Japan joined the central bank's bonanza with additional QE. Otherwise nothing going on - negativity in commentary on the Fed's QE and Europe in general.
Previously on MoreLiver’s:
Roundups & Commentary
US Opening News And Market Re-Cap –
Ransquawk / ZH
Frontrunning
– ZH
Overnight
Sentiment – DB
/ ZH
The Lunch
Wrap – alphaville
/ FT
Emerging
N.Y. headlines – beyondbrics
/ FT
Today’s
front pages – presseurop
Daily press
summary – Open
Europe
Draghi
open to publishing minutes of ECB meetings; Bundesbank Chief cites Goethe’s Faust
to warn against activist monetary policies
Morning
MarketBeat: Despite QE3, Dow Theorists Still Worried – WSJ
Broker Note
Briefing – WSJ
Morning
Take-Out – NYT
AM Dear
Dairy: Quiet at Mid-point – Macro and Cheese
Japan Today, Spain Tomorrow – Marc
to Market
– TF Market
Advisors
US session ahead
Pre-market
Commentary – Marketwatch
Pre-Market
Trading – CNNMoney
Pre-Market
– NASDAQ
US Equity Preview – Bloomberg
Earnings
& Events – The
Street
MarketCurrents
– Seeking
Alpha
Reference
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
EUROPE
EUR fundamentals: the “glass-half-full” look – Nordea
(pdf)
Not denying that the EMU is facing a few tough
years ahead, it is worth pointing out that the situation has improved somewhat
over the past few years. The EMU is now in a more sound state than it was just
3-5 years ago.
Missed Chances Stoke Skepticism Over EU’s
Crisis Fight – BB
Background
/ summary article
What really caused Eurozone banks' balance
sheets to grow? – Sober
Look
So what actually drove this increase in assets
discussed above? A large part of it was due to accelerated purchases of
sovereign debt… Italy and Spain clearly did not care if banks' balance sheets would increase as a
result. And it was done at the expense of lending to the "real
economy", pushing the Eurozone into its current recession.
The head of Germany’s Bundesbank has raised eyebrows across Europe after he appeared to compare Mario
Draghi’s bond buying programme with the "devil’s work".
Faust and the German aversion to debt – alphaville
/ FT
Weidmann didn’t directly discuss the ECB or the
OMT during his speech on Tuesday — but the message seemed pretty clear.
Investors on Tuesday piled pressure on Spain to request
international aid and trigger a European Central Bank bond-buying program seen
as inevitable to help the country finance its debt, with the benchmark 10-year
bond rising to just over 6 percent.
USA
A Flaw in the QE Expectational Transmission
Mechanism? – PragCap
The Three Costs of QE3 – The Reformed
Broker
The QE Aftermath: What it Means and How it’s
(not) Different – CFA
Institute
Do the benefits of an open-ended QE program,
which looks like it could be massively mispricing risky assets, justify such a
dramatic action by the Fed? I am personally not convinced either way, but I am
sure it will be a case study in many ways going forward. For now, I am
optimistic that positive news in the housing market, modest job improvement,
and strong corporate balance sheets will continue to build momentum with the
aid of QE.
Chart of the day, housing bubble edition – Felix
Salmon / Reuters
ASIA
The BoJ’s feud-driven asset purchase extension – alphaville
/ FT
Japan’s finance minister Jun Azumi was pretty
clear about how the country might respond after the FOMC’s decision last week
threatened to push the yen higher against the dollar. Today the BoJ made good
on the threat, announcing it would increase its asset-purchasing programme to
¥80 trillion ($1.01tn) from ¥70tn.
A currency war campaign plan for the BoJ – alphaville
/ FT
the last two pushes by the BoJ, in April and
February, didn’t have much of a lasting impact — although February’s move when
the bank also announced an explicit inflation target was initially very
impressive. Essentially, the BoJ is and was fighting to stem a tide rather than
reverse its flow.
The End of China's Easy Growth – The
Telegraph
The more we learn about China’s vast stimulus
plans, the more far-fetched they seem.
Trade between China and Japan is worth hundreds of
billions of dollars a year yet the two nations are locked in a battle over a
few rocky outcrops in the East China Sea. Business Daily asks how the dispute over these uninhabited islands
will hit the two countries economies. Plus - how much more room for smartphone
innovation is there...?
Is the market still too optimistic about
Chinese corporate earnings? – ASA
OTHER
CEO Speaker Series: A Conversation with Ray
Dalio – CFR
Transcript
of the long interview
To be Europe this autumn... – Humble
Student
Despite all the hoopla about the actions of the
Fed, it has been European equities that have begun to bottom and started to
become the leadership. US equities have begun
to weaken against global equities and started to lag.
Slumping trade growth – and more oil Jedi mind
tricks? –
alphaville / FT
Is Saudi Arabia having to again resort to Jedi mind tricks? Does the central bank of
oil still have such a big problem with its policy transmission mechanism that
it can’t weaken prices by production alone — and what effect is this having on
world trade?
IN FINNISH
Tätä menoa
keskuspankit ja valtiot tuhoavat rahan – Jan
Hurri / TalSa
Maailman mahtavimmat
keskuspankit ovat kriisin mittaan pumpanneet talouteen yli 6 000:ta miljardia
euroa vastaavan summan painotuoretta rahaa. EKP ja Yhdysvaltain Fed ovat juuri
luvanneet markkinoille lisää rahaa vaikka rajattomasti. Ilmainen raha on mannaa
keinottelijoille, mutta onko hillittömistä rahatoimista meille muille enemmän
haittaa kuin hyötyä? Tätä kysyvät talouden ammattilaisetkin.
Pääkirjoitus:
Julkisten varojen törkeää väärinkäyttöä – IS
Julkisen hallinnon
tietojärjestelmien uudistukseen on vuosien varrella käytetty jo satoja
miljoonia euroja ja loppua ei ole luvassa, kun ryhdytään luomaan koko maan
kattavaa potilastietojärjestelmää, jonka hinnaksi Sitra on arvioinut
ällistyttävät 1,8 miljardia euroa.
Pääkirjoitus: Pankkiunionin
aikataulu koetuksella – HS
Euroopan rataennätys –
Henri
Myllyniemi / US Puheenvuoro
(keskustelu on pihvi tässä)