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Thursday, July 4

4th Jul - US closed #4128


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EUROPE
Germany and France Push for EU Competition Changes BB
Call comes after an intended tie-up between Siemens and Alstom was shot down earlier this year.

Mifid II: research, reductions and revolutionFT
The unintended consequences are often what you least expect.

EU Compromise Exposes Merkel’s Waning InfluenceWSJ
Merkel ceded ground to Macron in this week’s agreement to apportion the EU’s top jobs. The deal exposed the chancellor’s shrinking influence on the international stage while highlighting the French president’s ability to strike unconventional alliances.

Lagarde’s First Job as ECB Boss: Sway GermanyWSJ
Draghi’s successor faces critical decisions about policies that have been unpopular in Germany

Editorial: A Politician for the European Central BankWSJ
Europe reaches outside the monetary guild for its chief central banker.

ECB's De Guindos praises Lagarde's nomination to be ECB chiefReuters

For The First Time Ever, German Yields Drop Below The ECB's Deposit Rate ZH

German Bund yield plumbs new lowFT
Investors predict renewed stimulus from ECB under Christine Lagarde

Retail sales drop again, pushing ECB closer to more stimulusING
 

UNITED STATES
The Trump Federal Reserve 2.0 WSJ
Two nominations inject some much-needed intellectual diversity.

The decline of US business dynamismvoxeu
The US economy has witnessed a number of striking trends that indicate rising market concentration and a slowdown in business dynamism in recent decades.


OTHER
Why I've Lost Faith in China's Private SectorBB
With corporate-governance scandals piling up, there's little to inspire confidence as the economy weakens.

Tehran fumes as Britain seizes Iranian oil tanker over Syria sanctions Reuters
Iran could consider talks with U.S. only if sanctions lifted, Khamenei permitsReuters

Global real rates: a secular approachBIS
The consumption-to-wealth ratio predicts future movements of the global real risk-free rate. The roaring 1920s and exuberant 2000s were both marked by a rapid decline in the consumption-to-wealth ratio, with both ending in a low rate environment. This experience points to the role of the boom-bust leveraging cycle during the two episodes. Empirical estimates forecast persistently low or negative real global interest rates in the foreseeable future.

Has globalization changed the inflation process?BIS
Although results vary across individual countries, the role of these global factors in explaining CPI inflation rates has increased over the last decade. These results suggest that economists should not throw away the old models of inflation, but add a more comprehensive treatment of international factors and allow their role to vary over time.

  IMF
Draghi Should Replace Lagarde at the IMFBB
The IMF may well prefer to hire a non-European as its next boss, but no one is better qualified than the departing ECB chief.

Europe Set to Keep Hold of IMF Leadership as Lagarde LeavesBB
Former U.K. Chancellor Osborne considers aiming for role *Tradition allows European governments to pick IMF Chief

Candidates eye prospect of succeeding Lagarde at IMFFT
Political and economic heavyweights line up for job that usually goes to a European


REGULARS
Five Things to Start Your Day AsiaBB

Eco Day AsiaBB
Trump Targets FX, Jobs May Sway Fed, Lagarde World View * U.S. trade gap widens to highest in 2019 as Trump policies hit * Scourge of ECB male oligarchy rejoices as Lagarde era beckons

Five Things to Start Your Day Europe BB

EU Open RundownRANsquawk

FirstFT Daily Briefing FT

Brussels BriefingFT
Treading the Leyen: Commanding a stable majority in the new parliament will be a far harder task for the German nominee than her predecessors

Brussels EditionBB
Von der Leyen’s Test

Brussels PlaybookPolitico
Brussels’ top Twitterati — Dawn of the age of Sassoli — Meet VDL

Danske DailyDanske Bank
US markets closed for the 4 July * The spread compression between core-EU and periphery government bonds continues * Tensions between Iran and US is rising

Eco Day EuropeBB
A Lagarde ECB, Fresh U.S. Targets, U.S. Jobs and Fed * As IMF chief prepares for new post, a dense record of stances * Slip in U.S. labor-market data could tip Fed into July easing

US OpenZH
S&P Futures Celebrate July 4th Above 3,000 As Global Yields Tumble

Eco Day USBB
A Lagarde ECB, U.K.'s Negative Surprise, FX Threats * As IMF chief prepares for new post, a dense record of stances * How the rise of populism impacts the economy around the world


FINNISH
AamukatsausNordea
USA:n palvelusektori heikkeni kesäkuussa odotuksia enemmän | Markkinat odottavat Lagarden jatkavan kevyttä rahapolitiikkaa EKP:n johdossa | Julkistuksien osalta on luvassa hiljainen päivä kun USA:ssa vietetään itsenäisyyspäivää