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Wednesday, August 26

26th Aug - ECB and Fed talking dovish

Previously on MoreLiver’s:

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French minister highlights that Treaty change is in the airOpen Europe
French Economy Minister Emmanuel Macron is speaking openly about changing the EU Treaties to achieve further Eurozone integration. This is good news for David Cameron's EU renegotiation push, as France has historically been wary of Treaty change - but the diverging timelines remain an issue.


Fed’s Dudley cools September liftoff talk FT
Fed's Dudley Says Decision on September Liftoff Less Compelling BB

Dudley Puts The Kibosh On SeptemberTim Duy
The Fed has long argued that the timing of the first rate hike does not matter. I had thought so as well, but that is clearly no longer the case. A rate hike during a period of substantial financial market turmoil would matter a great deal. It looks like the Fed's plans to raise rate will once again be overtaken by events.

Strong capital spending plans boost growth outlookReuters

5 Things the U.S. GDP Report May Tell Us About What’s NextWSJ

5 Things Asian Economies Learned From 1997-98 Financial Crisis – WSJ

Bottoming ProcessShort Side of Long 
The number of NYSE 52 week new lows jumped to 1342 during Monday * At its highest high, VIX index spiked into the capitulation zone * As VIX Index spikes the bottoming process can take anywhere from 1 to 4 months
Morning MoneyBeat AsiaWSJ
Brutal Late Selloff Erases U.S. Stock Rally

Morning MoneyBeat EuropeWSJ
Stocks Markets Continue to Struggle

Morning MoneyBeat USWSJ
Strategist Targets Come Down

Danske DailyDanske Bank

Global Daily – ECB & Fed shifting on turmoilABN AMRO
Officials from ECB and Fed point to shifting stance following market turmoil * ECB Chief Economist Praet opens the door to a more QE as soon as September * NY Fed President Dudley strikes cautious tone on September rate hike

Euro rates updateNordea

Weaker stocks and weaker bonds amidst QE4 talk * Good news from Germany and China * Bond yield soars, eradicating latest bout of China volatility * EUR/USD continues to be affected by gyrations of risk appetite

Morning MarketsTF
A relief rally and bargain-hunting bonanza that sent US equities sharply higher on the opening yesterday evaporated soon afterwards as fear about China's ability to manage its economy seeped back into the market. The upshot? Jitters and unease spilled over into Asia and stocks across the region gyrated from positive to negative territory through the session.

Daily FX CommentMarc Chandler
Three-D North American Session

Daily ShotTF
The PBoC's rate-and-RRR cuts will have the effect of injecting $100 billion into the country's markets, but investors remain fearful of a hard landing. Meanwhile, the emerging markets rout is shattering the Brazilian and Colombian currencies, as well as coffee prices.

Daily Press SummaryOpen Europe
French Economy Minister: Treaty change “just a matter of timing” * Hungary considers sending in army as UN expects 3,000 migrants to arrive in Balkans daily * Greek caretaker government set to be appointed on Friday as country moves to fresh elections * Duda: Poland should aim to attract back migrants from the UK and Germany * Merkel sees poll support slip after pushing through third Greek bailout

Brussels PlaybookPolitico
Macron-economics — Immigration black list — Back in the U.S.S… err

Here We Go Again: US Equities Surge Even As Chinese Stock Market Rollercoaster Tumbles To 8 Month Low


FX UpdateTF
The ugly close in the US equity session failed to see EURUSD moving out of the recent range, suggesting perhaps that the “safe haven” bid for the euro may be weakening somewhat, but the euro and yen will likely head higher still if this risk sentiment rout extends from here.

From the FloorTF
The breakdown of correlations is something we are getting used to but the collapse of the inverse relationship that so often defines core bonds and equities is a particularly alarming one. What's next?

Aamukatsaus Nordea
Ruplan kiinalainen kidutus jatkuu - Kiinan keskuspankki keventää rahapolitiikkaansa * Saksan talouselämän luottamus odotettua vahvempaa * Koroissa huomattavaa nousua eilen 

Vähittäiskaupan pikaennakko: heinäk. -0,3% YoY – Tilastokeskus