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Tuesday, May 27

27th May - Bull day, ECB's meeting continues



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 EUROPE
  ELECTIONS
EU leaders cannot simply ignore the populist howlFT
Gideon Rachman:  The argument that the protest vote is too weak and incoherent to merit a response is flawed

European elections: The expected wake-up callNordea
EU/euro-sceptic parties are the strongest political force in several EU countries. These parties represent strong minorities, but they are quite far away from representing a majority. Euro-breakup is still a very distant scenario, but uncertainty about future political orientation and economic policy in countries such as Greece and France has risen.

A grand coalition for Europe but eurosceptics increase political noiseDB Research
The eurosceptic parties increased their share substantially but winning parliamentary representation is not equivalent to gaining actual political influence.

Could an Anti-EU Vote Be Good For Markets?WSJ
E.U. governments know that without economic recovery the anti-E.U. tendency will only grow. To that end they’re likely to ease political roadblocks that have so far hamstrung the ECB.

Europe and Anti-EuropeProject Syndicate
The European Parliament election made it clear that there are now two Europes: one in which the logic of integration is deeply embedded in the sociopolitical order; and one that rejects the basic assumptions of pooled sovereignty. And, as the results in Britain and France show, an imperial legacy can align countries with the latter camp.

  EUROPEAN CENTRAL BANK
Implications of negative rates - the Danish experiencesDanske Bank

Draghi spells it outThe Economist

Euriborderline insane?Macro Man

Complete the sentence: Mario Draghi is...? Saxo TV
ECB obsessed with the EUR strength, missing everything else.

ECB Conference Brings Policy Clues and Inflation Target DebateWSJ

At ECB Conference, Krugman Attacks Inflation TargetWSJ
The case that 2% turns out to be too low a target is quite compelling, Krugman said.

Krugman gives Draghi some advice FT
It only took a few hours for Mario Draghi to join the list of names at Sintra saying no to Prof Krugman’s calls for a higher inflation target.

Can Mr. Draghi Actually Do Anything About Inflation?WSJ

Draghi and the case for securitization FT
Draghi’s Asset-Backed Drive Rouses Academic SkepticsBB


ECB goes on 300 million euro spending spree for bank watchdogReuters
ECB will spend 300 million euros this year and next in building an elite group to monitor top banks, with the lion's share spent on generous pay for many of its staff.


UNITED STATES
  MACRO NUMBERS
Durable Goods Orders in U.S. Unexpectedly Increase – BB
Durable goods orders rise on defense, but business spending plans weak – Reuters
Durable Goods Bounce On Defense; Machinery Goods Drop; CapEx Slides 1.2% - ZH

Home Prices in 20 U.S. Cities Rise at Slower Pace in March – BB
Home Prices End Four-Month Losing Streak, Rebound More Than Expected In March – ZH
Comment on House Prices: Real Prices, Price-to-Rent Ratio – Calculated Risk

U.S. services sector expands at faster pace in May: Markit – Reuters
US Service PMI Surges Near Record High As Margin Pressures Appear – ZH

Richmond & Dallas Fed Miss; Manufacturing Outlook Plunges – ZH

Consumer Confidence Advances to Second-Highest Since 2008 – BB
U.S. consumer confidence rises in May – Reuters
Consumer Confidence Falls Short Of Weather-Peak; Plans To Buy A Home Drop – ZH

OTHER
Time for a growth scare? Humble Student

Currency OverviewShort Side of the Long
Global EM currencies have been the centre of attention in media * EM currency index has been rallying despite media negativity * Euro suffered a sharp sell off at overhead resistance * New Zealand Dollar is the new commodity currency darling * USD has been weak against EU currencies but strong elsewhere

Daily central bank summaryWSJ
Hilsenrath’s Take: BOJ’s Kuroda Awakening to His Limits? * Kuroda Signals Impatience with Abe Government * Former Fed Official Sack Calls for Decisions on Rate Hike Mechanics in Coming Months * Draghi Warns of Ultralow Inflation Risk * Federal Reserve Lacks Official to Oversee Regulatory Efforts

Markets Calm, Still No EarthquakeMarc to Market
The weekend elections are noteworthy, but will likely keep the status quo intact.   And this means the main moving part of the investment climate is what the ECB does next week. 

FINNISH
Suomi: Ja sitten sopeutetaan julkinen talous uudelleenNordea
Joskus asiat tehdään ensin väärin. Tulee kalliiksi, jos aluksi tuhotaan jotain arvokasta ja sitten vielä työ joudutaan tekemään alusta asti uudelleen.

"Tämä on karua kertomaa Kataisen näytöistä"TE

Kovaa kritiikkiä: Suomen talous on markka-ajaltaTalSa
Suomen talouden rakenteet ovat vanhanaikaisia ja Suomi sopii heikosti eurojärjestelmään. Näin suomii sijoituspalveluyhtiön päästrategi.

Timo Soinille varoitus omalta kansanedustajaltaUS

Mitä meidän pitäisi oppia eurovaaleista?Professorin ajatuksia

Suomen Sosialidemokraattinen Puolue ja vaalimenestysTyhmyri
Paluu perusasioihin voisi auttaa