17th Oct - Rally

Previously on MoreLiver’s:

Thursday: Reversal day as Fed talks QE?

Wednesday: Nasty risk-off moves

Tuesday: ECB at court, Fed talks down the USD

Monday: Falling US inflation outlook

W/E: Linkfest

W/E: Weekly Support

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EUROPE

EU Should Consider Suspending Debt Rules, Dallara Says – BB

The European Union should consider suspending euro-area debt rules for up to two years so that growth can recover after the financial crisis, private equity executive Charles Dallara said.

  EUROPEAN CENTRAL BANK

Nightmare in the Eurozone: Is OMT Going to Be Put to the Test? – Econospeak

ECB’s Nowotny: Monetary Policy Is Effective in Encouraging Growth – WSJ

“We are not in a recession. We have positive growth rates, unfortunately low [growth rates]. It is not as if the ECB needs to open up the emergency toolbox,”

ECB Says Too-Slow Governments a Threat to Europe Revival – BB

ECB policy makers said governments must accelerate plans to strengthen their economies or risk derailing the region’s recovery.

Italy Bonds Gain as ECB Readies Asset Buying; Greek Debt Rallies – BB

Italian and Spanish bonds advanced for the first time in three days after the European Central Bank said a legal act enabling it to buy covered bonds, a component of its stimulus program, will come into force tomorrow.

Before a Bailout, ECB Minutes Showed Doubts Over Keeping a Cyprus Bank Afloat – NYT

Statement on New York Times articles – ECB

Leaked ECB Minutes Reveal More Internal Posturing Over Cyprus Bail-Out – ZH

Results of the Euro Money Market Survey 2014 – ECB

Euro Money Market Survey 2014 – ECB

Contribution of the Eurosystem to the public consultation of the European Commission on the mid-term review of the “Europe 2020 strategy” – ECB

UNITED STATES

  FEDERAL RESERVE

Beware of calls for QE4 – FT

QE4 is likely to face a very high implementation hurdle. But this does not mean that Fed officials will stay on the sidelines.

Will deflation fears prolong QE or delay the rate hike? – WaPo

  MACRO NUMBERS

US housing starts jump to more than 1 million in September – TradingFloor

Housing Starts increase to 1.017 Million Annual Rate in September – Calculated Risk

Mixed Housing Data – Bespoke

Housing Starts Rise as U.S. Construction Firms Regain Footing – BB

U.S. housing recovery rolls on as groundbreaking rises – Reuters

Preliminary October Consumer Sentiment increases to 86.4 – Calculated Risk

ASIA

BOJ May Need to Buy More Longer-Term Debt – WSJ

The Bank of Japan is reaching the limit of what it can buy in short-term debt from the market.

OTHER

Daily Central Banks – WSJ

Hilsenrath’s Take: Hard to See Fed Following Bullard’s Lead * Fed Chairwoman Yellen Inquires About How the Unemployed Find Jobs * Fed’s Bullard Says He Would Consider Continuing Bond Program After October * Central Banks’ Major Asset Purchases May Widen Rich-Poor Gap, Says Mersch * BOE’s Haldane Shifts Stance

Daily Macro – WSJ

European equity markets rallied in early trade following signs Thursday that U.S. markets were finding a bottom after days of selling. Helping investors gingerly wade back in are central bankers. Thursday, we heard Federal Reserve Bank of St Louis President James Bullard suggest that the Fed could hold off ending its asset-purchase program, due to end this month, and Friday European Central Bank Executive Board member Benoît Coeuré said asset-backed security purchases would begin in the euro zone within days. But it’s not at all clear that the central bank cavalry is coming.

Some Thoughts about the Dollar's Technical Outlook Now – Marc to Market

FINNISH

Uusi europarlamentti hakee poliittista suuntaansa – Sampo Terho

EPP on tavallaan tilanteessa, jossa sen on joko höllättävä liittovaltiokehitystä tai sitten hyväksyttävä sosialistisempi talouslinja. Aika näyttää, kumman vaihtoehdon EPP valitsee. Valinta on ratkaiseva liittovaltiokehityksen jatkumisen tai katkeamisen kannalta.

Valtiontaloudelle esitetään velkajarrua - ylivelkaantuminen estettävä – Verkkouutiset

http://www.verkkouutiset.fi/politiikka/kataja_velkajarru-26955

Juhana Vartiainen: Alisuorittajien palkkaa ei tarvitsisi yleiskorotuksilla nostaa – Verkkouutiset

Valtion taloudellisen tutkimuskeskuksen ylijohtaja Juhana Vartiaisen mukaan julkisen sektorin tehtävä ei ole työllistää vaan palvella.

Pekka Ervasti: Fantastique! – YLE

Superkomissaari Jyrki Katainen (kok.) suhtautuu pääministeriaikansa saavutuksiin samalla rennolla avomielisyydellä kuin Esko Aho (kesk.) Hiihtoliiton doping-skandaaliin.

Maaginen multiplikaattori – Roger Wessman

”Tough love” on parasta mamu-politiikkaa – SK