Everyone must learn to pay their way February 12, 2012 BRITAIN as a whole is spending much more than it raises in tax – that is why there is a massive budget deficit and the government is being forced to borrow so much. But what if the various parts of the UK were all independent countries, including the English regions? Looked at in this way, [...]
Search for Greek resolution a game of bluff February 12, 2012 WE could be entering the first really choppy period of the New Year for investors as we watch for some kind of resolution with Greece. Nearly everyone I speak to assumes that Greece will get the minimum amount it needs to stave off a disorderly default, simply because Europe is not yet confident enough to [...]
Pub and restaurant visits increase but Britons continue to rein in spending February 12, 2012 BRITONS are starting to make more frequent trips to bars, restaurants and clubs after two years of belt-tightening, in a sign that the leisure sector may be able to capitalise on “austerity fatigue”. Pub and bar visits have increased by 2.2 per cent compared to last year, with the average UK consumer going to the [...]
WALL STREET WEEK AHEAD February 12, 2012 DESPITE a mediocre earnings season and signs of an overbought market, Wall Street bulls are likely to remain in control this week. So far in this earnings season, 352 companies in the S&P 500 have reported results, of which only 63 percent have beaten Wall Street estimates. This compares to a beat rate of about [...]
No quick fix to US jobs crisis February 7, 2012 UNEMPLOYMENT in the US remains elevated and is some way from a significant improvement, the head of the Federal Reserve said yesterday. Despite positive recent jobs data, Ben Bernanke warned: “Given the anticipated modest pace of economic recovery, the committee expects that over coming quarters the unemployment rate will decline only gradually”. The official unemployment [...]
Carry on carry trading the Aussie dollar as rates held February 7, 2012 THE Reserve Bank of Australia caught the markets by surprise after holding interest rates yesterday – contrary to the expected cut. With December retail figures contracting, house prices dropping an average of 4.8 per cent year-on-year and housing construction in a 20 month slump, traders were poised for a 0.25 per cent cut in rate [...]
TOP FED OFFICIAL HITS OUT AT LOW RATES February 6, 2012 Years of ultra-low interest rates, which the Federal Reserve is advocating, distort and damage the economy by hitting savers and paring back savers’ spending at a time when consumers are increasingly reluctant to borrow, St Louis Fed president James Bullard argued yesterday. As a result, current policies will fail, he said.
A NEW THEME FOR THE EURO DESPITE AN AILING ATHENS February 6, 2012 ANOTHER week has passed by without a deal from Athens and the currency markets are clearly starting to suffer from headline fatigue. While the risks are quite serious, the markets continue to believe in an 11th hour deal – which is why the fallout in the euro has been relatively modest. Yet the longer the [...]
Fed: cut harder but slower February 2, 2012 AMERICA’S public finances are “clearly unsustainble”, Ben Bernanke said yesterday – although the Federal Reserve chief advised the government against immediate strong cuts. Referring to the need for fiscal consolidation, Bernanke told the House budget committee that “even more aggressive strategies than have been pursued recently are warranted over the longer term”. Yet he warned [...]
RAPID RESPONSES February 2, 2012 Get up, stand up Great article by Gina Miller (Join our campaign to fight fund managers’ high fees and lack of transparency, Wednesday). Financial services, as an industry, has always been overpriced for the value it adds. Transparent performance related charges for investment products is the way to go, especially if they are returnable when [...]