What We Read Today 03 November 2014

Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary “reading list” which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for “reading list” items are gratefully reviewed, although sometimes space limits the number included.

Germany’s PMI Rises To 51.4 (Dina Spector, Business Insider) The Markit “Flash” Manufacturing PMI for Germany rebounded significantly in October to 51.4. It had registered a 15-month low of 49.9 in September. Readings above 50 indicate an expanding sector. Employment and production growth accelerated but there is some concern that new orders declined slightly.

Exclusive: U.S. probing Standard Chartered over Dubai banking – sources (Karen Freifeld, Reuters) The London bank Standard Charter, which has offices in the U.S., is being investigated by U.S. authorities due to alleged violations of sanctions against Iran. Facts which came to light in the BNP Paribus investigation of such activities are the basis of the Standard Charter probe. BNP paid a settlement this summer of $8.9 billion. This is the third investigation of Standard Charter in the past three years. The first two led to settlements totaling $967 million (2012 and 2014).

China October services growth slips to nine-month low, property weighs (Kevin Yao, Reuters) China’s non-manufacturing sectors passed the formerly leading sector, manufacturing and construction, last year (for the first time), reaching 46.1% of GDP. But now non-manufacturing businesses are showing slower growth, as some of the steam is coming out of the Chinese economy. For October the official PMI (Purchasing Managers’ Index) for non-manufacturing registered 53.8, down from 54.0 in September. Earlier this year there were two months with readings 55 and above May and June). Readings above 50 indicate a growing economy.

U.N. Panel Warns of Dire Effects From Lack of Action Over Global Warming (Justin Gillis, The New York Times) Use of fossil fuels is increasing globally and the IPCC (Intergovernmental Panel on Climate Change) says that to avoid food, water and severe climate impacts action is needed to find ways “to leave the vast majority of the world’s reserves of fossil fuels in the ground“. Alternatively the panel said a solution would also be to develop “methods to capture and bury the emissions resulting from their [fossil fuels] use“. See also GEI News just published: IPCC’s ‘Most Important Report’ Sets Stage for Paris Climate Talks. (For ongoing details follow GEI News weekly global weather and climate review by weather economist Sig Silber every Monday evening.)

“Continued emission of greenhouse gases will cause further warming and long-lasting changes in all components of the climate system, increasing the likelihood of severe, pervasive and irreversible impacts for people and ecosystems.”