Europe

Yesterday we reported that the ECB has begun contemplating the death of the €500 EURO note, a fate which is now virtually assured for the one banknote which not only makes up 30% of the total European paper currency in circulation by value, but provides the best alternative to Europe's tax on money known as NIRP.

That also explains why Mario Draghi is so intent on eradicating it first, then the €200 bill, then the €100 bill, and so on.

The German Chancellor Angela Merkel has backed a controversial call by Turkey to impose a no-fly zone over northern Syria. She said it would help alleviate the refugee crisis: “In the current situation it would be helpful, if there could be such an area, where none of the parties are allowed to launch aerial attacks, that is to say, a kind of no-fly zone“ Turkish President Erdogan threatened Europe with a new migrant wave renewing calls for no-fly zone in Syria just days ago.

• Oil eases off highs after output freeze agreement (Reuters)
• Saudis and Russia agree to oil output freeze, Iran still an obstacle (Reuters)
• China Loses Control of the Economic Story Line (WSJ)
• Obama starts work to pick Supreme Court justice amid political 'bluster' (Reuters)
• The Never-Ending Story: Europe’s Banks Face a Frightening Future (BBG)
• Apollo Global to buy security services company ADT for $7 billion (Reuters)
• Anglo Hastens Retreat From Coal, Iron Ore as Losses Double (BBG)
• Markets Putting Faith in QE4 (WSJ)

One day after markets saw a violent return of optimism, which sent stocks around the globe and US equity futures soaring (the US was closed for President's Day) driven by terrible Japanese and Chinese economic data which in turn hinted at more central bank easing, animal spirits have cooled off despite some truly unprecedented Chinese credit numbers.