The Eurozone crisis: Here comes the summer…

For many investors, the maxim of ’sell in May and go away’ is prudent strategy to deal with the traditional summer lull in stock markets. Despite the pain that is being felt in the real economy of the Eurozone, things have been relatively fruitful of late for investors. In fact, the strong performance of financial […]

Budget 2013: Plus ça change…

The weeks leading up to the budget have been a tumultuous time for the Conservative party. A by-election has been and gone, as has Britain’s AAA credit rating, and the public discussion about the Prime Minister has swung from how he chose to implement the proposals in the Leveson Inquiry to what he can organise […]

Is the Brazilian economy living up to its potential?

In Brazil, it is known as the Maracanazo. The country’s national football team, playing the final group match of the World Cup on home soil against little Uruguay, needed only to avoid defeat to prevent their opponents from taking home the trophy. No one doubted that Brazil would become champions of the world, so when […]

Britain has been downgraded. So what?

On Friday night Moody’s finally took the decision to downgrade Britain’s credit rating for the first time since the 1970’s. It sent out the warning that ‘despite considerable structural economic strengths, the UK’s economic growth will remain sluggish over the next few years due to the anticipated slow growth of the global economy and the […]

Inflation targeting: time for a change?

When Mark Carney arrived at the start of this month to speak to the treasury committee, it was a chance for him to lay out his vision for the Bank of England when he takes charge, with many expecting wholesale changes. Yet, Britain’s MPC has had a relatively quiet time of late – interest rates […]

This Little PIIG-y hopes to return to the markets

Is Ireland’s apparent recovery a blueprint for the rest of the Eurozone? In the first month of this year a strange feeling of positivity gripped the Eurozone’s troubled economies. Bond yields were low and the next meeting to postpone the making of key decisions was a while away, while markets around the world were calm. […]

France’s Income Tax Furore

The French 75 is a champagne cocktail, allegedly created by World War One fighter pilot who felt that champagne lacked a little in strength. The kick was so powerful that he named it after a French 75mm howitzer artillery piece, but it might as well have been named after Francois Hollande’s proposed top tax rate, […]

The Beginning of the End for the Commodity Boom

George Orwell once noted that“Whoever is winning at the moment will always seem to be invincible.” Over the past decade the economies that have made their way by exporting commodities (best typified by countries such as Brazil and Russia) have enjoyed strong growth. This has lead many to suggest that their rise will continue over […]

Mark Carney: The Right Man for the Job?

On his appointment, George Osbourne described him as the ’outstanding central banker of our generation.’ The Economist had glowingly called for his appointment. Sir Mervyn King declared him ’the outstanding choice to succeed me.’ The pound even hit a two and a half year high against the Canadian dollar on the day the news was […]