Roundups &
Commentary
Frontrunning – ZH
Overnight: Earnings Season Starts With Government Still Shut; 9 Days
Till The Debt X-Date – ZH
The Lunch Wrap – alphaville
/ FT
Emerging N.Y. headlines – beyondbrics
/ FT
EU daily news – Europa
Daily press summary – Open Europe
CDU/CSU
clashes with European Commission over EU migrants and benefits; CDU/CSU
spokesman: Commissioners are as far removed from reality ’as the moon from the
earth’
Morning Bond Update – TradingFloor
Dollar Mixed, Market Looking Elsewhere for Inspiration – Marc
to Market
EUROPE
Financialisation is on the march again – euobserver
The scheme, presented
by the European Investment Bank and the European Commission to the Council of
Ministers back in June, involves risk-sharing, whereby EU member states would
contribute a portion of their EU budget funds for 2014-2020 in support of
lending to small- and medium-sized enterprises (SMEs).
Germany’s Bundesbank is not afraid of playing the role of bad fairy. Last week,
it criticized rules that encourage euro zone banks to load up on their own
governments’ debts.
The causes of the
Eurozone’s slow growth are much debated. This column argues that fiscal
consolidation will be less of a drag going forward but that the ongoing
recovery remains fragile. A policy strategy is needed to support the recovery
based on three mutually reinforcing elements – reducing policy uncertainty,
repairing the financial system, and undertaking structural reforms.
Seigniorage – the good old fashioned way! – Bawerk
Of the national
central banks printing cash over their quota. Or where is the ECB money going
to?
MACRO
NUMBERS
Periphery business cycle monitor – Danske
Bank (pdf)
Euro area periphery
countries continue to show improvements in sentiment, although a setback in
some indicators in September underlines the fragility of the recovery. Sovereign
spreads have continued to tighten on the back of a decline in political risk
German new orders
disappoint in August – Merkelnomics
German Factory Orders
Unexpectedly Fall on Weak Recovery – BB
Sputtering German
trade engine points to modest growth – Reuters
UNITED STATES
Joseph E. Stiglitz: Five Years in Limbo – Project
Syndicate
The US financial system may be more stable than it
was five years ago, but that is a low bar – it was teetering on the edge of a
precipice. Those in government and the financial sector who congratulate
themselves on banks’ return to profitability and mild regulatory improvements
should focus on what still needs to be done.
ASIA
Not long ago analysts
were pondering whether China could meet its 7.5% growth target for the
year. Now, after a series of happy surprises on the economic front, the
question is how far third quarter growth will exceed that goal.