Inflation: an undemocratic stealth tax October 18, 2011 INFLATION is taxation without legislation, as Milton Friedman, the Nobel prize winning economist, once said. He was spot on. Yesterday’s figures were truly appalling: inflation on the retail price index measure hit 5.6 per cent, the fastest rate for 20 years. On the official consumer price index measure, it reached 5.2 per cent. Over the [...]
WHAT THE OTHER PAPERS SAY THIS MORNING October 18, 2011 FINANCIAL TIMES FRANCE WARNS OVER EURO CRISIS France has warned that European unity would be at risk if Eurozone leaders failed to take bold action to tackle its sovereign debt crisis at a crucial summit this weekend. President Nicolas Sarkozy said leaders will take “very important decisions in the coming days” and said the destruction [...]
Charter boss in 3-year deal October 18, 2011 CHARTER International gave its chairman Lars Emilson a three-year extension to his term in June, just five days before Melrose submitted its first takeover bid, it emerged yesterday. The unusual arrangement could cause headaches for Charter’s buyer Colfax, even though Emilson remains on a one-month notice period and the same terms and conditions apply as [...]
Bernanke urges bubble bursting October 18, 2011 Federal Reserve chairman Ben Bernanke said yesterday that central banks may need to resort to monetary policy to combat asset bubbles, although regulation should be a first line of defence. “The possibility that monetary policy could be used directly to support financial stability goals, at least on the margin, should not be ruled out,” he [...]
Groupon set for float roadshow October 18, 2011 Discounting website Groupon is planning to launch its IPO roadshow on Monday or Tuesday, sources said last night. The float is expected to value the daily deals site at more than $10bn (£6.36bn) and is likely to be in the range of $11bn to $12bn. Groupon filed for an IPO of up to $750m in [...]
Accounting gains prop up BoA earnings October 18, 2011 BANK of America/Merrill Lynch (BoA/ML) reported a dramatic rise in profits yesterday, with earnings rising from a $5.9bn (£3.75bn) loss last year to $7.4bn in pre-tax profit for the third quarter of this year. However, $1.7bn of the profit figure was due to an accounting gain that has also affected the results of other US [...]
CFTC approves plans to crackdown on spectators October 18, 2011 THE US pushed through its toughest measures yet to curtail speculation in commodity markets in a tight vote yesterday, likely shifting the focus of a fierce four-year debate from the regulators to the courts. In a measure decried by Wall Street and trading companies as a misguided political attempt to cap soaring oil and grain [...]
EU reaches deal on naked short selling ban law October 18, 2011 THE EU agreed last night to ban naked credit default swaps (CDS) on sovereign debt in an attempt to curb what some policymakers see as hedge fund bets on the Eurozone crisis. The measure had been deadlocked for months because of a split between the European Parliament and EU states, which have joint say. The [...]
Italy’s banks facing higher funding costs October 18, 2011 STANDARD & Poor’s downgraded 24 Italian banks and financial institutions last night, citing renewed “market tensions” and lower growth prospects. It also raised the risk assessment on Italy’s banking industry from group 2 to group 3, which could prompt higher borrowing costs. Meanwhile jittery investors moved out of French bonds yesterday. The move was prompted [...]
World’s largest exporter suffering from contraction in global demand October 18, 2011 WHILE China’s 9.1 per cent growth recorded for the third quarter of the year may have disappointed analysts — with some still questioning the reliability of the government’s uber-fast estimates — it is little surprise that the world’s largest exporter is facing a hit from the global economic slowdown. The third quarter involved two months [...]
