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Thursday, July 7

7th Jul - Italian banks, Brexit and Fed





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EUROPE
Merkel and Juncker Unite Against Europe's DreamersBB
German conservatives against another term for Martin SchulzPolitico

Europe Sanctions Spain, Portugal Over Deficits While Ignoring France, ItalyZH

Account of the monetary policy meetingECB

  ITALIAN BANKS
Italian banks, this is euro area politics. We think you already know each other? – FT
Editorial: Avoiding Europe's Next Banking Crisis – View / BB
Return of the Repressed: Europe's Unresolved Banking Crisis – Marc Chandler
Italian banks are the new Brexit – The Economist
Italian Banks Crash To New Lows Despite Passing Self-Defined Stress-Test – ZH

  BREXIT
Brexit Is in Limbo, If Britannia Waives the Rules – View / BB
Stiglitz: From Brexit to the Future – Project Syndicate
Post-Brexit Uncertainty Increases – PIIE
5 Things Investors Can Learn From Brexit Shock – WSJ
Could Brexit be a unifying moment for Europe? – Europp
Wolfgang Schäuble: No Brexit impact on German economy – Politico
Former BOE Governor Confident About Carney and London After Brexit – WSJ
Adair Turner: The Brexit Alarm – Project Syndicate


UNITED STATES
  JOBS REPORT
5 Things to Watch in the June Jobs ReportWSJ
El-Erian: Why the U.S. Needs a Strong Jobs Report View / BB

  BOND YIELDS
Yields hit record lows, no hike until 2019 expected – Larry Summers
El-Erian: 3 Things to Know About Record-Low U.S. Yields – View / BB
Noah Smith: Fed Rates Are the Wrong Tool to Fight Bubbles – View / BB

  FED MINUTES
FOMC Minutes – FED
Fed minutes: a cloudy US economic outlook – ABN AMRO
Fed to ‘wait and see’ for even longer due to Brexit – Danske Bank





REGULARS
Danske DailyDanske Bank

Eye-OpenerNordea
Brent buoyant, Bullish bourses, Beppe benefiting * US labour market teasers today * FOMC minutes revealed Brexit and payrolls worries * Business as usual at the Riksbank

Morning MarketsTF
Shares in Tokyo headed lower again today deepening Wednesday's tumble. The rising yen deserves much of the blame for that prompted at least in part by the Brexit aftermath. Even higher crude prices and an overnight rise on Wall Street failed to cheer Japanese investors. Meanwhile Australia's S&P/ASX200 gained ground thanks to a bounce for resources and the big banks.

Euro wrap-upDaiwa
 
Daily Market CommentMarc Chandler
Sterling Bounces Two Cents, but Does not Appear Sustainable

Daily Market Comment Macro Man
The Good, the Bad, and the Ugly

Daily Press Summary Open Europe
French government moves to attract finance to Paris following Brexit * Slovakian PM calls for sober EU response in wake of Brexit vote * Final two in Conservative leadership contest expected to be known after 4pm today * MPs pass motion calling on government to guarantee rights of EU migrants in Britain * Drownings in the Mediterranean rise as people traffickers send more boats * Italy and EU Commission still in talks about bank recapitalization * French Budget Minister sees marginal impact of Brexit on France’s GDP growth * Frustration with EU will push China to make trade deal with UK, Chinese official says * University projects hit by Brexit uncertainty

Brussels PlaybookPolitico
Almedalen festival — Poroshenko the believer

US OpenZH
European Stocks Storm Higher As Bank Fears Subside; US Futures Flat

FrontrunningZH

FX UpdateTF
The market snapped up greenbacks in the wake of a surprisingly strong May ISM non-manufacturing survey release yesterday but as the news and listless FOMC minutes rhetoric failed to budge the Fed outlook the reaction quickly fizzled. Does this suggest a high bar for USD bull’s on Friday’s US employment report?

From the FloorTF
A touch of optimism has crept into Europe this morning. Bourses in the region are mostly higher and bond yields are gently ahead in the wake of a data-fuelled Wall Street rally yesterday.


FINNISH
AamukatsausNordea
Epävarmuus valtasi Britannian * USA:n palvelusektorin luottamus yllätti kesäkuun osalta positiivisesti * Ruotsin keskuspankki piti korot odotusten mukaisesti ennallaan * Punta jatkoi heikentymistään


Kuinka suuri aukko Italian pankkien taseessa? Roger Wessman