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EUROPE
POLITICS
New EC
president to support growth and soften future troika programmes – Danske
Bank
EU's
Juncker wins approval with 'grand coalition' program – Reuters
The EU
Summit and the Changing Landscape – Marc
to Market
Monitoring
the globalisation of the EU economy – Eurostat
Portugal Contagion Spreads: Espirito Santo
To Default On Portugal Telecom Loan, Business Lending
Drops Most On Record
– ZH
UNITED KINGDOM
BOE
Carney Sees BIS Disconnect From ‘Reality’ – WSJ
Bank of
England Governor Mark Carney on Tuesday dismissed a call from the Bank of
International Settlements for a quick return to more normal interest rates as
being the product of an organization that is out of touch with reality.
U.K. Inflation Accelerates More Than
Forecast to 1.9%: Economy – BB
EUROPEAN CENTRAL BANK
IMF
Touts Quantitative Easing Benefits for ECB – Reuters
Draghi
Says Banks Shouldn’t Count on Another Carry Trade – BB
The
TARGET2 controversy
– VoxEU.org
The
European debt crisis has triggered debates over the TARGET2 imbalances. This
column discusses gold flows across Federal Reserve districts and points the
similarity of such operations to liquidity flows from Eurozone’s ‘core’ to its ‘periphery’.
Though the institutional setting in Europe differs, important lessons can be drawn from
the US example. Cooperation between regional Reserve
banks was essential for the cohesion of the US monetary union. Such cooperative
spirit will be important for the smooth operation of the Eurozone.
UNITED STATES
Here’s
why Larry Summers is wrong about secular stagnation – WaPo
The
banking industry is paying up for the housing crisis – WaPo
Analyzing
The Impact Of Fed Rate Hikes On Markets & Economy – dshort
Federal
Debt to Reach 106% of Economy in 2039, CBO Says – BB
YELLEN’S TESTIMONY
The Fed’s
Confusing Language on Stock Valuations – WSJ
What Yellen
Did to the Markets, in Three Charts – WSJ
Janet
Yellen Testifies About The Fed's Dovish Future – ZH
Yellen's "Irrational
Exuberance" Moment Arrives – ZH
Goldman
Explains What Yellen Really Said: "Hawkish Shift" – ZH
Yellen: Labor
market healing but economy still needs Fed support – WaPo
Yellen, Fed
Still Worried About Slowdown in Housing Recovery – WSJ
Fed Wants
Better Compliance on Leveraged Loan Guidelines, Report Says – WSJ
Yellen
Uncomfortable With Proposed GOP Legislation for Fed – WSJ
Yellen Says
Continued Easing Needed Amid Job-Market Slack – BB
Highlights:
Yellen's Q&A testimony to Senate Banking Committee – Reuters
JUNE RETAIL
SALES
‘Just Isn’t
All That Great’ – WSJ
Disappoint,
Weak Autos Sales to Blame – dshort
Increased 0.2%
in June – Calculated
Risk
Underlying
strength despite subdued headline growth in June – Danske
Bank
U.S. retail sales, manufacturing data
point at firming economy – Reuters
ASIA
BoJ on
hold and confident about economy’s strength – Danske
Bank
Japanese
GDP "Guesses" Collapsing; Here's The 3rd Arrow That Will 'Save' It – ZH
BOJ
Keeps View Inflation to Accelerate Toward 2% Target – BB
Monitor:
Chinese credit crunch
– Danske
Bank
"Bad
Debt Cannot Simply Be 'Socialized'"
OTHER
Daily Macro
– WSJ
Inflation’s
picking up in the U.K. China’s stepping back on the monetary accelerator and
markets are bouncing around moderately in early trading. Asian equities rallied
on the back of Wall Street’s overnight performance and Chinese credit data. Meanwhile,
Europe was dragged back by fresh worries
about Banco Espirito Santo, which sent the Portuguese bank’s shares diving
another 15% and pushed up yields on the government debt. At the same time,
signs of a softening German economy haven’t helped improve the mood.
Daily Central
Banks – WSJ
Great
Graphic: US and Eurozone Industrial Output – Marc
to Market
Credit
vs equity vs bonds vs history vs the unknown – FT
Chart of
the week: Real interest divergence weighs on growth – Bruegel
The four
countries with the highest real interest rates evidently had the lowest real
GDP growth over the crisis years.
Country
Dividend Yields – Bespoke