More on BIS and China.
Previously on MoreLiver’s:
Roundups &
Commentary
Frontrunning – ZH
Overnight: US Traders Walk In To Another Bloodbath – ZH
The Lunch Wrap – alphaville
/ FT
Emerging N.Y. headlines – beyondbrics
/ FT
Midday Express (EU daily
news) – Europa
Daily press summary – Open
Europe
Dutch government: Time for ‘ever closer union’ in the EU is over
Morning MoneyBeat: How to Cope With Rising Interest Rates – WSJ
Morning Bond Update – TradingFloor
Capital Market Drivers – Marc
to Market
EUROPE
The Euro Zone’s Got An Emerging Markets Problem – WSJ
First, there’s the
foreign-exchange effect… And then there’s the flight from risk.
Dutch government: "Time of ‘ever closer
union’ in every possible area is behind us” – Open
Europe
Merkel's CDU party has
voiced opposition to debt mutualisation and to Turkey's EU entry in its election manifesto. (Austria also opposes Turkey’s membership)
Ministers crawl toward bank resolution deal – euobserver
EU finance ministers
will reconvene Wednesday in a last-ditch attempt to agree rules on winding down
failed banks.
UNITED STATES
MACRO
NUMBERS
Chicago Fed: Economic Activity Slightly Improved in
May – dshort
Chicago Fed: "Economic Activity slightly improved
in May" – Calculated
Risk
Chicago Fed index
confirms Q2 US slowdown – TradingFloor
ASIA
Goldman Sachs: The
recent tightening of the interbank market has sent a strong policy signal that
the strong credit growth earlier in the year will likely not continue.
China’s economy is slowing down, but that was not exactly the impression I
got during my visit to Beijing about a month ago. It was my second visit to the Chinese capital.
PBoC cash crunch statement: relief for some and
pain for others – beyondbrics
/ FT
The People’s Bank of
China on Monday finally went public over the country’s liquidity squeeze… the
authorities don’t want a banking crisis. But they appear to be serious about
putting the brakes on credit growth, even at the cost of slowing the economy.
PBoC says banks can just deal with it – alphaville
/ FT
In case it wasn’t
clear enough that the People’s Bank of China is mostly okay with the squeeze in
interbank liquidity, it came out with another signal today.
China’s
liquidity crunch, and what it means for everyone – alphaville
/ FT
It’s hard to know
exactly what degree of control the PBoC has over the events unfolding in China’s interbank markets. On the one hand, making
the smaller banks and shadow finance entities sweat fits with the central
bank’s new high-priority goal, introduced late last year, of containing
‘financial risks’, and also with a broader government theme of clamping down on
excess.
A big PBOC bluff? – alphaville
/ FT
The PBOC’s “this is
not the liquidity crisis you’re looking for” statement at the weekend may have
drawn attention, but it didn’t really manage to reassure equity markets. The
Shanghai Composite closed over 5 per cent lower on the day:
The Chinese central
bank has taken a hard line on the country’s cash crunch, fuelling a stock
market rout amid concerns that its stance will harm growth prospects this year.
BIS ANNUAL REPORT
The BIS Loses Its Mind – naked
capitalism
Advocates Kicking
Citizens and the Bond Markets Even Harder
Dead-enders in Dark Suits – Krugman
/ NYT
A remarkable report
from the BIS.
Central bankers have found a new mouthpiece,
listen carefully – TradingFloor
Ken Veksler: The
market should take note of the Bank for International Settlements' annual
report in which it applauded the Federal Reserve for moving away (apparently)
from expansionary monetary policy and urged that other central banks follow
suit.
Fed and ECB timetable and agenda differences
heightened – TradingFloor
Neil Staines: As the
BIS highlights its concerns over global central bank policy and the need for
governments to pick up structural reforms, it is worth reviewing the global
macroeconomic backdrop.
BIS fears fresh bank crisis from the global
bond spike – The
Telegraph
I'm a central banker, get me out of here
The intellectual bankruptcy of the austerians – mainly
macro
It is both amusing and
tragic to watch the advocates of fiscal austerity try and deal with the fact
that the thin intellectual foundations for their approach have crumbled away,
while at the same time the empirical evidence of their folly accumulates.
(for more on BIS, see
my morning
post)
OTHER
Just when you thought it was safe to get back
in the water… - MacroScope
/ Reuters
A worrying weekend for
the euro zone.
Stopping Bank Crises Before They Start – WSJ
John Cochrane: Regulating
the riskiness of bank assets is a dead end. Instead, fix the run-prone nature
of bank liabilities.
Fed and ECB timetable and agenda differences
heightened – TradingFloor
Neil Staines: As the
BIS highlights its concerns over global central bank policy and the need for
governments to pick up structural reforms, it is worth reviewing the global
macroeconomic backdrop.
Financial Forecast
Update June 2013 – Nordea
(pdf)
We have made minor changes to the US rates and the
commodities forecasts, and we summarize last week's FX forecast changes
(summary here).
The BRICS nations - Brazil, Russia, India, China and South Africa - were once a great
beacon of hope for the world economy. On Business Daily today we ask whether
BRICS will ever get back to the fast growth they once enjoyed? And Lucy
Kellaway of the Financial Times on why you should judge a book by its cover,
why looks do matter in the workplace.