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Wednesday, November 13

13th Nov - Deflation and the ECB

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European Council: The EU’s secret summitryPresseurop
A lack of openness in Brussels negotiations is often cited as a cause of the EU’s democratic deficit. But for the “Brussels' ultimate insider”, historian Peter Ludlow, behind-closed-doors meetings are a cornerstone of EU leaders’ decision-making.

Europe Looks Better, So It Must Be Time to Sell the EuroWSJ
That’s the message one Citibank analyst is taking from the passing of a key milestone in the comparative value of euro-zone and U.S. debt.

European Rally Not Over Yet: BofA MerrillWSJ

Le Pen, Wilders eye eurosceptic alliance for EU electionsReuters
Eurosceptics Geert Wilders of the Netherlands and Marine Le Pen of France will discuss closer cooperation on Wednesday in a bid to capitalise on voter frustration with mainstream politics before 2014 European parliament elections.

The last thing highly-indebted Britain wants is price deflationThe Telegraph
Some European countries are already in technical price deflation, which makes the “good news” on British prices seem somewhat underwhelming

Governments must follow the ECB's rate cut with policy action Bruegel
Besides bank restructuring in the periphery in particular, the right conditions for more growth in Germany and France need to be put in place.

Nationalism makes for bad economics, ECB editionWaPo
But if the experiment of a united Europe is to succeed, the central bankers will have to act with the unity that they have pledged. These divisions, if they persist and widen, could come at a cost of dysfunction in the one European institution that has stood tall against the challenge of holding a disparate continent together.

Four Takeaways From Interview With ECB’s PraetWSJ
Brussels looks warily at German surplusMacroScope / Reuters
Barring a last minute change of heart, the European Commission will launch an investigation into whether Germany’s giant trade surplus is fuelling economic imbalances, a charge laid squarely by the U.S. Treasury but vehemently rejected by Berlin.

One Year Later, Has the German Bubble Grown?CFA Institute
A look at the risks that have been building in advance of the Deutsche Bundesbank’s warning about property bubbles, and what they mean for the eurozone.

Europe Follows US In Demanding Germany Explain Its Exporting WaysZH

Germany Blasts Back At Barroso's Bureaucratic BlatheringZH

BOE’s Carney Finally Says ‘Rates Could Rise Sooner’WSJ

BOE’s New Guidance: Investors and Economists ReactWSJ

BoE more upbeat on economy but in no rush on ratesReuters

BOE Struggles With Forward GuidanceWSJ

Should we be worried about deflation if the ECB is?TradingFloor

Analysis: Deflation threat in Europe may prompt investment rethinkReuters
The threat of deflation in the euro zone could reverse a major investment trend of 2013, drawing funds out of stocks and into government bonds and cash.

ECB briefs heads of top euro zone banks ahead of stress testsReuters
Bosses from top euro zone banks were gathering at the ECB on Wednesday to find out what it will be looking for in its upcoming "stress tests" on their balance sheets.

EU banks outside euro zone likely to overcome stress test divideReuters
EU nations that lie outside the euro zone plan largely to fall in behind the European Central Bank when they check the health of their banks, helping them to avoid a "two tier" outcome in stress tests next year.

Factbox: Non-euro zone bank stress tests preparations by countryReuters
Many of the 11 EU nations that lie outside the euro zone plan to align tests of the health of their banks closely with a European Central Bank assessment of major lenders within the currency bloc.

Plan to raid bank creditors could shatter calmReuters
Market euphoria and soaring demand for European bank debt could be brought back down to earth if the European Union pushes ahead with the early introduction of rules allowing Cyprus-style raids on bank creditors and big depositors.

Euro Tumbles After ECB Hints At QEZH

Germany’s Weidmann Defends ECB Against Charges It’s Hurting SaversWSJ

Euro area industrial production points to modest Q3 GDP growth – TradingFloor

Fed’s Kocherlakota: Expectations of Fed Taper Are ‘Puzzling’WSJ

Why Has Nobody Gone To Jail For The Financial Crisis? Judge Rakoff Says: "Blame The Government"ZH

China Plenary Ends, Significance Yet to Be DeterminedMarc to Market
The initial official coverage seemed to emphasize the upgrading of market forces.

Hedging betsFT
China's ruling Communist Party has pledged at its Third Plenum to give the market a “decisive” role by 2020, but its commitment to the state’s pre-eminence is unchanged.

Third Plenum: The Analysts’ TakeWSJ

The morning after the plenum before… - alphaville / FT

How to make “comprehensively, deepening reform” in ChinaThe A-list / FT
Was the outcome of the Third Plenum “unprecedented”, as one member of the standing committee expressed beforehand? Or at least “comprehensively deepening reforms”, as characterised officially?

Understanding Japan’s GDP: A Guide for the PerplexedWSJ
Japan on Thursday will release preliminary data for the third quarter’s gross domestic product, which will serve as a progress report on Prime Minister Shinzo Abe's economic policies and provide a key input into discussions of next year's budget.

Central Banks Risk Asset Bubbles in Battle With Deflation DangerBB
Central banks are finding it’s easier to push up stock and home prices than it is to prevent inflation from falling short of their targets.

Inflation is Dead? Not EverywhereWSJ
Until the richer countries can spur enough domestic spending to generate jobs and find buyers for the surfeit of goods now produced by their lower-income counterparts, the price of both those goods and of labor will stay depressed in the developed world.

Deflaatiosta Euroopan kriisimaiden uusi uhka * Pitkät korot nousu-uralla * Asuntomarkkinoiden ahdinko painaa Norjan kruunua * Option suojauskustannus vain osa preemiosta

Tässä kisassa euro jää helposti jumboksiJan Hurri / TalSa
Keskuspankit käyvät kisaa siitä, kenen valuutta heikkenee eniten. Kaikki haluavat heikon valuutan, jotta talous lähtisi kasvuun muita nopeampi. Kaikki eivät voi tätä kisaa voittaa eikä yksi voi kuin hävitä. Euron rakenne ja säännöt tarkoittavat, että se ei voi olla valuuttojen suurin pudottaja.

Kiinnostaako ketään totuus alkoholin matkustajatuomisista?Soininvaara

Suomiko seuraava kriisimaa? ”Mennyt ei ole tae tulevasta”Uusi Suomi

Brysselin kone: Enemmän federalisaatiota Euroopan unioniinYLE
Miksi EU:ta kannattaisi muutta aiempaa federalistisemmaksi.Haastateltavana on Eurooppafederalistien vt. puheenjohtaja Saku Lehtinen ja toimittajana Maija Elonheimo.

Onko Suomen leijona luovuttanut?Risto Pennanen / TalSa
Suomen leijona kuulostaa tappioon alistuneelta hetkellä, jolloin kaivattaisiin jälleenrakentamista.

Saksan toimet syyniinHenri Myllyniemi / US Puheenvuoro

Mikään ei koskaan muutuJuhani Huopainen / US Puheenvuoro

Maan hallitukselta oikea päätös: Veropäätökset luovat pohjaa kasvulleEK

Orpo: Suomen suurin yritysveroremontti sitten 90-luvunVerkkouutiset

Suomelta tiukat reunaehdot kriisipankkien pelastamiselleVerkkouutiset

EU:n komissio ruotii Suomen taloutta tarkemminYLE
Suomen kilpailukyvyn nopea lasku huolestuttaa komissiota. 16 maata mukana.