Europe's plan to address weak banks risks unraveling

(Reuters) - The European Central Bank's (ECB) plan to test the health of the euro zone's largest lenders without the means to plug any holes it uncovers risks foiling what some see as the bloc's final chance to put its financial crisis behind it.

Lecture examines financial stability politics

Notre Dame undergraduates had an opportunity to get an insider’s perspective on the handling of the recent recession when Nellie Liang, a director of the Federal Reserve Board (the Fed) of Governors, came to campus to give a lecture aimed at economics majors on financial stability politics after the financial crisis.

Federal Reserve can have some flexibility with inflation goal: Charles Evans

OSLO: The U.S Federal Reserve can be flexible with its inflation objective and there is a risk it would overshoot its goal, but this is not an issue as long as price growth remains below three percent, a top Fed official said on Friday.

Portugal Holds Local Elections as Deeper Spending Cuts Approach

Portugal holds local elections on Sunday, two weeks before the government hands in a budget proposal for 2014 that will include new spending cuts.

BOE Says It’s Alert to Stability Risks From Housing Market

The Bank of England said Britain’s housing-market recovery is gaining momentum and its Financial Policy Committee is ready to act if any risks to stability emerge.

Bank of Canada says economy no excuse to delay financial reforms

OTTAWA (Reuters) - A senior Bank of Canada official urged global policymakers on Tuesday to push ahead with financial system reforms despite economic weakness, saying financial stability is an important precondition for growth.

Ireland officially exits recession

The recession in Ireland has officially ended.After a downturn hit the country at the end of last year and the first few months of this year, the widest measure of the economy has now revealed a slight upturn.

The Economist: “The Fed's have-it-both-ways policy”

R.A., regarding Bernanke’s Jackson Hole speech, your column notes that you “found the tone on monetary policy to be confusing and timid.” Expectations now turn to what President Obama will say next week and what the Fed will do (or not do) when they next meet. Uncertainty again prevails.

Alexander Mirtchev

Interest rates to remain at present or lower level: ECB's member Erkki Liikanen

HELSINKI: European Central Bank council member Erkki Liikanen reiterated on Friday that the bank is committed to keeping its interest rates low for a longer period of time.

Fed's decision not to cut stimulus 'prudent' - China's Xinhua

(Reuters) - The U.S. Federal Reserve's decision to delay reducing its massive monetary stimulus appears prudent, China's Xinhua news agency said on Thursday.

Prudential Financial designated 'too big to fail'

US regulators on Friday named insurer Prudential Financial to its list of "too-big-to-fail" institutions, the third non-bank placed under a tighter regulatory regime to reduce risks to the financial system.

Deep Thoughts by Alexander Mirtchev

Ashby Monk

For a variety of reasons, SWF employees are typically quite reserved and guarded when speaking to the press. Not so for Dr. Alexander Mirtchev, who is the Independent Director and a member of the Board of Directors of Kazakhstan’s $30 billion National Welfare Fund Samruk-Kazyna.

Alexander Mirtchev

Ireland exits recession as economy grows

The Irish Republic's economy has emerged from recession, according to official figures.

US Fed expected to announce stimulus slowdown

WASHINGTON: Many investors expect the U.S. Federal Reserve to announce a shift in course Wednesday and take its first step toward slowing the economic stimulus it has supplied since the financial crisis and the Great Recession swept through the economy five years ago.

Securing global economic security

Inflation is a significant factor of global economic security and has the innate capacity to upend carefully laid plans

Sir, Further to the article by Sam Fleming, “Incomes will plummet as inflation soars, report claims” (May 3), I agree that the erosion of earnings by inflation should move higher on the economic agenda.

Alexander Mirtchev

Eurozone govts must do more to stimulate investment: ECB chief, Mario Draghi

European Central Bank chief Mario Draghi called on eurozone governments Monday to do more to encourage investment in order to boost competitiveness.

Rise of British anti-EU party threatens PM's re-election: poll

(Reuters) - British Prime Minister David Cameron's hopes of being re-elected in 2015 suffered a setback on Sunday when a poll showed an anti-European Union party had split the center-right vote in dozens of decisive constituencies.

Budget deficit shrinks in August from year earlier

(Reuters) - America's budget deficit shrank in August compared to a year earlier, with government accounts helped by tax hikes and an improving economy.

Bailouts still key issue as eurozone finance ministers meet

Eurozone finance ministers meet in calmer times Friday but still need to ensure bailed-out member states meet their targets amid growing speculation some will need more help to get back on track.

Financial stocks near monthly highs

NEW YORK (MarketWatch) — Financial stocks traded near monthly highs on Friday as leading money-center banks advanced.

ECB's Draghi says level of money market rates unwarranted

RIGA: European Central Bank President Mario Draghi said on Thursday that the euro zone recovery was still "very, very green" and the recent rise in short-term money market interest rates was unwarranted.

BOE Orders Review of Risk to Banks From Interest Rates

The Financial Stability Board, led by Bank of England Governor Mark Carney, said that his central bank may need to boost the number of regulators focusing on small lenders.

Consumer credit grows, but held back by weak credit card use

(Reuters) - Growth in U.S. consumer credit slowed for the second straight month in July, held back by a decline in a measure of credit card usage that hinted at a mood of caution among consumers.

ECB says could offer leniency in ABS loan reporting

FRANKFURT: The European Central Bank said on Monday it could accept some debt paper as collateral against which it lends money to commercial banks, even if they do not fulfil the new reporting requirements.

Greek premier Antonis Samaras says economic pain will ease next year

ATHENS: Greece's economic pain will ease in 2014 as it exits a recession that will be less acute than forecast this year, helping the country meet its bailout targets, Prime Minister Antonis Samaras said on Saturday.

South African gold miners return to work

Most of the 80,000 South African gold miners who have been on strike since Tuesday have returned to work after a new pay offer, union officials say.

Euro zone inflation pressures stable at 40-month low: ECRI

BANGALORE: Euro zone inflation should ease in coming months after price pressures stayed at multi-year lows in July, an indicator designed to predict cyclical trends showed on Friday.

The Global Inflation Wave: Waiting for Constantine?

Source: The Globalist

Alexander Mirtchev and Norman Bailey,

In the wake of the global economic crisis, the world is trying to chart an economic path to the future and find a "new normal." As Alexander Mirtchev and Norman A. Bailey explain in the first installment in their series "The Search for a New Global Equilibrium," inflation as a factor of global economic security has the innate capacity to upend carefully laid plans and further upset the equilibrium.

Weak spending, inflation data point to soft U.S. economy

(Reuters) - U.S. consumer spending barely rose and inflation was tame in July, offering a cautionary note on the economy as the Federal Reserve weighs cutting back its massive bond-buying program.

South Africa backs "global collective action" against market turmoil

JOHANNESBURG: South Africa would like to see better global coordination to tackle volatility in emerging markets caused by an expected scaling back of US monetary stimulus, President Jacob Zuma's office said on Monday.

Will G-20 Counter Power of Uncertainty?

By Alexander Mirtchev 

In 2009, G-20 leaders met in Pittsburgh and emerged with a mandate ‘to be the premier forum for international economic cooperation,' endowing the G-20 with a leading economic role on the global stage. It appeared at the time that the leaders of the G-20 had successfully defeated pessimism. However, the rising tide of global economic turmoil and problems ranging from sovereign indebtedness to consumption and saving imbalances have created a ‘perfect storm' that is far from abating.

Swiss economy powers ahead in second quarter

ZURICH (Reuters) - Switzerland's economy grew by a robust and better-than-expected 0.5 percent in the second quarter, data showed on Tuesday, driven by private consumption and spending on machinery.

Bank of Japan to hold policy, debate emerging market risks

TOKYO: The Bank of Japan may hold off on declaring the world's third-largest economy has cemented its recovery at a policy review this week as it waits to see the fallout on activity from slowing growth and capital outflows in emerging nations.

France signals shift to tax cuts in boost to business

France's Socialist government is hinting it may appease discontent at tax rises by putting more stress on spending cuts in its fight to control the budget and boost growth.

European banks pick up capital plans

LONDON: European banks are finally getting to work on upgrading their capital buffers, on the back of the regulatory certainty which the European Banking Authority finally granted at the beginning of June.