UK politics thrown up in the air

By Mike Peacock
November 21, 2014

Nigel Farage, leader of UKIP, cheers as it is announced that UKIP candidate Mark Reckless won the by-election at Medway Park in Gillingham

As predicted, Britain’s surging anti-EU party UKIP snatched a second parliamentary seat from the ruling Conservatives overnight.

Will Germany’s Q4 get any better?

By Mike Peacock
November 18, 2014

Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange

Germany’s ZEW index will give an indication of whether the fourth quarter will be any better for Europe’s largest economy after it barely escaped recession in Q3. In October, the index dropped to its lowest level in nearly two years.

Draghi back in the dock

By Mike Peacock
November 17, 2014

E

European Central Bank President Mario Draghi faces lengthy interrogation at the European Parliament today.

The Fed’s taper and the question of the “tag-along” $5 billion

June 12, 2014

By Ann Saphir

Federal Reserve policymakers are expected next week to trim their monthly purchases of bonds by another $10 billion, putting them on track to end the massive program by October or December. So – which will it be, October or December? Some Fed officials are pushing for an answer, and soon.

Euro needs the Fed, or QE, for the next leg down

June 9, 2014

EIt has become increasingly clear it takes a lot more than words to sink the euro.

High unemployment putting the ECB in isolation

February 6, 2014

 

Unemployment in the euro zone is stuck at 12 percent, an already high rate that masks eye-popping rates in many of its struggling member economies.

from Rahul Karunakar:

A December taper: a chance to regain lost face?

December 18, 2013

Dear Fed,

You should taper in December and regain lost  face.

Signed,

A growing but vocal minority of economists

 

Even if the latest Reuters poll consensus still shows the Federal Reserve will wait until March before trimming its monthly bond purchases, the clamor to do that in December - or rather later today - is rising.

Hopes for a weaker euro looking more like fantasy

December 9, 2013

Hopes that the soaring euro will eventually fall and help the economy with a much-needed export boost for struggling euro zone nations are looking more and more like fantasy.

Auto-pilot QE and the Federal Reserve’s taper dilemma

November 26, 2013

 It wasn’t supposed to be this way.

When the U.S. Federal Reserve launched its third round of quantitative easing, or QE3, it was hailed as an “open-ended” policy that would last as long as needed. Most important for investors, the pace of the bond buying – which started at a somewhat arbitrary $85 billion per month – would be “data dependent.” Especially throughout the spring, officials stressed they were serious about adjusting the dial on QE3 depending on changes in the labor market and broader economy. But as the unemployment rate dropped to 7.3 percent last month from 8.1 percent when the program was launched in September, 2012, the bond-buying has effectively been on auto-pilot for 14 straight months.