Daily Archives: February 19, 2019

European Parliament elections—battle for ‘Europe’s soul’?

The European Parliament election campaign is entering full swing—a detailed analysis of the platforms of the main European party groups and what the political consequences might be for the EU over the next five years.
By Miriam Sorace – In his speech at the December congress of the Party of European Socialists, Frans Timmermans, the current lead candidate for the PES, defined these elections as being about ‘the soul of Europe’. Eurosceptic forces made important gains in the 2014 election and are set to increase their seat share again in the upcoming one.

Overtly pro-European forces also seem set to make important gains in electoral support, and new pro-European forces are also forming (for example, the Italian More Europe party or the pan-European Volt). As overt position-taking over EU institutions and powers starts to even up (while in the past it was monopolized by anti-EU actors), we may be finally entering the era of EU political contestation.

Rocked by forces that want, respectively, less and more Europe, the 2019 election results have thus the potential to define the nature of the EU for years to come.

The member states are still responsible for the running of European Parliament (EP) elections, but national parties (especially the more established ones) will signal their Euro-party or European Party Group (EPG) affiliation during the campaign. EPGs are ‘umbrella organizations’ joined by ideologically-similar national parties to coordinate their EP activities.

Some EPGs are well-oiled machines, such as the European Peoples’ Party (EPP) and the Socialists and Democrats (S&D, formerly PES)—founded, respectively, in 1976 and 1973. Others are of very recent establishment, such as the Europe of Nations and Freedom (ENF) group, created by radical-right Eurosceptic parties in the aftermath of the 2014 elections. Being part of an EPG has its advantages: it makes it easier for a national party to get rapporteurships, speaking time and committee chairmanships (as well as funding for administration/staff). more>

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Updates from Chicago Booth

What causes stock market crashes, from Shanghai to Wall Street
By Michael Maiello – The Shanghai Stock Exchange reached a historic peak in June 2015, and then plunged, losing almost 40 percent of its value in a month. This crash of the world’s second-largest stock market evoked comparisons to the 1929 Wall Street collapse, and provided a laboratory for testing an enduring explanation of its causes.

It has long been theorized that the 1929 crash reflected “leverage-induced fire sales,” according to University of International Business and Economics’ Jiangze Bian, Chicago Booth’s Zhiguo He, Yale’s Kelly Shue, and Tsinghua University’s Hao Zhou. They acknowledge that the theory has been well-developed to explain how excessive leverage makes investors sell in emergency conditions, accelerating market crashes. But they suggest that, until now, the empirical research has been lacking—and the China crash finally offers empirical evidence.

The researchers analyzed account-level data for hundreds of thousands of investors in China’s stock market. Because leverage was introduced in mainland China only in 2010, Bian, He, Shue, and Zhou were able to examine the implications of leverage-limiting regulations imposed in this decade. During the first half of 2015, there were two sources of leverage for Chinese investors—regulated brokerage houses and nonregulated online lending platforms. The latter, along with other nonbank lenders such as trust companies, formed the shadow-banking industry in China. The researchers thus studied the effects of each type of borrowing. more>

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Updates from Ciena

Pluggables: Their role in coherent technology evolution

By Patricia Bower – In the optical networking industry, pluggable client optical modules are a dominant trend for very short links within buildings and campus networks. Market economics that have driven the proliferation of these pluggables include factors such as simplicity, interoperability and volume-driven cost. And in the domain of short-reach (sub-10km), point-to-point fiber optic connections, the advantages listed above for using small form-factor, pluggable modules shine through.

This is particularly so in the case where transport of high-speed Ethernet client signals is the primary requirement. Connectivity within and between data centers has grown at a very rapid rate over the last few years, both from the perspective of transmission speed and number of connections. The use of optical signaling to transport these high-speed Ethernet signals has proven to be very efficient.

The optical networking industry has a well-established and large ecosystem of vendors bringing small form-factor client modules to market. Many of these are supported by MSAs (Multi-Source Agreements) which can be one of two types; those that define optical transmission specifications and those that define mechanical forms.

More recently, the data rates supported by pluggable form factors have increased.  The 100G Lambda MSA group, of which Ciena is a member, has exhibited live demonstrations of interoperable Ethernet modules from member companies.  The 100G Lambda MSA specifies 100Gb/s over 2km and 10km of single-mode fiber (SMF), and 400 Gb/s links over 2km of SMF.  These modules will be based on the use of PAM-4 coding to get to a data rate of 100Gbps per wavelength. more>

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Faith and Religion in Public Life Are Not Replacements for Reform

By Chayenne Polimédio – Last week, religious leaders, humanitarians, and politicians came together at the Hilton Hotel in Washington, D.C., for a fellowship breakfast “in the spirit of Jesus.” The National Prayer Breakfast, held every year since 1953, is one of those moments—now rarer by the day—when political strife and division ostensibly take a back seat to prayer, calls for unity, and reminders of our shared identities. It’s also a reminder of how faith and public life are intertwined in a country where 70 percent of the population is Christian, and where the public’s trust in the church has always been greater than its trust in government.

But one need only think about recent headlines detailing a racist attack, a homophobic remark, or even broader political pettiness to question the extent to which the breaking of bread is enough to overcome the record-breaking level of division in American democracy.

The National Prayer Breakfast, in other words, is a reminder not of what kinds of positive changes faith is able to effect in public life, but of the kinds of changes it isn’t able to bring about. more>