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EUROPE
Politics poses biggest risk to euro zone
endurance – Reuters
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 Juncker – MacroScope
/ Reuters
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.
EUROPEAN
CENTRAL BANK
The ECB and Sisyphus – Robert
Magnus
It won’t be finished
unless it does QE
Euro needs the Fed, or QE, for the next leg
down – MacroScope
/ 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 Means – Marc
to Market
Thanks Draghi: Spanish 10 Year Yield Slides
Below US – ZH
If Euro-Zone Yields Don’t Start Rising, Panic – WSJ
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 trade – FT
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).
UNITED STATES
Fed’s Bullard: Fed May Raise Rates Sooner Than
Many Now Think – WSJ
ASIA
OTHER
Theme for the Week Ahead: Digestion – Marc
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
Ahead – WSJ
Central Bank Daily – WSJ
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 demand – FT
The rejuvenated growth
in global goods demand since roughly the start of 2013, a favourable sign for
industrial production.
Animal Spirits Subdued, but There – Marc
to Market
FINNISH
Elämä
on ihanaa – Pauli
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 korkopolitiikasta – Raha
ja talous
Rikkaat
ovat älykkäämpiä kuin köyhät – Miksi? – HS
Vienti
tökki edelleen huhtikuussa – Roger
Wessman
Kansantaloudellinen
aikakauskirja 2/2014 – Taloustieteellinen
yhdistys