Investment & Business News Headlines

Wen Jiabao, oranges, lemons and political mandarins

Right now there is some interesting stuff going on in China. Premier Wen Jiabao has called for greater political reform. Meanwhile, the People’s Daily, the most influential newspaper in China, has slammed the idea of Western-style multi-party democracy ever taking root in the world’s most populous country. In other words, right now we are seeing a clash right at the top of China’s politics between the reformists and the conservatives. Who will win? Well, the future of China’s economy is at stake, and economics may ultimately decide the outcome.

To understand...Read More

CBI reports increase in high Street spending, but is this the last hurrah?

The High Street did something odd last month and boomed, or so says the latest report from the CBI. Alas, the CBI findings are pretty much contradicted by ONS and the British Retail Consortium.

According to the CBI, High Street sales have been growing for four months...Read More

Posted Oct 29, 2010

CBI reports increase in high Street spending, but is this the last hurrah?

The High Street did something odd last month and boomed, or so says the latest report from the CBI. Alas, the CBI findings are pretty much contradicted by ONS and the British Retail Consortium.

According to the CBI, High Street sales have been growing for four months...Read More

Posted Oct 29, 2010

China graduates from copycat to innovator, as she builds fastest computer in world

The Great Bubble of China theory says that China’s growth is reliant on importing ideas from abroad. The same theory goes that China’s growth is not sustainable and she is months away from descending into a Japanese-style economic myopia. At the other extreme you get paranoia, that China is set...Read More

Posted Oct 29, 2010

What is internet really worth to UK economy?

According to a study revealed by Google, the Internet now accounts for 7.2 per cent of the UK’s GDP. Actually, it is not that simple. Sixty per cent of this £100bn is in the form of online shopping. And yet, if there was no Net, surely consumers would still...Read More

Posted Oct 28, 2010

Eurozone very likely to change in near future, says Capital Economics

Greece is in trouble again, and so is Portugal, begging the question, should the two countries leave the single currency? Not so long ago, Nobel laureate Joseph Stiglitz called for Germany to leave the euro. And now Capital Economics has said that “the chances of some form of change to...Read More

Posted Oct 28, 2010

Cost of repaying fiscal debt rises on strong GDP figures

Yesterday saw a double dose of good news on the UK economy, as GDP estimates for Q3 exceeded expectations, and the credit rating agency Standard & Poor’s upgraded its rating for the UK. And yet, as a consequence, the cost of repaying UK government debt rose. So why’s that...Read More

Posted Oct 27, 2010

UK GDP figures: economy did better than expected

The first estimate of UK economic growth for the third quarter was published this morning, and it was good. The question is, will the good news continue?

Perhaps the best bit was this sentence which sat within the depths of one of the Office for National Statistics (ONS) releases out...Read More

Posted Oct 26, 2010

Germany powers ahead: can it last?

It’s been a busy few days in Germany, with one set of news after another bringing good news. There’s just the tiniest hint of troubles ahead, however.

The Economics Ministry in Germany has been busy with its sums, adding up this column and that column, getting its abacus out to add...Read More

Posted Oct 25, 2010

Mortgage lending approaches cliff edge

The British Bankers’ Association (BBA) and the Council of Mortgage Lenders (CML) have both released a gloomy set of figures on mortgage borrowing over the last few days. In fact, the fall over the last 12 months has been pretty dramatic stuff. What are the implications for house...Read More

Posted Oct 25, 2010

Housing benefit reform and spending review: how will house prices be affected?

And so it is that the fallout from the spending review continues. Now the talk is that changes to housing benefit will force almost 200,000 Londoners to move away from the capital. Meanwhile, other aspects of the spending review are creating a new wave of speculation on what will happen...Read More

Posted Oct 25, 2010

China graduates from copycat to innovator, as she builds fastest computer in world

The Great Bubble of China theory says that China’s growth is reliant on importing ideas from abroad. The same theory goes that China’s growth is not sustainable and she is months away from descending into a Japanese-style economic myopia. At the other extreme you get paranoia, that China is set...Read More

Posted Oct 29, 2010

Wen Jiabao, oranges, lemons and political mandarins

Right now there is some interesting stuff going on in China. Premier Wen Jiabao has called for greater political reform. Meanwhile, the People’s Daily, the most influential newspaper in China, has slammed the idea of Western-style multi-party democracy ever taking root in the world’s most populous country. In other words,...Read More

Posted Oct 29, 2010

What is internet really worth to UK economy?

According to a study revealed by Google, the Internet now accounts for 7.2 per cent of the UK’s GDP. Actually, it is not that simple. Sixty per cent of this £100bn is in the form of online shopping. And yet, if there was no Net, surely consumers would still...Read More

Posted Oct 28, 2010

Eurozone very likely to change in near future, says Capital Economics

Greece is in trouble again, and so is Portugal, begging the question, should the two countries leave the single currency? Not so long ago, Nobel laureate Joseph Stiglitz called for Germany to leave the euro. And now Capital Economics has said that “the chances of some form of change to...Read More

Posted Oct 28, 2010

How reliable is ONS GDP data?

“That was close,” said the headline this time last year. The initial data for Q3 GDP in 2009 heralded that the UK pulled out of recession, but only just, expanding by a miserly 0.1 per cent. Twelve months on, it is a different story: “The UK is booming,” say...Read More

Posted Oct 27, 2010

Interest rates go negative, as markets fear inflation!

At first glance the headline doesn’t make sense. The yield on some US treasuries auctioned yesterday went negative, for the first time ever. And yet this is being interpreted as suggesting the markets are fearing inflation. What on earth is going on?

The picture may start to become clearer when you...Read More

Posted Oct 27, 2010

Is Saint Vince's pension for all, too good to be true?

And so it came to pass that the Business Secretary revealed plans to provide a £140 a week pension for all. Well, when we say for all, we do of course mean pensioners. And therein lies the key to this one. Of course the new pension is affordable, provided that...Read More

Posted Oct 26, 2010

Pound falls to seven month low against Euro

Sterling dropped so that there were just 1.126 euros to the pound last night. That was the lowest exchange rate since March. More to the point, the fall in the pound has occurred quite rapidly. This begs the question, why?

To put the fall in sterling in context, in...Read More

Posted Oct 25, 2010

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