Investment & Business News Headlines

The global housing crash, and what lesson can we draw for the UK

We all know house prices are falling in the UK. And they are declining in the US and Spain, too. But what about the rest of the world? Where else are you likely to see house prices fall, and by how much?

And then take a look at China. Use China as a kind of helicopter view, you will be surprised at the lesson we learn for the UK property market.

Top of the pack comes Ireland. The IMF has calculated that prices would need to fall by over 30 per...Read More

The US recession begins, global recession set to follow

The US is in recession. It’s about as official as you can get. In the last quarter, GDP contracted at an annualized rate of 0.3 per cent. Can anyone be surprised? Maybe the recently estranged from Mars might be a tad shocked; if you had been cryogenically frozen a...Read More

Posted Oct 31, 2008

The global housing crash, and what lesson can we draw for the UK

We all know house prices are falling in the UK. And they are declining in the US and Spain, too. But what about the rest of the world? Where else are you likely to see house prices fall, and by how much?

And then take a look at China. Use China...Read More

Posted Oct 31, 2008

The economics of Ross and Brand

Okay, so what has the Jonathan Ross–Russell Brand affair got to do with economics and the credit crunch? Answer, well actually, quite a lot. No doubt you are sick of reading about it, but perhaps this slightly different twist on the affair can shine some light on the big danger...Read More

Posted Oct 31, 2008

The economics of Ross and Brand

Okay, so what has the Jonathan Ross–Russell Brand affair got to do with economics and the credit crunch? Answer, well actually, quite a lot. No doubt you are sick of reading about it, but perhaps this slightly different twist on the affair can shine some light on the big danger...Read More

Posted Oct 31, 2008

House prices fall 15 per cent in 12 months – Nationwide

You have to feel a little sorry for Fionnuala Earley, Nationwide’s Chief Economist. Every month she somehow has to put up a credible case for the housing market, even though the Nationwide’s own predictions for the market have been so completely and utterly blown out of the water.

Even so, her comments...Read More

Posted Oct 30, 2008

Zero interest rates move closer

Did you ever get a zero mark when you were at school? Probably not, unless you missed the deadline and your teacher was feeling especially mean. Nought is not usually considered to be a good thing. It isn’t really especially good in economics either. Zero interest rates could kill saving,...Read More

Posted Oct 30, 2008

Repossessions soar

It will come as no surprise to learn that repossession levels soared in the second quarter of this year. The FSA released its findings yesterday, and they were broadly in agreement with data released by CML recently.

But it is when you peer beneath the surface that things get...Read More

Posted Oct 29, 2008

Iceland takes extreme step to stave off collapse, but what about the extreme risk in Pakistan?

Well, would you Adam and Eve it?

Yesterday, on news that the IMF is bailing out various economies across the world, we said: “The usual IMF formula is for rises in the local interest rate to protect the currency.” It’s a controversial approach, with many arguing the standard Read More

Posted Oct 29, 2008

Madness descends on markets

Madness was the most popular commodity in the world yesterday. It was perhaps the most extraordinary day seen yet in the whole tale of this economic crisis. Screw your eyes up a bit and look at yesterday’s events, and you could say the US enjoyed its worst and second-best day...Read More

Posted Oct 29, 2008

Total losses: $2.8 trillion, and counting

Yesterday, the Bank of England released its bi-annual financial stability report. The headline figure was enough to send a shiver of fear everywhere. Total losses related to the financial crisis in the US, UK and Eurozone to date are now thought to come in at around $2.8 trillion. You may recall that,...Read More

Posted Oct 28, 2008

Porsche, the philanthropic saviour of the dispossessed hedge fund managers

Aren’t those people at Porsche ever so nice? You may know, shares in Volkswagen rose so higher earlier this week that for a few minutes it was the largest company in the world. Yesterday saw another twist in that tale, as hedge funds found themselves on the receiving end of...Read More

Posted Oct 31, 2008

The US recession begins, global recession set to follow

The US is in recession. It’s about as official as you can get. In the last quarter, GDP contracted at an annualized rate of 0.3 per cent. Can anyone be surprised? Maybe the recently estranged from Mars might be a tad shocked; if you had been cryogenically frozen a...Read More

Posted Oct 31, 2008

Porsche, the philanthropic saviour of the dispossessed hedge fund managers

Aren’t those people at Porsche ever so nice? You may know, shares in Volkswagen rose so higher earlier this week that for a few minutes it was the largest company in the world. Yesterday saw another twist in that tale, as hedge funds found themselves on the receiving end of...Read More

Posted Oct 31, 2008

Zero interest rates move closer

Did you ever get a zero mark when you were at school? Probably not, unless you missed the deadline and your teacher was feeling especially mean. Nought is not usually considered to be a good thing. It isn’t really especially good in economics either. Zero interest rates could kill saving,...Read More

Posted Oct 30, 2008

Student loan changes cut to key problem with UK economy

What have student loans in the UK got to do with the US elections? The answer, quite a lot actually. And it is all down to a perverse logic of incentives. Don’t tax the super rich, it will kill incentive. But instead, governments clobber the middle class.

Joe the plumber won’t...Read More

Posted Oct 30, 2008

Oil bounces back, IEA gives supply warning. Is it set to soar again?

It’s up again. At the time of writing, oil stands at $70.49 a barrel, meaning it has risen by around 10 per cent in just two days. Is this a new trend?

According to the International Energy Agency, oil production is going to lag behind demand for decades, or so says...Read More

Posted Oct 30, 2008

Spend in haste and repent at leisure, or is there another way?

So, the government is set to open up the bank vaults, it’s set to dust the cobwebs off, and spend, spend and spend some more.

Later today, Alistair Darling is probably going to say it isn’t quite like that, but we all know it is.

Is this the right thing to do?

Keynes...Read More

Posted Oct 29, 2008

It's time to face up to truth on negative equity

Negative Equity – is there a more unpleasant coupling of two words in the English dictionary? And now the Bank of England has turned its attention to the matter. Its conclusion: negative equity levels in the UK will reach 1.2 million. That’s not good, but not as awful as the early...Read More

Posted Oct 28, 2008

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