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EUROPE
Well or
badly measured, falling Eurozone inflation is bad news – Long
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.
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’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 stability
– Frances
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- Coeure – Reuters
The
First Political European Commission Will Work for Triple A Social Rating – euinside
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
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
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 Charts – ZH
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 Business – Wealth
of Common Sense
How to
trade pullbacks – Adam Grimes
Banks
have become too complex to grasp – FT
Even the
top execs, who pretend they understand, do not
Building
Systematic Strategies – A New Approach – Jonathan
Kinlay