Investment & Business News Headlines

Big events of the year

Well, it would be churlish to deny the iPhone seems to have been the product of the year, although the Nintendo Wii has enjoyed something of a stunner too. Nintendo is now suffering from not being able to meet demand.

As for central bankers, where do we begin? Is it the letter sent by Mervyn King to Gordon Brown? The bold step taken by the world’s top central banks to work in unison to pump money into the system earlier this month, or the even bolder step by the European Central...Read More

How subprime crunched credit

It barely made the headlines. The first signs of a subprime crisis showed themselves in February. HSBC kicked the game off, when it announced it had to dramatically increase its provisions for bad debts in its US market. Then, still in that month, New Century Financial, which specialises in...Read More

Posted Dec 21, 2007

Uncle Sam gives hope as exports rise

Decoupling is one of those words that has being doing the rounds of late. It describes how these days the global economy can carry on growing, even if the US gets laid up in bed. Thanks to China and the ilk, the world can do perfectly well...Read More

Posted Dec 18, 2007

The new wall between economists - is inflation stirring or just snoring loudly

The only surprising thing in Friday’s news on US inflation is that people were surprised. The annual rate of Us inflation shot up in November, from a worrying 3.5 per cent, to a very distressing 4.3 per cent. Markets in the US did another one of their...Read More

Posted Dec 17, 2007

Was the cavalry charge just a ruse? Now China plays the bugle

When one of the leading investment banks in the world reveals its first quarterly loss in 72 years, you know there must be trouble afoot. That’s what happened yesterday, but relax. China, with all its spare cash, came riding in over the hill, saving the day, as the business world’s...Read More

Posted Dec 20, 2007

Housing barometer index falls again

Of that plethora of reports relating to the UK housing market, the monthly survey from the Royal Institution of Chartered Surveyors (RICS) has much to commend it. Sure, it is just a survey, it asks estate agents what they think. During the three months to November,...Read More

Posted Dec 13, 2007

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We hope you enjoy Investment & Business News from Defaqto. We have been producing this newsletter for almost 5 years now. Maybe you are new to it, maybe you have been receiving the product right from day one.

You will have noticed that the product has changed a...Read More

Posted Dec 13, 2007

Tesco keeps on keeping on while Asda still leaves Sainsbury's eating dust

Not so long ago, it was widely accepted that sooner or later Sainsbury’s would claw its way back above Asda and become the supermarket with the second-largest share in the UK. But this year the gap has stopped closing.

According to the latest data from the TNS...Read More

Posted Dec 12, 2007

Markets slam Fed for not doing enough

“I can’t remember a time when the Fed’s credibility with the markets has been lower than it is today,’‘ said Stephen Stanley, chief economist at RBS Greenwich Capital, to Bloomberg yesterday. He added “Practically everyone has something to be disappointed with.”

Markets had been hoping the Fed...Read More

Posted Dec 12, 2007

China sees consumption shoot up - is this the solution to the economic crisis?

Back in September of this year, China’s imports from the US came to $5.6 billion and yet its exports were no less than a stunning $29 billion. The economy from behind the Great Wall is exporting almost six times more than it is importing from the US...Read More

Posted Dec 12, 2007

Big day in US

Today’s the day the Fed chooses the rate of interest. The general feeling seems to be that a quarter of a per cent cut will be announced, but some expect more.

Such is the anticipation of a rate cut, that markets went out and bought yesterday, with the...Read More

Posted Dec 11, 2007

2007: A look back

What a year. Who would have thought it? 2007 began with such promise and ended with such trepidation. This is the last issue of Investment and Business News from Defaqto this year, so we thought we would leave you with a reminder of how the economic prospects turned, and look...Read More

Posted Dec 21, 2007

UK will hit bottom in the last quarter of next year says the CBI

At face value the latest report from the CBI is pretty worrying – but actually when you think about it, it’s not so bad. The real worry lies in the possibility the CBI is wrong.

The employers’ organization reckons the UK’s growth will slow to 2 per...Read More

Posted Dec 17, 2007

Bali: is the US right?

Last week the US found itself in the spotlight of public opinion. At the UN climate conference in Bali, the US delegation was on the receiving end of boos and hisses. It was cast as the villain of the piece and then when eventually it appeared to...Read More

Posted Dec 17, 2007

Morgan Stanley sees first loss in 72 years, as China steps into the breach

“Whooops. I hadn’t expected that,” said members of a crack team of speculators at Morgan Stanley. It was one little error, one wrong bead on the abacus of corporate banking, and yet it cost the bank $7bn. As for the bottom line, the bank made a quarterly loss of $3.59...Read More

Posted Dec 20, 2007

Central banks wade into the battle - but will it work?

It was a case of horses for courses. Each of the five banks involved in yesterday’s big announcement had their own particular measures. In the UK and Canada, the central banks are changing the rules as to what constitutes collateral. For example, if a bank wants to...Read More

Posted Dec 13, 2007

A hangover cure, or just hair of the dog?

Just for a moment, put yourself into your grandparents’ shoes, or if you are an especially young reader, your great-grandparents’. And while you metaphorically clump up and down in these old shoes try and imagine what it was like in the 1920s in the UK, and 1930s...Read More

Posted Dec 13, 2007

Are mortgage payments to income at their highest level ever?

Yesterday, the Council of Mortgage Lenders (CML) released its latest data on the cost of mortgage payments to First-Time Buyers, and once again affordability is down.

This is how CML put it: “First-time buyers contributed 20.6 per cent of their income towards mortgage interest, up from...Read More

Posted Dec 12, 2007

Producers raise prices at fastest rate in 16 years

The theory is that because of the credit crisis, the economy will slow, dragging inflation down, allowing central banks to slash interest rates. Some point to the recent falls in oil as evidence this is happening – although at $88.37 a gallon, the black stuff might be...Read More

Posted Dec 11, 2007

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