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EUROPE
Politics May Have Helped Create Europe's
Sovereign-Bank Loop of Doom
– BB
ECB bought German bonds
with a maturity of 10.5 years in July due to the flat German curve and bonds
being scarce. Scarcity problems indicate that ECB will hit its restrictions
early next year so technical changes to the programme will come. We discuss
such options for a full implementation and not a fundamental ECB view in the
following note. The split German curve will steepen on the changes, maybe
already in September, so we like entering into conditional steepener trades.
UNITED
KINGDOM
The UK searches for a
post-Brexit plan: is the EEA a viable option? – Open Europe
The UK’s new trade
priorities – vox
UK should be offered
tough Brexit terms by EU: survey – Politico
BANK OF
ENGLAND
BOE Preview, And A Look
At What UK Corporate Bond QE Will Look Like – ZH
BOE Cuts Rate to 0.25%
With More QE to Fight Brexit Fallout – BB
Pound Slides as BOE Cuts
Rate for 1st Time Since 2009, Boosts QE – BB
BOE cuts 0.25% to 0.25%,
boosts QE £60 bn – ZH
Pound Plummets, Gilt
Yields Crash To All Time Low After BOE – ZH
Bank of England cuts
interest rates, unveils new stimulus package – Politico
Carney Gets Ahead of
Market Expectations; Sterling Slumps, Gilts Soar – Marc
Chandler
Bank of England
Delivers, But Investors Are into Fiscal Policy Now – WSJ
BoE brings out the
sledge hammer after Brexit vote – Nordea
BoE cuts rates, expands
asset purchases. To what end? – Pictet
BoE review: easing
package, more to follow in November – Danske
Bank
Mark Gilbert: BoE
Delivers. What's Next? – View
/ BB
Analysts Think the
Plunge in Sterling is Only Just Beginning – WSJ
Re-calibrating our
thinking about Brexit after MPC rate cut – Edward
Harrison
Editorial: The Bank of
England's Stitch in Time – View
/ BB
How the BOE’s New
Facility Is Basically a Helping Hand for Banks – WSJ
UNITED STATES
Preview of July
Employment Report – Bill McBride
Preview: US labour
market still holding up well? – Nordea
REGULARS
All eyes on BoE easing,
mixed PMIs, stronger USD * Euro-area PMIs show more resilience
A cut of 25bp cut and QE
expansion from BoE will set the tone in FX and rates markets today
Shares recovered in Asia
on a rally in crude prices and some overnight yen weakness that saw USDJPY
recover from around the 100.85 level back to range highs at 101.60. Today's
focus is on the Bank of England where the first rate cut since 2009 is expected
as a post-Brexit relief measure.
Euro wrap-up – Daiwa
The BOE Owns Today, but
Tomorrow is a Different Story
The resistible force
meets the movable object
YouGov poll: No evidence
of regrets after Brexit vote * Bank of England expected to cut rates today in
response to Brexit * May set to host roundtable with small business leaders to
discuss response to Brexit * Banks in no rush to move staff out of the UK * Austrian
Chancellor urges EU to abandon membership talks with Turkey * Bundesbank chief
warns against big changes to ECB bond-buying, sees little impact from Brexit on
Eurozone * Bank of Italy chief seeks to allay concerns over Italian banks
5Stars for Italy —
German bailout — Facebook EU cash fight
S&P Futures Flat As
Europe, Asia Lifted By Banks, Yen; All Eyes On The Bank Of England
Frontrunning – ZH
The Bank of England is
widely expected to cut rates by 0.25% and announce details of an asset purchse
programme. According to rumours it could be around 75bn GBP.
FINNISH
Muhiiko USA:n
rahamarkkinoilla uusi kriisi? * Englannin keskuspankki luo luottamusta * USA:n
palvelusektorin luottamus jäi hieman odotuksista * Euroalueen lopullinen
ostopäällikköindeksi oli alustavaa korkeampi, Britannian matalampi
Valvoja suomii
paitsi IMF:n kykyä ennakoida ongelmia, myös tavat selvittää niitä… EU:ltakin
soisi samanlaista itsereflektiota. Toistaiseksi sitä ei ole eurokriisin
hoidosta näkynyt.