By Alex Plough November 28, 2014
Pope Francis Scolds EU
In Europe this week, the pope courted controversy by suggesting that the continent is “elderly and haggard” in a speech to the European Parliament. Pope Francis singled out high youth unemployment, hostile attitudes towards immigrants and unfettered consumerism as symptoms of the economic and spiritual malaise he believes is afflicting the continent.
Throughout his papacy, the Argentine-born pope has criticized the “throwaway culture” he believes can result from free market economy policies. In his speech, he advised EU leaders to “promote policies that create employment” by “joining market flexibility with the need for stability and security.”
ECB Primes Stimulus Pump
The Pope’s rebuke of European Union policy comes at a crucial time for the currency bloc. Vitor Constancio, the vice president of the European Central Bank (ECB), said on Wednesday that the monetary authority would consider buying sovereign debt next quarter if current stimulus measures fall short.
Europe’s central bankers are far from united on this issue – representatives from the German Bundesbank oppose the large-scale sovereign bond buying. On Monday the head of Bundesbank Jens Weidmann, who also sits on ECB’s Governing Council, said such action would face “high legal hurdles”. Weidmann and his Bundesbank colleagues fear that an ECB purchase of sovereign debt would serve as a subsidy for countries that are reluctant to reform their economic polices.
Europe’s alternative plan to stimulate growth is a 315 billion euro investment scheme that will offer funds from the European Investment Bank (EIB) to a wider range of projects.
The European Fund for Strategic Investments, which could be operational as soon as mid-2015, will use 5 billion euros in start up cash from the EIB along with 16 billion euros in European Union guarantees. But critics worry that the fund comes too late to have any significant effect on growth.
“If the EU investment plan turns out to be a levered pea-shooter, though, central bank actions won’t filter through the real economy, and next year’s recovery will be rich in liquidity, but growth poor,” said analysts from the Royal Bank of Scotland in a recent investment note.
Oil Uncertainty Ahead of OPEC
America’s rising output of shale-based petroleum continues to destabilize the oil market.
The price of a barrel of crude oil has been volatile in recent days as investors anticipate an upcoming meeting of the Organization of the Petroleum Exporting Countries, or OPEC.
OPEC members have so far resisted cutting supply to counteract falling prices, for fear of losing market share to US oil producers, which have boosted U.S. output of crude oil by 80% since 2008. MarketWatch has compiled a list of the possible outcomes from next week’s OPEC meeting in Vienna, along with a guide to their likely market impact.
Bonanza for Retail Workers
Falling petrol pump prices are not the only reason to cheer this holiday season; Thanksgiving and Christmas are some of the most intense days of shopping for US consumers. They are also the most profitable days for retail workers and those looking for jobs over the holidays. Bloomberg’s Steve Matthews examines why “It’s Most Wonderful Time of Year for Retail Job Seekers”.
A Matter of Taste
‘Tis the season for both over-eating and drinking too much, so it is interesting to see how our holiday habits have changed through the years. The New York Times’ Upshot has mapped which thanksgiving dishes are unusually popular in each US state. Diabetes-inducing favorites include “snicker salad” in Nebraska and Idaho’s “frog eye salad.”
When it comes to alcohol, the Wall St Journal reported that our tastes are improving. According to data from the Beer Market’s Insights, American’s now drink more craft beer than Budweiser.
