The New Year’s Day Today

Over the holiday, main stories: Greek elections now coming in Jan; ECB debate continues: Knot says no proposal for sovereign QE yet but Praet says current measures not enough and there will be negative CPI prints for a number of months that they can’t look through; Spanish CPI missed estimates, -1.1% YoY vs -0.7% exp; Chicago PMI lower than exp but US Pending Home Sales better —

* Draghi getting the argument lined up for ECB QE: “The risk that we do not fulfill our mandate of price stability is higher than six months ago,” ….”We are in technical preparations to adjust the size, speed and compositions of our measures early 2015, should it become necessary to react to a too long period of low inflation. There is unanimity within the Governing Council on this.”
* He also says anyone leaving the Eurozone would cause difficulties for all of the members, and Europe must “complete” monetary union

* Tspiras has been wooing investors as apparently we’re not worried about SYRIZA anymore

* Last year’s 3 Fed dissenters rotate off the voting panel this year

* BOJ Kuroda confirms again how committed he is to reflation: “There are plenty of ways to adjust monetary policy”

* Headache remains for Merkel over the rise of anti-immigration sentiment – she now directly attacks supporters of the anti-Muslim marches, though 29% of people support them

* Russia props up various companies with capital injections: Yamal LNG, Gazprombank, VTB

Singapore’s slower-than-expected Q4 growth signals weaker outlook for 2015

* HSBC think China will cut rates twice in H1

 

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