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Monday, June 25

26th Jun - Bad vibes in the markets




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EUROPE
  EUROPEAN CENTRAL BANK
Euro area inflation - not out of the woods yet Danske Bank
Accelerating wage growth raises the prospect that the gradual rise in core inflation will continue. We remain somewhat sceptical, as especially domestically generated price pressures remain muted. Hence, we expect the ECB to stick to its mantra and remain patient, prudent and persistent.

Measures of underlying inflation for the euro area ECB

Macroeconomic imbalances in the euro area: where do we stand? – ECB

  EURO AREA REFORM
Eurozone: Setting and showing limits to the French-German axis
ING
Eurozone finance ministers tried to put up a brave front at last night's meeting in Luxembourg. But there was more disagreement than agreement on how to further integrate the monetary union

12 European States Revolt Against Merkel, Macron Plan To Reform EuropeZH

Editorial: Europe’s Monetary Union Is Still Unfinished WorkBB
The euro was a bold creation, but it won’t succeed without further reform.

  MIGRATION
EU Seeks Migration Deal in Summit With Merkel's Fate at Stake
BB
Germany may seek patchwork of bilateral deals to stem influx * EU divided over revamp of rules for allocating refugees

Divided EU leaders convene for emergency talks on migration
Reuters
EU leaders attempt to bridge their deep divisions over migration, an issue that has been splitting them for years and now poses a fresh threat to German Chancellor Angela Merkel.

Italy stand-off looms as migrants left stranded at sea
FT
Boats near Malta and Sicily refused permission to dock amid hardening stance on refugees

Italy disrupts ‘summit to save Merkel’ on migrationFT
Populist demands to rip up existing system add to pressure on German chancellor


UNITED STATES
Donald Trump and the 1930s playbook: liberal democracy comes unstuckFT
Trade wars and the targeting of minority groups in the US and some EU countries have strong historical echoes


OTHER
Yield Outlook: ECB to keep long yields down for the rest of 2018Danske Bank

Annual Economic Report 2018 BIS

Nomura: Here Is The Real Reason Behind The "Global Growth Scare"ZH

Weekly View – Greece out of the woods, Italy raising doubtsPictet
The week gone by saw some good news in Europe in the form of a debt relief agreement for Greece that ends eight years of bailouts and gives that country some measure of spending flexibility.

  TRADE WAR
Merkel-Trump Clashes Push Germany to Watershed Moment With U.S.BB
In Berlin, the long German embrace of America is loosening * Unsolved differences lead to ‘most volatile’ moment since 1949

The return of capital controlsFT
If the aim is to tackle the deficit, go after the capital removed from the Chinese people and spent on US dollar assets.

Trade War Could Trigger Global Recession, China and Europe WarnBB
Both sides ‘firmly oppose’ unilateralism, Xi aide Liu He says * U.S. to release plan on restricting China investment in tech

U.S. Plans to Curb Chinese Tech Investments, Citing SecurityBB
Tough stance said to have reluctant support from Mnuchin * Mnuchin says limits aimed at all countries stealing technology

Trump tariffs force companies to rework supply chainsReuters

Trump adviser Navarro says investment restrictions won't be globalReuters

Europe to retaliate if U.S. imposes auto tariffs: FranceReuters


REGULARS
EU Open RundownRANsquawk

Market Briefing: Daily Markets OverviewYardeni Research

FirstFT Daily BriefingFT
Global stocks fall, Oprah’s diet win, positive death

WSJ CityWSJ
Trump Plans to Ratchet Trade Tensions With China, Turkish Lira Jumps on Convincing Erdogan Win

WSJ EconomicsWSJ
Trump Ready to Block China From Investing In U.S. Tech

Danske DailyDanske Bank

Daily Market CommentMarc Chandler
Trade Tensions Weigh on Equities, Lift Yen

Brussels PlaybookPolitico
Erdoğan claims victory — Migration stink bomb — Germany and Italy? It’s complicated

Five Things You Need to Know to Start Your DayBB

US OpenZH
Global Stocks Dive On Fears Of "Irreversible" Trade War; Italian Bonds, Turkish Lira Tumble

AamukatsausNordea
Euroalueen ja USA:n inflaatioluvut luvassa perjantaina | Euroopan unionin huippukokous huomion keskipisteenä torstaista perjantaihin | Englannin keskuspankki piti rahapolitiikkansa ennallaan, OPEC päätti öljyn tuotannon lisäämisestä