China’s Property Bubble: Pick Your Poison
BEIJING | By Andy Xie via Caixin | Officials are showing little enthusiasm for dealing with the property bubble, and if they do not act, market forces will do it for them.
World economy
U.S. spying scandal: The real transatlantic confidence crisis
MILAN | By Alessandro Plateroti at Il Sole 24 Ore via Presseurop | Viewed from Europe, the NSA spying scandal is eroding US credibility and standing. But from the other side of the Atlantic, it is the EU’s continuing inability to solve the economic crisis that is worrying American decision-makers.
OPEN DEBATE: Nominal Stability- Christy Romer ‘strikes’ again
SAO PAULO | By Marcus Nunes | Friday evening Christina Romer gave the Sumerlin Lecture at Johns Hopkins University. The lecture was called “Monetary Policy in the Post-Crisis World: Lessons Learned and Strategies for the Future.” She touches on many bases, some suspect, like when she says “Financial stability is job number one of any central bank. Without that-nothing else matters”. Saying “Nominal stability” would have been closer to the thruth.
U.S. Spying on EU: Is White House Damage Control Version Credible?
NEW YORK | By Ana Fuentes | According to the White House, during the almost 5 years that the NSA was eavesdropping EU leaders, Obama had no clue. How can the leader of the most powerful economy in the world, who commands drone attacks and missions to the outer space, not know that their intelligence services are monitoring its European partners?
Inflation… Trapped!
SAO PAULO | By Marcus Nunes | One thing MMs have been saying for a long time is “stop talking about inflation”. But everyone else insists on doing so and now they are trapped.
Starbucks in China: Prices Are as Plain as Black Coffee
BEIJING | By Qiao Xinsheng at Caixin | Why is a latte more expensive in Beijing than London? Because China is an emerging economy forcing hidden costs on companies and Britain isn’t.
China: Deflating Property Bubble Fears
NEW YORK | By Junheng Li at Forbes via Caixin | The assumption that China’s housing market is out of control ignores many facts, most importantly that homeowners are not deeply indebted.
EM markets are likely to enjoy supportive conditions
LONDON | By Barclays analysts | EM markets are likely to enjoy supportive conditions over the next few weeks. The resolution of the US government shutdown, expectations of QE tapering pushed further into 2014, the emergence of some EM re-coupling to stronger global manufacturing and still-attractive EM valuations should all be helpful factors. Liquidity considerations are likely to become a less important market driver, and higher-yielding EM assets, particularly in EM credit, should attract further support where bottom-up fundamentals allow.
U.S. spying scandal: Communication lines under tension
BERLIN | By Claus Christian Malzahn at Die Welt via Presseurop | If allegations US intelligence services bugged German Chancellor Angela Merkel’s mobile phone are proved true, it will prove the worst fears a reality. After revelations of US spying on other countries, this could be the final straw in relations between Europe and the United States.
Who benefits from an acceleration in global growth?
LONDON | By Barclays analysts | Investor expectations have been slow to incorporate the improvement in global business confidence, and the persistent pessimism presents an opportunity to be long assets that will benefit from an acceleration in global growth.