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Saturday, October 4

4th Oct - W/E: Best of the Week

Here are the best picks from my ending week’s posts. Previous “best of” here.

Previously on MoreLiver’s:

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Europe's rebalancing is not borne by EuropeThe Economist
The evolution of current account imbalances since the recession: China and Europe have traded places.

Who likes European bonds?FT
Even though European banks were endangered by their significant holdings of sovereign debt, their portfolios were relatively less exposed compared to pensions, insurers, and foreigners.

Guide to Banking Supervision Sep 2014ECB

Germany Fights to Keep The Euro Zone TogetherEconmatters
The European Court of Justice announced Sept. 22 that hearings in the case against the ECB’s OMT-programme will begin Oct. 14. Though the process is likely to be lengthy, with a judgment not due until mid-2015, the ruling will have serious implications for Germany's relationship with the rest of the eurozone.

ECB to wait until December as Draghi buys timeTradingFloor
ECB provided details on the ABS and covered bond purchase programmes but markets were hoping to hear more. The lack of reaction to recent bad data and the limited success of the ECB's action suggests that bad news will be ignored once more. By the end of the fourth quarter, the ECB and Germany cannot continue pretending that everything is working out just fine.

Can Europe’s mini-QE save it from a lost decade?WaPo
The ECB, in effect, is becoming the lender-of-last-resort to the real economy. That's because, with one hand, the ECB is giving banks basically free money if they promise to lend it out, and, with the other, it's buying up their new loans.

Mario Draghi's QE: too little for markets, too much for GermanyThe Telegraph
Mario Draghi, the ECB’s president, seemed unable to secure backing for his €1 trillion stimulus plan from Germany

Everybody was umbrella fighting...Humble Student
In my last two posts, I highlighted the rising tail-risk from the protests in Hong Kong (see The Big Kahuna Korrection, or buy Yom Kippur? and HK tail-risk is rising). While the markets focuses on the actions of the ECB and the US Employment report this week, the risk of the derailment of one of the three key engines of global growth, namely China, is heightened.

'Umbrella Revolution' forces China to confront limitsReuters
Leaders in Hong Kong need to contain the campaign for democracy without the tools employed on the mainland to suppress dissent, including sweeping powers of arrest, indefinite detention, compliant courts and a controlled media.

EU:n talous ja keskinäisriippuvuuden aikaBrysselin kone / YLE
Suomen Pankin johtokunnan neuvonantaja Antti Suvanto keskustelee mm. siitä miten hyvin euro toimii, mitä keinoja on olemassa euroalueen talouden nykyisten ongelmien hoitamiseksi. Lisäksi hän puhuu siitä, uhkaako EU aluetta deflaatio ja jos uhkaa, niin miten vakava ongelma se on.

EKP:n tehokasta toimintaa tuskin tuleeTyhmyri
Saksan sisäpolitiikka estää EKP:n toimet
Työttömyysdevalvaatio – Suomi tienhaarassa Anders Ekholm / Libera
"Jos näin jatketaan, luvassa on massatyöttömyys" – TalSa

Venäjä: uhka vai mahdollisuus?Suomen Perusta
Suomen Perusta -ajatuspajan kirjassa tarkastellaan Venäjää sekä merkittävänä kauppakumppanina että mahdollisena turvallisuuspoliittisena uhkana.

Valtiovarainministeriön tulevaisuuskatsaus 2014VM
Vakaa ja tehokas Suomi yhdentyvässä Euroopassa

VM: Rahaliitto vie jäsenmaiden päätösvaltaaTalSa
Valtiovarainministeriö varoittaa Euroopan rahaliiton kehittämisen vievän talouspoliittista päätösvaltaa sen jäsenmailta.