Here
are the ”best” from my posts of the ending week. Last week’s edition here.
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EUROPE
Positive PMIs for May,
ECB’s stance unchanged – TradingFloor
After the Asian positive surprises, the European purchasing
manager index remained elevated as well. Germany's
service sector boom and France's
return to contraction were the main news, opening up a threat of political
trouble while keeping the ECB's stance largely unchanged.
Sarko drops a bomb
– Open
Europe
At least half of EU powers should return to member states
Europe's Soaring Revulsion Against "Europe" In One Chart – ZH
At this rate one more election and the Eurosceptics will be
the single largest political block in a "United" Europe.
HOW THE EURO
WAS SAVED: FT SPECIAL
‘It was the point
where the eurozone could have exploded’ – FT
In the first part of a series on the year that forever
changed Europe, Peter Spiegel recreates three bitter
days in November when the eurozone crisis hit its lowest moment
Inside Europe’s Plan Z – FT
In the second instalment of a series on the year that
changed Europe, Peter Spiegel reveals how a secret
strategy was developed to contain the firestorm from a Greek exit.
‘If the euro falls, Europe falls’ – FT
In the third part of a series, Peter Spiegel examines Angela
Merkel’s deft political moves that led to the end of the crisis
EUROPEAN CENTRAL BANK
Charting Europe’s
Japanification – FT
Credit Suisse: The lessons from Japan
suggest that policy action in coming months may be critical for a recovery in
inflation.
ECB's Mersch says chances for June action grown
substantially – Reuters
There were increasing signs on Monday that the European
Central Bank will add more stimulus to the euro zone economy at its June policy
meeting as inflation remains stuck at very low levels.
Where could ECB interest rates go? – Money
Matters
UNITED STATES
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.
ASIA
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.
OTHER
Special: Timothy
Geithner – MoreLiver’s
FINNISH
Onko euro Suomelle siunaus vai kirous? – HS
/ Perässähiihtäjä
Populismin nousu on euroeliitin oma vika – Jan
Hurri / TalSa
Ensi viikon
eurovaaleissa tyytymättömän kansan kiukkuiset äänet kasvattavat protestipuolueiden
kannatusta, jos kannatuskyselyt pitävät kutinsa. Vanhat valtapuolueet pysyvät
vallassa mutta entistä heikompina. Valtaeliitti pelkää ja paheksuu populismin
nousua – vaikka se on euroeliitin oma vika.