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Wednesday, November 28

28th Nov - Fed turns neutral - only one hike seen in 2019


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EUROPE
After Angela: the race to succeed Merkel – FT
The choice of a new leader will determine whether the Christian Democrats want to be a truly conservative party

How Estonia became centre of Danske money-laundering scandal – FT
Head of country’s regulator does not pull any punches as he criticises Danish bank

Italian banks stock up on government bonds – FT
Largest increase in BTP holdings since early days of sell-off reinforces ‘doom loop’ fears

Monetary developments won’t stop ECB from ending QE soon – ING
Broad money growth accelerated in October, while loan growth remained at cruising speed. Comfortable enough for the ECB to stop its net asset purchases in January. However, a slowdown in 2019 might put TLTROs back on the agenda

When central banks go green – FT


UNITED STATES
Untaxing times for US corporates – Pictet
US corporates are delivering strong profits and this robust profit picture is further enhanced by a sharp drop in the corporate tax burden.

  FEDERAL RESERVE
Trump steps up Fed criticism ahead of Powell speech – FT
Public attacks by US president have been joined by closed-door manoeuvring

Powell's ‘Just Below’ Comment Seen as Suggesting Fewer Hikes – BB
Fed chief said in October rates were ‘long way’ from neutral * Treasuries, stocks rally as investors see less chance of hikes

SocGen: Powell Corrected "A Rookie Mistake" But Nothing Has Changed – ZH

Powell’s Message Wasn’t Necessarily About Rates – BB
But by emphasizing the long-term effects of Fed policy, he made the case for a pause in hikes.

Market Prices Just One 2019 Fed Hike After Powell Remarks – BB

'Powell Put' Sparks Buying-Panic, Dovish Dollar Dump – ZH

Front running Fed-Day’s Eve – FT

Fed's Powell, in apparent dovish shift, says rates near neutral – Reuters


OTHER
Why Dollar Bears Shouldn't Expect Much From A Powell 'Pause' Signal – ZH

Nomura Shows "The Moment Everything Broke" – ZH
In the beginning of October, sliding risk assets, sharply tighter financial conditions, US inflation expectations via 10Y Breakevens collapsing, first cracks in long/short hedge fund performance, CTA trend index snapped, beta market neutral funds broke down and risk-parity stopped working as the correlation between stocks and bonds inverted.


REGULARS
EU Open Rundown – RANsquawk

Brussels Edition Daily – BB

Brussels Briefing – FT
Russia's seizure of Ukrainian ships is a geopolitical headache that comes as the EU is deep in the morass of Brexit

Eco Day Europe – BB
Brexit Back Down, Trump-Xi Dinner, Italy's Budget * Credit Suisse is planning to make Madrid its post-Brexit hub * EU discussing sanctions on Russia, though no action likely yet

FirstFT Daily Briefing – FT

WSJ Daily Economics – WSJ
U.S.-China Summit On Tap, Trump Threatens GM

Danske Daily – Danske Bank
All eyes on Fed Chairman Powell's speech tonight

Daily Market Comment – Marc Chandler

Brussels Playbook – Politico
Romanian brain drain — Bad loans, good numbers — Macron takes another hit

Five Things You Need to Know to Start Your Day – BB

Eco Day US – BB
Mnuchin's Fed Question, Brexit Impact, Trade Fallout * Treasury Secretary said to ask about option that avoids hikes * U.K. GDP Would suffer 10.7% hit in worst case no-deal Brexit

US Open – ZH
US Futures Jump On Fresh Hopes For China Trade Deal, Dovish Powell Speech

US Open Rundown – RANsquawk

Aamukatsaus – Nordea
G20-kokoukseen on ladattu liian suuria odotuksia, julkaisimme analyysin tulevasta kokouksesta | Suomen kuluttajien luottamus nousi hieman, Italian ja USA:n puolestaan heikkenivät | Tänään tulossa jälleen luottamuslukuja Ruotsista ja Saksasta