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EUROPE
Paul Krugman: Real Exchange Rates and European
Adjustment – NYT
Despite reforms, EU remains vulnerable to any
future crisis – Moody’s
Moody’s: EU break-up may be ‘when not if’ –
Moody’s – FT
Reinforcing the Eurozone and protecting an open
society – vox
The sovereign debt and
refugee crises prove that Europe has failed to design institutions robust
enough to weather difficult times. Coordinated actions are needed, but these
are difficult to implement because of the political climate. This column
presents the 2nd Monitoring the Eurozone report, in which the authors propose
institutional changes that are politically feasible and can help restore growth
and prosperity to the Eurozone.
Completing the Eurozone banking union – vox
Most commentators agree
that a European banking union would end the ‘deadly embrace’ between creditors
and governments. This column argues that a banking union would be welcome, but
that current proposals are dogged with problems. To resolve these, we should stop
discussing debt restructuring and instead enhance the borrowing capacity of the
European Stability Mechanism. A programme to buy capital in financial
institutions unable to raise it directly on the market should also be set up.
Jan von Gerich: Bonds: It’s a long shot to be
short – Nordea
The ECB’s bond purchase
programme and record-low yield levels have attracted governments to issue
increasing amounts of bonds in the long end of the curve. In fact, the share of
long-term EUR government bond issuance has hit records, which has also put some
pressure on the longer end of the curve. The bulk of the issuance is likely
behind for now, alleviating the already limited upside pressures bond yields
are facing.
UNITED STATES
Preview of April Employment Report – Bill
McBride
Is QE4 (still) coming? – FT
Citi’s global head of
G10 strategy, Steven Englander, who wonders if markets have begun pricing
another round in:
OTHER
Imagining a New Bretton Woods – Project
Syndicate
The financial meltdown
of 2008 prompted calls for a global financial system that curtails trade
imbalances, moderates speculative capital flows, and prevents systemic
contagion. That, of course, was the goal of the original Bretton Woods system.
But such a system today would be both untenable and undesirable. So, what might
an alternative look like?
REGULARS
Danske Daily – Danske
Bank
Euro rates update – Nordea
Eye-Opener – Nordea
Bund yields at 20bp, busy US data
calendar today, stronger dollar * Better news from the US services sector? * Fed’s
Lockhart and Williams stressed that June is a live meeting * Commodity
currencies suffered from the weaker oil
Morning Markets – TF
Anxiety about the health of the
global economy hit sentiment across Asia on Wednesday with stocks heading lower
in Hong Kong Seoul and Mumbai. In Australia top miners weighed dragged the
Australia's S&P/ASX200 sharply lower.
Euro wrap-up –
Daiwa
Daily Market Comment –
Marc
Chandler
Greenback Firmer, but has it Turned?
Daily Market Comment
– Macro
Man
When the market talks...
Daily Market Comment
– Polemic’s
Pains
I don't know.
Daily Press Summary – Open
Europe
House of Lords report:
Article 50 only legal way to exit the EU * Hollande rejects EU-US free trade
deal “at this stage” * Brexit uncertainty blamed for sudden fall in
manufacturing * Commission to recommend visa-free travel for Turks insisting
that conditions still have to be met * New Migration Observatory report: Almost
1 in 5 EU migrants claimed some form of state benefit within 4 years of
arriving in UK * Commission downgrades Eurozone inflation and growth forecasts
* Leave campaigners say German plans for ‘European Army’ are a reason to leave
the EU * Ireland set for Fine Gael minority government * Re-run elections in
Spain to be held on June 26
Brussels Playbook – Politico
Spain to re-vote —
Mogherini reshuffle
US Open – ZH
Global Stocks Slide As Dollar
Continues Rising: Has The "Pricing In" Of Trump Begun
Frontrunning – ZH
Markets have once again
capitulated to a broad and stubborn cloud of risk-off sentiment with European
bond yields and global equities showing particular declines. The rally in the
USD launched yesterday however remains in effect.
FINLAND & FINNISH
Etsintäkuulutus:
saksalainen inflaatio * Iso-Britannian teollisuuden ostopäällikköindeksi (PMI)
laski yllättäen * Riksbankin huhtikuun kokouspöytäkirja julkaistaan tänään *
USA:n palvelusektorin luottamus (ISM) kohenee edelleen