World economy

Manufacturing punches US economy in the face

In what felt like an unexpected slap, US factory production shrank in November, the Institute for Supply Management’s factory index falling to 49.5 (50 marks the dividing line between expansion and contraction) from 51.7 in October instead of the expected 51.4. It’s the biggest contraction since July 2009, a clear sign of fiscal cliff angst.

The German economy is losing steam, and it’s a good thing

Trade data from the eurozone shows Germany posting a deficit while Italy and Spain generate surpluses, J.P. Morgan Asset Management on Monday briefed investors. As relative labour costs continue to fall, one of the key imbalances that provoked the eurozone crisis will fade away.

Is there a property bubble in China?

BARCELONA | CaixaBank | The exorbitant rise in house prices has not been uniform or widespread in China but has been concentrated in a few of the country’s large cities. Yet, it’s important not to lose sight of the risk entailed by a real estate boom.

Canada’s banking system: A poster boy?

Discretion advice: If you are an European businessman struggling to get credit, or a US home buyer looking for a reasonable interest rate mortgage, this may hurt your feelings: Canada’s banks are lending money.

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Extremists and the Fiscal Cliff

The extremists of the Tea Party have ruined the Republican Party and threaten now with bringing to a halt the Congress and the government. Economic indicators are already signalling danger.