As jobs go at BAE Systems, Google has taken out a (minimum) ten year lease on a seven storey building in East London joining Amazon, Intel, and Facebook in the Government’s high tech scheme. Dublin is competing for the same investments, with a Euro cost base and lower tax rates. http://www.ft.com/cms/s/2/3aa3812e-e929-11e0-af7b-00144feab49a.html
Category archives: Political/Economic
Stagnating UK defence budgets lead to job losses
The 3,000 job losses announced by BAE Systems will “devastate” local economies according to politicians and union leaders. Defence budgets are stagnating. As the chief executive of BAE Systems put it, “Our customers are facing huge pressures on their defence budgets and affordability has become an increasing priority.” http://www.ft.com/cms/s/0/ea51a2ac-e8ea-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 …
Tougher audits and tax rules on horizon
In the USA, attention is focusing on a tax loophole that is costing the US and other governments billions of dollars each year.
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 …
Increasing regulation of financial trading
After the 2008 crash, regulators from the G20 and from Brussels have been looking for ways to reduce risk of derivatives trading. One new piece of legislation requires more ‘over the counter’ or off-exchange derivative trades to be handled by a ‘Clearing House’, which manages the trade and guarantees the transaction is completed if one …
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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.”
French Senate now controlled by Left
France’s left wing opposition has won a majority in the upper house, the Senate, for the first time in over 50 years. The political shift comes as the government battles with a “sluggish economy” and “the eurozone crisis”. Presidential elections take place in April. http://www.ft.com/cms/s/0/99ebe4d0-e782-11e0-9da3-00144feab49a.html Additional story: “It was hardly a sweeping popular victory…. But …
Arab Spring continues
The Yemeni president has called for early elections that would bring stability to the Yemen, transferring power from himself to an elected government. Increasingly, the struggle of pro-democracy activists against the regime is turning into struggle between members of the country’s “political elite” as they jockey for position. http://www.ft.com/cms/s/0/0b10d9e0-e7a6-11e0-9da3-00144feab49a.html King Abdullah of Saudi Arabia says …