The Great Debate

from Anatole Kaletsky:

Why markets ignore good news from U.S. to focus on bad news from Europe

By Anatole Kaletsky
October 16, 2014

A trader watches the screen at his terminal on the floor of the New York Stock Exchange in New York

What’s spooking the markets?

One thing we can say for sure is that it is not the slightly weaker-than-expected retail sales that triggered the mayhem on Wall Street on Wednesday morning. Most U.S. economic data have actually been quite strong in the month since Wall Street peaked on Sept. 19.

from Anatole Kaletsky:

Will the European economy’s summer squalls turn into an autumn tempest?

By Anatole Kaletsky
October 3, 2014

Draghi, President of the European Central Bank (ECB) answers reporter's questions during his monthly news conference at the ECB headquarters in Frankfurt

Following the grim market response to European Central Bank President Mario Draghi’s latest monetary policy pronouncements, Europe is approaching another make-or-break moment comparable to the crisis of 2012. The summer quarter ended this week, and financial markets delivered their judgment on just how bad things are, pushing the euro down to its lowest level since September 2012. Europe’s quarterly stock market performance was the worst since the nadir of the euro crisis. The question is whether the miserable summer will give way to a milder autumn. Or whether the summer squalls will turn into a catastrophic tempest.

from Anatole Kaletsky:

What’s Europe’s best hope for avoiding a second euro crisis?

By Anatole Kaletsky
August 29, 2014

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This week’s theatrical resignation threat by Manuel Valls, the French prime minister, combined with deep European anxiety about deflation, suggest that the euro crisis may be coming back. But a crisis is often an opportunity, and this is the hope now beginning to excite markets in the eurozone.

from Anatole Kaletsky:

Can central bankers succeed in getting global economy back on track?

By Anatole Kaletsky
August 15, 2014

Stanley Fischer, the former chief of the Bank of Israel, testifies before the Senate Banking Committee confirmation hearing on his nomination in Washington

Why is the world economy still so weak and can anything more be done to accelerate growth? Six years after the near-collapse of the global financial system and more than five years into one of the strongest bull markets in history, the answer still baffles policymakers, investors and business leaders.

from Hugo Dixon:

EU needs more non-bank finance

By Hugo Dixon
June 2, 2014

The European Union needs more non-bank finance. Banks are on the back foot. On their own, they won’t be able to fund the jobs and growth the EU is desperate for. Non-bank finance needs to take up the slack.

Europe risks going the way of Japan

By Gordon Brown
September 14, 2012

(The views expressed by former British prime minister Gordon Brown are the author’s own and not those of Reuters)

Decisive euro action is needed at the G20 summit

By Gordon Brown
June 15, 2012

The European crisis is no longer a European crisis. It is now everyone’s. Unless Monday’s G20 summit in Mexico coordinates a concerted global action plan right now, we face a global slowdown that will also have a deep impact on the U.S. presidential election and even on China’s transition to a new leadership. This is the last chance.

from Jeremy Gaunt:

The unsyncopated rhythm of central banks

April 11, 2011

The European Central Bank is off and running with its tightening cycle -- raising by 25 basis points last week and talking in tongues enough to persuade markets that another hike is coming by July.  At the same time, the Fed -- despite some hawkish comments recently about QE -- isn't seen actually tightening for some time. Next year, actually.