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EUROPE
A New
Pan-European Pension Fund? – Pension
Pulse
FISCAL POLICY
EU
Summit: Renzi vs Barroso over EU’s budget letter – FT
Helpfully,
the Italian government posted the “strictly confidential” letter it received
from the Commission’s economic chief, Jyrki Katainen, on its website today.
The
fulfillment of policy rules in the eurozone appears to be impossible without
growth, but growth appears to be impossible without breaking the rules. With
all of the rules pointing toward recession, how can Europe boost recovery?
EUROPEAN CENTRAL BANK
The
Draghi Grand Plan 2.0
– Humble
Student
The theatre
may be upsetting for some, but Europe is a place where the elite makes deals behind
closed doors. Watch for Merkel et al to relent and effect a fiscal stimulus for
structural reform bargain, but not before a lot of Sturm und Drang to show the hardliners
that they tried but compromised for the sake of European unity.
Mario
Draghi's German problem – Reuters
"It
has become personal," a third official from the ECB said. "Whenever
Draghi and Weidmann are somewhere at the same event, there are bets about
whether their paths are going to cross. Weidmann avoids Draghi like the plague."
The ECB
has good news for French households – FT
New working
paper on fragility and resilience of euro area households: French households
are the most financially resilient while German ones are surprisingly fragile.
The ECB
as lender of last resort? – VoxEU.org
As part of
the move to a banking union, the largest banks in the Eurozone will soon be
supervised by the ECB. This column argues that supervision and the lender of
last resort function should be seen as a joint product. After the introduction
of the euro, the national central banks continued to act as lenders of last
resort because bank supervision remained at the national level. Now that
supervision is moving to the ECB, so should the lender of last resort function
for the larger, cross-border, banks.
Here’s
How the European Bank Stress Tests Work – WSJ
Euro PMI
still trending lower – Danske
Bank
Eurozone
Businesses Cutting Prices – WSJ
Government
debt increased to 92.7%/GDP in EZ, 87.0% in EU28 – Eurostat
UNITED STATES
US
Manufacturing PMI Tumbles, Biggest Miss In 14 Months – ZH
Chicago Fed: Economic Growth Picked Up in September – dshort
ASIA
Beware
the Chinese FX reserve fall – FT
OTHER
Daily Macro – WSJ
Purchasing
manager indexes out of China and the eurozone pointed to a
modest improvement in business activity in both regions in October. The numbers
were hardly signs of robust growth but they for now forestall concerns that the
global economy is trapped in a rapid, downward spiral. If the U.S. continues to grow, the hope is that
it can drag the rest of the world higher from this modest base. That’s reflected in more stable
markets.
Douglas’ Take: Global Growth Worries Echo
Across the Pond * U.S. Agencies Approve Relaxed Mortgage
Rules * Eurozone Private Sector Picked Up Slightly in October * Bank of Canada Abandons Neutral Stance on Rate
Moves * Don’t Blame Central Banks for Wealth Gap
Sentiment
Healing, but Remains Spooked – Marc
to Market
FINNISH
Ilpo Kokkila lähtee EK:n johdosta: "Tämä aselvelvollisuus
on suoritettu" – HS
Kokkilan todennäköisin seuraaja on Koneen entinen
toimitusjohtaja Matti Alahuhta, joka toimii EK:n hallituksen
varapuheenjohtajana.
Elinkeinoelämä pelkää ilmastohintaa – HS
Teollisuutta kuristaa kallistuva sähkö, kotitalouksilta lähtee
ostovoimaa
Valuuttaliiton talousteoria puutteellista – Henri
Karjalainen / US