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Thursday, August 16

16th Aug - US and China talking? Markets recovering?



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EUROPE
MiFID II: not all doom and gloomFT
Some effects may have been exaggerated, but that's not the whole story.

  ITALY
Ashoka Mody: Italy Needs to Wake Up and Fix Its Banks
BB
The euro area’s most vulnerable economy is heading into a storm.

What would ratings downgrades mean for Italy?ABN AMRO
Downgrades could hurt market sentiment, but what we think really matters is the likelihood that Italian’s rating drops to non-investment grade.

From "Doom Loop" To Just "Doom": Italian Debt Faces A "Huge Structural Shift"ZH


OTHER
Feels Like 1997 Global Macro Monitor

Nicholas Colas: The 1997 Asia Crisis: "We Were There"ZH

Rising Interest Rates Challenge China’s Growth ModelBB
As its economy diverges from the U.S., China faces only hard choices.

Erdogan can’t sidestep the IMF for longFT
As debt repayments come due, Turkey needs more than Qatar

Turkey Rules Out Capital Controls As Germany Says IMF Bailout "Would Be Helpful"ZH

"Turkey Is Rewriting The Crisis Textbook": El-Erian Says It's Time To Cut ExposureZH

Turkey Stocks, Lira Slide After Mnuchin Threatens More SanctionsZH

"Virtually Everybody Knew This Was Coming"ZH
 
Global FX: This is a political worldING
Reports that a Chinese delegation will be heading to Washington for trade talks have added to the dead cat bounce that we’ve seen in risky assets

China: Pressures are buildingABN AMRO
After escalation of China-US trade war, there are plans to resume talks soon.  Trade tensions have left their mark on China’s financial markets. We expect CNY to stabilise versus USD, but revise our end-2018 forecast down. July data provide further signs that the economy is cooling although growth of exports and imports remains solid despite trade conflict. Beijing is tweaking its policy mix further to stabilise economy.


REGULARS
EU Open RundownRANsquawk

FirstFT Daily BriefingFT

WSJ EconomicsWSJ
U.S. Economy Powers Ahead, Global Markets In Focus

Danske DailyDanske Bank

Daily Market CommentMarc Chandler
Emerging Markets Stabilize, Dollar Eases a Little

Brussels PlaybookPolitico
Italy’s state of emergency — Europe’s Polish future — RIP Rita Borsellino

Five Things You Need to Know to Start Your DayBB

US OpenZH
US Futures Surge, Yuan Jumps And Dollar Drops As China-US To Resume Trade Talks

US Open RundownRANsquawk

AamukatsausNordea
Liira vahvistui toista päivää peräkkäin keskuspankin ja hallinnon toimien myötä | Norjan keskuspankki kokoustaa tänään, koronnostoa odotetaan syyskuussa | Britannian inflaatio odotusten mukaista heinäkuussa, öljyn hinta laski alle 71 dollarin