Here’s why oil and gas won’t be the casualty that follows mining February 7, 2014 Despite mounting investor concern that the oil and gas sector could be “the new mining”, Berenberg doesn’t harbour such concerns. Depressed emerging markets, particularly the slowdown in China, slumped gold prices and worry over Fed tapering plans has meant an embattled time for miners. And while some of the world’s biggest oil companies have recently [...]
The ECB’s toolkit looks worryingly limited for tackling euro malaise February 6, 2014 THE CLAMOUR for further monetary easing from the European Central Bank (ECB) has become almost deafening. Despite this, the ECB yesterday decided to hold its interest rate at 0.25 per cent. As one journalist at ECB president Mario Draghi’s press conference griped, “Why won’t you simply cut rates!?” There are two fundamental reasons why the [...]
Letters to the Editor – 07/02 – Spillover effects, Charity lobby, Best of Twitter February 6, 2014 Spillover effects [Re: Global growth has peaked for now – but no need to panic, Wednesday] We’re all talking about the spillover effects of US monetary policy on emerging markets at the moment, but consider the situation over the next five to ten years. Governments across the West will surely embrace rising prices as a [...]
Markets calm as funds predict return to health February 5, 2014 CITY fund managers yesterday backed struggling emerging markets to return to health, as cooling volatility offered a brief lull after two weeks of turmoil. The MSCI emerging market index was flat, with equities at their cheapest since August. The turmoil began after the Fed began discussing tapering quantitative easing. Fund managers yesterday said the market [...]
Fed president wants faster taper February 5, 2014 The president of the Federal Reserve Bank of Philadelphia, Charles Plosser, suggested in a speech yesterday that US quantitative easing should be clipped at an even faster pace, and the entire programme could come to an end by the middle of the year, before unemployment reaches the Fed’s 6.5 per cent threshold. He added that [...]
City A.M. shadow MPC votes 7-2 against higher rates February 5, 2014 ALLISTER HEATH | CITY A.M. The case for a 0.5 percentage point hike in the Bank rate is clear. The unemployment level is plummeting and firms are reporting some of the most positive conditions on record. The dangers of emergency monetary policy are now increasingly obvious, especially in London’s property market JAMES SPROULE | INSTITUTE [...]
Chinese monetary superpower rivals the Fed in the emerging market storm February 5, 2014 ONE OF the joys of my job is watching fashionable but off-base theories crumple in the face of real world events. The current emerging market storm has seen the obvious destruction of not one, but two cocktail party staples: the rise of the Brics/Mints and the idea of the G-Zero world. The first thought to [...]
Letters to the Editor – 06/02 – Quango bonfire, Global growth, Best of Twitter February 5, 2014 Quango bonfire [Re: How charities lavish millions of taxpayer money on left-wing campaigns, yesterday] The government should consider revisiting its “bonfire of the quangos”, although they should see it through properly this time. Over 200 have been axed, with impressive savings upwards of £2bn quoted, but far too many of the roles have been rehashed, [...]
Advantage Britain in Fed Cup February 5, 2014 TENNIS: Great Britain took an unassailable 2-0 lead against Latvia in their Fed Cup Europe/Africa Zone Group match yesterday. British No3 Heather Watson beat 16-year-old Jelena Ostapenko 7-5, 6-1, before Australian-born Johanna Konta triumphed 6-3, 4-6, 7-5 against Diana Marcinkevica. Britain, captained by Judy Murray, play Romania on Friday, then Hungary on Saturday.
Abenomics fails to deliver for Japan’s mega banks February 5, 2014 Japanese banks are set for a rough ride this year as they struggle to maintain strong profits, according to Fitch Ratings. The ratings agency said recent gains seen in the wake of Abenomics can be attributed more to a surge in optimism rather than fundamental improvements. Core lending remains sluggish as a stronger yen combined [...]