EUROPE
Coalition talks to
form a new government for Germany started yesterday. Policy agreements are to be
found in twelve working groups. A total of 75 politicians
from both camps will participate.
According to the daily, the German Chancellor hopes to use the October
24-25 EU Council meeting to convince the other leaders to rally around a new
strategy for joint liquidations, a key component of the banking union
EUROPEAN CENTRAL BANK
Stress, Stress,
Stress
– MacroScope
/ Reuters
ECB is caught between the devil and the deep blue sea. Come up with a
clean bill of health as previous discredited stress tests did and they will
have no credibility. So it is likely to come down on the side of rigour but if
in so doing it unearths serious financial gaps, fears about the euro zone would
be rekindled and there is as yet no agreement on providing a common backstop
for the financial sector.
ECB starts
comprehensive assessment in advance of supervisory role – ECB
Comprehensive assessment
note
– ECB
Single supervision
mechanism – ECB
ECB, on new mission,
sets out tougher bank health tests – Reuters
The ECB promised on Wednesday to put top euro zone banks through
rigorous tests next year, staking its credibility on a review that aims to
build confidence in the sector.
Highlights: ECB's
financial stability chief on bank health tests – Reuters
Factbox: Details of
health check of euro zone banks – Reuters
Eurozone bank shares
fall after ECB outlines health check plan – FT
ECB Says Bank Review
to Be More Credible Than Before – BB
The ECB’s probe into the health of Europe’s banks will be more
credible than previous exercises because the institution itself will have to
deal with the outcome, the official overseeing the test said.
Verdict looms on
legality of ECB bond purchase programme – TradingFloor
Juhani Huopainen: Remember last June's hearings at the German
Constitutional Court on the legality of Mario Draghi's bond-buying
programme? The ruling should be out any day now. The tail risk scenario is that
OMT is killed off.
UNITED STATES
Q&As on next
episodes of the US fiscal soap opera – Nordea
Once again Congress has merely kicked the can down the road for a few
months. However, despite the recent reckless behaviour in Congress we believe
that the next episodes of the US fiscal saga will
prove much less disruptive than the drama that just ended (summary).
Economic activity
during the shutdown and brinkmanship – CEA
…consistent with a 0.25 percentage point reduction in the annualized GDP
growth rate in the fourth quarter and a reduction of about 120,000 private-sector
jobs in the first two weeks of October…could understate the full economic
effects of the episode to the degree it continues to have an effect past
October 12th.
ASIA
The Wall Street Journal’s China Econtracker – now enhanced so that you
can plot two economic indicators simultaneously – lets you follow the ups and
downs of the world’s second-largest economy in real time.
Of 70 cities measured, prices in 69 were on the up, some by 16-plus per
cent year on year. That’s bubble territory, surely? But take a look at wages,
inventories and developers’ sales and you might think the bubble is deflating
or has even popped already.
Economists at the IMF warn that Japan's plans to revive
the economy through monetary policy could hit a wall unless more fundamental
reform measures take their place.
OTHER
Five Points for Hump
Day
– Marc
to Market
FINNISH
Saksalaisten makromiesten laskelma – Juhani
Huopainen
HS:n gallup: Perussuomalaisten kannatus
ohitti kokoomuksen –
MTV3
Perussuomalaiset nousi kakkoseksi ohi
kokoomuksen – HS
Epävarmojen
osuus on noussut, puoluekannastaan täysin varmoja on enää 36 prosenttia
Korkman: Toiveajattelulle rakennettu euro oli
rohkea hyppy tuntemattomaan – Verkkouutiset
Aalto-yliopiston
professorin Sixten Korkmanin mukaan rakenteilla oleva Euroopan pankkiunioni ei
saa johtaa moraalikatoa aiheuttavaan yhteisvastuuseen, vaan sijoittajavastuun
tiukkaan toteuttamiseen.
Tämän takia myös EKP:n stressitestit
lässähtävät – TalSa
Jan Hurri: Eurovaltiot
eivät hevin pääse sopuun, kuka vastaa suurpankkien tappioista ja kenen on
pantava uutta pääomaa pankkien taseiden tilkkeeksi. Niin kauan kuin maksajasta
ei ole tietoa, tuskin edes EKP uskaltaa toteuttaa pankeille niin tiukkaa
kuntotestiä kuin näiden todellisen tilan selvittämiseksi olisi tarvis. Niinpä
seuraavakin pankkitesti lässähtää.
Urpilainen: Suomelta ei saa viedä
budjettivaltaa – TalSa
Valtiovarainministeri
Jutta Urpilaisen mielestä jokaisen maan on vastattava omista veloistaan ja
taloudestaan. Hän pelkää, että Euroopasta on tulossa maailman sairas maanosa.
Ohjelmassa keskustellaan siitä, mitä
vaihtoehtoja Suomella voisi olla politiikassaan, jos se ei kuuluisi EU:hun.
Haastateltavana on Itsenäisyyspuolueen varapuheenjohtaja Jarmo Nevalainen ja
toimittaja on Maija Elonheimo