Angela Merkel in the German elections on Sunday won a great personal victory . Christian Democratic Union only a little is not enough for an absolute majority in parliament , writes Financial Times.
According to the latest data of the state channel ZDF, the Christian Democratic Union, together with the Christian Socialist Union won about 42 % of the vote - the best result in 20 years. According to various forecasts and estimates about the CDU did not have three seats for an absolute majority in parliament.
Free Democratic Party , junior partner in Merkel 's coalition party , has failed : the party received less than 5 % , which means that it does not enter the parliament. Merkel will have to start the difficult negotiations with the Social Democrats and the Greens to form a coalition .
The Germans supported the policy of Merkel is true of economic policy , and how to cope with Merkel evrokrizisom .
" This is a super result," - said Merkel to his supporters . The election campaign has been built around her personality - a person who is able to maintain stability in troubled times. While Merkel refused to comment on the situation with the failure of the Free Democratic Party.
Janet Yellen will make the Fed more disciplined
Janet Yellen , the leading candidate to become the next head of the Federal Reserve, the U.S. central bank will make management more complex and demanding, writes the Wall Street Journal. Barack Obama in the coming weeks should be called nominee Yellen .
Many employees of the Fed's Yellen support : it is an effective leader with a clear mind . Others are a little less sympathetic : Yellen argued with them and they left an unpleasant aftertaste . These are the results of the interviews more than a dozen current and former employees of the Federal Reserve. Most of them agree that Yellen , has made a career of the researcher from the usual to the head of the regional branch of the Federal Reserve is very demanding and detail-oriented .
At meetings of the Federal Open Market Committee Federal Reserve 's Yellen behave respectfully , is serious and always well prepared . She defends his point of view and supports the loose monetary policy. Often, because of this, she has to contend with the other members of the Federal Open Market Committee .
The process of decision -making on interest rates and monetary policy is as follows: 12 presidents of the regional reserve banks typically have a rigid point of view on a particular bill , six Fed governors behave quietly in public, but their private views may play a decisive role. Ben Bernanke tried to keep all of them somehow come to a compromise.
Yellen insists on the policy of low interest rates and asset purchases to boost economic growth and reduce unemployment. Other officials are confident that this policy will have a lot of unpleasant consequences and may lead to higher inflation .
If Yellen take a chair by Fed , it will have to seek a balance between their own views and collegiality .
Detroit became the object of charity for automakers
Since the beginning of the crisis and the recession in the U.S. Four years have passed , the sales and profits of Detroit's automakers are growing,
writes The New York Times. But while Detroit is in ruins . Abandoned homes and factories daily reminders that the city declared the largest municipal bankruptcy in U.S. history.
No other city in the U.S. there is no such difference between the wealth of the local companies and the wealth of the city : corporate profits are growing , and the city simply can not protect its citizens, and the light in the streets. Car companies pay the city millions of dollars to ease the financial pressure . But the problem is that American corporations simply can not afford to Detroit that the city really need : more well-paying jobs.
Ford recently gave the city $ 10 million to revive the local cultural center in the south- west of Detroit. The budget deficit of the order of $ 1 million, but the money can not go to Ford to cover it , they should spend on arts and dance classes on a variety of services and educational programs. This is the only charity.
Much more car companies helped the city until the 1980s when General Motors closed the two largest factory, which employed 10,000 people. In 1960, automotive plants and their dependent companies provide about 300,000 jobs in the city , now their number has decreased tenfold.
In this case, jobs continue to disappear , last year American Axle and Manufacturing, a major supplier of GM, has closed its factory in Detroit , shifting production to Mexico.
Greece began discussing a new program to help
On Sunday, Greece began talks on a new aid program to international inspectors. Greece, the third time may be granted Millards few dollars, writes The Wall Street Journal.
Greek Finance Minister Yannis Sturnaras held talks with representatives of the troika of creditors : the IMF , the ECB and the European Commission. The negotiations lasted four hours. In the center was a wide range of economic issues from Greece's budget before the new aid program . The work will continue for another week.
These negotiations are the result of the regular quarterly inspections of three representatives . In their course must be decided whether to grant the country the next tranche of one billion euros.
Statistics on the growth of the economy and the new budget shows that Greece's economy is experiencing a turning point . Athens want to gradually withdraw from the austerity program , which is a condition for granting aid to the country . But they believe that as long as the changes in the economy of the Greeks did not feel simple and extremism in the country is growing.
The next year , according to unofficial estimates, the budget of Greece will miss 2-4 billion euros, while in 2015-2016 2.5-4 billion euros. The question is whether Greece needs more austerity measures to cover the shortfall.
The amount of the deficit will depend on the amount of the third program for Greece , which is needed to cover the funding shortfall from July 2014 to mid- 2016. When the IMF to lend to end the country's economy . According to the IMF , Greece needs about 11 billion euros, much less than the volume of the first and second aid programs. However, the Europeans want to push the country to the new austerity measures to reduce the amount of aid .
Billions of dollars are spent on the world's financial advice
Pension funds and other large investment companies suffered billions of dollars on useless advice from investment advisers , this according to a new study in Oxford. Typically, funds, recommend consultants , is not fundamentally different from the others, and often lag behind them at market indicators , writes Financial Times.
U.S. funds investing in stocks , consultants who advise , usually by 1.1 % in the year showed the worst results from 1999 to 2011 than the market average .
The consultants gave advice on investments of $ 13 trillion in 2011. Around the world, they gave advice on how to invest $ 25 trillion . The services of consultants has been accessed pension funds and private companies.
