SAO PAULO | By Marcus Nunes via Historinhas | That´s what Simon Wren-Lewis does in “Taylor Rules, the ZLB and Euro Diversity”: John Taylor originally suggested his rule as both a good guide to what central banks actually do and also one that “captures the spirit of the recent research”. It has been used ever since as a yardstick by which to measure monetary policy.
The Corner via Deutsche Bank Research | For a long time, technological progress in the world of media has surpassed the improved image display via screen diagonal or contrast by far. This is not only shown by the gadgets which the TV viewer may use for his or her personal analysis of the games of the FIFA Football World Cup. This opens completely new opportunities and business models for the large field of visual media.
BEIJING | Via Caixin | As China gets richer, many of its people are becoming overweight, and businesses aimed at helping people improve poor lifestyles will prosper.
LONDON | By The Corner | The final estimate of the Barclays global manufacturing confidence reveals another improvement in June, as they had initially expected, from -0.10 to 0.05, the highest level since December last year. As anticipated in the preliminary readings, the rise was driven by improvements in manufacturing activity in the US, Japan and China, where the trend in the forward-looking new orders component suggested it should last well into the second half of the year. At the same time, activity in the euro area showed further signs of momentum loss, with expansion weakening in all the big five except for Spain.
MADRID | By Jaime Santisteban | Monetary policy has “major limitations” and regulation should play the lead role in combating excessive financial risk-taking,” said Fed’s chairwoman Janet Yellen on Wednesday at an event sponsored by the IMF.
MADRID | By Ana Fuentes | Everyone is commenting on BNP Paribas historic settlement and the eventual fines that other EU banks might face (read our yesterday’s post), and the missed opportunity to really punish their illegal practices. And yet no financial savvy is talking about Iceland’s Reykjavík County Court handing out severe prison sentences to four bankers for market manipulation and breach of fiduciary duty. As London-based Icelandic reporter Sigrún Davíðsdóttir explains, “this case is not one of the big ones involving major investors or bank managers (…), but there are other similar cases snarling their way through courts.”
BEIJING | By Huo Kan and Wu Hongyuran via Caixin | Starting July 1 banks in China are using a new method of calculating the loan-to-deposit ratio, a change that the regulator and analysts say will allow for more loans to be extended. The China Banking Regulatory Commission (CBRC) announced on June 30 the new set of rules for figuring the ratio, which is capped by law at 75 percent, meaning that banks cannot lend out more than three-quarters of the deposits they accept.
SAN FRANCISCO | By Atul Singh via Fair Observer | With 61% of its population under 24, Africa’s greatest challenge is finding jobs for its youth. The continent needs to provide employment to 200 million people aged between 15-24. As per the World Bank, youth account for 60% of Africa’s unemployed. The African Economic Outlook records extensively how the young fare in labor markets. Lack of demand for labor, absence of meritocracy, and lack of proper training are the top three barriers to getting a job.
This article was originally published on Fair Observer.
MADRID | Bankinter Analysis | 3Q Perspectives. Economic cycle speeds up and, mostly, gains soundness and reliability. Global growth will consolidate in 2014/2015 by +3%/+4% with positive news for developed countries and less favorable surprises in emerging markets. Japan and India are the exception to this rule. Spain will also amaze and main economic risk will lie in regional regional integrity issues whose aftermath may be undervalued, regardless the final scenario.
MADRID | By Álex García.