Google Analytics

Friday, June 21

21st Jun - EU Open: Midsummer Madness

It's a holiday in Finland, and the weather is nice. So perfect time for me to get some work done in a deserted city and keep blogging light for the day.

Today: more on China, Europe's summits have agreed to use the ESM to bail out banks. My guess on the number of drowned people in Finland during the holiday weekend? 10 (ten).
Previously on MoreLiver’s:

Follow ‘MoreLiver’ on Twitter or Facebook

News roundup – Between The Hedges
The 6am Cut London – alphaville / FT
Emerging Markets Headlines – beyondbrics / FT
Asia Morning MoneyBeat: When It Rains… – WSJ
Europe Morning MoneyBeat: Fifth Week Of Losses Looms For Stocks – WSJ

3 Numbers to Watch: BoJ governor, EZ current account, ECOFINTradingFloor
Juhani Huopainen: Bank of Japan's Kuroda might sooth the markets, the Eurozone's current account surplus is expected to have tumbled and the ECOFIN should come to an understanding on who will pay banking losses and how they will do so.

Market Preview: EU current account and UK public finances eyedTradingFloor
European markets are expected to open marginally lower on Friday. With a light economic calendar today, traders will keep an eye on the Eurozone current account balance and UK public finances due later today for further risk appetite direction.

Danske DailyDanske Bank (pdf)
Markets will continue to digest the outlook for Fed tapering. There are no key figures of significance today.


Eurozone bailout fund to prop up banks from 2014euobserver
The eurozone's bailout fund will be able to directly prop up weak banks from next year, after ministers reached agreement on Thursday night.

Germany’s Schaeuble Says ‘Important Step’ Taken on Banking UnionBB
Comments on the future direct recapitalization of banks by the ESM, the Single Supervisory Mechanism for European banks, the German legislative process for the transfer of banking supervision powers and the domestic political situation in Greece. He spoke after the Thursday’s meetings.

Euro Chiefs Recommit to Crisis Strategy as Global Markets PlungeBB
European governments recommitted to their recipe for fixing the economy, dismissing concerns that plummeting global markets would spark renewed turmoil in the crisis-hit euro zone.

Ministers bid to bridge divide on bank rescue fundseuobserver
EU finance ministers will meet in Luxembourg on Friday aiming to agree a new regime to wind down failing banks, in the latest attempt by politicians to break the so-called 'doom loop' between indebted banks and sovereigns.

ECB Bank Oversight Start Said to Be Delayed to Late 2014BB
The ECB probably won’t take over as euro-area bank supervisor until the final months of 2014, further delaying the banking union that leaders wanted in place quickly to stem the sovereign debt crisis.

Analysis: Creeping mistrust stops euro zone banks lending to peers across blocReuters
Euro zone banks are refusing to lend to peers in other countries in the common currency bloc, signaling a worrying fall in confidence that appears to have worsened since the Cyprus bailout earlier this year, data analyzed by Reuters showed.

BOJ Beat: Board Divided Over Inflation TargetWSJ
The Bank of Japan's policy board has backed the bold monetary easing program of its new governor, Haruhiko Kuroda. But how they feel about his goal to achieve a 2% inflation rate in two years is a different matter.

BOJ's Kuroda: Markets will stabilize over timeReuters

The old Chinese model has run out of roadThe A-List / FT
Stephen King: Before the onset of the global financial crisis, China could be relied upon to export its way out of trouble. Year after year, its exports grew at an annual rate well in excess of 20 per cent. As its current account surplus rose, its economy expanded with a swagger that became the envy of the world. Now, however, China’s export growth has faded, its current account surplus has almost disappeared and Beijing has had to search for alternative sources of rapid economic expansion.

Credit Tightens in China as Central Bank Takes a Hard LineNYT
China’s financial system is in the throes of a cash squeeze as the government tries to restructure the economy and punish speculators, with interbank lending rates spiking on Thursday and bank-to-bank borrowing nearly stalled.

China rates spike again as banks scramble for fundsReuters
Chinese cash rates spiked as high as 25 percent for a second day on Friday as banks scrambled to secure cash, but fears of a broader banking crisis eased on speculation the central bank had quietly added funds to the market.

Jack Ma in People’s Daily: China Finance Regulation ‘Excessive’WSJ
In China it’s not often you get a big-time business leader offering advice to the country’s finance regulators in the pages of the Communist Party’s mouthpiece newspaper. But that’s just what happened Friday morning.

Rates morning comment: Higher market rates and the ECBNordea
Will higher rates prompt an ECB reaction?  * Recovery is finally on the way in the Euro area * Norges Bank: No rate change, but might cut in September