Investment & Business News Headlines

Will we see BRIXIT or will Euro leaders brick it?

Tony Blair is worried; his former advisor is being kept up at night, but no doubt euro sceptics will be hooting with joy. The reason for such angst and joyousness is the future of the relationship between the UK and EU. A report from Japanese bank Nomura has warned that the UK may exit the European Union within a couple of years. It calls such an event a BRIXIT. UK fans of Europe will be bricking it over the very suggestion. But regardless of the rights and wrongs, and...Read More

And time for some optimism

But finally, let’s step back for a moment, and enjoy some optimism.

This talk from Ted by Alex Tabarrok, entitled how ideas trump crisis, is well worth a view.

To sum it up in a nut shell, ideas promote growth, and ideas grow in number with globalisation. So as China...Read More

Posted Aug 28, 2012

The rise of supply side economists

During the late 1970s and early 1980s supply side economics came into fashion. Supply side means many things, but above all it means lower taxes. The idea is that by cutting taxes, people will work harder, and stimulate the economy.  It was a doctrine that came into fashion under Margaret...Read More

Posted Aug 28, 2012

Hawks, doves, economists, and those with no idea

Or is that the same thing? Economists have no idea, that is. The Bank of England tells us that we are better off thanks to quantitative easing, or QE as it is more often called these days. Those who seem to represent the interests of pensioners tell us that QE is...Read More

Posted Aug 28, 2012

When things are 1024 times faster, don’t you think the debt crisis of this era will seem like an unpleasant dream?

Debt is not such a problem when our income is rising faster than the interest we are paying on our debt. That’s why growth is important. If the UK, the US, and the Euro area can start growing again, the debt crisis of this era will slowly lose its dominance...Read More

Posted Aug 20, 2012

The anguished religious ethics of a central banker

So far it’s been £375 billion, and that’s rather a lot of money. And yet it matters not how much money the UK’s Bank of England throws at the economy, the economy grows at a pace to make Usain Bolt look like a snail. This month, the bank’s biggest supporter...Read More

Posted Aug 20, 2012

Bank of England pushes on string

18 months ago, the Bank of England thought the UK economy would expand by 2 per cent in 2012. Not so long ago, the bank though the UK would be expanding by 3 per cent year on year by the end of 2012.
Now let’s be fair here. If...Read More

Posted Aug 13, 2012

Standard Chartered denies it ever said that thing about “F***ing Americans”

While all around there was chaos, Standard Chartered was of beacon of stability. While an increasing number of bank began to look a bit like the Titanic – complete with lifeboats for those in first class seats – Standard Chartered seemed more like a rock. While tipsters advised investors to...Read More

Posted Aug 13, 2012

The global economic snapshot beyond manufacturing

On Friday we saw similar indices, but this time covering services.

For the UK, the business activity index stood at 51, so phew no recession in services, but then again, the UK is perilously close. Alas, the composite index which combines reading on UK services, construction and manufacturing fell from 51.1 in...Read More

Posted Aug 07, 2012

Three possible scenarios

Nouriel Roubini is a professor of Economics at New York University, who pretty much called the sub-prime debacle spot on, and is known as Dr Doom.

He said recently said: “I think that the Goldilocks scenario in which everything becomes much better over the next, say, 18 months, between now and...Read More

Posted Aug 28, 2012

QE: curse of the devil, or a good idea?

Low interest rates are not exactly popular with people whose income is derived from their savings. It is just that one might ask: who are these people exactly?

One assumes that most pensioners are living off income fixed when they took out an annuity. It matters not what interest rates do now,...Read More

Posted Aug 28, 2012

The UK economy: growing or not?

Last week was a good one for economic news. Employment jumped by 201,000 in the three months to the end of June. Total employment hit 28.48 million, the highest level in four years, and unemployment fell from 8.1 to 8.0 per cent.

Retail sales jumped by 0.3 per cent in July,...Read More

Posted Aug 20, 2012

Time to ditch religious ethics and buy something else

Here’s an idea, just an idea mind you, why not use QE to buy something other than government debt? Perhaps we could use it to fund a massive tax cut, or use it to fund investment in infrastructure, education or – and this is the idea supported here a few...Read More

Posted Aug 20, 2012

PPI acts as stimulus

So, you throw the dice, you move your piece, perhaps it’s the dog, and you land on Community Chess. “Bank error in your favour,” proclaims the card, “receive £150.”

If only life was like that. When was the last time your bank errored in your favour?

It is just that this is...Read More

Posted Aug 13, 2012

Manufacturing across world slides into recession territory

First Mondays of the month are always a good time to get up to date.

The first working day of each month sees the release of the so called Purchasing Managers’ Indices (PMIs) for manufacturing. For this particular reading any score over 50 is meant to suggest growth.

Alas, they were...Read More

Posted Aug 07, 2012

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