Special: Fed Watch (updated)
Roundups &
Commentary
News – Between
The Hedges
Markets – Between
The Hedges
Recap – Global
Macro Trading
The Closer – alphaville
/ FT
Europe: European Markets Plunge Most In 20 Months – ZH
US: Liquidation - Stocks, Bonds, Commodities Collapse – ZH
EUROPE
IMF warned it would
suspend aid payments by the end of next month, unless a shortfall in Greece’s bailout program was filled by euro-zone
leaders.
Bank of Spain Working
Papers by Pablo Hernández de Cos and Enrique Moral-Benito
UNITED STATES
Philly Fed
Manufacturing Survey indicates Expansion in June – Calculated
Risk
Strongest Philly Fed
Since April 2011 Reinforces Taper Tantrum – ZH
Philly Fed Notes
Rebound in Manufacturing – WSJ
ASIA
China is going through a serious liquidity squeeze.
An unwind in the great Chinese over-invoicing
carry-trade? – alphaville
/ FT
The popular
explanation for the rise in Chinese repo rates is being linked to the
government’s desire to rein in the shadow banking sector. That is to say the
tightness is intentional. But what if it isn’t. What if it has more to do with
the unwind of yet another carry trade?
Here Is What's Going On In China: The
Bronze Swan Redux – ZH
The end of a major
shadow leverage conduit (one involving unlimited rehypothecation at that),and
the collapse of a core source of shadow liquidity. One month later, China's
"Lehman event" is on the verge of appearing, and with Overnight repo
rates hitting 25% last night, coupled with rumors of bank bailouts rampant, it
very well already may have but don't expect the secretive Chinese politburo and
PBOC to disclose it any time soon.
China's
Volcker shock – Free
exchange / The Economist
But when the banks
then come begging for the funding they need to support their hidden balance
sheets, they are once again at Mr Zhou's mercy. And so far, he has shown
little.
Let's hope China is prepared for its own version of the Great
Recession.
Briefing by BOJ Executive Director: More to
Come on Abe's Third Arrow – Marc
to Market
The key take away is
that investors should not rush to judgment about Prime Minister Abe's third
arrow--structural reforms. Many observers shared our disappointment with the
structural reforms Abe announced recently… New, expanded and targeted
structural reforms will likely be announced in late Q4.
Chinese monetary policy, with Maoist
characteristics – alphaville
/ FT
The following, from
Hexun News via Chinascope Financial, might be illuminating. It describes an
executive meeting of the State Council last night chaired by premier Li
Kequiang:
OTHER
Emerging Markets: What has Changed – Marc
to Market
The FOMC meeting and
the market reaction has fed into a deeper re-pricing of assets globally.
EMageddon: the Socratic dialogue – alphaville
/ FT
Nomura has published a
debate between Olgay Buyukkayali and Tony Volpon, top EM strategists, about the
sell-off.
IMF Research Bulletin – IMF (pdf)
Summarizes key
components of research done at the IMF
EMEA Weekly, Week 26 – Danske
Bank (pdf)
OECD: Falling Labor Costs Point to Low
Inflation Pressures – WSJ
Wages in developed
economies grew at a slower pace than productivity during the first quarter of
2013, an indication that inflationary pressures remain weak, the OECD said.
FINNISH
Teollisuudella
ei ole syytä luottaa Suomen valtion pitävän huolta teollisuuden eduista –
siksipä Suomeen ei investoida – tyhmyri
Ex-ministeriltä
suorat sanat Kataisen hallitukselle – IL
Ex-valtiovarainministeri Iiro Viinanen ärähtää
hallitukselle ja ay-liikkeelle.
EU-keskustelu
osoitti että sitä pitää jatkaa – demari
Pääkirjoitus:
Kultarannan pöydästä löytyi jokaiselle jotakin – IL
Eliitin aiempi eurohype on muuttunut
vähättelyksi ja synkistelyksi.
Ulkolinja:
Stora Enson tuplakirjanpito? – YLE Areena
Vuonna 2000 Stora Enso teki historiansa
huonoimmat kaupat ostamalla yhdysvaltalaisen Consolidated Papers -yrityksen.
Syntyi miljarditappiot, jotka Stora Enso pimitti kirjanpitoonsa, paljastaa
yrityksen entinen työntekijä