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Sunday, June 1

1st Jun - W/E: The World

Previously on MoreLiver’s:

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We should quit EU if Britain's national sovereignty is not 'considerably restored'The Telegraph
The EU debate should be about democracy, freedom, closer economic and political relationship with the rest of Europe but not what we currently have

Despite election results, reason still rules EuropeReuters

Somewhat more than a harmless warningBNP Paribas
Paradoxically, the fact that it will be hard to establish a partisan majority should make broader compromises easier. These extremes are looking above all to have an influence at the national level. The main risk is that European political ambitions will be reduced.

European Elections Likely to Complicate Trade Talks With U.S.WSJ
The most vocal supporter of a trade deal with the U.S., the center-right European People’s Party, is expected to hold 213 seats in the new Parliament, down from 274 seats. In turn, a swell of new, largely unaffiliated lawmakers will join the body, many of them skeptical of the EU’s scope and powers.

Europe’s angry voters: Bucked off – The Economist
Europe’s elections: The Eurosceptic Union – The Economist
Germany’s European elections: An alternative becomes real – The Economist
European elections in the Nordics: Schadenfreude – The Economist

The case for a better functioning securitisation market in the European UnionECB
Joint paper by ECB & BoE.

Waiting for the ECBBNP Paribas

FI & FX Strategy - Scandies through the lens of ECB actionNordea
In our view, the risk that ECB will disappoint markets in a meaningful way is limited and when a central bank is increasing the amount of stimulus it’s indeed difficult to end up with the conclusion that it will lead to negative market effects. However, things like negative deposit rates and QE is uncharted action in its nature and can nevertheless trigger flows and chain reactions in asset space that may not be ideal – particularly in the light of the past years one-sided action in risky assets and fixed income spread-over, and given the abnormally high directionality these different assets have exhibited…

Protecting European bank test data from lucrative leaksReuters
It would be an insider trader's dream to know ahead of time which of Europe's banks will fail or need more capital, and all that data will be stored somewhere in cyberspace as the ECB assesses the euro zone's top banks.

Yellen’s comms adviser: more press briefingsFT

Even The Fed Admits The "Natural" Rate Of Interest Is Lower Than Markets Are PricingZH
As BofA explains, the natural rate is unobservable and varies considerably over time.

Peterson’s Posen Argues in Favor of a Supercharged FedWSJ
As the Fed begins winding down its aggressive easy-money policies, at least one former central banker says it should consider acting more boldly to spur stronger economic growth.

Fed Ignores Policy Rules at Own Peril, Paper FindsWSJ
The U.S. economy fares best when the Federal Reserve adheres most closely to traditional policy rules, according to new research that suggests the recent period of unusually low interest rates may be doing more harm than good.

With Central Bank Balance Sheets, Big May Be BeautifulWSJ
The Fed's ability to pay interest on money that banks park at the central bank changes the dynamics of monetary policy permanently, and in a good way

On the Eurasian Customs Union AgreementEconospeak