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Thursday, October 16

16th Oct - Reversal day as Fed talks QE?



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EUROPE
David Cameron floats ‘emergency brake’ on EU immigrationFT
David Cameron may seek an “emergency brake” on jobseekers from other European Union countries in at an attempt to tackle the threat of Ukip.

EU Starts Two-Week Austerity Scrutiny as Crisis ReturnsBB
The European Union started a two- week probe of euro-area governments’ draft budgets as a re- emergence of the bloc’s debt-crisis nightmare risked undoing its economic recovery.

Euro zone back in firing line over growth, lowflation, GreeceReuters
After a two-year siesta, the euro zone is back in the financial markets' firing line due to stagnating growth, low inflation, budget problems in France and Italy and rising political risk in Greece, where the bloc's debt crisis began in 2009.

Greek Bailout Exit Plan at Risk Amid Bond, Stock SelloffBB
Greece’s plan to escape the shackles of the biggest bailout in history is at risk of falling apart.

EU wants smooth evolution of support for Greece after bailout endReuters
The European Commission will work with Greece to ensure there is a smooth evolution of support for the country after its current bailout program ends at the end of this year, the Commission's spokesman Simon O'Connor said on Thursday.

Greek Bond Rout Drags Down Markets From Ireland to FranceBB
Greece’s government debt is back in the spotlight and investors are looking for the exit.

The Risks Behind Rising Eurozone YieldsWSJ
Is Europe’s sovereign debt market ringing eurozone crisis alarm bells, or are investors generally merely recognizing central banks haven’t quite eliminated all financial market risk?

The Short Answer: Is Europe Entering a Period of Deflation?WSJ
Falling prices, or very low inflation rates, do not deflation make.

  EUROPEAN CENTRAL BANK
ECB statistics: a brief overviewECB

Bridging tables between the accounting balance sheet items of the NCBS and the ECB and the items to be reported for statistical purposesECB

  MACRO NUMBERS
Euro area international trade in goods surplus €9.2 bn – Eurostat
Euro area annual inflation down to 0.3% - Eurostat
Deflation stalks Europe's periphery as inflation hits five-year low – Reuters

UNITED STATES
  FEDERAL RESERVE
What Yellen Needs to Learn From Sweden, FastBB
Raising rates prematurely can leave an economy in worse shape than before.

Bullard Says Fed Could Delay Planned End of Bond-Buying ProgramWSJ
Bullard: FOMC should consider “a pause on the taper” – FT
Fed Camps Seen Coalescing as Market Turmoil Compels Flexibility – BB
With Stock Prices Tumbling, Investors See Fed Pushing Back Rate Hikes – WSJ
QE4? – FT
QE4? Nah, time to look elsewhere – FT
The real problem with Fed policy – The Money Illusion

  MACRO NUMBERS
Industrial Production Beats, Rises At Fastest Rate In 4 Years – ZH
Industrial Production increased 1.0% in September – Calculated Risk
Industrial Output in U.S. Rises by Most Since November 2012 – BB
NAHB: Builder Confidence decreased to 54 in October – Calculated Risk
Homebuilder Confidence Plunges – Bespoke

ASIA
China: Credit growth continues to slow but it’s not yet a credit crunchDanske Bank

China seeking to cash in on Europe’s crisesBruegel
Since 2010, Chinese investment has been increasing in European European countries that needed to privatize quickly and at cheap price

BOJ to stand pat even as inflation stalls, global markets tumble: sourcesReuters
Even as growth and deflation fears roil global markets and weak data casts a shadow over Japan's economy, the Bank of Japan appears set to resist pressure for more stimulus measures or to accept that its inflation target is unrealistically high.

OTHER
Daily Central BanksWSJ
Mounting deflation fears are partly behind recent selloffs in a wide range of assets across a large part of the world. Europe is the main focus of those concerns, and figures released Thursday by the European Union’s statistics agency show why: the annual rate of inflation across the 28-member bloc–18 of which use the euro, 10 of which do not–fell to 0.4% in September, a five year low. Eight of the bloc’s members had prices that were lower than in the same month of 2013, five within the eurozone, three without.

Daily MacroWSJ
Wall Street shares might have finished well above Wednesday’s lows, but European equities took little comfort as they were hit by a fresh round of selling from early on…in realm of more realistic, actual risks, global deflation is rearing its ugly head. Concerns about that threat were reinforced Thursday by a weak eurozone inflation print for September. At the same time, peripheral eurozone sovereign bond yields started to rocket again – those on Greek 10-year bonds shot up a full percentage point in early trade to 8.8% from 6.6% a couple of weeks ago – reminding investors that the single currency region’s troubles are far from over.

The Storm Continues, Dollar StabilizesMarc to Market

European Markets Hammered Again: What Investors ThinkWSJ

Could the liquidity crisis be back?FT

Oh No! The Dow Went Negative This Year!The Reformed Broker
You can safely say “so what, happens almost every year,” the next time you hear someone fussing over the Dow going negative. It says absolutely nothing about what’s to come this year or next.

FINNISH
  TNS Gallupin puoluebarometri
Kansan mielestä hallitus ja oppositio onnistuneet liki yhtä huonosti – Verkkouutiset
Opposition kannattajat haluavat näpäyttää – Verkkouutiset
Kysely: Hallituksen arvosana alhaisin sitten lamavuosien – YLE
Puoluebarometri: Stubbin hallitusta huonompi vain Ahon hallitus – MTV
Puoluebarometri: Stubbin hallitukselle murska-arvio – IL

EU-jäsenyys puhuttaa yhä – 20 vuotta kansanäänestyksen jälkeenYLE
20 vuotta sitten Euroopan Unioni kiinnosti taloudellisista syistä. Nyt veto tuntuu olevan toiseen suuntaan: kesäkuun vaaleissa eurokriittisiä edustajia nousi EU-parlamenttiin monesta jäsenmaasta.

Toimeentulotuen menot kasvavat rajusti HelsingissäHS
Helsingin toimeentulomenot asukasta kohden ovat yli kaksinkertaiset Turkuun verrattuna

Maahanmuuttajat rikosten uhreina ja tekijöinäJaakko Häkkinen / US

Poliittinen riski SuomessaAula Research
Murskaava tutkimus Suomen poliittisesta riskistäVerkkouutiset
Tutkimuksen mukaan asenneilmaston muutos elinkeinoelämän vaikuttajien keskuudessa on ollut nopea ja merkittävä.

Vankina pienen avotalouden ajattelussaRaha ja Talous

Isot asiat liikkeessäJuhana Vartiainen / VATT

Borg ja raportti Suomen taloudesta – valuutan vaikutusta ei tulla mainitsemaanTyhmyri