Roundups
News roundup – Between
The Hedges
The 6am Cut London – alphaville
/ FT
Emerging Markets
Headlines – beyondbrics
/ FT
Asia Morning MoneyBeat – WSJ
Europe Morning MoneyBeat – WSJ
MORNING BRIEFINGS
3 Numbers To Watch: DE Comp. PMIs, EU Comp.
PMIs, US Mfg. PMI – TradingFloor
PMI data for Germany and the Eurozone is expected to tick higher in
today’s flash estimate, and today’s US Manufacturing PMI is projected to slip
again to just above the neutral 50 level.
Market Preview: FOMC minutes sound hawkish;
PMIs across EU eyed – TradingFloor
European markets are
likely to open lower Thursday after the FOMC minutes indicated that some
policymakers favoured tapering QE as soon as June. With Chinese manufacturing
data disappointing investors, PMIs across Europe due later today will be eyed.
Danske Daily – Danske
Bank (pdf)
Euro-area flash
PMI’s, loads of ECB speeches, US manufacturing PMI, Fed’s Bullard speaks
Aamukatsaus – Nordea
Euroalueen
toipuminen viivästyy * Fed ja Kiinan PMI painavat riskimarkkinoita * Bernanken
puheet velkakirjaostojen lopettamisesta nostivat korkoja
Aamukatsaus – Tapiola (pdf)
EUROPE
The banking crisis as a giant carry trade gone
wrong – voxeu.org
A pernicious aspect of
the Eurozone crisis is the ‘doom loop’ linking European banks and governments. This
column argues that poor European policy choices in the wake of the 2008 Global
Crisis worsened the problem. Rather than being forcefully recapitalising as in
the US and UK, many Eurozone banks were left
undercapitalised and free to gamble for redemption. In what may be the greatest
carry trade ever, they borrowed cheap, first in short-term debt markets and
then from the ECB, to invest in high-yield but risky sovereign debt. Substantial
bank recapitalisations against sovereign-bond losses is the way forward.
ASIA
PMI slips back into
contraction territory during May – Markit
(pdf)
HSBC PMI suggests continued near-term softness – Danske Bank (pdf)
Growth outlook remains subdued – Nordea
Manufacturing Slips Back Into Contraction – Mish’s
Flash PMI Sinks to 7 Month Low – PragCap
Economy Enters
Contraction With First Sub-50 PMI Print Since October – ZH
Japanese Bond Market
Halted At Open As Bond Selling Purge Goes Global – ZH
Japanese Stocks Plunge
1500 Points, Closes Down 7.3% - Biggest Drop In 26 Months – ZH