Trade deficits and tariff wars: Rows to get worse before they get better March 20, 2018 In 2016 the US ran a deficit of $505bn on trade in goods and services, according to the World Bank. Germany ran a mighty surplus of $277bn on her trade, whilst China sold $250bn more goods and services than it bought from the rest of the world. Some economists see this as good news for [...]
Holiday Homes: Savills World Research looks at the top places in the world to invest in residential property right now March 16, 2018 Many residential markets are now resting on an expensive but stable ‘high plateau’, so buyers are looking for the next up-and-coming ‘global hotspots’. They are faced with some unfamiliar choices. World city house price growth hasn’t just been high in the UK. London’s mainstream residential price grew by 48 per cent since 2012, but this [...]
Rihanna roils markets as China bags a key element March 16, 2018 Garry White, chief investment commentator, looks at the market moving events that have shaped the UK equity markets this week (March 12 to March 16, 2018). This week, Barbadian singing sensation Rihanna managed to wipe $1bn off the valuation of tech group Snap, the Chinese secured a major cobalt deal to help it produce electric [...]
The EU is about to flex its muscles with Britain and the US March 12, 2018 Military historians the world over have observed the folly of trying to fight a war on two fronts. It didn’t work for Hitler, or for the great military tactician Napoleon. Yet this is the position the European Union (EU) now finds itself in. Not only must Brussels contend with a partner determined to break away, [...]
There can be no winners in a trade war March 8, 2018 Today, the European Central Bank’s (ECB) Governing Council meets to set monetary policy for the Eurozone. But any hopes there may have been among those of a more hawkish persuasion – particularly in Germany – that the ECB might tighten its monthly bond buying programme further have been all but crushed. Despite the Eurozone’s economy [...]
The rest of the world must fill the void left by Donald Trump’s protectionism March 8, 2018 It has been a turbulent week for those of us who believe in international collaboration. Populist candidates have mopped up the votes in the Italian elections, and with the proposed introduction of US import tariffs on steel and aluminium and the resignation of Trump’s pro-trade economic adviser Gary Cohn, “America first” has successfully made the [...]
DEBATE: Is there any justification for Trump’s decision to impose tariffs on steel imports? March 5, 2018 Is there any justification for Donald Trump’s decision to impose tariffs on steel imports? David Vance, a political commentator, says YES. The decision by President Trump to impose a 25 per cent tariff on imported steel is both reasonable and timely. The US steel industry has been decimated over several decades, not least from 2001 [...]
RIT Capital’s ‘preservation mode’ lags strong market March 5, 2018 RIT Capital is an investment trust with a broad portfolio of assets. By owning a diverse range the overall aim is to beat inflation while limiting the ups and downs usually associated with investing in the stock market. Shares make up the core, represented by managed funds and some individual stocks, and this is supplemented [...]
The Crown Prince’s UK trip shows Saudi means business March 5, 2018 The arrival of Saudi Crown Prince Mohammed bin Salman this week presents a unique opportunity for our two countries to usher in a new era of trade and investment. Relations between these nations have considerable history. Saudi Arabia and Britain have enjoyed a close friendship dating back 100 years. What makes the timing of Prince [...]
Beware the real Beast from the East: Chinese tech giants March 5, 2018 The last week has seen the UK battered by the worst snow we’ve seen in years, thanks to freezing temperatures coming from the east. But cold weather and heavy snow is not the only thing that is making the move from east to west. Chinese tech giants Alibaba, Tencent, Baidu and JD.com have started to [...]