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Tuesday, August 23

23rd Aug - European PMIs don't notice Brexit






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EUROPE
Merkel, Hollande, Renzi: Symbolism, but no substancePolitico

Merkel: EU’s Turkey deal a model for North African countries – Politico

Profitability and Balance Sheet Repair of Italian Banks IMF

Sweden: QE reinvestments lead to continued buying in 2017Nordea

Seller’s Paradise: Companies Build Bonds for ECB to BuyWSJ

Flash Eurozone Composite PMI – Markit
Flash Germany Composite PMI – Markit
Flash France Composite PMI – Markit
Stable PMIs – stable growth – Nordea
Resilient PMIs – the recovery should continue – Danske Bank


UNITED STATES
Is Yellen about to demote the Fed?TF
Speculation over the Federal Reserve's next move on interest rates has devolved into a lot of haggling over a tiny potential shift. But will the upcoming Jackson Hole summit offer markets any new direction?

Why Foreign Demand For US Treasuries Has Disappeared ZH

Flash US Manufacturing PMI Markit


OTHER
Jan von Gerich: Bonds: Return of riskNordea
In the shadow of general spread narrowing, renewed worries towards Portugal have reminded that political risks can still move markets. While most other countries appear better shielded from similar market developments for now, the autumn is likely to bring a general correction higher in bond spreads.

Time to bring realistic models of human behaviour into economic policy and regulationBoE’s Underground Blog

Goldman Sachs: "OPEC Freeze Insufficient To Support Prices; Rally Should Stall" ZH

Equity Anomalies Persist in International MarketsQuantpedia

There’s no yield, and Citi isn’t going to take it anymoreFT

Flash Japan Manufacturing PMIMarkit

REGULARS
Danske DailyDanske Bank

Eye-OpenerNordea
Euro-area PMIs – not much change expected * Fed December hike chance above 50% * EUR guided by PMIs today

Morning Markets TF
Oil has gone into reverse after the bedrock on which the rally of the last two weeks was built was shown to be flimsy in the extreme. Jackson Hole looms large and has markets in defensive mode ahead of the pivotal meeting Friday.

Euro wrap-upDaiwa

Daily Market CommentMarc Chandler
Broadly Mixed Dollar in a Mostly Quiet Market

Daily Market CommentMacro Man
Wheeler asks the questions: will Yellen answer?

Daily Press SummaryOpen Europe
Italian, French and German leaders call for greater EU cooperation on defence and security post-Brexit, though remain short on details * UK pushes back at Swedish PM’s warning over corporation tax * Turkey withdraws ambassador to Austria as diplomatic row deteriorates * Sarkozy announces French Presidential campaign * Bulgaria calls for help from EU to secure its border to Turkey * Serbia Foreign Minister labels Croatia “the EU’s biggest disgrace” * Finland seeking to sign agreement on closer military cooperation with the US this Autumn

Brussels PlaybookPolitico
Russian shadow over Estonian election — Serbia-Croatia spat — Balkan backslide

US OpenZH
Stocks Creep Higher As Dollar Resumes Falling, Oil Slides For Second Day

FrontrunningZH

FX UpdateTF
Kiwi buyers pounce again as RBNZ’s Wheeler admits little the central bank can or at least is willing to do to stem a higher currency. Elsewhere sterling is higher on UK housing stimulus talk and USD is broadly weak.

From the FloorTF
Today's Asian session saw the kiwi rally by 60 pips as the central bank denied the need for a series of rapid interest rate cuts. Central bank policy of course remains the prime concern ahead of Friday's speech from Fed chair Yellen but commodity markets are a major focus as well with gold in particular being placed on the back foot of late.



FINNISH
AamukatsausNordea
Veroyllätys pelastaa ostovoiman * Fedin Fischeriltä haukkamaisia kommentteja * Saksan teollisuustuotannossa väliaikainen lasku * Euroalueen elokuun ostopäällikköindeksi pysynee tänään entisellään

Brysselin kone: Kenen on vastuu, jos EU-alueen pankki kriisiytyy?YLE
Pitäisikö EU:n alueiden pankkien kriisiytyessä ottaa pankkien hallitusten hallitusvastuu vakavammin, kun pankkiunionissa ollaan osin siirtymässä pankkien yhteisvastuihin ja sijoittajavastuuseen? Ja olisiko samalla syytä nostaa pankkien vakavaraisuusasteita? Haastateltavana on KHT-tilintarkastaja Yrjö Tuokko ja toimittajana Maija Elonheimo.