Even as our attention is gripped by a crumbling eurozone, another huge economic entity is emerging in the marketplace — Facebook, which has just upsized its number of IPO shares by a quarter before its $100 billion flotation tomorrow. Providing the crisis in Europe does not blow out into a huge political standoff (and just
Mervyn King unfurled a mast of metaphors this morning. ‘We are navigating through turbulent waters, with the risk of a storm heading our way from the continent,’ he said. ‘We don’t know when the storm clouds will move away.’ The eurozone, he said, is ‘tearing itself apart’. So poetic was his language — a
Greece is the centre of European attention, but as George Osborne met with other EU finance ministers today there was another issue bubbling in the background — Basel III. This had been brewing for a while and is yet one of those matters that threatened to isolate Britain from the rest of the EU (though
The newspapers and internet today are full of headlines about Mervyn King admitting the Bank of England was ‘late to the game’, and that central bankers should have ‘shouted from the rooftops’ regarding the financial blow-up. It’s true, the BoE governor did make these ‘mea culpa’ remarks — but they came rather half-heartedly, and couched
There was a sense of urgency, even emergency, in many countries on May 1 this year. The goings-on in the UK were muted in comparison: France Presidential incumbent Nicolas Sarkozy staged a rally in front of the Eiffel Tower called ‘The Feast of Real Work’, to counter the traditional show of heft by the left.
Ni hao. In recent days, Boris, Ken and Brian have all leapt headlong onto Weibo, China’s highly popular version of Twitter. It’s an obvious effort to win the votes of Chinese-speakers living in London. Boris was the first — which, I suppose, says all you want to know about his sense of initiative, brio, élan,
While Mervyn continues to inflate our universe via Quantitative Easing, another Mr King — Stephen, the chief economist of HSBC — has issued a report saying QE is a way for governments to ‘hijack the credit system’. ‘The financial system is being rigged via acts of financial repression as governments look for new ways of
Of all the Springs we’ve seen, perhaps the Burmese one is the most astonishing. It’s because the person aligned on the side of oppressive leadership — President Thein Sein, formerly of the junta — in a sense participated in the Spring himself. Aung San Suu Kyi has claimed a staggering by-election victory — her National
How – and why – ten-year-olds are being taught to run a business There’s an excited buzz in the Year 6 class of Yeading Junior School, in outer London. The ten-year-olds recently set up a polytunnel in the school grounds, and now they’re deciding which vegetables to plant in the new polythene greenhouse. Their teacher,
China’s rumour mill, hyperactive even in the calmest of times, has been in overdrive in the past two days. Monday evening and early Tuesday in Beijing, the country’s Twitter-like microblogs were abuzz with speculation there could have been a military coup, possibly linked with the recent demotion of Communist official Bo Xilai. There hasn’t been
Today brings the news, distressing to some quarters, that HSBC is paying its chief executive Stuart Gulliver £7.2 million — making him the highest-paid banker in the UK for the financial year so far. The remuneration comes on the back of a 28 per cent jump in full-year profits, which means HSBC has bucked the
Greece’s problems are far from over. As Pete said this morning, the €130 billion bailout hardly means the country is out of the woods, or that it won’t still be ejected from the eurozone. Standard Chartered have released a handy guide to the many obstacles Greece faces. Here are some highlights: 1. The first hurdle
To everything there is a season, says the Bible. And, as I have been discovering, to every season there are certain things. To autumn belongs the wet shiny streets, the brollies and the macs, the brightly coloured soups, the quiet squares where both trees and grass are emblazoned with gold leaves. Then, as autumn moves
It’s the New Year — a time when politicians all over the globe get on their soapboxes and preach to their people. From Merkel’s pledge to do everything for the euro, to North Korea’s vow to defend their new leader unto death, to Putin’s speech laden with sexual innuendo, here’s a selection of this year’s
It’s not very festive, but we have to wander into acronym territory again. Moody’s last night warned that the UK’s AAA credit rating is at risk if economic growth continues to slow. At the same time, minutes from the Bank of England’s meeting early this month, released today, show that its committee members were unanimous
One December in the 1930s, with Britain reeling from the Depression, Lord Wakefield of Wakefield House took out a full-page announcement on the cover of The Spectator. It was an appeal to ‘all men and women of goodwill’ to help 3,693 boys and girls in the National Children’s Home and Orphanage. ‘For many of them
Mervyn King’s words today, in the Financial Stability Report, are probably more important to the UK economy than George Osborne’s on Tuesday. As James points out in the magazine this week, Osborne’s plans could well turn out to be irrelevant if the eurozone collapses, flattening whatever is left of Britain’s growth prospects. Basically, King feels
Britain will soon be a leaking ship – it’ll lose £1 billion per year by 2015, if George Osborne stubbornly sticks to the 50 per cent top tax rate. As other countries have moved to attract the wealthy, the UK has actually taken a step backwards, according to a new report. And there are losses
As Italy and Greece implode, and the pressure increases for Germany to do something, anything, Angela Merkel has made a call for ‘structural changes’ in the EU. In other words, in what’s bound to get eurosceptics’ hackles up, she’s pressing for Treaty change and an even more tightly-knit union. At a conference known as Falling
While all eyes are fixed on Italy’s ever-increasing borrowing rates, a far larger problem may well be emerging. The EU bailout fund, set up to help countries who can’t borrow, may itself have trouble borrowing very soon. A sale this morning of 10-year bonds by the European Financial Stability Facility (EFSF) had a very muted
