Let’s not go back to sub-prime loans November 20, 2011 THERE are two ways one can address a problem caused by faulty policies: by tackling its root causes – or by addressing some of its manifestations, and risk creating more issues thanks to the law of unintended consequences which plagues all government actions. Regrettably, when it comes to house prices, the government is largely going [...]
50P tax rate goes at last March 22, 2012 GEORGE Osborne yesterday announced he was scrapping the 50p rate as he unveiled a raft of tax cuts for individuals and businesses – but he decided to stage a raid on pensioners, banks, buyers of £2m properties and other groups to fund his headline grabbing measures. In what he described as a Budget that “unashamedly [...]
Fundamentals remain for gold to resume its bull run April 23, 2012 With the US balance sheet more than doubling, it is not gold and other commodities that are expensive but cash that is cheap GOLD has been struggling to make any real breakthroughs of late, stuck below the psychological $1,700 an ounce level since the beginning of March. On the New York Mercentile Exchange, Comex gold [...]
The importance of separating politics and currency markets April 17, 2012 AS THE European turmoil continues, why isn’t the euro falling to pieces before our eyes? With Eurozone policy makers blundering from one crisis to the next – at best covering up the cracks in the fiscal superstructure, at worst knocking out a supporting wall – you might be forgiven for expecting the euro to have [...]
The importance of separating politics and currency markets April 17, 2012 AS THE European turmoil continues, why isn’t the euro falling to pieces before our eyes? With Eurozone policy makers blundering from one crisis to the next – at best covering up the cracks in the fiscal superstructure, at worst knocking out a supporting wall – you might be forgiven for expecting the euro to have [...]
FTSE slumps as fresh fears over the Eurozone return to global markets April 23, 2012 BRITAIN’S top shares surrendered almost all of last week’s gains yesterday, led lower by commodity stocks and banks, as political uncertainty and disappointing economic data revived investor concerns over the Eurozone debt situation. The mood was darkened by data showing the Eurozone’s business slump deepened at a far faster pace than expected in April, suggesting [...]
Tullett plots a new FX platform ahead of fresh regulation March 12, 2012 TULLETT Prebon is set to launch an electronic platform for interbank currency trading in the run up to expected changes in the system of global regulation. The interdealer broker, led by City veteran Terry Smith (pictured), wants to use technology it already owns to build a foreign exchange trading platform, focused on currency derivatives at [...]
Economic woe in euro area will hit banks March 25, 2012 ECONOMIC woes in the Eurozone are hitting the financial services industry, a new report claims this morning, despite political measures that have calmed the markets. Loans approaching or at the point of default are set to hit an all time high, according to economists at Ernst & Young. Non-performing loans “will rise above six per [...]
Loans to businesses increase September 29, 2011 LENDING to non-financial companies increased over August, though banks reduced their holdings of corporate securities by a greater amount, the Bank of England announced yesterday. Businesses borrowed £800m more in August than in July. However, overall lending from banks fell by £2.7bn as banks reduced their holdings of corporate securities. The Bank of England’s figures [...]
UK inflation rises April 17, 2012 British inflation ticked up in March, driven by higher food and clothing prices and reinforcing expectations the Bank of England will not inject more stimulus into the economy next month. The Bank of England and the government have been hoping that falling price pressures will ease the squeeze on Britons’ budgets and boost consumer spending. [...]