1 Ultra-low interest era may be ending (Larry
Elliott in The Guardian) The symbolism would be perfect. When the Federal
Reserve announces its decision on US interest rates on 17 September it will be
almost seven years to the day since Lehman Brothers went bust. That was the
moment when the financial crisis went nuclear, ushering in the era of ultra-low
interest rates.
That era now looks to be coming to an end. The
latest set of US unemployment figures were unspectacular, and would have been
seen as modest in previous economic cycles. But that’s not the issue. What the
financial markets wanted to know was whether the unemployment data would be
weak enough to push back the timing of the first Fed rate rise since the summer
of 2006 from September to December. They weren’t.
If the Fed was of a mind to delay a rate rise until
December there was nothing in the payrolls to prevent them from doing so. But,
equally, there was nothing to prevent them tightening policy either. And all
the signs are that the Fed does want to move in September unless there is
compelling evidence to do otherwise.
Certainly, the less-than-sparkling payroll numbers
point to rates rising only slowly. But the Fed would only have abandoned its
September timetable had the increase in jobs been 150,000 or lower, rather than
215,000.
2 Brazil inflation at 12-year high (BBC) Inflation
in Brazil has hit a 12-year high of 9.56%. The rising cost of electricity, in
particular, has pushed the rate to its highest level since November 2003. The
country's central bank targets an inflation rate of 4.5% and has raised
interest rates to 14.25% - among the highest of major economies - to combat
rising prices.
High inflation is compounding Brazil's economic
woes. According to the International Monetary Fund, the country's economy is
set to shrink by 1.5% this year. Weaker demand for Brazil's commodities,
particularly from the slowing Chinese economy, is the main reason behind the
slowdown.
The country's President, Dilma Rousseff, is also
trying to force through measures to cut the country's deficit by cutting
spending and raising taxes. Brazil is currently the world's seventh largest
economy.
3 Africa’s strife is Europe’s pain (Khaleej Times) How
can Europe's migrant crisis end with Africa in turmoil - its people homeless
and destitute? The continent's angst is now Europe's griping pain. Critics of
the European Union say the 28-nation bloc has a duty to take in more refugees.
We say Africa should find solutions to her own woes and stop this surge of
masses.
But how can a seemingly ungovernable continent set
its house in order when it lacks an effective system of administration? Civil
strife, political dissent and religious hate are engulfing different countries
in the continent. Business is struggling to stay afloat because violence has
taken root in Libya, Sudan, Ethiopia, Eritrea, even Kenya, Chad and Nigeria.
Blame it on leaders, many of them despots, who have clung to power for decades.
Africa has been exploited in the past by colonial
powers, its people were shipped to different parts of the world to work as
slaves, its minerals and resources were drained. The scars are seen on the psyche
of these people on the brink. They have nothing to lose on the passage across
the Mediterranean, because they've given up on home and everything at home.
It's a loss that's hard to fathom for the ordinary global citizen.
International Organisation for Migration figures
show more than 2,000 migrants have died crossing the Mediterranean Sea this
year. In 2014, the total dead was 1,607. The number is rising this year because
more people have been put on rickety boats by human smugglers operating with
impunity from Africa's lawless shores. With some luck and help from the
elements, these hapless boat people make it to Italy, to slip in to the night,
and deep into Europe.
Africa's strife is turning into Europe's law and
order problem and there's no solution because the Union is a house divided. A
naval pushback will mean these refugees are thrown into the waters which will
arouse activists' zeal. Before we blame Europe, African countries should do
some soul-searching and target human trafficking networks on its shores.
Second, they should improve coastal security. Last, but not the least, it
should focus on effective governance and development.
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