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Tuesday, July 15

15th Jul - BoE: 'BIS crazy', Fed: slight hawkishness




Previously on MoreLiver’s:

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EUROPE

  POLITICS
New EC president to support growth and soften future troika programmesDanske Bank

EU's Juncker wins approval with 'grand coalition' programReuters

The EU Summit and the Changing LandscapeMarc to Market

Juncker approved, Hague out, Lord Hill to Brussels: what does it mean?Open Europe

Monitoring the globalisation of the EU economyEurostat

Portugal Contagion Spreads: Espirito Santo To Default On Portugal Telecom Loan, Business Lending Drops Most On RecordZH

  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 ECBReuters

Draghi Says Banks Shouldn’t Count on Another Carry TradeBB

The TARGET2 controversyVoxEU.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 stagnationWaPo

The banking industry is paying up for the housing crisisWaPo

Analyzing The Impact Of Fed Rate Hikes On Markets & Economydshort

Federal Debt to Reach 106% of Economy in 2039, CBO SaysBB

  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
Fed's Yellen says U.S. recovery incomplete, defends loose policy – Reuters
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 strengthDanske Bank

Japanese GDP "Guesses" Collapsing; Here's The 3rd Arrow That Will 'Save' ItZH

BOJ Keeps View Inflation to Accelerate Toward 2% TargetBB

Monitor: Chinese credit crunchDanske Bank

China and the cost of stimulusFT

Michael Pettis Warns China Bulls ZH
"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 OutputMarc to Market

Credit vs equity vs bonds vs history vs the unknownFT

Chart of the week: Real interest divergence weighs on growthBruegel
The four countries with the highest real interest rates evidently had the lowest real GDP growth over the crisis years.

Country Dividend YieldsBespoke