Enraged
voters in Germany’s mining heartland are on the verge of a rebellion.
German
slowdown spells trouble – Politico
The
shrinking German economy suggests the Midas touch of its longtime leader is
fading.
The
Summer That Busted Myths About Europe – WSJ
Brexit
wasn’t the start of a revolution. If anything, it has shown why Europeans tend
to tolerate the EU.
Europe’s
last line of defense
– Politico
Calls
for a more protectionist European economic model are growing, thanks to the
trade war and Euroskeptic populists.
ITALY
Italian Fiasco Proves One Thing About the Far Right – BB
Radical
nationalist parties are deeply unreliable coalition partners.
Italy
parties reach tentative deal on new government – FT
Ten-year
bond yield falls below 1% on expectations of investor-friendly outcome
Five
Star sets more demands for new Italy coalition – FT
Ultimatum
reduces hopes that Conte can quickly form government with centre-left
Editorial:
Italy’s Progressive Surprise – WSJ
The
establishment and insurgent left team up to take out Matteo Salvini.
MIGRATION
The
EU’s Migrant Policy Is Lost at Sea – BB
Europe
should be aiding the NGOs that rescue drowning migrants, not punishing them.
Europe’s
refugee policy is adrift – FT
Financial
incentives are needed to convince countries to share the migrant burden
FISCAL POLICY
Taking
stock of the functioning of the EU fiscal rules and options for reform – ECB
Editorial:
Europe needs a stronger anchor for fiscal policy – FT
An
EU-wide spending rule would be simpler and clearer than the focus on deficits
The
potential for euro fiscal stimulus – ABN
AMRO
The
call for fiscal stimulus in the eurozone is becoming louder but the room for
stimulus is limited by EU rules and national political choices. We have calculated the potential room for
stimulus from different perspectives, with the resulting amounts varying from
around EUR65bn to around EUR160bn. This
could potentially lift eurozone GDP growth by between 0.25 and 0.75 pps. Current
indications are that any stimulus would be at the lower end of the range
EUROPEAN CENTRAL BANK
Can
the ECB achieve shock and awe? – ABN
AMRO
Size
of asset purchases is where there is room to surprise * Rate cuts * Mitigating
measures * Net asset purchases * Forward guidance * Review of inflation aim *
Draghi
Gets Warnings From ECB Hawks as Stimulus Talks Near – BB
Knot,
Weidmann, Lautenschlaeger don’t support resuming QE * Several banks have
predicted a stimulus package on Sept. 12
Dudley’s
Vision of a Political Central Bank Is Alive. In Europe. – BB
Mario
Draghi shows that central bankers can be politicians, too.
Sluggish
eurozone consumer price growth pose headache for ECB – FT
Annual
regional inflation remains at 1 per cent, well below target
Eurozone
disinflation to spread to core in coming months – ABN
AMRO
Core
inflation to be dampened by upcoming labour market deterioration and weak
global price pressures
UNITED STATES
FEDERAL RESERVE
The
Fed Shouldn’t Enable Donald Trump – BB
The
central bank should refuse to play along with an economic disaster in the
making.
The Fed Needs to Fight Against Trump’s
Trade War, Not Trump
– BB
The central bank’s job is to respond to
shocks to the economy, regardless of their source.
Trump
Is Rude But Right About the Fed – BB
In
allowing money to tighten, the central bank may turn the microeconomic damage
of a trade conflict into a recession.
Editorial: Someone Just Blew a Hole in the
Volcker Rule
– BB
The
Trump administration couldn’t leave well enough alone.
The
Fed’s Stimulus Might Be Undermining Growth – BB
What
if low interest rates are bad for productivity?
OTHER
Asia digs up and burns three-quarters of
the world’s coal –
Economist
That must change if the climate is not to
How the G7 fell for the Amazon scam – Politico
The
fires aren’t an epochal event, and aren’t the spontaneous result of global
warming.
Trump’s Greenland gambit might be crazy —
but it could also be the future – Politico
Notions of territorial control will likely
get a little more fluid in the future.
The corrupting of democracy – Economist
Cynicism is gnawing at Western democracies
Editorial: How central bankers can survive
populist attacks
– FT
Rate-setters should remain calm and tell
the unvarnished truth
How economic integration fuels macroeconomic imbalances – BoE
Central
banks can no longer afford to act in isolation – FT
International
spillovers from monetary policy have been amplified by increased globalization
Adair
Turner: Central banks have lost much of their clout – FT
Monetary
policy is no longer enough to keep the economy on track
Perspectives
Summer 2019 –
Pictet
The
era of economic slowbalisation *
Monitoring
Global Financial Stability – IMF
CHINA
China
Rebukes EU, U.S. Politicians for Interfering on Hong Kong – BB
China’s
‘helicopter money’ is blowing up a bubble – FT
Investment
implications go far beyond the mainland’s markets
Tide
Goes Out for China's Skinny-Dipping Banks – BB
An
accounting rule change and an economic slowdown are combining to magnify losses
on loans and financial assets.
Bond
market not betting on China reviving growth – FT
Drive
into haven assets points to deeper worries than just the trade war
China
to impose ‘social credit’ system on foreign companies – FT
EU
chamber of commerce warns over risks from emerging rating framework
China
Factory Outlook Worsens in August as Trade War Escalates – BB