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EUROPE
A fully-fledged
financial union can be an efficient economic shock absorber.
EU should offer the UK
two options: either following a Norwegian style model or leaving entirely and
negotiating a free trade agreement in the same manner as other nations such as
the United States and Canada. Offering any concessions outside of these two
options would risk fatally weakening the EU and should be avoided at all costs.
UNITED STATES
While markets wait for
Janet Yellen's latest message about the direction of monetary policy, the
Federal Reserve chief and her colleagues already have one for politicians: the
U.S. economy needs more public spending to shift into higher gear.
Years of Fed Missteps Fueled Disillusion With
the Economy and Washington –
WSJ
Kocherlakota: The Fed Knows How to Hit Its
Target – View
/ BB
OTHER
But about 40 percent of
analysts surveyed said they expected the central bank to keep monetary policy
unchanged,
Richard Koo’s chart to explain the past 200
years – FT
REGULARS
Waiting for Yellen * More good news
from US manufacturers today? * EUR core and semi-core yields a tad higher * Weaker
EUR, stronger GBP
Asian currencies moved sideways and
equities traded gently lower in a lacklustre overnight session as investors
awaited Friday's keynote address in Jackson Hole by Janet Yellen chair of the
US Federal Reserve.
Narrow Ranges Prevail as Breakouts
Fail
The lowest vol in a lifetime
UK net migration at 327k in year to
March 2016 as May considers quick crackdown on non-EU migration * Merkel
prepares groundwork for new balance within EU and shows willingness to give UK
time to prepare for Brexit * Norway keen to keep close ties with UK after
Brexit but admits it may take time * Corbyn camp dismisses Smith’s suggestions
of second EU referendum as “devious and undemocratic” * US Treasury accuses the
EU of trying to establish a “supranational tax authority” * New poll sees
Germany’s AfD on a two-month high * Leader of the Danish People’s Party resigns
after being accused of identity theft * European Commission clears
recapitalisation of Portuguese state-owned bank * Switzerland more concerned
with migration routes from Italy than Austria * EU to train Libya’s coastguard
in a bid to reduce migration
Global Stocks Decline Along With The
Dollar, As Jackson Hole Begins
The market gods have their thumb
firmly pressed on the pause button as we await the twin risks of potential
policy signaling from Fed chair Yellen tomorrow and what the Bank of Japan has
to say at its September meeting. The market may be expecting too much for the
short term from Yellen though she could deliver and important long term shift
in the Fed's policy stance.
Investors in gold are just one of
many whose eye is firmly fixed on the Jackson Hole summit particularly those
who have seen some spectacular returns from a 10% plunge in the Gold Miners
ETF.
FINNISH
Norjan
suunnitellut öljyinvestoinnit laskussa * Euro heikentyi eilen laajalla
rintamalla * Saksan talouselämän luottamus (Ifo) julkaistaan * Ruotsin
työttömyys hienoisessa nousussa