The euro is one reason why European business executives are calling on the European Central Bank and its president, Wim Duisenberg, to reduce interest rates. There is a difference in perspective between the Bank and businessmen and politicians. The Bank is concerned that inflation has remained above its two percent reference ceiling for ten straight months. Even though inflation remains a concern for the ECB, executives and politicians think ebbing growth is a bigger worry.

The ECB is the new kid on the central bank block, and like all other central banks, covets its independence. The last thing that it wants is to be seen reacting to Federal Reserve moves. The ECB's focus is on inflation and as such, its two "pillars" of monetary policy remain above their targets. Still, the persistent weakness of the euro is not only a business matter it is about the credibility of the European economy. A strong currency mirrors a strong economy as the saying goes.

On the other side of the world, the leadership crisis in Japan hopefully will resolve itself Tuesday when a prime minister is picked. Key economic data will be released this week that will tell us more about the economy's condition. Similarly, the next two weeks will reveal quite a bit about the strength of the economies of Europe, Britain, Canada - and of course, the United States.

Introduction   •   Global Stock Market Indexes   •   Recap of Global Markets   •   Currencies   •  Indicator Scoreboard

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