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Come back Mr Juncker, all is forgiven

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  • A template is an instrument used as a gauge to bring a piece of work to its desired shape. It is hard to see how the disastrous attempts at a Cypriot bailout have brought the Euro any closer to its desired shape. The bailout moved the Euro away from banking union, and raised questions of the Euro's existence.
  • Eurogroup head Dijsselbloem retracted his statement that Cyprus was a template for future Euro bailouts, but just like the retracted raid on bank deposits below EUR100,000 the damage is done by the initial act. People remember the risk, not the retraction.
  • Fed President Dudley was sounding characteristically dovish yesterday, saying he wanted accommodative policies until the recovery was secure. He did say that economic momentum could lead him to support a scaled back bond buying program by the Fed, however.
  • Bank of Japan governor Kuroda has been making the normal sort of comments Bank of Japan governor Kuroda makes. Markets have not paid much attention. The UK offers budget related testimony and the US offers durable goods, new home sales, and consumer confidence data.

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