forward guidance

♦ The Egyptian military reasserted its privileged political position by removing Mohamed Morsi from power. Troops surrounded the state broadcasting headquarters and General Abdel Fattah al-Sisi, the army chief of staff, delivered a televised speech announcing the takeover. Morsi’s authoritarian governing style exacerbated the huge challenges Egypt already faced – including a moribund economy and intense political polarisation, reports the FT’s Borzou Daragahi. David Gardner says that Morsi’s government, the liberals and Mubarak’s “deep state” are just as much to blame for Egypt’s stormy state of affairs as the generals.

♦ The Indian newspaper Patrika has achieved success through itsreputation for credibility – it doesn’t take political bribes, which is increasingly common among other Indian newspapers – and for public interest advocacy – it focuses on hyperlocal coverage.

♦ Lithuania’s president, Dalia Grybauskaite, has backed a deal to break up the Russian export monopoly that supplies gas to Lithuania by anchoring a ship off of a small nearby island to process deliveries of liquefied natural gas for homes and businesses.

♦ Le Monde reports that France has a “big brother” similar to the American Prism system that systematically gathers huge amounts of information on internet and phone activity.

♦ The FT’s Chris Giles argues that Carney’s “forward guidance” plan for the BoE may be too risky, even though it is based on a strategy used by other central banks including the US Federal Reserve and Bank of Japan. Read more