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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

Berlusconi could be back in 2013

There won’t be a news brief tomorrow, Thursday, July 12, 2012.

Yesterday, Italy’s Mario Monti declared that he got enough and won’t run in the country’s next elections. Remember, Monti wasn’t elected to begin with, but appointed to office after the government collapsed in November 2011. So who could be the front runner for next year’s election… only one comes to mind: Berlusconi might just be back. read article

Meanwhile, Germany has its own stab at technocratic politics, with 172 economists writing a joint public letter to Merkel’s administration, criticizing the banking union. read article

Spain will introduce taxes and cuts to shrink the country’s deficit by €65bn within less than 1.5 years, said Prime Minister Mariano Rajoy. Measures will include a 3% hike in sales tax to 21%, cuts in pensions and tax deductibility and abandoning annual bonus schemes for public sector workers. Spanish government spending has historically followed the unemployment rate (as you’d expect), until shit got real in 2010… This is what austerity looks like in a graph. Spain will also see a public inquiry into the nationalization of Bankia due to the losses suffered by investors. Old news from Finland on that note, they want collateral for the European bailout. read article

A final word on Europe: the International Labor Organization said the eurozone could lose up to 4.5 million jobs until 2016 unless job creation policies become a focus of governments. 2012 is unlikely to see any sort of policies like that; there’s no money, or if there is, it’s going towards banks in the periphery. 2013 could be different. But if the past couple of years have taught us anything, we know that the mess might just continue and four years is not a long time.

In an attempt to make this week’s indicators of its poor economic performance disappear, China has declared to open its doors for foreign hedge funds to market their services to Chinese high-net individuals and families to fund oversees transactions. This is called the Qualified Domestic Limited Partner program and is part of China opening up as a capital market. Hedge fund managers might want to target these guys, as the FT is portraying Beijing’s rich families in today’s issueread article

The Libor drama gets deeper and dirtier… Yesterday, the New York Fed said it had knowledge of the rate-rigging that was going on in London. Intrigues everywhere.  read article

So long.

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One Response

  1. princess1960 says:

    hello and thank you
    CHine you know is in downroad..when one country have high lux 1%..chinese class so have crisis and problem social economic .
    Berlusconi is rich ..if he come again (what will happening with Markel ?
    M Monti i like him but is in difficult situation
    i am exsided with news(lol)
    nothing to give resolution
    Spain Bankia (not just) all the banks have problem with capital
    not result..why? not money..not invest not job in the end revolution..
    Libor ..ofcourse USA fix everything..(don’t you think)?allways ..
    so long and bad..

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