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Saturday, October 12

12th Oct - Weekender: Europe and US



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EUROPE
Quarterly Report on the Euro AreaEuropa (pdf)
Focus: Financial dependence and growth since the crisis * Labour costs pass-through, profits and rebalancing in vulnerable Member States * Cross-border spillovers in confidence
Euro Zone Isn’t Rebalancing Strongly, Commission Paper SaysWSJ

The current economic situation in FinlandBIS (pdf)
Mr Seppo Honkapohja, Member of the Board of the Bank of Finland, at the conference "Reform Capacity and Macroeconomic Performance in the Nordic Countries", Copenhagen, 20 September 2013.

Spain’s economy: The worst may be overThe Economist

Europe’s Choice: Risk Stagnation or Pursue IntegrationiMFdirect

The European Stability Mechanism: Gearing up for businessThe Economist

  EUROPEAN CENTRAL BANK
Mario Draghi: Europe not moving towards federal 'super state'The Telegraph
ECB President bids to dispel fears Europe is moving "inexorably" towards a federal "super state"

Stronger Euro Creating Problems for ECB Inflation TargetWSJ
The recent rise in the euro against other major currencies is weighing on southern European exports and reducing an inflation rate that is already well below the ECB’s target, Austrian central bank governor Nowotny said.

The euro area economy - current prospects and challenges aheadBIS (pdf)
Mario Draghi, Economic Club of New York, New York, 10 October 2013.

Euro area economic outlook, the ECB’s monetary policy and current policy challengesECB
Mario Draghi, 28th Meeting of the International Monetary and Financial Committee,
in Washington D.C. on 12 October 2013

The ECB’s New Pressure Tactics on Member States’ TaxpayersPIIE
As President Obama and Congress speed toward each other on a world-rattling collision course, the European Central Bank (ECB) is also replaying its own version of “political chicken” with member states in the European Union these days. At issue is the shape of the common currency’s necessary institutional reforms.

UNITED STATES
Factional conflicts have the power to destroy empires - and republicsThe Telegraph
Ambrose Evans-Pritchard: Bitter fights in Washington are making the US economy look much worse than it is.

  FEDERAL RESERVE
QE works in practice because QE works in theoryMoney Illusion

Fed’s Rosengren: Decision Not to Taper Was ‘Fully Warranted’WSJ

Fed defends ongoing stimulus, admits communications blipsReuters

Ending the debt limit crisis: Dear Ben BernankeReuters
Bernanke could alleviate the debt ceiling crisis simply by canceling the debt held on the Fed’s balance sheet.

The Fed Could Simply CANCEL $2 Trillion of Government Debt ZH

The Fed now holds more securities than all US banks combined Sober Look

  FED: YELLEN
Analysis: Questions Yellen will likely face for Fed confirmationReuters
U.S. lawmakers unhappy with the Federal Reserve will have a prime opportunity to vent their concerns when the Senate Banking Committee vets Janet Yellen as next chair of the Fed, which has become a lightning rod for criticism of policy activism.

Yellen Needs to Tell Politicians to Stop Passing the Buck to the Fednaked capitalism

The Fed’s new boss: The dove v the desperadoesThe Economist

The new head of the Federal Reserve: Dove ascendantThe Economist

  SHUTDOWN / DEBT CEILING
The shutdown is a total disaster for the GOPWaPo

The shutdown probably won’t hurt Republicans in 2014. Here’s what will.WaPo

Forward Bill Yields Spike At Can-Kicking Debt-Ceiling DeadlineZH

Three options for ending the debt-ceiling crisis… forever!WaPo

Republicans Narrow Demands for Increasing U.S. Debt LimitBB
House and Senate Republicans are starting to narrow their demands for health-care law changes in the U.S. fiscal impasse as they prod President Barack Obama to attach such revisions to a bill to end the government shutdown.

  MACRO NUMBERS
The "Hard" Data Doesn't LieZH
On the one hand, soft surveys such as the ISM manufacturing index have pointed to robust economic growth. On the flip side, hard economic data have been disappointing.

Consumer Confidence Misses Expectations; Slumps To Lowest Since January – ZH
Consumer Sentiment Dropped in Early October – WSJ
Preliminary October Consumer Sentiment decreases to 75.2 – Calculated Risk
Vital Signs: Shutdown Shaves Sentiment – WSJ