Just when everything seemed to be going back to (near) normal, the Greek Prime Minister and his cabinet have decided to put his country’s agreement to resolve its sovereign debt crisis to a referendum. This is in the interests of national unity at home — and may even be in the premier’s own political self …
Category archives: Economic
WPP sees growth in 2012, challenges in 2013
WPP has cut its sales growth forecasts for 2011, though margins have improved (implying that costs have been cut significantly). Chief executive, Sir Martin Sorrell, is expecting growth of around 3%-4% in 2012 (down on 4%-6% in 2011), though 2013 may present a greater challenge “when a newly elected president will finally have to deal …
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Equities rise on eurozone deal
News that private investors will accept a 50% reduction in the face value of their loans to Greece, and that that country will be able to reduce its debt to 120% of GDP by 2020, were met by a rise in stock markets to around the levels of early August. Banking shares performed especially well. …
Not all bad news — ABB improves
ABB, seen with other infrastructure and engineering groups as a bellwether of global economic conditions, has posted profits and sales up in the third quarter, benefitting from acquisitions, foreign exchange (FX) movements, and cost cutting and in spite of price pressures. Revenues showed a slight increase after acquisitions FX were taken into account. The order backlog …
China has more internet users than population of EU
The modernisation of China continues apace, as measured by the number of citizens with access to the Internet, which has transformed western lifestyles and economies. China now has over half a billion people using the Internet, more than twice the number using it in the US, and more than the entire population of the EU. Growth in …
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India’s banks raise savings rates to attract local capital
While the west continues to deal with the fallout of deregulated banks, the Reserve Bank of India has deregulated the interest rates paid on savings accounts. Rates in the largely state-controlled sector have been regulated at 3.5% for the past eight years, while inflation has been as high as almost ten percent. Commercial lending rates …
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The energy and economic fundamentals
Here is a series of fundamental points, and then a question: To pay off our existing debts we need the economy to grow Economists are expecting there will be a source of energy to power that growth But cheap oil has run out, oil is ‘peaking’ — supply may match but will no longer exceed …
Will China’s bubble burst?
Local governments have over-borrowed and are having cash flow problems. Beijing has allowed them to raise new money, via bonds (which previously were banned). This will help with short term cash flow issues, and buy time to get their borrowing in order. But the trend is that the situation is worsening. Much of the local …
China’s economic growth slows
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 …
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