Previously on MoreLiver’s:
Roundups
News roundup – Between The
Hedges
The 6am Cut London – alphaville
/ FT
Emerging Markets
Headlines – beyondbrics
/ FT
Europe Morning MoneyBeat: Equity Strength Forecast As
Bernanke Reassures – WSJ
MORNING BRIEFINGS
3 Numbers to Watch: ECB report, US jobless and
consumer comfort – TradingFloor
The ECB releases its
monthly economic report today, followed by the weekly update on US jobless
claims and the US Bloomberg consumer comfort index.
Market Preview: Bernanke lifts market sentiment – TradingFloor
Ben Bernanke’s comment
that the existing monetary policy stance is needed in the near term is likely
to lead European markets to open sharply higher Thursday. Going forward today,
the ECB’s monthly report and the US jobless claims data will be eyed.
Danske Daily – DanskeBank (pdf)
Main focus are the
minutes from the June Fed meeting released yesterday and dovish comments from
Fed chairman Ben Bernanke suggesting that Fed tapering in September is not a
done deal. US bond yields are markedly lower and USD has weakened
significantly. As expected Bank of Japan did not announce any easing measures
in connection with its monetary meeting.
Bonds rally after
Bernanke’s reassuring comments * Fed minutes leave the door open for tapering
later this year * Bernanke reassures accommodation will continue * Sell-off
pressure for bonds likely to ease for now * Messy politics continuing in Italy
* New 7-year bond from the EFSF * US jobless claims and more central bank
speeches on the agenda * Italy and the US to sell bonds
Aamukatsaus – Nordea
Bernankelta
rauhoittelevia sanoja * Japanin keskuspankki näkee talouden piristyvän
EUROPE
The Eurosystem Needs Analysis Project funded by
the European Union – ECB
Speech by Jörg
Asmussen, Member of the Executive Board of the ECB, Skopje, 10 July 2013
UNITED STATES
Should the Fed Be Moderate? – esoltas
Bernanke Sets Cat Among the Pigeons – Marc
to Market
The FOMC minutes did
not appear as hawkish as many expected…The consensus that emerged in recent
weeks was for the Fed to announce a slowing of purchases of long-term assets at
the September FOMC meeting that would begin in October. The market had also
moved to discount a good chance of the first hike in the Fed funds rate in late
2014 or early 2015. Bernanke's comments gave the market reason to re-evaluate.
Minutes muddy waters – USD sings the blues – TradingFloor
Michael O'Neill: The
seemingly contradictory FOMC minutes in an FX environment a tad long of dollars
and a tad light of liquidity sparked some sharp US dollar losses.
Fed Chairman Bernanke's two-tier approach to normalization – TradingFloor
Steen Jakobsen: Bernanke
now has a two-tier approach to normalisation: Accomodative monetary policy and
a macro-prudential framework (regulation and margin call). The Fed is left just
communicating with the market - a sign of desperation, but a 1700 S&P
awaits first
FOMC minutes and Bernanke’s dovish speech – TradingFloor
Juhani Huopainen: The
minutes of the taper-bomb FOMC meeting of June were not as hawkish as had been
feared. The market had anticipated softer minutes, but it was Fed chairman Ben
Bernanke's speech and press Q&A afterwards that really provided the dovish
goods
From Minutes To Bernanke – Tim
Duy’s Fed Watch
There is enough
material today for everyone to walk away believing their priors. The mass confusion within the FOMC minutes
alone suggest substantial factions on boths sides of the taper/don't taper
debate. That said, I think it is
difficult to walk away from today's events with a sense of certainty about the
September taper. But I also think that
the minutes suggest that someone brought a divided FOMC together around a
common plan - a plan to put the taper on the table sooner than later but
attempt to walk a tightrope with respect to interest rate policy. And I can't see how that someone is anyone
but Bernanke.
Currencies Go Berserk
As Bernanke Kills King Dollar – ZH
(see also last night’s
post
for more on the Fed)
FINNISH
Bruttokansantuote supistui 0,8 prosenttia
vuonna 2012 – Tilastokeskus
Kotitalouksien nettorahoitusvarat hupenivat
vuonna 2012 – Tilastokeskus
Kotitalouksien velkaantuminen rauhoittui Q12013
– Tilastokeskus
Rakennusyritysten liikevaihto väheni
helmi-huhtikuussa lähes 2 prosenttia YoY– Tilastokeskus
Veroaste 44,1 prosenttia vuonna 2012 – Tilastokeskus