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Monday, November 10

10th Nov - Beginning of a slow week



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EUROPE
Putin builds China links as US ties frayFT
Move comes after Moscow accuses Washington of destabilising the world

Alleged Sarkozy plot rocks French politicsFT
Scandal centres on conversation between Hollande aide and Fillon

Catalonia vote: 80% back independence – officialsBBC

Getting the Germany argument rightmainly macro
As the Eurozone experiences a prolonged demand-deficient recession, and given Germany’s pivotal role in making that happen, it is important to get the argument against current German policy right.

Europe’s Dog in the NighttimeProject Syndicate
As Sherlock Holmes understood, a dog that does not bark in the nighttime usually goes unnoticed. In Europe’s case, the EU’s fiscal rules are at issue, and the Commission – in principle the EU’s watchdog – should bark loudly when they are flouted.

Europe braced for some dismal figuresReuters
After Draghi got his colleagues to sign up to a target for pumping money into the ailing euro zone economy, a raft of GDP reports are likely to show just why more help may be needed.

  CRISIS COUNTRIES
Spain Outshines Euro Area as Draghi Morality Tale EchoesBB

Property prices in Spain poised to bottom outTradingFloor
Since 2007, house prices down 40% * Far fewer building permits granted * House transactions up by 6% on last year

Greek mythology extends to bailout TradingFloor
The government of troubled Eurozone member Greece is claiming it will steer the country out of the bailout a year early. But this statement is ridiculous if the first thing the EU will have to do is to grant Greece new financing - and this is exactly what is going to happen. The only sensible option is for Greece to extend the current bailout up to 18 months. This would allow Greece more time to meet the criteria for the release of the last EUR 1.8 billion tranche of the existing program, which will be lost unless it is disbursed before the end of the year.

Russian rouble - a free jump into free floatDanske Bank
Russia presses ahead with floating roubleFT

  EUROPEAN CENTRAL BANK
Summary of ECB's latest monetary policy Sober Look

Draghi Summons Banking Know-How for ECB Posts as Role ShiftsBB
Two key monetary-policy posts with non-ECB experts on how lenders function in the economy. The appointments mark a trend of turning to outsiders as the 16-year-old institution struggles to meet its changing responsibilities with existing staff.

Target the SMEsThe Economist
The effectiveness of long-overdue quantitative easing by the ECB will depend on the quantity and quality of the assets purchased and on the fiscal stance in the euro zone.

AQR and the Eurozone stress testsVoxEU.org
The ECB has published the results of its asset quality review and stress tests of Eurozone banks. This column argues that, while this process had clear shortcomings, it still constitutes a huge improvement over the three previous exercises in the EU. Nevertheless, the banking union is far from complete, and the biggest risk now is complacency. A long-term reform agenda awaits Europe.

UNITED STATES
Unemployment close to official NAIRU estimatesAlpha Now

ASIA
Xi and Abe hold landmark summitFT
China and Japan took a significant step towards mending their abysmal relationship on Monday as President Xi Jinping and Prime Minister Shinzo Abe held their first official meeting since the two nationalistic leaders came to power in 2012.

Monetary vs. fiscal credibility in JapanBruegel
The damage inflicted by the introduction in April of the first major tax increase in 17 years has led to calls for postponing the next scheduled raise in the consumption tax for fear that it would, otherwise, affect the credibility of the monetary regime change. But with a debt load that exceeds 240% of GDP, several commentators believe that backtracking on the consumption tax could cause a fatal loss in Japan’s fiscal credibility.

Economists React: Chinese Inflation in Low Gear. Time for A Rate Cut?WSJ

OTHER
Daily Central BanksWSJ
Hilsenrath’s Take: Inside BOJ Move, Kuroda Navigates Shifting Forecasts and Alliances * How BOJ’s Kuroda Won the Vote for Stimulus Expansion * Fed to Markets: Brace for Volatility * U.S. Jobs Market Improving Faster Than Fed Expects, But Policy Steady * Banks to Be Forced to Hold Big Capital Cushions

Daily MacroWSJ
News developments Monday that are ostensibly domestic or bilateral in nature speak more powerfully to some of the broader geopolitical challenges facing the world.

Danske DailyDanske Bank

Dollar Begins Better Offered amid Corrective Pressures Marc to Market

FX Update: The US dollar's moment of truthTradingFloor

Global Central Banks Calendar for Week WSJ

Printing money to fund deficit is the fastest way to raise ratesFT
No technical reasons exist for rejecting this, only the fear of breaking a taboo, writes Adair Turner

FINNISH
Ex-puoluesihteeri: KGB:n rahaa supolle saattoi päätyä keskustalleVerkkouutiset
Suojelupoliisin päällikön 1970-luvulla KGB:lta saamaa rahaa saattoi ex-puoluesihteerin mukaan ohjata eteenpäin keskustapuolueen säätiölle.

IMF laatii Suomesta julkisen talouden läpinäkyvyysarvionVerkkouutiset

Nordea arvioi Saksan ajautuneen taantumaanVerkkouutiset

Italian teollisuustuotanto selkeään laskuunVerkkouutiset

Lisävelka on ongelma eikä pelastusPeter Nyberg

Teollisuustuotanto syyskuussa -10,6% YoY – Tilastokeskus
Teollisuuden uudet tilaukset kasvoivat syyskuussa yli puolet vuoden takaisesta – Tilastokeskus