Death Star Economics



Central bank center stage: waiting for Ben

Today is mostly about the Fed – again. Bernanke’s speech in Jackson Hole at 3pm London time, which party pooper Mario Draghi cancelled on, has been anticipated all week. Sort of. Because as the Fed failed to implement more QE over the summer, expectations went from high to low. In the end, we may very well save the enthusiasm for a rainy day, i.e. the Fed’s policy meeting on 12-13 September. read article

Over here, across the pond, we’re presented with stagflation. Great. Eurozone unemployment rose to a new record (since 1990, that is) of 11.3%, after Germany announced a fifth month of rising unemployment numbers yesterday, reaching 6.8%. Meanwhile, inflation increased from 2.4% to 2.6% in August, exceeding expectations of 2.5%. read article

The ECB is busy planning for the European banking union. Much discussed, much denounced, few things have been done to actual implement this policy construct. But that’s about to change. The proposal was agreed by Jose Manuel Barroso, president of the Commission, and everybody’s darling Michel Barnier, European Commissioner for Internal Market and Services, i.e. Europe’s [over-]regulator. Under the proposed bill, national central banks would be stripped off their responsibilities for national banks, whose fate, in turn, would lie in the hands of the ECB. This would concern approximately 6,000 banks in the eurozone. You can take a wild guess who won’t be fine with this – exactly, Germany. read article

Samsung strikes back: after Apple’s destructive court victory this week, a similar lawsuit has been rejected by a court in Japan. Galaxy II S for everyone!

Otherwise, Barclays named Antony Jenkins, former head of retail and corporate banking, its new CEO. Good ole Tony proclaimed that it was his priority to restore the banks reputation. Well, of course, that’s what got you the job! He will also revise ROE targets from 13-15% to around 11%.

Weekend reading

– The case for a German sovereign wealth fund despite the lack of oil money, read article

– Pretending it’s the good old days: Clinton, Blair and Cardoso met in Sao Pauloread article

– “Socially liberal, fiscally conservative” – a historic account of American fiscal attituderead article

Have a good one.

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One Response

  1. princess1960 says:

    Hello and thank you..because i am intristing about what you write..i will make comment with very free opinion for one by one.
    BEN BERNANKE is in difficult place and (i am sure )he will take accttion..(after election)
    ECB..can not do nothing if Merkel doesn’t give green light..
    GER is in crisis (deep )(i am not sure) but visite in CHINA mean she wanted help..
    UNemployment in EUROPE is up 13%(small logariazmo)
    number of tottal popolaritet EU
    number unemployment tottal how %IS?
    iNFLATION (i am not sure)the numbers is true..(artificial maybe)?
    REGULATION after election too.
    US is very highe temperature (election)
    BOTH get very rich after Presidential obligation (now with some acction organization for help) ..
    end..HAVE A NICE 1/ half..

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