Markets are completely dead - literally in the eye of the storm. Missing links to be updated soon.
Previously on MoreLiver’s:
8.9. Weekender: Weekly Support (last week’s review, next one
previewed)
7.9. Guest: On Mario's Shock and Awe (excellent)
Roundups & Commentary
US Opening News And Market Re-Cap –
Ransquawk / ZH
Frontrunning
– ZH
Overnight
Summary & Week Ahead – ZH
The Lunch
Wrap – alphaville
/ FT
Emerging
N.Y. headlines – beyondbrics / FT
Today’s
front pages – presseurop
Daily press
summary – Open
Europe
German
MP launches last minute legal challenge demanding Constitutional Court takes new ECB bond-buying programme into account before Wednesday’s ESM
ruling
Morning
MarketBeat: Fed Hopes Running High – WSJ
Broker Note
Briefing – WSJ
Morning
Take-Out – NYT
AM Dear
Dairy: All Quiet – Macro
and Cheese
Eventful
Week Begins Slowly – Marc
to Market
US session ahead
Pre-market
Commentary – Marketwatch
Pre-Market
Trading – CNNMoney
Pre-Market
– NASDAQ
US Equity Preview – Bloomberg
Earnings
& Events – The
Street
MarketCurrents
– Seeking
Alpha
Reference
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
EUROPE
Spain and Italy mustn’t blow ECB plan – Hugo
Dixon / Reuters
For now, Draghi can withstand the criticism, as
long as Angela Merkel keeps backing him. But if Rajoy and Monti don’t move
fast, the ECB’s magic will wear off. And if its medicine then fails, it will be
hard to conjure up the political will for an even more powerful concoction.
ECB death pact good for risk (6-Sep) – James
Saft / Reuters
Becoming a lender of last resort then
ultimately means that the ECB enters into a death pact, a sort of mutually
assured destruction, with the states it rescues, as each can bring the other
down. That may make Bundesbank fears of inflation and debasement correct, even
if it doesn’t make their preferred course of policy wise. For investors it
comes to the same thing; for now be more comfortable with a bit more risk but
be prepared for that to change. Your main insurer is committed and owns a
printing press, but death pacts can and do end badly.
Another euro zone week to reckon with – MacroScope
/ Reuters
Despite Mario Draghi’s game changer, or
potential game changer, the coming week’s events still have the power to shape
the path of the euro zone debt crisis in a quite decisive way
Here's the full proposal for an EU banking
union (leaked)
The Commission's highly anticipated
proposal for an EU Banking Union, due to be released on 12 September, has
leaked (courtesy of Italian daily Il sore 24 ore). The
full document can be read here.
“I think the court will say this is something
that Germany can manage,” Clemens Fuest, an economist at Oxford University’s Said Business School, said in a phone
interview. Still, the court will likely take an interest in parliamentary
involvement and “impose some conditions” on the ESM.
A year ago I think a referendum would have
passed with flying colors. Now 54% of Germans Want the Constitutional Court to Kill the ESM…I had been thinking the court would easily approve the
ESM, but with reservations. However, the OMT changed the odds quite a bit.
The Mediterranean countries are, once again,
starting to fall behind. While this deepening rift may be partly due to the
flawed design on the euro, there are clearly other factors as well that have
kept the so-called PIGS – Portugal, Italy, Greece and Spain – from catching up.
Identifying the barriers to growth in those countries is therefore key.
GS has launched a reorganization of its
analysts and associates in Europe, doing away with country-based and
sector-based teams and creating two super groups focused on northern and
southern Europe.
Economist Sinn Rattles Merkel Laboring to Save
Euro – BB
“Sinn’s
much more influential than any other private- sector economist in Germany,” says Fredrik Erixon, head of the European Centre for International
Political Economy in Brussels. “His views reflect those of traditional Germans, whose anxieties about
the flawed structure of the euro have been exacerbated by the crisis. He gets
listened to by the cognoscenti of German policy making.”
The euro crisis should not stop enlargement – euobserver
Swedish industrial production – trend remains
weak – Nordea
Industrial production in July increased by 0.3%
m/m and decreased by 0.4% y/y. Today’s figures were stronger than we and
consensus had in mind. Still, the overall trend in manufacturing remains weak.
CHINA
China: Weak data open up for a second
round of easing – Danske
Bank (pdf)
China’s trade data for August point to
weakening domestic demand – ASA
China’s cash crunch: the numbers – beyondbrics
/ FT
China: trade figures signal slowdown – beyonbrics
/ FT
A Rorschach
test, China Q3 data edition – alphaville
/ FT
Another month, another round of mostly disappointing China data. Not that everyone is overwhelmed by the gloom, as some are pointing to positive indicators in property as well...
Another month, another round of mostly disappointing China data. Not that everyone is overwhelmed by the gloom, as some are pointing to positive indicators in property as well...
OTHER
Manufacturing Slowdown Intensifying – The
Short Side of the Long
We are witnessing strength in the equity
markets around the world, while global economic growth continues to deteriorate
towards stall speed and a potential recession. If one was to ask me why I think
the equity markets continue to turn a blind eye towards fundamentals, the
obvious answer would point towards investor hope of further stimulus by the Fed
and ECB.
Expect the Fed to launch QE3 on Thursday – Nordea
with
estimated market reactions.
Equity Review: High flying PIGS as ECB pushed
stocks higher – Saxo
Bank
Party on! (but watch out for the cops) – Humble
Student
The preliminary verdict of the market from
Friday's NFP release is clear, party on! The signs of a cyclical turnaround
were already in place. Now we have central bankers, first the ECB (and most
likely the Federal Reserve next week), throwing a giant party.