Tag Archives: eurozone

The UK’s own shaky currency union could give lessons to the eurozone

Among the analysts and politicians criticising the single European currency, perhaps the most numerous (and vocal) come from Britain.

This should be no surprise: the UK itself is a currency union, and those working within it should know a thing or two about why such a regime does not really work.

Continue reading

Europe is too gloomy for its own good

“You see, no hope’s a dangerous thing.”

— W.A.S.P. “My Tortured Eyes”

Last year’s Brexit vote and the election of Donald Trump as president of the U.S. shook the world out of complacency and sent analysts and experts into a frenzy of attempts to explain what was behind these two events.

For Trump’s election there is the partial explanation of the Russian intervention. For Brexit, the fact that the tabloid newspapers have, for years, portrayed Eastern Europeans as benefit scroungers who at the same time “steal” jobs from the British may have played a role.

But what about the rest of Europe?

Continue reading

In 2017, the ECB should learn to break the rules

This is going to be a crucial year for the European Union. There are more and more voices predicting its disintegration. With the political events that are ahead, it’s not a possibility that should be taken lightly.

Continue reading

Bank of England independence is vital post-Brexit

After the vote by the British people to leave the European Union, we keep waiting for the adults to take control of the situation. If they did, this whole process would be much easier. They could sit down and discuss ways to proceed with the separation with minimum damage for both sides.

Continue reading

This will be a ‘summer of shocks’ or a ‘summer of stocks’

As investors ponder whether to “sell in May and go away,” strategists say we’ll either see a “summer of stocks,” or a “summer of shocks.”

Continue reading

Investors ‘front-run’ the ECB, rush to buy bonds

If anyone was looking for more proof of how central banks’ actions are distorting the markets, here it is: investors are trying to “front-run” the European Central Bank (ECB) – in the words of analysts at Bank of America Merrill Lynch — by buying investment grade bonds.

Continue reading

ECB announcement breathes life into debt funds

The European Central Bank helped credit as an asset class, and of course corporate bonds within it, become attractive to investors again.

Continue reading

Bearish sentiment abounds; coordinated market intervention next?

Bearish sentiment abounds in financial markets, and the contrarian “buy” signals intensify. And yet, few analysts have the courage to say the correction/bear market is over and this is the time to jump into the market.

Continue reading

‘Quantitative failure’ pushes stock markets down

Stock markets swooned again last Friday, when the US jobs report showed the number of jobs created in January was well below expectations, at 151,000 compared with the 190,000 forecast by analysts.

Investors can no longer find comfort in turning bad news into good news, as they once did because any piece of bad economic news meant the Federal Reserve held interest rates rather than hike them.

Continue reading

‘Communism for the rich’ has destroyed the free market

With the recent stock market collapse and bear market, the critics of capitalism are out in force again; shouts that capitalism is dead or that capitalism is what caused this mess are growing louder.

Continue reading