Budget time. Banks tomorrow. The confusion regarding ESM eligibility seems to be a big issue, after the FANG-countries announced something. Nobody is sure what it means, so you'll have to read for yourself.
Roundups &
Commentary
US Opening
News And Market Re-Cap – Ransquawk / ZH
Frontrunning – ZH
The Lunch Wrap – alphaville
/ FT
Emerging N.Y. headlines – beyondbrics
/ FT
Today’s front pages – presseurop
Daily press summary – Open Europe
Spanish government to unveil new austerity
budget amid continuing protests; Catalan President: Referendum on independence
will happen with or without Madrid’s consent
Morning MarketBeat: The Stall-Speed Economy – WSJ
Broker Note Briefing – WSJ
Morning Take-Out – NYT
AM Dear Dairy: Bounce – Macro
and Cheese
Short Note on Market Developments – Marc
to Market
The T Report: Budgets and Bailouts – TF
Market Advisors
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
Can struggling eurozone countries achieve the
necessary ‘internal devaluation’ and at what political cost? – Open
Europe
Fresh sentiment numbers point to deepening
Euro-zone recession
– Nordea
Today’s broad Euro-zone economic sentiment
indicator for September did not imply the performance of the Euro-zone economy
would improve any time soon.
Van Rompuy swings, and misses, for the ECB – Brussels
Blog / FT
The ongoing saga of the European Central Bank’s
empty seat on its six-member executive board appears to be, well, ongoing.
EUROPE: ESM
A European fudge, now in focus – alphaville
/ FT
The divisions over whether the ESM should
shoulder the burden of existing impaired bank assets is a serious one, and
could get worse.
What’s the fuss about direct ESM bank
recapitalisation? –
Danske
Bank (pdf)
On 25 September, the finance ministers of Germany, the Netherlands and Finland issued a joint statement putting forward two important principles.
First, they reiterated that “direct ESM bank recapitalisation...can only take
place once the single supervisory mechanism is established and its
effectiveness determined”. Second, the finance ministers stated that “the ESM
can take direct responsibility of problems that occur under the new
supervision, but legacy assets should be under the responsibility of national
authorities”.
EUROPE: SPAIN
Spanish Bank Deposit Outflow Surge Continues In
August – ZH
He has many audiences to please: other Eurozone
partners; central banking institutions; the Spanish people; regional
separatists, to name a few. We can expect strong reaction, from the market and
from the street, to announcements of further austerity measures which could
either hasten or delay Spain’s call for a bail-out
from its European partners.
A Spanish shopping list – alphaville
/ FT
JPM and Nomura on Spain’s budget
Spain is in Trouble – naked capitalism
(audio) BizDaily: Catalans go it alone? – BBC
(mp3)
Catalans are to vote next month whether to
separate from Spain. But does it make economic sense for them and for Europe? And is an MBA worth the money?
Plus - what it takes to be an entrepreneur in Africa.
OTHER
Nordea Risk Perception – Nordea
(pdf)
Full-scale “risk-off” yesterday on the back of
steady negative news flow topped with core countries making a tougher stance on
ESM * Finally spilling over to vol markets, thereby materializing in Nordea
Risk Perception as well * Rates and Commodity components maintain low
correlation with overall NRPI * While Spain/Greece are critical drivers for
short term risk sentiment, we see scope for lower FX and rates (gamma) vols
towards year end.
HSBC: This is now about structural woe – alphaville
/ FT
Stephen King’s team at HSBC: thoughts about the UK’s productivity puzzle, the US jobless recovery, the pointlessness of QE and whether a structural shift may under way.
Stephen King’s team at HSBC: thoughts about the UK’s productivity puzzle, the US jobless recovery, the pointlessness of QE and whether a structural shift may under way.
Great Graphic: Gold in Different Currencies – Marc
to Market