Last Updated: 17:16 GMT     Sunday, 29 Mar. 2015 Archive About FAQ Careers Home
Banner: MacroDigest
   
    
Investment banks eye potential trading boost from ECB stimulus
Reuters
LONDON, March 29(Reuters) - Investment banks feeling the pinch from increased regulation since the financial crisis could reap an earnings reward from a boost in trading activity under the European...
Related: Eurozone can't survive in current form, says PIMCO
Szu Ping Chan / Telegraph
Single currency area must become a "United States of Europe" in order to secure its future, says manager of world's largest bond fund
 
UPDATE 2-Greek PM Tsipras says he seeks no rift with Europe
Reuters
ATHENS, March 28 (Reuters) - Greek Prime Minister Alexis Tsipras said on Saturday that he sought no rift with Europe after his cash-strapped country submitted a list of reforms to its lenders in a...
Related: The Rationality of Continued Austerity in Greece
CEPR
The NYT ran an a piece by Hugo Dixon that boldly proclaimed that if Alex Tsipras, the prime minister of Greece is rational, he will get tough with his left-wing supporters and impose more austerity measures. This is an interesting notion of rationality. Greece's economy has shrunk by more than ...
Related: How Greece pushed Europe's creditors to the edge
Mehreen Khan / Telegraph
After weeks of ugly threats and stalling tactics from both sides, Athens is approaching another crunch week in deciding its economic fate
Related: Fitch cuts Greece's credit rating
Taipei Times
Related: Greece aims to unlock bail-out cash with €3bn reform plan
Mehreen Khan / Telegraph
Anti-austerity government is proposing list of revenue raising measures including tax on alcohol and privatisation plans
 
Yellen says rates to rise at gradual pace
FT
Fed chair outlines detailed arguments for central bank's cautious approach
Related: How Will Janet Yellen's Speech Affect The U.S. Dollar Going Forward?
Seeking Alpha
Related: Yellen faces the "Iron Ladies" in the FOMC
Marcus Nunes / Historinhas
It seems Esther George (EG) and Loretta Mester (LM) are stand-ins for the departed Fisher and Plosser! Since they can´t play the role of "Inspector Clouseau", let´s call them "Maggies in Drag". EG: This balanced approach framework supports taking steps to remove the extraordinary amount of monetary accommodation currently in ...
Related: Talkin' and Yellen: Understanding the Fed
Marc to Market
As the stock market prepares to close later today, Yellen will deliver a speech on the new normal for monetary policy at a conference hosted by the San Francisco Federal Reserve, of which she was previously the President. The question on many lips today is whether she will be more ...
Related: Reality Check: The Next Boom Is Not Upon Us
Morningstar
Read full story for details.
Related: Stanley Fisher's Faulty Logic On Higher Fed Interest Rates
CEPR
The Washington Post missed the opportunity to correct Stanley Fisher, the vice-chair of the Federal Reserve Board, on his arguments for raising interest rates. An article on the prospect of Fed rate hikes later this year quoted Fisher on the desirability of raising rates so that the Fed would have ...
 
China Central Bank Governor Warns of Deflation Risk
Reuters / NY Times
Zhou Xiaochuan says China must keep a close eye on slowing inflation amid structural reforms.
Related: Time to unpeg the renminbi
Guonan Ma / East Asia Forum
Author: Guonan Ma, Bruegel The Chinese economy is simply too big to remain tied to the once useful monetary anchor of the renminbi-US dollar peg. It is time to let it go. The Chinese renminbi depreciated 2.5 per cent against the US dollar in 2014. It was the largest annual ...
Related: Beijing says Denmark applies to join China-backed AIIB investment bank
Business Insider
BEIJING (Reuters) - Denmark has applied to join the Beijing-led Asian Infrastructure Bank (AIIB), China's Ministry of Finance said on Sunday, becoming the latest European power to join the institution despite misgivings in the United States. The Ministry of Finance said that Denmark has written to China to "announce its ...
Related: Frenzied speculative activity in China's equity markets
Sober Look
It's time to take another look at the recent developments in China's equity markets as major indices hover near the highs we haven't seen since 2008.Source: Investing.comWith property markets in trouble, China's speculative investors are turning to equities. Moreover, increasing numbers of new investors are entering the markets. Last week ...
Related: China to cut interest rates by 0.25%: central bank
The China Post
(ChinaPost.com.tw) - China's central bank on Saturday announced that it will cut the benchmark deposit and loan interest rates by 25 basis points, as authorities seek to prop up flagging growth in the world's second-largest economy.
Related: It's time for the world to adjust to China's global ambition
Liam Halligan / Telegraph
It may have become fashionable to talk down China's prospects, but the pace of its expansion remains astonishing
Related: China's Credit Overdose
Zhang Jun / Project Syndicate
Despite rapid credit expansion in the last two years, China's GDP growth has decelerated sharply. This disparity reflects the accumulation of massive debts, which require an ever-increasing amount of liquidity to service.
 
Russia to join China-backed development bank: official
The China Post
(ChinaPost.com.tw) - Russia is to sign up to the Chinese-led development bank AIIB, first deputy prime minister Igor Shuvalov said Saturday at an international forum in China, cited by Russian news agencies.
Related: Russia's oligarchs head for London as rouble collapses
Peter Spence / Telegraph
Some of Russia's wealthiest individuals are looking to leave the country for London and Switzerland as the economy faces a sharp recession
Related: Why Sanctions on Russia Don't Work
Andrei Kolesnikov / Project Syndicate
The Western approach to Russia assumes that continued pressure on the country will cause President Vladimir Putin's regime to make concessions or even crumble. But, as recent opinion polls suggest, such an approach is less likely to undermine the regime than to cause Russians to close ranks in Putin's defense.
Related: Putin's Economic Team Plays Houdini
Leonid Bershidsky / Bloomberg Views
Russia's international reserves are no longer shrinking: It's time to admit the Russian economy won't fall apart anytime soon.
 
Saudi Arabia's influence on oil price volatility to decline
Times of India
With Saudi Arabia moving beyond its long-held role as a simple exporter of crude oil and reshaping itself as a supplier of refined petroleum products, the kingdom will be less able to influence prices and balance global oil markets, a study says.
Related: Deflation Due to Lower Commodity Prices Is Not a Problem (Except to Commodity Producers)
CEPR
For some reason economics reporters and economists seem to have a really hard time understanding deflation. There are two lessons for today. First, we get the standard lesson: crossing zero means nothing, the problem is too low a rate of inflation. As I've written a few thousand, inflation is an ...
Related: Arctic braced for oil rush as Shell eyes return to Alaska
Andrew Critchlow / Telegraph
Oil majors are preparing to push into the world's final frontier in search of energy riches
 
London faces steep rise in business rates
FT
Businesses outside the capital set to gain in revenue neutral revaluation
Expand sublinks   Also:  BBC | House Price Crash | CNBC | Macleans
Related: Pound losing its lustre as storm clouds gather over Britain
South China Morning Post
Pound loses lustre as storm clouds gather over Britain
Related: Osborne's tax grab threatens Britain's regional banking revival, lenders warn
James Titcomb / Telegraph
New figures from the BBA show fast growth in banking jobs in Britain's regional hubs
Related: Britain by Itself
Chris Patten / Project Syndicate
It is unfortunate that some of the most important issues facing the UK are being ignored in the country's current election campaign. British politicians may not be speaking much about international affairs, but the next government will have to deal with Russian aggression, European security, and a possible vote on ...
Related: Cooling U.K. Property Could Shape BOE Policy
Alen Mattich / MoneyBeat
Are British property prices at long last reaching a valuation ceiling? If so, this could be a significant factor in how the Bank of England steers monetary policy.
 
Has Japan's 'Big Bazooka' Misfired?
WSJ
Japan is drifting back toward deflation, underscoring the continuing difficulties in pulling the world's third-largest economy out of its long slump.
Related: A subculture of entrepreneurship hatches in Japan
Julie Makinen / Money & Company
For years, Japan has been searching for a way to get its economic mojo back, and increasingly it's looking to people like 17-year-old high school dropout Yoichiro Mikami as the answer.
 
Secular Stagnation for Free
Ricardo Hausmann / Project Syndicate
For some reason, achieving a level of investment that would generate full employment seems to require negative real interest rates, which is another way of saying that people have to be paid to invest. In fact, to harness the possibilities of new technology, we may need non-market forms of payment ...
Related: Hiding behind "Secular Stagnation"
Marcus Nunes / Historinhas
Scott Sumner comments on a post by Edward Hugh: The focus of Hugh's piece is Finland. He points to the very weak recovery, and suggests that structural factors are involved. Perhaps so, but some of the data he cites point in exactly the opposite direction. Finnish unemployment has been rising, ...
 
The strong dollar, its impact on growth, and the TPP
Jared Bernstein
When it comes to the debate over whether the Trans Pacific Partnership trade agreement should include rules against managing currency, the recent, sharp rise in the value of the dollar offers a little something for everyone. For TPP supporters who oppose a currency chapter-i.e., explicit actions to be taken against ...
Related: Joe Firestone: The New York Times Soft-Pedals the Dangers of the TPP
Yves Smith / Naked Capitalism
While the New York Times did a public service by joining Wikileaks in publishing a draft chapter of the TPP, the accompanying article is quite another matter. Joe Firestone has taken it upon himself toshred analyze it. The sad reality is that the Times is never going to oppose neoliberalism ...
 
Lee Kuan Yew, the Man Who Remade Asia
WSJ
He preached "Asian values" and turned a tiny, poor city-state into an astonishing economic success. Is Lee's "Singapore model" the future of Asia?
Related: How Singapore Became One Of The Richest Places On Earth
Jim Zarroli / NPR
The founder of modern Singapore, Lee Kuan Yew, used both free-market principles and strong central planning to transform the tiny former British colony into an economic powerhouse.
Related: Can Singapore Thrive After Lee Kuan Yew?
Joel Kotkin / New Geography
On Sunday, Singapore cremates its greatest leader, the late Lee Kuan Yew, architect of its good fortunes. Yet the flames also could extinguish the era of relentless social and economic progress that Lee ushered in during his long, amazingly productive life. World leaders, corporate hegemons, and much of the foreign ...
 
Showdown looms over Ukraine's debt
FT
Negotiations could turn on whether Russia's $3bn bond is classified as 'official' sector debt
Related: What's $3 Billion Between Enemies? Ukraine and Russia Battle Over Debt Terminology
Ian Talley / WSJ Economics
A dispute between Russia and Ukraine about how to label Kiev's debt underscores the challenges still facing the embattled nation.
 
RBI proposes to reduce bank's exposure in corporate houses
Times of India
With an aim to reduce risk in the banking sector, RBI has proposed to limit exposure of a bank to a business group to 25 per cent of its capital, down from the existing level of 55 per cent.
Related: India to become 3rd largest auto manufacturer by 2020: Ford
Times of India
India's automotive industry is expected to reach 7 million vehicles milestone by 2020, making the country the third-largest auto manufacturer in the world, behind the US and China, a top official at Ford Motor has said.
Related: Credit Growth In India Yet To See Pick Up, Bank Earnings To Be Under Pressure In 1H 2015
Seeking Alpha
Related: Three-nation visit to focus on economic agenda, job creation: Modi
Times of India
Prime Minister Narendra Modi said his tour to France, Germany and Canada from April 10-16 would be focused on supporting India's national economic agenda through programmes like Make in India in order to create jobs for the youth.
 
Australia latest to support China-led bank
FT
Canberra latest to participate in the AIIB as a prospective founding member
Related: In Australia, More Rate Cuts Become a Matter of When, Not If
James Glynn / WSJ Economics
Debate within Australia's central bank is no longer whether interest-rate cuts are needed, but how many more would be required to revive the stalling economy.
 
Mortgaging the Future?
Guest Author / The Big Picture
by Òscar Jord , Moritz Schularick, and Alan M. Taylor In the six decades following World War II, bank lending measured as a ratio to GDP has quadrupled in advanced economies. To a great extent, this unprecedented expansion of credit was driven by a dramatic growth in mortgage loans. Lending ...
 
Follow MacroDigest on Twitter  Like Us on Facebook
New
London faces steep rise in business rates
FT
China Central Bank Governor Warns of Deflation Risk
NY Times
Investment banks eye potential trading boost from ECB stimulus
Reuters
Australia latest to support China-led bank
FT
RBI proposes to reduce bank's exposure in corporate houses
Times of India
China to cut interest rates by 0.25%: central bank
The China Post
Saudi Arabia's influence on oil price volatility to decline
Times of India
Russia to join China-backed development bank: official
The China Post
Eurozone can't survive in current form, says PIMCO
Telegraph
UPDATE 2-Greek PM Tsipras says he seeks no rift with Europe
Reuters
What's this?
Link: Centre for Macroeconomics
Link: Economic and Social Research Council
 
Last Updated: 17:16 GMT     Sunday, 29 Mar. 2015 Archive About FAQ Home