Wow. The July US employment report was downright lousy. The headline non-farm payrolls number was disappointing, at 162,000 vs expected 185,000, (with 26,000 downward revisions to June and May), and a large part of the fall in the unemployment rate 7.4% can be explained by a resumption of the fall in those actually trying to find work.
In dramatic breaks with history, Mark Carney and Mario Draghi persuaded the Bank of England Monetary Policy Committee (BOE) and the European Central Bank Governing Council (ECB), respectively, to issue what amounted to forward guidance on the path of future monetary policy, without having to actually formally announce they had done so.
As predicted with many Asian and American politicians staying home, European leaders like punch drunk boxers who have gone too many rounds occupied centre stage, but many others seemed little interested in their troubles: the consensus at the start of the meeting, that the Euro will survive after all but Europe will be a low growth region for the foreseeable future, held.
The world economy will grow next year, but growth will be largely confined to developing nations. Their ability to grow even when developed economies are struggling has surprised economists. It means that we can be confident that fewer children will go to bed hungry next year than this year. That is something to be celebrated.