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EUROPE
EU's
Juncker plays down Greek debt writeoff option – Reuters
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 run
– Europp
/ LSE
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 monitor
– Danske
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
EUROPEAN CENTRAL BANK
Article
123.1 and the ECB –
Mainly
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 bending – TradingFloor
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 boat – Nordea
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 cancel – Danske
Bank
ECB’s
fingers crossed for private loans growth – Reuters
BANCO ESPIRITO SANTO / PORTUGAL
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
UKRAINE / RUSSIA
Russia
Sanctions Extract Their Pound of Flesh – from Germany – Wolf
Street
Watching
the Eclipse – The 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
OTHER
Daily
Macro – WSJ
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 Banks – WSJ
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 economy – TradingFloor
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' War – TradingFloor
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
FINNISH
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
talouskriisistä – YLE
Sixten Korkman ja Ylen verkkojournalismi – Raha
ja Talous