Today's Headlines

Bloomberg:

• Emerging Markets at Risk From Carry Trade Unwinding, BofA Says. Emerging-market assets are at risk as the tapering of the Federal Reserve’s stimulus program will probably trigger a reversal of $2 trillion in carry trades, according to strategists at Bank of America Merrill Lynch. Carry trades, where investors borrow in a country with low interest rates to fund purchases of higher-yielding assets elsewhere, helped developing nations raise foreign-exchange reserves by $2.7 trillion since the end of the third quarter of 2008, Hong Kong-based Ajay Singh Kapur and Ritesh Samadhiya at BofA wrote in a research report today. The capital inflows spurred economic growth and inflated prices, particularly those of bonds and property, they said. 

• PBOC Drains Funds Using Repos for First Time in 8 Months. China’s central bank sold repurchase contracts for the first time since June, draining funds from the banking system as money-market rates sink to the lowest levels in at least three months. The People’s Bank of China conducted 48 billion yuan ($7.9 billion) of 14-day repurchase contracts at 3.8 percent today, according to a statement posted on its website. The monetary authority last issued such contracts on June 6, when it sold 10 billion yuan of 28-day repos. Today’s rate is higher than both the 2.75 percent in the June auction and the 2.05 percent when the PBOC last issued 14-day repos in January 2011.

• European Stocks Are Little Changed as ZEW Index Weakens. European stocks were little changed, after two days of gains, as a measure of German investor confidence fell more than forecast and the Federal Reserve Bank of New York’s general economic index missed estimates. Inditex SA lost 4 percent as Citigroup Inc. lowered its rating on the retailer. Centrica (CNA) Plc slid 1.3 percent after UBS AG recommended selling shares in the largest energy supplier to U.K. households. Casino (CO) Guichard-Perrachon SA rallied 3.2 percent after posting an 18 percent jump in 2013 earnings. The Stoxx Europe 600 Index added less than 0.1 percent to 334.6 at the close of trading.

• Natural Gas Jumps to 2-Week High as Winter Storm Hits. Natural gas futures jumped to a two-week high in New York as storms and cold weather boosted heating demand, cutting stockpiles to the lowest in 10 years. Gas climbed as much as 6.6 percent as the second storm in three days brought snow to the Northeast.

• Actavis(ACT) to Buy Forest Laboratories(FRX) for $25 Billion.

• AT&T(T) Says U.S. Requested Surveillance on 35,000 User Accounts. AT&T Inc. (T), the largest U.S. phone company, said the American government sought access to the content of more than 35,000 user accounts in the first six months of 2013 under the Foreign Intelligence Surveillance Act.

Wall Street Journal: 

• Deadly Clashes Flare Anew in Ukraine. Government Says It May Take 'Tough Action' If Disorder Continues in Kiev. Three weeks of uneasy truce between the Ukrainian government and Western-oriented protesters ended Tuesday with an outburst of violence in which at least three people were killed, prompting a warning from authorities of a crackdown to restore order. Protesters outside the Ukrainian parliament hurled broken bricks and Molotov cocktails at police, who responded with stun grenades and rubber bullets. There were unconfirmed reports of shootings, and small arms were visible among some protesters.

MarketWatch:

• Gingrich says Kerry is ‘delusional’ and should resign because of climate change comments.

CNBC: 

• Hedge fund investors: We're happy, really! (video)

• Foreigners pare back on some US securities; still like Treasurys.

• Watch Cashin: 'Perfect excuse' until 'aha' moment. (video) Art Cashin said bad winter weather is serving as a "perfect excuse" for weak economic data, but the stock market may not accept that excuse indefinitely.

ZeroHedge:

• Wave Goodbye To Europe's Sterilized Monetization: Welcome "Unsterilization".\

• Empire Manufacturing Misses; Plunges Most In 18 Months. (graph)

• Homebuilder Confidence Crashes By Most On Record. (graph)

• Second JPMorgan Banker Jumps To His Death: Said To Be 33 Year Old Hong Kong FX Trader.

• Bank Runs Spread To Thailand.

• Ukraine's Military Releases The Armored Vehicles And Fighter Jets.

• Venezuelan Authorities Detain Anti-Government Protest Leader - Live Feed.

• Student Loans Hit Record $1.08 Trillion; Delinquent Student Debt Rises To All Time High. (graph)

Business Insider:

• Here Are The Asset Classes That Hedge Funds Love And Hate [CHART].

• Tech Analyst Says There's 'Zero Chance' For An Apple-Tesla Merger.

• States Are Taking Advantage Of An Obamacare Loophole To Pass On Vast Inmate Health Costs.

• There Are Growing Questions About Money The Clintons Received From Ukrainian Victor Pinchuk.

• This Is What $11.52 Trillion Of Household Debt Looks Like.

• Comcast(CMCSA) Could Be Working On A Netflix(NFLX)-Killer, Which Means Time Warner Customers Might Not Get The Netflix App On Their Cable Boxes.

• Obama Will Order Higher Fuel Economy Standards For Trucks.

NY Times:

• Nobel Winner’s Frank Advice to China’s Leadership.

Reuters: 

• Brazil's central bank keeping a close eye on inflation-Tombini. Brazil's central bank is keeping a very close eye on consumer prices and will continue to make sure inflation slows down in 2014 and beyond, central bank chief Alexandre Tombini said on Tuesday.