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EUROPE
Eurozone
banks hold record amounts if sovereign paper – Sober
Look
The
Forever Slump – Krugman
/ NYT
Given the
political and institutional constraints [ECB faces] , Europe will arguably be lucky if all it
experiences is one lost decade.
UKRAINE / RUSSIA
Putin's
olive branch sees Dax swoon and hearts melt – TradingFloor
Nadia
Kazakova: Dax spikes a percentage point Thursday after Putin's Ukraine olive branch * Putin's quotes
sufficiently vague to offer variety of possibilities * MICEX rise shortlived as
Russian traders sift through rhetoric
MORE ON EZ GDP
Q&A: How bad is the eurozone
slowdown? – FT
If the
doubters are right and growth and inflation remain elusive this autumn, Mr
Draghi will find it much easier to win support from Germany and other hawks on the governing
council to buy government bonds if Paris and Rome are playing along.
Eurozone
bond markets show the way to the ECB – TradingFloor
Eurozone
GDP data was weak but a mild relief and most of the reaction was in the bond
markets, not in the forex space. Interest rate differentials suggest a much
lower EURUSD
UNITED STATES
Yellen
Channeling Slick as Surrealistic Economy Shows ’67 Claims – BB
Even with
employment rebounding, Yellen has cautioned it still may be too soon to start
withdrawing accommodation. She will give the keynote speech to the Kansas City
Fed’s symposium in Jackson Hole, Wyoming, on Aug. 22.
Great
Graphic: US Household Debt and Composition – Marc
to Market
MACRO NUMBERS
Fed:
Industrial Production increased 0.4% in July – Calculated
Risk
U.S. industrial production edged higher
in July – Reuters
US industrial production rose 0.4% in
July to new all-time high – TradingFloor
U.S. producer prices moderate as
gasoline tumbles – Reuters
Producer
Prices Slide, Core PPI Rises – ZH
US empire manufacturing disappoints;
PPI in line – TradingFloor
US consumer confidence drops to 9-month
low in August – TradingFloor
ASIA
Asian Eyes on Jackson Hole – WSJ
Central
bankers meeting in Jackson Hole, Wyo., next week are set to discuss labor
market dynamics, and that’s a topic Asian policy makers are closely monitoring how
the U.S. Federal Reserve interprets U.S. labor data is crucial for when it
will decide to start guiding short-term interest rates higher. And that could
have a big impact on Asian economies whose asset markets have been buoyed this
year by cheap global money.
OTHER
Daily
Central Banks – WSJ
Hilsenrath’s
Take: Yellen to Turn to Labor Markets in Jackson Hole * Bullard Says Fed Getting “Pretty
Close” to Policy Goals * ECB Likely Faces Added Pressure Over Stalled Economy *
U.K. Wages May Be About to Take Off * Chile’s Central Bank Cuts Monetary Policy
Rate to 3.50%
Daily
Macro – WSJ
Markets are
coming into the end of the week on sounder footing, with Asian and European stocks
moderately higher, taking their cue from the U.S. overnight. There appears to be some
relief that the tensions in the geopolitical arena have eased– particularly the
conflict in Iraq, where the ISIS rebels have been pushed back and a
refugee crisis seemingly averted. And perhaps there’s a realization that, no
matter what, there will continue to be significant support from easy monetary
policy.
Some
Reflections on a Quiet Day – Marc
to Market
FINNISH
Vähittäiskaupan myynti kesäk. -1,6% YoY – Tilastokeskus
Kesäkuussa 2014 vaihtotase ylijäämäinen – Tilastokeskus