EUROPE
Parallel Currency - Revisiting Justified? – Klaus
Kastner
Before
the introduction of the Euro, every country had a parallel currency. It was
called 'local currency'.
Spain snap elections in sight – Pictet
Political instability in
Spain has added to turmoil in peripheral euro area countries.
EUROPEAN CENTRAL BANK
ECB's Whatever-It-Takes
Toolbox Means Italy Has to Blink First – BB
The ECB of 2018 is far more powerful than in the 2012 crisis * Central
bank’s biggest backstop tool comes with conditions
European Lenders Brace
for Change at the ECB – BB
SSM chair and vice chair are among departures at start of 2019 * Shakeup
comes just as supervisors have to deal with Brexit
ITALY
Editorial: What Europe Should Do About Italy – BB
The EU needs to show flexibility and restraint.
Italy's Establishment
Faces Populist Push With No Champion – BB
League, Five Star are polling close to combined 60 percent * Pro-European
parties are in retreat since March’s election
Commentary: The EU’s
Italian nightmare – Reuters
Politicians push for
July election as Italy seeks exit from crisis – Reuters
The Italian market panic - drivers and near-term outlook – Danske Bank
The Italian bond
sell-off reached unprecedented levels yesterday and is starting to have
significant global ramifications as we saw during the euro debt crisis in
2012.
Jan von Gerich: Loss of market access would have
dire consequences – Nordea
A loss of market access
would force Italy to ask for outside help or start printing its own currency.
Both would be very problematic scenarios. In any case, Euro-area break-up fears
would balloon and markets would go into a crisis mode.
Italy Bonds Pass Auction Test in a Sign of
Easing Market Jitters – BB
Both five- and 10-year
sales oversubscribed, but pricing mixed * Political risk is still a ‘thick
fog:’ ADM Investor Services
Italy Needed a Bond
Victory. It Got a Whimper –
BB
Wednesday’s auction was
at best a mixed bag.
FAQ: What
Happened to Rome? – Marc Chandler
Lucrezia Reichlin: What Italy’s Crisis Means for
Europe – Project
Syndicate
Though Euroskeptics have failed to form a new Italian government, both Italy and the European Union are entering a new phase of deep uncertainty. In the absence of a robust growth agenda that addresses Italy's structural economic weaknesses, another euro crisis could be in the offing – and this one would be far worse than the last.
Though Euroskeptics have failed to form a new Italian government, both Italy and the European Union are entering a new phase of deep uncertainty. In the absence of a robust growth agenda that addresses Italy's structural economic weaknesses, another euro crisis could be in the offing – and this one would be far worse than the last.
Italy Heads for Confrontation with Itself,
Financial Markets, and Europe – PIIE
President Sergio
Mattarella has put Italy on a path of political confrontation domestically and
most likely with financial markets and the rest of Europe.
Italian debt under fire – Pictet
Risk of contagion from
the volatile Italian bond market leading us to become bearish on euro
peripheral debt.
PIMCO: Short Italian Bonds, ECB Sees "No
Need" To Intervene In Italy – ZH
Euro Spikes, Italian Yields Slide After 5-Star
Calls On Savona To Withdraw Candidacy – ZH
For Italian Bonds, These Are The 12 Charts That
Matter The Most – ZH
Goldman Admits It Has No Idea What Happens Next
In Italy – ZH
OTHER
The Euro: Only as strong
as its weakest link – ING
The Italian political crisis has heaped more pressure on EUR/USD and has
re-introduced the topic of a Eurozone crisis onto the FX risk map. While we
cannot now rule out EUR/USD falling to the 1.10/12 area this summer, we would
say that current EUR pricing already includes a substantial 4% political risk
premium
REGULARS
EU Open Rundown – RANsquawk
Market Briefing: Daily
Markets Overview – Yardeni
Research
FirstFT Daily Briefing – FT
Italy crisis, trade war rebooted, Sorrell’s return
WSJ City – WSJ
The Early Winner from Italy’s Political Chaos, U.S. Jeopardizes Trade
Talks with China
WSJ Economics – WSJ
U.S. Threatens Tariffs, Italy Rattles Markets
“Best of the web” daily
charts – Lukas
Daalder
Danske Daily – Danske
Bank
Daily Market Comment – Marc
Chandler
Italian Reprieve, Euro Bounces, Trade Tensions Rise
Brussels Playbook – Politico
Budget scoop — Oettinger unleashed — Parliament’s (rap) battle
Five Things You Need to
Know to Start Your Day – BB
US Open – ZH
Global Stocks, US Futures Rebound As Italian Bond Panic Eases; Euro Jumps
FINNISH
Aamukatsaus – Nordea
Italian korot
rajussa nousussa, Saksan korot laskivat, pörssit punaisella | Espanjan ja
Saksan inflaatioluvut luovat tunnelmia euroalueen inflaatiolle | Euro heikentyi
dollaria vastaan