Morning MoneyBeat Europe: Pessimists Remain Despite ECB's Largesse

        By Alen Mattich
        Please feel free to send this email to friends and colleagues and include this link so they can sign up to receive it for free too http://on.wsj.com/MoneyBeatEuropeSignup
        Follow us on Twitter @WSJMoneyBeat.
        Good Morning Europe
        The European Central Bank has now committed to its asset purchase program--buying mostly sovereign debt in EUR60 billion monthly installments until September 2016--thus ensuring a trickle of good news for the eurozone economy, and worriers are switching to what could go wrong. Greece is a perennial, especially as a cash crunch looms and the government continues to resist meeting its rescuers' demands.
        Ironically, another point of concern could be Germany. Unemployment and trade numbers due Tuesday and the purchasing managers' report Wednesday should confirm the economy is belting along. Joblessness is at multi-decade lows, Germany is running a massive trade surplus and the outlook is optimistic. So what's the worry?
        Well, the Bundesbank is becoming uncomfortable about some of the country's runaway asset markets, especially urban property prices. Germany's central bankers won't have forgotten about the sources of Spain's and Ireland's current economic woes and don't want to repeat the disastrous bubble domestically.
        But with inflation still at rock bottom levels--Germany's CPI reading is out on Monday--the ECB will shrug off the Bundesbank's concerns. It sets policy for the whole single currency region. And if Germans are worried about domestic imbalances, they can use fiscal policy to keep them in check.
        More generally, the long Easter weekend is likely to keep conditions fairly quiet as many of the region's market participants decamp for late skiing or early beach holidays.
        Market Snapshot: U.S. markets (Friday close) DJIA up 0.1p%, Nasdaq up 0.57%, S&P 500 up 0.24%. Nikkei (Monday close) up 0.7%. Brent crude down 61 cents at $55.80. Gold down $6.40 at $1194.30. EUR/USD at $1.0875, USD/JPY at Yen119.23. 10 year Treasury yield 1.95%, Bund 0.17%, Gilt 1.57%.
        Watch For: U.K. net consumer credit, eurozone consumer confidence and German CPI.
        What You May Have Missed on MoneyBeat:
        Cooling U.K. Property Could Shape BOE Policy: Are British property prices at long last reaching a valuation ceiling? If so, this could be a significant factor in how the Bank of England steers monetary policy.
        Why Dealmaking Looks a Lot Like a Sedan-Filled Highway: The 2014 market for mergers and acquisitions was, in motoring terms, the equivalent of a traffic-free highway interrupted by the odd Ferrari or McLaren. The early stages of 2015 in contrast have seen the roads filling out with five-door family sedans and mid-range saloons.
        BOE's Broadbent: Deflation Unlikely in U.K.: A senior Bank of England official said Friday the chances of a damaging bout of falling prices in the U.K. are slim.
        Wall Street Vs. Silicon Valley: The Ruth Porat Compensation Edition: Ruth Porat is getting quite a pay bump by moving to Silicon Valley. Ms. Porat, Google Inc.'s incoming chief financial officer, was awarded more than $70 million worth of restricted stock and bonuses to make the switch from Morgan Stanley, where she's held the role of CFO for the past five years.
        From The Wall Street Journal:
        Obama Ramps Up Lobbying on Iran: As negotiations with Iran on a nuclear deal come down to the wire, the White House is ramping up a yearlong campaign to persuade lawmakers and the public to support an agreement.
        French Leader Dealt Setback in Local Vote : Socialist President François Hollande suffered a setback at the polls on Sunday as his predecessor and political nemesis Nicolas Sarkozy led a center-right alliance to take a sweeping majority in local elections.
        Greek Bailout Plan Said to Lack Detail: Greek proposals for a revised bailout program don't have enough detail to satisfy the government's international creditors, eurozone officials said, making it more likely that Athens will need to go several more weeks without a new infusion of desperately-needed cash.
        Lufthansa Likely to Face Unlimited Liability: The unusual circumstances surrounding the Germanwings crash won't necessarily free the airline and its insurers from claims of negligence, aviation lawyers said.
        China Lays Out Vision for Asia's Future : President Xi Jinping sketched out China's vision for a new security and economic order in Asia, offering to spread the benefits of Chinese prosperity and cooperation.
        Yuan Loses Its Shine Abroad: China suffered a second setback in as many weeks in its drive to boost the use of its currency abroad, even as the country steps up efforts to open up its capital account.
        U.S. Coding Website GitHub Hit With Cyberattack : A popular U.S. coding website is enduring an onslaught of Internet traffic meant for China's most popular search engine, in an episode that security experts say represents a likely attempt by China to shut down anticensorship tools.
        Bettors on Dollar Look to IMF : A roaring dollar rally could get a boost this coming week with the release of data that many investors expect to provide fresh evidence that central banks are embracing the greenback.
        Tax Proposals Would Move U.S. Closer to Global Norm : U.S. lawmakers on both sides of the aisle increasingly are finding appeal in an ambitious concept for overhauling the income-tax system: a tax based on consumption, a tool long used around the world.
        Hudson News Owner to Buy World Duty Free : Swiss airport retailer Dufry said it has agreed to buy Italy's World Duty Free in a deal that values the latter at about $3.9 billion, including debt.
        (END) Dow Jones Newswires

        March 30, 2015 02:30 ET (06:30 GMT)

#FX
#Forex
#MoneyBeatEurope
#ECB_Worries
#ECB_Cut