Austerity is wounded, and markets don’t care about cutting debts anymore

Now the bond king Bill Gross, the most important investor in bonds in the world, has sided against austerity. It’s like the Martians from HG Wells’ ‘War of the Worlds’, the Austerians are being forced to reconsider their conquest of the Earth.

Gross said: “The UK and almost all...Read More

Apple loses its crown as world’s largest company

And so Apple is no longer number one. Its market cap dropped to a trivial, an almost insignificant $387 billion yesterday. Why there are simply loads of companies worth more than that – for one there is ExxonMobil, which is worth a full $7 billion more than Apple at the...Read More

Posted Apr 18, 2013

Austerity economics in disarray

It is one of the most quoted economics papers of the last decade. It is cited time and time again by supporters of austerity. It provides the empirical data to support George Osborne’s strategy for the UK. Even critics of austerity, those who support the idea of government stimulus, take...Read More

Posted Apr 17, 2013

Opinion – US economy’s recovery belies need for surging property market

In the UK, as this piece shows (see: Is the UK housing market poised for recovery, and is that good or bad news?), there is evidence to suggest that UK house prices are in strong recovery mode. It is quite curious. The UK economy has suffered its worst downturn...Read More

Posted Apr 16, 2013

Tech city: is Cameron creating a rival to Silicon Valley, or is he just crowding out good business sense?

They used to talk about the bells of Shoreditch. You might recall the words ‘When I get rich, say the bells of Shoreditch’. Better than the oranges and lemons offered by the Bells of St Clements.

These days the area is more known for its roundabout,  or silicon roundabout as it is called....Read More

Posted Oct 24, 2012

Facebook valuation: is it madness?

And so Goldman Sachs and the Russian investor Digital Sky Technologies pump $500m into Facebook for a mere 1 per cent. So that means Facebook is worth around $50bn. Speculation that a flotation is imminent is rife. Others say it’s downright ridiculous, and wonder how a company with such modest...Read More

Posted Jan 05, 2011

Economic chestnuts on an open fire

So this is Christmas, and what have you done? Another year over, and a new one just begun.

Well, one thing we can say without fear of contradiction: the global economy is one year older, too, but what has it done?

The Sudoko puzzle
Is China changing?
Wages, the rich, and why...
Read More

Posted Dec 24, 2010

Gold: arch bears turn to bulls – is the barbarous relic set to move even higher?

For quite a while Capital Economics have been bears on gold. As of this week that has changed, with the consultancy now forecasting that the pretty yellow metal could reach $2,000. Mind you, contrarians argue that the time to buy is when the most bullish of investors has turned bearish,...Read More

Posted Dec 22, 2010

Snow claims victim

Already a retailer has issued a profits warning and has blamed the snow. Meanwhile, the Federation of Small Businesses has called for the government to give a helping hand to businesses that are reeling thanks to the bad weather.

Alexon, the women’s fashion group that includes the Ann Harvey, Eastex and...Read More

Posted Dec 22, 2010

Bank bonuses and the impotent UK government

The row, or is that outright war, over bank bonuses rumbles on. Vince Cable has never been shy in spouting forth his anti-bank rhetoric, but now even the man who is normally the bank’s friend, Boris Johnson, has made a speech criticising bank bonuses.

And yet still the threat remains: You...Read More

Posted Dec 21, 2010

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