China’s economy grew by 9.1% in the year to 30 September, down from 9.5% in the year to 31 July. Inflation is just over 6% and the slowdown in growth is seen as beneficial in helping to slow this inflation and achieve a ‘soft landing’ for the economy. China is a strong focus for global …
Monthly archives: October 2011
Severe floods in Thailand
Floods in Thailand have killed more than 300 people, inundated 1,000 factories (including those owned by Toyota, Western Digital, swamped large areas of agricultural land, and forced growth forecasts to be cut by around half (from 3.7% to just over 2%). Regional supply chains for companies including Apple have also been disrupted. Costs of clean …
China’s economy set to pass US by end of decade
America’s political power and influence will likely decline in parallel, although more slowly. This article argues that it is better to embrace this as a reality, rather than to seek ways to reestablish America’s dominance. http://www.ft.com/cms/s/0/0c73f10e-f8aa-11e0-ad8f-00144feab49a.html
Strike lifts copper price
Strikes at mines in Indonesia and Peru have led to the price of copper for three month delivery on the London Metal Exchange rising more than one percent. http://www.ft.com/cms/s/0/91ced962-f8a6-11e0-ad8f-00144feab49a.html
US debate on rich/poor divide continues
Temporary measures to raise States’ top levels of income tax, introduced in response to the recession, are expiring. But support for extending them is widespread, even among some high earners. http://www.ft.com/cms/s/0/e80d6b60-f6a1-11e0-9381-00144feab49a.html
US mortgage delinquencies increase
Banks’ third quarter results were hit by expected declines in investment banking, reflecting turbulence in global markets, and also by increasing failures to meet repayments of consumer debt, including mortgages and credit cards. http://www.ft.com/cms/s/0/c1865438-f8d2-11e0-a5f7-00144feab49a.html
“Germany will never leave the Eurozone”
And neither will Greece. An interesting perspective in this article by Ian Bremner. A standalone German currency would be far stronger than the euro. If Germany were outside the eurozone its European neighbours (its largest export market) would find it increasingly difficult to buy those exports, and Germany would face a similar problem to that …
Dividends of FTSE 100 rise dramatically
How can it be that, at a time when the economy is struggling, economic forecasts are gloomy, the government is cutting back its spending significantly, “shareholders in UK companies enjoyed strong growth in dividends”? Growth in commodity prices helped mining companies in particular. Vodafone, in a sector reported to be “struggling”, posted the largest total …
FSA blocks ‘liquidity swaps’
The FSA has blocked an undisclosed number of trades of undisclosed assets between banks and insurers. The banks/insurers say these would help their liquidity, by lending/borrowing a relatively easy to trade portfolio of gilts or bonds, secured against a portfolio of other less-liquid assets. The FSA says the resulting cross-holdings would make the financial system more …
“Ever closer union”
Support is growing in Germany for greater fiscal (and hence political) union amongst the euro countries, as the way to solve the euro zone crisis. Germany is the largest net contributor to the EU budget. Other countries are currently less keen. http://www.ft.com/cms/s/0/873e4b14-f7f1-11e0-a419-00144feab49a.html