Global economy

November’s press conference by European Central Bank President Mario Draghi comes a week after the US Federal Reserve ended its monetary stimulus programme, and the Bank of Japan put a rocket booster under its already large volumes of bond buying.

In contrast, investors and analysts are expecting the ECB’s monetary policy committee to sit tight this month. It has announced that rates remain at a record low and predictions are for no change in its private-sector asset buying programme. But with eurozone deflationary fears showing no signs of receding in the stagnating economy, investors will be wanting Draghi to instil confidence in markets that he has his own bazooka ready to fire. By Lindsay Whipp and Emily Cadman

 

  • Hungary’s introduction of the world’s first internet tax is just the latest in a batch of unorthodox uneconomic policies, dubbed ‘Orbanomics‘, that some say are leading to increased government control over the economy
  • Through their alliances with jihadis and actions that flout the democratic will, Libya’s Islamists are courting disaster for themselves and their country
  • The disappearance of 43 students has brought attention back to Mexico’s security woes and away from its economic reforms, threatening to tarnish President Enrique Peña Nieto’s record of success
  • Quantitative easing in the US has kicked back into gear Wall Street’s securitisation machine – providing a supply of risky assets that bundle together car loans, corporate debt and mortgages
  • The forgotten Yazidi refugees who once captured the world’s attention now sit outside the spotlight, wondering how they will survive the winter, reports Foreign Policy

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The biggest development story of the last two decades has been the vast reduction in the number of the world’s extreme poor thanks to the rapid growth of China and other developing economies. But how does the US, the world’s richest economy, fit in when you apply the $2/day poverty line the World Bank and others normally use to grade much poorer countries?

In a fascinating new paper, researchers at the Brookings Institution look at exactly that question and come up with some potentially shocking findings, albeit ones that come with plenty of caveats attached. Read more

The Bank of England will weigh the weakness of Britain’s wage growth against the strength of its economic recovery when it delivers fresh forecasts in its quarterly inflation report on Wednesday morning, containing signals about when a rise in interest rates is likely.

<To be delivered in tandem with the latest UK employment data, the BoE’s estimates of the amount of slack in the economy will be one of the most closely watched metrics. At the last quarterly inflation report in May, the BoE estimated the amount of spare capacity was between 1 – 1.5 per cent, judging there was room for this to narrow further before rates tightened.

By Sarah O’Connor and Claer Barrett

 

(Getty)

By Christian Oliver and Richard Milne

Europe’s leaders are preparing for a trade war with Russia by mapping out the battlefields on which they see the highest risk of casualties.

In data released on Friday, the European Commission identified the agricultural exporters most vulnerable to Moscow’s trade embargo on EU produce. Spanish peaches, Dutch cheeses and Polish apples find themselves squarely on the front line.

Polish fruit exports to Russia were valued at €340m last year and win the dubious honour of being the most exposed crops. The Poles have launched an impassioned public campaign to try to switch to more domestic consumption with their “Eat an apple to spite Putin” slogan.

The Netherlands (with dairy exports to Russia of €257m in 2013) and Finland (€253m) are at most risk on the milk and cheese front. Spain and Greece are vulnerable in relation to citrus, with stoned fruit such as peaches and nectarines also being described by farmers as being at crisis point in terms of storage overload and no market to go to. Read more