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Monday, January 8

8th Jan - European barometer to post-2000 highs





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EUROPE
Merkel at bay…Social Democrats to set high coalition price – The Guardian
German chancellor faces hard talks with centre-left on Sunday to secure fourth term, but rightwingers may cause trouble

John Lloyd: There’s a better way to unite Europe – Reuters
The European political year, grinding back into gear for 2018, is full of doubt, even woe. In the continent’s major countries politics are stuck, or likely to stick, in cul-de-sacs from which exit is difficult. Only in France, under the banner not so much of the tricolor as the injunction En Marche! (Let’s Go!), is there official optimism and vigor.

The Eurozone: Going into overdrive – ING
Recovery seems to be going into overdrive - for how long can that continue? * Eurozone indicators close to historical highs * The political conundrum * Growth momentum and solid base effects

Nordic Outlook – Danske Bank
Denmark: Growth running at 2%, with risks more towards overheating than the opposite * Sweden:  Housing investment will no longer ensure high growth * Norway: Oil investments set to drive growth as housing investment slows * Finland: Growth set to slow a little but remain high.

Euro-Area Economic Confidence Soars to Nearly Two-Decade High – BB
Index rose to 116 in December, forecast was for 114.8 * 2017 economic growth set to have been strongest in a decade


UNITED STATES
Macro: Home Sales, Retail Sales and Manufacturing Surge Higher – The Fat Pitch
The macro data from the past month continues to mostly point to positive growth. On balance, the evidence suggests the imminent onset of a recession is unlikely.

Republicans, Democrats Far Apart on Deal as Shutdown Clock Ticks – BB
Less than two weeks remain to work out agreement on spending * Immigration, budget caps are two major issues unresolved

Bannon’s Olive Branch Too Late for Angry Trump – BB
Fallout continues from book portraying White House dysfunction * Trump gives aides a choice: you’re with Bannon, or with me

El-Erian: U.S. Needs a Well-Designed Infrastructure Plan – BB
The question isn't the economic or financial desirability of such a program, but its political feasibility.


  MARKETS / OTHER
Monthly Economic Update: The growing inflation puzzle – ING
The financial markets have started 2018 where they left off in 2017. Manifold geopolitical risks continue to be treated as background noise, and a stream of mildly positive growth surprises continue to keep asset prices buoyant. In our view, forecasters may still be underestimating the upswing, in which case a bigger threat to the markets’ mood may come from inflation. 2018 may give some answers to the puzzle as to why inflation hasn’t already stirred.

Five macro themes for 2018 –
Danske Bank
Robust global recovery continues * Inflation to stay subdued * The (long) road to monetary policy ‘normalisation’ * Political risks to remain in check * China the main downside risk to global growth

U.S. Equity Melt-Up Already Obliterating Analysts' 2018 Targets – BB
Equity Euphoria Grips the Entire World – BB

I Can't Shake This Feeling....More on USD/JPY – Macro Man


REGULARS
FirstFT Daily Briefing – FT
UK cabinet reshuffle, Iran’s English ban, PwC’s drones unit

WSJ City – WSJ
U.K. Companies Tighten Belts, Apple Investors Question Social Responsibility

“Best of the web” daily charts – Lukas Daalder

Danske Daily – Danske Bank
We are heading for a quieter week in terms of data where inflation takes centre stage after activity numbers were in the spotlight last week.

Daily Market Comment – Marc Chandler
Dollar Posts Modest Upticks to Start the New Week

Brussels Playbook – Politico
Barnier meets Farage — EU budget battle begins — Peter Sutherland dead at 71

Five Things You Need to Know to Start Your Day – BB
https://www.bloomberg.com/authors/ARIYqLnEHrg/lorcan-roche-kelly

US Open – ZH
Euphoria Sends Global Stocks To New Record Highs, Korean Won Boosts Dollar With Overnight Fireworks

Frontrunning – ZH


FINNISH
Aamukatsaus – Nordea
Tällä viikolla huomio kohdistuu inflaatiolukuihin | USA:n työmarkkinaraportti oli hieman odotuksia heikompi | Tänään ei ole tulossa merkittäviä datajulkistuksia
  
Teemu Muhonen: Suomalaisista ei ole tullut työn karttelijoita – TalSa
Hallitus patistelee työttömiä töihin, vaikka työllisyysaste on jo lähellä huippulukemiaan. Ongelma ei ole suomalaisten laiskistuminen vaan ikääntyminen.