Google Analytics

Thursday, May 30

30th May - US Open: Abenomics rethought



Also worth noting that Paris resists advice from Brussels. The big ones seemingly have rules of their own.



Previously on MoreLiver’s:

Follow ‘MoreLiver’ on Twitter or Facebook

Roundups & Commentary
Frontrunning – ZH
Overnight: Nikkei Plunges Another 5% But "Unsourced" Stick Save Arrives Just In Time – ZH
The Lunch Wrap – alphaville / FT
Emerging N.Y. headlines – beyondbrics / FT
Daily press summary – Open Europe

Morning MoneyBeat: A Bond Selloff, But Not the Big One – WSJ
Morning Bond Update – TradingFloor
Dollar Bowed by Month-End Pressure – Marc to Market
Morning Briefing (EU/US): Fight the good fight – BNY Mellon
  The BOJ has been left to fight a strengthening tide - something that could have profound implications for currency crosses like AUD/JPY


EUROPE 
Bank capital is Europe’s big problemThe A-list / FT
The transmission mechanism of the euro area monetary policy is not working properly, as interest rates charged by the banking system vary widely across countries. This hurts small businesses in particular, as they have to rely on bank credit much more than large companies which can issue debt in the capital market. As a result, countries which are implementing fiscal restriction cannot fully benefit from the monetary policy easing implemented by the ECB. Under these conditions the adjustment risks being self-defeating.

France says Brussels 'cannot dictate' economic policyeuobserver

France: ‘Brussels’ 10 commandments to Hollande’Le Figaro / Presseurop

Franco-German motorMacroScope / Reuters
Today’s big setpiece is a meeting of German Chancellor Angela Merkel and French President Francois Hollande ahead of a June EU summit which is supposed to lay the path for a banking union.

EU funds: ‘Portugal received €9m per day for 25 years’Presseurop


Finland has a swap… that’s a bit pointlessalphaville / FT
Somehow — was it the ludicrous secrecy, maybe? — you could tell this was coming. On Wednesday, Jan Hurri at Taloussanomat took advantage of the Finnish government’s recent doc dump in order to reach a conclusion about its deal for ‘collateral’ on Greek bailout loans


UNITED STATES
The Effects of Unconventional and Conventional U.S. Monetary Policy on the DollarFED

ASIA
Abenomics to make or break JapanNordea (pdf)
Or the summary.

Rethinking AbenomicsWSJ

What's going on in Japan?Buttonwood / The Economist
Another sharp fall in Japan's stockmarket this morning (5.2% on the Nikkei, 3.8% on the Topix) raises broader questions about the euphoria that greeted the introduction of Abenomics.

Nikkei Takes Another Big PlungeWSJ
The Nikkei Stock Average closed down 5.2%, hitting a four-week low at 13,589.03, the lowest level since April 23.

Nikkei painalphaville / FT
What we do know is that until recently a refrain across the City was “good news stocks are up, bad news stocks are up” so this, potentially ongoing, correction was something everyone was waiting for.

OTHER
Blogs review: The economics of a regime shiftBruegel
For several years already (see our previous reviews on price level and nominal GDP targeting), monetary economists and historians have called for a regime change in monetary policy that would break with the past and greatly affect inflation and growth expectations. After two decades of deflation, this change has come to Japan. As with the UK experiment with fiscal contractions, the early effects of the Japanese experiment have been followed with great interest on both side of the Atlantic where the policy approach has been more incremental. In this post, I complement the discussion of Abenomics with historical evidence from the Great Depression.

FINNISH
Sanoman Pekka Soini intranetissä: Liian moni tyytymätön Hesarin sisältöönMarMai
”Iltapäivälehdet ovat tottuneet elämään ajan pulssilla. Ne myydään lukijoille joka päivä. Tässä asiassa digimedia opettaa meitä kaikkia”, Soini sanoo M&M:lle.

Helsinki alkaa etsiä kerjäläisille yöpymispaikkojaHS

Euroopan komissiolta suuntaviivoja kotimaan talouspolitiikkaanEK
Euroopan komissio julkaisi eilen EU:n jäsenmaille maakohtaiset suositukset osana eurooppalaista ohjausjaksoa (European Semester). Suosituksissa on arvioitu jäsenmaiden toimintaa julkisen talouden tasapainottamiseksi ja talouden rakenteiden kehittämiseksi. Suositusten tavoitteena on antaa ulkopuolista näkemystä asioista, joiden tulisi olla kansallisen päätöksenteon painopisteinä seuraavien 12–18 kuukauden aikana.

Kreikan vakuusjärjestelystäValtteri Aaltonen / Piksu

Velkadeflaatio: Euroalueen kuolemanspiraaliJuha Remes / Piksu

Kreikan vakuusjärjestelystäValtteri Aaltonen (sd) / US Puheenvuoro

EK:n puheenjohtaja Ilpo Kokkila: Suomea uhkaa vaarallinen kierreEK
Suomi elää viennistä, mutta nyt tämä vientikone yskii pahasti. Edessä on vaarallinen kierre, kun kilpailukyky heikkenee, työpaikat vähenevät, kotimainen kysyntä hiipuu ja investoinnit hyytyvät, totesi EK:n puheenjohtaja Ilpo Kokkila tänään EK:n kevätseminaarissa Helsingin Palacessa.