Follow ‘MoreLiver’ on Twitter
EUROPE
The UK’s vote to leave
the EU can mean a lot for the ECB. A deterioration of the economic outlook
could warrant more easing at some point but more immediately, the decline in
bond yields makes the current purchasing targets impossible to achieve. We
expect no new policy measures from the meeting on 21 July but we look for hints
about how the ECB might tweak the QE parameters. Another headache for the ECB
are the reborn worries over the health of the banking system.
This Bundless world facing the ECB – FT
ECB’s purchase
programmes are running out of bonds to buy. Here’s what could be done.
UNITED
KINGDOM
Everything you need to
know about Theresa May’s new cabinet – Politico
Brussels Briefing: The
Brexit Team – FT
The Case for Muddling
Through Brexit – Project Syndicate
Carney Opens Lehman
Playbook at Bank of England – BB
BOE Surprises by Doing
Nothing, but Tips August Action – Marc Chandler
Sterling Jumps As Bank
Of England Disappoints – ZH
BoE to ease aggressively
in August – ABN AMRO
Pound Surges as BOE
Holds Policy in First Decision Since Brexit – BB
Bank of England Signals
August Stimulus as Rate Kept at 0.5% - BB
BoE surprises markets by
keeping rates on hold, signals August move – Reuters
Bank of England holds
rates despite Brexit concerns – FT
U.K.'s Outlook Has
Changed. The BoE Hasn't (Yet) – View / BB
REGULARS
Equities flat, oil and bond yields
lower ahead of BoE * BoE: some easing now, and some later
25bp cut for today priced in – yet
not certain * No change from BoE to strengthen GBP
Europe's leading bourses are
expected to open narrowly mixed today on the heels of a cautious Asian session
with the focus firmly fixed on the land of Brexit as Britain wakes to the first
full day in office of its second ever female prime minister.
Euro wrap-up
– Daiwa
Will BOE Ease on May Day?
The dream team
Markets. Where physics meets
psychology
Theresa May appoints senior Leave
campaigners to key Cabinet posts, tells European leaders UK “needs some time”
to prepare for EU exit talks * New poll finds public believes maintaining
single market access should be priority in Brexit talks * Bundesbank warns UK
is likely to lose ability to clear euros in the medium term * Economists for
Brexit call for unilateral free trade and points-based immigration system in
response to leaving the EU * German Defence Minister says Brexit is opportunity
to integrate EU military cooperation * Labour leadership challenger: UK public
should get vote on EU exit deal * Bank of England expected to cut rates to
0.25% in response to Brexit * Spain makes one last bid to avoid EU fine for
excessive deficit * Concern over large international banks being overly
pessimistic in wake of Brexit * Brexit seen exacerbating existing slowdown in
housing demand * New figures: Over two million migrants came to Germany in 2015
* Commission unveils EU asylum reform proposals with cash incentive for
resettling refugees * France calls on Barroso to ditch job at Goldman Sachs * China-EU
summit focused on market economy status and steel issues
Commission power matrix — Promo for
BoJo — CoiffeurGate
US Futures, Global Markets Storm
Higher As More Details Emerge About Japan's "Helicopter Money"
The Bank of England is likely to cut
rates today and to hint that it will do anything necessary to support the
economy after the Brexit shock. Elsewhere the kiwi is on the ropes as AUDNZD and
NZDUSD show signs of reversing.
The yen continues its downward
course as Tokyo mulls its stimulus options including a perpetual bond issue.
Meanwhile expectations for Apple's quarterly earnings are faltering as signs of
a continued slowdown emerge.
FINNISH
Englannin
keskuspankki keventää tänään rahapolitiikkaa * Kiinan pankkisektorin ongelmat
vielä hoidettavissa * Teollisuustuotanto supistui euroalueella odotettua
enemmän * Kiinan toisen neljänneksen BKT-luvut julkaistaan aikaisin perjantaina