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
Category archives: Problems
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
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 …
“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
Regional tensions over oil (South China Sea)
China has warned India to stop working with Vietnam to develop oil and gas fields in teh South China Sea that Vietnam considers lie under its territory. http://www.ft.com/cms/s/0/8316f698-f801-11e0-8e7e-00144feab49a.html
European recession “likely” or “already here”
Several major European car manufacturers have scheduled days with zero production, on the expectation that the market will shrink again in 2012, “a further indication that the debt crisis is beginning to hit the real economy.” And in this article the head of one of the US’s biggest manufacturers warns that the US and …
Continue reading “European recession “likely” or “already here””
Market volatility threatens to delay sale of EMI
Tight credit markets (and risk-off attitudes) continue to make it difficult to find buyers for company sales. The latest victim of this trend appears to be EMI, although as one adviser pointed out, this could just be posturing. http://www.ft.com/cms/s/0/17bc296e-f6b6-11e0-9381-00144feab49a.html
EU faces 20 years of rising energy costs
An EU report has been leaked, which describes five scenarios for how we might meet our energy and carbon-reduction targets by 2050. Details are sketchy, and clearly depend on assumptions about the costs of investments, the life-cycles of new generating capacity, depreciation policies, and levels of government subsidy. Some of the projections seem lower than …
India “becoming the land of scams”
Cost of capital brings competitive advantage. And cost of capital is related to trust, or risk. India has a current account deficit — it is importing more than it exports — so it needs to borrow money to fund the imports.