International day for the eradication of poverty?
MADRID | By Alex García and @elbaronrojo
World economy
Modest payrolls, patient Fed
LONDON | By Barclays analysts | We now expect Fed to taper in March 2014. The September payroll report was on the soft side, with nonfarm payrolls rising 148k and private payrolls rising only 126k. These numbers were below our (200k) and consensus (180k) expectations for headline payroll growth. In light of the moderate tone of the September employment report, we have pushed out our expectation for the first Fed tapering in the pace of asset purchases to March 2014 from December 2013.
Alan Greenspan: Idolized one day, demonized the next
SAO PAULO | By Marcus Nunes | It is a common occurrence with sports idols and some teen idols to be demonized in the next stage of their lives. But among Fed Chairmen, Alan Greenspan surely gets the ‘honor’ of being the first.
U.S. Jobs Report Gloomier Than Expected
NEW YORK | By Ana Fuentes | We’ll probably need to wait until November to see any obvious effects of the U.S. government shutdown in the employment data. The last jobs report released on Tuesday show 11.3 million workers who wanted a job and were looking couldn’t find one in September. Payroll employment increased (+148,000), but unemployment rate changed by very little (7.2%).
Is the Stock Market Predictable?
SHANGHAI | By Hong Hao via Caixin | A great amount of research shows bourse trends can be foreseen, even if those for individual stocks cannot. Is the stock market predictable? It has been a haunting question. As early as 1900, in his doctorate dissertation titled The Theory of Speculation, Louis Bachelier laid out in some 70 pages why predicting stock prices would be futile.
Is Krugman Right About the U.S. in a Liquidity Trap?
MADRID | By Luis Arroyo | It is possible, as we have seen over the past few years, that no matter how much the Central Banks increase their money emissions, it won’t change people’s preference for liquidity. It isn’t clear that an increase in banking credit will swell investment either, especially if investors own a higher than normal debt stock and if they don’t see a clear future profitability. The same applies to families.
Dysfunctionality in both sides of the Atlantic
MADRID | By JP Marin Arrese | In the aftermath of the last minute deal brokered in Congress to avoid a devastating US default, Obama warned against turning disagreement into highly disruptive “dysfunctionality”. A rather mild way to portray the utter economic wreckage any further delay in solving the debt ceiling deadlock would have prompted. Faced with a similar challenge in a couple of months, he chose to play down the reckless Republican attitude in the House, praising instead the bipartisan efforts to prevent the worst from happening.
Weekend Read: How Sugar Man Moved Spain
MADRID | By Javier Arce | “Searching for a sugar man”, the incredible life of Sixto Rodríguez masterfully told by Malik Bendjellou, is leaving the Spanish billboard after 34 weeks. So unexpected as undeniable success: the film is, after “Bowling for Columbine”, the most seen documentary in the history of Spanish theaters.
From Science to Arts, an Inevitable Decision?
By Roberto Benavent at BBVA OPENMIND | Russian writers Anton Chejov and Fyodor Dostoyevsky or Spanish Pio Baroja are only among the distinguished authors that studied engineering or medicine before devoting themselves to the arts. Is it merely a coincidence? And why is it so unusual to find examples where it has happened the other way round?
U.S. creditworthiness at stake
MADRID | By J.P. Marín Arrese | US Congress brokered a last-minute deal to prevent sovereign default and shutdown. Yet a deep damage has been inflicted on the country’s image. Holding Medicare as a hostage happened to be a bad movement that backfired on hard-line Republicans. Unable to implement their doomsday bet, they’ve been confronted to a great amount of public pressure.