Sweden and Norway are reporting strong economic numbers

Sweden reported stronger business and manufacturing confidence numbers earlier this week, but the Feb retail sales report was a more significant catalyst. There are four new developments from Norway today. Individually and collectively, they are positive for the NOK. The Norwegian krone and Swedish krona are the strongest major currencies today, appreciating about 0.85% and 0.6% respectively. While the fundamental justification of the more modest gains in the other major foreign currencies may be more elusive, in the Scandi’s case, fundamental developments are supportive

Why are Irish taxpayers bailing out unsecured bank creditors?

This was the question put to the ECB’s Klaus Masuch by one persistent Irish journalist. The answer from Masuch was a complete dodge, a non-answer, because everyone knows that the Irish government has heaped what rightfully should be bondholder burdens onto the Irish taxpayer. The video below is wonderful in getting at the heart of

Ten Observations To Start the Week

Ten thoughts on the economy and markets that include events in Greece, the US, Sweden, the EU and China

Robert Shiller: “Sweden has a bubble”

Sweden may have a bubble in its housing market. But now that housing prices have begun to fall, it is too late to deploy countermeasures

Euro Squeezed Higher, Takes Others With It, Positive Newstream

Successful Spanish and Greek bill auctions and better than expected German IFO caught the market wrong-footed, if the record net speculative short at the IMM is anything to go by. The euro has shot up to almost $1.3090 and pulled up the other major currencies and emerging market currencies in its wake

French and bank downgrades likely while Sweden blows away growth estimates

A French press report warned that S&P could put France on negative credit watch within a couple of weeks. Moody’s warned that all 27 EU countries are at risk from the euro zone debt crisis. Moody’s also placed subordinated debt, junior debt and tier 3 capital of 87 banks in 15 European countries on negative watch. The market impact seemed marginal at best.

There was some unadulterated good news today in the form of Sweden’s Q3 GDP. It blew away expectations of a 0.3% quarter-over-quarter increase with a 1.6% showing

On Sweden and Capital Preservation

Capital preservation has once again has become mantra. The safety offered by Japan and Switzerland are meeting resistance from policy makers. As the market looks for alternatives, the Swedish krona has much to offer, including a relatively robust economy, low public debt and a current account surplus

The Irish stress tests and euro zone options: monetisation, default, or break-up

The results of the Irish stress tests are going to be released this afternoon at 430PM Irish time. I will be talking about the implications for investors in European markets on CNBC’s Power Lunch show.

I think one has to be cautious about the sovereign debt of any of the periphery countries at this point. I also think haircuts on Irish bank debt is coming as well as a Portuguese bailout. But there are a lot of unsolved issues concerning Spanish banks and as well as the German, British and French holders of Irish bank debt. Here’s the background to what I will say on the show

The krona is easily the strongest currency within the G10 this year

By Marc Chandler The Swedish krona is surging today. Hawkish central bank comments have offset disappointing retail sales figures and there is some talk of some month-end related demand. The euro recorded multi-year lows against the krona on Feb 16 just above SEK8.7 and had recovered to a high near SEK8.8550 earlier today before reversing

In a Disappointing Europe, Sweden Stands Out

Europe is engulfed in a financial crisis that is also becoming a political crisis.  Sweden stands out as an exception and we affirm our expectation of the krona’s out performance in period ahead. Sweden’s economy contracted 5.3% last year but has rebounded smartly this year.  Q3 GDP was reportedly earlier today and at 2.1% quarter-over-quarter

Quick Thoughts on the Irish Bailout

I am still in catch-up mode this morning but I wanted to highlight a few points on the Irish bailout. The first has to do with the European stress tests. If you recall, the two Irish banks tested were Bank of Ireland and Allied Irish Bank.  Both passed the tests. These paragraphs from the BBC

German budget austerity requirements divide EU summit

The Germans are planning to put forward a plan to change  guidelines to the stability and growth pact (SGP) to give it more teeth. The sense in Berlin is that the SGP, which limits budget deficits to 3% and debt-to-GDP to 60%, has been a bust as flouting of the SGP has been widespread.  I