Here are the ”best” from my posts of the ending week. Last
week’s edition here.
Previously on MoreLiver’s:
Special:
Post-ECB Views (updated!)
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EUROPE
The new European Commission: which president, and
what priorities? – CER
Interview with Marine Le Pen: 'I Don't Want this
European Soviet Union' – Spiegel
French right-wing populist Marine Le Pen discusses the
European election victory by her Front National, German dominance in the EU and
her admiration for Russian President Vladimir Putin.
Economic Outlook Nordics June 2014 – Nordea
The Nordic countries are still at various stages in the
economic cycle. Norway
and Sweden are
well under way, while Denmark
is only slowly ascending from the bottom. Finland
is hit by a renewed risk of ending up in a protracted economic recession.
EUROPEAN CENTRAL BANK
Breaking down the
TLTRO – FT
A reasonable boost for the periphery then even if net
additional liquidity (due to rollovers and LTRO repayments) is still an open
question and worries about the efficacy of the ECB’s own Funding for Lending
Scheme are likely to keep the boost minimal — AQR, capital concerns may keep
banks cautious, even if they wanted to lend away there is a demand and
deleveraging issue, while larger corporates have been heading to capital
markets at an increasing rate anyway.
Draghi Faces Off With
Regulators Over $2 Trillion Market for Tricky Debt – BB
Mario Draghi is on a collision course with regulators as he
seeks to revive Europe’s asset-backed debt market to
boost lending to businesses.
What Mario Draghi Did
Today: Goldman Sachs Explains – ZH
It is difficult to say with certainty at this stage what the
net effect of these different measures will be on lending and the economy. But
the ECB has clearly bought itself time before engaging in further measures. The
next step will be outright purchases of ABS, for which the “preparatory work
has been intensified”. There was no indication that the Governing Council was
moving closer to a large-scale asset programme, even though it was not ruled
out.
ECB tries to please
everyone, but fails – TradingFloor
The ECB tried to please everyone by deploying all of the
tools at its disposal with the exception of quantitative easing. Unfortunately,
the package leaves plenty of loose ends and unanswered questions.
ECB shows
activism but falls short of true QE – Bruegel
We welcome that the ECB has finally acted with a broad package.
We also think that unanimity on the package was a very positive development and
sends a strong signal of unity. We expect the package to have a positive
effect, however, it will take quite some time until inflation dynamics will
come back to where they should be and further measure will likely be needed. A
more aggressive QE (including €35bn purchases of ESM/EFSF/EIB bonds, corporate
bonds and ABS) would have anchored inflation expectations more quickly as
portfolio re-balancing and exchange rate channels would have operated
immediately.
Lithuania and the
ECB’s governing council – FT
If Lithuania’s
accession goes ahead, from January, only the members of the executive board,
which include ECB president Mario Draghi, will still be able to vote at each
meeting. Under the new system, the number of voters will be capped at 21,
meaning there will be four central bank governors at each meeting who do not
vote.
Draghi has yet to
banish the threat of deflation – FT
The acid test will be the path for inflation in coming
months…so one test of success lies with the performance of the euro in coming
months… As with 1990s Japan,
deflation remains a big risk partly because no one is prepared to admit it
could really happen.
FINNISH
Rehn: Suomen tilanne on vakava – TalSa
Talouskomissaarin
tehtävät pian jättävä Olli Rehn on huolissaan Suomen talouden tilasta. Hän
toivoo, että myös Suomessa pankit lisäävät yritysten luototusta Euroopan
keskuspankin eilisten toimien seurauksena.
Rinne: "Suomen taloustilanne ei ole erityisen
hyvä" – TalSa
Tänään
valtiovarainministeriksi virallisesti nimitetty Antti Rinne (sd.) keskittyy
noin kymmenen kuukauden kautensa aikana Suomen työllisyyden parantamiseen.
Miten keskuspankin rahoitusoperaatiot tehoavat – Roger
Wessman
EKP ja toimenpiteet – liian vähän ja liian myöhään – Tyhmyri