Global Investing

from MacroScope:

Rip-off Britain or the cost of cheaper sterling?

February 17, 2009

Inflation is plunging faster than analysts are forecasting just about everywhere in the developed world. Except for Britain. Those accustomed to high prices and inflation-busting increases in tube and rail fares at the start of every year were probably not surprised.

And the next Iceland is…

January 23, 2009

If there’s one thing you don’t want to be, it’s the next Iceland.

To spend, or not to spend?

November 25, 2008

A day after Britain unveiled a multi-billion-pound fiscal stimulus package to spend its way out of recession, market analysts have been busy figuring out what it all means, in the context of a sharply slowing economy.

Banks: what price freedom?

November 3, 2008

What price freedom? Or at least freedom from government interference?

Barclays needs to answer that question after selling big stakes to Middle East investors rather than tap taxpayer funds. The bank is effectively paying 13 percent annual interest for at least a decade, whereas it could have paid the UK Treasury 12 percent for a few years. Add in a whopping 300 million pounds in fees and the deal could cost shareholders as much as 3.2 billion pounds extra, Merrill Lynch reckons.

Rug pulled away on UK bank funding

September 3, 2008

rtx6jie.jpg Britain’s banks may have borrowed over 200 billion pounds from the Bank of England, four times the amount they were expected to take under an emergency liquidity scheme. It leaves them facing a sharp funding strain next month when the rug gets pulled away.

EDF fails to push Britain’s nuclear button

August 1, 2008

british-energys-heysham-nuclear-power-station.jpgA dramatic last-minute hitch to plansĀ for France’s EDF to buy British Energy leaves managements, shareholders and especially the British government in a quandary.