Wednesday, 20 January 2016

Fears Grow of Repeat of 2008 Financial Crash as Investors Run for Cover

THE GUARDIAN: As leaders gathered in Davos, FTSE 100 was gripped by panic selling and entered bear market with Dow Jones also plunging

Fears that the global economy could be heading for a repeat of the 2008 financial crash have sent shockwaves through financial markets – prompting a rush to safe havens by investors.

Oil prices fell to a fresh 12-year low on Wednesday and metal prices tumbled in response to warnings that China’s slowdown could derail the global recovery at a time when central banks, which came to the rescue in the credit crunch, have only limited firepower.

As world and business leaders gathered for the annual World Economic Forum in Davos, Switzerland, the FTSE 100 was gripped by panic selling, especially of mining and oil companies that have been hit hard by the global slowdown in manufacturing and trade. Earlier this week China recorded the slowest rate of economic growth for 25 years. » | Phillip Inman, economics correspondent | Wednesday, January 20, 2016

Tuesday, 19 January 2016

Inside Story: Rich and Poor: Will the Inequality Gap Ever Be Bridged?

Charity group Oxfam warns of global crisis, with the 62 richest billionaires owning as much wealth as half the world.

Monday, 18 January 2016

62 World’s Richest People Own Same Wealth as Half the World – Report

The gap between rich and poor is widening according to the charity Oxfam, which reports that the 62 world’s richest people own the same as the poorest half of the planet's population.

Friday, 15 January 2016

Juncker zu Grenzkontrollen: "Ohne Reisefreiheit ist der Euro sinnlos"

SPIEGEL ONLINE: Reisende in der EU müssen immer häufiger ihre Pässe vorzeigen - die Kontrollen an den Grenzen kehren zurück. Jetzt stemmt sich EU-Kommissionspräsident Juncker dagegen: "Wer Schengen killt, wird den Binnenmarkt zu Grabe tragen."

Noch immer versuchen Tausende Flüchtlinge am Tag, die Europäische Union zu erreichen. Deshalb haben eine Reihe von EU-Staaten an ihren Grenzen wieder Kontrollen eingeführt - die im Schengenraum eigentlich nur in Ausnahmefällen und für kurze Zeit vorgesehen sind. EU-Kommissionspräsident Jean-Claude Juncker hat nun vor den Folgen für den Euroraum gewarnt. "Ohne Reisefreiheit ist der Euro sinnlos", sagte er am Freitag in Brüssel. » | vek/Reuters/AFP | Freitag, 15. Januar 2016

Thursday, 14 January 2016

Financial Storm Coming: “Sunny Ways” Won’t Stop Global Economic Forces

Obama's Final State of the Union: "He's Calling Americans Liars"

Ezra Levant and Breitbart's Joel Pollak fact check Obama's last State of the Union speech, particularly the President's remarks about the economy. "Obama is basically calling more than half of the American people liars," Pollak notes.

'China to Spark Global Financial Ice Age with Depression Sending Markets Crashing by 75%'

EXPRESS: CHINA is set to plunge the world into an economic crisis sending stock markets crashing by 75 per cent - with devastating consequences for Britain, a leading city expert has warned.

The sinking value of the Chinese currency is already crippling British industry as it can’t compete with China’s cheap exports.

Other Western nations are also feeling the strain.

And with even more to come experts have predicted an 'ice age' for the world’s economies – including Britain’s.

Global deflation is going to wipe around 75 per cent in value off the American S&P stock market, as western firms will be unable to compete with cheap Chinese exports, according to analyst Albert Edwards from french bank Societe Generale.

He gave the stark warning in an investment note to clients.

And he blamed the upcoming 'carnage' on American central bank (the Fed) and its British and European counterparts for inflating prices in the first place.

American Quantitative Easing (QE) - injecting extra money into the financial system - has push up global asset prices, teeing up a disastrous fall, Mr Edward believes.

He said: "Investors are coming to terms with what a Chinese renminbi devaluation means for Western markets.

"It means global deflation and recession. » | Lana Clements | Thursday, January 14, 2016

Tuesday, 12 January 2016

Powerball Jackpot Soars – Yet Again

CBS NEWS: DES MOINES, Iowa – The world's largest lottery jackpot has grown to $1.5 billion because of continuing strong Powerball ticket sales.

Lottery officials increased their estimate of the huge jackpot for the second day in a row Tuesday because of immense interest in the prize.

The record-breaking Powerball jackpot could grow yet more before Wednesday's drawing if ticket sales continue to exceed expectations. Officials reassess the jackpot estimate daily. » | Tuesday, January 12, 2016

Sell Everything ahead of Stock Market Crash, Say RBS Economists

THE GUARDIAN: Royal Bank of Scotland warns of ‘cataclysmic’ year with slumps in shares and oil and advises clients to shift to bonds

Investors face a “cataclysmic year” where stock markets could fall by up to 20% and oil could slump to $16 a barrel, economists at the Royal Bank of Scotland have warned.

In a note to its clients the bank said: “Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small.” It said the current situation was reminiscent of 2008, when the collapse of the Lehman Brothers investment bank led to the global financial crisis. This time China could be the crisis point.

Stock markets have already come under severe pressure in 2016, with the FTSE 100 down more than 5% in its worst start since 2000. In the US, the Dow Jones industrial average has made its poorest ever start to a year.

Oil prices have also fallen sharply on fears of lower demand and a supply glut, especially with Iran due to start exporting once more when sanctions are lifted. Tensions between Iran and Saudia Arabia make it less likely that Opec can agree to cut production to halt the slide in prices. Brent crude is down another 1% at $31.18, its lowest level since April 2004.

Investors have been spooked by fears of a severe slowdown in the Chinese economy and a fall in the value of the yuan, not helped by a crash in the country’s stock market despite attempts by the country’s authorities to curtail selling.

Andrew Roberts, RBS’s credit chief, said: “China has set off a major correction and it is going to snowball. Equities and credit have become very dangerous, and we have hardly even begun to retrace the ‘Goldilocks love-in’ of the last two years.” » | Nick Fletcher | Tuesday, January 12, 2016

Sunday, 10 January 2016

Powerball Jackpot Rises to $1.3 Billion

Jan. 10, 2016 - 1:47 - Hopefuls rush to buy tickets for unprecedented jackpot