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Tuesday, May 13

13th May - New SPX ATH, EUR settling down



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EUROPE
A Fragile Rebound for EU Image on Eve of European Parliament ElectionsPEW
EU Favorability Rises, but Majorities Say Their Voice Is Not Heard in Brussels

European Companies Write Off Half A Trillion Dollars Due To "Culture Of Late Payment"ZH

The BOE’s Difficulties Start With the First HikeWSJ
No Regular Hump Day for the UK TomorrowMarc to Market

Overvalued Greek equities are sharply down and will fall furtherTradingFloor

Once Europe's lead preacher of budget prudence, Finland loses righteousnessReuters

German Investor Confidence Drops for Fifth Straight MonthBB

  EUROPEAN CENTRAL BANK
ECB delays will prolong the price stability painFT

Groundhog day (ECB)Antonio Fatas
It is hard to know how much the wait-and-see attitude of the ECB is a sign of a compromise to acknowledge the threat of low inflation even if there is no consensus on how to deal with it or a truly cautious approach to dealing with challenging economic times.

The ECB plans to ease, but how?Money and Banking
If the ECB is serious about raising inflation expectations and returning inflation to its target over the medium term, a weaker euro appears to be the simplest, most effective route (as one of us previously hinted), but the value of the euro itself is neither a current nor a likely future objective of ECB policy.

Currency 'Cold War': Euro Until The Next ECB Meeting - BofA MerrilleFXnews
The ECB has now officially joined the increasing list of central banks directly or indirectly targeting their exchange rate since the global financial crisis

Strong euro may be a monster Draghi can’t tameMacroScope / Reuters

Eurozone deflation: A survey of UK-based macroeconomistsvoxeu.org
Although Eurozone inflation has persistently surprised on the downside and has been below 1% since October 2013, the UK macroeconomics profession is not convinced that this heralds a deflation. In the second monthly survey by the Centre for Macroeconomics (CFM), summarised in this column, a small majority of respondents do not think there is a significant risk of Eurozone deflation in the next two years. But nearly two thirds of respondents to the CFM survey think that sustained Eurozone deflation would pose a significant threat to the UK recovery.

Bundesbank ready to support ECB action if it is needed: Sources – Reuters
Bundesbank Puts the Reality of ECB Stimulus ‘Into Words’ – WSJ
Bundesbank Support for ECB Stimulus Not to Be AutomaticBB

UNITED STATES
Retail Sales increased 0.1% in April – Calculated Risk
April Advance Retail Sales: A Major Disappointment – dshort
Retail Sales Miss Expectations – Bespoke

ASIA
China Slowdown DeepensBB
Economists React: China Slows DownWSJ
China’s economic slowdown deepened with unexpected decelerations in industrial-output and investment growth and a decline in home sales, testing policy makers’ reluctance to step up monetary stimulus

OTHER
Grand CentralWSJ
Housing Unlikely To Alter BOE’s Course * Bundesbank Open to Significant ECB Stimulus if Inflation Forecasts Lowered * Sen. Paul Threatens to Delay Confirmation Votes for Three Fed Nominees * Could RBI Governor Rajan Be Ousted By a New Government? * Lew Urges China to Move to Market-Determined Exchange Rate

Macro HorizonsWSJ
Data Show How Much Slack Still Exists in Global Economy

Dollar AdvancesMarc to Market

FINNISH
YhteisvaluuttaliittovaltioAntero Vartia / US

Helsinki-Tallinna - epäsymmetrinen shokki, miten käy Helsingin?Kimmo Saarikko / US

Taloudessa on vaihtoehtojaPohjolan Sanomat
Devalvaatiohan on aina korjannut vientiteollisuuden kilpailukyvyn ja aina kansalaisten kustannuksella.

Cambridge-tutkija Sakari Puisto: Euro ei jousta, joten työttömyyden on joustettavaSakari Puisto / PS

Euron synnyttäminen oli ”harkittu rikos”PS

Kiinan maltillinen hidastuminen jatkunutRoger Wessman