Deeper Analysis
An Abrupt Cool-Down in the Euro Area’s Economy
July 21, 2011
The table below compares purchasing managers’ survey readings in July to quarterly average readings going back to the final quarter of last years. Participants in each monthly survey are asked to report if conditions have improved, held steady or deteriorated since the prior survey, and the numbers are compiled in such a way that a […] More
Deeper Analysis
America’s Jobs Deficit and Budget Deficit
July 21, 2011
The U.S. economy has substantial imbalances in its labor market and public finances. Politicians from both the Democratic Party and Republican Party have chosen to attach higher priority to correcting the budget than to labor market in part because of the belief that they can directly affect the fiscal outlook but jobs only indirectly because […] More
Central Bank Watch
South African Credit Policy Left as It Was
July 21, 2011
As widely expected, officials at the South African Reserve Bank (SARB) retained their 5.5% repo rate level, which is a cyclical low. Three additional reductions last year of 50 basis points each in March, September and November followed 500 bps of ease implemented from December 2008 to August 2009. The central bank rate remains 650 […] More
Central Bank Watch
Turkish Monetary Policymakers Flag Risk of Future Ease
July 21, 2011
Policymakers at the Central Bank of the Republic of Turkey had cut their key interest rate by 1175 basis points from November 2008 to November 2009. Last fall, a complicated form of tightening was initiated that permitted the one-week repo rate to drop by a further 75 basis points in two steps but also raised […] More
New Overnight Developments Abroad - Daily Update
Expecting EU Leaders to Present Another Fudge
July 21, 2011
Markets had been hopeful earlier this week that EU leaders might find a way to stop the prolonged euro debt crisis. On this D-day, it seems that investors are braced for disappointment. The German Dax and Paris Cac are down 0.9%, and the British Ftse has lost 0.8%. The euro has lost 0.4% against the […] More
