Skim the headlines. Something is definitely happening. My wild guess: they are removing austerity measures, planning to bail-in some banks in too-large crisis countries and easing monetary policy. Actually might work. But they still have to fix the euro.
Previously on MoreLiver’s:
Current specials:
Roundups &
Commentary
News – Between
The Hedges
Markets – Between
The Hedges
Daily Interest Rate Monitor – Global Macro Monitor
Recap – Global Macro Trading
The Closer – alphaville / FT
Europe: "Bad Is Good" Stock Exuberance
Continues But Bonds Reverse – ZH
EUROPE
Austerity absurdity? – Presseurop
“The policy of
austerity has reached its limits”, says Barroso, the first time Brussels has questioned its own policy. It’s time we
grasped that one path for such varied countries doesn’t work, writes
Süddeutsche Zeitung.
Europe and
Depositor Preference – WSJ
When banks fail,
should depositors be burned alongside holders of senior bank debt or should
debt holders lose money before depositors are touched?
Sympathy For the Dijsselbloem – It’s
Not That Simple
It’s about Spain. It’s always been about Spain. This whole sorry spectacle has always been
about Spain. Greece and Ireland, forgive me, are small. So’s Portugal. But Spain and Italy are too big to be successfully yaddayadda-ed.
And the way that the contagion dominoes have stacked up, it has been clear for
a few years that if you win the battle in Spain, you won’t have to fight it in Italy, while if you lose the battle in Spain, you’re probably not going to get a chance in Italy. And Spain (unlike Italy) has always been a case where it’s basically a
banking sector problem that has infected the sovereign, rather than basically a
sovereign problem that has infected the banks.
A Slovenia Q&A – alphaville /
FT
Shouldn’t be worried? Hey
now, that’s not at all what I said. That a problem is solvable is no assurance
that it will be solved — especially in Europe, where casual disregard is a leading contrary
indicator.
Christian Noyer: The euro area is getting
stronger – BIS (pdf)
Governor of BoFrance
and Chairman of BIS, at the Paris Europlace International Financial Forum,
"Post-crisis growth and investment opportunities in Europe", New York, 22 April 2013.
Germany’s
Trial Balloon Of A “Plan B” – Testosterone
Pit
Euro may only last five years, says senior
German government advisor – The
Telegraph
The euro has a
“limited chance of survival” and may only endure another five years, Kai
Konrad, one of the German government’s closest economic advisers, has claimed.
ECB
FX HORIZONS: C’mon ECB, Tell Us What You Really
Think – WSJ
The ECB is less
transparent than the FED, and for little reason.
ECB says ditching austerity would not help
euro zone – Reuters
ECB policymakers
rebuffed suggestions that Europe should
ease up on austerity and said that while the central bank has room to cut
interest rates, such a move would not necessarily help the economy much.
The Frankfurt veto – Free exchange
/ The Economist
Soaring borrowing
costs apparently weren't about indebtedness at all, but about uncertainty over
the ECB's willingness to act as lender of last resort. That, of course, means
that any pivot away from fiscal consolidation in the euro area will require
approval from Frankfurt…
Annual Report 2012 – ECB (pdf)
ITALY
Italy has a new Prime Minister. And it's a surprise one... – Open
Europe
Letta Named Italian
Prime Minister as Impasse Ends – BB
Italy president names center-left's Letta as new premier – Reuters
Italy's new Prime Minister: Pro-EU integration, anti-austerity? – Open
Europe
UNITED STATES
Mediocre Earnings and Revenues – Bespoke
As it stands now, 56.9% of the 458 US companies that have reported have beaten earnings estimates. This would be the lowest reading seen since the bull market began, so the remaining companies that still have to report have some work to do!
Mediocre Earnings and Revenues – Bespoke
As it stands now, 56.9% of the 458 US companies that have reported have beaten earnings estimates. This would be the lowest reading seen since the bull market began, so the remaining companies that still have to report have some work to do!
DURABLE
GOODS
Weak orders point to
sluggish economy – Reuters
Decline by Most Since
August – BB
Plunged in March,
Worse Than Expected – dshort
-5.7%; CapEx Recovery
Put On Indefinite Hiatus – ZH
Spring Swoon Hits
Factories – WSJ
ASIA
OTHER
IMF: Evidence does not support the ban on naked
SCDS purchases – Sober
Look
What to Do about High-Frequency Trading – CFA
Institute
Man vs. Machine: Squawk Box Trumps Twitter – WSJ
FINNISH
Juhana
Vartiainen tyrmää kolme myyttiä – TalSa
Eihän talous voi kasvaa kun ollaan kriisissä,
ja iäkkäät vievät nuorten työpaikat. Tai sitten eivät. Valtion taloudellisen
tutkimuskeskuksen VATT:n ylijohtaja Juhana Vartiainen lyttäsi yleisimmät
kohtaamansa vastaväitteet uuden tutkimuksensa julkaisutilaisuudessa. Tehoaako
sitten työpaikkojen luominen?
Urpilainen:
Suomi kulkee talouskurikiistassa kultaista keskitietä –
HS
Valtiovarainministeri Jutta Urpilainen (sd)
tapasi eilen päättyneellä Yhdysvaltain-matkallaan kaksi talousnobelistia,
kuripolitiikan ärhäkän arvostelijan Paul Krugmanin ja globalisaatiokriittisistä
ajatuksistaan tunnetun Joseph Stiglitzin. "Nobelistien näkemys Euroopasta
oli hyvin pessimistinen", Urpilainen kertoo.