John Bruton | The best way to avoid stagnation induced by uncertainty would be for governments in developed countries to produce comprehensive, demographically-based scenarios for the economy over the next 30 years.Read More
Governments do not want to acknowledge that a Central Bank does not have the ability to bolster the economy. Monetarism has not worked. The massive purchase of corporate bonds by the Central Banks has not worked. They have been left alone to face the problem and they have failed. The solution is to activate demand and Central Banks cannot do this.
Mari Pinardo | Do you remember the summer of 2012, when Spain’s risk premium reached a record high of no less than 638 basis points? Four summers later, this spread seems like it belongs to a completely different country. Since that fateful summer, Spain’s sovereign risk has declined nearly 550 bp and just last week broke the 100 bp threshold. There are basically three reasons which have pushed the risk premium through the 100 bp threshold: a date for Spain’s caretaker Prime Minister Mariano Rajoy’s investiture, the economic policies which have been in place in the Eurozone since April 2015 and the fact that it looks less likely the Fed will raise interest rates in September.
José Luis M. Campuzano (Spanish Banking Association) | The most significant item in the minutes of the ECB Governing Council’s July meeting was the repeated reference to the banking sector. And particularly with regard to the massive beating banking stocks are receiving in the equity markets.Read More
Wang Yuqian via Caixin | It will be another four months before the much-anticipated Shenzhen Hong Kong stock connect system finally goes online and provides another bridge between the mainland and the offshore stock markets. The stock exchanges in Shenzen and Hong Kong jointly made an announcement yesterday, providing investors with some details of how the system is going to work.