3rd Oct - EU Open

Previously on MoreLiver’s

2.10. US Close

2.10. US Open

2.10. EU Open

Roundups

News roundup – Between The Hedges

The 6am Cut London – alphaville / FT

Emerging Markets Headlines – beyondbrics / FT

Reference

TV: Bloomberg, CNBC, BBC

Debt crisis: live – The Telegraph

The Euro Crisis Blog – WSJ

Tracking Europe’s Debt Crisis – NYT

FX Options Analytics – Saxo Bank

European 10yr Yields and Spreads – MTS indices

MORNING BRIEFINGS

Morning Briefing (Asia): RBA Cut Rates, But Dow Closes Lower – BNY Mellon

There are no easy short-term solutions to the Euro-area’s problems; but faith in the EU’s current approach is hard to find

Asia Today: Oz trade data shocker keeps the AUD under pressure – Saxo Bank

Services PMIs were on the radar this morning but it was the Oz trade data that grabbed the headlines - and what a shocker it was! August showed a deficit of A$2.02 bln, the largest since A$2.08 bln in March 2010, on falling iron ore and coal prices.

Market Preview: Eurozone Retail Sales on tap – Saxo Bank

European markets are expected to open mostly lower Wednesday after Spain’s Prime Minister, Mariano Rajoy, denied reports of seeking a bailout this weekend. Markets are keeping an eye on Eurozone retail sales and US ADP employment data due today. 

Danske Daily – Danske Bank (pdf)

Spanish Prime Minister Rajoy said request for aid not imminent. Chinese non-manufacturing PMI declined to 53.7 in September. Focus today: In Europe focus will today be on the release of service PMIs…Euro area retail sales for August might also get some attention…In the US focus will be on ISM non-manufacturing and the ADP private employment report… 

Aamukatsaus – Nordea (pdf)

Espanjalta ei avunpyyntöä vielä viikonloppuna? * Jääkö USA:n talousdata pettymykseksi? * Kiinan palvelusektori ongelmissa

Aamukatsaus – Tapiola (pdf)

Olemme tarkastelleet odotettavissa olevaa osinkotuottoa ensi keväänä suhteessa osakkeen riskiin. Mielestämme mielenkiintoisimpia ovat yhtiöt joiden osinkotuotto on korkea ja samalla beta riski matala. Markkinan suunta: markkinoilla peruuteltiin, kun Espanjan pääministeri kielsi markkinoilla ennakoidut apupyyntöaikeet tulevan viikonlopun aikana. Kiinan palvelualojen ostopäällikköindeksi osoitti yllättävää nikottelua maan sisämarkkinoilla. Korkeaa osinkotuottoa pienellä riskillä: Kovimmat tuotot pienimmällä riskillä: Alma Media, Elisa, Orion, Fortum ja TeliaSonera. Korkealla riskillä ei lainkaan osinkoa: Talvivaara, Metsä Board, Outokumpu, Finnair, Nokia. 

Morning Briefing (EU/US): Walk Away – BNY Mellon
We love the CAD, who doesn’t? That’s the problem. 

Markkinakalenteri – Nordnet

Markkinakalenteri – Taloussanomat

Follow ‘MoreLiver’ on Twitter or Facebook 

EUROPE

European Banks Still Treat Their Sovereign Debt Holdings As Risk-Free, BIS Finds – ZH

The EU’s plans for tightening bank capital rules fail to live up to the Basel III banking reform, an inspection team of global regulators has decided. The draft EU directive is “noncompliant” with the global deal in two important areas. Its definitions of top-quality capital are looser in at least seven ways and a loophole allows many big banks to assume that their sovereign debt holdings are risk-free.

The Myth of German Hegemony: Why Berlin Can't Save Europe Alone – Foreign Affairs

Germany has the strongest economy in Europe, but its financial strength does not translate into political supremacy. In recent months, Berlin has lost both allies and influence, and it will need to compromise in order to stabilize the eurozone. The crisis will not enable Germany to push through, without restriction, its own vision of European integration. Political developments of the last six months have left Germany a rather isolated giant.

Concerns Mount that ECB Bond-Buying Program Is Illegal – Spiegel

The markets have celebrated Mario Draghi's announcement that the European Central Bank will embark on unlimited purchases of sovereign bonds from crisis stricken countries. But are such purchases really legal? Draghi's own justification for the program leaves plenty of room for doubt.

Concerns? What Concerns? – Mish’s

I have no doubt that German chancellor Angela Merkel knows full well that not only is the ECB's program in violation of ECB mandates, it is also against the German constitution. Even ardent supporters of the Euro at Eurointelligence have admitted as much.

Europe Intent on Saving Greece Despite Lag in Reforms – Spiegel

Greece's creditors have been less than impressed with the country's willingness and ability to carry out much needed reforms. But Europe is likely to continue supporting the country anyway -- out of fear of the consequences should the country go bankrupt.

USA

QE3 Misconceptions and How to Profit – A Dash of Insight

I expect the current QE round to be more effective than the past versions.  Why?  The focus on changing expectations. In the past, any good economic news was greeted with the notion that the Fed would step back.  The current policy changes this.  The Fed is committed to economic stimulation, even if it pushes inflation somewhat above the 2% target level.

IN FINNISH

Suomi – ikuinen lypsylehmäkö? – Raimo Ilaskivi / IL Blogi

Taas on puhuttu ja neuvottu. Komission varapuheenjohtaja Olli Rehn on Suomessa pistäytyessään  jälleen avannut sanaisen arkkunsa ja lausunut  näkemyksensä tavasta, jolla  asiansa hyvin hoitaneitten pohjolan maitten tulisi pitää huolta etelän tuhlareista.

Matti Virtasen uhraus – Kalle Isokallio / IL Blogi

Poliitikot eivät ajattele kansantalouden etua, he optimoivat lillukanvarsissa suunnistaen tulonsiirtoja ja etuisuuksia omille kannattajilleen. Silti he puhuvat kansantalouden termein siitä, miten he varjelevat hyvinvointiyhteiskuntaa.

Kaatuuko Suomi AAA-kunnossa? – Pääkirjoitus / IL

Paras mahdollinen luottoluokitus ei ole päämäärä vaan apuväline, joka pitää hyödyntää.

Jyrki Katainen on ottanut oppia Neuvostoliitosta – Pääkirjoitus / Suomenmaa

Katainen näet ilmoitti puolueristeilyn paneelikeskustelussa, että koko Suomen asuttuna pitämisestä puhuminen on ”vanhahtavaa”.

Liikasen pankkiesitys luo vasta pohjan työlle – Pääkirjoitus / HS

Follow ‘MoreLiver’ on Twitter or Facebook