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Wednesday, November 6

6th Nov - Europe sounds tight




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EUROPE
Angela Merkel will soften her stance on austerity and debt mutualisation, regardless of whether German citizens support it or notEuropp / LSE

Europe’s Non-Rhetorical ValuesProject Syndicate
Vague and misleading rhetoric is hampering productive discussion about Europe’s future. Indeed, the flawed notion that “more Europe” is the only solution to European countries' troubles is overshadowing the values – like subsidiarity and individual liberty – that European institutional arrangements are supposed to serve.

Results of the Euro Money Market Survey 2013ECB

Periphery business cycle monitorDanske Bank
Euro area periphery countries have shown great improvement in sentiment during 2013 and in line with that sovereign spreads have tightened
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  EUROPEAN CENTRAL BANK
Easing now or later?Bruegel
Given the current shape of the economy, the case for keeping the rate unchanged is weak; it would be difficult to argue against a sooner rather than later easing of monetary conditions in the euro area for the sake of faster recovery and price stability.

BofA Warns "Further Euro Appreciation Is A Problem"ZH

UNITED STATES
  FEDERAL RESERVE
Fed’s Framework for Monetary Policy –Recent Changes and New QuestionsFED
…some have suggested that the sustained period at the effective lower bound points to the need for central banks to establish a different policy objective, such as a higher inflation target or a nominal income target. We use our small-scale model of the U.S. economy to examine the potential benefits and costs of such changes. We also discuss the broad issue of how central banks should integrate financial stability policy and monetary policy

Fed Forward Guidance Proves Effective, NY Fed Research Says – WSJ
U.S. Economy Slack Justifies Stimulus, Top Fed Staff Papers Show – BB
Fed’s Williams: Jobs Growth a Key Question for Bond-Buying Program – WSJ
Fed’s Williams Says Economic Data Disappointing With No Pickup – BB
Fed should cap bond buys when confident on momentum: Williams – Reuters
Fiscal mess should not deter U.S. Fed stimulus pullback: Lacker – Reuters
Fed’s Pianalto: Hopes Growth Will Pick Up Soon To Allow Taper To Happen – WSJ

  October Non-Manufacturing ISM
October Report – ISM
October Saw Faster Growth Than Expected – dshort
55.4 indicates faster expansion in October – Calculated Risk
Beats Expectations Sending Bond Yields Higher – Mish’s
U.S. service sector growth quickens in October: ISM – Reuters
Surprise Services Pickup Shows Overcoming Shutdown – BB
ISM Services Surprises to the Upside – Bespoke

ASIA
Bubble Trouble Seen Brewing in Australia Home PricesBB

Japan October Services PMI – Markit
Fastest private sector activity growth on record

OTHER
Recovery on track despite US hiccupDanske Bank
US and Euro to gain pace in 2014 as China slows a bit again

FINNISH
Talouden alakulo jatkuuEK
Suomalaisyritysten suhdanteet pysyivät heikkoina kesän lopulla ja syksyn alussa. Millään päätoimialalla – teollisuudessa, palveluissa tai rakentamisessa - ei nähdä suhdannetilanteen kirkastumista myöskään lähitulevaisuudessa.