EU economy

Part of the Someone is wrong on the internet series

Turkey contagion fears are overblown [Update]

Only Spain has some exposure to Turkish assets

The monetary aftermath of Italy's chaotic month

Target2 liabilities skyrocket as cash shifts to the Eurosystem.

Guest post

Risk segregation and market fragility in the eurozone

In this guest post, Marcello Minenna discusses Italian markets and risk segregation in the eurozone.

Algebris has launched an 'end of the world fund'

Alberto Gallo will manage the new vehicle, as tail risk insurance makes a comeback

Markets Live

Germany is fine, thanks for asking

After a slow Q1, all is well in the German world again.

Part of the Someone is wrong on the internet series

Lies, damn lies, and charticles

The IMK is bearish on Germany, and the Telegraph is enthralled.

Alphachat

Benn Steil explains the Marshall Plan

In this week’s episode, Matt talks with the author of a new history of the politics and economics of America’s early involvement in Europe after the end of WWII.

Alphachat

Marcel Fratzscher on the dark side of the German economy — now with transcript!!

Inequality, poverty, infrastructure investment, and more.

Guest post

Understanding the differences between German and Italian investment spending

The following guest post on trends in public investment spending is from Marcello Minenna, the head of Quantitative Analysis and Financial Innovation at Consob, the Italian securities regulator. The views expressed here are his personal opinions and do not necessarily reflect the views of Consob.

Alphachat

Marcel Fratzscher explores the dark side of the German economy

There’s more the story than low unemployment and a strong welfare state.

The euro area’s fiscal position makes no sense

It’s way too tight. Federalism is the answer.

Europeans should stop whining about their appreciating currency

The currency bloc has been relying on the largesse of foreigners to compensate for stinginess at home.

Why do futures markets imply a Depression-level collapse in European dividends?

Bassman-dividend-term-structure-end-2017-featured

Because there is an arbitrage opportunity.

Just how much money did the ECB lose on its Steinhoff investment?

They may have been investment-grade, but Steinhoff’s bonds have been a bad deal for the ECB.

Guest post

Getting to Eurobonds by reforming the ESM

In this guest post, Marcello Minenna, the head of Quantitative Analysis and Financial Innovation at Consob, the Italian securities regulator, argues that reforms to the European Stability Mechanism can pave the way for Eurobonds. The views expressed here are his personal opinions and do not necessarily reflect the views of Consob.

European leaders seem determined to remake the “global savings glut” on a massive scale

Turns out that mishandling a banking crisis and then systematically annihilating the supply of local currency safe assets leads to sustained capital outflows.

Greece’s membership of the euro is still tenuous

A bare majority want to remain on the single currency — and most of those do so out of fear rather than love.

Charts of the day, policy divergence edition

No pats on any backs.

Alphachat

Petra’s debt takes sparkle off record production

Petra’s debt takes sparkle off record production. FT Opening Quote, with commentary by Matthew Vincent, is your early Square Mile briefing. You can sign up for the full newsletter here.

Target2 balances reflect euro area’s potential to be better than traditional exchange rate peg regime

Think of it within the context of the balance of payments as foreign exchange reserves that can never be depleted.

Guest post

The ECB’s story on Target2 doesn’t add up

The following guest post on Target2 imbalances and capital flows is from Marcello Minenna, the head of Quantitative Analysis and Financial Innovation at Consob, the Italian securities regulator.

FT Opening Quote

Ashmore’s environmental gains

Ashmore’s environmental gains. FT Opening Quote, with commentary by Matthew Vincent, is your early Square Mile briefing. You can sign up for the full newsletter here.

FT Opening Quote

Redrow keeps the flag flying

Redrow keeps the flag flying. FT Opening Quote, with commentary by Matthew Vincent, is your early Square Mile briefing. You can sign up for the full newsletter here.

FT Opening Quote