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Thursday, June 27

27th Jun - US Open: Confident but not lending Europe



Previously on MoreLiver’s:

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Roundups & Commentary
Frontrunning – ZH
Overnight: Market Mania Tapered In Quiet Overnight Session – ZH
The Lunch Wrap – alphaville / FT
Emerging N.Y. headlines – beyondbrics / FT
Midday Express (EU daily news) – Europa
Daily press summary – Open Europe
  Member states and MEPs strike compromise on long-term EU budget; Commission tables historic cut to the EU’s annual budget for 2014

Morning MoneyBeat: Trading Volume Offers Bearish Signal – WSJ
Morning Bond Update – TradingFloor
Dollar Mostly Softer, but still Muted Reaction to Developments – Marc to Market

EUROPE
Eurocrisis Conversation with Barry EichengreenRe-define
None of the underlying problems had or have been solved; even before the fiasco surrounding Cyprus it was clear that the crisis would to be back.  There had been no real re-balancing within Europe, no progress on banking union, and no agreement on limited fiscal union. So, I do not think anything has been solved, which renders me more pessimistic with the passage of time.  - See more at:

Destruction of French Manufacturing Placed Squarely on EuroMish’s

Euro zone bias strikes againMacroScope / Reuters
Ask an economist a question about the euro zone, and the answer will as much depend on the location of their head office as any analysis of the data.

  BANKING UNION SUMMIT
One small step…MacroScope / Reuters
EU finance ministers succeeded last night where they failed last Friday and reached agreement on how to share the costs of future bank failures, with shareholders, bondholders and depositors holding more than 100,000 euros all in the firing line in a bid to keep taxpayers off the hook.

Europe Make Cyprus "Bail-In" Regime Continental TemplateZH

Bank Bailout Deal Struck in EU Talks Decrees WritedownsBB
EU finance chiefs struck an agreement on how to handle failing banks, a step they said would bolster investor confidence and help overcome the euro- area financial crisis.

Europe strikes deal to push cost of bank failure on investorsReuters
The EU agreed on Thursday to force investors and wealthy savers to share the costs of future bank failures, moving closer to drawing a line under years of taxpayer-funded bailouts that have prompted public outrage.

  ECB
ECB Preview: The exit remains distantDanske Bank (pdf)
Euro area data have generally improved since the last Governing Council meeting so further easing is not on the agenda at the moment. Draghi will instead try to talk rates down. It seems almost certain that he will say that ‘the exit remains distant’.

Decline in euro area's excess reserves not an indication of improved lending Sober Look
The decline in euro area banks' excess reserves has been quite spectacular. Excess reserve levels are back to 2011 levels. Some are attributing this to banks "no longer hoarding cash" and therefore lending. That's nonsense.

  MACRO NUMBERS
European Economic Confidence Improves More Than Forecast – BB
Confidence in economy reaches 13-month high in euro areaTradingFloor
Economic sentiment improves markedly in both the euro area and the EU – Europa
Business Climate Indicator increases in June – Europa

Press release: Monetary developments in the euro areaECB (pdf)
Euro zone loan contraction turns up heat on ECBReuters

German Unemployment Unexpectedly Drops in Recovery Sign – BB
German jobless falls underscoring strong domestic economy – Reuters

UNITED STATES
Rates and the US housing marketalphaville / FT
Even before last week’s FOMC meeting and the subsequent spike in long-term rates, the US refinancing wave was already receding, the result of both the higher rates and the limited pool of eligible borrowers.

House Prices and Mortgage RatesCalculated Risk
Other factors (like a stronger economy) have a bigger impact on house prices than changes in mortgage rates.

ASIA
Did China’s Central Bank Blink?WSJ
Either China’s central bank blinked in the face of a painful liquidity crunch and a stock market swoon - or it figured it had made its point. So which one was it?

The US yield move and the China premiumalphaville / FT
What’s really responsible for higher US yields? Falling demand from domestic and western investors? Or Chinese and Japanese official flows?

FT Podcast: China’s cash crunchThe World / FT
Stefan Wagstyl, emerging markets editor and editor of the FT beyondbrics blog, and Simon Rabinovitch, Shanghai correspondent, join Shawn Donnan to look at the state of the Chinese economy.

Goldman On China: 'Sufficient' Liquidity But Tightening Bias To StayZH
  
FINNISH
Luottamusindikaattorit pysyivät heikkoina kesäkuussaEK
Kuluttajien luottamus talouteen vahvistui hieman kesäkuussaTilastokeskus

  EURIBOR
Asiantuntijat: Euriborin loppu ei hetkauta asuntovelallistaYLE
Uutistoimisto Reutersin mukaan suomalaisten asuntolainojen yleinen viitekorko euribor aiotaan korvata uudella korolla. Talousasiantuntijoiden mukaan muutos ei näy tavallisen asuntovelallisen elämässä. Euriboriin kohdistuu manipulointiepäilyksiä.

Reuters: Euribor-korolle pohditaan korvaajaaYLE
Euriborin korvaaja voisi olla korko, joka arvioiden lisäksi perustuisi toteutuneeseen pankkien väliseen lainanantoon, uutistoimisto Reuters kirjoittaa. Euriborin maine on heikentynyt, sillä siihen on liitetty manipulointiepäilyjä.

"Euriborin uudistus voisi heiluttaa lainakorkoja"TalSa
Yhdeksän kuukautta, ja euribor saattaa olla historiaa, uutistoimisto Reutersin lähde kertoi. Tilalle tulisi korko, joka perustuisi pankkien väliseen toteutuneeseen lainanantoon. Koron määrittelystä vastaavan EBF:n mukaan euribor ei ole katoamassa. Mutta mitä uudistus tarkoittaisi asuntovelalliselle?

Euriborin laskutapaa voidaan muuttaaHS
Suomalaisten asuntolainojen viitekorkona yleisesti käytetyn euriborin laskutapaa voidaan tulevaisuudessa muuttaa, kertovat asiasta perillä olevat lähteet Helsingin Sanomille. Nykyisin euribor määritellään sen perusteella, millä korolla pankit arvioivat lainaavansa toisilleen varoja vakuudettomasti euroalueella.

  PANKKIUNIONI
EU:n valtiovarainministerit sopivat sijoittajien vastuun lisäämisestä pankkikriiseissäHS
Tavoitteena on, että lasku lankeaa tulevaisuudessa veronmaksajien sijaan ensisijaisesti pankkien omistajille, velkasijoittajille ja suurtallettajille.

Urpilainen tyytyväinen pankkikriisien ratkaisumallistaHS
"Nyt sijoittajavastuu on se pääperiaate, jolla pankkikriisejä hoidetaan jatkossa", Urpilainen sanoi toimittajille Brysselissä torstaina.