among all the developed equity markets simply because it has been by far the best in navigating the financial crisis.

Q2 Commodity Insights: Tail-end risks leave little room to upsideTradingFloor
The exuberance of the New Year may have abated, with gold suffering its first back-to-back quarter losses since 2001, but commodities in general could rise slightly in the second quarter.