The French PMI fell by almost four points while Germany’s expanded. That’s bad news for the euro zone, whose core is in for trouble as an isolated German engine cannot pull its neighbours out of recession.
In the World
Two months before the US general elections, the Federal Reserve activates a package of expansionary monetary policy that will artificially inject life into the US economy. Carlos Díaz sees this is a vote for Obama.
Japan has lost exports steam. Its current account surplus has fallen from 20.7 trillion yen to 4.4 trillion yen in five years since 2007.
The recessions in the periphery of the euro zone are likely to affect GDP growth expectations for the entire monetary union, at least, during the rest of the year.
FRANKFURT | Public pensions will be cut down by 2 percent, leaving many retired workers with less than €600 a month. That is under the minimum wages deemed sufficient in the country. Shocked? Don’t be. Look behind the picture of a wealthy Germany.
Will inflation rise in the US? That is the expectation of investors. Is it due to the Federal Reserve’s monetary policy? You bet. But, economist Luis Arroyo concludes, eggs end up broken when making an omelette. Or when a central bank stimulates employment.
Economist Luis Arroyo tells his colleagues not to feel outraged because the Federal Reserve’s latest monetary policies make an expansionary impact on European markets, too. It is unavoidable.
WASHINGTON | A troublesome unknown-unknown: how unaware are US investors of their illiteracy in financial matters? Rumsfeld, Iraq and the capital markets have something very obscure in common, says Pablo Pardo.
LONDON | Law-abiding citizens are happy, the government boasts about it and fiscal fairness rule over the land. But what does a £500-million extra tax bill collected from the wealthiest since 2009 says about the UK?
Morning! There’s a lot of event risk this week. Among things investors will be looking up are the Federal Reserve’s meeting and German Constitutional Court ruling about the legality of the European Stability Mechanism. It’s not that the court will rule against the ESM, but it could attach conditions that would make it react slowlier. “Investors are likely to keep focusing on the ECB’s plan as a roadmap, which it’s…