Is Germany set to shine?
31 Oct 2007 [0 Comments | 59 views]
In the days when Europe was divided by a curtain made from iron, they used to say that the Soviet Union would never allow a united Germany. It was terrified of the idea, and yet, since 1989, the impossible has happened: a united Germany, rather than becoming the economic heavy many expected, had become relegated [...]
Does the high price of oil matter?
31 Oct 2007 [0 Comments | 67 views]
Back in the early 1970s, oil shot up in price, inflation followed and the economies on both sides of the Atlantic suffered. In 1974, UK inflation hit 16 per cent, the following year it rose to 24.2 per cent, and stayed in double figures for the following two years. In 1981 oil hit a new [...]
Dollar falls to 26-year low – is this good or bad news?
31 Oct 2007 [0 Comments | 56 views]
So the dollar fell to its lowest level against the pound in 26 years yesterday. On face value, that’s good news for US exporters and British tourists in Florida, but it’s bad news for US tourists, and British exporters. But, then again, maybe there is a bit more to it than that. The US economy, [...]
Uncle Sam prays Uncle Ben will give it the rice it needs today
31 Oct 2007 [0 Comments | 61 views]
Today’s the day. The Fed will be choosing the rate of interest this evening. Across the US, traders, analysts and economists are hoping, they are praying and they are willing the Fed to lower interest rates. A quarter of a per cent drop would be nice, a half a per cent fall would have them [...]
BSkyB celebrates millionth broadband customer
30 Oct 2007 [0 Comments | 60 views]
Have you noticed a new word has crept into the English language? Sky Plus. “Did you watch that TV programme on#133;?” “No, but I Sky Plus-ed it.” Mind you, maybe the Internet could make Sky Plus technology superfluous. Who needs to record a programme when you can download it? Not that BSkyB are likely to [...]
Private equity about to hook more Chinese investment – as the dragon realises it wants more bang for its yuan
30 Oct 2007 [0 Comments | 40 views]
Up to now we have had it too easy. In the UK we have been busy investing overseas, no doubt with the expectation of big rewards, while we borrow from abroad at rock bottom interest rates. In short, we have been using cheap credit to buy ourselves some tasty investments. This strategy has helped keep [...]
Consumer borrowing defies squeeze and rate hikes
30 Oct 2007 [0 Comments | 57 views]
At the moment, whenever data on the housing market is released, you just know it’s going to be bad. No surprise then to hear that the number of mortgages approved for home purchase have fallen by 20 per cent since last year, and are now to the lowest level in over two years. Maybe the [...]
When is a bubble not a bubble?
30 Oct 2007 [0 Comments | 64 views]
The world has gone mad. Everywhere you look you see valuations that suggest insanity has become endemic amongst the world’s traders. Whether it’s oil, property or shares, prices just seem to keep going through the roof. And, as every investor will tell you, what goes up must come down, so presumably it will all go [...]
Oil: $100 beckons
29 Oct 2007 [0 Comments | 62 views]
Oil at $100 a barrel is unthinkable – that has been the wisdom for the last few years. And if it did hit that level, then economic crisis would follow as surely as night follows day. And yet, oil is now closing in on that “unthinkable” level – and as of yet, the roof hasn’t [...]
Don’t hang on valuations – record breaking Hang Seng is still cheap
29 Oct 2007 [0 Comments | 70 views]
Shares surged again in Hong Kong yesterday. The Hang Seng is now 52.3 per cent up on the start-of-year position and 49.1 per cent up on the lows seen in August. And this morning it passed yet another all-time high. The index is now valued at 19.2 times earnings – that’s the kind of p/e [...]
