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Friday, October 23

23rd Oct - Risk-on following ECB, positive data






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EUROPE
Three days that saved the euro The Guardian
With Greece on the brink of expulsion from the euro, there was one final chance to avoid catastrophe.

  MIGRANT CRISIS
Will German economy benefit from Merkel’s open door? – FT
5 ways the EU migration strategy is unraveling – Politico

  EUROPEAN CENTRAL BANK
ECB: The Force Re-Awakens – Macro Man
Q4 2015 ECB Survey of Professional Forecasters  ECB
Great Graphic: Draghi Pushes Back – Marc Chandler
Draghi the Fiscal Hawk – Francesco Saraceno
The ECB’s quantitative easing programme – vox
Editorial: Draghi Is Right to Plan More Monetary Stimulus – BB


UNITED STATES
Europe just made it harder for the Fed to raise ratesWaPo

Who's in Charge? Draghi and Yellen Facing December DecisionsBB

CHINA
China Plans 2020 Deadline for Dismantling Capital ControlsBB
At a gathering next week, top officials in the Communist Party will discuss pledging to “make the yuan convertible under the capital account,” according to a person familiar with talks now under way. The promise would be codified in a document charting the country’s economic course through to 2020, known as the 13th Five Year Plan.

China cuts interest rates and reserve requirement – Danske Bank
China Cuts; Futures Soar; Fed December Rate Hike Back In Play – ZH
Reactions: "China Is Getting More And More Desperate" – ZH
China Cuts Interest Rates as Policy Divergence With U.S. Widens – BB
China cuts rates again as growth engine stalls – Reuters


OTHER
  OCTOBER FLASH PMI
Japan Manufacturing PMI – Markit
Flash France Composite PMI – Markit
Flash Germany Composite PMI – Markit
Flash Eurozone Composite PMI – Markit
PMIs indicate stable growth above trend – Nordea
French Economy Picks Up as Services, Manufacturing Strengthen – BB
German Manufacturing Takes a China Hit – BB
Euro zone October business growth surprisingly strong: PMI – Reuters
US Manufacturing PMI – Markit
Dec Rate Hike Looms: PMI Surges To May Highs – ZH


REGULARS
Morning MoneyBeat AsiaWSJ
U.S. Stocks Surge on ECB; Dow’s Out of Correction Territory

Morning MoneyBeat EuropeWSJ
Bulls Rush in on Draghi’s Stance

Morning MoneyBeat USWSJ
Rally in Stocks on Shaky Ground

Danske DailyDanske Bank

Euro rates updateNordea

Eye-OpenerNordea
ECB prepares easing package for December * Euro-area bonds rally on Draghi * EUR weaker as USD strengthens

Morning MarketsTF
EURUSD is still plumbing the depths after Mario Draghi, the European Central Bank president, said he would augment the bank's current quantitative easing in December if necessary and admitted that he had considered the option of an interest rate cut.

Daily ShotTF
Yesterday's European Central Bank meeting was even more dovish than expected, sending the euro into a tailspin and equities higher. What does this mean for the US, whose dollar is increasingly the last man standing in a world of emergency-policy currencies?

Daily Press SummaryOpen Europe
Share of those who want to stay in the EU drops as all to play for in EU referendum *
Deportation of illegal migrants set to start in Germany this weekend * ECJ reiterates right to send child benefit abroad * Passos Coelho re-appointed Portuguese PM, faces tricky confidence vote in parliament * ECB President signals readiness to boost stimulus programme * Greek government fires top tax collection official * European Commission to take six member states to court over rules on winding down failing banks * Juncker: The EU “is not going very well” * French MEP re-elected President of centre-right pan-EU party with 97% of votes,

Brussels PlaybookPolitico
Tax heats up — Orbán faces down Merkel — Poland votes

US OpenZH
Futures Continue Surge On Global Draghi Euphoria, Tech Earnings

FrontrunningZH

FX UpdateTF
Draghi trashed the euro yesterday with a dovish broadside that saw the single currency lower across the board, particularly against the traditional risk on currencies, as we have suddenly re-engaged the euro carry trade. The market will quickly shift its focus next week to the next batch of US event risks.

From the FloorTF
Markets are getting to grips with new levels in the euro after European Central Bank chief Mario Draghi issued a bluntly dovish statement on Thursday, which sets the stage for action at the ECB's December meeting, Saxo Bank's strategy team says.


FINNISH
AamukatsausNordea
EKP valmistautuu joulukuun lisäkevennykseen: Elvytyskannalla oleva EKP heikensi euroa ja painoi korkoja alemmas * Kuluttajien luottamus laskussa euroalueella * Riksbankin paine rahapolitiikan keventämiselle kasvaa

Korkman: Pankkilobbarit olivat aiheuttamassa Suomen suurta lamaaTalSa
Kirjat Sixten Korkmanin uuden kirjan mukaan pankit estivät 1980-luvulla "häikäilemättömästi" sääntelyn, joka olisi estänyt 1990-luvun laman pankkikriisin.

Väärää talouspolitiikkaaMTV