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Thursday, June 7

6th June - ECB comes to focus




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EUROPE
The turnaround of the Portuguese economy: Two decades of structural changesvoxeu

Aaron Brown: Deutsche Bank's Future Is More Fannie Mae Than Lehman
BB
The lender is probably more important to the German economy than the GSEs were to the U.S.

  EURO AREA
Ferdinando Giugliano: Emmanuel Macron's Dream Is Out of Reach
BB
Regrettably, this isn’t the right time for a much closer euro zone.

'Lazy Italians' and 'ugly Germans': How the euro sows discordHandelsblatt
A common currency was supposed to unite Europeans. Instead, it increasingly divides them, as Italy showed again this week. Pro-Europeans must talk honestly about the euro.

Die EZB sollte nicht als Sündenbock für nationale Fehler herhaltenHandelsblatt
Wir Europäer müssen aufhören, uns kleiner zu machen, als wir sind. Der Euro ist eine Erfolgsgeschichte, an der die EZB entscheidenden Anteil hat.

Bundesbank chief hits at plan for eurozone crisis fund
FT
More risk sharing could create ‘dubious incentives’, Jens Weidmann warns

  EUROPEAN CENTRAL BANK
Peter Praet: Monetary policy in a low interest rate environment ECB

ECB: Preparing the end of QE?
ING
A rather hawkish speech by ECB chief economist Peter Praet this morning provided more evidence that next week’s ECB meeting will see a heated debate on how and when to end QE

ECB QE Debate Next Week Might Lead to Policy ChangeBB
Some officials consider Riga gathering right time for decision * U.S. trade spat, economic slowdown and Italy still pose risks

The ECB Is Nearly Done With Its Crisis-Era Playbook
BB
Governing Council will hold its next meeting on June 14 * Officials said to see chance policy stance will change

Coordinating monetary and financial regulatory policies
ECB
Coordination between monetary and macro-prudential policies helps to reduce the risk of entering into a financial crisis and speeds up exit from the crisis. The downside of coordination is variability in inflation and in the employment gap

Designing QE in a fiscally sound monetary unionECB
At the lower bound, as long as asymmetries between countries result from shocks, outcomes under an unconstrained policy rule can be replicated via a symmetric QE design.  By contrast, asymmetric structures of the countries  which  matter  for  the  transmission  of  monetary  policy  can  translate  into  an asymmetric QE design.

Marcus Ashworth: ECB QE Is Dead. Long Live ECB StimulusBB
The end of bond purchases is nigh, but officials need to find a way to maintain support for troubled countries.

  ITALY
A lopsided trade is a good trade, Italian inflation edition
FT
Using inflation swaps as a hedge against – or a bet on – “Italexit”.

Dominique Moisi: All Eyes on ItalyProject Syndicate
The emergence of a populist government in Italy directly affects France and its ambitions for European reform. With a politically weakened Germany, a hostile Eastern Europe, and a largely paralyzed Spain, French President Emmanuel Macron, a firm believer in the European ideal of “ever closer union,” risks isolating his country.

Italian assets hit by selling after ECB signal on stimulusFT
Country’s bond yields march higher as investors drop the debt, hitting banking stocks

Ferdinando Giugliano: Italians Play Russian Roulette With ECBBB
By using QE as a political football, the populists might help the central bank make up its mind on easing off bond purchases.


OTHER
Martin Wolf: Why the Swiss should vote for ‘Vollgeld’FT
A radical rethink of the financial system was essential after a devastating crisis

The Marshall Plan Taught Lessons Trump Refuses to Learn BB
An anniversary on which to remember why the U.S. built the post-World War II global order.

Chart of the Week: The Rise of Corporate GiantsIMF
 

REGULARS
EU Open Rundown RANsquawk

Market Briefing: Daily Markets OverviewYardeni Research

FirstFT Daily BriefingFT
Facebook shares with China, Aston Villa crisis, the Millennial Moment

WSJ City WSJ
China’s Offer on Trade, Global Economy Set to Weather Turmoil

WSJ EconomicsWSJ
There Are More Job Openings Than People Looking For a Job

“Best of the web” daily chartsLukas Daalder

Danske DailyDanske Bank

Daily Market CommentMarc Chandler
Greenback Corrects Lower

Brussels PlaybookPolitico
Cars, money, power — Priceless euro — The world vs. Trump

Five Things You Need to Know to Start Your DayBB

US OpenZH
Stocks And Euro Rise, Bonds And Dollar Slump After ECB Comments, With Italy, Trade War Fading


FINNISH
Aamukatsaus Nordea
Öljy ei auta Norjan kruunua * Italian tuleva hallitus alahuoneen luottamusäänestyksessä tänään * Puolan ja Intian keskuspankkien odotetaan pitävän korkonsa ennallaan * Ruotsin tuotantoluvut olivat pettymys