Politics

Italian stocks and bonds have rallied strongly on ideas that the Italian situation can only get better. It is exactly such time, when so many observers are nearly euphoric, that the smart money may want to take some profits.

The events of the last week have made it very clear that Scottish independence would affect all of the UK. I have no vote in this referendum, but I definitely have an interest in its outcome.

By Marc Chandler The Italian 10-year premium over Germany (white line) has generally fallen over the past year as the dollar against the euro (yellow line). Of course, as one would expect the euro is more volatile than the 10-year…

By Marc Chandler The US debt ceiling looms. The House Republicans are still formulating their strategy. Treasury Secretary Lew has said his ability to maneuver will be exhausted by February 27. While this sounds like ample time to avoid a…

Here is the heart of the matter. It is not the motivation to make money that makes people efficient with resources. It is having a single clearly-defined purpose. When objectives are unclear, money is inevitably wasted.

By Win Thin and Ilan Solot With their backs against the wall, policy changes are ramping up amongst major EM countries. Yet the positive impact has been limited so far. We do note that countries that tightened aggressively and…

By Marc Chandler Political developments in Italy are happening faster than Prime Minister Letta can maneuver. The economy he is overseeing is the poster child of ECB President Draghi's assessment of a weak, fragile and uneven recovery in…

At the Fabian conference yesterday, Ed Balls announced the Labour Party's intention, if elected in 2015, of restoring the 50p tax rate that was abolished by the present Coalition government. It is the central plank of his deficit reduction…

Abenomics is one of the most aggressive economic experiments we have witnessed in the post-Marshall Plan developed world. The questions is whether the massive stimulus campaign can work when politically there will always be discomfort with…

By Marc Chandler The simmering tension in the South China Sea may intensify in the coming weeks, and although this is no immediate market reaction, there could be going forward. Last week Japan indicate it will formally register 280…