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from MacroScope:

After “get in the hole!”, Europe remains in a hole

Team Europe golfers pour champagne over captain Paul McGinley as they celebrate retaining the Ryder Cup at Gleneagles

Who says Europe is broken? The Ryder Cup stays here again and even Nigel Farage, leader of Britain’s anti-EU party, said he wanted Europe’s golfers to win.

The euro zone is not winning the economic competition however, despite the European Central Bank’s best efforts (it should be noted that only 3 of the 12 Ryder Cup team come from euro zone countries).

Prior to the ECB’s monthly policy meeting on Thursday, we get German inflation for September data today.

One upside for the currency bloc is the falling euro which has broken below its 2013 lows and is down almost nine percent from the peak it hit against the dollar in May. With U.S. money printing about to end next month and speculation intensifying about the timing of a first interest rate rise from Washington, there are good reasons to think that this trend could continue.

from MacroScope:

Britain to join the fray

A pair of U.S. Air Force F-15E Strike Eagles fly over northern Iraq

The British parliament will vote today on whether UK forces should join U.S.-led air attacks against Islamic State militants. Any action will be confined to Iraq, which has asked for help, not Syria where IS also controls swathes of territory. Prime Minister David Cameron has promised a separate vote on that if it comes to it.

Unlike last year when action to stop Syria's Bashar al-Assad using chemical weapons against his own people was voted down, all the main parties appear to be broadly in support, probably swayed by the beheading of captives by the Sunni militants.

from The Great Debate:

As Iran talks resume, it’s time to play ‘Let’s Make a Deal’

U.S. Secretary of State Kerry, EU High Representative for Foreign Affairs Ashton and Iranian Foreign Minister Mohammad Zarif speak together during the third day of closed-door nuclear talks at the Intercontinental Hotel in Geneva

On Thursday, negotiators from the United States, Iran and five other world powers begin the final stretch of negotiations on a comprehensive nuclear agreement. A deal is within reach. But time is short.

With fewer than three months before the Nov. 24 deadline for an agreement, defining the size and scope of Iran’s uranium-enrichment program remains the most significant gap. To bridge it, negotiators must move away from extreme positions toward more realistic ones.

from MacroScope:

Showdown for Hollande

French President Hollande and Finance Minister Sapin take part in the assizes for financing and investment at the Elysee Palace in Paris

The French government faces a confidence vote in the national assembly after President Francois Hollande and his prime minister, Manuel Valls, ousted dissident ministers in a signal perhaps that they are prepared to push ahead with unpopular structural reforms to breathe life into a moribund economy.

Rebel lawmakers in Hollande’s Socialist party say they may abstain. On top of the reshuffle, they are angry at Hollande's policy switch in January to favour tax cuts to business in a bid to revive the economy - a move that has failed to kickstart a flatlining economy.

from The Great Debate:

If U.S. joins Islamic State fight, how will it get out?

U.S. President Barack Obama delivers a statement from Martha's Vineyard, Massachusetts

When President Barack Obama makes the case for military action against Islamic State militants on Wednesday night, it won't be hard to convince Americans to get involved in the conflict. The hard part will be explaining how we get out.

The president is speaking to the American people -- not to Congress. He may not even ask Congress to authorize the use of force. Just to fund it. Which they will do because they don’t want to undercut the U.S. military.

from Jack Shafer:

Keep your frenemies list short and your enemies list shorter

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Compiling an enemies list was a cinch for the United States during the Cold War, what with most of the Soviet Union’s nuclear arsenal targeted its way. Friends of the Soviets immediately became America’s enemies, and Soviet enemies became U.S. friends. That made China a U.S. enemy of the highest order, a ranking sharked by the Soviet client-states of Cuba, North Korea, and North Vietnam, against which the United States fought. Muammar Gaddafi's Libya rose to high-enemy status under President Ronald Reagan, a position it maintained until he surrendered its nuclear program.

The enemy-allies partition had a few anomalies, notably the non-aligned nations and double-dealers like the Indians and the Romanians, who exploited frenemy relations with the United States. But it drove U.S. foreign policy for more than two generations until the Soviets sloughed off both communism and empire, laid down their ICBMs, and exited the enemy business. 

from The Great Debate:

The best weapon to fight the Islamic State is already in Iraq

A Kurdish Peshmerga fighter stands guard at the Bakirta frontline near the town of Makhmur

In 21st century Iraq, the enemy is not a state, though it calls itself one. The Islamic State in Iraq and the Levant (ISIL) is a group of Islamist insurgents whose presence stretches across the border between Syria and Iraq.

The only way to defeat the Islamic State is through military force, but Americans will not be doing the fighting on the ground. General John Allen, who commanded NATO forces in Afghanistan, has observed that, “the Kurds, the Sunnis and the Free Syrian resistance elements of the region are the ‘boots on the ground’ necessary to the success of this campaign.”

from MacroScope:

End game in east Ukraine?

A Ukrainian serviceman sits on a military armoured vehicle near Donetsk

Ukrainian government forces say they are preparing for the final stage of recapturing the city of Donetsk from pro-Russian separatist rebels after shelling its outskirts and making significant gains over the weekend.

The city faces increasing shortages of food, water and electricity. Vladimir Putin must now decide whether to leave the rebels to their fate or step up his support.  Kiev said on Saturday it had headed off an attempt by Russia to send troops into Ukraine under the guise of peacekeepers accompanying a humanitarian convoy sanctioned by the Red Cross. Moscow dismissed the allegation as a "fairy tale".

from MacroScope:

When Mario met Jean-Claude

European Central Bank President Draghi and Eurogroup President -Juncker talk during a news conference in Nicosia, Cyprus

A day before the European Central Bank’s monthly policy meeting, ECB President Mario Draghi will travel to Luxembourg for talks with incoming European Commission president Jean-Claude Juncker. Oh to be a fly on the wall.

Some in the ECB are concerned that ultra-low sovereign borrowing costs and Draghi’s “whatever it takes” promise has relieved pressure on euro zone governments to carry on with structural economic reforms.
Juncker has signalled he is comfortable with a Franco-Italian drive to focus on growth and job creation rather than cutting debt.

from MacroScope:

Moment of truth for EU sanctions

The logo of Russia's top crude producer Rosneft is seen in Moscow

President Barack Obama and the leaders of Germany, Britain, France and Italy agreed on a conference call last night to impose wider sanctions on Russia’s financial, defence and energy sectors.

EU ambassadors are meeting today and are expected to target state-owned Russian banks and their ability to finance Moscow's faltering economy.

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