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Monday, August 4

4th Aug - After sell-off, central bank week

Previously on MoreLiver’s:

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EU's Juncker plays down Greek debt writeoff optionReuters
Incoming European Commission president Jean-Claude Juncker, on a visit to Athens on Monday, played down the prospect of eurozone countries writing off part of Greek debt to make the country's debt sustainable.

Excluding the growing camp of Eurosceptics from the EU’s corridors of power could prove fatal in the long runEuropp / LSE

Will Europe's banking "big bang" loosen lending?Reuters
It is not clear that the ECB exercise, involving a rigorous review of 131 banks' assets and liabilities and a tough test of their ability to withstand economic shocks, will be sufficient to get more credit flowing into the "real economy".

Euro area macro monitorDanske Bank
A significant headwind to the ongoing euro area recovery has been very weak bank lending but the latest figures for lending together with the ECB's Bank Lending Survey (BLS) provided encouraging news for the economy.

Former Buba Head: EU officials knew eurozone was not economically necessary, done for “psychological reasons”Craig Willy

Article 123.1 and the ECBMainly Macro
Perhaps the perceived need to outlaw inflation using the constitution or by treaty is an attempt to solve a problem of the past, which is stopping us dealing with the problems of today.

Mario's magical J-Curve may take a long time bendingTradingFloor
Stephen Pope: The ECB believes its rate decision will cause an inflationary J-Curve * Unexpected changes in spending can lead to supply chain problems * CPI continues to drop - Draghi should have acted sooner

ECB preview: Draghi unlikely to rock the boatNordea
No new measures or monetary policy signals should be expected from the ECB at the August meeting as the threshold for further near-term easing is very high. The message is not set to move long yields from the record-low levels, while the ECB should be happy with a further weakening of the euro.       

ECB Preview: A meeting Draghi would have liked to cancelDanske Bank

ECB’s fingers crossed for private loans growthReuters

How to rip off a bank, Espí­rito Santo style – Pieria
BES — the resolution – FT
BES To Be Bailed Out, Existing Equity To Be Wiped Out – ZH
Potential Double Blow for Investors in Banco Espirito Santo Mess – WSJ
Banco Espirito Santo Junior Bonds Slide as Bailout Forces Losses – BB
Portugal in $6.6 billion rescue of Banco Espirito Santo – Reuters
Are Portuguese banking troubles a hint of something bigger? – Nordea
BES Wasn't A Systemic Problem, Rather A Specific And Local One – Forbes
Five Things to Know About Espirito Santo International – WSJ
Espirito Santo Junior Debt Plummets As CDS Trigger May Be Avoided – ZH

Russia Sanctions Extract Their Pound of Flesh – from Germany – Wolf Street

Watching the EclipseThe New Yorker
Ambassador Michael McFaul was there when the promise of democracy came to Russia—and when it

Industrial producer prices up by 0.1% in both euro area and EU28 – Eurostat

Daily MacroWSJ
After last week’s rout in the world’s stock markets, the question for investors is whether the disruption reflected an overdue correction or something more problematic. Friday’s jobs report should have been a welcome reading for markets, showing continued strength in the labor market but not enough to force the Federal Reserve to accelerate its exit from zero interest rates. The fact that the market continued the selloff, however, could suggest that investors are nonetheless sensing that the end of the easy-money period is coming to a close.

Daily Central BanksWSJ
Hilsenrath’s Take: Test Approaches for Yellen’s Nerves and Judgment * Bank of Portugal Unveils Plan to Rescue Banco Espírito Santo * Hiring Settles Into Steady Gains * Five Things to Watch on the U.S. Economic Calendar * European Central Bank Picked Tough Time to Diet

Manufacturing spearheads stronger global economyTradingFloor
The global economy looks set for an upshift in gear from modest growth of around 2 percent in the first half of the year to closer to 3 percent in the second half. That is still only moderate growth in a historical context but stronger growth, nonetheless.

Investment Outlook: From the First World War to the Thirty Years' WarTradingFloor
Teis Knuthsen: First World War continues to cast shadow on geopolitics, and markets * High-yield corporate bonds probably most vulnerable asset class * Political tensions considerable, but global economic impact likely still modest

Everything you need to know about Argentina’s weird defaultWaPo

US Equities Tumble - Give Up All "Europe Is Saved" GainsZH

Eviva España!Roger Wessman
Espanjan talouskasvu on kiihtynyt vahvimpaan vauhtiin kuuteen vuoteen. Toipuminen vaikuttaa olevan kestävällä pohjalla kun jo toista vuotta vankasti kasvanut vienti vetää kotimaista kysyntää ylös.

Äänekäs oppositio haastaa perinteiset selviytymisopit talouskriisistäYLE

Sixten Korkman ja Ylen verkkojournalismiRaha ja Talous