Capital Comment: China is in difficulty but it’s certainly cheap for investors July 16, 2013 ONE Chinese economist suggested on Monday that five straight quarters of growth at less than 8 per cent was “a clear sign of financial distress.” I would dare him to say the same to the Spanish Prime Minister. But the comment did come shortly after confirmation from the Chinese government that the country’s second quarter [...]
Travel money: the benefits of credit and prepaid currency cards July 16, 2013 THE PROLIFERATION of credit, debit, and prepaid currency card deals means changing holiday money is no longer a matter of simply comparing rates along the high street. While the majority still prefer to take cash with them – 60 per cent, according to research by Halifax – debit and credit card providers widely facilitate the [...]
Shrinking company lifespans signify the start of the magnesium economy July 16, 2013 BRITAIN is enduring an economic enema. Bloated and unhealthy, blockages – to consumers, to finance, to starting businesses – are being slooshed away by the disintermediating power of the internet and social media. It doesn’t feel pleasant now, but a refreshed, if mildly emaciated, economy should result. Like a triathlete, the Britain of the future [...]
JP Morgan joins Barclays and Goldman in slashing US GDP forecast July 16, 2013 JP Morgan has cut its forecast for US annual output in the second quarter of the year to one per cent from two per cent, citing the unexpected 0.5 per cent fall in wholesale inventories in May. However a reduction in the stock of unsold goods held by wholesalers in the second quarter “should imply [...]
Forward guidance in the UK is likely to fail as the Fed taper approaches | City A.M. July 15, 2013 BANK of England governor Mark Carney’s colours are firmly attached to the forward guidance mast. Following broad hints on 4 July, next month the Bank is expected to formally adopt the practice of signalling the future path of monetary policy. Forward guidance, however, is likely to fail. In a speech entitled Monetary Policy After The [...]
Political parties should not be financed with taxpayers’ money July 15, 2013 BRITAIN is sleep-walking towards the state financing of political parties. Some will welcome this: they believe that reducing parties’ reliance on trade union money (in Labour’s case) or City donors (in the Tories’) would be a good thing, as it would also diminish their influence. Yet state funding would be disastrous, even worse than the [...]
ECB’s Juncker can not exclude third loan for Greece July 13, 2013 The European Central Bank’s Jean-Claude Juncker, in an interview with MNI, has said that a third Greek loan can not be ruled out. He added that Greece was very close to a Eurozone exit in May/June 2012, but said that “Grexit” is an awful word and has disappeared.
Single resolution mechanism a positive for sovereign credit says Fitch | City A.M. July 12, 2013 Ratings agency Fitch has said that the European Commission’s proposal for a single resolution mechanism (SRM) to wind down struggling banks would be a good thing for sovereign credit, as it would reduce the costs to a single sovereign of bank failure (release). A single resolution board making “objective and balanced” decisions, it says, could [...]
The economics and culture of Murray’s Wimbledon triumph July 12, 2013 HE DID it, he did it – and a euphoric nation roared with delight, celebrating a moment many of us feared would never happen and a new, 26-year old national hero. A Brit is Wimbledon champion, and this is real life, not a Hollywood rom-com. Needless to say, Andy Murray’s triumph is about much more [...]
Morning, governor: Mark Carney takes charge at the Bank of England July 8, 2013 MARK Carney will today become the first foreign governor of the Bank of England in its 319-year history as he takes responsibility for turning Britain’s tepid economic growth into a fully fledged recovery. The Alberta-raised 48-year-old – dubbed “the outstanding central banker of his generation” by George Osborne – will celebrate Canada Day by starting [...]