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France and Italy's leaders stepped up their demands that the European Union offer a powerful financial response to the coronavirus, setting up a confrontation with Germany and other northern countries reminiscent of the sovereign debt crisis. Macron, on the other hand, was more flexible on the means, saying that financial firepower could be generated not just with an EU debt facility but also by expanding the EU's own budget. [Extracted from the article]

(Bloomberg) -- German Chancellor Angela Merkel's lawmakers moved to sideline hawks seeking to exclude Huawei Technologies Co. from next-generation wireless networks with a motion that stops short of a full ban of the Chinese equipment maker. Legislators in Merkel's Christian Democratic-led bloc on Tuesday backed a text with softer language than hardliners looking to ban Huawei outright from 5G networks had wanted. [Extracted from the article]

Chancellor Angela Merkel's lawmakers will try to sideline hawks seeking to exclude Huawei Technologies Co. from next-generation mobile networks with a motion that stops short of a full ban of the Chinese equipment maker. Nonetheless, the CDU-led bloc's parliamentary whip, Michael Grosse-Broemer, said Tuesday he expects a "clear majority" for the Huawei motion, saying the draft seeks to bridge a gap with the security hawks. [Extracted from the article]

Chancellor Angela Merkel's lawmakers will try to sideline hawks seeking to exclude Huawei Technologies Co. from next-generation mobile networks with a motion that stops short of a full ban of the Chinese equipment maker. Inside Merkel's chancellery, senior officials believe that a ban on Huawei would be futile, since the Chinese could potentially infiltrate another supplier if they were determined to hack into 5G communications. [Extracted from the article]

(Bloomberg) -- In the end, the prospect of eye-watering costs and delays to the roll-out of critical technology proved more daunting for the British government than American threats. Britain's reliance on just three suppliers, including Huawei, is "crazy", according to Ian Levy, technical director at Britain's National Cyber Security Centre. [Extracted from the article]

(Bloomberg Opinion) -- Four Big Risks to Watch 10 Years After Lehman: Sony Kapoor The last three recessions saw the U.S. Federal Reserve cut interest rates by 5 percent, while pre-Lehman European Central Bank and Bank of England maintained interest rates of 4 percent and 5 percent, respectively. In fact, it is quite possible that monetary policy, as we saw with the taper tantrum in 2013, may become the source of instability as QE is wound down and interest rates normalize. [Extracted from the article]

Stocks even shrug off surging euro as regional momentum builds While the five-day advance is set to be minimal, it follows the best week since April and comes despite both the rampant euro and the ECB's perceived hawkish turn, which may signal the end of the unprecedented stimulus that stoked asset prices. [Extracted from the article]

Mizuho sees 0.45% yield by year-end vs 0.85% median forecast While the median forecast for the German 10-year yield is 0.85 percent by year-end as the European Central Bank debates an end to bond buying, Mizuho International Plc predicts it will be little changed at 0.45 percent, lower than any other estimate surveyed by Bloomberg. In July, Mizuho reiterated a forecast that bund yields would be at 0.2 percent by the end of 2017, the lowest of any of the 34 analysts surveyed by Bloomberg at the time. [Extracted from the article]

German and Italian securities fell along with their core and peripheral peers in Thursday's selloff, with yields rising from lows seen after the ECB's Oct. 26 decision. The bond market is having "second thoughts after the "carry enthusiasm" following the ECB decision", said Arne Lohmann Rasmussen, head of fixed income research in Cophenhagen at Danske Bank A/S. "We have had four weeks with strong positive net cash flow and that is coming to an end now". [Extracted from the article]

(Bloomberg) -- ECB Stimulus Is Finally Reaching the Whole Euro Zone Back in 2013, when the region was reeling from recent debt crises, the European Central Bank's monetary policy wasn't being reflected in lending rates in the region's south. [Extracted from the article]

Prudent fiscal policy underscores investor confidence Haven status means own currency wouldn't help Finland: BMI. [Extracted from the article]

(Bloomberg) -- A Toxic Legacy Hangs Over Scotland's Brexit War With Theresa May If May doesn't relent it "will be the proof that the Tories have returned to the bad old days of Thatcher's Britain running roughshod over Scotland", he told the SNP conference in Aberdeen. If there's another independence vote -- whether according to Sturgeon's calendar or May's -- the opposing campaign can't be left to May's Conservatives, said Ian Murray, the only remaining Labour lawmaker for Scotland in the U.K. Parliament. [Extracted from the article]

The European Central Bank's latest policy decision is reinforcing calls for the euro to drop to parity against the dollar. The main driver of EUR/USD is short-end rates, so the ECB announcement is EUR/USD bearish, Royal Bank of Scotland Group Plc strategists, including London-based Paul Robson, wrote in a research note to clients. [Extracted from the article]

The European Central Bank's ability to prop up the region's lower-rated debt may be diminishing: Italy's 10-year bond yield climbed to the highest in two months on Monday, just days after officials said their stimulus policies are working. Italian government bonds fell, with the 10-year yield premium over benchmark German securities reaching the largest in two weeks, even as the ECB buys 80 billion euros ($90 billion) a month of the euro region's debt. [Extracted from the article]

Spain's recent economic performance has vindicated the tax cuts and labor market reforms of the government of Prime Minister Mariano Rajoy. Spain's best workers are leaving, undermining the euro and Spain's economic chances. [Extracted from the article]

Italian shares among region's best in 2015, German stocks fall Attribution Alex Longley: assist Inyoung Hwang: by reporter Cecile Vannucci: editor responsible Namitha Jagadeesh: editor Roxana Zega: by reporter Anne Swardson: editor. [Extracted from the article]

Similar-maturity Spanish bond yields dropped four basis points to 1.95 percent, while those on French debt fell two basis points to 1.03 percent. On the same day the spread, or the additional yield demanded by investors to hold 10-year Italian bonds over equivalent-maturity bunds, rose to 199 basis points, which was its widest since October 2014. [Extracted from the article]

Italian government bonds climbed for an 11th day in the longest run of gains in almost a year, as the European Central Bank's asset purchases drove prices in the calm following Greece's bailout accord. "At the moment, markets are not focused on the Greece risk so there is good demand for periphery bonds and core bonds", said Hendrik Lodde, a fixed-income strategist at Frankfurt-based DZ Bank. [Extracted from the article]

Germany's two-year debt underperformed its peers after the ECB said it wouldn't include securities with yields below its minus 0.2 percent deposit rate. Germany's two-year yield was little changed at minus 0.207 percent and the rate on the nation's 10-year bund, the euro area's benchmark government securities, rose five basis points to 0.40 percent. [Extracted from the article]