Wednesday News And Notes
Executives of America’s major businesses are beginning to back away from their opposition to changes in the top tax rates, a key negotiating point in the fiscal cliff talks. The inclusion of proposed changes to corporate taxes is a sign of both the strong hand of President Obama, as well as the desire for businesses to achieve some sense of certainty and stability.
Fiscal Cliff Not Only Worry On Wall Street
While the fiscal cliff is of concern to Wall Street, Europe and its financial crisis remains an ever-present worry. The dire state of the economies of Europe was reflected in another downturn in the Eurozone industrial output. Following on a 2.3 percent decline in September, production fell by a monthly 1.4 percent, which was counter to expectations.
European Ripples Felt In US
The slowing of economies around the world was reflected in the widening of the US trade gap. On Tuesday, the Commerce Department reported the exports experienced a decline, its largest in four years.
The continuing financial crisis is a reminder to some that globalization will never achieve its full benefit without strong governance from individual nations.
“The governance gap became brutally patent with the 2008 financial crisis and its aftermath that is still with us. Although some of the root causes of the crisis could be considered strictly domestic policy decisions in the countries where it erupted, ultimately the crisis happened because the key players in the global economy failed to address significant issues stemming from the intensification of globalization, despite the fact that those issues had been identified early on as threats to international financial stability,” writes Ernesto Zedillo.
North Korea Goes Ahead With Rocket Launch
North Korea defied the international warnings by launching a long-range rocket on Tuesday. The test is as much a display of North Korean nuclear technology as it is of the bona fides of new leader Kim Jong-un.