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Wednesday, May 21

21st May - BoJ, BoE, Fed

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Great Graphic: UK Housing Market Problem?Marc to Market
London may have a housing market problem, but it is not a generalized condition. 

Euro-Zone Bonds Start To Look QueasyWSJ
Yields, which had fallen substantially since the start of the year, have started to pick up again.

EZ consumer confidence improves to -7.1 from -8.6EC

Will the ECB shoot itself in the foot?CNBC

High importance but low interest - what to expect from the European electionsMerkelnomics

Do Europeans Really Fear Migrants?Project Syndicate
Though right-wing populists are set to make substantial gains in the upcoming European Parliament election, it would be a mistake to conclude that migrants' mere presence in Europe fuels support for extremists. On the contrary, it is the absence of effective policies to manage migration that has alienated European voters.

The EU Parliament is a failed experiment in pan-European democracyEuropp / LSE
National parliaments are the key to solving the democratic deficit

BOE’s Bean Says Crisis Shows Worse Things Can Happen Than You’d Imagine – WSJ
BOE Says Interest-Rate Arguments Becoming ‘More Balanced’ – BB
Stimulus Exit No Easy Job, Says Bank of England’s Bean – BB
U.K. Retail Sales Surged in April as Discounting Boosted Food – BB

A case of bad breadth?Humble Student
Despite the positive performance of the A-D Line, other breadth indicators are flashing warning signals. Don`t say that you were not warned.

Dudley Revisits Exit StrategyTim Duy’s Fed Watch
Dudley reinforces expectations that the low rate environment will persist long into the future. The data flow is not providing reason to think otherwise at this point; we would need to see higher inflation numbers coupled with real reason to believe labor market slack was rapidly evaporating, probably in the form of stronger wage growth. It remains interesting that the Fed does not view their own outlook as reason to accelerate the pace of activity. They seem relatively content to accept what they themselves acknowledge is an ongoing disappointment. 

Conviction for U.S. inflation rise strengthens: Reuters pollReuters
Low U.S. inflation is slowly advancing and will reach 2 percent by late this year, according to a Reuters poll of economists that underscores how the Federal Reserve may soon come under increasing pressure to raise interest rates.

What you should pay attention to in the Fed’s very busy weekWaPo

Fed Sees No Inflation Risk in Stimulus PoliciesBB

Fed’s Dudley: Notable Part of Labor Force Drop Due to Discouraged Workers – WSJ
Kansas City Fed President Touts Decentralized, Diverse Fed – WSJ
Kocherlakota: Fed Doing a Bad Job Of Meeting Job, Inflation Goals – WSJ
Yellen: Yankee Legends, Fed Officials Shouldn’t Be Afraid to Swing and Miss – WSJ

FOMC Minutes: Monetary Policy Normalization DiscussionCalculated Risk

FOMC Minutes Show Fed Fears No Inflation Risk; Worries About Complacency, Discusses "Low Level Of Volatility"ZH

Hilsenrath Sums Up The Fed Minutes In 2 Words "Exit Strategy"ZH

Key Passages: Read the Federal Reserve Meeting Minutes in Just a Minute WSJ

Fed begins policy exit talks, split on view of U.S. job market - Reuters

Australian Consumers’ Downbeat Mood Revives Talk of Rate CutsWSJ

BOJ offers brighter view on economy, dashes near-term policy easing hopesReuters
The Bank of Japan kept policy steady on Wednesday and painted a slightly more optimistic view of the economy, dropping a reference to the country being in deflation and further dashing expectations it will offer more stimulus any time soon.

BOJ Refrains From Easing With Signs Japan Weathering Tax RiseBB
Japan’s central bank refrained from boosting stimulus and raised its view of business investment as the economy shows signs of weathering the impact of the first sales-tax increase since 1997.

Bank of Japan on hold but too early to be complacentDanske Bank

Weekly Bond Update: Is the tide finally turning?TradingFloor

A Ten-Step Program for Understanding Emerging MarketsView / BB

Yen and Sterling DayMarc to Market
The US dollar has slumped to a new three month low against the Japanese yen…Sterling is the other big mover today. The combination of stronger retail sales (three times stronger than expected) and BOE minutes that showed some officials see a case for a rate hike getting stronger, lifted sterling

Macro Horizons: U.K. Retail Sales Soar; BOE Getting Close to Raising Rates?WSJ

Grand CentralWSJ
Schlesinger’s Take: Japan’s Tax Threat Recedes: New Problems, Tough Policy Choices For Autumn * Dudley: No One Can Say When Fed Will Raise Rates * BOE Minutes Show First Hint of Votes to Raise U.K. Rates * BOJ Upgrades View on Capital Spending * Senior BJP Leader Favors Replacing RBI’s Rajan

EU haaskaa verorahojasiSampo Terho

Asuntojen hinnat ovat kohtuullisiaKai Nyman / Piksu