Death Star Economics



More bad data, more LIE-bor, more EU “solutions”

There’s nothing worse than having the new week continue in the exact same fashion as the last one… more bad economic data, more EU meetings and more Libor questioning, but here we go.

Chinese inflation sank to 2.2% in June – that’s a reduction of 0.8% since May and the lowest inflation has been in 29 months. That is bad news for Friday’s release of Q2 GDP data, which could show that China’s economy grew less than expected. read article

The Eurogroup is meeting in Brussels this afternoon and even a Greek representative will make it this time. The meeting itself is as likely to lead to the same well known EU-press-fluff as it always does. There might also be discussion of a pan-European banking surveillance authority for the 25 largest financial institutions, the urgency of which is clearly related to the Libor scandal (see below). Meanwhile, Spanish yields are steady above 7% and Italy has requested structural aid from the IMF to reform its tax policies.

An invisible financial wall, potentially as dangerous as the Iron Curtain that once divided eastern and western Europe, is slowly going up inside the euro area,

says Reuters. Thanks for the panic and the nice analogy. read article

Friday’s US job data was worse than expected, with 80,000 jobs added in the month of June, as opposed to 100,000 as expected by analysts. This is the fourth month in a row that the actual data comes in lower than forecasts. Also, earnings season is about to kick off, with expectations set comfortably low due to the obvious.

In the Libor scandal, Paul Tucker of the Bank of England will be facing questions by the Treasury select committee, much like Bob Diamond on Friday. In response to the manipulation scandal, Michel Barnier, EU commissioner for internal market and services, wants to criminalize said manipulations in the new market abuse regulation. One very brave (or delusional) FT reader sent a letter arguing in favor of the manipulation for the financial system’s sakeread letter

Airbus and Boeing are pressing their common suppliers to merge to strengthen the supply chain and secure meeting their 2012 production target forecast of 40% combined growth. That takes the concept of duopoly to a whole new level…

South Sudan is marking one year of existence today. Unfortunately, the whole independence thing is not going so well yet… read article

And finally, Nobel prize-winner Daniel Kahneman talks to the Guardian about “his pessimistic mother, the delusion of investment bankers and the need for irony.” read article

So long.

Filed under: news brief, , , , , , , , , , , , , , , , , , , ,

One Response

  1. princess1960 says:

    hello …i just to say you are right .
    sorry i did not read all because i feel a littel tierd ..but i have idea what happening …thank you
    i have learned to be alone around me have one batalion..even lap top i can stay to read …
    thank you for me really is soooo long

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: