James Alexander via Historinhas | You have to feel for ECB President Draghi sometimes. He’s trying to steer a huge and dysfunctional ship. His heart is in the right place, but he has far too much faith in the interest rate and credit channel “instruments” for the management of monetary policy. They have prevented further recessions and do seem to have the Euro area on the right track, but it is painfully slow and risky .
Household debt another reason to prefer SEK shorts In September we argued that the krona should weaken due to strong and persistent disinflationary pressures imported from abroad. Another factor that probably does not get the attention it deserves is the leverage of Swedis households. In the medium to long term, we think this will keep the krona under pressure. The Riksbank will have to tread carefully, even in a strong…
Alberto Forchielli via Caixin| The system in place in Europe after Napoleon’s downfall created a common purpose, something that is sorely lacking in today’s world
The market has already discounted that the ECB will announce new stimulus measures on December 3rd, modifying the current debt purchasing programme. But monetary policy only goes so far, and apart from the central bank’s measures, the Eurozone needs more public and private investment to recover its growth potential.
Barclays | Both ECB’s Vice President Constancio and Chief Economist Praet warned of a potential macroeconomic impact of Paris terrorist attacks last Friday although the noted that these types of events generally have a transitory effect on the economy.
Eurozone inflation for October has been revised slightly upwards. Underlying inflation has rebounded to 1.1% basically due to periphery countries’ prices.
Bruce Newsome | European security needs to change. France has the most at stake and the most influence in the EU. It needs to improve European border security first, before it blames national security.
Last Friday’s terrorist attacks in Paris will be the main driver of European and US stock markets this week. Bankinter analysts expect a downward trend, but it will not be “worrying.” In their opinion, the impact over the first two days could wipe around 2% off the European bourses, but they will soon stabilise.
Fernando Barciela | European leaders are upset these days about the possibility of the UK abandoning the EU. But in the end, they seem convinced that this will be avoided.
Jens Bastian via Macropolis | Portugal and Greece are geographically located at the opposite ends of the eurozone’s southern periphery. In the course of the past five years, both countries had to confront various political calamities and economic crises, culminating in having to seek financial assistance from international official creditors.