German voters won’t bankroll peripheral profligacy forever September 6, 2011 WHILE Greece and Italy continue to take a hammering in the bond markets, traders are today shifting their gaze to Germany, as its constitutional court decides on whether the bailouts are legal. Under article 103 of the Maastricht Treaty, “neither the Community or any other member state is liable for or can assume the commitments [...]
Not the end of the line for capitalism September 6, 2011 SAU, £20 Alex Singleton YOU might be forgiven for thinking that another book on the financial crisis was unnecessary. After all, Gordon Brown has already written a comprehensive tome. You know, the one in which he forgets about all the mistakes he made with regulation, congratulates himself for saving the world, and bangs on about [...]
The global capital market still changes lives September 6, 2011 THE pharaohs built their pyramids, gigantic tombs to propel themselves into a divine afterlife, colossal and as pointless as they were pointed. The Romans were more practical, and concentrated on useful things like aqueducts and roads, but which still served to remind the common people as they were using them of the greatness and superior [...]
FTSE at two-week low over poor data September 5, 2011 BRITAIN’S top share index was left nursing heavy losses yesterday after service sector data from China, the Eurozone and the UK intensified concerns the global economy is facing another recession. The FTSE 100 index ended down 189.45 points, or 3.6 per cent, at 5,102.58, its lowest close since 22 August, as global growth in services [...]
Eurozone worries dent bank shares September 5, 2011 EUROPEAN stocks tumbled four per cent yesterday, with banks plumbing a more than two-year low, as fears for the future of the Eurozone bubbled up against a background of weak economic growth and threats to the banking sector. The euro fell across the board, with peripheral Eurozone debt concerns and political uncertainty in Germany prompting [...]
UK’s economic outlook is increasingly weak September 5, 2011 THE UK’s economy is sick and the cheap fix of quantitative easing (QE) is being touted as the cure. The broad consensus was that yesterday’s Markit/Cips services purchasing managers’ index (PMI) was going to come in at around 54.0. It instead dropped off a small cliff, declining from 55.4 in July to 51.1 in August. [...]
HOPES OF QE3 CAN’T DISPEL THE US GLOOM September 5, 2011 AT THE beginning of last week, investors appeared to have regained their risk appetite. Although trading volumes were light, equities continued their recovery following the sharp sell-off in early August. As we approached month-end, buyers appeared confident that a near-term bottom for the major stock indices was in place. Yet most economic data releases continued [...]
Why platinum and gold are two very different beasts September 5, 2011 FOLLOWING the meteoric rise in gold prices, the yellow metal is now trading at a premium to platinum, reversing the usual pattern. Spot gold was at $1,900.30/oz yesterday, with platinum at $1,885/oz. Because of this, many are suggesting that platinum is underpriced. But a comparison with gold may not be the best method of valuation. [...]
THE TIPSTER September 5, 2011 THE threat of Federal Housing Finance Agency (FHFA) lawsuits from the US is certainly hammering banks and with Barclays being very much on the Agency’s hit list, the stock has been tumbling in London over recent days. However, heavyweight investors have shown conviction in the bank in the past, so is there any reason to [...]
The rise of the Indian superpower September 5, 2011 1 INDIA IS BECOMING A HARD POWER India used to be a leading member of the Non-Aligned Movement. Until 1991, its foreign policy was marked by a refusal to enter into military agreements with major powers. The collapse of India’s closest ally, the Soviet Union, forced Delhi to change its position and seek a rapprochement [...]