“There were times when my plans went wrong and my stocks did not run true to form, but did the opposite of what they should have done if they had kept regard for precedent.” — Jesse Livermore

1. Pope Benedict XVI resigns — Pope Benedict XVI has become the first Roman Pontiff since Pope Gregory XII in 1415 to resign, saying he will leave office on February 28 due to his failing health.
2. Eurozone recession deepened at end of 2012 — the economy of the 17 nations in the euro shrank by 0.6% in the fourth quarter, which was worse than forecast. It is the sharpest contraction since the beginning of 2009 and marks the first time the region failed to grow in any quarter during a calendar year.
It followed news that the economies of Germany, France and Italy had all shrunk by more than expected.
3. Fracking in New York could be held up for months — New York state’s decision to lift its ban on fracking faces further delays after officials conducting a key health impact study asked for more time. The move will push back the publication of the state’s environmental report, which in turn will delay the drafting of Governor Andrew Cuomo’s drilling regulations, possibly forcing a re-start of the regulatory process.
4. Bank of Japan keeps policy unchanged as recession continues — the Bank of Japan has maintained the size of its asset purchase program at ¥101T ($1T) and its benchmark interest rate at 0%-0.1%. The BOJ’s decision followed news that Japan’s economy had contracted for a third quarter in Q4 as GDP shrank 0.1% Q/Q vs consensus of +0.1%, with declining exports and a drop in business investment offsetting improved consumption.
5. G-20 Meeting Interests Converged on Infrastructure — The G-20 meeting brings into focus poorer countries’ difficulties in paying for the construction of roads and bridges and other basic infrastructure essential for development. Currency movements was discussed but Japan was not singled out.
6. Momentum for Internet sales tax strengthens –Legislators introduced the Marketplace Fairness Act in the Senate, which would enable states to collect sales taxes for online transactions carried out in their jurisdictions.

The week ahead — Economic data from Econoday.com: