Global banking regulators are to press ahead with Basel III reforms agreed last year, although there are rising concerns that some countries will not stick to the agreement. Bankers have been against the changes. The balance of opinion was that “everybody gains from designing a safer system.” http://www.ft.com/cms/s/0/6598d30e-f002-11e0-bc9d-00144feab49a.html
Category archives: Political/Economic
Of the 1%, by the 1%, for…
While protesters Occupy Wall Street for the third week it is interesting to stumble across an article in Vanity Fair (written in May this year) that says almost exactly the same things. The top 1% of Americans earn almost 25% of the national income and own 40% of the assets. Both figures are up on twenty five years ago …
How to weather the crisis
Since the problems the world is now facing are pretty much unprecedented, it seems to make sense to approach the situation with no preconceived ideas, and to focus simply on “what works”. In that vein, this article from The Daily Beast is interesting for one simple quote: “it’s interesting to note that it’s the countries …
US mortgage rate under 4%
Average US 30 year mortgage rates have fallen under 4% (variable). The 15 year fixed rate has also fallen, to 3.26%. However, widespread negative equity and more stringent qualification standards for mortgages mean that demand is expected to remain low. http://www.ft.com/cms/s/0/568cbb3c-f025-11e0-977b-00144feab49a.html
Rising Chinese labour costs alter global manufacturing landscape
As the US Senate confirmed its legislation to impose tariffs on Chinese goods, in response to China’s failure to allow its currency to appreciate, a new study by consulting group BCG shows that rising Chinese labour costs are already changing the economics of global manufacturing and could create three million jobs in the USA by 2020.
Interim decision confirms foreign airlines must pay EU tax on carbon pollution
The final decision is expected in early 2012. Such preliminary decision have historically generally been confirmed by the final court ruling. This is good news for action on climate change, though slow. Airlines currently account for about three percent of global carbon emissions, but that share is growing fast. http://www.ft.com/cms/s/0/36556726-f005-11e0-bc9d-00144feab49a.html
US economy stronger than expected
New figures on US manufacturing showed better than expected figures, lightening fears of a double-dip recession. At the same time US car sales rose strongly in September. (GM up 20%, Ford up 9% and Chrysler up 27% on a year ago.
Manufacturing and mid-sized companies are unexpected sources of growth
New research shows that just seven percent of companies, mid-sized, created half of all new jobs since 2002. These fast growers are spread across all sectors and industries, and Government is looking at whether anything can be done to help them grow faster. At the same time, with the global manufacturing sector in the worst …
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EADS to slow production of Typhoon jets
But unlike BAE Systems (which also blamed slower Typhoon orders) EADS will not cut jobs. Neither will Finmeccanica. Sounds like these latter two are following a plenitude approach.
Struggle between US and China becomes overt
The struggle for power between the US and China will be “the defining geopolitical drama” of this century. It took a step forward this week as the US voted on legislation to introduce tariffs on China in return for its failure to allow its currency to appreciate.