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Tuesday, June 4

4th Jun - Rally on dovish Fed #4106


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EUROPE
Dissecting the Eurozone's (lack of) inflationFrances Coppola

Eurozone core inflation drops below 1% ahead of ECB meeting – ING
Eurozone inflation cools sharply ahead of key ECB meeting – FT

ECB Under Pressure as Inflation Slows More Than ForecastBB
Weak price pressures are gloomy precursor to policy meeting * Officials are due to unveil details of long-term loans

ECB preview – so close, yet so far awayPictet
Long story short, the ECB should continue to err on the side of caution, while preparing for dovish contingencies, which could range from the easy to the scary.

Leonid Bershidsky: Bannon’s Conquest of Europe Has Not Gone WellBB
Nationalists didn’t sweep the European Parliament election, and his lease for an Italian institute was revoked. Time to head home.

German industry says it has lost trust in Merkel coalitionFT
BDI lobby group accuses government of failing to prepare for an expected downturn

Salvini sets two-week deadline to end coalition deadlockFT
Comments follow Italian prime minister’s ultimatum to the government

Leonid Bershidsky: Russia After Vladimir PutinBB
The country's future might not be so dull as its present, according to the Free Russia Foundation.


UNITED STATES
  FEDERAL RESERVE
Dovish Powell Slams Yields, Dollar As He Opens The Door For More "Unconventional" MeasuresZH

Frontloaded easing cycle now priced inING
Remarks from Fed member James Bullard have raised expectations of Fed rate cuts- and the dollar has weakened as a result. But there are good reasons to think the dollar will stay supported

Powell says Fed ready to act if trade wars hit economyFT
US central bank chairman puts tariffs on list of concerns that could lead to looser policy

Powell, Taylor Differ on Effectiveness of QE: Conference UpdateBB
Research suggests unconventional policies boosted employment * Markets rally as Powell signals openness to interest-rate cut


OTHER
World Bank Cuts Global Outlook as Trade Tumbles to Decade Low BB
Bank forecasts world economy will expand 2.6% in 2019 * World Bank also revises global trade down by percentage point

Noah Smith: Look Who’s Winning the U.S.-China Trade WarBB
Third countries such as Vietnam stand to benefit as production leaves China.

Daniel Moss: In Australia, QE Is No Longer a Dirty WordBB
For a central bank whose main rate could conceivably approach zero in a year's time, officials need to contemplate what comes next.

Stocks Spike As China Says Differences With US Should Be "Resolved Through Dialogue"ZH

Wall Street Is Desperate for Wonks Who Can Explain the Rise of PopulismBB
Blindsided by Trump, investors are turning to Washington analysts to understand how volatile politics might affect their portfolios.

South Korea Economy Shrinks More Than Expected in First QuarterBB


REGULARS
Five Things to Start Your Day AsiaBB

Eco Day AsiaBB
Fed Easing Bets Surge, RBA Set to Cut, Factory Weakness * Another bad report card for Australia’s economy adds to pile * Global manufacturing was the weakest since 2012 last month

Five Things to Start Your Day EuropeBB

EU Open RundownRANsquawk

FirstFT Daily BriefingFT

Brussels BriefingFT
Germany’s coalition sees off collapse: With the SPD in crisis, how could the ruling alliance survive for another two years?

Brussels EditionBB

Brussels PlaybookPolitico
Italy sanctions — Talking Spitzen — Tonight’s hot ticket

Danske DailyDanske Bank

Eco Day EuropeBB
ECB Fresh Faces, Fed Easing Bets, ‘Big’ U.K. Trade Deal * U.K. retail sales drop by most on record in May, survey finds * Macron boost fades as foreign investors lose love for France

Daily Market CommentMarc Chandler

Five Things to Start Your Day USBB

US Open RundownRANsquawk

US OpenZH
Stocks, Futures, Yields Rebound As Selling Pauses

Eco Day USBB
Interest-Rate Cuts, Fed Policy Debate, ECB Concerns * Everything’s up for review at Fed’s big Chicago policy confab * Euro-area inflation slowed more than forecast in May


FINNISH
AamukatsausNordea
Bullardin kyyhkymäinen kommentti oli selkein koronlaskuun vihjaava merkki Fediltä sitten loppuvuoden 2015 | Euroalueen inflaatio painuu alemmas | USA:n teollisuussektorin kasvu jatkoi hiipumistaan toukokuussa