Google Analytics

Monday, June 9

9th Jun - Still digesting ECB

Previously on MoreLiver’s:

Follow ‘MoreLiver’ on Twitter

Politics poses biggest risk to euro zone enduranceReuters
Widespread anti-EU protest votes in last month's European Parliament elections will make it harder for many governments to pursue deficit-cutting and structural economic reforms or to deepen the integration of the 18-nation euro area.

We need to talk about JunckerMacroScope / Reuters

Europe’s Delivery GapProject Syndicate
In the aftermath of the European Parliament election, Europe’s heavyweight national leaders are engaged in the usual horse-trading over who gets which EU positions. The much wiser approach would be to agree on policy priorities first and jobs later.

In Europe, Plugging the Black Market Into GDPWSJ

The ECB and SisyphusRobert Magnus
It won’t be finished unless it does QE

Euro needs the Fed, or QE, for the next leg downMacroScope / Reuters
The ECB’s efforts yielded little more than a lukewarm response from markets, suggesting that the only thing that will get the euro to fall any further in the very near-term is a change in the outlook for U.S. rates, and through that, a stronger dollar.

What the ECB Did and What it MeansMarc to Market

Thanks Draghi: Spanish 10 Year Yield Slides Below USZH

If Euro-Zone Yields Don’t Start Rising, PanicWSJ
Since current 10-year bond yields essentially represent the market’s view of what rates will be on average over the maturity of the bond, higher yields represent stronger expected growth and inflation.

Your post-Draghi carry tradeFT
With yield pick-up in the periphery of the Eurozone now virtually non-existent (why buy 2-year Spanish government paper when the equivalent US paper yields almost exactly the same), it seems reasonable to say that the days of the EUR as a carry trade target are long gone (although it still serves its purpose as a vehicle for reserve diversification).

Fed’s Bullard: Fed May Raise Rates Sooner Than Many Now ThinkWSJ

China property, structural faith editionFT

Theme for the Week Ahead: DigestionMarc to Market
After the ECB meeting, and the new initiatives it announced, coupled with the monthly cycle of PMI reports, and the US jobs data last week, investors will have time to digest the developments this week. The economic calendar is light, and the data is unlikely to impact policy expectations.

What Matters for Global Markets in the Week AheadWSJ

Central Bank DailyWSJ
Hilsenrath’s Take: Is the Fed Data Dependent and Does the Market Believe It? * China’s Central Bank is Prevailing in Policy Battles Over China’s Economic Future * Gov. Kuroda Minces Few Words on Past BOJ Mistakes * Jobs Data Intensify Fed Debate on Rate Hikes * ECB: Give Us Time to Let Actions Take Effect * Bank of Mexico Offers Surprise Rate Cut

The recovery of global goods demandFT
The rejuvenated growth in global goods demand since roughly the start of 2013, a favourable sign for industrial production.

Animal Spirits Subdued, but ThereMarc to Market

Elämä on ihanaaPauli Vahtera / IL
Pois hyvinvointiyhteiskunnasta kohti hyvän elämän yhteiskuntaa

"Jokainen velkaeuro on maksettava takaisin"TalSa
Vaikka talous kasvaa tahmeasti, Suomen ei pitäisi elvyttää velalla. Tätä mieltä on Nordea-pankin Suomen päävaluuttastrategi Jussi Hahtela.

Vielä EKP:n korkopolitiikastaRaha ja talous

Rikkaat ovat älykkäämpiä kuin köyhät – Miksi?HS

Vienti tökki edelleen huhtikuussaRoger Wessman

Kansantaloudellinen aikakauskirja 2/2014Taloustieteellinen yhdistys