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Tuesday, May 12

11th May - Eurogroup today



Previously on MoreLiver’s:


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EUROPE 
  BOND MARKET
Mohamed El-Erian: Where German bonds lead the world follows – FT
Der Bundschock, revisited – FT
Not out of the woods yet – Polemic’s Pains
Gavyn Davies: Bund “tantrum” warns of future accidents – FT

  GREECE
Greece Readies for Another Week of Deadlines – BB
Merkel Pressed to Give Up on Greece as Germans Urge Strong Euro – BB
Euro Slides After Reports Troika Is Preparing Greek Plan B, C, & D – ZH
IMF Preparing Greek Default Contingency Plan – ZH
Greece hits crunch time over €750m repayment to IMF – FT
The Lessons for Greece’s Economy From 70 Currency Union Breakups – BB
Why Greece Is Getting Down to the Wire – The Short Answer – WSJ

  UNITED KINGDOM
Wolfgang Münchau: What Cameron’s electoral victory means for Europe – FT
EU referendum: Cameron must be ambitious, not cautious – Open Europe
Carl Bildt: David Cameron’s Europe – Project Syndicate

 
ASIA
Another look at the Chinese M1 gap – still a bit more room for easing – Lars Christensen
Economists React: China’s Rate Cut Is a Stone Aimed at Many Birds – WSJ
China: Record-low policy rate after Sunday’s cut – Nordea
People's Bank of China cuts rates by 25bp as growth slows – Danske Bank


OTHER 
Max McKegg: Bond market selloff is no cause for concernTF
Global markets were caught in the slipstream of the bund selloff * Even Swiss bond yields crawled into positive territory * There is no evidence of a rout in long-term US bonds

Steen Jakobsen’s Macro Digest: How to handle Greek pressureTF
Many reasons to be fearful in Greece * German voters increasingly disenchanted with Merkel's line * Many repayments fall due over next few months

 
REGULARS
Daily Central BanksWSJ
Hilsenrath’s Take: Chinese Stocks Defy Signs of Economic Distress * April Jobs Numbers Keep Fed Expectations on Track * China Cuts Interest Rates as Economic Growth Slows * Bank of England Leaves Interest Rates Unchanged, as Expected * ECB’s Constancio: QE is Working

Daily MacroWSJ
As the week begins, eyes are on the two major worry points for the global economy. The concerns about China’s economic slowdown were highlighted by the PBOC’s unexpected move to cut rates. Meanwhile, eleventh-hour negotiations between the Eurogroup of finance ministers and the Greek government continue as the latter faces a big repayment that’s due to the IMF on Tuesday.

Danske DailyDanske Bank

Euro rates update – Nordea

Eye-OpenerNordea
US labour market report was reassuring, but not extraordinary * Sunday move from China put equities back in fashion * Yield reversal finally * EUR/GBP in a nosedive strengthening move

Morning MarketsTF
Now that the UK general election is done and dusted market attention is switching back to economic fundamentals and reports. The Bank of England's policy announcement is among the day's key events although rates are expected to be kept steady at 0.5%. Across in Brussels, the Eurogroup convenes for yet another attempt to sort Greece out.

Daily FX CommentMarc Chandler
Dollar Firmer but Going Nowhere Quickly

Daily ShotTF
The recent and sharp correction in German bunds has left many investors wondering where the chips will fall. According to some analytical models, the selloff could be poised to continue but others say the yield spike could be overdone.

Daily Press SummaryOpen Europe
Osborne tipped to lead EU renegotiation as Cameron puts in first calls to EU leaders * European Commission to propose binding refugee quotas * Eurogroup chief says Eurozone and Greece “are not very close to an agreement” * EU anti-fraud agency under investigation for illegally tapping phones * Danish PM’s party slipping back in polls * Anti-euro AfD wins seats in Bremen regional elections

US OpenZH
Futures Jittery As Attention Returns To Greece; China Stocks Rebound On Latest Central Bank Intervention

FX UpdateTF
Friday’s US employment report was on the soft side, but the USD has managed to maintain an even keel. The key focus this week is on the euro and today's EuroGroup meeting as well as on sterling as we look forward to earnings and employment data and the Bank of England Inflation Report on Wednesday.

From the FloorTF
The German bunds market selloff last week is enjoying some respite this morning, but could Greece once again send them over the edge?
   

FINNISH
AamukatsausNordea
Kreikan taskurahat riittävät vielä kepposiin | USA:n työmarkkinaraportti oli kohtalaisen hyvä | Kiina laski laina- ja talletuskorkoja


Viikkokatsaus: Korot liikkuvat –ja paljon! Nordea
Viime päivien korkojen nousu painottunut pitkään päähän * Riittääkö EKP:n elvytys? * Euroalueen talousnäkymissä jo aitoa piristymistä * Makrotekijät alkavat jo tukea korkeampia pitkiä korkoja * Euroalueen reaalikorot jo USA:n korkopohjien tasolla


Roger Wessman: Korot nousseet – EKP:n toimet tehottomia?Marketnoze
Pitkien valtionlainojen korot ovat euroalueella nousseet yli vuodenvaihteen tasojen EKP:n jatkuvista valtionlainaostoista huolimatta. Kun määrällinen elvytys vaikuttaa alentamalla pitkiä korkoja, tästä voisi päätellä, että EKP:n toimet ovat täysin tehottomia. Tämä olisi kuitenkin hätiköity johtopäätös. Korkojen nousu voi myös heijastaa juuri toivottua talousnäkymien paranemista ja kasvavia inflaatio-odotuksia.

Troikan Kreikka-visio: Rinnakkaisvaluutta alulleTalSa

  HALLITUSPELI
Kommentti: Perussuomalaiset on kuin lapsi kauppareissulla – IS
Neuvottelut vauhtiin - pöydällä maahanmuutto ja EU – MTV
Sipilä: Unionia ja maahanmuuttoa koskevissa kysymyksissä ei dramatiikkaa – IL
Hallitusneuvottelut – isot linjaukset tehdään tänään – AL
Näin perusporvari-Suomi muuttuu – heille tulossa kylmää kyytiä – IS