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Tuesday, May 28

28th May - US Open





Previously on MoreLiver’s:

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Roundups & Commentary
Frontrunning – ZH
Overnight: Traders Taunted By "20 Out Of 20" Turbo Tuesday – ZH
The Lunch Wrap – alphaville / FT
Emerging N.Y. headlines – beyondbrics / FT
Daily press summary – Open Europe

Morning MoneyBeat – WSJ
Morning Bond Update – TradingFloor
Five Questions Facing the MarketMarc to Market
Morning Briefing (EU/US): Wish you were here – BNY Mellon
There is some talk that Europe’s leaders need to embrace their own radical course lest Japan’s fate be their own


EUROPE
Finland still had a few secretsalphaville / FT
These new documents make clearer what Finland actually got from all its huffing and puffing in late 2011 and early 2012: a derivatives transaction with four banks, rather than the Greek ‘collateral’ paraded before an increasingly bailout-jaded Finnish public.

New Open Europe/ComRes pollOpen Europe
UK public overwhelmingly supports new EU relationship over withdrawal – but UKIP is set to win European elections

Deficit-Defying Stimulus for EU?WSJ
The European Commission has already given some governments more time to cut their deficits because of a deeper-than-expected recession and now wants to loosen spending rules further.

Jeroen Dijsselbloem: ‘Mr Euro’ under fireHandelsblad / Presseurop
The Eurogroup president is coming in for increasing criticism. After a few political gaffes, the Dutchman stands accused of listening too closely to his team of cocky Finance Ministry officials.

The China-EU Trade SpatThe Diplomat
Both Chinese Premier Li Keqiang and German Chancellor Angela Merkel have made statements over the last two days relating to the brewing EU-China trade disputes.

In EU-China dispute, Beijing warns of trade warBrussels blog / FT
The Chinese delegation to the EU put out what can only be described as its toughest response yet to the burgeoning trade dispute between Brussels and Beijing.

Large sigma events in the European FX marketsDanmarks Nationalbank
Stylised facts from 273 years of quarterly data: Our analysis clearly illustrates the risk of seriously underestimating the probability and magnitude of tail events when frequency distributions of nominal exchange-rate changes are derived on the basis of fairly short data samples (includes full pdf AND Excel-data!)

European banks: Big valuation discrepancy equals big opportunityTradingFloor
Peter Garnry: Based on our analysis of cross-sectional valuation of European banks the most undervalued banks are Raiffeisen Bank, Deutsche Bank and Danske Bank. Meanwhile, Italian banks completely dominate the space of most overvalued banks.

Are we nearly there yet?alphaville / FT
The short answer, when it comes to eurozone adjustment post-crisis, is No. David Mackie and team at JP Morgan reckon we are maybe halfway there.

When ideology meets economic reality (part III)Open Europe
Germany squabbles over the Financial Transaction Tax


UNITED STATES
Inflation, deflation and QECoppola Comment

Taper bomb-proofingalphaville / FT
If or when the Fed starts to taper, where will the pain land first? Barclays analysts Guillermo Felices, Michael Gapen and Sreekala Kochugovindan have taken a shot at answering that question expecting the Fed to start backing itself out at the start of 2014

The New Tapering Normal Optimism In ChartsZH
That all the increase in risk assets has been on the back of multiple expansion for the past year is by now not news to anyone. What may come as a surprise to some who have not been paying attention, as Morgan Stanley conveniently reminds us, is that corporate profits have been declining not for one or two quarters, but for two full years now.


ASIA
Primer on Japan in Four PostsMarc to Market

Kuroding yieldsalphaville / FT
The daily attempts of Bank of Japan and Japanese government officials to calm volatile equities/yields/yen is becoming dizzying.

BOJ Admits Sending Schizophrenic Signals To Market As JGB Liquidity "Evaporates"ZH


OTHER
Globalisation isn't just about profits. It's about taxes tooThe Guardian
Joseph Stiglitz: Big corporates are gaming one nation's taxpayers against another's: we need a global deal to make them pay their way

Debating Helicopter Money (while the lunatics continue to run the asylum)mainly macro
My line on helicopter money has been that it is formally equivalent to fiscal expansion coupled with an increase in the central bank’s inflation target (or whatever nominal target it uses), and so adds nothing new to current policy discussions.

Wise for central banks to be flexible over stimulus steps, however investors reactThe Telegraph
To anyone observing the financial markets from the outside, the events of the last few weeks must seem baffling.

Commodities Forecast UpdateDanske Bank (pdf)
Consumers, beware of higher USD amid likely H2 sell-off

Financial Secrets and LiesProject Syndicate
Gavin Hayman: A recent investigation by the International Consortium of Investigative Journalists showed the pervasiveness of financial secrecy, which facilitates tax evasion, money laundering, corruption, and crime. Now, the international community – starting with the G-8 countries – must commit to enhancing financial transparency worldwide.

Reinhart & Rogoff is still ongoing, meme status inevitablealphaville / FT

Debt, growth and competing risksFree exchange / The Economist


FINNISH
Nousevan auringon koelaboratorioHenri Myllyniemi / Piksu
Japanissa pidetäänkin eräänlaista talouden koelaboratoriota pystyssä, ja me täällä Euroopassa voimme ottaa opiksi. Niin toistamalla onnistuneita kokeita kuin välttämällä epäonnistuneita kokeita.

Euron valuviat ja niiden korjausTom Liljeström / Tapiola

  CASE PENTIKÄINEN
Talous ajaa mediaa ahtaalle Talouden tulkki
Kumpaan Sanomien hallituksen puheenjohtaja Antti Herlin hermostui enemmän, lehden poliittiseen linjaan vain heikkoon taloudelliseen kehitykseen?

Lähteet: Pentikäisen potkujen syitä levikin lasku ja johtamistapaHS

Mediamurroksen ryske ylsi HesariinIL

HS:n päätoimittajan potkut eivät yllättäneet mediakonkariaMTV3

Pentikäiselle potkut HS:sta – lue päätoimittajan avoin kirjeHelsingin Uutiset

Miten Mikael Pentikäisestä tuli Sanomien mies - lue henkilökuvaSK

Kommentti Mikael Pentikäisen erosta: Hyvä mies sai lähteäSS

OFF-TOPIC
The agonizing face of warThe Daily Mail
Soldiers with PTSD make disturbing masks to express their feelings of horror and frustration