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Thursday, May 23

23rd May - Markets take a beating #4096


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EUROPE
Leonid Bershidsky: Angela Merkel Isn't Ready to Move to Brussels BB
There are good reasons politicians want Germany's outgoing chancellor to take up a top EU job. Trouble is, it would make no sense for her.

Europe’s ‘Nonsense’ Output Gaps Hide a Big Deflationary RiskBB
Economists say some figures for Spain and Italy “strain credulity”.

EU Elections: For many Brussels seems too far awayING
Most Europeans don't expect Brussels to help them with concerns such as ageing, falling ill and purchasing power issues. Instead, they would like transnational topics such as border security, Schengen reform and climate change put back at the heart of discussions. The chasm between the EU's role and people's concerns is a reason for rising Euroscepticism

French far-right tops poll, EU vote turns into Le Pen/Macron duelReuters

ECB: wait-and-seeING
There were few surprises in the minutes of the European Central Bank's April Governing Council meeting. The central bank pretty much remains in wait-and-see mode. The new series of targeted longer term refinancing operations (TLTROs) could become a way to fine-tune monetary policy, while a tiered deposit rate scheme is still a long shot

Europe DailyABN AMRO
ECB April meeting account signals concern about inflation expectations * Signs that export weakness is impacting domestic economy


OTHER
Trump set to unveil $16bn aid package for US farmersFT
US president looks contain damage from trade war with China ahead of 2020 elections

Karl W Smith: How This Trade War Will Remake the WorldBB
As China and the U.S. form competing coalitions, other nations and businesses will be forced to choose.

Leonid Bershidsky: U.S. and China Go Their Own Ways With AIBB
Western democracies want algorithms that are transparent and can be appealed to humans. That's a better approach.

Mark Gongloff: The Trade War’s Impact Comes in All Shapes and SizesBB
China and the U.S. duke it out, and there could be some unexpected global ramifications.


REGULARS
Five Things to Start Your Day AsiaBB

Eco Day AsiaBB
Fed Not Rushing, Xi's New ‘Long March,’ Trump End Game * Central banks urged to join together to lift inflation targets * New podcast: Is Australia’s record stretch of growth at risk?

Five Things to Start Your Day Europe BB

EU Open RundownRANsquawk

FirstFT Daily Briefing FT

Brussels BriefingFT
Rutte’s challenge to upstart nationalist Baudet backfires: Thierry Baudet looked more comfortable than the prime minister in a testy 65-minute debate

Brussels EditionBB

Brussels PlaybookPolitico
Bumper Election Day edition — Juncker vs. ‘stupid nationalists’ — Inside Dutch, Irish votes

Daily Market Comment Marc Chandler
Trade, Brexit, and Disappointing Flash PMIs Weigh on Global Markets

Five Things to Start Your Day USBB

US Open RundownRANsquawk

US OpenZH
"Sea Of Red": S&P Futures, Bond Yields Tumble As All Out Trade War Becomes "Base Case"

Eco Day USBB
China Response, Pessimistic Outlook, Fed Patience * China puts ball in U.S. court, seeks action before more talks * Full-blown trade war quickly shifting from risk to baseline