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EUROPE
French minister
highlights that Treaty change is in the air – Open
Europe
French
Economy Minister Emmanuel Macron is speaking openly about changing the EU
Treaties to achieve further Eurozone integration. This is good news for David
Cameron's EU renegotiation push, as France has historically been wary of Treaty
change - but the diverging timelines remain an issue.
UNITED STATES
Fed’s Dudley cools
September liftoff talk – FT
Fed's Dudley Says
Decision on September Liftoff Less Compelling – BB
Dudley Puts The Kibosh
On September – Tim
Duy
The Fed has long argued that the timing of the first rate hike does not
matter. I had thought so as well, but that is clearly no longer the case. A
rate hike during a period of substantial financial market turmoil would matter
a great deal. It looks like the Fed's plans to raise rate will once again be
overtaken by events.
Strong capital spending
plans boost growth outlook – Reuters
5 Things the U.S. GDP
Report May Tell Us About What’s Next – WSJ
OTHER
5 Things Asian
Economies Learned From 1997-98 Financial Crisis – WSJ
The
number of NYSE 52 week new lows jumped to 1342 during Monday * At its highest
high, VIX index spiked into the capitulation zone * As VIX Index spikes the
bottoming process can take anywhere from 1 to 4 months
REGULARS
Brutal Late Selloff
Erases U.S. Stock Rally
Stocks Markets Continue
to Struggle
Strategist Targets Come
Down
Global Daily – ECB & Fed shifting on turmoil – ABN
AMRO
Officials from ECB and Fed point to
shifting stance following market turmoil * ECB Chief Economist Praet opens the
door to a more QE as soon as September * NY Fed President Dudley strikes
cautious tone on September rate hike
Weaker stocks and weaker
bonds amidst QE4 talk * Good news from Germany and China * Bond yield soars,
eradicating latest bout of China volatility * EUR/USD continues to be affected
by gyrations of risk appetite
A relief rally and
bargain-hunting bonanza that sent US equities sharply higher on the opening
yesterday evaporated soon afterwards as fear about China's ability to manage
its economy seeped back into the market. The upshot? Jitters and unease spilled
over into Asia and stocks across the region gyrated from positive to negative
territory through the session.
Three-D North American
Session
The PBoC's rate-and-RRR
cuts will have the effect of injecting $100 billion into the country's markets,
but investors remain fearful of a hard landing. Meanwhile, the emerging markets
rout is shattering the Brazilian and Colombian currencies, as well as coffee
prices.
French Economy Minister:
Treaty change “just a matter of timing” * Hungary considers sending in army as
UN expects 3,000 migrants to arrive in Balkans daily * Greek caretaker
government set to be appointed on Friday as country moves to fresh elections * Duda:
Poland should aim to attract back migrants from the UK and Germany * Merkel
sees poll support slip after pushing through third Greek bailout
Macron-economics —
Immigration black list — Back in the U.S.S… err
Here We Go Again: US
Equities Surge Even As Chinese Stock Market Rollercoaster Tumbles To 8 Month
Low
The ugly close in the US
equity session failed to see EURUSD moving out of the recent range, suggesting
perhaps that the “safe haven” bid for the euro may be weakening somewhat, but
the euro and yen will likely head higher still if this risk sentiment rout extends
from here.
The breakdown of
correlations is something we are getting used to but the collapse of the
inverse relationship that so often defines core bonds and equities is a
particularly alarming one. What's next?
FINNISH
Ruplan
kiinalainen kidutus jatkuu - Kiinan keskuspankki keventää rahapolitiikkaansa *
Saksan talouselämän luottamus odotettua vahvempaa * Koroissa huomattavaa nousua
eilen
Vähittäiskaupan
pikaennakko: heinäk. -0,3% YoY – Tilastokeskus