<p><span style="line-height: 1.5em;"><div class="image-container float_right" style="width:400px"><div class="image"><img src="http://static5.businessinsider.com/image/517f11eaecad04ab16000001-3152-2364/george-soros-14.jpg?maxX=400" border="0" alt="George Soros" width="400" /></div><p class="source">REUTERS/Ralph Orlowski</p></div>A few weeks ago, billionaire financier <keyword id="101566" type="PERSON" weightage="60" keywordseo="George-Soros">George Soros</keyword> </span><a href="http://www.project-syndicate.org/commentary/a-simple-solution-to-the-euro-crisis-by-george-soros">gave Germany a policy ultimatum</a><span style="line-height: 1.5em;">: he said the country ought to agree to "Eurobonds" – which would mutualize the public debts of euro area member states – or leave the common currency so that the remaining member states could proceed to introduce Eurobonds together, thus effectively ending the euro crisis.</span></p>
<p>Soros's speech is the subject of German economist <keyword id="255830" type="PERSON" weightage="60" keywordseo="Hans-Werner-Sinn">Hans-Werner Sinn</keyword>'s latest piece for Project Syndicate: "<a href="http://www.project-syndicate.org/commentary/should-germany-exit-the-euro-by-hans-werner-sinn">Should Germany Exit the Euro?</a>"</p>
<p>Sinn argues that Germany should neither accept Eurobonds nor exit the euro. In short, peripheral countries should continue to undergo austerity:</p>
<p style="padding-left: 30px;"><span style="line-height: 1.5em;">From this perspective, the crisis countries would not be spared painful retrenchment as long as they remained in a monetary union that includes competitive countries. The only way to avoid it would be for them to exit the euro and devalue their new currencies. But, so far, they have not been willing to go this route...</span></p>
<p style="padding-left: 30px;"><span style="line-height: 1.5em;"></span><span style="line-height: 1.5em;">Thus, the only remaining option, as unpleasant as it may be for some countries, is to tighten budget constraints in the eurozone. After years of easy money, a way back to reality must be found. If a country is bankrupt, it must let its creditors know that it cannot repay its debts. And speculators must take responsibility for their decisions, and stop clamoring for taxpayer money whenever their investments turn bad.</span></p>
<p><span>In the comments section, George Soros dropped an 818-word response to Sinn's critique of the speech.</span></p>
<p><span>"<span>Hans-Werner Sinn has deliberately distorted and obfuscated my argument," he begins, and proceeds to argue that if Germany accepts Eurobonds, it could "work wonders" in healing peripheral economies by allowing them to undertake tough structural reforms in a more benign environment.</span></span></p>
<p><span><span>On the other hand, if Germany continues to reject them, Soros says weakness in the peripheral economies will eventually drag Germany down too, as the latest economic data releases seem to be hinting at.</span></span></p>
<p><span>George Soros's response to Hans-Werner Sinn is included below.</span></p>
<p><span>---------------------------------------------------------------------------------------------------------------------------</span></p>
<p><span>Hans-Werner Sinn has deliberately distorted and obfuscated my argument. I was arguing that the current state of integration within the eurozone is inadequate: the euro will work only if the bulk of the national debts are financed by Eurobonds and the banking system is regulated by institutions that create a level playing field within the eurozone.</span></p>
<p><span></span><span style="line-height: 1.5em;">Allowing the bulk of outstanding national debts to be converted into Eurobonds would work wonders. It would greatly facilitate the creation of an effective banking union, and it would allow member states to undertake their own structural reforms in a more benign environment. Countries that fail to implement the necessary reforms would become permanent pockets of poverty and dependency, much like Italy’s Mezzogiorno region today.</span></p>
<p><span></span><span style="line-height: 1.5em;">If Germany and other creditor countries are unwilling to accept the contingent liabilities that Eurobonds entail, as they are today, they should step aside, leave the euro by amicable agreement, and allow the rest of the eurozone to issue Eurobonds. The bonds would compare favorably with the government bonds of countries like the United States, the United Kingdom, and Japan, because the euro would depreciate, the shrunken eurozone would become competitive even with Germany, and its debt burden would fall as its economy grew.</span></p>
<p><span></span><span style="line-height: 1.5em;">But Germany would be ill-advised to leave the euro. The liabilities that it would incur by agreeing to Eurobonds are contingent on a default – the probability of which would be eliminated by the introduction of Eurobonds. Germany would actually benefit from the so-called periphery countries’ recovery. By contrast, were Germany to leave the eurozone, it would suffer from an overvalued currency and from losses on its euro-denominated assets.</span></p>
<p><span></span><span style="line-height: 1.5em;">Whether Germany agrees to Eurobonds or leaves the euro, either choice would be infinitely preferable to the current state of affairs. The current arrangements allow Germany to pursue its narrowly conceived national interests but are pushing the eurozone as a whole into a long-lasting depression that will affect Germany as well.</span></p>
<p><span></span><span style="line-height: 1.5em;">Germany is advocating a reduction in budget deficits while pursuing an orthodox monetary policy whose sole objective is to control inflation. This causes GDPs to fall and debt ratios to rise, hurting the heavily indebted countries, which pay high risk premiums, more than countries with better credit ratings, because it renders the former countries’ debt unsustainable. From time to time, they need to be rescued, and Germany always does what it must – but only that and no more – to save the euro; as soon as the crisis abates, German leaders start to whittle down the promises they have made. So the austerity policy championed by Germany perpetuates the crisis that puts Germany in charge of policy.</span></p>
<p><span></span><span style="line-height: 1.5em;">Japan has adhered to the monetary doctrine advocated by Germany, and it has experienced 25 years of stagnation, despite engaging in occasional fiscal stimulus. It has now changed sides and embraced quantitative easing on an unprecedented scale. Europe is entering on a course from which Japan is desperate to escape. And, while Japan is a country with a long, unified history, and thus could survive a quarter-century of stagnation, the European Union is an incomplete association of sovereign states that is unlikely to withstand a similar experience.</span></p>
<p><span></span><span style="line-height: 1.5em;">There is no escaping the conclusion that current policies are ill-conceived. They do not even serve Germany’s narrow national self-interest, because the results are politically and humanly intolerable; eventually they will not be tolerated. There is a real danger that the euro will destroy the EU and leave Europe seething with resentments and unsettled claims. The danger may not be imminent, but the later it happens the worse the consequences. That is not in Germany’s interest.</span></p>
<p><span></span><span style="line-height: 1.5em;">Sinn sidesteps this argument by claiming that there is no legal basis for compelling Germany to choose between agreeing to Eurobonds or leaving the euro. He suggests that, if anybody ought to leave the euro, it is the Mediterranean countries, which should devalue their currencies. That is a recipe for disaster. They would have to default on their debts, precipitating global financial turmoil that may be beyond the capacity of authorities to contain.</span></p>
<p><span></span><span style="line-height: 1.5em;">The heavily indebted countries must channel the rising their citizens’ discontent into a more constructive channel by coming together and calling on Germany to make the choice. The newly formed Italian government is well placed to lead such an effort. As I have shown, Italy would be infinitely better off whatever Germany decides. And, if Germany fails to respond, it would have to bear the responsibility for the consequences.</span></p>
<p><span></span><span style="line-height: 1.5em;">I am sure that Germany does not want to be responsible for the EU’s collapse. It did not seek to dominate Europe and is unwilling to accept the responsibilities and contingent liabilities that go with such a position. That is one of the reasons for the current crisis. But, willy-nilly, Germany has been thrust into a position of leadership. Europe would benefit from a benevolent hegemonic power. So would Germany.</span></p>

George Soros Posts 818-Word Takedown Of Rival In The Comments Section Of A Blog Post

<p><span style="font-size: 15px; line-height: 1.5em;"><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/544403cd6da8115303b5873a-1200-924/merkel-16.jpg" border="0" alt="merkel"><p class="source"><span>REUTERS/Thomas Peter </span></p><p class="caption">Poland's Prime Minister Ewa Kopacz (L) and German Chancellor Angela Merkel address a news conference at the Chancellery in Berlin October 9, 2014. </p></img></div><p></p></div></div>"<a href="http://www.amazon.com/The-Euro-Trap-Bursting-Bubbles/dp/0198702132">The Euro Trap: On Bursting Bubbles, Budgets, and Beliefs</a>" By Hans-Werner Sinn. Oxford University Press; 380 pages.</span></p>
<p>"<a href="http://www.amazon.com/The-13th-Labour-Hercules-Inside-ebook/dp/B00MIBKWXE">The 13th Labour of Hercules: Inside the Greek Crisis</a>" By Yannis Palaiologos. Portobello; 270 pages.</p>
<p>THE euro crisis never seems to end. From an acute phase of worries about public debt and whether the single currency might break up it has moved on to a chronic condition of near-zero growth and fears of deflation.</p>
<p>The signs are that the euro zone is now back in recession, with even the German economy, the central powerhouse, slowing sharply. And that is creating new pressure on Germany's chancellor, Angela Merkel, to borrow and spend more for the sake of Europe.</p>
<p>Yet there is strong resistance to this inside Germany, led by "ordoliberal" economists such as Hans-Werner Sinn of Munich University and the CESifo Group, whose latest book, "The Euro Trap", sets out his rationale. Mr Sinn believes the European Central Bank has become too accommodating and that its plans to buy sovereign debt are illegal (the European Court of Justice has just heard arguments on this). He also reckons the euro-zone bail-outs of the past four years have created moral hazard, allowing feckless Mediterranean countries to get away with minimal reforms and only limited fiscal discipline.</p>
<p>Mr Sinn is particularly obsessed with Target 2 (the first German version of his book was called "The Target Trap") liabilities, which refer to the accounts of national central banks with the ECB. The German Bundesbank is a large creditor of the system, and most Mediterranean central banks are large debtors. The worry is that German taxpayers might end up with a massive bill. Yet Target 2 is essentially an accounting matter that would only become a real issue if the euro were to break up and the ECB be dissolved.</p>
<p>The paradox is that the risk of that happening is increased by German-inspired austerity and a lack of growth. Mr Sinn's solution to the euro's problems is also problematic: he wants some countries to leave the euro and re-enter at a lower rate. As it happens, Mrs Merkel and her advisers have thought hard about a Greek exit (or Grexit), as Mr Sinn notes. But every time they looked at it, they concluded that it would be costlier, including to Germany, than doing what is needed to keep the currency together. That remains true.</p>
<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5437e1456bb3f7cb23d60607-1200-858/rtxz64e.jpg" border="0" alt="Euro flag"><p class="source"><span><a href="http://pictures.reuters.com/">REUTERS/Yannis Behrakis </a></span></p><p class="caption">Presidential guards are framed through a burned EU flag in front of the Tomb of the Unknown Soldier by the parliament in central Syntagma square in Athens May 1, 2013 following a May Day rally. </p></img></div><p></p></div></div></p>
<p>Mr Sinn would not take much comfort from Yannis Palaiologos's searing account of Greece's nightmare of the past five years. Poor tax collection, entrenched corruption and a dysfunctional state may lead one to ask how Greece was let into the euro in the first place. The pain caused by a fall of around 25% in GDP since Greece's first bail-out of May 2010 has been immense.</p>
<p>Yet Greeks still want to stay in the euro. And reforms have now improved competitiveness and even rekindled growth. There may still be political upsets--the author's analysis of the far-right party Golden Dawn is troubling--but at least Greece is on the mend. The current concerns, as Mr Sinn notes, are France and Italy, which are both too big to fail and too big to bail out.</p>
<p>No wonder the euro crisis is not over.</p>
<p>Click <a href="https://subscriptions.economist.com/nwcd">here</a> to subscribe to The Economist</p>
<p><img class="nc_pixel" src="https://pixel.newscred.com/px.gif?key=YXJ0aWNsZT04ZjY2MjY3YTIxMjAxZDA2M2JmOWY4ZGUxOWVmZDljOSZub25jZT1iMjU0NDQwZC02ZThiLTRkYWQtOTcwOS1hYTEyMmQ4MWFhOWQmcHVibGlzaGVyPTczMGViODZhYjU5ZjBkNDE5MjZhYzY1YjAxZjgzZTJm" border="0" alt="" width="1" height="1" /></p>

Why The Euro Crisis Is Far From Over

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/56cc4c59dd0895cf048b458b-1560-1170/rtr3cles.jpg" alt="German Chancellor Angela Merkel reacts after smelling roasted coffee beans at the Internationale Gruene Woche (International Green Week) agriculture and food fair on its opening day in Berlin January 18, 2013. The annual exhibition of food stuffs and agricultural products is one of the world's largest of its kind and runs until January 27 in the German capital." data-mce-source="REUTERS/Tobias Schwarz" data-mce-caption="German Chancellor Angela Merkel." data-link="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0BXZIPZH1PA&amp;SMLS=1&amp;RW=1440&amp;RH=722#/SearchResult&amp;VBID=2C0BXZIPZH1PA&amp;SMLS=1&amp;RW=1440&amp;RH=722&amp;PN=4&amp;POPUPPN=211&amp;POPUPIID=2C0408TFORN0I" /><p class="source"><span><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0BXZIPZH1PA&amp;SMLS=1&amp;RW=1440&amp;RH=722#/SearchResult&amp;VBID=2C0BXZIPZH1PA&amp;SMLS=1&amp;RW=1440&amp;RH=722&amp;PN=4&amp;POPUPPN=211&amp;POPUPIID=2C0408TFORN0I">REUTERS/Tobias Schwarz</a></span></p><p class="caption">German Chancellor Angela Merkel.</p></div><p></p></div></div>Germans are bearish on the economy.</p><p>The <a href="http://www.cesifo-group.de/ifoHome/facts/Survey-Results/Business-Climate/Geschaeftsklima-Archiv/2016/Geschaeftsklima-20160223.html">CESifo released their latest measures of sentiment among German businesses</a> on Tuesday and the results show that while things are good at the moment, people are preparing for a downturn.</p><p>The CESifo surveys 7,000 enterprises across Germany to gauge their assessment of the current economic climate and how they think it will develop. February's assessment of current conditions beat forecasts, coming in at a measurement of 112.9 against a forecast of 112.0.</p><p>But the score for expectations - how the economy will fare in the future - was a big miss to forecasts: just 98.8 against an expected 101.6.</p><p>Business climate - how easy it is to do business at the moment - also disappointed: 105.7 against a forecast of 106.7.</p><p>Hans-Werner Sinn, president of the IFO Institute, says: "The majority of companies were pessimistic about their business outlook for the first time in over six months."</p><p>He <a href="http://www.cesifo-group.de/ifoHome/facts/Survey-Results/Business-Climate/Geschaeftsklima-Archiv/2016/Geschaeftsklima-20160223.html">writes in the release announcing the results</a>:</p><p class="intro" style="padding-left: 30px;">German businesses expressed growing concern, especially in manufacturing.</p><p style="padding-left: 30px;">In manufacturing the business climate index fell sharply. Manufacturers' business expectations declined steeply, marking their largest downswing since November 2008. Assessments of the current business situation, by contrast, improved somewhat. This pattern of declining expectations and an improving current business situation emerged in several branches of manufacturing. With production levels falling at the end of last year, manufacturers fear that the downturn will continue.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/jeff-sachs-technology-threat-humanity-2016-2">JEFF SACHS: This is the biggest threat to the human race</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="NudmcxdTqsaXIuFZ0ILKnMz6ymYK9my_" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'NudmcxdTqsaXIuFZ0ILKnMz6ymYK9my_',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Germans think their economy is going downhill

<p>Last week the <keyword id="60971" type="CITY" weightage="60" keywordseo="ECB">ECB</keyword> unexpectedly decided to cut interest rates.</p>
<p>This week, the ECB hinted that it could engage in Quantitative Easing at some point in the future.</p>
<p>This of course has the Germans spitting mad.</p>
<p><a href="http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100026052/ecb-ready-to-print-germany-ready-to-scream/">The Telegraph's Ambrose Evans-Pritchard</a> wrote about it this week:</p>
<p style="padding-left: 30px;">Today we have <a href="http://www.ft.com/cms/s/0/7506df56-4c54-11e3-923d-00144feabdc0.html#axzz2kcnwXtT3">an FT oped piece</a>by IFO grizzly bear Hans Werner Sinn castigating the ECB for cutting rates at all last week.</p>
<p style="padding-left: 30px;">We have Bild Zeitung firing off tabloid anathemas over the destruction of German savings by an Italian-controlled ECB.</p>
<p style="padding-left: 30px;">We had the Bundesbank's Andreas Dombret saying this morning that the ECB's near zero rates are posing "risks for financial stability" in <keyword id="87" type="COUNTRY" weightage="60" keywordseo="Germany">Germany</keyword>.</p>
<p>Meanwhile, here's the latest cover of a German business magazine Wirtschafts Woche. It pretty much speaks for itself.</p>
<p><div class="KonaFilter image-container"><div class="image on-image"><img src="http://static6.businessinsider.com/image/5288c18b69bedd2e4684c85a-462-617/bzrw1macqaagex2.png?maxX=686&amp;maxY=916" border="0" alt="BZRW1MaCQAAgeX2" width="686" height="916" /><p class="source"><a href="http://www.twitter.com/Schuldensuehner">@Schuldensuehner</a></p></div><p></p></div></p>

This Magazine Cover Shows Just How Pissed The Germans Are With Mario Draghi

<p><div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image"><a title_source="REUTERS/Kai Pfaffenbach" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/542d625c6bb3f735047c71e6-960/ecb-frankfurt-graffiti-32-2.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/542d625c6bb3f735047c71e6-1200-924/ecb-frankfurt-graffiti-32-2.jpg" border="0" alt="ECB Frankfurt Graffiti 32" /></a><p class="source"><span>REUTERS/Kai Pfaffenbach</span></p></div><p></p></div></div>The European Central Bank's plan to reinvigorate the flagging eurozone economy just got a big boost - though you might easily have missed it.</p>
<p>Hidden away in an Annex to the press release sent after Mario Draghi's press conference today, in which the ECB president was very light on the details of the new asset purchase program, is a key passage that will give people hope that his latest plan - which hopes to get money moving to Europe's struggling small companies - might actually have some impact.</p>
<p>Here is <a href="http://www.ecb.europa.eu/press/pr/date/2014/html/pr141002_1_Annex_1.pdf?c4144e9908c29df066a053246f81d1ff">the innocuous looking bullet-point</a> that might just make all the difference:</p>
<p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="ECB" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/542d5acaecad04674b9a74f6-960/screen shot 2014-10-02 at 15.00.16.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/542d5acaecad04674b9a74f6-995-138/screen shot 2014-10-02 at 15.00.16.png" border="0" alt="ECB ABS program" /></a><p class="source"><span><a href="http://www.ecb.europa.eu/press/pr/date/2014/html/pr141002_1_Annex_1.pdf?c4144e9908c29df066a053246f81d1ff">ECB</a></span></p></div><p></p></div></div>That sounds like vague banker-speak gobbledygook, but it's crucial: "Retained securities" are the assets held by banks in <span>exchange for the ECB's cheap loans. Without those assets the total value of remaining eurozone small and medium-sized enterprises' asset-backed securities would be <em>too small</em> for the ECB to make a meaningful difference to the region's economic prospects.</span></p>
<p><span>Here is a chart from <span>Gareth Davies, m<span>anaging director of i</span>nternational ABS and covered bond research, showing that without those "retained securities" the other available assets are just too small to make a meaningful difference to credit-starved companies.<br /></span></span></p>
<p><span><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="J.P. Morgan/Gareth Davies" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/542d5cddeab8ea4c07c5ed79-960/screen shot 2014-10-02 at 13.02.20.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/542d5cddeab8ea4c07c5ed79-705-433/screen shot 2014-10-02 at 13.02.20.png" border="0" alt="ECB ABS" /></a><p class="source"><span><a href="https://www.jpmorgan.com/pages/jpmorgan">J.P. Morgan/Gareth Davies</a></span></p></div><p></p></div></div>Davies said in an email to Business Insider:</span></p>
<p style="padding-left: 30px;"><span><span>I still think supply constraints exist in terms of the current outstanding stock (secondary) and flow (primary market) sizes. The way the ECB can however get access to size in the ABS space is through the purchase of previously structured and retained deals currently used as collateral at the ECB's short-term MROs (along with covered bond purchases).</span></span></p>
<p><span></span><span style="line-height: 1.5em;">There is currently around €726 billion of retained ABS </span><span style="line-height: 1.5em;">, of </span><span style="line-height: 1.5em;">which €699 billion is consumer ABS, RMBS and SME ABS. Frederik Ducrozet, senior economist at Crédit Agricole, <a href="https://catalystresearch.ca-cib.com/web/guest/reportreader?uuid=e4ea7e1f-7ca8-4389-bcae-c434a68f9a19&amp;groupId=10138&amp;articleId=963414&amp;email=frederik.ducrozet%40ca-cib.com">says in a note</a> that of this some €300 billion is eurozone collateral that would fall under the ECB's scope - a substantially larger market than would have been available if retained securities had not been included.</span></p>
<p><span style="line-height: 1.5em;"> This will raise hopes that Draghi's plan might actually work.</span></p>
<p><span><span>Even more interestingly, Draghi suggested that the ECB Governing Council were unanimous in their support for using further extraordinary measures if the situation were to deteriorate further. This, coupled with the inclusion of retained securities in the asset purchase program, strongly suggests that he has been successful in extracting concessions from those who were resisting further central bank action - with Germany's Bundesbank chief among them.</span></span></p>
<p><span><span>Earlier this week Hans-Werner Sinn, German economist and president of the influential Ifo Institute for Economic Research, <a href="http://www.ft.com/cms/s/0/09b1d31c-47c8-11e4-ac9f-00144feab7de.html#axzz3EsmxuX2W">argued in the Financial Times</a> argued that:</span></span></p>
<p style="padding-left: 30px;"><span><span><span>[The ABS program] is nothing less than a fiscal bailout - something the ECB has no right to undertake, as the German constitutional court implied when it declared OMT unlawful.</span></span></span></p>
<p><span><span><span>Although we don't yet have anything close to the full details of the ECB's plan, what we know strongly suggests that voices like Sinn's have been effectively silenced - at least for the moment.</span></span></span></p>

Here's The Hidden Footnote That Shows Germany Caved In Its Opposition To Europe's €1 Trillion Rescue Plan

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/56a60ec1c08a80880e8bc069-5781-4336/rtx23sde.jpg" alt="Snowstorm blizzard" data-mce-source="Reuters/Rickey Rogers" data-mce-caption="A resident shovels snow away from the entrance to his home in Union City, New Jersey, across the Hudson River from Midtown Manhattan, after the second-biggest winter storm in New York history." data-link="http://pictures.reuters.com/Package/2C0BF1F2AD8V3#/SearchResult&amp;ALID=2C0BF1F2AD8V3&amp;VBID=2C0BX4SWXJ_5&amp;POPUPPN=12&amp;POPUPIID=2C0BF1F2ONBAO" /><p class="source"><span><a href="http://pictures.reuters.com/Package/2C0BF1F2AD8V3#/SearchResult&amp;ALID=2C0BF1F2AD8V3&amp;VBID=2C0BX4SWXJ_5&amp;POPUPPN=12&amp;POPUPIID=2C0BF1F2ONBAO">Reuters/Rickey Rogers</a></span></p><p class="caption">A resident trying to clear the entrance to his home in Union City, New Jersey, across the Hudson River from Midtown Manhattan, after the second-biggest winter storm on record in New York.</p></div><p></p></div></div>Here's what you need to know before markets open this week.</p><p><strong><a href="http://www.businessinsider.com/twitter-execs-katie-jacobs-stanton-and-kevin-weil-leaving-company-2016-1">There's been a major shakeup at Twitter</a>.</strong> Re/code's Kurt Wagner and Kara Swisher and The New York Times' Mike Isaac reported that four top executives were leaving Twitter. P<span>roduct head Kevin Weil, media head Katie Jacobs Stanton, senior vice president of engineering Alex Roetter, and Vine head Jason Toff are on the way out. In addition, a person close to the situation told Business Insider, the company will appoint two new board members, one of whom will be a prominent name in the media industry.</span></p><p><strong><a href="http://www.businessinsider.com/james-gorman-2016-compensation-2016-1">Morgan Stanley's CEO took a big pay cut</a>. </strong>James Gorman, CEO of Morgan Stanley, saw a 6.7% drop in compensation compared with last year. For his efforts in 2015, Gorman received $21 million, including a $1.5 million base salary and $4.6 million in stock unit awards. Goldman Sachs CEO Lloyd Blankfein received total compensation of $23 million for 2015, while JPMorgan Chase CEO Jamie Dimon took home $27 million.</p><p><strong><a href="http://www.businessinsider.com/r-alibaba-revenue-growth-seen-slowest-on-record-to-intensify-fight-with-jdcom-2016-1">Alibaba is projected to have its slowest growth on record</a>. </strong>Jack Ma's Chinese e-commerce company Alibaba is projected to have revenue growth of 26.6%, according to a Thomson Reuters estimate. That would mark the slowest growth since the company began publishing the data 3 1/2 years ago. The slowdown in revenue growth comes amid increased competition from its rival JD.com, which is said to have higher-quality products that cater to the affluent customer.</p><p><strong><a href="http://www.businessinsider.com/r-mcdonalds-to-open-more-than-60-restaurants-in-russia-in-2016-2016-1">McDonald's is expanding in Russia</a>. </strong>The golden arches are about to have a bigger presence in Russia. According to Reuters, McDonald's says it will open more than 60 restaurants in Russia in 2016. "<span>The eating-out industry has been stagnating since the beginning of 2015 but we have seen significant growth of our market share as we continued expansion," Khamzat Khasbulatov, CEO of McDonald's Russia, said at a news conference. McDonald's attributes its success in Russia to its focus on local suppliers and affordable menus.</span></p><p><strong><a href="http://www.businessinsider.com/japan-economy-is-sliding-2016-1">Japan's annual trade deficit swung to a surplus</a>.</strong> Japan's trade deficit narrowed for a fifth straight year in 2015, falling to <span>2.8 trillion yen ($23.6 billion). Exports fell 8% year-over-year as shipments to China, Japan's largest trading partner, sank 8.6% YoY. Imports were down 18% from a year earlier thanks largely to the crash in oil prices. The Japanese yen is up 0.3% at 118.38 per dollar. </span></p><p><strong><a href="https://www.cesifo-group.de/ifoHome/facts/Survey-Results/Business-Climate/Geschaeftsklima-Archiv/2016/Geschaeftsklima-20160125.html">German Business sentiment slowed</a>. </strong>Ifo Business Climate fell to 107.3 in January from 108.6 in December, while business expectations "clouded over significantly." According to Hans-Werner Sinn, president of the Ifo Institute, "The year started with an unpleasant surprise for the German economy." The euro is stronger by 0.2% at 1.0822.<span></span></p><p><strong><a href="http://www.ft.com/fastft/2016/01/25/russian-gdp-contracted-3-7-in-2015/">Russia's GDP saw a big drop</a>. </strong>The Russian economy contracted 3.7% in 2015, making for the biggest drop in six years, according to FT. The weakness in Russia comes as a result of the sharp drop in oil prices and the economic sanctions imposed by the West. The Russian ruble is weaker by 2.4% at 79.9850, and just off its all-time low versus the US dollar.</p><p><strong>Stock markets around the globe are mixed. </strong>Australia's ASX (+1.8%) paced the overnight gains, and Spain's IBEX (-0.8%) leads the losses in Europe. S&amp;P 500 futures are lower by 5.50 points at 1,894.00.</p><p><strong>Earnings season picks up. </strong>DR Horton, Halliburton, and McDonald's will release their quarterly results before markets open.</p><p><strong>US economic data is absent. </strong>Economic data for the week begins to flow Tuesday with the Case-Shiller 20-city Index, the FHFA Housing Price Index, and consumer confidence. The US 10-year yield is down 3 basis points at 2.03%.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/a-pyramid-on-ceres-baffles-nasa-2016-1">NASA scientists are baffled by a mysterious pyramid structure they found in space</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="t4ODYxMDE6W2094u9FSKZagVraSWGpAe" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 't4ODYxMDE6W2094u9FSKZagVraSWGpAe',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

10 things you need to know before the opening bell

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5603da926bb3f709488028ea-1200-924/child-riding-tricycle.jpg" border="0" alt="child riding tricycle"><p class="source"><span><a href="https://pictures.reuters.com/Package/2C0BF1OJW1PUX#/SearchResult&amp;ALID=2C0BF1OJW1PUX&amp;VBID=2C0BX47SCDRJ&amp;POPUPPN=13&amp;POPUPIID=2C0BF1OJ6B0QN">Reuters/Ammar Awad</a></span></p><p class="caption">A youth rides his tricycle on an empty street during the Jewish holiday of Yom Kippur.</p></img></div><p></p></div></div>Here is what you need to know.</p><p><strong>Janey Yellen speaks today. </strong>Attention will be on Federal Reserve Chair Janet Yellen when she <a href="http://www.federalreserve.gov/whatsnext.htm">speaks at the University of Massachusetts</a> at 5 p.m. ET. Traders will be watching Yellen's speech, titled "Inflation Dynamics and Monetary Policy" for clues as to whether or not Fed liftoff will occur at some point in 2015.</p><p><strong>Xi goes to Washington. </strong>According to AFP, <a href="http://www.businessinsider.com/afp-chinas-xi-heads-to-washington-for-likely-tough-talks-with-obama-2015-9?IR=T">Chinese President Xi Jinping will meet with President Obama</a> over a private dinner at the White House on Thursday. On Friday, the two heads will then hold formal discussions on topics ranging from cybersecurity to China's aggression in the South China Sea before enjoying a state dinner in the evening.</p><p><strong>Shinzo Abe announced 3 new 'arrows' to bolster the Japanese economy. </strong>Japanese Prime Minister <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=newssearch&amp;cd=4&amp;cad=rja&amp;uact=8&amp;ved=0CCkQqQIoADADahUKEwjPruWBwI_IAhUKaz4KHUujAXw&amp;url=http%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2015-09-24%2Fabe-unveils-target-to-boost-japan-s-economy-to-600-trillion-yen&amp;usg=AFQjCNHNPyZdpqMqGqfAvSTWEFuNxtDs6Q&amp;bvm=bv.103388427,d.cWw">Shinzo Abe has added 3 new 'arrows' to his quiver</a>. Abe's new policies include a strong economy (A GDP target of 600 trillion yen, or $5 trillion), increased support for families and social security, Bloomberg reports. The Japanese yen is stronger by 0.6% at 119.62 per dollar.</p><p><strong>Norway's central bank surprised with a rate cute. </strong>The <a href="http://www.norges-bank.no/en/Published/Press-releases/2015/Press-release-24-September-2015/">Norges Bank unexpectedly cut its key rate 25 basis points to a record low 0.75%</a>. The rate cut was the third in the past 10 months and was done in response to a weaker growth and inflation outlook. "The current outlook for the Norwegian economy suggests that the key policy rate may be reduced further in the coming year," Governor Oystein Olsen said in the statement. The Norwegian krone is weaker by 2.1% at 8.4454 per dollar.</p><p><strong>Taiwan's central bank lowered its key rate. </strong>The <a href="http://www.reuters.com/article/2015/09/24/taiwan-economy-rates-idUST8N0XD02220150924">Central Bank of the Republic of China (Taiwan) lowered its benchmark interest rate 12.5 basis points to 1.75%</a>. According to Reuters, the rate cut was the first in six years and comes as the central bank attempts to support economic growth. Ahead of the decision, the Taiwan dollar ended down 0.3% at 33.129 per dollar, its weakest since 2009.</p><p><strong>German businesses are more confident. </strong>The latest reading of German business confidence showed a small improvement in September, edging up to 108.5 from August's reading of 108.4. While businesses were generally a bit more downbeat about their current situation, they expressed more confidence about the future. <a href="https://www.cesifo-group.de/ifoHome/facts/Survey-Results/Business-Climate/Geschaeftsklima-Archiv/2015/Geschaeftsklima-20150924.html">The report</a>, which was written by Hans-Werner Sinn, President of the Ifo Institute, suggested, "The German economy is proving robust." The euro is stronger by 0.4% at 1.1231 per dollar.</p><p><strong>GE is unloading more assets.</strong> People close to the matter told Bloomberg, <a href="http://www.bloomberg.com/news/articles/2015-09-23/ge-capital-said-to-agree-to-sell-private-equity-unit-to-ardian">General Electric has agreed to sell its private-equity investment group</a> to France-based asset manager Ardian for about $500 million. The deal is the latest in a series of moves by GE to slim down and focus on manufacturing. GE has sold more than $35 billion worth of assets so far this year.</p><p><strong>Stock markets around the globe are mostly lower.</strong> Japan's Nikkei (-2.8%) tumbled as traders returned to work following the extended holiday. In Europe, Germany's DAX (-2.0%) leads markets lower in Europe. S&amp;P 500 futures are down 14.00 points at 1914.50.</p><p><strong>US economic data picks up. </strong>Initial and continuing claims and durable orders are set to cross the wires at 8:30 a.m. ET and new home sales will be announced at 10 a.m. ET. Natural gas inventories will be released at 10:30 a.m. ET. The US Treasury will auction $29 billion 7-year notes at 1 p.m. ET. <span>The US 10-year yield is lower by 3 basis points at 2.12%.</span></p><p><strong>Earnings reports flow. </strong>Accenture and KB Homes are the notable reports ahead of the opening bell. Bed Bath &amp; Beyond, Cintas, Jabil Circuit and Nike are scheduled to release their quarterly reports after markets close.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/james-bullard-fed-zero-interest-rates-forever-japan-growth-2015-9">Fed's Bullard explains the problem with keeping rates at zero forever</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="Jsd3BudzqeUDdG3whgFzc5nMNTdl2hGm" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'Jsd3BudzqeUDdG3whgFzc5nMNTdl2hGm',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/558a8f86ecad04c20857802d-1200-924/kids-playing-a-form-of-pool-3.jpg" border="0" alt="kids playing a form of pool "><p class="source"><span><a href="http://pictures.reuters.com/Package/2C0BF1O1PQ0_R?PBC=2CKRYD1D85D:2C04082VM4GXA:2C0BF1O1PQ0_R#/SearchResult&amp;ALID=2C0BF1O1PQ0_R&amp;PBC=2CKRYD1D85D:2C04082VM4GXA:2C0BF1O1PQ0_R&amp;VBID=2C04WRB2IK4&amp;POPUPPN=1&amp;POPUPIID=2C0BF1O1NXW0Y">Reuters/Erik De Castro</a></span></p><p class="caption">Youths play a form of pool on a carom board in Las Pinas city, Metro Manila, Philippines.</p></img></div><p></p></div></div>Here is what you need to know.</p><p><strong>Greece's creditors rejected its latest attempt at reform. </strong>There is beginning to be a sense of urgency as a deal must come to fruition quickly. Peter Spiegel of the Financial Times wrote, "Without a deal by tonight, which would then be endorsed at an EU summit on Thursday, eurozone officials worry there will not be enough time for national parliaments to approve an extension of Greece's current programme before it expires on Tuesday." <a href="http://www.businessinsider.com/report-greek-prime-minister-alexis-tsipras-says-the-troika-didnt-accept-his-proposals-2015-6">The debt-ridden country needs to unfreeze 7.2 billion euros ($8.2 billion) in aid</a> in order to meet its June 30 debt obligation to the International Monetary Fund and its July 20 payment to the European Central Bank. While the latest list of reforms was rejected, talks have not broken down. Greece's 2-year yield is higher by 63 basis points at 21.15%.</p><p><strong>Confidence among German businesses fell. </strong>Germany's Ifo Business Climate survey fell to 107.4 in June from 108.5 in May. Wednesday's reading missed the 108.1 that economists were expecting and was <a href="http://www.businessinsider.com/afp-germanys-ifo-confidence-index-at-four-month-low-2015-6">the lowest print in four months</a>. "The outlook for the German economy is overcast," Ifo president Hans-Werner Sinn announced. The euro is up 0.3% at 1.1196.</p><p><strong>Netflix announced a 7-for-1 stock split. </strong><span>The company's board of directors approved the long-anticipated stock split, which will be payable on July 2. </span><a href="http://www.businessinsider.com/netflix-stock-split-2015-6">Netflix shareholders will receive seven shares of stock for every share they own</a><span>, and the price of each share will be divided by seven. Shareholders will maintain their same percentage stake in the company.</span></p><p><strong>Sysco's takeover of US Foods has been blocked. </strong>A federal judge has <a href="http://www.wsj.com/articles/federal-judge-issues-injunction-blocking-sysco-us-foods-merger-1435093324">blocked Sysco's planned takeover of US Foods</a> due to antitrust concerns. According to the Wall Street Journal, US District Judge Amit Mehta opined,"The FTC has shown that there is a reasonable probability that the proposed merger will substantially impair competition in the national customer and local broadline markets and that the equities weigh in favor of injunctive relief." The companies argue a merger would improve efficiency and reduce costs.</p><p><strong>There is a new CEO at Boeing. </strong><a href="http://www.businessinsider.com/boeing-has-a-new-ceo-who-once-intern-for-the-company-2015-6">Dennis A. Muilenburg has been named CEO</a>, replacing James McNerney who will remain chairman of the board. Muilenburg started his career at Boeing as an intern, spending the last 30 years at the company. Most recently, Muilenburg served as president, COO, and vice chairman. "As CEO, Dennis will bring a rich combination of management skills, customer focus, business and engineering acumen, a can-do spirit and the will to win," McNerney said in a statement.</p><p><strong>Lennar beat on earnings and revenue. </strong>The homebuilder announced <a href="http://www.prnewswire.com/news-releases/lennar-reports-second-quarter-eps-of-079-300103809.html">earnings of $0.79 per share</a>, easily topping the $0.64 that was expected. Revenue surged 31.6% versus last year to $2.39 billion, surpassing the Wall Street estimate of $2.03 billion. Lennar announced home deliveries jumped 21% to 6,015 while new orders rose 18% to 7,271 homes. The company has a backlog of 8,073 homes, up 18%.</p><p><strong>The final street camps for Hong Kong's 'Umbrella Revolution' have been cleared. </strong>The closings of the final camps marks <a href="http://www.businessinsider.com/r-hong-kongs-pro-democracy-street-camps-come-to-a-quiet-end-2015-6#ixzz3dxIjhYyO">the end of nine-months of pro-democracy protests</a>. The protests centered around Hong Kongers wanting to elect their leader, but not from a list of pre-screened candidates picked by Beijing. "The next step for us is to really move into the districts to try to re-awaken the moderate democrats ... and to never stop fighting for democracy," protester Benny Mok told Reuters.</p><p><strong>Japan's Nikkei hit an 18-year high. </strong>Today's gain of 0.3% lifted the Nikkei to its <a href="http://www.businessinsider.com/the-nikkei-just-smashed-to-an-18-year-high-2015-6?r=UK">best level since before the 1997 Asian financial crisis</a>. Japanese stocks are up nearly 100% since Shinzo Abe was elected prime minister in December 2012. The Nikkei is barely halfway to its 38,957.44 peak set in 1989.</p><p><strong>Global stock markets are mixed. </strong>Spain's IBEX (-1.1%) leads markets lower in Europe after China's Shanghai Composite (+2.5%) paced the gains in Asia. S&amp;P 500 futures are down 5.25 points at 2111.25.</p><p><strong>US economic data is light. </strong>GDP-Third Estimate is due out at 8:30 a.m. ET and crude oil inventories will cross the wires at 10:30 a.m. ET. Treasury will auction $35 billion 5-year notes at 1 p.m. ET. The US 10-year yield is lower by 2 basis points at 2.39%.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/new-air-force-one-tour-boeing-private-jet-2015-5">Take a tour of the $367 million jet that will soon be called Air Force One</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="4zNWQ2dTq0SJxfj9SagVkmMxd7YoUovg" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', '4zNWQ2dTq0SJxfj9SagVkmMxd7YoUovg',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

You Searched For "Hans Werner Sinn" and got 8 results

George Soros Posts 818-Word Takedown Of Rival In The Comments Section Of A Blog Post

Matthew Boesler

Why The Euro Crisis Is Far From Over

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Germans think their economy is going downhill

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This Magazine Cover Shows Just How Pissed The Germans Are With Mario Draghi

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10 things you need to know before the opening bell

Jonathan Garber

10 things you need to know before the opening bell

Jonathan Garber

10 things you need to know before the opening bell

Jonathan Garber