1 Asia shows more slowing signs (The Wall Street Journal) Slower growth in China's manufacturing sector in July added to a broader ramp-down in the region, as slack demand in Europe and the US continued to erode growth in Asia's export-driven economies. China's official Purchasing Managers Index, the government's gauge of the health of the manufacturing sector, slipped to 50.1 in July from 50.2 in June. The Chinese PMI reading is the weakest since November 2011, and reflects three consecutive months of decline, as Europe's broadening debt crisis and a stalled US economy have kept a lid on Western demand for Chinese exports.
Throughout Asia there is more evidence that the slowing global economy is taking its toll, in other economic data released Wednesday. South Korea's exports fell sharply from a year earlier in July while consumer prices rose at the slowest pace in more than 12 years. Korean exports tumbled 8.8% in July from a year earlier, much weaker than a forecast 3.9% drop.
In Australia, manufacturing activity hit a three-year low in July, according to the Australian Industry Group-PricewaterhouseCoopers Australian Performance of Manufacturing Index. The index fell 6.9 points to 40.3 during the month, as output in China, Australia's biggest trading partner, has slowed sharply.
2 Economic thinkers mull solution to euro crisis (The New York Times) While dealing with Europe’s financial difficulties has been a grim slog, it is the opportunity of a lifetime for ambitious idea merchants looking for fame. If any of them can come up with a plan that is adopted by Europe, they will have secured a coveted place in history. Three in particular who are respected in top policy circles and have access to the right people are Markus K. Brunnermeier, Graham Bishop and Daniel Gros.
Mr. Brunnermeier and Mr. Bishop are pushing variants of a common euro bond that would represent a pooling of some of Europe’s national debts. Mr. Gros supports turning the Continent’s new rescue fund, the European Stability Mechanism, into a licensed bank and using it to buy distressed Spanish and Italian bonds. He first floated the idea in a 2011 paper written with Thomas Mayer, Deutsche Bank’s chief economist at the time. And it is now under scrutiny in European power corridors. "In a crisis, what matters is liquidity," Mr. Gros said during an interview.
3 India growth headed down to 6.5% (BBC) India's central bank has cut its growth forecast for the country which is one of the world's fastest-growing. The Reserve Bank of India (RBI) lowered India's growth forecast for this financial year to 6.5% from 7.5%. It also left its key interest rate unchanged at 8% for the second month in a row. India, the world's second-most populous nation, targets annual growth of 9%. Last year, the economy expanded by 6.1%, down from 8.2% in 2010. India's economy grew at an annual rate of 5.3% between January and March, its slowest pace in nine years. Inflation is about 7%, higher than many emerging economies.
4 Powerless in India (Khaleej Times) The wheels of India's economy that has already begun to slowdown came to a grinding halt as power grid failures left swathes of northern India — Punjab, Haryana, Uttar Pradesh, Rajasthan, Himachal Pradesh and J&K and the capital New Delhi — without power.
Understanding India’s energy system is an exercise in futility. For years it has been running on empty. Bad planning, outdated infrastructure, grids fed on shoe-string budgets, unchecked theft of power, dwindling stock of much needed coal to power the grids (most of India’s energy is thermal) the infernal problem of corruption, random fixing of electricity charges, the continuous mass migration of people from villages and towns into cities, dubious distribution agencies and electricity boards deep in debt have all collectively contributed to the power failure. And, sadly, millions of Indians are yet to be connected to the national grid.
5 Euro in tatters (Khaleej Times) What is unnerving leaders across Europe is the soaring rate of unemployment. There are around 17.8 million people who are out of work in the eurozone, and this doesn’t count of many more millions who are in frictional unemployment. On the macroeconomic level, the crisis is far from being addressed as mounting debt and lack of growth remains primary concerns for the respective governments.
On the policy approach level as well there is utter confusion, as Chancellor Angela Merkel, who was leading the initiative on bailing out crisis-ridden economies, has taken a back seat. Plans for austerity, cutting down the size of the public sector and liquidity crunch are issues that have bogged down millions in Europe. With buoying of economies becoming a secondary concern, the core stress these days remains on saving the euro. It’s a task that is in wanting for more than a year.
6 Phelps has most Olympic medals (The Guardian) Twenty years after he first began to swim in suburban Baltimore, as a seven-year-old boy whose mother thought a pool might be the one place where he could conquer his chaotic excess of energy, Michael Phelps officially became the greatest Olympian in history. On Tuesday night Phelps won his 19th Olympic medal, and his first gold of these Games, in the 4x200m relay.
He had finally broken the record held by Larisa Latynina. The gymnast from the former Soviet Union was awarded the last of her 18 medals in 1964. Phelps had equalled Latynina's tally an hour before he swept past it. "The pool," Phelps once said, "is a safe haven. Two walls at either end, lane lines on both sides, and a black stripe on the bottom for direction."
Throughout Asia there is more evidence that the slowing global economy is taking its toll, in other economic data released Wednesday. South Korea's exports fell sharply from a year earlier in July while consumer prices rose at the slowest pace in more than 12 years. Korean exports tumbled 8.8% in July from a year earlier, much weaker than a forecast 3.9% drop.
In Australia, manufacturing activity hit a three-year low in July, according to the Australian Industry Group-PricewaterhouseCoopers Australian Performance of Manufacturing Index. The index fell 6.9 points to 40.3 during the month, as output in China, Australia's biggest trading partner, has slowed sharply.
2 Economic thinkers mull solution to euro crisis (The New York Times) While dealing with Europe’s financial difficulties has been a grim slog, it is the opportunity of a lifetime for ambitious idea merchants looking for fame. If any of them can come up with a plan that is adopted by Europe, they will have secured a coveted place in history. Three in particular who are respected in top policy circles and have access to the right people are Markus K. Brunnermeier, Graham Bishop and Daniel Gros.
Mr. Brunnermeier and Mr. Bishop are pushing variants of a common euro bond that would represent a pooling of some of Europe’s national debts. Mr. Gros supports turning the Continent’s new rescue fund, the European Stability Mechanism, into a licensed bank and using it to buy distressed Spanish and Italian bonds. He first floated the idea in a 2011 paper written with Thomas Mayer, Deutsche Bank’s chief economist at the time. And it is now under scrutiny in European power corridors. "In a crisis, what matters is liquidity," Mr. Gros said during an interview.
3 India growth headed down to 6.5% (BBC) India's central bank has cut its growth forecast for the country which is one of the world's fastest-growing. The Reserve Bank of India (RBI) lowered India's growth forecast for this financial year to 6.5% from 7.5%. It also left its key interest rate unchanged at 8% for the second month in a row. India, the world's second-most populous nation, targets annual growth of 9%. Last year, the economy expanded by 6.1%, down from 8.2% in 2010. India's economy grew at an annual rate of 5.3% between January and March, its slowest pace in nine years. Inflation is about 7%, higher than many emerging economies.
4 Powerless in India (Khaleej Times) The wheels of India's economy that has already begun to slowdown came to a grinding halt as power grid failures left swathes of northern India — Punjab, Haryana, Uttar Pradesh, Rajasthan, Himachal Pradesh and J&K and the capital New Delhi — without power.
Understanding India’s energy system is an exercise in futility. For years it has been running on empty. Bad planning, outdated infrastructure, grids fed on shoe-string budgets, unchecked theft of power, dwindling stock of much needed coal to power the grids (most of India’s energy is thermal) the infernal problem of corruption, random fixing of electricity charges, the continuous mass migration of people from villages and towns into cities, dubious distribution agencies and electricity boards deep in debt have all collectively contributed to the power failure. And, sadly, millions of Indians are yet to be connected to the national grid.
5 Euro in tatters (Khaleej Times) What is unnerving leaders across Europe is the soaring rate of unemployment. There are around 17.8 million people who are out of work in the eurozone, and this doesn’t count of many more millions who are in frictional unemployment. On the macroeconomic level, the crisis is far from being addressed as mounting debt and lack of growth remains primary concerns for the respective governments.
On the policy approach level as well there is utter confusion, as Chancellor Angela Merkel, who was leading the initiative on bailing out crisis-ridden economies, has taken a back seat. Plans for austerity, cutting down the size of the public sector and liquidity crunch are issues that have bogged down millions in Europe. With buoying of economies becoming a secondary concern, the core stress these days remains on saving the euro. It’s a task that is in wanting for more than a year.
6 Phelps has most Olympic medals (The Guardian) Twenty years after he first began to swim in suburban Baltimore, as a seven-year-old boy whose mother thought a pool might be the one place where he could conquer his chaotic excess of energy, Michael Phelps officially became the greatest Olympian in history. On Tuesday night Phelps won his 19th Olympic medal, and his first gold of these Games, in the 4x200m relay.
He had finally broken the record held by Larisa Latynina. The gymnast from the former Soviet Union was awarded the last of her 18 medals in 1964. Phelps had equalled Latynina's tally an hour before he swept past it. "The pool," Phelps once said, "is a safe haven. Two walls at either end, lane lines on both sides, and a black stripe on the bottom for direction."
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