Death Star Economics



UK trade deficit spikes, Libor to be reinvented

Adding on to yesterday’s data stream, Chinese export growth slowed significantly from 11.3% YOY in June to 1% YOY in July. Mental… As usual, sluggish growth in Asia is outpacing the old world by a mile or twelve. British exports fell as well, bringing the trade deficit to a 15-year highread article

Maybe that’s an explanation for why Nomura is just not letting go of this whole UK-leaving-the-EU scenario… read article

Meanwhile, the FSA is busy reinventing the wheel or at least Libor. In a statement released today, the regulatory authority said the calculation of a number of benchmark rates, including but not limited to the London Interbank Offered Rate, was going to be changed. read article

The UN has resumed a role in the US presidential elections, demanding that state-backed ethanol production is suspended in the eye of the looming food crisis. Apart from the dramatic news, the US has seen a decline in weekly jobless claims yesterday, which is a reason to dance and be merry; as is the shrinking state deficit.

As usual, it’s not actually looking just a good…

The big caveat, of course, is persistent, long-term problems remain unsolved. Europe is far from fixed, the state of the U.S. economy remains shaky and corporate profits aren’t looking as hot as they used to. And a 1.7% yield on the 10-year note is still really low by historic standards. (MarketBeat)

Barclays is currently engaging in a PR-exercise par excellence, naming governance expert Sir David Walker, who is notoriously sceptical of salaries in the City as its new chairman. The good sir is 72 (old boys network, anyone?), so if this was Greece, he’d be in the hospital with an eye problem tomorrow, leaving the bank ridiculed in square one. Thank god this country known for its efficiency. Oh no wait… read article

Weekend reading
– A to do list for the Greek governmentread article
– Why you don’t want low yields, according to Ken Rogoff, read article
– Some scary New York quant funread article
Have a good one.

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

2 Responses

  1. princess1960 says:

    hello with bad news and very good information /K Rogoff are right Libor will fix ..UK mistake extra spend for JUBILE Q but i think is strong .country ..and if UK go out from EU than FOR 1000% EU will not survive. UN for me have to much workers with out resultate. GR no comment ..Barclays IS old bank is very strong .
    now others reading in sabatto -domenica.
    have good weekend

  2. […] German 10-year bond yields are rising to 1.73% and 1.47% respectively. That is, if you believe Ken Rogoff’s analysis in last Friday’s News Brief, a good […]

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