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Wednesday, May 24

24th May - Fed and ECB in focus






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EUROPE
  EUROPEAN CENTRAL BANK
Draghi’s Lieutenants Spar as ECB Braces for Exit Strategy Debate – BB
ECB Leadership Doubles Down on Guidance as June Meeting Nears – BB
Survey on the Access to Finance of Enterprises in the euro area – ECB
Report on the Survey on the Access to Finance of Enterprises in the euro area – ECB
Financial Stability Review May 2017 – ECB
ECB Warns of Dangers of `Ripple Effect' From House Price Boom – BB
ECB Says Higher Yields Could Trigger New Debt Concerns – BB


UNITED STATES
  TRUMP BUDGET
Trump's budget seems dead on arrival, don’t expect too much of Trumponomics – Danske Bank
Editorial: Trump's Budget Is a Waste of Everybody's Time – BB
Trump’s proposed budget is light on details – Pictet
Five Takeaways from Trump's First Budget – Marc Chandler
We Need To Understand Trump To Understand Trump's Budget – Forbes

  FEDERAL RESERVE
BofA: What To Look For In Minutes, And How To Trade Them – ZH
Minutes Signal Rate-Hike "Soon", Economic Weakness "Transitory" – ZH
Minutes: More details on Balance Sheet Reduction – ZH
Fed ties rate hike to economic rebound, sees balance sheet cuts in 2017 – Reuters
Most Fed Officials Saw Tightening ‘Soon,’ Favored Unwind Plan – BB


OTHER
Investors should look at the advance/decline-numbers – BB
Perspectives June-July 2017 – Pictet
What We’re Telling Clients About European Stocks – Joshua Brown
Goldman: "We Have Entered The Slowdown Phase", But Stocks Don't Care – ZH
Who's Buying the Dip in Stocks? BofA Clients Offer Some Hints – BB

  CHINA DOWNGRADE
China Hit by First Moody's Downgrade Since 1989 on Debt Risk – BB
Moody's downgrades China, warns of fading financial strength as debt mounts – Reuters
Moody's Downgrades China's Sovereign Over Slowing Growth And Debt Fears – Forbes
Downgrade of China puts focus back on financial risks – Danske Bank


REGULARS
Morning Report APACTF
The surprise piece of news was this morning's cut on China's financial rating by Moody's. It had an effect on the AUD but few other Asian currencies. Most Asian share markets are poised this morning to go higher but not with any great conviction

FirstFT Daily BriefingFT
Manchester bomber identified, City email prankster returns, China downgraded

WSJ CityWSJ
UK Raises Terror Threat Level, Glencore Approaches Bunge

Danske DailyDanske Bank

Eye-OpenerNordea
China downgraded * Oil investment survey from Norway and FOMC minutes * The USD reasserting itself as US Treasury yields climb * Likelihood of a Fed June hike priced around 80%

Morning MarketsTF
Moody's cut China's credit rating to A1 from Aa3 on worries about its growing debt and Chinese and Australian shares fell on the news though the reaction was relatively muted. Oil prices firmed on expectations that Opec-led production cuts will be extended at Thursday's Opec meeting.

From the FloorTF
The Moody's downgrade of Chinese debt saw iron ore futures crater as markets weighed the possibility of a deepening growth contraction. The move hit AUD, but not as hard as might be expected given USD's gathering bid.

Daily Market CommentMarc Chandler
Dollar Consolidates, While Market Shrugs Off China Downgrade

Brussels PlaybookPolitico
Manchester arrest — Hurricane Trump — Eurogroup’s deficit

Five Things You Need to Know to Start Your DayBB

10 things you need to know before the opening bellBI

US OpenZH
China Downgrade Forgotten As Asia Closes Higher, Futures Flat Ahead Of Fed Minutes

FrontrunningZH

FX UpdateTF
The US dollar consolidated across the board as last week’s USD-negative events have run out of fuel to drive further weakness. Meanwhile Moody’s lowered Chinese sovereign debt rating and AUD took it on the chin.


FINNISH
AamukatsausNordea
Tänään huomio Fedin tasenäkymissä * Fedin kokouksen pöytäkirja julkaistaan * Trumpin hallinto esitteli budjettiehdotuksensa vuodelle 2018 * Tänään julkaistaan Suomen työttömyysaste

Suomi ei hyödyntänyt EKP-politiikan mahdollisuuksiaNordea