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Monday, August 19

19th Aug - EU Open





Previously on MoreLiver’s:

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Roundups
News roundup – Between The Hedges
The 6am Cut London – alphaville / FT
Asia Morning MoneyBeat: Stocks Break From Herd – WSJ
Europe Morning MoneyBeat: Drifting Lower Ahead of Fed Minutes – WSJ


MORNING BRIEFINGS
3 Numbers to Watch: US 10-year yield; Germany DAX index, USDJPYTradingFloor
Monday is a sleepy day for economic news, but don't let that fool you. The market will be closely watching the 10-year treasury yield, Germany's DAX index, and USDJPY for clues about the macro outlook in 2013's second half.

Market Preview: Light macro calendar aheadTradingFloor
European markets are expected to open mostly lower Monday. With little on the global macro calendar today, traders will await the US FOMC minutes and manufacturing and services PMIs across Europe due later in the week for strong cues.

Danske DailyDanske Bank (pdf)
A relatively quiet day today. In the week ahead the most important data releases are flash manufacturing PMIs. It will be interesting to see if European PMIs continue to improve and whether China is already bottoming out. In the US the main focus will be the release of Fed minutes from the July meeting on Wednesday and the Jackson Hole conference for central bankers starting on the same day.

Market comment – Treasury yields rise ahead of Jackson HoleNordea
US 10-year bond yields reach new 2-year high * US consumer confidence surprisingly falls on Friday * Fed´s Fisher would like tapering to have started already * Chinese home prices on the rise * UK growth forecast revised higher * It´s that time of the year again – Jackson Hole * FOMC minutes and Euro zone PMIs on this week´s calendar * Light issuance continues

AamukatsausNordea
Ostopäälliköitä kaikki tyynni * Venäjä: Hiipuu, hiipuu * USA:n kuluttajien luottamus putosi yllättäen

AamukatsausTapiola (pdf)
Pitkien korkojen ero USA:n ja euroalueen välillä on kasvanut merkittäväksi ja se on osaltaan nostanut eurooppalaisten osakkeiden mielenkiintoa. Pitkien korkojen nousu painoi edellisviikolla osakemarkkinoita. Tällä viikolla odotetaan keskiviikkona julkaistavia FED:n kokousmuistioita. Loppuviikosta painavaa dataa euroalueelta. Osakefutuurit nollassa (kts. 20), indikoiden tasaista avausta OMX HEX:iin.


MarkkinakalenteriNordnet
MarkkinakalenteriTaloussanomat


EUROPE 
Latest Greek Corruption Scandal Costs New Privatization Agency Head His JobZH

Scandi markets aheadDanske Bank (pdf)
Issuance in focus and growth outlook improving

UNITED STATES
Summers-led Fed might raise rates faster than YellenReuters
Barring another financial crisis or slide back into recession, the next head of the Federal Reserve is likely to oversee a gradual normalization of monetary policy.

Higher prices sap foreign interest in U.S. real estateReuters
Foreign investors, who rapaciously scooped up U.S. real estate during the 2007-2009 recession, are backing away from the same markets they so eagerly jumped into a few years ago.

The investment problemCoppola Comment
Since the 2008 financial crisis, business investment has fallen considerably. This chart from ONS shows how gross fixed capital formation collapsed in 2007-8 and has remained flat ever since:

Mortgage refinance boom endingSober Look
This slowdown is negatively impacting profitability in the banking sector and even generating layoffs. Moreover, economists are forecasting refinancing activity to shrink further in the next few quarters. The refi gravy train is coming to a stop.

Further fiscal drag poses risks to the US economySober Look
One of the reasons for the slow US recovery has been weaker than usual government spending. The weakness started with fiscal consolidation at the state and local level, driven by sharp declines in tax revenues. The negative impact on the economy is now more pronounced at the federal level. I

ASIA
China's Rising Home Prices UnstoppableForbes

OTHER
A Few Thoughts to Start the New WeekMarc to Market
Four primary drivers shaping the investment climate:  speculation about Fed tapering, stabilization of the Chinese economy, the reflation story in Europe and renewed capital outflows from Japan.  While near-term risks to this scenario are minimal, we are concerned that next month is a different story.  Specifically, we think there are substantial risks that the market will be disappointed by the FOMC.  

While you were busy… - Nordea (pdf)
In this short presentation, we’ve tried to highlight some of the major economic and financial market events that has happened over the past few weeks.

FX Comment: the holesNordea
Jackson Hole Symposium… “taper” is still the major explanation to pretty much anything… The Euro zone NOT out of the woods…but out of recession… Rates on hold until mid 2016? You wish, Mr Carney…. As China bad news have gone mainstream, some positive signs from higher frequency data emerge… Other than that… boring week on the data ahead

A classic late-cycle rotationHumble Student
In the last week or two, the data out of China has been more positive (though not everyone believes the official statistics) and commodity prices appear to have bottomed and they are starting to rally. Meanwhile, the equity uptrend remains intact. These are the classic signs of a late cycle rotation into deep cyclical sectors of the market.

Will Robots Take All Our Blue-Collar Jobs?View / BB

FINNISH
Kumpi pitäisi pelastaa, rahaliitto vai sen jäsenet?Jan Hurri / TalSa
Europäättäjillä on kolme keinoa lopettaa kriisi. Kaksi pelastaisi rahaliiton ja euron mutta uhraisi jäsenmaiden itsenäisyyden, kolmas uhraisi euron mutta pelastaisi jäsenmaiden itsenäisyyden. Näin tiivistää tuore tutkimus, jonka mukaan vaikeiden valintojen väistely pitkittää ja pahentaa kriisiä.

Kysely: Nämä rakenneuudistukset sopivat suomalaisilleYLE
Palkkoihin enintään puolen prosentin korotus: varovainen kyllä. Opintotuen leikkaus: selkeä ei. Näin vastasivat suomalaiset, kun Yle kysyi, mitkä julkisuudessa olleet rakenneuudistusehdotukset suomalaiset olisivat valmiita hyväksymään.

Suvi-Anne Siimes: Eläkeuudistus on kuin makkarantekoaTE

Pääkirjoitus: Suuret sanat jarruttavat muutostaHS
Toivottavasti pian voidaan siirtyä järjestelmään, jossa hallitusohjelma näyttää selvän suunnan eikä vaalilupausten rikkominen kuulosta hyveeltä.

Vieraskynä: Suurten ikäluokkien kato ei mullistakaan työelämääHS
Jaakko Kiander: Vuosina 1945–1949 syntyneet ovat jo pääosin eläkkeellä, mutta pelättyä työvoimapulaa ei ole syntynyt.

Eurovaaliehdokkaana OIli Rehnin pitää jättää komissioVerkkouutiset
Jos EU-komissaari Olli Rehn ryhtyy eurovaaliehdokkaaksi, Suomi tarvitsee uuden "pätkäkomissaarin" ehkä jo pian.

Työministeri lupaili veroporkkanaa, jos palkkaratkaisu on maltillinenMTV3
Työministeri Lauri Ihalainen (sd) toivoo maltillista palkkaratkaisua ja lupailee valtion tulevan vastaan esimerkiksi verotuksessa ja väylämaksuissa.

FK:n Kauppi: Velkaantuminen uhkaa lähteä käsistäVerkkouutiset

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