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Wednesday, September 21

21st Sep - BoJ did little, Fed nothing

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Why Europe secretly roots for Donald Trump Politico
As long as moderate politicians like Obama or Clinton occupy the White House, anti-American politicians will find it difficult to turn their rhetoric into reality. A Trump presidency would force a rethink.

Europeans Fear Wave of Refugees Will Mean More Terrorism, Fewer JobsPEW
Sharp ideological divides across EU on views about minorities, diversity and national identity

Inside the Pipeline That Transfers 2.7 Billion Euros a MinuteBB
In the run up to the 2012 crisis, TARGET2 balances were useful in giving an indication of where reliance on ECB liquidity was highest. Since the ECB's Asset Purchase Program began, all they are telling us is where bondholders prefer to bank.

Austerity Only Benefits Germany and Destroys Europe, Renzi SaysBB
Italian Prime Minister blasted EU budget rules from New York * Renzi’s tough language comes as Italian economy, banks falter

Handelsblatt: Deutsche Bank May Ultimately Need A State Bailout ZH

BOE to Cut Rates Again as Economists See Sharp Slowdown in 2017 – BB
Brexit & financial markets: 5 lessons learnt 3 months from the vote – FT
Would a Swiss-EU compromise on free movement appeal to Britain? – Open Europe

Five Charts Show Fed Should Stand Pat on Rates – View / BB
Three Steps to a ‘Cautiously Hawkish’ Fed, and a December Hike – WSJ
Policy statement – FED
Note on policy implementation – FED
Economic projections – FED
Statement change tracker – WSJ
3 Presidents Dissent As Fed "Decides To Wait For Further Evidence" – ZH
Fed Sees 3 Hikes Thru End Of 2017; Cuts Long-Run US GDP Potential – ZH
Economists React: ‘One of the Most Divisive FOMC Meetings’ – WSJ
See Markets React to the Fed in 7 Charts – WSJ
Fed’s ‘Dot Plot’ Suggests Slower Rate Rise Path Ahead – WSJ
Redacted Version of the FOMC Statement – David Merkel

Noah Smith: Monetarists Are Out of IdeasView / BB
Existing policies don't boost growth, but no one seems willing to try something different.

The Way the World Thinks About Easy Monetary Policy Is ChangingBB
The side effects of quantitative easing are under fresh scrutiny.

Editorial: If You Don't Want Refugees, Invest in PeaceView / BB
Conflicts are driving the number of displaced people to new records.

Silicon Valley’s Secrets Are Hiding in Marc Andreessen’s LibraryWired

Bank of Japan offers forward guidance but little else – TF
QE Pace maintained With "Yield Curve Control", Rates Unchanged – ZH
Japanese banks apparently like a policy aimed at helping them out – FT
BOJ Shifts Policy Framework to Targeting Japan’s Yield Curve – BB
[video] Breaking Down the BOJ's Policy Decision – BB
BoJ: New policy framework with yield curve control – Nordea
BoJ delivers no new stimulus – ABN AMRO
BoJ review - new framework but no easing – Danske Bank
The BOJ in a nutshell – Marco Man
FX & Bond Markets Ain't Buying What BOJ Is Selling – ZH
Can the BOJ Have Its Cake and Eat It Too? – WSJ
BoJ launches new form of policy easing – FT
Bank of Japan criticized for behaving like ‘control freaks’ – CNBC
Yen Surges Against Dollar as BOJ Boost Runs Out of Steam – WSJ
BoJ turns towards yield-curve control – Pictet
Why the BOJ policy move (mostly) lacked credibility – Scott Sumner
Ben Bernanke: The latest from the Bank of Japan – Brookings
El-Erian: BoJ Experiments at the Wrong Time – View / BB

Danske DailyDanske Bank

BoJ disappointment; Fed meeting tonight; Yellen to opt for a Dec hike

Morning MarketsTF
The first of today's twin central bank policy meetings is done and dusted and equities globally are rallying in response to the Bank of Japan's decision to keep interest rates steady retain the quantitative easing magnitude up the effort to hit its 2% inflation target and aim to steepen the yield curve.

Euro wrap-upDaiwa

Daily Market CommentMarc Chandler
BOJ Eases Self-Imposed Restrictions, but Can't Weaken the Yen

Daily Market CommentMacro Man
Brother, can you spare a loan?

Daily Press SummaryOpen Europe

Brussels PlaybookPolitico

Global Stocks Rise After "Disappointing" BOJ Announcement: All Eyes On Janet Yellen


FX UpdateTF
Yen crosses pumped higher on the BoJ announcement before quickly heading back to unchanged. That might be because of the conflicting implications of the Bank of Japan’s statement and policy assessment for the short-term expectations versus the longer term-implications.

From the Floor TF
One of this week's two major central bank outings is now behind us with the Bank of Japan releasing its latest monetary policy statement in the late Tokyo session. The BoJ maintained its minus 10 basis point rate stance and targeted the yield curve sending the yen lower and financial-sector stocks up by over 5%.

Japanin keskuspankki keskittyy nyt valtionlainakoron säätelyyn * Emme usko Fedin nostavan ohjauskorkoon tänä iltana * Tänään julkaistaan Riksbankin syyskuun kokouksen kokouspöytäkirja

Jan Hurri: Protestiaallon pelko – ennemmin elvytystä ja velkaa kuin kapinaTalSa
Euroeliitti pelkää populismin nousua ja kansan kapinointia enemmän kuin valtioiden velkaantumista. Siksi Euroopan talousvyö alkaa seuraavaksi löystyä.

Paradoksaalinen TrumpWille Rydman

Japani määrätavoitteesta korkotavoitteeseenRoger Wessman

EU-maiden yhteinen emämunaus ajaa koko maanosaa kaaokseenMTV
Jo toiset osavaltiovaalit hävinnyt Angela Merkel myönsi lopulta omat virheensä pakolaispolitiikassa. Perustava laiminlyönti menee kuitenkin koko EU:n piikkiin ja siitä maksetaan kallista hintaa vielä pitkään – myös Suomessa.