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from MacroScope:

Draghi in London

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European Central Bank President Mario Draghi will deliver an evening keynote speech in London – the scene for his game-changing “whatever it takes” declaration in 2012.

He is unlikely to come up with anything so dramatic this time but is clearly trying to convince that the ECB could yet start printing money if required to avert deflation.

Draghi has taken the ECB a long way in terms of radical policies which some of its members have found hard to swallow. But QE could yet prove to be a bridge too far. Shortly after Draghi held out the prospect last week of printing euros to ward off deflation, Bundesbank chief Jens Weidmann and his German ECB colleague Sabine Lautenschlaeger mounted a rearguard action.

His colleagues Peter Praet and Benoit Coeure speak earlier in the day.

The European Court of Justice will hear three separate actions brought by Britain against the ECB, each of which contains the policy that central counterparties carrying out clearing operations in euros should be located in the euro zone, thus excluding clearing houses based in London.

from MacroScope:

Common cause for Washington and Tehran in Iraq?

Iraq is going up in flames and there appears to be no question of the West putting boots back on the ground in contrast to 2003 when the United States and Britain invaded to topple Saddam Hussein and set in train a decade of chaos that has now exploded again.

Iraq's most senior Shi'ite Muslim cleric has urged his followers to take up arms against a full-blown Sunni militant insurgency to topple Shi'ite Prime Minister Nuri al-Maliki. The chances of ISIL militants taking heavily armed Baghdad are slim but that doesn’t mean conflict will not continue and, with Iraqi Kurdish forces seizing control the oil hub of Kirkuk just outside their autonomous enclave in the north, the prospect of the country splitting along sectarian lines is real.

from Photographers' Blog:

Fishing and firearms on Lake Turkana

Lake Turkana, Kenya

By Siegfried Modola

When Simon Choko goes out fishing on Kenya’s lake Turkana, he brings a gun as well as a net.

In the drought-stricken corner of northwestern Kenya, the native Turkana community to which Choko belongs is involved in deadly conflict with rivals from across the border in neighboring Ethiopia, as the poor populations compete for dwindling food.

from Global Investing:

Frontier markets: past the high water-mark

By Julia Fioretti

Ethiopia's plans to hit the Eurobond trail once it gets a credit rating are highlighting how fast frontier debt markets are growing.

IFR data shows that sub-Saharan Africa alone issued $4.2 billion of sovereign debt in the year to September, compared to $3.6 billion in the same 2012 period. And returns on frontier market bonds have outgunned their high-yield emerging sovereign peers this year.

from Full Focus:

Photos of the week

Our top photos of the week.

from Nicholas Wapshott:

In Nairobi mall, a layered ‘clash of civilizations’

What can we make of the terrible events in Nairobi, where innocent shopping trips turned into a bloodbath? It is usual to think of such horrors as acts of senseless killing. For every civilized person, the slaughter is inexcusable and incomprehensible. But in this case, as in so many others, it is not inexplicable.

The notion of a “clash of civilizations” has gained widespread currency since the September 11 al Qaeda attacks, particularly in the United States, where the idea has not only been used to explain why many young Muslims hate the West but to encourage a general fear and suspicion of all Muslims.

from Photographers' Blog:

Witnessing the Nairobi mall massacre

WARNING: GRAPHIC CONTENT

Nairobi, Kenya

By Goran Tomasevic

(Editor's Note: Goran Tomasevic is a veteran war photographer, covering conflict for over 20 years in countries including Afghanistan, Iraq, Libya, Egypt and Syria. As Reuters chief photographer for East Africa, Goran is now based in Nairobi, Kenya. This is his story of the attack on the Westgate shopping center on September 21, 2013.)

I was at home when I heard from a friend about something happening, but we weren't sure what it was. I went to the Westgate mall and saw some bodies lying in the car park and realized it was serious. I saw some police so I hid behind the cars to take cover and slowly got closer to the gate.

from Full Focus:

Westgate mall massacre: Goran Tomasevic

WARNING: GRAPHIC CONTENT

Photographer Goran Tomasevic went inside Nairobi's Westgate shopping center as gunmen from Somalia's al Shabaab group killed dozens of mall goers. Read Goran's personal account of what he witnessed here.

from The Great Debate:

Democracy emerges in sub-Saharan Africa

The recent re-election of Zimbabwe’s 89-year old president Robert Mugabe, in office for 33 years, resembled a period not long ago when sham elections were the norm in sub-Saharan Africa. Peaceful transitions of power were almost unheard of.

Though the African Union disappointingly endorsed the elections as “honest and credible,” Zimbabwe’s electoral commission has now faced a spate of resignations and international condemnation over allegations of vote-rigging, intimidation and state media control.

from Global Investing:

Cheer up Morocco, frontier markets are hot

Morocco fears its stock market is on the verge of being re-classified as a frontier market when  index provider MSCI announces its annual rejig of equity indices this month.

Maybe it should pray for relegation instead. A report at the end of last week by Citi notes the boom in frontier market equities -- they have risen 15 percent since the start of this year, a stark contrast to their better known, more liquid emerging market cousins which have fallen around 5 percent so far this year. In fact the performance of the frontiers -- comprising less liquid, smaller markets from Kenya to Kazakhstan -- has been more akin to the U.S. or Japanese equity markets which have earned investors double-digit returns this year.

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