World economy



US credibility

U.S. Credibility to Europeans (After a Government Shutdown and a Spying Scandal)

MADRID | By Adrianna Rodriguez* | The past year has been rocky for the United States, to say the least: Edward Snowden released the most significant leak in recent history; German leaders now think twice about their after hours phone calls, and the US spent about $24 billion on a national tantrum. It’s simpler to say that the country has finally lost all credibility in European eyes, however, that’s not necessarily the case. How is it that Washington can go through all this nonsense and still appear on top?


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Consumer confidence has a short memory in the U.S.

LONDON | By London analysts | Since the end of the most recent recession, US consumer confidence has remained on an upward trend, despite several negative shocks from government policy. Given this track record, we expect the fall in confidence related to the federal shutdown to be short-lived.


Chinas Communist Party Meeting

How Will China’s Communist Party Meeting Play Out- According to JP Morgan

BEIJING | By Caixin Magazine | The third plenum of the Communist Party’s 18th Central Committee will start on November 9. Hopes are high that significant reform measures will be unveiled after the meeting. Here is what Zhu Haibin, chief China economist at investment bank JPMorgan, expects to see. He also explains why the success of the meeting will be determined by what comes next.


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ECB Cuts Key Rate to the Bone- Buckle Up!

THE CORNER TEAM | Put the champagne in the freezer. Against most expectations, the ECB lowered its main refinancing rate to 0.25 percent on Thursday in order to encourage the eurozone’s recovery. Mario Draghi took this measure responding to a slump in inflation that has sparked fears the economy could stall, years after financial crisis broke and years after most other central banks did the same thing.

 


gdp plus 1

GDP plus should be GDP less

SAO PAULO | By Marcus Nunes | For less bounce! The Philly Fed has called the measure of GDP obtained from “crushing” the usual measure of GDP (expenditure based) and the income-based measure GDI GDP plus


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Latin America to hit half of EU’s unemployment rate

MEXICO CITY | By David Brunat | Latin America is on its way to give a lesson to the European Union in terms of employment. By the end of the year the subcontinent is to hit a 6.2% jobless rate, a record low, according to a shared report issued by the Economic Comission for Latin America and the Caribben (ECLAC) and the International Labour Organization (ILO). The region has already reached a 6.6% rate in the third quarter, while in the EU Spain, Portugal and Greece are approaching a staggering 30%. Latin America’s jobless rate is even lower than that of the United States (7.3%).



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The Human Costs of the Crisis (OECD)

THE CORNER TEAM | The economic crisis has inflicted devastating damage on the population: there are 15 million more unemployed people in OECD countries than in 2007. Relative poverty is on the rise. Young people are increasingly dependent on their families. Life satisfaction and citizens confidence in the political system has plummeted, mostly in Greece, Italy and Spain. This is the OECD X-Ray of the challenges ahead.