brexit Tag

As the Federal Reserve prepares to begin paring the size of its $4.5 trillion balance sheet next month, analysts at Deutsche Bank on Wednesday warned that what they have dubbed the “great central bank unwind” is one of several candidates for creating the next financial crisis. “When looking for the next financial crisis, it’s hard to escape from the fact that we’re seemingly in the early stages of the ‘great unwind’ of global monetary stimulus at the same time as global debt remains at all-time highs following an increase overRead More
The pound pared an initial drop of nearly 2 percent as traders swayed to early U.K. vote results even as an exit poll projected that the ruling Conservative Party would fall short of an overall majority. Sterling fell to its lowest since April after Prime Minister Theresa May’s Conservative Party was projected to win 314 seats, short of the 326 required for a majority. Labour was projected to take 266 seats, according to the exit poll. Opinion polls had suggested a tighter race in the run-up to the vote, spurringRead More

Posted On June 7, 2017By HoudiniIn Articles

The New Gold Rush Is All About Vaults

From safety-deposit boxes in leafy west London to high-security facilities housing gold and silver in Frankfurt, companies that store valuables are expanding to meet demand. A rush into haven assets that began during the financial crisis is getting a new lease on life from an upsurge in populist politics and a quickening of inflation. Two firms say they’re planning to open vaults in Europe capable of holding more than 100 million euros ($112 million) in gold, offering customers lower costs than exchange-traded products and protection from rising prices. “Inflation is aRead More
As two big economies chart a new course, some fear “regulatory arbitrage.” This is how a race to the bottom can start. In Washington, President Donald Trump has vowed to roll back the financial regulations passed after the 2008 crisis. In London, Prime Minister Theresa May, facing a possible exodus of bankers as Britain quits the European Union, has said she might fight any “punitive” trade measures from the EU with tax cuts or policy changes to attract investors and companies. At the same time, some EU member states couldRead More

Posted On April 25, 2017By HoudiniIn Articles

Broken Politics and a Fragile World Economy

The global economy is gathering momentum, the International Monetary Fund has declared. That’s probably correct and undeniably encouraging, but there’s an ominous discord between this economic expansion and what’s euphemistically called “political uncertainty” — that is, the stresses caused by surging anti-trade, anti-market, anti-immigrant populism. This “uncertainty” could be the prelude to some seriously bad policies, enough to derail one or more leading economies and stall the global expansion. And there’s another danger, less obvious but no less important: the prospect of chronic underperformance. Even if the new politics doesn’t bring theRead More
Venezuela tops the list once again, but it’s the moves in the middle that matter If 2016 was the year of political shocks, this year could be when we find how they’ll impact the global economy. Bloomberg’s Misery Index, which combines countries’ 2017 inflation and unemployment outlooks, aims to show us just that. For the third year in a row, Venezuela’s economic and political problems make it the most miserable in the ranking. The least miserable country is once again Thailand — in large part due to its unique way of calculating employment — andRead More

Posted On April 3, 2017By HoudiniIn News

A Pullback in Asian Stocks Looms: Fund Managers

A pullback in Asian equities looms after a stellar start to the year, according to fund managers, who remain bullish for the longer term thanks to cheap valuations and optimism that the region will benefit from improving global growth. While managers see strong fundamentals, they ticked off several risks that may weigh in the second quarter, from French elections and Brexit to U.S. interest rates, as well as Donald Trump’s stance on protectionism and his ability to steer his agenda through Congress. “We are cautiously optimistic, but there a lots of thingsRead More
The U.K. economy’s sweet spot is about to be challenged. Prime Minister Theresa May kickstarted the formal withdrawal from the European Union on Wednesday, leaving businesses and investors facing the realities of Brexit and changes to everything from regulation to the movement of workers and goods. There’s also a lack of clarity over whether a good deal — or any deal — can be reached. Bank of England Deputy Governor Ben Broadbent said last week the economy was in a post-referendum, pre-Brexit “sweet spot” for exports. That situation, where the pound hasRead More
Sterling fell in early Asian trading as investors brace for the start of the two-year negotiation for the U.K. to leave the European Union. The pound fell as much as 0.6 percent to 1.2377 per dollar, and was the worst performer among the Group-of-10 peers which saw muted trading. The ties that have bound the U.K. to the EU since 1973 will start to unravel at around 1:30 p.m. local time in Brussels when Britain’s ambassador hands EU President Donald Tusk a letter from Prime Minister Theresa May invoking Article 50 ofRead More
The rise of populism has rattled the global political establishment. Brexit came as a shock, as did the victory of Donald Trump. Much head-scratching has resulted as leaders seek to work out why large chunks of their electorates are so cross. The answer seems pretty simple. Populism is the result of economic failure. The 10 years since the financial crisis have shown that the system of economic governance which has held sway for the past four decades is broken. Some call this approach neoliberalism. Perhaps a better description would be unpopulism. Unpopulism meant tiltingRead More