21st May - BoJ, BoE, Fed

Previously on MoreLiver’s:

Tuesday: Negative tones played

Monday: Negative tones played

W/E: Off-Topic & Finnish

W/E: Geithner, Markets & Economics

W/E: The World Links

W/E: Weekly Support (updated)

W/E: Best of the Week

Special: Euron tulevaisuus - Suomen vaihtoehdot

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EUROPE

Great Graphic: UK Housing Market Problem? – Marc to Market

London may have a housing market problem, but it is not a generalized condition. 

Euro-Zone Bonds Start To Look Queasy – WSJ

Yields, which had fallen substantially since the start of the year, have started to pick up again.

EZ consumer confidence improves to -7.1 from -8.6 – EC

Will the ECB shoot itself in the foot? – CNBC

  ELECTIONS

High importance but low interest - what to expect from the European elections – Merkelnomics

Do Europeans Really Fear Migrants? – Project Syndicate

Though right-wing populists are set to make substantial gains in the upcoming European Parliament election, it would be a mistake to conclude that migrants' mere presence in Europe fuels support for extremists. On the contrary, it is the absence of effective policies to manage migration that has alienated European voters.

The EU Parliament is a failed experiment in pan-European democracy – Europp / LSE

National parliaments are the key to solving the democratic deficit

  UNITED KINGDOM

BOE’s Bean Says Crisis Shows Worse Things Can Happen Than You’d Imagine – WSJ

BOE Says Interest-Rate Arguments Becoming ‘More Balanced’ – BB

Stimulus Exit No Easy Job, Says Bank of England’s Bean – BB

U.K. Retail Sales Surged in April as Discounting Boosted Food – BB

UNITED STATES

A case of bad breadth? – Humble Student

Despite the positive performance of the A-D Line, other breadth indicators are flashing warning signals. Don`t say that you were not warned.

  FEDERAL RESERVE

Dudley Revisits Exit Strategy – Tim Duy’s Fed Watch

Dudley reinforces expectations that the low rate environment will persist long into the future. The data flow is not providing reason to think otherwise at this point; we would need to see higher inflation numbers coupled with real reason to believe labor market slack was rapidly evaporating, probably in the form of stronger wage growth. It remains interesting that the Fed does not view their own outlook as reason to accelerate the pace of activity. They seem relatively content to accept what they themselves acknowledge is an ongoing disappointment. 

Conviction for U.S. inflation rise strengthens: Reuters poll – Reuters

Low U.S. inflation is slowly advancing and will reach 2 percent by late this year, according to a Reuters poll of economists that underscores how the Federal Reserve may soon come under increasing pressure to raise interest rates.

What you should pay attention to in the Fed’s very busy week – WaPo

Fed Sees No Inflation Risk in Stimulus Policies – BB

Fed’s Dudley: Notable Part of Labor Force Drop Due to Discouraged Workers – WSJ

Kansas City Fed President Touts Decentralized, Diverse Fed – WSJ

Kocherlakota: Fed Doing a Bad Job Of Meeting Job, Inflation Goals – WSJ

Yellen: Yankee Legends, Fed Officials Shouldn’t Be Afraid to Swing and Miss – WSJ

  FOMC MINUTES

FOMC Minutes: Monetary Policy Normalization Discussion – Calculated Risk

FOMC Minutes Show Fed Fears No Inflation Risk; Worries About Complacency, Discusses "Low Level Of Volatility" – ZH

Hilsenrath Sums Up The Fed Minutes In 2 Words "Exit Strategy" – ZH

Key Passages: Read the Federal Reserve Meeting Minutes in Just a Minute – WSJ

Fed begins policy exit talks, split on view of U.S. job market - Reuters

ASIA

Australian Consumers’ Downbeat Mood Revives Talk of Rate Cuts – WSJ

BOJ offers brighter view on economy, dashes near-term policy easing hopes – Reuters

The Bank of Japan kept policy steady on Wednesday and painted a slightly more optimistic view of the economy, dropping a reference to the country being in deflation and further dashing expectations it will offer more stimulus any time soon.

BOJ Refrains From Easing With Signs Japan Weathering Tax Rise – BB

Japan’s central bank refrained from boosting stimulus and raised its view of business investment as the economy shows signs of weathering the impact of the first sales-tax increase since 1997.

Bank of Japan on hold but too early to be complacent – Danske Bank

OTHER

Weekly Bond Update: Is the tide finally turning? – TradingFloor

A Ten-Step Program for Understanding Emerging Markets – View / BB

Yen and Sterling Day – Marc to Market

The US dollar has slumped to a new three month low against the Japanese yen…Sterling is the other big mover today. The combination of stronger retail sales (three times stronger than expected) and BOE minutes that showed some officials see a case for a rate hike getting stronger, lifted sterling

Macro Horizons: U.K. Retail Sales Soar; BOE Getting Close to Raising Rates? – WSJ

Grand Central – WSJ

Schlesinger’s Take: Japan’s Tax Threat Recedes: New Problems, Tough Policy Choices For Autumn * Dudley: No One Can Say When Fed Will Raise Rates * BOE Minutes Show First Hint of Votes to Raise U.K. Rates * BOJ Upgrades View on Capital Spending * Senior BJP Leader Favors Replacing RBI’s Rajan

FINNISH

EU haaskaa verorahojasi – Sampo Terho

Asuntojen hinnat ovat kohtuullisia – Kai Nyman / Piksu