Global Economy

admin July 31, 2018

Gold is supposed to be a haven, a place for investors to turn during tumultuous times. But in the middle of a trade war, gold has fallen into a correction, down more than 10% from its high for the year. Why has the price fallen lately? Simply put, it’s the strong US dollar. Expectations for […]

admin July 31, 2018

An oil and gas boom is helping Caterpillar. Three months ago, the heavy equipment maker spooked Wall Street with a warning that its earnings had reached a “high-water mark.” The Dow fell nearly 425 points. But the company reported record earnings for the second quarter Monday that easily topped forecasts and it also boosted its […]

admin July 30, 2018

Russia has rapidly sold off the vast majority of its stash of American debt. Between March and May, Russia’s holdings of US Treasury bonds plummeted by $81 billion, representing 84% of its total US debt holdings. The sudden debt dump may have contributed to a short-term spike in Treasury rates that spooked the market. 10-year […]

admin July 28, 2018

THE maelstrom that hit global financial markets a decade ago is known in Japan as the Lehman Shock, after the bankruptcy of the American investment bank that caused it. Japanese banks themselves escaped relatively unscathed, owing to defences built during the 1990s, when the country struggled with deflation and excessive debt. But they seem to […]

admin July 27, 2018

BENJAMIN GRAHAM is considered the father of value investing, the business of picking stocks that are cheap. He might also fairly be described as the father of not trying to pick stocks at all. In his book “The Intelligent Investor”, Graham distinguished between two archetypes. Enterprising investors are willing to devote time and care to […]

admin July 27, 2018

“SELL in May and go away,” say the denizens of Wall Street, and to the usual summer lethargy is added the excuse of a heatwave. But for those working in private equity, there is no let-up. The “shops”, as private-equity funds like to call themselves, are stuffed with money and raising more: $1.1trn in “dry […]

admin July 27, 2018

Shares in Volkswagen (VLKAY), BMW (BMWYY), Fiat Chrysler (FCAU), Renault (RNLSY), PSA (PUGOY) and Daimler (DDAIF) advanced on Thursday, with some automaker stocks gaining as much as 5% in Europe. President Donald Trump and European Commission President Jean-Claude Juncker agreed on Wednesday to work toward eliminating tariffs and barriers on trade. While thin on details, […]

admin July 27, 2018

AS NAMES for market phenomena go, “inverted yield curve” lacks a certain punch. It is no “death cross” or “vomiting camel”. But what it lacks in panache, the inverted yield curve more than makes up for in predictive potency. Just before each of America’s most recent three recessions the yield curve for government bonds “inverted”, […]

admin July 27, 2018

Turkey could be the next emerging market to fall into crisis. The Turkish lira has dropped 2% against the US dollar since the country’s central bank shocked investors on Tuesday and left its key interest rate unchanged at 17.75%. The currency has now lost 27% of its value this year. Economists had been expecting the […]