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Sunday, November 9

9th Nov - W/E: World & Markets



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EUROPE
Well or badly measured, falling Eurozone inflation is bad newsLong and Variable
Greatly below target and falling measured inflation gives a very good picture of the failings of current policy, and should be cause for much concern.

One Europe, Too Many EuropesEconMatters
Adriano Bosoni / Stratfor: We tend to think of Europe as a cohesive unit because there is an entity called the European Union that has headquarters in Brussels and is represented across the Continent. To a certain extent, this perception is correct. But if anything, the crisis serves as a reminder of Europe's perennial state of fragmentation, which is the consequence of history and geography. These divisions led to the current crisis and will hamper any attempts to solve it.

Germany and pre-recession cost cuttingmainly macro
Germany’s undervalued real exchange rate - its competitive advantage compared to the rest of the Eurozone - cannot persist. It will be eroded by faster inflation in Germany relative to other Eurozone countries. The only question is whether this happens through a boom in Germany, or continued depression in the rest of the Eurozone.

A terrible stabilityFrances Coppola / Pieria
The ECB's only mandate is price stability, and it seems to be achieving it. The objectives of Brussels and Germany are also being met: countries cannot expand their fiscal budgets even when their economies are on the floor. And the terrible cost of these achievements is the misery of millions. 

The massively negative euro zone ‘Divisia Money Gap’Market Monetarist
More confirmation that monetary policy is far too tight in the euro zone and bold action is needed to ease monetary conditions to pull the euro zone economy out of the present deflationary state.

Not clear whether weaker euro can solve growth problems- CoeureReuters

The First Political European Commission Will Work for Triple A Social Ratingeuinside

Mario Draghi's efforts to save EMU have hit the Berlin WallThe Telegraph
If the ECB tries to press ahead with QE, Germany's central bank chief will resign. If it does not do so, the eurozone will remain stuck in a lowflation trap and Mario Draghi will resign

ASIA
Has The Bank Of Japan Started Another Round Of Central Bank Wargames?Forbes
Frances Coppola: BoJ has now doubled its QE program, while the Fed has ended QE. Will central banks be quite so tolerant now – or will we see a round of defensive responses to the Bank of Japan’s move?

MARKETS
The Detailed US Shale Oil Cost CurveZH
Barclays: At $80/b WTI, we think most producers will sweat it out and achieve their stated production objectives in 2015. But if prices remain at these levelsthrough 2015, it could compromise the significant potential new volumes that are needed to offset declines from existing wells.

The Ugly Reality Of US Earnings In 3 Simple ChartsZH
The positive 3Q earnings surprise is in stark contrast to negative revisions to consensus 4Q 2014 and 2015 earnings forecasts.

The Secret Sauce of the Investment BusinessWealth of Common Sense

How to trade pullbacksAdam Grimes

Banks have become too complex to graspFT
Even the top execs, who pretend they understand, do not

Building Systematic Strategies – A New ApproachJonathan Kinlay