The Day Today 8 September 2014

Sterling down ~1% vs the dollar, EUR/GBP 1mth vol now 9.0 mid:
* ‘Plans to devolve more powers to Scotland if it stays in the UK will be unveiled within days after a shock poll put the Yes camp in the lead for the first time in advance of the referendum on independence on September 18. George Osborne said that the final touches were being put to proposals for “much greater” fiscal autonomy and tax-raising abilities that would give Scots “the best of both worlds”.’ http://thetim.es/1nFbEKh
* More on the poll here, which excludes the Don’t Knows http://reut.rs/Ze8mbb

* Volkswagen AG will halt production at its plant in Kaluga, Russia, for 10 days because of economic weakness in the country http://thetim.es/1nFbEKh

* Spiegel estimates ECB stimulus may total EUR 800bn {fifw NSN NBJ3YB6S9729 <go>}
* The Bundesbank’s Lautenschlager did NOT dissent on ECB plan, unlike Weidmann: “The low interest rates are justified”…”We do not decide monetary policy for Germany alone”. She goes on in Fed-dual-mandate-esque fashion: “if the economic environment is ultimately so weak that economic growth cannot be generated, then the ECB has to think: How can I ensure that economic growth is generated, that inflation is rising…How can I ensure that jobs are safe and remain secure, or that new jobs can be created?” http://on.mktw.net/1tDXikp

* Looks like the Fed will change their guidance in the September meeting:
– Rosengren:  “As we approach levels of unemployment that many consider ’full employment,’ the Fed should no longer issue guidance on the approximate timing of any monetary policy changes” {fifw NSN NBG3Q36TTDS3 <go>}
– Federal Reserve to debate new language on interest rates: FT quotes Mester and Powell who are both on the new Fed Communications Policy Subcommittee
– Mester: “I believe it is…time for the Committee to reformulate its forward guidance,”
– Powell: “Significant parts of the FOMC statement need to change,”
http://on.ft.com/1qvc8rd

* Rajan warns monetary stimulus may hurt global growth by pushing emerging markets to pile up foreign-exchange reserves instead of spending http://bit.ly/1lQmt0M

* U.S. air strikes target insurgents near Iraq’s Haditha Dam http://reut.rs/Yp0aF3

* Italy is pushing for new rules to monitor economic reforms across the eurozone, in an attempt to reassure other European countries of its commitment [to reforms] http://on.ft.com/1rZk8kk

* WSJ: The Fed Is Looking Like a Sovereign Wealth Fund http://on.wsj.com/1wdJGKQ

* Japan Investors Buy Most U.K. and Aussie Debt Since 2011, Sell Bunds http://bloom.bg/1udEmI0

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