Quite suddenly the r-word, recession, has reared up on the world counts. Last week, a sudden wave of fear ripped through the financial markets, with the bond markets giving a signal that we should expect an economic downturn in the coming months. There are several elements here. US bond prices rose, or looked round the other way, long-term US interest rates fell, so that the interest rate on 10-year bonds fell below that of three-month Treasury bills. The interest rates on German 10-year bonds, dubbed bunds, actually went negative. The US Federal Reserve changed its guidance on the future movements of interest rates, suggesting that it might well not increase rates this year. We’ll tell you what’s true. You can form your own view. From 15p €0.18 $0.18 USD 0.27 a day, more exclusives, analysis and extras. Subscribe now And a few days earlier, the European Central Bank announced it would continue its version of quantitative easing, pumping more money into … [Read more...] about Opinion: Are we headed for a repeat of the 2008 global financial crisis after all?
Why financial crisis happened in 2008
Last week, one of the largest planned divestments of fossil fuel assets in history was announced. The Norwegian government publicly declared its intention to sell off ownership in oil and gas companies, to the tune of 66bn Norwegian krone (£5.7bn). This massive decision sent ripples through the markets, and the international benchmark Brent Crude was down 1.7 per cent as a result. But for a Norwegian like myself, this news was both expected and overdue. Sovereign state While sovereign wealth funds are something of an alien concept in Britain, they represent several of the largest investment bodies on Earth. China, the United Arab Emirates, Kuwait, and Saudi Arabia all boast some large state-owned investment funds. But none compare to the scale of Norway’s. Valued at over $1 trillion, the Norwegian fund owns almost 1.5 per cent of every publicly listed company in the world (as well as nearly 20 per cent of London’s Regent Street). Other than its size, what makes the … [Read more...] about Norway has grown rich on oil, so why is its state-owned fund divesting from fossil fuels?
Wales 21 February 2019 Share this with Facebook Share this with Messenger Share this with Twitter Share this with Email Share this with Facebook Share this with WhatsApp Share this with Messenger Share this with Twitter Share Share this with These are external links and will open in a new window Email Share this with Email Facebook Share this with Facebook Messenger Share this with Messenger Messenger Share this with Messenger Twitter Share this with Twitter Pinterest Share this with Pinterest WhatsApp Share this with WhatsApp LinkedIn Share this with LinkedIn Copy this link https://www.bbc.com/news/uk-wales-46840391 Read more about sharing. These are external links and will open in a new window Close share panel For many young people, the pleasures of their own hearth and home are out of reach. About 40% of young adults cannot afford to buy one of the … [Read more...] about Living in vans, tiny homes and containers
at around 2pm, Margaret, a manager for a marketing company, received a phone call about her son. She was travelling for work in Wiltshire. Max, then 25, had assaulted a police officer, she was told. “I thought, ‘Oh my God, what has happened now?’” she says. Margaret drove to the flat near Bristol where Max had been living for four months. It’s a self-contained part of The Maples, a residential building for adults with moderate to severe learning disabilities and mental health problems. Max has the reading age of a 12-year-old and the comprehension of a seven-year-old. He is autistic and has difficulty telling the time. The manager of The Maples told Margaret he had called the police because Max was drunk and had broken a window. When the police came, Max was in front of the building, in the driveway. This is where the alleged assault took place, after which he was taken into custody. But there was worse news to come: Max had been shot with a Taser by the … [Read more...] about ‘It should be the last option, not the first’: what’s behind the rise in Tasering?
Concerns are growing that another financial crisis is imminent. No less important a figure than Kenneth Rogoff wrote last week that “the next major financial crisis may come sooner than you think”. Rogoff, a former chief economist at the IMF, shot to fame with his 2008 book This Time Is Different, co-authored with his Harvard colleague Carmen Reinhart. The sub-title of the book, “eight centuries of financial folly”, effectively summarises its contents. Reinhart and Rogoff take a broad historical sweep of financial crises, and conclude that their basic cause is debt. It is not usually that the interest payments on debt become too high to be sustainable. Rather, the cause is a crisis of confidence that debt has become too high to ever be repayable. In a sentence, this is essentially the story of the global financial crisis of the late 2000s. Such crises are very rare under capitalism. Indeed, over the last 150 years, the recession of the early 1930s is the only … [Read more...] about Looking out for the next financial crisis? Keep an eye on spiralling debt