October 14th – Top Stories
- Shutdown puts health of economy on ice - MarketWatch - By Jeffry Bartash, MarketWatch
Lawmakers are finally breaking the ice after a two-week government shutdown, but it may take awhile to gauge how much of a chill it gave to the U.S. economy.
Despite rising prospects of a deal on government spending and the U.S. debt limit, the standoff in Washington has delayed a number of key economic reports, and it may take another week before they start to appear. Yet those reports, such as employment growth for September, may not tell us much about where the economy is headed in light of the disruption caused by the stalemate.
Some economists figure the dispute will only shave a few ticks off growth in the fourth quarter, which began at the start of October. Others see a deeper impact owing to the hesitancy of consumers and businesses to spend in the midst of yet another episode of political brinkmanship.
- China’s September export growth in surprise slide - Reuters – By Xiaoyi Shao and Koh Gui Qing
China’s export growth fizzled in September to post a surprise fall as sales to Southeast Asia tumbled, data showed, a disappointing break to a recent run of indicators that had signaled its economy gaining strength.
China’s exports dropped 0.3 percent in September from a year earlier, the Customs Administration said on Saturday, sharply confounding market expectations for a rise of 6 percent, and marking the worst performance in three months.
- Merkel Faces Struggle on Coalition Talks Even After Her Victory - Bloomberg – By Patrick Donahue
Chancellor Angela Merkel will confront a stiffening challenge to form a government this week even after her record election victory as prospective coalition partners raise demands to open official talks.
With the leadership of Germany’s Greens party already casting doubt on negotiations with Merkel’s Christian Democratic-led bloc, the Social Democrats are hardening in their demand for a nationwide minimum wage of 8.50 euros ($11.51) an hour. Merkel’s faction will hold a second round of exploratory talks with the SPD today in Berlin and with the environmental Greens tomorrow