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Friday, November 22

22nd Nov - German outperformance



Previously on MoreLiver’s:

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EUROPE
German Court Won’t Rule This Year on Legality of ECB Bond BuyingWSJ

German current account surplus shrinking: Finance MinistryReuters

German growth not low enough to trigger policy changeNordea
Domestic-led third-quarter growth bolsters Germany in showdown over tradeReuters


German Q3 growth rises 0.3% on government consumption, investmentTradingFloor

German Ifo points to growth accelerationMerkelnomics
 

Mario Draghi speech “The future of EuropeECB

UNITED STATES
Corporate credit markets back to frothy levels Sober Look

Fed Dove-Hawk ScaleThe Big Picture

Fed’s Bullard: Rush To Zero Percent Funds Rate May Have Been Mistake – WSJ
Fed’s Lacker Says Tapering Decision in ‘Coming Months’ Is as Precise as Possible – WSJ
Fed’s Bullard Favors Central Bank Putting Floor Under Inflation – WSJ

ASIA
China’s Looming Social Security CrisisThe Diplomat

Chart – why are China gov’t bond yields rising?Shadow PBOC
China gov’t bond yields have reached the highest in almost 10 years. 10-year CGB is trading at 4.7%, almost 100 bps higher than its level 4 months ago.

Where's the short-term pain in China?Humble Student
I had expected the reforms unveiled at the Plenum was supposed to be a story of short-term pain for long-term gain…There are no free lunches and there is a cost to this policy. Growth has to slow and there will be losers and winners under the new policy. The way I see it, there are two distinct sets of losers under the latest round of reforms:
           
The Australian Dollar: Thirty Years of FloatingRBA
RBA Governor Glenn Stevens Speech to the Australian Business Economists' Annual Dinner

Trapped by Fed Policy, Australia Ponders Precedent-Setting Currency InterventionWSJ

Australian Dollar Extends DeclineWSJ

OTHER
FI Viewpoint: How to lose your risk appetiteNordea
The ECB’s AQR to lead to a reduction in risk appetite * Euro-zone economy losing momentum – the ECB not about to ease further at least in the near future * Time to take profit on EUR government bond markets – spreads to widen before the end of the year * Valuation in bank credit spreads looking challenging

Goldman's Global Leading Indicator Collapses Into SlowdownZH