Credit Writedowns

At the Fabian conference yesterday, Ed Balls announced the Labour Party's intention, if elected in 2015, of restoring the 50p tax rate that was abolished by the present Coalition government. It is the central plank of his deficit reduction…

I am less and less concerned about the eurozone periphery over the medium term because recovery in Europe looks poised to last. On the other hand, the slowdown in China could have wide-ranging consequences, particularly for countries…

News links for 24 Jan 2014

We appear to be on the cusp of a more serious crisis in Argentina, as things are moving from bad to worse. Spot ARS has dropped as much as 20% earlier today, while the implied “blue chip” FX rate has fallen nearly 10% over the past two…

By Marc Chandler We argue that part of the euro's rise over the past several months reflects a reassessment of Spain's outlook. Many global investors had been under-weight Europe though most of H1 13, favoring the US and Japanese equities.…

By Marc Chandler We argue that part of the euro's rise over the past several months reflects a reassessment of Spain's outlook. Many global investors had been under-weight Europe though most of H1 13, favoring the US and Japanese…

News links for 23 Jan 2014

Wage increases are vital for Abenomics - without them the current policies are simply unsustainable (see discussion). If consumers are squeezed (see post), spending will decline and the nation will face deflationary pressures once again.…

In the wake of the financial crisis, bailouts and cheap money have done much to restore American bank balance sheets. Earnings for banks have returned to pre-crisis levels. But over the medium-term I believe banks’ earnings power will be…

News links for 22 Jan 2014