MORNING BRIEFS

*Volcker and Obama: The honeymoon is over
U.S. economic leadership is declining, Volcker says
The U.S. is seeing its leadership in economic affairs decline as emerging markets such as China grow in importance, said former Federal Reserve Chairman Paul Volcker. "I would like to think that given the history of the past, given the strength, actual and potential of the American economy, we can still provide a kind of indispensable element of leadership here," he said. "But it's not going to be dictatorial, I'll tell you that." He also warned that economic recovery will be slow because consumer spending and construction will take a long time to improve. Bloomberg (29 Sep.)

*the connect is still connected
Asian stocks mostly higher after Wall Street rallyAsian-Pacific markets mostly gained Tuesday after a rally on Wall Street the day before. Japan's Nikkei 225 and South Korea's Kospi Composite increased 0.9%. Australia's S&P/ASX 200 rose 1.6%, Hong Kong's Hang Seng Index climbed 2.1% and Taiwan's Taiex advanced 2%. New Zealand's NZX 50 went up 0.8%, Singapore's Straits Times Index added 1.6% and China's Shanghai Composite slipped 0.3%. The Wall Street Journal (29 Sep.)

*Icelands problems are not that far off our own people
Iceland suffers in aftermath of banking crisis
Iceland's output is expected to contract by 9% this year, after a banking crisis that forced the government to seize the nation's three largest banks. Unemployment is forecast to rise to 10%, and 15% to 20% of households have troubled loans. Interest payments are so onerous that a two-week repayment strike by families will take place. The Guardian (London) (28 Sep.)

*as if these guys know something I don't?
Pimco's El-Erian: Outdated thinking threatens world economy
The world has changed, but the way investors and government policymakers think has not, warns Pimco CEO Mohamed El-Erian. "We have left the global growth regime that was driven primarily by debt-finance consumption in the U.S., but we have not as yet reached a position of more balanced, albeit anemic, growth," he writes. "Those who lack a robust anchoring framework, be they investors or policymakers, risk being misled and backtracking to outdated ways of thinking." Financial Times (tiered subscription model) (28 Sep.)

*China is not going to be the New World Order of things without a fight
Trade dispute looms in Europe regarding Asian shoes
The European Commission is considering extending tariffs on shoe imports from China that have been in place since 2006. The extension would continue a 16.5% duty on Chinese shoes and a 10% tariff on Vietnamese footwear. A World Trade Organization battle about the tariffs is likely, as well as a push from European shoe manufacturers for compulsory labeling of the country of origin. The Times (London) (29 Sep.)

*pretty soon we will all be speaking Chinese. Ok by me, Rosetta Stone is in my corner!
Chinese insurers plan real estate investments
A law coming into effect Thursday in China will allow insurers to invest in real estate at home and abroad. China's largest insurer, People's Insurance Company of China, is already planning investments, as are other state-controlled insurance companies. Insurers will spend $34.6 billion on domestic real estate if they invest 15% of their total assets, according to a report from property company Jones Lang LaSalle. China Daily (Beijing) (29 Sep.)