Bearish Barclays economists foresee more trouble in China in their quarterly Global Outlook report November 12, 2015 "Curb your enthusiasm" was the message from Barclays economists, who doubted how long China's recovery could be sustained, and warned of "significant" disruption risks in their quarterly Global Outlook report. Christian Keller, head of economics research at Barclays, questioned how long China's rebound would last, saying he expected "further weakening activity" as underlying problems in the real estate [...]
India isn’t the new China – but Indian Prime Minister Narendra Modi’s UK visit is worth exploiting November 11, 2015 In 2010, David Cameron chose Bangalore for one of his first transcontinental visits as Prime Minister, promising that taking the economic relationship between India and Britain “to the next level” was a political priority. Since then, bilateral trade, investment and banking have shrunk relative to the size of the two countries’ economies. Both nations have [...]
Divergent monetary policy from the European Central Bank and the US Federal Reserve sends euro to seven-month low against the dollar November 10, 2015 The euro fell 0.6 per cent against the dollar to $1.0682, sliding to a fresh seven-month low against a backdrop of increasingly divergent monetary policy from the European Central Bank (ECB) and US Federal Reserve. Yesterday four ECB government council members hinted a consensus is forming at the Bank to take one of its benchmark interest rates deeper into negative [...]
Easy does it: How to find value in the new normal November 10, 2015 October's relief rally in equity markets should have provided just that – relief. The trouble is that, with positions washed out, sentiment still fragile and macro data still mixed, few participated fully in the move and many simply didn’t believe in it. Many commentators – bullish and bearish alike – appear very happy to [...]
Governor Mark Carney: The out-of-touch boyfriend – CNBC Comment November 10, 2015 The only thing worse than an “unreliable boyfriend” is one who relentlessly aims to please but fails to understand what his partner really needs. Despite his best intentions, he disrupts the relationship through an improper assessment of the situation at hand. Meet the “out-of-touch boyfriend”. The latter label arguably became a more apt characterisation [...]
Wall Street slips on China crisis worries – New York Report November 9, 2015 WITH Wall Street bracing for an interest-rate hike and fretting about weak Chinese trade data the S&P 500 index yesterday suffered its worst loss in six weeks. The Dow Jones industrial average ended down one per cent at 17,730.48 points and the S&P 500 lost 0.98 per cent, to 2,078.58. The Nasdaq Composite dropped 1.01 [...]
Equities may not survive aggressive dollar – eToro Tips & Picks November 9, 2015 There is only one place to start this week, and that’s the jobs report. Given all the attention on last week’s stellar non-farm payroll report, however, many have overlooked the average earnings reading, despite it being far more important at this point in time. It now looks likely that Janet Yellen will increase interest [...]
Retailers in focus as season winds down – New York Report November 8, 2015 A cloud of pessimism may have burned off for many investors on a bright October US jobs report on Friday, but much of the global economy – including China, which not long ago was a top worry for the US Federal Reserve – remains vulnerable. With markets having swung in just a few weeks from [...]
San Francisco Federal Reserve bank president John Williams says interest rate rise “makes sense” November 8, 2015 A top US central banker has said that a gradual increase in interest rates should be the "next step" if the country's economy continues to improve as expected. "I do think it makes sense to gradually remove the policy of accommodation that helped get the economy to where we are," San Francisco Federal Reserve Bank President [...]
China’s exports and imports fall sharply in October November 8, 2015 China's trade dropped sharply in October, adding weight to fears that the world's second largest economy is slowing more quickly than previously thought. The General Administration of Customs said today that October exports fell 6.9 per cent from a year ago, dropping for a fourth month, after a 3.7 per cent dip a month earlier. Meamwhile imports slipped [...]