Ten golden rules of investing September 24, 2012 Some industries produce more economic profit than others. How much economic profit a sector or industry tends to produce is often a function of how difficult it is to enter. High entry barriers can therefore provide a sustainable competitive advantage for incumbents. Take banking. Unlike retailing or steel manufacturing, there are all sorts of obstacles [...]
After German business confidence fell for the fifth month, is the euro crisis about to return? September 24, 2012 YES Ferdinand Fichtner The Eurozone is already in the middle of a recession. Production has declined since the summer of 2011 and unemployment rates are increasing in almost all euro members. In the last quarter, Germany was the only country that had a relatively solid growth record. But, looking forward, the picture remains gloomy. Growth [...]
Rapid Responses September 24, 2012 Shale gas potential [Re: Britain needs to embrace the global shale gas revolution, Friday] Allister Heath is right that shale gas has had a huge impact on the US energy sector, with a resultant impact on the economy. However, he fails to stress the adverse environmental impact of certain hydraulic fracturing or “fracking”. The Royal [...]
Hesitant Spain is afraid to pull bailout trigger September 24, 2012 HOW quickly sentiment can change. Last week, traders were triumphantly jubilant after central banks poured liquidity into markets. If price reflects all known information, you would have thought that the world’s financial ills were cured. This week, the focus is back on growth, or to be more specific the lack of it. Although Spain’s Ibex [...]
Bank intervention makes risk management critical September 24, 2012 FX360 CENTRAL banks have never been averse to interventionist strategies. But the approach has certainly fallen from favour – and in spectacular fashion – on a couple of occasions in recent memory. Just over twenty years ago, the UK was desperate to stay within the European Exchange Rate Mechanism (ERM), a system that required each [...]
THE TIPSTER | Rebuilding dominance September 24, 2012 AS TALK of a housing recovery gains momentum, investors may be looking to add growth-orientated stocks to their portfolio. Persimmon has seen tough times since the onset of the financial crisis, with shares falling from their peak above 1,500p. However, the house builder has added 67 per cent to its share price this year and [...]
Traders fear nervous consumers September 24, 2012 THE link between the willingness of a consumer in Indianapolis to go out and buy a new car and the volatility of an exchange-traded derivative may not be immediately obvious. But, in a world where central banks have long since abandoned traditional monetary policy, interest rates are at rock bottom, and the US Federal Reserve [...]
Analyst picks for 25 September 2012 September 24, 2012 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Long Australian dollar-dollar Expertise: Fundamental and technical analysis Average time frame of trades: A few hours to a few days A descending trendline from the highs of 9 August and 23 August has kept the Australian dollar-dollar pair supported over the past four days. A base could now be [...]
Duck & Waffle doesn’t have the greatest kitchen in the world but the views are ace September 24, 2012 RESTAURANT DUCK & WAFFLE Heron Tower, 110 Bishopsgate, EC2N 4AY FOOD ** SERVICE **** ATMOSPHERE ***** Cost per person without wine: £44 MY HOUSE is what estate agents would euphemistically call “lower ground”, which translates almost exactly as “basement”. Outside the front door, running underneath the pavement, is a cupboard, which would, once upon a [...]
London’s bespoke hidden gems September 24, 2012 There are not many hair salons that have a porter greet you at the door, but then Rossano Ferretti is not your average salon. In fact it doesn’t even call itself a salon, but adopts the label “hairspa”. This is not meant to be your usual run of the mill trip to the hairdresser. Number [...]
