EUROPE
A mutual learning
process is now essential. The south, as it adapts to the social market economy,
must be more determined in pursuing fiscal discipline and structural reforms.
Likewise the north, Germany in particular, must appreciate that such efforts by
the south are unlikely to generate sustainable improvements unless Europe’s
policy framework becomes more growth-friendly.
EU summit: Will
anyone be signing contracts? – Brussels
blog / FT
Merkel's reform
contracts pushed back until October – euobserver
…whether summiteers would sign up to a German-backed plan that would
require all eurozone countries to sign annual contracts with Brussels obligating them to
liberalise their economies… With opposition
growing in both the north and the south, the draft communiqué does what the EU
does best: it puts off the decision for another six months. Part of the reason,
senior EU officials acknowledge, is that they’re loath to approve more control
of economic policy from Brussels ahead of May’s European parliament elections,
Stagnant German
Wages Spell Bad News for Euro Zone – WSJ
Earnings, including wages and bonuses, grew by just 1.3% over the year
ending in the third quarter, and earnings adjusted for inflation fell 0.3%...
Germans go on holiday
highly confident about economy – TradingFloor
Weidmann says hard to
steer banks' use of ECB loans – Reuters
The IMF’s Ajay Chopra says that burdening Irish taxpayers with having to
support bust banks while paying back senior bondholders was unfair
CREDIT RATINGS
S&P cuts EU long-term rating to AA+ – Reuters
EU Stripped of AAA Credit Rating at S&P – BB
U.K. Keeps Top Rating at
S&P as Debt Seen to Peak Earlier – BB
EU And UK’s Complex Ratings Game – WSJ
BANKING UNION
How to shutter a bank
in Europe – Brussels
blog / FT
The German banking
union
– Open
Europe
A deal is positive and necessary. That said, the process remains
incredibly complex and still seems highly national or intergovernmental. If
there was a serious failure of a large cross border bank, such as we saw with
Dexia, would the process really be any smoother or simpler than last time
around?
Banking union falls short of EU goal – FT
Banking union is a sham that solves nothing – FT
European banking union is a disappointment – FT
EU banking union: progress of sorts – FT
Latest agreement still
some distance from a fully-fledged banking union – Europp
/ LSE
The current agreement still reflects many of the problems which have
existed since this period, such as the exclusion of German savings banks from
the proposed supervisory system.
The Fox and the ECB – Project
Syndicate
Danièle Nouy, who has
just been named the ECB’s first head of banking supervision, faces a difficult
task ahead in overseeing some 130 banks that account for 80% of eurozone
assets. Though Nouy is knowledgeable and highly capable, the ECB’s
decision-making mechanisms are poorly suited to the role of banking supervisor.
UNITED STATES
GDP Q3 Third Estimate: Upside Surprise at 4.1% - dshort
Highlights from the Third-Quarter GDP Revision – WSJ
Q3 GDP Revised up to 4.1% - Calculated
Risk
GDP Revision Smashes Expectations – ZH
GDP grew a whopping 4.1 percent in the third quarter – WaPo
GDP Q3 Third Estimate: Upside Surprise at 4.1% - dshort
Economists React: Third-Quarter GDP ‘Downright Impressive’ – WSJ
Main Reasons For "Upward Revised" Q3 Personal Spending:
Healthcare And Gasoline – ZH
Economists React: Third-Quarter GDP ‘Downright Impressive’ – WSJ
ASIA
From Australia’s
Central Bank Governor, A Cry for Help – WSJ
Australia’s central bank
governor seems to be at the end of his tether. Eight interest rate cuts over
the past two years have brought the country’s benchmark interest rate to record
lows, but have failed to spark a broad-based economic recovery. Cutting them
more might push an already frothy housing market over the edge. Now, Glenn
Stevens says, it’s up to the government to provide the spark for recovery.
Search For Yield – Short Side of Long
Australian shares yielding substantially more then cash * Investors
continue to search for yield in the ZIRP environment * Yes… believe it or not –
Australian property can decline in price! *
China’s liquidity
condition is tight and the benchmark 7-day repo rate jumped to 10% at one
point. However, we still believe this time is different from the credit crunch
in June. The market is likely to calm down in the coming week. No radical
action is expected from the PBoC, which aims deleveraging the economy withoutn
causing market panic.
The most recent spike in money market rates will probably be temporary
as in June. However, the increase in money market rates and government bond
yields over the past six months also reflects a conscious tighter monetary
policy by PBoC and this will gradually weigh on investment demand and growth
next year.
BOJ
MEETING
Japan Govt Likely to Drop Word “Deflation” from Report – WSJ
BoJ signals it will
not necessarily ease on weaker data after sales tax hike – Danske
Bank
BoJ: the glass is half
full – BNP
Paribas
BoJ hails Fed
tapering, sticks with its own massive stimulus – Reuters
OTHER
After months of talking, writing, thinking and even dreaming about
tapering – the day finally arrived when the Fed announced that it would reduce
its monthly bond purchases. Although most Emerging Market currencies eased
against the stronger USD, the overall reaction was still fairly subtle and did
in no way resemble the jumps seen in May when the Fed first hinted at tapering.
EMEA Weekly, Week 52 – Danske
Bank
FINNISH
Pankkiunionista on tulossa halvaantunut – Henri
Myllyniemi / US
VM: Suomi on pian yksi euroalueen
ylivelkaisista – TalSa
Suomi on
osallistunut Euroopan vakausmekanismi EVM:n ja rahoitusvakausvälineen ERVV:n
rahoittamiseen merkittävillä summilla. Ilman näitä solidaarisuustoimia Suomen
julkinen velka ei ylittäisi
enimmäisrajaa.
Aamukatsaus: Työttömyyskö nitistää Suomen
asuntomarkkinat? - Nordea
Lisäksi:
Kaikki tietävät, että korot nousevat
Eero Lehti: Yle-veron tarkoitus tuhota
SDP-vastaiset maakuntalehdet – Verkkouutiset
Marraskuun
työttömyysaste 7,9 prosenttia – Tilastokeskus
Konkurssien
määrä kasvoi tammi-marrask. 5,1 prosenttia YoY – Tilastokeskus