Markets aren't pricing in new monetary order

Sea change

Business Standard

Emerging economies need to change to compete

Not like clockwork

Cheap, good runner

Reuters

Gold warns markets of an anxious SeptemberGold may again be sending a warning to markets. Its price is again on a losing run, the most sustained since its spring cataclysm. The likely reason is that fears of a September tightening in US monetary policy are reviving.In April, a gold price decline of more than 10 per cent signalled an approaching seismic shift - the end of the expectation of endless quantitative easing from the US Federal Reserve.Since then, the yield on 10-year US Treasuries has jumped from 1.6 to 2.6 per cent. Emerging markets have slipped and commodities have stagnated. The only clear winner is developed country equities; the US S&P 500 index is up by about 10 per cent.The fallout now may well be a repeat but probably without the good news for developed stock markets.The economic news from the United States is good enough to make Fed governors restless. Richard Evans, generally considered a fan of money printing, is the latest to suggest the slowdown in quantitati

Seismic warnings

Dash from emerging to developed markets hits new risks

Unsafe retreat

Safe not sound

UK houses look expensive, like German bonds

My home is my bond

Carney in doesn't mean pound down as QE heads out

More up than down

Inflation arises from popping EM asset bubbles

Apres le deluge

Carney hopes for UK face bond-market bears

Difficulties of future speak

The stampede out

Stop press

Losing a (ring) digit

Golden canary

Fed turns enemy

Moody's shaming brings UK gain in currency war

Pound fall

Gold melts as economy warms and Fed warns

Cliff haven

The world economy continues to struggle to pick up speed. The International Monetary Fund recommends stimulus &mdash; or maybe austerity.

The limits to policy-making

The world&rsquo;s three economic engines are not pulling together. China is up. Europe is down. The United States is slow. That suggests market nerves will stay on edge.

Market limbo

The world&rsquo;s leading currencies are in an ugly contest. Central banks are bent on debasing them with active printing presses and ultra low rates. Small wonder gold is over the moon and the Australian dollar, paying a mighty three per cent interest rate, is considered a beauty. The yen is determined to come last. The euro&rsquo;s nerves have improved but it is still fragile.

Nasty choices

Switzerland 1st, Greece 96th. Those are the starkly troubling rankings on the World Economic Forum&rsquo;s 2012-13 competitiveness league table. North European economies do well, the euro zone periphery doesn&rsquo;t. It might suggest the combination of Germany and Greece in the same currency is like putting Chelsea and Hereford United in the same football league. The result is years of slaughter.

Ian Campbell