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Monday, June 24

24th Jun - US Open: BIS, China

More on BIS and China.

Previously on MoreLiver’s:

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Roundups & Commentary
Frontrunning – ZH
Overnight: US Traders Walk In To Another BloodbathZH
The Lunch Wrap – alphaville / FT
Emerging N.Y. headlines – beyondbrics / FT
Midday Express (EU daily news) – Europa
Daily press summary – Open Europe
  Dutch government: Time for ‘ever closer union’ in the EU is over

Morning MoneyBeat: How to Cope With Rising Interest Rates – WSJ
Morning Bond Update – TradingFloor
Capital Market DriversMarc to Market

The Euro Zone’s Got An Emerging Markets ProblemWSJ
First, there’s the foreign-exchange effect… And then there’s the flight from risk.

Dutch government: "Time of ‘ever closer union’ in every possible area is behind us”Open Europe

Merkel party: No to eurobonds and No to Turkeyeuobserver
Merkel's CDU party has voiced opposition to debt mutualisation and to Turkey's EU entry in its election manifesto. (Austria also opposes Turkey’s membership)

Ministers crawl toward bank resolution dealeuobserver
EU finance ministers will reconvene Wednesday in a last-ditch attempt to agree rules on winding down failed banks.

Chicago Fed: Economic Activity Slightly Improved in May – dshort
Chicago Fed: "Economic Activity slightly improved in May" – Calculated Risk
Chicago Fed index confirms Q2 US slowdown – TradingFloor

China Crashing: Shanghai Composite Tumbles Most Since 2009ZH
Goldman Sachs: The recent tightening of the interbank market has sent a strong policy signal that the strong credit growth earlier in the year will likely not continue.

Chief Economist’s Corner: China roundtripNordea (pdf)
China’s economy is slowing down, but that was not exactly the impression I got during my visit to Beijing about a month ago. It was my second visit to the Chinese capital.

PBoC cash crunch statement: relief for some and pain for othersbeyondbrics / FT
The People’s Bank of China on Monday finally went public over the country’s liquidity squeeze… the authorities don’t want a banking crisis. But they appear to be serious about putting the brakes on credit growth, even at the cost of slowing the economy.

PBoC says banks can just deal with italphaville / FT
In case it wasn’t clear enough that the People’s Bank of China is mostly okay with the squeeze in interbank liquidity, it came out with another signal today.

China’s liquidity crunch, and what it means for everyonealphaville / FT
It’s hard to know exactly what degree of control the PBoC has over the events unfolding in China’s interbank markets. On the one hand, making the smaller banks and shadow finance entities sweat fits with the central bank’s new high-priority goal, introduced late last year, of containing ‘financial risks’, and also with a broader government theme of clamping down on excess.

A big PBOC bluff?alphaville / FT
The PBOC’s “this is not the liquidity crisis you’re looking for” statement at the weekend may have drawn attention, but it didn’t really manage to reassure equity markets. The Shanghai Composite closed over 5 per cent lower on the day:

Bank Of China Declares Moratorium On Transfers, Online Banking; Counters InoperableZH

PBoC breaks silence over China cash crunchFT
The Chinese central bank has taken a hard line on the country’s cash crunch, fuelling a stock market rout amid concerns that its stance will harm growth prospects this year.

The BIS Loses Its Mindnaked capitalism
Advocates Kicking Citizens and the Bond Markets Even Harder

Dead-enders in Dark SuitsKrugman / NYT
A remarkable report from the BIS.

Central bankers have found a new mouthpiece, listen carefullyTradingFloor
Ken Veksler: The market should take note of the Bank for International Settlements' annual report in which it applauded the Federal Reserve for moving away (apparently) from expansionary monetary policy and urged that other central banks follow suit.

Fed and ECB timetable and agenda differences heightenedTradingFloor
Neil Staines: As the BIS highlights its concerns over global central bank policy and the need for governments to pick up structural reforms, it is worth reviewing the global macroeconomic backdrop.

BIS fears fresh bank crisis from the global bond spikeThe Telegraph

The sermon from BaselFree exchange / The Economist
I'm a central banker, get me out of here

The intellectual bankruptcy of the austeriansmainly macro
It is both amusing and tragic to watch the advocates of fiscal austerity try and deal with the fact that the thin intellectual foundations for their approach have crumbled away, while at the same time the empirical evidence of their folly accumulates.

(for more on BIS, see my morning post)

Just when you thought it was safe to get back in the water… - MacroScope / Reuters
A worrying weekend for the euro zone.

Stopping Bank Crises Before They StartWSJ
John Cochrane: Regulating the riskiness of bank assets is a dead end. Instead, fix the run-prone nature of bank liabilities.

Fed and ECB timetable and agenda differences heightenedTradingFloor
Neil Staines: As the BIS highlights its concerns over global central bank policy and the need for governments to pick up structural reforms, it is worth reviewing the global macroeconomic backdrop.

Financial Forecast Update June 2013Nordea (pdf)
We have made minor changes to the US rates and the commodities forecasts, and we summarize last week's FX forecast changes (summary here).

(audio) BizDaily: BRICS 24 June 2013BBC (mp3)
The BRICS nations - Brazil, Russia, India, China and South Africa - were once a great beacon of hope for the world economy. On Business Daily today we ask whether BRICS will ever get back to the fast growth they once enjoyed? And Lucy Kellaway of the Financial Times on why you should judge a book by its cover, why looks do matter in the workplace.