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EUROPE
Move comes
after Moscow accuses Washington of destabilising the world
Alleged
Sarkozy plot rocks French politics – FT
Scandal
centres on conversation between Hollande aide and Fillon
As the
Eurozone experiences a prolonged demand-deficient recession, and given Germany’s
pivotal role in making that happen, it is important to get the argument against
current German policy right.
Europe’s Dog in the Nighttime – Project
Syndicate
As Sherlock
Holmes understood, a dog that does not bark in the nighttime usually goes
unnoticed. In Europe’s case, the EU’s fiscal rules are
at issue, and the Commission – in principle the EU’s watchdog – should bark
loudly when they are flouted.
Europe braced for some dismal figures – Reuters
After Draghi
got his colleagues to sign up to a target for pumping money into the ailing
euro zone economy, a raft of GDP reports are likely to show just why more help
may be needed.
CRISIS COUNTRIES
Since 2007,
house prices down 40% * Far fewer building permits granted * House transactions
up by 6% on last year
Greek
mythology extends to bailout – TradingFloor
The
government of troubled Eurozone member Greece is claiming it will steer the
country out of the bailout a year early. But this statement is ridiculous if
the first thing the EU will have to do is to grant Greece new financing - and this is exactly
what is going to happen. The only sensible option is for Greece to extend the current bailout up to
18 months. This would allow Greece more time to meet the criteria for
the release of the last EUR 1.8 billion tranche of the existing program, which
will be lost unless it is disbursed before the end of the year.
Russian
rouble - a free jump into free float – Danske
Bank
EUROPEAN CENTRAL BANK
Summary
of ECB's latest monetary policy – Sober
Look
Draghi
Summons Banking Know-How for ECB Posts as Role Shifts – BB
Two key
monetary-policy posts with non-ECB experts on how lenders function in the
economy. The appointments mark a trend of turning to outsiders as the 16-year-old
institution struggles to meet its changing responsibilities with existing staff.
Target
the SMEs – The
Economist
The
effectiveness of long-overdue quantitative easing by the ECB will depend on the
quantity and quality of the assets purchased and on the fiscal stance in the
euro zone.
AQR and
the Eurozone stress tests – VoxEU.org
The ECB has
published the results of its asset quality review and stress tests of Eurozone
banks. This column argues that, while this process had clear shortcomings, it
still constitutes a huge improvement over the three previous exercises in the
EU. Nevertheless, the banking union is far from complete, and the biggest risk
now is complacency. A long-term reform agenda awaits Europe.
UNITED
STATES
Unemployment
close to official NAIRU estimates – Alpha
Now
ASIA
Xi and
Abe hold landmark summit – FT
China and Japan took a significant step towards
mending their abysmal relationship on Monday as President Xi Jinping and Prime
Minister Shinzo Abe held their first official meeting since the two
nationalistic leaders came to power in 2012.
The damage
inflicted by the introduction in April of the first major tax increase in 17 years
has led to calls for postponing the next scheduled raise in the consumption tax
for fear that it would, otherwise, affect the credibility of the monetary
regime change. But with a debt load that exceeds 240% of GDP, several
commentators believe that backtracking on the consumption tax could cause a
fatal loss in Japan’s fiscal credibility.
Economists
React: Chinese Inflation in Low Gear. Time for A Rate Cut? – WSJ
OTHER
Hilsenrath’s
Take: Inside BOJ Move, Kuroda Navigates Shifting Forecasts and Alliances * How
BOJ’s Kuroda Won the Vote for Stimulus Expansion * Fed to Markets: Brace for
Volatility * U.S. Jobs Market Improving Faster Than Fed Expects, But Policy
Steady * Banks to Be Forced to Hold Big Capital Cushions
News
developments Monday that are ostensibly domestic or bilateral in nature speak
more powerfully to some of the broader geopolitical challenges facing the world.
Dollar
Begins Better Offered amid Corrective Pressures – Marc
to Market
FX
Update: The US dollar's moment of truth – TradingFloor
Global
Central Banks Calendar for Week – WSJ
Printing
money to fund deficit is the fastest way to raise rates – FT
No
technical reasons exist for rejecting this, only the fear of breaking a taboo,
writes Adair Turner
FINNISH
Ex-puoluesihteeri: KGB:n rahaa supolle saattoi päätyä keskustalle
– Verkkouutiset
Suojelupoliisin päällikön 1970-luvulla KGB:lta saamaa rahaa
saattoi ex-puoluesihteerin mukaan ohjata eteenpäin keskustapuolueen säätiölle.
IMF laatii Suomesta julkisen talouden läpinäkyvyysarvion
– Verkkouutiset
Nordea arvioi Saksan ajautuneen taantumaan – Verkkouutiset
Italian teollisuustuotanto selkeään laskuun – Verkkouutiset
Lisävelka on ongelma eikä pelastus – Peter
Nyberg
Teollisuustuotanto syyskuussa -10,6% YoY – Tilastokeskus
Teollisuuden uudet tilaukset kasvoivat syyskuussa yli puolet
vuoden takaisesta – Tilastokeskus