Category: Markets

Key Economic News To Watch This Week: May 14


A quick preview of the key economic events for the upcoming week: While Ben Bernanke said last week that the US banking system has recovered significantly; mortgage lending in the US remains tight and is likely to improve slower than expected. In Europe, Greece’s failure to form a government and Spain’s mounting economic problems will no doubt have an impact that goes far beyond the eurozone.

Monday, May 14

Big Four Accounting Firms Ordered To Hire More Locals In China


China has unveiled new rules that will effectively force the Big Four international accounting firms – Ernst & Young, KPMG, Deloitte and PricewaterhouseCoopers – to appoint a local citizen as the head of their mainland operations within the next five years, or face severe financial penalties.

Sympathy For The “Devil” – Why The Bernanke Bashing Is Uncalled For: Raghuram Rajan


Ben Bernanke is a marked man. Ever since he was appointed as the Chairman of the U.S. Federal Reserve in 2006, Bernanke has been a constant target for criticism – with some progressive economists now blaming him for not doing enough for the economy. But while the man is not without flaw, Bernanke has actually gone further than any other central banker in recent times in attempting to stimulate the economy through monetary policy.

London Finance Jobs At All Time Low


London’s finance sector is facing a 16-year low in the number of available jobs, said the Centre for Economics and Business Research (CEBR) on Wednesday, with the eurozone crisis expected to cause over 25,000 layoffs in 2012.

According to the CEBR, finance sector jobs in the U.K. capital was now estimated to fall to just 255,000 this year, compared to a previous estimate of 288,000 made just six months ago and down from the 280,350 jobs reported last year.

Japanese Elderly Spent $1.4 Trillion Last Year


Companies in Japan are rushing to introduce more products geared towards the elderly, said Bloomberg News on Wednesday, as the country continues to face a rapidly aging population.

According to a study by the Japanese Health Ministry, the number of Japanese over the age of 65 hit a record 23.3 percent of the population (29.8 million) last October, with this percentage expected to grow to 40 percent by 2055.

US Approves First-Ever Chinese Bank Takeover


The U.S. Federal Reserve has given permission to three Chinese state-backed banks to set up branches within the U.S., said Reuters on Wednesday – effectively clearing the way for the Industrial and Commercial Bank of China (ICBC) to purchase a majority stake in the U.S. subsidiary of Bank of East Asia.

Europe’s Man-Made Disaster – An Austerity Tragedy: Joseph Stiglitz


Europe’s single-minded focus on austerity is a result of a misdiagnosis of its problems; and the fact that so many economies are vulnerable to natural disasters only makes the man-made disaster of austerity all the more tragic. Accordingly, the pain that Europe, especially its poor and young, is suffering as a result of its leaders’ willful ignorance of the lessons of the past is entirely unnecessary.

Europe Must Seize Its Opportunity With Hollande: Martin Schulz


François Hollande’s victory in the French presidential election is a fresh chance for Europe. It should spell the end of a policy oriented exclusively towards austerity, which has paralyzed our economies and divided the EU, and should not scare anyone – certainly not the financial markets.

BRUSSELS – Rarely has an election resonated so widely across the European Union as the French presidential ballot has done. Rarely has a leadership change in one EU member state created expectations of a real policy shift.