Showing posts with label September. Show all posts
Showing posts with label September. Show all posts

Tuesday, April 23, 2013

Political Prediction: Merkel Loses Chancellorship in September as Support for AfD Soars

Now that we have an Understanding German Political Parties let’s consider some scenarios from reader Bernd who lives in Germany about how the election on September 22 plays out.

In past elections, as many as 40% of the eligible population did not vote. This brings a very large pool of voters that may turn out for the anti-Euro AfD party.


Bernd comments “All indications show that AfD has a huge potential to convert nonvoters to voters. If election turnout is high, seats in Parliament may look drastically different than today.


For the past two weeks I have been watching the iPhone app Wahl-O-Meter and AfD has risen from 5% of the vote to 6.6% now.



Not only has AfD been rising, but today is the first day I have seen AfD above Die Linke. In the same timeframe, support for FDP has been sinking.


FDP is right on the bubble, polling 5% down from 5.4% or so. It takes 5% of the vote to stay in parliament.


This is significant because FDP currently has the third largest representation in parliament and is the junior partner in Merkel’s existing CDU/CSU/FDP coalition. The very real danger to Merkel is FDP goes to zero percent representation.


In theory CDU, CSU, and SPD could easily form a coalition that totals over 50% of parliament. However, the SPD political party leadership has ruled out a coalition government that includes Merkel as chancellor.


AfD Support Rises to 19% in Handelsblatt Online Poll


Via Google translate, please note 19 percent would vote for the anti-euro party.

The new anti-euro party alternative for Germany (AFD) has a good chance to collect in autumn in the Bundestag. The result of a representative survey of online market research company market research on behalf of Handelsblatt Online. 19.2 percent of the 1,003 respondents affirmed therefore the question of whether they would give the party their vote in the general election (24.9 percent of men and 14.8 percent of women).

54.6 percent of respondents (56.7 percent of men, 53 percent of women) would not choose the AFD on the other hand, 26 percent of respondents stated that they have not made a choice decision (18.4 percent of men, 32.2 percent of women).


Their greatest potential voters, the party in the 46 – to 65-year-olds: 23.1 percent of this age group, the AFD would give their vote (in the 31 – to 45-year-olds: 19.3 percent among 18 – to 30 – year: 14.2 percent).


Online polls are notoriously inaccurate, so the key takeaway is continually rising interest.


A few weeks ago many news agencies were stating AfD would not reach the five percent threshold. Bernd and I think 12% or more is easily achievable.


With that backdrop out of the way, let’s take a look at reader Bernd’s speculative estimates for the September election.


Bernd’s Speculative Estimates


  • CDU/CSU: 36%

  • SPD: 23%

  • Grünen: 13%

  • AfD: 12%

  • Die Linke: 06%      

  • FDP: 04%

  • Piraten: 03%

  • Others: 03%

Should that scenario or any close approximation play out, it will be quite difficult for Merkel to stay in power.


A “natural coalition” between CDU/CSU and AfD could in theory work, and it might not take 50% of the popular vote to form such a coalition on account of the parties losing representation. Yet, even in such scenario, the price to pay for CDU/CSU would likely be Merkel’s chancellorship.


Bernd outlines four possibilities


Four Possibilities


  1. SPD, CDU, CSU form a coalition in which Merkel steps aside or is forced out.

  2. SPD forms a coalition with half term Merkel (CDU) and half term Steinbrück (SPD) as chancellor.

  3. The politics splinters as happened in Italy with unknown effects for the coming government.

  4. CDU/CSU and AfD form a coalition under a new and unknown chancellor. Together they reform EU politics.

Bernd states option four would be ideal but right now such a possibility is wishful thinking as opposed to a strong likelihood.


Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com


Mish’s Global Economic Trend Analysis




Political Prediction: Merkel Loses Chancellorship in September as Support for AfD Soars

Monday, April 22, 2013

Fed"s Dudley urges Europe banking union, warns on economy



William Dudley, President and CEO of the Federal Reserve Bank of New York, speaks during the Asia Society and Economic Club of New York luncheon, in New York, September 24, 2012.


Credit: Reuters/Chip East




Reuters: Economic News




Fed"s Dudley urges Europe banking union, warns on economy

Friday, April 5, 2013

Is It Beginning? Biggest JGB Price Collapse In Over 10 Years Triggers TSE Circuit Breakers


Just over 4 hours ago we discussed the stunning collapse in 10Y Japanese bond yields. Since then – things have taken a very dramatic turn for the worse for bonds. 10Y JGB yields have exploded higher. The move from 32bps to 59bps triggered circuit breakers on the Tokyo Stock Exchange in JGB Futures trading as JGBs dropped by their largest amount since September 2002. We can only imagine there is liquidations galore occurring given the massive outsize moves we are seeing in Japanese bonds, stocks, FX, swaps, and CDS. Did the BoJ just lose control?


 



 


 



 


Charts: Bloomberg





    




Zero Hedge




Is It Beginning? Biggest JGB Price Collapse In Over 10 Years Triggers TSE Circuit Breakers

Friday, March 8, 2013

What"s Next for Italy? No Working Government for 7 Months, Then Elections in September

Pier Luigi Bersani has twice ruled out the possibility of a grand coalition with Silvio Berlusconi’s centre-right coalition, and Beppe Grillo’s Five Star Movement wants no part of overtures from Bersani.

There is insufficient support for another technocrat. So, the logical conclusion is new elections are forthcoming. But when?

Reader “AC” who is from Italy but now lives in France explains …

Hi Mish,

Now that elections are over and declarations have been made by the three major party leaders, we can look at what’s ahead for Italy. In a nutshell: It’s highly likely that no empowered government will be in charge for six months or longer, and in September Italy will be voting again.

The first session of the Parliament will take place on 3-15. By 3-20, the presidents of the Chamber and Senate will be elected. The President will then meet with parliament groups to see if a government can be formed. Based on statements made by the key political parties, no grand coalition is possible.

By 4-15 the Parliament will seek to elect a new President because the mandate of Napolitano expires on 5-15 and Napolitano has already said he will not accept another term. Outgoing presidents at the end of their term are forbidden by the constitution to call new elections. Therefore, Italy has to wait for the new president to be elected. This process may take until the end of May.

It is unlikely that the first act of a newly elected president would be to dissolve the Parliament without any attempt to merge some sort of temporary solution. Look for the new President to seek another technocrat PM who can garner enough support in parliament. Garnering sufficient support in parliament for another technocrat PM also seems impossible. The only choice left would be to call new elections.

The problem is that at this point we will likely be at the middle of June. A new election could take place at the end of July or mid-August, but that is the middle of the summer holiday season. I think very unlikely that a President will call elections during that period. So, the earliest month that elections would likely take place is September (with an electoral campaign in August, not exactly the right month for that either).

The end result is likely to be a delay of at least 6 months, without a real government able to make significant decisions in the interim.

Matteo Renzi, the Mayor of Florence, may be a game-changer in the next elections. I believe he will be the next PM candidate for the Center-Left. A lot of people thinks that if Renzi had been the Center-Left candidate things would have been much different.

Let’s see.

Regards

AC

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com

Mish’s Global Economic Trend Analysis


What"s Next for Italy? No Working Government for 7 Months, Then Elections in September