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Dow, S&P 500 Set Records
WSJ
U.S. stocks surged, with the Dow Jones Industrial Average hitting an intraday record high, spurred by the Bank of Japan's decision to unexpectedly expand its stimulus measures.
 
Japan's Shock and Awe
The Editors / Bloomberg Views
Bank of Japan Governor Haruhiko Kuroda's stunning bond-buying expansion won't fix Japan's ailing economy by itself, but it might help, and Kuroda is right to try.
Related: Japan risks Asian currency war with fresh QE blitz
Ambrose Evans-Pritchard / Telegraph
The Bank of Japan is mopping up the country's vast debt and driving down the yen in a radical experiment in modern global finance
Related: Japan Fires Another Shot in Global Currency War
Michael J. Casey / MoneyBeat
A currency war looms - not a 1930s-style scorched-earth conflict, but a damaging stealth war that will exacerbate the global economy's woes and distort domestic political agendas.
Related: Why Hasn't Inflation Picked Up in Japan?
Alexander Martin / WSJ Economics
Several factors are behind the trend. The main problem is that wage growth has fallen.
Related: Monetary Policy: What the Bank of Japan's Surprise Move Means for the Global Economy
Neil Irwin / NY Times
It offers a reminder, or perhaps a warning, of just how hard it will be to get the global economy out of its deflationary funk.
 
Brazil reveals its largest monthly deficit
FT
Real weakens on worse-than-expected fiscal performance
Related: Brazil deficit largest on record
FT
Real weakens on worse than expected fiscal performance
Related: Brazil's Fiscal Erosion Makes For Better Politics
Kenneth Rapoza / Forbes
A worse financial picture in Brazil means the government will have to forget its policies of the past.
Related: Major Policy Shifts in Next Rousseff Term Unlikely
Lise Alves / Rio Times
By Lise Alves, Senior Contributing Reporter SÃO PAULO, BRAZIL - President Dilma Rousseff's narrow victory in last Sunday's presidential elections has reduced the hopes of economic analysts that in the next four years the government will produce the economic policy reforms Brazil needs to restore investor confidence and resume economic ...
 
DealBook: Bank of England Sets New Capital Requirements for Lenders
Chad Bray / NY Times
The central bank is adopting new minimums for so-called leverage ratio as part of an effort to strengthen bank balance sheets, though the levels are lower than some had predicted.
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Related: George Osborne questions impact of regulations from Bank of England
Jill Treanor / Guardian
Chancellor calls for more work on effect on banks and building societies from imposition of 3% leverage ratio across sector George Osborne is calling on the Bank of England to consider the impact on lending to business and households as it toughens the regime to bolster the financial strength of ...
Related: Bank of England introduces tough rules on bank safety nets
James Titcomb / Telegraph
Leverage ratio means big banks will have to hold £1 for every £20 lent by 2019
Related: What Do Changes to the U.K. Leverage Ratio Mean? - The Short Answer
David Wighton / MoneyBeat
The Bank of England has published one of the most keenly-awaited pieces of the U.K. regulatory puzzle: guidance on the leverage ratio.
 
Russia Gets Serious About Inflation, But Investors Still Not Excited
Kenneth Rapoza / Forbes
Russia may have major structural problems that lead to inflation, but the only short term fix for now is higher interest rates.
Related: Russia takes emergency steps to defend ruble, tame inflation
Geoffrey Smith / Fortune Finance
Central bank raises key rate by 1.5% to stem the outflow of reserves. That may support the currency, but will choke an economy that's already stalling.
Related: Memo to the EU: stop gassing Ukraine
Guest Writer / Beyond BRICs
By Samuel Greene of King's College London Thursday's EU-brokered Ukraine-Russia gas deal restores energy flows to Ukraine, and thus also to Europe, that had been blocked by Moscow since June, ensuring that homes will be heated through the coming winter. However, beyond that obvious plus, it is a remarkably bad ...
 
Half a Century of Evidence to Fear the Fed
Mark Gilbert / Bloomberg Views
On one historical measure of how much slack there is in the economy, the Federal Reserve should already be reaching for its rate-rise button.
Related: Fed Watch: Another Kocherlakota Dissent
Mark Thoma / Economist's View
Tim Duy: Another Kocherlakota Dissent, by Tim Duy: Minneapolis Federal Reserve President Narayana Kocherlakota released a statement regarding his dissenting vote at this week's FOMC meeting. He does not share his colleagues faith that inflation will return to target anytime...
Related: Greenspan: Fed on 'a pile of tinder'
CNBC
The former Fed chairman said the central bank is sitting on "a pile of tinder," and made several other colorful observations.
Related: Fed Needs to Stop Asset Acquisitions for a Generation or So
Yves Smith / Naked Capitalism
Yves here. Readers will take issue with some of former Fed staffer and banking expert Walker Todd's comments on monetarism and Fed policy, but he nevertheless reaches the right general conclusions. The monetarist orientation of his post is a bit more understandable when you keep in mind that the central ...
 
Deflation Hit More Eurozone Products in October
Paul Hannon / WSJ Economics
The pickup in the eurozone's annual rate of inflation in October may ease some immediate pressure on the European Central Bank to provide more stimulus. But the rise in the headline rate to 0.4% from 0.3% doesn't tell the whole story.
Related: Getting Investment in Europe Right
Jean Pisani-Ferry / Project Syndicate
The European Commission's new president, Jean-Claude Juncker, has put public investment back on the agenda with his idea of a three-year €300 billion capital spending plan. But, behind the superficial consensus that more investment would help to strengthen a worryingly feeble European economy, many questions remain unanswered.
Related: Testing the Eurozone's Safety Net
Ashoka Mody / Project Syndicate
On October 14, the European Court of Justice convened to begin assessing the German Constitutional Court's ruling that the European Central Bank's "outright monetary transactions" scheme is illegal. This is a dangerous time for OMT - the eurozone's most potent crisis-management tool - to be called into question.
Related: Europe's Many Banking Problems
Dian Chu / EconMatters Global
By Stratfor Global Intelligence SummaryThe recent stress tests by the European Central Bank offered few surprises and did not cause any significant political or financial reactions in the Continent. However, these tests were only the beginning of a complex process to build a banking union in the European Union. Unlike ...
 
31Oct/Net Stable Funding Ratio finalised by the Basel Committee
BIS
Press release about the Basel Committee finalising the Net Stable Funding Ratio (31 October 2014)
Related: Basel Committee Finalizes Long-Term Liquidity Rule
Joe Adler / American Banker
The net stable funding ratio issued by global regulators is aimed at ensuring a bank has enough strong liquidity to back its particular lineup of assets.
 
China growth to slow to 5 percent over next year or so: London consultancy
Ross Finley / MacroScope
China's economic growth will slow sharply to 5 percent over the next year or so rather than close to 7 percent suggested by forecasts based on official statistics, according to a new indicator of...
Related: A Record Falls - Along with an Official - in China's Anti-graft Drive
WSJ China Real Time Report
China likes to do things in a big and record-setting way. Whether it is the height of its skyscrapers, the size of its foreign currency reserves or the heft of its economy - bigger is usually better. That seems to be true even in the ongoing drive to stamp out ...
 
An Economic Model for Asia
The Editorial Board / NY Times
With exports dropping, China and other Asian nations should stimulate domestic demand.
 
Hong Kong’s Occupy Generation
LIAN YI ZHENG / NY Times
A new force is coming of age: young, dedicated to democracy, with little affinity for the cultural identity of mainland China.
Related: Calls from business sector grow for Hong Kong's Occupy protests to end
South China Morning Post
With a highway and other roads still blocked, the five-week-old Occupy movement is harming the city's economic prospects, small and big businesses say.
 
Energy Journal: Oil Market Deafened by Saudi Silence
Alexis Flynn / MoneyBeat
Sometimes silence can be deafening. In a month where oil prices have plunged below $90 a barrel, perhaps the most glaring surprise of all has been the lack of a Saudi Arabian response.
Related: Wonkblog: Gas is about to fall below $3 a gallon for first time since 2010
Chico Harlan / Washington Post
By tomorrow, average U.S. gas prices will drop below $3 per gallon, a psychologically significant milestone that comes after a months-long fall in the price of crude oil. The price free-fall amounts to a stimulus for consumers, yielding tens of billions in savings just before the holiday season. U.S. gas ...
Related: Iran a 'time bomb' for oil prices
CNBC
If nuclear arms talks between Iran and world powers fail there could be "a significant political risk premium on the price of Brent."
 
Guest post: don't dismiss India's 'silent' reforms
Guest Writer / Beyond BRICs
By Samiran Chakraborty of Standard Chartered Bank Just a year ago, India faced a mini-run on the rupee. Now, an improving economy combined with political stability has made the country a darling of foreign investors, with more than $35bn of portfolio inflows since January. India's stock market and currency are ...
 
Q3 2014 GDP Details on Residential and Commercial Real Estate
Bill McBride / Calculated Risk
The BEA has released the underlying details for the Q3 advance GDP report today.Investment in single family structures is now back to being the top category for residential investment (see first graph). Home improvement was the top category for twenty one consecutive quarters following the housing bust ... but now ...
Related: The New York Times Mistake About Infrastructure Spending And GDP
Tim Worstall / Forbes
At least this is a mistake spotted in the New York Times in this instance although it's entirely common to see it elsewhere as well. The recent GDP figures showing 3.5% growth in the most recent quarter were indeed good, or "goodish" perhaps. And it's also entirely correct that they ...
 
China's shadow banking sector growing rapidly, third largest in world - FSB
Reuters
BEIJING, Oct 30 (Reuters) - China's shadow banking sector continued to grow at breakneck speed in 2013 and now ranks as the third largest in the world, a report released by the Financial Stability...
 
Wealth inequality in America: It's worse than you think
Christopher Matthews / Fortune Finance
A new study shows that the gap in the wealth that different American households have accumulated is more exreme than any at time since the Great Depression
Related: Wonkbook: Obama's tepid ratings show that voters do care about inequality
Max Ehrenfreund / Wonkblog
President Obama has spent the past few weeks reminding voters all over the country that the economy is on the mend. "By almost every economic measure, we are better off today than we were when I took office," he said last month, a tribute to President Reagan's famously effective campaign ...
 
Italian economic slowdown until end 2014, Istat says
Gazzetta Del Sud
(ANSA) Rome, October 31 - Italy's economic slowdown is expected to continue until at least the end of this year, the state-run statistics agency Istat said Friday. "The cyclical evolution of the economy will remain weak," Istat said in its monthly bulletin, "the composite predictive indic...
Related: Italy Sept jobless rate edges up to 12.6 percent from revised 12.5 percent in Aug
Reuters
(Reuters) - Italy's seasonally adjusted unemployment rate was 12.6 percent in September, just a notch above the revised 12.5 percent rate in August, remaining at a level last seen in the 1970s, data...
 
The U.S. recovery is frustrating - but it's the envy of the advanced world
Chico Harlan / Wonkblog
In the United States, the story of the economy is a good news, bad news affair. Jobs are coming back, but millions are reluctantly accepting part-time work. Investors are accumulating wealth, but income levels are hardly growing. But globally, the trajectory of America's economy is spurring a different reaction: envy. ...
 
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DealBook: Bank of England Sets New Capital Requirements for Lenders
NY Times
Dow, S&P 500 Set Records
WSJ
31Oct/Net Stable Funding Ratio finalised by the Basel Committee
BIS
Basel Committee Finalizes Long-Term Liquidity Rule
American Banker
Brazil reveals its largest monthly deficit
FT
Italian economic slowdown until end 2014, Istat says
Gazzetta Del Sud
Wealth inequality in America: It's worse than you think
Fortune Finance
Q3 2014 GDP Details on Residential and Commercial Real Estate
Calculated Risk
Guest post: don't dismiss India's 'silent' reforms
Beyond BRICs
China growth to slow to 5 percent over next year or so: London consultancy
MacroScope
What's this?
Link: Centre for Macroeconomics
Link: Economic and Social Research Council
 
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