Bank of America is to charge $5/month for use of its debit cards. Wells Fargo and JP Morgan are testing similar fees, at $3/month. The economic system must be winding itself tighter and tighter if they are having to resort to this kind of action to stay afloat. http://www.thedailybeast.com/cheats/2011/09/29/boa-announces-5-debit-fee.html
Category archives: Energy / Environment
Meanwhile, in an emerging economy not far away…
Brazil’s inflation is above target. The central bank cut interest rates by 0.5% at the end of August, on the expectation that slower global growth would hurt Brazil’s exporters. That may well happen, but the immediate impact has been a rise in domestic inflation, to just over 7%.
Expected long term US inflation falls
Projetions for US inflation over the next 30 years have fallen to just under 2%. You might say that growth expectations are similarly low. http://www.ft.com/cms/s/0/cdfa208e-e912-11e0-ac9c-00144feab49a.html
Eurozone: A corner turned?
Shares in Asia and Europe have rallied on anticipation that Greece’s debt can be handled. The FTSE All-World index is up 1.7%. “Industrial bellweather, copper” is up 2.6%.
Volatility and Stability
Industrial metals such as copper, zinc and platinum had until recently escaped the volatility of the metals market — whatever the financial markets might do, these metals were connected to a real world of real demand: real contracts for electrical wiring, galvanised steel and catalytic converters in car exhausts. Yesterday, however, on the assumption of …
Emerging Market Countries
While emerging nations fear that global trade is slowing, they recognise that if they allow their currencies to fall, then by promoting exports and reducing imports they can “ride-out the recession.” That, at least, is what worked for Poland in the 2008-09 recession. Countries that have large foreign currency borrowings will find it more difficult …
Eurozone crisis inches closer to resolution
The IMF meeting in Washington on Sunday failed to reach agreement on how to resolve Greece’s bailout problem. Various options are on the table, which (indicatively) would involve a write-down of the net present value of creditors’ holdings by around 20%, five percent, or even “none at all.”
Increased desperation in debate to escape downturn
The increasing levels of tension being felt around the need to bring the economy back into growth are shown by a new proposal from the British Chambers of Commerce (BCC). “As debate rages”, the BCC has suggested that if the economy does not improve within six months then the budgets for health and overseas aid should …
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‘Operation Twist’
The US Federal Reserve launched its $400bn ‘Operation Twist’ as expected, selling short term bonds (under three years) and using the cash raised to buy long-dated treasuries.
Oil price volatile — two scenarios foreseen
Having fallen earlier this week, oil prices have risen again, to around £112/barrel. The reason — US commercial crude stocks fell by 7.3million barrels, ten times the forecast amount. Inventories are now at their lowest levels since January. Prices rose after Libyan output dropped earlier this year. Full production (1.6m barrels/day) is currently forecast to …
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