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Thursday, January 31

31st Jan - Italy in recession #4009


EUROPE
Deutsche Bank Sees Commerzbank Merger by Mid-YearBB
Executives are said to worry bank is running out of time * CEO Christian Sewing has pleaded for patience with his plan

Deutsche Bank Merger Looks Real, and It’s Scary BB
Three questions the bank needs to answer before any Commerzbank tie-up.

Euro area: Recession creeping in from the SouthNordea
The Euro-area economy seems to be stuck at a low gear, and latest confidence data do not signal any quick turnaround. The Italian economy is back in recession, while the French and Spanish economies offer some hope.

Eurozone: No bounce back in GDPING
GDP growth of just 0.2% quarter-on-quarter in the final quarter of 2018 confirms the slow growth environment that the eurozone has slipped into and there does not seem to be an easy way out as downside risks persist in early 2019

Italy Officially Slides Into Recession After Budget Battle With Brussels ZH

Italy’s faltering economy to test populists’ plansFT
Recession feared but government insists spending can correct years of anaemic growth

Italy Caps Tumultuous Year With First Recession Since 2013BB
Euro area’s third-biggest economy shrinks for second quarter * Disappointing figures will put pressure on coalition in Rome

Italy entered technical recession in 4Q18 ING
This was not surprising, on the back of available evidence. As chances of a swift exit from recession in 1Q19 now look slim, we revise our forecast for average 2019 Italian GDP growth to 0.2%


UNITED STATES
  FEDERAL RESERVE
The Fed is doneABN AMRO
Surprise pivot to a neutral policy outlook * Likely an earlier end to the balance sheet run-off, but a high bar to use it as a policy tool?

FOMC: market friendly; possibly finished tighteningDaiwa
At the very least, the new information suggests a long pause in the tightening process; one could
reasonably argue that the tightening cycle could be over.
 
Review of the Federal reserve’s January meetingPictet
Dovishness was on full display at the Fed meeting on 30 January.

Federal Reserve’s ‘momentous’ U-turn prompts puzzlementFT
US central bank faces criticism for bending to market pressure over rates guidance


OTHER
Two Brinkmanship Games and a Possible Third Marc Chandler
UK government vs EU and the House of Commons * US and Chinese trade talks * Russia and China vs US over Venezuela


REGULARS
Five Things to Start Your Day AsiaBB

Eco Day AsiaBB
Fed Buckles to Markets, Trade Talks Begin, N.Z. Shrinks * Top Japanese currency official opposes clause in any U.S. deal * Preview of first readings of Spanish, Italian, euro-area GDP

EU Open RundownRANsquawk

FirstFT Daily Briefing FT

Brussels BriefingFT
An unlikely alliance of the EU’s fringe parties - MEPs will vote on whether to give themselves the power to break up bogus groups

Brussels EditionBB

Brussels PlaybookPolitico
Berlin’s got 99 problems and a jet is one — Brexit car crash — Holocaust remembered

Eco Day Europe BB
Fed's Buckle, Europe's GDP, Japan's Stance on Yen * Japan yen chief signals opposition to clause in any U.S. deal * Preview of first readings of Spanish, Italian, euro-area GDP

Daily Market CommentMarc Chandler
Did Powell Toss in the Towel or was it a Tactical Retreat?

Five Things to Start Your Day USBB

US Open RundownRANsquawk

US OpenZH
Global Stock Rally Fades After Italy Slides Into Recession

Eco Day USBB
Fed Pause, Europe Looks Sluggish, Trump Trade Talks * Fed’s dovish pivot flattens remaining rate-hike expectations * Europe’s economy scarred by Italian recession as risks pile up


FINNISH
AamukatsausNordea
Fed pysäytti koronnostot tältä erää, dollari heikentyi | Euroalueelta saadaan tänään alustavat BKT-luvut neljänneltä vuosineljännekseltä | Euroalueen talouselämän luottamus laskussa, Kiinan teollisuuden näkymät yhä negatiiviset