A months-long effort to set U.S. finances on a sustainable course appeared likely to end in failure on Monday as lawmakers in Congress were unable to bridge a deep divide over taxes and benefits.
Republican and Democratic lawmakers cast doubt on any possibility of agreement in appearances on Sunday political talk shows. Without some unexpected breakthrough, aides said, a 12-member bipartisan “super committee” tasked with drawing up a deficit-cutting plan will admit defeat on Monday.
Some of the panel members pointed fingers on Sunday as the clock ticked toward an imminent deadline. The committee must vote on any deal by Wednesday, but Monday is the deadline to have legislation written and presented to the committee.
Japanese exports dropped more than forecast in October, Singapore said its growth may slow to 1 percent next year and China signaled the global economy faces an extended slide.
The reports may raise pressure on policy makers in export- reliant Asia to implement further stimulus measures. A record of the Bank of Japan’s Oct. 27 meeting today showed one board member favored adding 10 trillion yen ($130 billion) in asset purchases, and Chinese Vice Premier Wang Qishan said his nation must adopt more “forward looking” and flexible monetary policy.
Spain’s opposition conservatives swept commandingly into power and into the hot seat Sunday as voters enduring a 21.5 percent jobless rate and stagnant economy dumped the Socialists —the third time in as many weeks Europe’s debt crisis has claimed a government.
Awaiting words from victorious party leader and future prime minister Mariano Rajoy, thousands of jubilant, cheering supporters waving red-and-yellow Spanish flags and blue-and-white party ones gathered outside Popular Party headquarters in downtown Madrid as pop music boomed over loudspeakers.
With 90 percent of the votes from the election counted, the center-right Popular Party won 186 seats compared to 154 in the last legislature, while the Socialists plummeted from 169 to 110, their worst performance ever.
The PP thus won an absolute majority and resounding mandate from troubled electorate. It needed 176 votes for such a majority.
Sometimes stock market moves defy a sensible interpretation.
The news directly related to US equities was pretty good last week, but the market reaction was negative. If you were watching daily trading, you could focus on one indicator: The yield on the Italian ten-year bonds. With 7% perceived as the danger zone that presaged problems in Greece and Ireland, there is special concern when this level is approached.
As rates move higher, current holders are increasing their selling. The New York Times highlights the risk of a downward spiral. When the euro moves lower, the dollar moves higher and stocks decline. Correlations among all stocks and sectors remain high, so the story is all about Europe.
Existing home sales for October
Atlanta Fed President Dennis Lockhart speaks
GDP, third quarter, second estimate
Minneapolis Fed President Narayana Kocherlakota speaks
Weekly jobless claims
Personal income and spending for October
Durable goods for October
Michigan consumer sentiment index for November
Give thanks for a lack of economic data
Eat a leftover no-data sandwich