Low interest rates contribute to weak labour markets
A new measure of Unemployment and Labour Market Conditions gains support at the Annual Jackson Hole Conference. Doubts continue about European QE as near-zero interest rates may actually be preventing employment from picking up.
BIS has doubts about monetary policy in the Euro area
Latest BIS Report says that present monetary policies risk permanently destabilizing the global economy. It calls for A New Policy Compass, focussing on the ‘Financial Cycle’, not the Business Cycle.
Banks remain fragile and imbalances (...)
Confidence in the ECB wobbles as commentators on all sides question the effectiveness of supposedly growth stimulating new policies.
Markets and Investment
At least two big takeover deals are being negotiated in Europe now, both with heavy government involvement. The strategies (...)
Three fundamental questions have emerged, but clear answers still have not:
Free floating for the hryvnia?
New bureaucrats in Brussels?
New rules for high-frequency trading?
Recovery has started, according to some data. Is it sustainable? Or is it based on asset prices inflated by easy monetary policies? Inside this newsletter:
* Bond markets and the real economy * Central Banking – The Illusion of Tapering * The Return of (...)
The quality of the recovery remains questionable. In the meanwhile, banks must deal with new regulation and investors look for higher yields.
European growth stutters along as fear of deflation exerts pressure on the ECB to loosen monetary policy further.
The statistics tell us that recession is over. Yet, while this has triggered tapering in the USA, it has also prompted a new of ECB promises to keep interest rates low. In the meantime, EU authorities do not seem how to deal with the world of banking, which is far weaker than meets the (...)
GDP in the EU area seems to be growing, but at a very slow pace. Although financial market remain sanguine, the real estate sector presents a mixed picture, with bad news coming from heavily indebted countries. While waiting for better news, the authorities are devoting their attention to the (...)
More taxation, more banking supervision, more bail-in than bail-out, more banking malpractice... This month newsletter summarizes the trends that are leading the banking world.
Something is rotten in the European Union! It looks like a hide and seek game, where countries and banks are playing a very dangerous game for the citizens’ future. Thus, between political instabilities, stealthy defaults, unhealthy and reckless banks and a real estate market that is (...)
In the two months since we last reported, the media has focussed on the rebound in the EU area, where in the second quarter GDP grew at an annualised rate of 1.1%. The atmosphere has been optimistic, so optimistic, that even the Aug 20 confirmation by Germany’s Finance Minister Schaueble that (...)
Welcome to the clubs! Why should they join?
The crisis is not over and doubts about the virtues of the EU and the euro abound. It may therefore seem surprising that not only are more countries seeking to join the EU, but also that some are joining the currency union. Croatia accedes on July 1 (...)