US Open
regular links and some articles. As Europe seems to be frozen policy-wise, take a look at
the highlighted articles. Someone has to give in soon. All this talk about the
Troika and Athens playing a game of chicken is bullshit. The true game is between the banks and the ECB. It is not about the PIIGS vs. FANGS. It is about Germany against everyone else.
Frontrunning
– ZH
The Lunch
Wrap – FT
EM New York
headlines – FT
Overnight
Summary – Bank
of America / ZH
Today’s
Front Pages – presseurop
Daily Press
Summary – Open
Europe
Greek
euro exit could put pressure on David Cameron to veto EU Treaty change; Chris
Grayling: Cameron should make more use of vetoes in EU talks
Morning
MarketBeat: Headline-Driven Markets Make Comeback – WSJ
Broker Note
Briefing – WSJ
Morning
Take-Out – NYT
Wonkbook:
The bad news Brits – WP
AM Dear
Dairy – Macro
and Cheese
Attack of
the Killer E’s, Ease, and Eeze Updated – TF
Market Advisors
US Open: Calmer
Tone Ahead of the Weekend – Marc
to Market
Pre-market
Commentary – Marketwatch
Pre-Market
Trading – CNNMoney
Pre-Market
– NASDAQ
US Equity Preview – Bloomberg
Earnings
& Events – The
Street
MarketCurrents
– Seeking
Alpha
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
EURO CRISIS: GENERAL
The Threat of German Amnesia – Project
Syndicate
Joschka Fischer: It would be both tragic and ironic if a restored Germany, by peaceful means and with the best of intentions, brought about the
ruin of the European order a third time.
Draghi, the last domino falls – Humble
Student of The Markets
As expected, the Latin quarter of the eurozone ganged up on Germany on the issue of eurobonds, but Angela Merkel stood fast. But Germany is becoming increasingly isolated.
Credit
Suisse: 600 billion, approximately.
Barclays
notes investors simply do not trust banks, and Basel should take note.
“Deutschlandbonds“, “hispanobonos”: What is
behind national joint bonds? – Deutsche
Bank
Currently, there are increasing suggestions
that the lower levels of governments should issue joint bonds in cooperation
with the central government. In Spain, so-called
“hispanobonos” have been discussed for quite some time. Representatives of some
– mainly fiscally weaker – German federal states have lately suggested
so-called “Deutschlandbonds”. What is the main idea behind them?
EURO CRISIS: ECB
The first
rule of ELA is you don’t talk about ELA.
On the ECB’s attempts to ring-fence its
balance sheet – alphaville
/ FT
Standard Chartered: ECB President Draghi recently hinted that managing risks was his utmost priority, further differentiating the ECB from other major central banks (Japan, US, UK), which have shown less reluctance about conducting broad-based quantitative easing (QE).
Standard Chartered: ECB President Draghi recently hinted that managing risks was his utmost priority, further differentiating the ECB from other major central banks (Japan, US, UK), which have shown less reluctance about conducting broad-based quantitative easing (QE).
EURO CRISIS: BANKIA
As Bankia Bailout Costs Grow Exponentially, Is
A Stealth Bank Run Taking Place – ZH
Hopefully we aren't the only ones to notice how the bailout cost has oddly doubled almost on a daily basis. Which is to be expected: After all, recall that The Bankia group, was formed in late 2010 following a merger of seven insolvent savings banks led by Caja Madrid, which has the most exposure to Spanish real estate among the nation’s banks. The pro forma company then, under the guise of newfound solvency, turned to the stock market to raise capital after parking its worst real estate assets in the parent company. This worked for just over a year. Then Bankia itself blew up.
Hopefully we aren't the only ones to notice how the bailout cost has oddly doubled almost on a daily basis. Which is to be expected: After all, recall that The Bankia group, was formed in late 2010 following a merger of seven insolvent savings banks led by Caja Madrid, which has the most exposure to Spanish real estate among the nation’s banks. The pro forma company then, under the guise of newfound solvency, turned to the stock market to raise capital after parking its worst real estate assets in the parent company. This worked for just over a year. Then Bankia itself blew up.
Bankia suspended… uniquely – alphaville
/ FT
The rumours circulating suggest the suspension
is due to a request for more than €15bn in state-bailout funds Bankia likely is
likely to make when its board meet later on Friday.
QE?
Global - Waiting for the policy response – Danske
Bank (pdf)
What's needed to trigger the Fed? – Danske
Bank (pdf)
QE Alert! Central bankers realizing they are
behind the curve – Saxo
Bank
All macro policies are eventually proven as
failures and I continue to believe that my headline “Extend-and-Pretend is
becoming Pretend only” is appropriate. Time is running out, and all monetary
policies are now behind the curve while structural reforms are still lacking.
OTHER
Chart: Internal vs. External Devaluation – ASA
internal devaluation produces far more increase
in unemployment rate vs. external devaluation.