Econintersect: Collected news stories follow that reflect on the Eurozone (EU-17) and the larger EU (EU-27) and their trading partners. Topics include the high price in Bangladesh for European T-shirts, the Greek brain drain, consumer spending in the UK, proposals for parallel currencies combined with the euro, independence for Scotland and several other stories.
Europe’s Moral Quandary: The High Human Price of Cheap T-Shirts – http://www.spiegel.de/
More than 3,000 people worked producing cheap t-shirts for European clothing chains in the highrise sweatshop that collapsed in Bangladesh last week. Hundreds died because the facility was lacking even the most basic safety standards.
French banks: Through the looking glass – http://www.economist.com/
It has been a strange few days for those who follow France’s banks at a respectful distance. On May 3rd BNP Paribas announced a 45% fall in first-quarter profits. Its share price shot up by 5%. On May 7th Société Générale said profits were down by 50%. Its shares positively levitated. When Crédit Agricole revealed the same day that its earnings had risen as much as Société Générale’s had fallen, its shares barely stirred…
The Greek brain drain – http://cnn.com/
More than 120,000 professionals have left Greece since the start of the financial crisis in 2010.
Deutsche Telekom says U.S. listing helps it “attack” rivals: paper – http://www.reuters.com/
FRANKFURT (Reuters) – Deutsche Telekom has given its U.S. operations more autonomy, positioning its business to compete better with bigger and smaller rivals, Chief Executive Rene Obermann told Germany’s Welt am Sonntag newspaper.
Subdued start to Q2 for UK consumer spending – http://www.markit.com/
Consumer spending fell in April, contrasting with marked growth seen in each of the previous three months. The Visa Europe: UK Expenditure Index, which is derived from card spending data, adjusted for factors such as changes in card usage and inflation, signaled a 2.5% drop in spending compared to March, the largest monthly decline since last October.
BloombergNews: Tesla’s market capitalization totals $8 billion, exceeding $7.8 billion for Italy’s Fiat | http://t.co/JLrwE84n58 – http://www.bloomberg.com/
Bloomberg News: Tesla’s market capitalization totals $8 billion, exceeding $7.8 billion for Italy’s Fiat | http://t.co/JLrwE84n58
Hot potato? Germany probes suspected potato price fixing – The Straits Times – Straits Times – news.google.com
Straits Times: Hot potato? Germany probes suspected potato price fixing.
Germany has launched a probe into suspected potato price fixing over the past decade which may have cost consumer and farmer hundreds of million of euro, local media reported on Saturday, May 11, 2013…
Lloyds pays back ECB – http://www.standard.co.uk/business/
Lloyds Banking Group, bailed out to the tune of £20 billion by the taxpayer four years ago, today made two moves signalling its strengthening balance sheet.
Canada’s new central-bank governor: After Carney – http://www.economist.com/
Say hello to the queen. Talk about a hard act to follow. On May 2nd Canada’s government announced a successor to Mark Carney, a central-banking superstar who will soon leave the Bank of Canada to take over from Sir Mervyn King as governor of the Bank of England. Surprisingly, it did not pick Tiff Macklem, the current senior deputy governor who is well known in international financial circles…
As Euro Slips, Chinese Yuan In Record Rise Vs Dollar – http://www.forbes.com/
The U.S. dollar may be gaining against the main currencies of Europe, but not so in China.
Week Ahead Economic Overview [13-17 May]: Japanese and eurozone GDP data – http://www.markit.com/
The week sees a vast amount of data released, including euro area and Japanese GDP, updates on retail and industrial growth in China, inflation for the US, plus the latest UK labour market statistics and the Bank of England’s Inflation Report.
Bank of England sees no need for further stimulus – http://www.markit.com/
The Bank of England’s Monetary Policy Committee voted to keep policy unchanged at its May meeting, with interest rates held at 0.5% and its asset purchase programme steady at £375bn. With the economic data flow improving in recent weeks, no change is likely at its June meeting either, but new initiatives may follow the appointment of Mark Carney as new Bank governor in July.
German ‘Alternative’: Parallel Currency Idea Carries Great Risks – http://www.spiegel.de/
A new German protest party is proposing the gradual re-introduction of the national currencies of highly indebted euro-zone countries. While the party’s spokesman insists the idea solves everyone’s problems, it has one major drawback: Economists agree it won’t work.
Egypt given $3 bln Qatari deposit at 3.5 pct: official – http://news.yahoo.com
CAIRO (Reuters) – Egypt received a $3 billion deposit from Qatar on Thursday, a central bank official said on Sunday, shoring up finances hit by economic turmoil since a popular uprising that toppled the government two years ago. The funds will remain with the central bank until Egypt’s Ministry of Finance issues bonds of the same value to Qatar, said the central bank official, who asked not to be named…
The world economy: Shaken, not stirred – http://www.economist.com/
The global economy seemed bound for a shaky start in 2013, with fiscal cliffs lurking in America and a chronic crisis in Europe. Yet things could have easily turned out worse. America’s politicians bungled about, but avoided disaster. Despite a messy bail-out in Cyprus, government-bond yields across the troubled euro-zone periphery are falling…
U.S. Dollar Not As Weak As You Think – http://www.forbes.com/
Remember when Ron Paul and other monetary policy wonks said the dollar was finished? The dollar is anything but. It’s not as strong as the euro, but it’s gaining on it.
Coca-Cola pledges to tackle obesity – http://cnn.com/
Richard Quest talks to Coca-Cola Europe’s James Quincey about the company’s concerns about consumer health.
Salmond tells AFP Scotland can prosper outside UK – http://news.yahoo.com
Scotland’s First Minister Alex Salmond has told AFP in an interview that the economy can prosper outside the United Kingdom, despite dire warnings from London about the risks of independence.
Italy’s Berlusconi attacks judges but backs Letta government – http://news.yahoo.com
By James Mackenzie ROME (Reuters) – Silvio Berlusconi launched a fierce attack on magistrates at a stormy political rally on Saturday, accusing them of trying to eliminate him politically but he pledged to keep supporting the fragile coalition of centre-left Prime Minister Enrico Letta. The leader of Italy’s centre right, whose appeal against a tax fraud conviction was rejected this week and who still faces trial on charges of paying for sex with a minor, repeated his longstanding accusations against prosecutors…
