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Wednesday, October 22

22nd Oct - EUR slides on ECB bond rumours





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EUROPE
Reform alone is no solution for the eurozoneFT
Martin Wolf: A policy that may work for Germany alone cannot work for an economy more than three times as big

EU to warn France and Italy on budget plansFT
The European Commission will on Wednesday tell five eurozone countries, including France and Italy, that their budget plans risk breaching EU rules, say three officials briefed on the decision.

Europe’s Brush with DebtProject Syndicate
Hans-Werner Sinn: French Prime Minister Manuel Valls and his Italian counterpart, Matteo Renzi, refuse to comply with the eurozone's 2012 fiscal compact; instead, they intend to run up fresh debts. Their stance highlights a fundamental flaw in the European Monetary Union’s structure – one that Europe’s leaders must address before it is too late.

Financial fragility of euro area householdsECB
Albeit euro area households are relatively resilient as a whole, there are large discrepancies in the impact of macroeconomic shocks across countries…calibration of country level loant-to-value ratio caps.

Are Non-Euro Area EU Countries Importing Low Inflation from the Euro Area?IMF

Weekly Bond Update: Corporate bonds may not address Eurozone woesTradingFloor
Reports of the European Central Bank allegedly considering adding corporate bonds to its bond purchase programme have sparked optimism in European credit markets.

  EUROPEAN CENTRAL BANK
David Marsh: Draghi has his back to the wallMarketWatch
5 reasons the ECB’s position isn’t as strong as it was in 2012

ECB Stress Tests Could Shake Bank Ratings, S&P SaysWSJ
Stakes high for Europe’s bank stress testsFT

Preliminary Thoughts about the ECB and Corporate BondsMarc to Market
How an ECB Corporate Bond Program Could WorkWSJ

UNITED STATES
Fed on inequality, and the lawless border town between fiscal and monetary responsibilitiesFT

How Far Do Stocks Need to Fall to Get the Fed to Intervene?WSJ
Bank of America Offers a Clue

QE Timeline UpdateCalculated Risk

ASIA
Chinese deposit growth, but not as we knew itFT

China’s Great Leap BackwardProject Syndicate
This week, Chinese Communist Party leaders are meeting in Beijing for a plenary session centered on one topic: the rule of law. But the crackdown on freedom of speech, assembly, association, and movement now unfolding in China casts doubt on the credibility of the government's commitment to political modernization.

OTHER
Daily Macro: Japanese Equities Swing AgainWSJ
Maybe the country’s two possible outcomes – recovery and inflation or debt deflation – are at such extremes that any small tilt from one risk to the other is registered as a massive price swing…European equities, meanwhile, had a more muted, mixed start after Tuesday’s sharp rally. German bonds continued to be in heavy demand, with the government selling an issue of its 30-year debt at a record low yield of 1.77% – making Germany look ever more Japanese by the day.

Daily Central BanksWSJ
Hilsenrath’s Take: More About that Fed Culture Crackdown on Banks * New York Fed Failed To Examine J.P. Morgan’s ‘London Whale’ Unit * European Stocks Jump as ECB Mulls Buying Corporate Bonds * China’s Slowdown Raises Pressure on PBOC to Spur Growth * BOE Officials Gloomier on Economy, Minutes Show
 
FINNISH
Kokoomus laskussa, keskusta nousussaJyrki Virolainen

"Puhe naisen eurosta pitäisi lopettaa"Verkkouutiset
Kokoomuksen ja vasemmistoliiton nuorisojohtajat kiistelevät uutuuskirjassa kuumista asioista.

Rakentaminen hyytyy kohti 90- luvun laman lukemiaPiksu

Björn Wahlroos haluaa uudet vaalitYLE
Talousvaikuttaja Björn Wahlroos kertoi keskiviikkona haluavansa uudet eduskuntavaalit mahdollisimman pian, koska uudella hallituksella on niin paljon tehtävää.

Raharuiskuista puhti pois – kuin köydellä työntäisiJan Hurri / TalSa
Analyysi Euroalueen keskuspankki EKP yrittää saada taloutta kasvuun rahan voimalla, mutta yritys on kuin köydellä työntämistä – eivätkä tuloksetkaan välttämättä sen kummempia. Se yrittää kasvattaa velkarahoituksen tarjontaa, vaikka pulaa on ennemmin uusien luottojen kysynnästä. Rahaa on enemmän kuin tarpeita.

Rakkaat asiantuntijatHenri Karjalainen / US
Taloustieteilijät tekemään Suomelle pelastussuunnitelmaKimmo Saarikko / US