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ECB holds rates, focuses on new asset-buying plans
CNBC
NAPLES, Italy, Oct 2- The European Central Bank left interest rates unchanged on Thursday, holding them at record lows while it rolls out a batch of measures it hopes will see off the spectre of deflation and revive the euro zone economy. The decision to leave rates on hold was ...
Related: More than the ECB
Marc to Market
The ECB meeting and details about the asset purchase plan is the key event of the day. However, there is something else happening. A string of disappointing US data and the sell-off in equities have sparked a bond market rally that again has caught many participants wrong-footed. The US 10-year ...
Related: Only a weak euro can save the ECB now
FT
Data point to a slowdown which now affects the core of the monetary union, writes Lorenzo Bini Smaghi
Related: Live blog: Detail eyed on ECB decision day
CNBC
ECB President Mario Draghi's comments will be eyed for detail on the central bank's plans to buy up asset-backed securities, and hints of QE.
Related: Euro zone factory prices slip again in August
Reuters
BRUSSELS (Reuters) - Euro zone factory prices fell slightly less than expected in August as the cost of heavy machinery rose, but still underscored the need for governments and the ECB to do more to...
Related: Q&A: The ECB's asset-buying plan
Claire Jones / FT The World
The European Central Bank will today flesh out details of its plan to buy bundles of loans sliced and diced and repackaged into products known as asset-backed securities, alongside covered bonds. With growth stuttering and inflation falling to a five-year low, some fuel for the eurozone's recovery is much needed. ...
 
Hong Kong, Asian Economies to Weather Protests: ADB Economist
Mitsuru Obe / WSJ Economics
Street demonstrations under way in Hong Kong are unlikely to affect its economy, or the economy of the wider region, says the new chief economist of the Asian Development Bank.
Related: China warns Hong Kong protesters as protest momentum falters
Geoffrey Smith / Fortune Finance
Foreign Minister tells U.S., world not to meddle in China's internal affairs.
Related: Hong Kong protestors consider escalation
Dow Jones newswires / Business Spectator
Seventh day of rallies shows little sign of compromise between protesters, Beijing.
Related: Hong Kong Protests Threaten Tourism
WSJ
Pro-democracy demonstrations that have gripped Hong Kong could put a brake on some of the crucial, weeklong tourist splurge that China's National Day usually brings to the city.
Related: Report: Hong Kong Becoming 'Mere Second-Tier' Chinese City
Rachel Lu / Foreign Policy
The financial center's specialness is in ever-greater danger.
Related: Who Is C.Y. Leung, Hong Kong Chief Executive?
WSJ China Real Time Report
The man caught in the difficult position between pro-democracy demonstrators in Hong Kong and the authoritarian rulers in Beijing is an awkward politician who never gained broad support from his constituents.
 
Bank of England asks for powers to intervene in housing market
Jill Treanor / Guardian
Central bank wants restrictions on loan-to-value and loan-to-income multiples to protect financial system from housing bubble The Bank of England wants powers to intervene in the mortgage market, allowing it to limit the value of loans to homeowners to prevent a housing bubble disrupting the financial system. Threadneedle Street is ...
Related: Bank of England calls for legal power to cap loan-to-value ratio on mortgages
Szu Ping Chan / Telegraph
Financial Policy Committee asks for direct powers so that future curbs on mortgage lending can be implemented more swiftly
Related: When will the UK pay its way in the world?
BBC
How long does the UK have to fix the huge hole in its current account, to start paying its way in the world?
 
Russia pledges not to control capital flows
Dow Jones newswires / Business Spectator
Government ministers, central bank officials say tight, conservative economic policy will continue.
Related: Putin: state will support sanctions-hit sectors
Associated Press
MOSCOW (AP) - Russian President Vladimir Putin says the state will offer support to sectors of the economy that have been hit by international sanctions, but says the country in general is unconcerned about the sanctions' consequences.
Related: Ukraine under assault on two fronts: Donetsk, and gas
Geoffrey Smith / Fortune Finance
New outburst of fighting adds to an increasingly dire economic situation for Kyiv.
Related: World Bank sees Ukraine economy shrinking 8 percent this year due to war
Reuters
KIEV (Reuters) - Ukraine's economy is likely to shrink by 8 percent this year and contract again next year because of the effect of the separatist war in the industrialized east, the World Bank said...
Related: Russia's economy is being hit hard by sanctions
Telegraph
Institute of International Finance Chief Economist Lubomir Mitov discusses the effect of western sanctions on Russia and what President Putin can do to revive the economy
Related: Russian leaders: Let's get our own economy in order
CNBC
Russia's relatively pro-market economic "liberal" faction may be gaining the upper hand in the struggle for control of the country's moribund economy.
Related: Russia debt freeze lesson for Hong Kong
FT
Markets do react to political risk, despite apparent indifference
 
Apple set to lose billions in EU state aid case
Kenneth Thomas / Angry Bear
The Financial Times reported on September 30th that the European Commission has decided to open a formal investigation into whether Apple received illegal subsidies ("state aid," in EU-speak) from Ireland going as far back as 1991. The FT quotes "people involved in the case" as saying that this can cost ...
Related: Economic Scene: Tax Tactics Threaten Public Funds
Eduardo Porter / NY Times
If global corporations can continue to evade taxation, the burden of government financing could fall disproportionately on ordinary workers.
 
Why the Fed Is So Wimpy
John Mauldin / The Big Picture
Why the Fed Is So Wimpy John Mauldin October 1, 2014     Another in what seems to be a small parade of scandals involving secretly recorded tapes of Federal Reserve regulators emerged last week. What a number of writers (including me) have written about regulatory capture over the past ...
Related: US dollar strong as lower deficit, Fed tapering buoys currency
South China Morning Post
The dollar looks set to stay strong as a shrinking US current account deficit combines with the ending of Federal Reserve asset purchases to make greenbacks scarcer and more expensive.
 
China likely to have annual growth of at least 7 percent for years: ADB
Reuters
TOKYO (Reuters) - China is likely to have annual growth of at least 7 percent over the next five years as it rebalances its economy to lift domestic demand, the Asian Development Bank's new chief...
Related: Chinese banks shun depositors as rules bite
CNBC
China's banks this week found themselves turning away would-be depositors as they scrambled to comply with new rules. The FT reports.
Related: China confronts limits of its power
CNBC
As protesters gather for a sixth day, their demand for the right to choose their leaders poses the biggest popular challenge to the ruling party.
 
Economists Lower Japan Growth Estimates
Mitsuru Obe / WSJ Economics
Some private economists are making down their growth estimates for a quarter that is set to shape the government's decision on whether to raise the national sales tax next year.
Related: Investor sentiment turns sour, yen inches higher
Malta Independent
The Japanese yen edged higher spurred by increasing demand for safe-haven assets as weak manufacturing activity data from around the globe soured appetite for risk.
Related: Japanese companies maintain forecast for sustained inflation
Japan Times
Japanese companies are forecasting sustained price gains over the next five years, signaling progress in reflating the economy, albeit below the central bank's target. Firms expect annual inflation of 1.5 percent in a year, unchanged from their projections three months ago, the Bank of Japan said on Thursday in Tokyo. ...
 
The permanent scars of fiscal consolidation
Antonio Fatas / Fatas and Mihov
The effect that fiscal consolidation has on GDP growth has probably generated more controversy than any other economic debate since the start of the 2008 crisis. How large are fiscal multipliers? Can fiscal contractions be expansionary?Last year, Oliver Blanchard and Daniel Leigh at the IMF produced a paper that claimed ...
 
Victim of shale revolution, Nigeria stops exporting oil to US
Javier Blas / Beyond BRICs
Nigeria has become the first country to completely stop selling oil to the US due to the impact of the shale revolution - an astounding reversal as the African nation was only four years ago one of the top-5 oil suppliers to America. According to the US Department of Energy, ...
Related: Brent crude sinks to $94 a barrel amid global oil glut
Denise Roland / Telegraph
North sea oil trading below $95 per barrel as the US dollar hitting a four-year high weighs on demand
Related: Weak demand in focus at Asia oil event
FT
Chatter on the Singapore party circuit centres around forecast cuts
 
The disappearance of routine jobs
Matias Cortes ... / VoxEU
As routine tasks are increasingly automated, middle-wage jobs are becoming rarer. This column documents the changes in labour-market dynamics behind polarisation, and investigates which workers are affected by it. Flows into middle-wage routine jobs are declining (rather than flows out increasing). Interestingly, routine cognitive workers - who tend to be ...
 
PIMCO: How to Lose (Lots of) Money and Still Influence People: The Honest Broker for the Week of October 10, 2014
Brad DeLong / Grasping Reality
**Joshua Brown:** "Do we need to fire PIMCO?": "In February of 2011, [Bill] Gross loudly proclaimed... >[that] Pimco Total Return had taken its allocation to US Treasury bonds down to zero. As recently as the previous December, Pimco Total Return had been carrying as much as 22 percent of its ...
Related: What did the Gross Exit Cost?
aiCIO
Moody's has put a price on the departure of PIMCO's "bond king" for parent company Allianz.
Related: A Bond Fund Expert May Be Gone, but His Strategy Lives On at Pimco
Landon Thomas Jr. / DealBook
Pimco is still using an investing strategy backed by its departed co-founder.
 
The depressing future of income inequality
ANDREW JACKSON / Globe and Mail
The inexorable advance of technology is setting the stage for a continual downward march in the income of just about everyone but the super rich
Related: Wealth Adviser: When It's the Kids Who Are Rich
Kevin Noblet / Jason Zweig
A morning briefing on coverage of special interest to wealth managers, financial planners and other advisers.
Related: A rider to Noah Smith's riposte to John Cochrane's diatribe on inequality
Tony Yates / longandvariable
This follows Noah Smith's recent Bloomberg view piece replying to John Cochrane. I won't restate all the good points John makes, which are recounted carefully in Noah's post. Instead I'll list some other counters. If you have read Noah's article, ... Continue reading →
Related: The middle class is poorer today than it was in 1989
Matt O'Brien / Wonkblog
The fundamentals of the economy are, well, okay. It's been slow and steady, but the recovery has chugged along enough to get us back to something close to normal. The economy has surpassed its pre-crisis peak, unemployment is at a six-year low, and stocks have more than tripled from their ...
Related: What's Wrong With Ignoring Inequality
Noah Smith / Bloomberg Views
Economic inequality may not be the world's biggest problem, but it isn;';t something we should ignore.
 
'Made in India'? Factories see slowest growth in 9 months
Mian Ridge / Beyond BRICs
Last week, India's prime minister Narendra Modi launched an ambitious push to kick-start India's relatively small manufacturing sector, lifting its share of India's GDP to 25 per cent from 15 per cent. This week, new data suggested how far off that goal may be. The HSBC India Manufacturing Purchasing Managers' ...
Related: Political reservations and women's entrepreneurship in India
Ejaz Ghani ... / VoxEU
Numerous countries have implemented seat reservations for women in politics over the past decades. Starting in the early 1990s, India's flagship decentralisation reform instituted one-third seat reservations for women in local governance bodies. This column suggests that this political empowerment increased women's economic empowerment through at least one channel, i.e. ...
 
Inflation Panic Will Kill the Recovery
Clive Crook / Bloomberg Views
Murky labor market statistics make the case against moving fast against inflation in the U.S. and the U.K.
 
EM currencies: letting them slide
Alan Beattie / Beyond BRICs
And so the fall in emerging market currencies continues. Over the past month, the third episode of taper tantrum has pushed exchange rates down almost across the board against the dollar, bringing with it the now familiar round of hand-wringing about the vulnerability of emerging economies. Once again, however, at ...
Related: Emerging Markets Are Submerging Again (excerpt)
Ed Yardeni
The strength in the Emerging Markets MSCI stock price index since early February has been somewhat surprising. That's mostly because the EM MSCI tends to be highly correlated with the CRB raw industrials spot price index, which has been weakening since it peaked this year on April 24. In recent ...
 
Argentina rebuffed over Falklands
BBC
Prime Minister David Cameron strongly rebuffs a call by Argentine President Cristina Fernandez de Kirchner for the UK to return the South Atlantic islands.
Expand sublinks   Also:  Reuters | FT | BBC | WSJ | FT | Reuters | Reuters
Related: Argentina's central bank governor resigns amid economic woe
AFP / Telegraph
Juan Carlos Fabrega's decision to quit after less than a year comes as annual inflation hits nearly 40pc, the value of the peso tumbles and Argentina defaults on its debt
Related: The Only Voice Of Reason In Argentina's Government Just Quit
Linette Lopez / Business Insider
Juan Carlos Fabrega, the head of Argentina's Central Bank, has quit according to several reports from the country. Fabrega was appointed by President Cristina Fernandez de Kirchner at the end of 2013, but since then the two have been at odds a bit. The last straw may have been a ...
Related: Argentina bonds fall as central bank chief resigns
Reuters
NEW YORK, Oct 1 (Reuters) - Argentina's bonds traded one to two points lower on Wednesday, initially falling on market chatter that the country's central bank governor had offered his resignation and...
 
France Produces a 'No Austerity' Budget, Defying E.U. Rules
Liz Alderman / NY Times
The plan defers bringing the budget deficit within a European threshold until 2017, as Paris said that a more rapid shift would harm the economy.
 
Spain posts best September job figures in last eight years
El País / EL PAÍS
But while number of people registered with Social Security rises, so do unemployment claims after end of high tourist season
Related: Spain sells 3.5 bln eur in bonds at record low yields
Reuters
MADRID, Oct 2 (Reuters) - Spain sold 3.5 billion euros (4.43 billion US dollars) of debt at a double auction on Thursday, hitting the top of its targeted range and at record low yields on the t wo...
Related: "I will not change course," says Catalan leader Artur Mas
Miquel Noguer / EL PAÍS
Regional premier responds to calls from Popular Party in parliament to abandon plans to hold vote on independence
 
Australia's RBA mulling more steps to curb housing investment lending
South China Morning Post
Australia's central bank said regulators were considering new steps to rein in lending for housing investment and an initial announcement was likely by the end of the year.
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ECB holds rates, focuses on new asset-buying plans
CNBC
Argentina rebuffed over Falklands
BBC
ECB President Mario Draghi's October Press Conference - Live
MoneyBeat
Russia pledges not to control capital flows
Business Spectator
ECB holds rates, focuses on new asset-buying plans
CNBC
Live blog: Detail eyed on ECB decision day
CNBC
Here Comes The Big ECB Decision...
Business Insider
Victim of shale revolution, Nigeria stops exporting oil to US
Beyond BRICs
Europe's bourses slip ahead of ECB
FT
Bank of England asks for powers to intervene in housing market
Guardian
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Last Updated: 04:13 GMT     Thursday, 2 Oct. 2014 Archive About FAQ Home