German economy shrinks in second quarter as exports slump August 14, 2019 Germany’s economy shrank in the second quarter of the year as weak global demand caused exports from the former powerhouse of Europe to drop off, official data showed today. Read more: German factory production slumps in June raising recession fears Output fell 0.1 per cent quarter on quarter, the government said. The economy had grown [...]
Chinese industrial output growth slows to 17-year low August 14, 2019 China’s industrial output growth slowed to a 17-year low in July as the signs mount that the trade war with the US is beginning to take a toll on the world’s second-largest economy. The 4.8 per cent year-on-year growth in factory output was the weakest since February 2002 and far below economists’ expectations of a [...]
What was behind Friday’s National Grid outage? Network theory, not conspiracy August 14, 2019 National Grid is getting a kicking in the aftermath of last Friday’s electricity blackout. Potential explanations swirl around both social and mainstream media. The system cannot cope with too much wind-generated electricity. The Russians hacked into the computers. A puzzling aspect is that the initial shock to the National Grid was a very small one. [...]
US pulls back from applying fresh tariffs to Chinese tech goods August 13, 2019 The Trump administration has pulled back from slapping tariffs on certain products from China such as laptops and mobile phones, providing relief for jittery global investors. Read more: Tariffs hurting US manufacturers, says Trump’s ex-economic adviser At the start of the month the US announced it would apply 10 per cent tariffs to $300bn of [...]
US inflation picks up amid presidential pressure for rate cuts August 13, 2019 US inflation picked up in July as the cost of gasoline and housing rose, raising the possibility the Federal Reserve will hold back from rate cuts in the near future. Read more: Fed cuts interest rates for first time in ten years The US consumer price index (CPI) picked up to 1.8 per cent from [...]
Third of investors expecting recession as trade war fears loom August 13, 2019 More than one in three investors are forecasting a global recession in the next 12 months, marking an eight-year high as trade war worries linger over markets across the world. In the highest recession probability level since October 2011, 34 per cent of investors surveyed by Bank of America Merrill Lynch have said they think [...]
UK wage growth hits 11-year high despite shrinking economy August 13, 2019 Britons’ wages grew faster than at any time since the financial crisis in the three months to June, official figures showed today, despite the UK economy shrinking over the same period. Read more: Into the red: UK economy shrinks for first time in seven years Meanwhile, the number of UK workers without a job rose [...]
Muddy Waters says Burford has ‘same illness’ that doomed Enron August 13, 2019 Muddy Waters redoubled its assault on litigation funder Burford Capital today, accusing the company of having the “same illness” that brought Enron down. The activist shortseller accused Burford of “addiction to mark-to-model gains financed by debt”. In mark-to-model or fair value accounting, unrealised gains are included on a company’s balance sheet. Muddy Waters said: “We [...]
Global stock markets spooked by Hong Kong and Argentina August 13, 2019 Global investors are having a nervous morning as unrest in Hong Kong drags down Asian stocks and market turmoil shakes Argentina. Read more: Asian stock markets fall as embattled Hong Kong leader urges calm European stock markets have followed their Asian counterparts downwards. The German Dax index was 0.5 per cent down in early trading, [...]
Recession fears as gold price hits more than six-year high August 13, 2019 The price of gold hit a more than six-year high this morning as investors looked for a safe haven for their money amid protests in Hong Kong and fears of a crash. Spot gold prices were up 1.2 per cent by around 8.30am to $1,523 per ounce. Read more: Gold hits five-year high on dovish [...]