W/E: Weekly Support (updated)
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EUROPE
EUROPEAN CENTRAL BANK
ECB’s
Mario Draghi and his misguided malcontents – FT
The ECB
president deserves support for his asset-buying plan
Mario
Draghi's QE: too little for markets, too much for Germany – The
Telegraph
Mario
Draghi, the ECB’s president, seemed unable to secure backing for his €1
trillion stimulus plan from Germany
The
ECB’s ABC of ABS is missing a few letters – Bruegel
After the
ECB last month announced a programme of private sector assets purchases, all
eyes were directed at Frankfurt yesterday. As expected, the ECB unveiled
further details of its new ABS and covered bond purchase programmes, revealing
that important issues remain unresolved (while others may soon become thorny).
Markets
and ECB set for a Mexican stand-off over policy action – TradingFloor
The ECB's
asset purchase plan and targeted loan programs are a form of credit easing
rather than quantitative easing. The plan is indicative of central bankers that
have their heads in the sand. Markets are unlikely to be fooled and will be
holding policymakers' feet to the fire until more dramatic action is enacted.
The
German Constitutional Court’s decision on OMT – voxeu.org
Following
the February 2014 decision by the German Constitutional Court on the OMT
commentators have declared the program “effectively dead”. Nevertheless,
financial markets seemingly ignored the decision and sovereign risk premia of
Eurozone crisis countries have continued to decline. Policy Insight 74 reviews
the legal issues underlying the German Court’s decision and the respective
responsibilities of the European Court of Justice. It explores whether likely
outcomes of the judicial process would support the benign market reaction to
the German Court’s announcement.
Draghi
Breathing Life Into Moribund ABS Bond Market – BB
Draghi’s
plan to kick-start growth by buying the securities spurred more than 10 billion
euros ($12.7 billion) of issuance in September. That’s almost double the
monthly average for the year, signaling a revival in a market that’s shrunk
more than 40 percent since 2010,
Draghi
Keeps QE Herd Waiting With Stimulus Goal Shrouded – BB
Draghi
hasn’t moved any closer to full-blown quantitative easing…Draghi’s reluctance
to spell out how many assets officials might buy disappointed investors pushing
him to go all-in.
Greek
Hopes to Slip Bailout Shackles Meet Draghi Hurdle – BB
Antonis
Samaras’s ambition to drive Greece out of its rescue program is running into a
roadblock. The country’s prime minister might be thwarted by conditions for the
ECB’s asset-purchase program,
MACRO NUMBERS
Spanish
services PMI misses expectations – TradingFloor
Euro zone
business growth in September weakest this year – Reuters
Euro area
services PMI misses despite German upside surprise – TradingFloor
U.K.
Services Growth Cools as Recovery Loses Some Momentum – BB
Euro zone retail
sales much stronger than expected in August – Reuters
Solid
retail sales suggest resilient domestic demand – Danske
Bank
Volume of
retail trade up by 1.2% in euro area – Eurostat
UNITED STATES
October
Macro Update: Growth With Falling Inflation – The
Fat Pitch
Markit
Services PMI Slides To 4-Month Lows As ISM Services Drops From 2005 Highs – ZH
ISM Non-Manufacturing:
Somewhat Slower Growth in September – dshort
EMPLOYMENT REPORT
The
September Jobs Report – The Numbers – WSJ
Quick Hits
From the September Jobs Report – WSJ
September’s Jobs
Report in 12 Charts – WSJ
Economists
React: ‘A Sigh of Relief’ – WSJ
Report
Keeps Early Rate Hike On Table, Tough Communication Decision For Fed – WSJ
5 Takeaways
– WSJ
September
payrolls: +248k, and jobless rate at 5.9% - FT
Strong
nonfarm payrolls print catapults EURUSD lower – TradingFloor
Job +248K
Beats Expectations, Unemployment Drops To 5.9% - ZH
Labor
Participation Rate To 36 Year Low; Record 92.6 Million Not In Labor Force – ZH
230K Jobs
Added In 55-69 Age Group; 10K Lost In Prime, 25-54 Group – ZH
Average
Hourly Earnings Suffer First Monthly Decline Since July 2013 – ZH
Unemployment
finally under 6 percent, but don’t expect a raise soon – WaPo
248,000
Jobs, 5.9% Unemployment Rate – Calculated
Risk
Party Like
it's 1999! – Calculated
Risk
Wages and
the Fed: Nothing to justify a rate hike – Krugman /
NYT
September
Jobs Report: Everything You Need to Know – WSJ
Jobs Report
in a Word: ‘Solid’ – WSJ
Part-Time
Employment Ratio Looking Better for the Core Age Group – dshort
ASIA
China’s
Services Gauge Declines as Economic Slowdown Deepens – BB
China
services growth dips to eight-month low in September – Reuters
OTHER
Daily
Central Banks – WSJ
Hilsenrath’s
Take: Jobless Rate Still Key to Fed’s Timing * Fed’s Dudley Says Those Who See
Lax Regulatory Oversight Are Wrong * ECB Pauses to Observe Results of Recent
Stimulus Measures * BOJ May Signal Flexible Time Frame for 2% Inflation Target
* IMF to Lower Global Growth Forecast Next Week
Daily
Macro – WSJ
Coming in
the wake of yet another round of disappointing data from the eurozone, if the
data show a decent performance in terms of job creation, it will underscore the
wide divergence between the U.S. and Europe. And that in turn should further
strengthen the argument of those who have bought into the dollar’s recovery
against the euro. Even though ECB’s Draghi seemed to suggest that
sovereign-bond purchases wouldn’t form part of the ECB’s coming
quantitative-easing program, the simple fact that the eurozone is expanding its
stimulus program while the U.S. is slowly unwinding its own gives momentum to
the dollar versus the euro.
Dollar
Remains Bid Post-Draghi, Pre-Jobs – Marc
to Market
FINNISH
Valtiovarainministeriön tulevaisuuskatsaus 2014 – VM
Vakaa ja tehokas Suomi yhdentyvässä Euroopassa
VM: Rahaliitto vie jäsenmaiden päätösvaltaa – TalSa
Valtiovarainministeriö varoittaa Euroopan rahaliiton
kehittämisen vievän talouspoliittista päätösvaltaa sen jäsenmailta.
Nousukausikaan ei ratkaisisi rakennetyöttömyyttä – Tilastokeskus
Asiantuntijat: Talouskasvu ei ratkaise työttömyyttä –
TalSa
Kartta paljastaa karun totuuden Suomen vähittäiskaupasta
– IL
Taloustieteen professorin mukaan keskittyminen on syynä
ruoan korkeaan hintaan Suomessa.
Setäjengi kouluttaa hallituksen hankalaa akkaa – NYT
Vain nuoret ja kauniit kelpaavat – HS
Puolustusministeriön katsauksessa sana "Nato"
mainitaan vain kerran – Verkkouutiset