Europe: Europe Twin Woes Fester in Draghi Job-to-Inflation Fight
Bloomberg reports that the Eurozone is set to release data on inflation and unemployment levels this week, as well as further details behind the ECB’s decision to cut rates to a historic low of 0.25% two weeks ago. There is ongoing concern in the region that inflation remains too low and unemployment too high.
United States: Banks to charge for deposit against Fed rate cuts
As the Financial Times reported, several leading banks have warned that they could start charging companies and consumers for deposits if the US Federal Reserve cuts the interest it pays on bank reserves. Executives at some of the top banks said that the cut on the rate they are paid would imply a cost that would be passed to the depositor. The situation could threat the use of monetary policy again.
Global: Oil prices fall after Iran and US nuclear deal
Due to the sanctions imposed to Iran after its nuclear program, oil production had been decreasing, driving prices up. After the agreement reached between the US and Iran, prices fell a 2% at the opening of Asian trade markets.
China: China’s Singapore Swing
In this article by Project Syndicate, Yao Yang argues that a Singapore-style approach has emerged from the Third Plenum. This is the combination of a freewheeling market economy and an authoritarian regime.
Switzerland: Swiss vote no to capping bosses’ pay at 12 times lowest paid
Swiss voters rejected a controversial proposal that would have cap the pay of top executives to 12 times the wages of their lowliest employees, BBC reported.