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A template for Euro finance ministers

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  • Cypriot banks are supposed to reopen tomorrow which means that we really should learn about the deposit withdrawal restrictions today. What happens tomorrow will be an interesting practical experiment in behavioural economics.
  • A template for Euro finance ministers: if they truly believe the Euro in Cyprus is worth the same as a Euro elsewhere, they should publically transfer their life savings to banks in Cyprus to restore confidence. After all, a Californian Senator would not think twice about holding savings in a bank in Washington DC.
  • Euro economic sentiment data is due, with the markets perhaps inclined only to see bad news. We also have French final GDP. Concerns about French and Italian growth prospects have led us to revise down our Euro GDP estimate this year to -0.4%.
  • UK "final" Q4 GDP is due (it will still be revised) and is seen unchanged. The US continues to offer little data, though we do have rather a lot of Fed speakers crowding around podiums today - the general message seems to be continued accommodation, but brief mentions of how it might be scaled back.

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