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Busy doing nothing, again

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  • The G20 meeting did nothing. This is not, perhaps, a great surprise. The G20 rather excels at doing nothing. However, some have taken the absence of criticism as support for the current Japanese policy stance and a weaker yen.
  • Italy has a new president, who is the same person as the old president (the first time a president has been elected to a second term). Bersani resigned as leader of the PD. There is still no new government in Italy - Monti carries on as caretaker.
  • ECB members have been trying to reduce speculation of rate cuts over the weekend - Weidmann saying that when he said cuts were "possible" he obviously did not mean "probable". Asmussen has reinforced that, emphasising that ECB policy is already accommodative.
  • There is less discussion of additional US accommodation, obviously. However, Fed Chairman Bernanke has announced he will not be attending the Jackson Hole Symposium (a summer camp for central bankers) this year which may fuel talk of his retiring.

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