Asia inflation may hit growth January 26, 2011 CHINESE inflation is structural and risks derailing the global economic recovery, according to a quarterly inflation report by business consultancy McKinsey. The report, released at the start of the World Economic Forum in Davos, warns leaders that China is in danger of overheating and causing major disruption to worldwide demand. “The entire system is now [...]
UK must cut public deficit January 26, 2011 BRITAIN must stick to its deficit reduction plan, the head of the Organisation for Economic Co-operation and Development (OECD) said yesterday, speaking from Davos. Asked if Tuesday’s negative GDP figures should prompt a rethink of the deficit cuts, secretary general Angel Gurria piled support on David Cameron’s coalition government. “No, they should stay the course,” [...]
US growth to accelerate yet Europe still vulnerable January 25, 2011 EUROPE needs to strengthen its financial rescue fund to reduce the risk of renewed global instability, the International Monetary Fund (IMF) said yesterday. But US tax cuts and buoyant emerging economies are helping propel the recovery elsewhere, the IMF said in its world economic outlook, published at the start of the summit in Davos. The [...]
IMF raises global growth forecast January 25, 2011 The International Monetary Fund expects global economic growth in 2011 to be just slightly slower than last year’s rate of 4.75 per cent, its deputy managing director said on Monday. “I can confirm 2011 global growth is expected to be only slight slower than 4.75 (per cent) last year,” IMF first deputy managing director John [...]
THE FLOW OF HOT MONEY CONTINUES January 24, 2011 CFD MARKET STRATEGIST, GFT INFLATIONARY expectations are picking up across all major economies. Rising commodity prices are presenting difficulties everywhere, but are particularly problematic for developing countries. Brazil raised rates last week and warned that additional tightening was likely. Annual inflation there is just shy of 6 per cent and their latest 50 basis point [...]
European shares lifted on the back of miners and drug firms January 24, 2011 EUROPEAN shares edged up yesterday, as heavyweight miners rose on strong metals prices and defensive drugmakers and tobacco firms gained on concerns over the impact of rising inflation on growth prospects. Gains, however, were kept in check by falls on the German DAX index, as sentiment was hit by data showing a drop in German [...]
Sarkozy calls for regulation January 24, 2011 WITH global food prices rising, French President Nicolas Sarkozy called for stronger regulation of commodity markets yesterday. His comments came on the eve of the Davos summit, as economists decide how best to respond to food inflation. The world risks food riots and weaker growth if leaders fail to act, Sarkozy told 300 diplomats and [...]
China records double-digit GDP growth January 20, 2011 CHINA’S economic boom shows few signs of abating, with growth for the fourth quarter of 2010 soaring past forecasts, it was revealed yesterday. And while inflation slowed in December it remains high enough for officials to tighten monetary policy, some economists have said. The Chinese economy expanded by 9.8 per cent year-on-year in the three [...]
Saving up your coppers in the vault January 20, 2011 IN JOSEPH HELLER’S modern classic, Catch 22, the entrepreneurial mess officer Milo Minderbinder seizes the opportunity to buy up the entire Egyptian cotton crop. The result is a disaster – Milo finds himself unable to sell the cotton to anyone. After trying to turn it into food, eventually he unloads it onto the government. Today [...]
FTSE mining and auto stocks hit by China tightening fears January 20, 2011 BRITAIN’S top share index sank to its lowest closing level in more than five weeks yesterday, weighed down by mining stocks on concerns over potential further monetary tightening by China and its impact on demand. The FTSE 100 closed down 108.79 points, or 1.8 per cent, at 5,867.91, its lowest close since December 13. Miners [...]