Follow ‘MoreLiver’ on Twitter
EUROPE
Espirito
Santo: complexity, opacity and moral hazard – Pieria
It may be
too draconian to ban conglomerates with non-financial interests from owning
banks. But consideration needs to be given to ways of limiting moral hazard and
preventing circular funding arrangements such as those between BES and its
parents.
Balance-of-Payments
Facility: Current profile and future challenges of non-euro area financial
assistance – DB
Research
The
Balance-of-Payments Facility of the European Union is a medium-term financial
assistance mechanism for non-euro area member states suffering from a
balance-of-payments crisis. This Research Briefing reviews current challenges
in the ongoing negotiations between the European Parliament, the Commission and
the Council on a recent legislative proposal which aims to streamline the facility
with the current institutional framework of the ESM. Still, there is a
particular need for reconciliation regarding the facility's volume, economic
conditionality and the future role of the IMF.
UKRAINE / RUSSIA
Russian
Bonds, Stocks, Ruble Tumble On Latest US Sanctions – ZH
Stocks And
Bond Yields Are Plunging On Shot-Down Passenger Jet – ZH
Obama And
Putin Speak, Mention Plane Crash; Obama Threatens With More Sanctions – ZH
EUROPEAN
CENTRAL BANK
Calendar
for Governing Council Meetings in 2015 – ECB
Start
Circling Dates on Your 2015 ECB Calendar – WSJ
Euro area
deflation monitor – Danske
Bank
ECB
publishes disclosure process for comprehensive assessment – ECB
Publication
Note on the comprehensive assessment – ECB
International
investors say the euro area’s economy is in its worst shape in more than a year
and in danger of dropping into deflation, with a central bank that many believe
is not doing enough to help, according to a Bloomberg Global Poll.
MACRO NUMBERS
Production
in construction down by 1.5% in euro area – Eurostat
Euro area
annual inflation stable at 0.5% - Eurostat
Euro zone
June inflation unchanged at low levels as expected – Reuters
UNITED STATES
FEDERAL RESERVE
Largest
Banks Rank Highest On Fed Risk Data – WSJ
12 Beige
Book Gems – WSJ
Bullard:
Fed May Need Rate Rises ‘Sooner Rather Than Later – WSJ
Fed's
Bullard backs repo rate, cites bond bubble worry – Reuters
Bullard
Says Fed May Need to Move Forward Start of Exit – BB
Fisher: Monetary
Policy and the Maginot Line – FED
Are
markets poised for Taper Tantrum 2.0? – Reuters
Investors
may be ignoring subtle warnings from the Federal Reserve that a rate rise may
come sooner than they think, setting the stage for another painful market
contraction much like last year's "taper tantrum."
EMPLOYMENT
Labor force
participation rate since 2007 – White
House
White House
on Labour Participation – FT
Why workers
are disappearing from the job market – WaPo
Most of the decline in labour force
participation was demographic, due to an aging population; a modest proportion
was due to the recession and its unusual severity… For the Fed, that means there is not a
significant “participation gap” on top of elevated unemployment.
MACRO NUMBERS
Housing
Starts Plunge due to Horrific Data from the South – Marc
to Market
Housing
Starts Tumble, Permits Plunge – ZH
Housing
Starts decline to 893 thousand Annual Rate in June – Calculated
Risk
U.S. housing starts, permits decline in
June – Reuters
A few
comments on June Housing Starts – Calculated
Risk
ASIA
PBoC
follows other central banks in suppressing volatility – Sober
Look
China Finds Debt Addiction Hard to Break
in Growth Quest – BB
China is Beginning to Rebalance, But
There’s a Long Way to Go – WSJ
OTHER
Daily
Macro – WSJ
Washington’s decision to widen sanctions against Russia and Federal Reserve Chairwoman
Janet Yellen’s ever so slightly less dovish than usual Congressional testimony
on Wednesday proved a drag on European and Asian equity markets early in the
session. But relatively thin news flow and light summer conditions are likely
to encourage sideways trade.
Daily
Central Banks – WSJ
Hilsenrath’s
Take: Two Camps in the Fed’s Rate Debate * Yellen Confronts Lawmakers on House
Fed Bill * Fed’s Fisher: Rates Could Rise in Early 2015 or Even Sooner * Japanese
Bond Yields Offer a Hint Of Trouble * Economists Question Beijing’s Stimulus
Habit
EMEA
Weekly: Week 30 – Danske
Bank
A quick
lesson on market tops
– The
Reformed Broker
Because
low vol just happens some times – FT
Booming
Until It Hurts? – Project
Syndicate
Commodities
- Relief in the front, pressure on the back end – Danske
Bank